exv10w2



 







Exhibit 10.2




EXECUTION COPY




 





$2,752,500,000




364-DAY CREDIT AGREEMENT




dated as of




May 10, 2006




among




COUNTRYWIDE FINANCIAL CORPORATION,


COUNTRYWIDE HOME LOANS, INC.,


JPMORGAN CHASE BANK, N.A.,

as Managing Administrative Agent,


BANK OF AMERICA, N.A.,

as Administrative Agent,


ABN AMRO BANK N.V.,

as Syndication Agent,


CITIBANK, N.A. and

DEUTSCHE BANK AG NEW YORK BRANCH,

as Documentation Agents,



and




The Lenders Party Hereto




 






J.P. MORGAN SECURITIES INC. and BANC OF AMERICA SECURITIES LLC,

as Joint Bookrunners and Joint Lead Arrangers




 





 









 








Table of Contents




	 	 	 	 	 
	 	 	Page
	
ARTICLE I
	
Definitions
	 
	 	 	 	 
	SECTION 1.01. Defined Terms

	 	 	1	 
	SECTION 1.02. Classification of Loans and Borrowings

	 	 	15	 
	SECTION 1.03. Terms Generally

	 	 	16	 
	SECTION 1.04. Accounting Terms; GAAP

	 	 	16	 
	 
	 	 	 	 
	
ARTICLE II
	 
	 	 	 	 
	
The Credits
	 
	 	 	 	 
	SECTION 2.01. Commitments; Increases in Revolving Facility

	 	 	16	 
	SECTION 2.02. Loans and Borrowings

	 	 	17	 
	SECTION 2.03. Requests for Revolving Borrowings

	 	 	17	 
	SECTION 2.04. Competitive Bid Procedure

	 	 	18	 
	SECTION 2.05. Swingline Loans

	 	 	20	 
	SECTION 2.06. Funding of Borrowings

	 	 	21	 
	SECTION 2.07. Interest Elections

	 	 	21	 
	SECTION 2.08. Termination and Reduction of Commitments

	 	 	22	 
	SECTION 2.09. Repayment of Loans; Evidence of Debt

	 	 	23	 
	SECTION 2.10. Prepayment of Loans

	 	 	24	 
	SECTION 2.11. Fees

	 	 	25	 
	SECTION 2.12. Interest

	 	 	25	 
	SECTION 2.13. Alternate Rate of Interest

	 	 	26	 
	SECTION 2.14. Increased Costs

	 	 	27	 
	SECTION 2.15. Break Funding Payments

	 	 	28	 
	SECTION 2.16. Taxes

	 	 	28	 
	SECTION 2.17. Payments Generally; Pro Rata Treatment; Sharing of Set-offs

	 	 	29	 
	SECTION 2.18. Mitigation Obligations; Replacement of Lenders

	 	 	30	 
	SECTION 2.19. Extension of Commitment Termination Date

	 	 	31	 
	 
	 	 	 	 
	
ARTICLE III
	 
	 	 	 	 
	
Representations and Warranties
	 
	 	 	 	 
	SECTION 3.01. Organization; Powers

	 	 	32	 
	SECTION 3.02. Authorization; Enforceability

	 	 	32	 
	SECTION 3.03. Governmental Approvals; No Conflicts

	 	 	32	 
	SECTION 3.04. Financial Condition; No Material Adverse Change

	 	 	33	 
	SECTION 3.05. Properties

	 	 	33	 
	SECTION 3.06. Litigation and Environmental Matters

	 	 	33	 
	SECTION 3.07. Compliance with Laws and Agreements

	 	 	34	 
	 
	 	 	 	 
	
i






 









 






	 	 	 	 	 
	 	 	 
	SECTION 3.08. Investment Company Status

	 	 	34	 
	SECTION 3.09. Taxes

	 	 	34	 
	SECTION 3.10. ERISA

	 	 	34	 
	SECTION 3.11. Disclosure

	 	 	34	 
	SECTION 3.12. Federal Regulations

	 	 	34	 
	SECTION 3.13. Subsidiaries

	 	 	34	 
	 
	 	 	 	 
	
ARTICLE IV
	 
	 	 	 	 
	
Conditions
	 
	 	 	 	 
	SECTION 4.01. Effective Date

	 	 	35	 
	SECTION 4.02. Each Credit Event

	 	 	36	 
	 
	 	 	 	 
	
ARTICLE V
	 
	 	 	 	 
	
Affirmative Covenants
	 
	 	 	 	 
	SECTION 5.01. Financial Statements; Ratings Change and Other Information

	 	 	36	 
	SECTION 5.02. Notices of Material Events

	 	 	38	 
	SECTION 5.03. Existence; Conduct of Business

	 	 	38	 
	SECTION 5.04. Payment of Obligations

	 	 	38	 
	SECTION 5.05. Maintenance of Properties; Insurance

	 	 	38	 
	SECTION 5.06. Hedging Program

	 	 	38	 
	SECTION 5.07. Books and Records; Inspection Rights

	 	 	39	 
	SECTION 5.08. Compliance with Laws and Contractual Obligations

	 	 	39	 
	SECTION 5.09. Environmental Laws

	 	 	39	 
	SECTION 5.10. Use of Proceeds

	 	 	39	 
	SECTION 5.11. Compliance with Regulatory Requirements

	 	 	39	 
	 
	 	 	 	 
	
ARTICLE VI
	 
	 	 	 	 
	
Financial and Negative Covenants
	 
	 	 	 	 
	SECTION 6.01. Financial Condition Covenants

	 	 	40	 
	SECTION 6.02. Liens

	 	 	40	 
	SECTION 6.03. Fundamental Changes

	 	 	40	 
	SECTION 6.04. Acquisitions

	 	 	41	 
	SECTION 6.05. Restricted Payments

	 	 	41	 
	SECTION 6.06. Indebtedness

	 	 	41	 
	 
	 	 	 	 
	
ARTICLE VII
	 
	 	 	 	 
	
Events of Default
	 
	 	 	 	 
	
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ARTICLE VIII
	 
	 	 	 	 
	
Guarantee
	 
	 	 	 	 
	SECTION 8.01. Guarantee

	 	 	43	 
	SECTION 8.02. No Subrogation

	 	 	44	 
	SECTION 8.03. Amendments, etc. with respect to the Borrower Obligations

	 	 	44	 
	SECTION 8.04. Guarantee Absolute and Unconditional

	 	 	45	 
	SECTION 8.05. Reinstatement

	 	 	45	 
	SECTION 8.06. Payments

	 	 	46	 
	SECTION 8.07. Independent Obligations

	 	 	46	 
	 
	 	 	 	 
	
ARTICLE IX
	 
	 	 	 	 
	
The Agents
	 
	 	 	 	 
	SECTION 9.01. Appointment

	 	 	46	 
	SECTION 9.02. Delegation of Duties

	 	 	46	 
	SECTION 9.03. Exculpatory Provisions

	 	 	46	 
	SECTION 9.04. Reliance by Managing Administrative Agent

	 	 	47	 
	SECTION 9.05. Notice of Default

	 	 	47	 
	SECTION 9.06. Non-Reliance on Agents and Other Lenders

	 	 	47	 
	SECTION 9.07. Indemnification

	 	 	48	 
	SECTION 9.08. Agent in Its Individual Capacity

	 	 	48	 
	SECTION 9.09. Successor Managing Administrative Agent

	 	 	48	 
	SECTION
9.10. Documentation Agents, Syndication Agent and Administrative Agent

	 	49

	 
	 	 	 	 
	
ARTICLE X
	 
	 	 	 	 
	
Miscellaneous
	 
	 	 	 	 
	SECTION 10.01. Notices

	 	 	49	 
	SECTION 10.02. Waivers; Amendments

	 	 	49	 
	SECTION 10.03. Expenses; Indemnity; Damage Waiver

	 	 	50	 
	SECTION 10.04. Successors and Assigns

	 	 	51	 
	SECTION 10.05. Survival

	 	 	53	 
	SECTION 10.06. Counterparts; Integration; Effectiveness

	 	 	54	 
	SECTION 10.07. Severability

	 	 	54	 
	SECTION 10.08. Right of Setoff

	 	 	54	 
	SECTION 10.09. Governing Law; Jurisdiction; Consent to Service of Process

	 	 	54	 
	SECTION 10.10. WAIVER OF JURY TRIAL

	 	 	55	 
	SECTION 10.11. Headings

	 	 	55	 
	SECTION 10.12. Confidentiality

	 	 	55	 
	SECTION 10.13. USA PATRIOT Act

	 	 	56	 
	SECTION 10.14. Consent to Amendment

	 	 	56	 
	 
	 	 	 	 
	
iii






 









 






	 	 	 	 	 
	 	 	 
	SCHEDULES:
	 	 	 	 
	 
	 	 	 	 
	Schedule 2.01 — Commitments
	 	 	 	 
	Schedule 2.05 — Swingline Commitments
	 	 	 	 
	Schedule 3.06 — Disclosed Matters
	 	 	 	 
	Schedule 3.13 — Material Subsidiaries
	 	 	 	 
	Schedule 6.02 — Existing Liens
	 	 	 	 
	 
	 	 	 	 
	EXHIBITS:
	 	 	 	 
	 
	 	 	 	 
	Exhibit A — Form of Closing Certificate
	 	 	 	 
	Exhibit B — Form of Assignment and Assumption
	 	 	 	 
	Exhibit C — Form of Opinion of Borrower’s Counsel
	 	 	 	 
	Exhibit D — Form of New Lender Supplement
	 	 	 	 
	Exhibit E — Form of Increased Facility Activation Notice
	 	 	 	 
	 
	 	 	 	 
	
iv






 









 






          364-DAY CREDIT AGREEMENT dated as of May 10, 2006, among COUNTRYWIDE FINANCIAL CORPORATION,
COUNTRYWIDE HOME LOANS, INC., CITIBANK, N.A. and DEUTSCHE BANK AG NEW YORK BRANCH, as Documentation
Agents, ABN AMRO BANK N.V., as Syndication Agent, the LENDERS party hereto, BANK OF AMERICA, N.A.,
as Administrative Agent, and JPMORGAN CHASE BANK, N.A., as Managing Administrative Agent.




          WHEREAS, the Borrower has requested $2,752,500,000 in a senior unsecured revolving credit
facility from the Lenders for general corporate purposes; and




          WHEREAS, the Lenders are willing to provide the requested senior unsecured revolving credit
facility on the terms and conditions set forth herein;




          NOW, THEREFORE, the parties hereto hereby agree as follows:




ARTICLE I




Definitions




          SECTION 1.01. Defined Terms. As used in this Agreement, the following terms have the
meanings specified below:




          “Adjusted LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest
Period, an interest rate per annum (rounded upwards, if necessary, to the next 1/16 of 1%) equal to
(a) the LIBO Rate for such Interest Period multiplied by (b) the Statutory Reserve Rate.




          “Administrative Agent” means Bank of America, N.A., in its capacity as administrative
agent for the Lenders hereunder.




          “Administrative Questionnaire” means an Administrative Questionnaire in a form
supplied by the Managing Administrative Agent.




          “Affiliate” means, with respect to a specified Person, another Person that directly,
or indirectly through one or more intermediaries, Controls or is Controlled by or is under common
Control with the Person specified.




          “Agents” means the Documentation Agents, the Syndication Agent, the Administrative
Agent and the Managing Administrative Agent.




          “Aggregate Available Commitment” means, at any time, the excess, if any of (a) the
Aggregate Commitment over (b) the aggregate principal amount of all Loans then outstanding.




          “Aggregate Commitment” means the aggregate amount of the Lenders’ Commitments.




          “Aggregate Deficit Amount” means, for any Person, at any time, the excess of (i) the
aggregate amount of payment obligations for which such Person is then liable under its Hedge and
Repo Transactions with one or more counterparties over (ii) the then aggregate value of the
collateral then securing all such payment obligations.




          “Aggregate Exposure” means, with respect to any Lender at any time, the amount of such
Lender’s Commitment then in effect or, if the Commitments have been terminated, the amount of such
Lender’s Credit Exposure then outstanding.




 









 








          “Aggregate Exposure Percentage” means, with respect to any Lender at any time, the
ratio (expressed as a percentage) of such Lender’s Aggregate Exposure at such time to the Aggregate
Exposure of all Lenders at such time.




          “Agreement” means this 364-Day Credit Agreement, as amended, supplemented or otherwise
modified from time to time.




          “Alternate Base Rate” means, for any day, a rate per annum equal to the greater of (a)
the Prime Rate in effect on such day and (b) the Federal Funds Effective Rate in effect on such day
plus 1/2 of 1%. Any change in the Alternate Base Rate due to a change in the Prime Rate or the
Federal Funds Effective Rate shall be effective from and including the effective date of such
change in the Prime Rate or the Federal Funds Effective Rate, respectively.




          “Alternate Base Rate Loans” means Revolving Loans the rate of interest applicable to
which is based upon the Alternate Base Rate.




          “Applicable Percentage” means, with respect to any Lender, the percentage of the total
Commitments represented by such Lender’s Commitment. If the Commitments have terminated or
expired, the Applicable Percentages shall be determined based upon the Commitments most recently in
effect, giving effect to any assignments.




          “Applicable Rate” means, for any day, with respect to any Federal Funds Rate Loan or
Eurodollar Revolving Loan, or with respect to the facility fees and utilization fees payable
hereunder, as the case may be, the applicable rate per annum set forth below (expressed in basis
points) under the caption “Federal Funds Rate Spread”, “Eurodollar Spread”, “Facility Fee Rate” or
“Utilization Fee Rate”, as the case may be, based upon the ratings by Moody’s and S&P,
respectively, applicable on such date to the Index Debt:




	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Utilization	 
	 	 	Federal Funds	 	 	Eurodollar	 	 	Facility Fee	 	 	Fee Rate	 
	Index Debt Ratings	 	Rate Spread	 	 	Spread	 	 	Rate	 	 	(>50%)	 
	3 A1 from Moody’s
or 3 A+ from S&P
	 	 	20.0	 	 	 	20.0	 	 	 	5.0	 	 	 	5.0	 
	A2 from Moody’s
or A from S&P
	 	 	24.0	 	 	 	24.0	 	 	 	6.0	 	 	 	5.0	 
	A3 from Moody’s
or A- from S&P
	 	 	28.0	 	 	 	28.0	 	 	 	7.0	 	 	 	5.0	 
	Baa1 from Moody’s
or BBB+ from S&P
	 	 	36.0	 	 	 	36.0	 	 	 	9.0	 	 	 	10.0	 
	Baa2 from Moody’s
or BBB from S&P
	 	 	47.5	 	 	 	47.5	 	 	 	12.5	 	 	 	10.0	 
	< Baa2 from Moody’s
and < BBB from S&P
or unrated
	 	 	60.0	 	 	 	60.0	 	 	 	15.0	 	 	 	10.0	 





For purposes of the foregoing, (i) if either Moody’s or S&P shall not have in effect a rating
for the Index Debt (other than by reason of the circumstances referred to in clause (iii) of this
definition), then the rating assigned by the other rating agency shall be used; (ii) if the ratings
established or deemed to have been established by Moody’s and S&P for the Index Debt shall fall
within different rating levels, the Applicable Rate shall be based on the higher of the two ratings
unless one of the two ratings is two or


2









 






more rating levels lower than the other, in which case the
Applicable Rate shall be determined by reference to the rating level next below that of the higher
of the two ratings; (iii) if either Moody’s or S&P shall cease to assign a rating to the Index Debt
solely because the Borrower elects not to participate or otherwise cooperate in the ratings process
of such rating agency, the Applicable Rate shall not be less than that in effect immediately prior
to such rating agency’s rating becoming unavailable; (iv) if the ratings established or deemed to
have been established by Moody’s and S&P for the Index Debt shall be changed (other than as a
result of a change in the rating system of Moody’s or S&P), such change shall be effective as of
the date on which it is first announced by the applicable rating agency, irrespective of when
notice of such change shall have been furnished by the Borrower to the Managing Administrative
Agent and the Lenders pursuant to Section 5.02 or otherwise; and (v) the Eurodollar Spread for each
Ratings Level above shall be increased by 0.125% if the Term-Out Maturity Date has been selected
for the period after the Commitment Termination Date. Each change in the Applicable Rate shall
apply during the period commencing on the effective date of such change and ending on the date
immediately preceding the effective date of the next such change. If the rating system of Moody’s
or S&P shall change, or if either such rating agency shall cease to be in the business of rating
corporate debt obligations, the Borrower and the Lenders shall negotiate in good faith to amend
this definition to reflect such changed rating system or the unavailability of ratings from such
rating agency and, pending the effectiveness of any such amendment, the Applicable Rate shall be
determined by reference to the rating most recently in effect prior to such change or cessation.




          “Assignment and Assumption” means an assignment and assumption entered into by a
Lender and an assignee (with the consent of any party whose consent is required by Section 10.04),
and accepted by the Managing Administrative Agent, in the form of Exhibit B or any other form
approved by the Managing Administrative Agent.




          “Availability Period” means the period from and including the Effective Date to but
excluding the earlier of the Commitment Termination Date and the date the Commitments are
terminated as provided herein.




          “Board” means the Board of Governors of the Federal Reserve System of the United
States of America.




          “Borrower” means CFC, CHL or both, as appropriate.




          “Borrowing” means (a) Revolving Loans of the same Type, made, converted or continued
on the same date and, in the case of Eurodollar Loans, as to which a single Interest Period is in
effect, (b) a Competitive Loan or group of Competitive Loans of the same Type made on the same date
and as to which a single Interest Period is in effect or (c) a Swingline Loan.




          “Borrowing Request” means a request by the Borrower for a Revolving Borrowing in
accordance with Section 2.03.




          “Business Day” means any day that is not a Saturday, Sunday or other day on which
commercial banks in New York City are authorized or required by law to remain closed;
provided that, when used in connection with a Eurodollar Loan, the term “Business
Day” shall also exclude any day on which banks are not open for dealings in Dollar deposits in
the London interbank market.




          “Capital Lease Obligations” of any Person means the obligations of such Person to pay
rent or other amounts under any lease of (or other arrangement conveying the right to use) real or
personal property, or a combination thereof, which obligations are required to be classified and
accounted for as


3









 







capital leases on a balance sheet of such Person under GAAP, and the amount of
such obligations shall be the capitalized amount thereof determined in accordance with GAAP.




          “CFC” means Countrywide Financial Corporation, a Delaware corporation.




          “Change in Law” means (a) the adoption of any law, rule or regulation after the date
of this Agreement, (b) any change in any law, rule or regulation or in the interpretation or
application thereof by any Governmental Authority after the date of this Agreement or (c)
compliance by any Lender (or, for purposes of Section 2.14(b), by any lending office of such Lender
or by such Lender’s holding company, if any) with any request, guideline or directive (whether or
not having the force of law) of any Governmental Authority made or issued after the date of this
Agreement.




          “Change of Control” means, at any time, (i) any “person” or “group” (as such terms are
used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)) becomes, or obtain rights (whether by means or warrants, options or otherwise) to become,
the “beneficial owner” (as defined in Rules 13(d)-3 and 13(d)-5 under the Exchange Act), directly
or indirectly, of more than 35% of the outstanding voting stock of CFC or (ii) the board of
directors of CFC shall cease to consist of a majority of Continuing Directors.




          “CHL” means Countrywide Home Loans, Inc., a New York corporation.




          “Class”, when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans comprising such Borrowing, are Revolving Loans, Competitive Loans or Swingline Loans.




          “Code” means the Internal Revenue Code of 1986, as amended from time to time.




          “Commitment” means, with respect to each Lender, the commitment of such Lender to make
Revolving Loans and to acquire participations in Swingline Loans hereunder, expressed as an amount
representing the maximum aggregate amount of such Lender’s Credit Exposure hereunder, as such
commitment may be (a) reduced from time to time pursuant to Section 2.08 and (b) reduced or
increased from time to time pursuant to assignments by or to such Lender pursuant to Section 10.04.
The initial amount of each Lender’s Commitment is set forth on Schedule 2.01, or in the Assignment
and Assumption pursuant to which such Lender shall have assumed its Commitment, as applicable. The
initial aggregate amount of the Lenders’ Commitments is $2,752,500,000.




          “Commitment Termination Date” means May 9, 2007.




          “Competitive Bid” means an offer by a Lender to make a Competitive Loan in accordance
with Section 2.04.




          “Competitive Bid Rate” means, with respect to any Competitive Bid, the Margin or the
Fixed Rate, as applicable, offered by the Lender making such Competitive Bid.




          “Competitive Bid Request” means a request by the Borrower for Competitive Bids in
accordance with Section 2.04.




          “Competitive Loan” means a Loan made pursuant to Section 2.04.




          “Consolidated Net Worth” means, at any date, all amounts that would, in conformity
with GAAP, be included on a consolidated balance sheet of a Person and its subsidiaries under
stockholders’ equity at such date.




4









 








          “Continuing Directors” means the directors of CFC on the date hereof and each other
director, if, in each case, such other director’s nomination for election to the board of directors
of CFC is recommended by at least 51% of the then Continuing Directors.




          “Contractual Obligation” means, as to any Person, any provision of any security issued
by such Person or of any agreement, instrument or other undertaking to which such Person is a party
or by which it or any of its property is bound.




          “Control” means the possession, directly or indirectly, of the power to direct or
cause the direction of the management or policies of a Person, whether through the ability to
exercise voting power, by contract or otherwise. “Controlling” and “Controlled”
have meanings correlative thereto.




          “Credit Exposure” means, with respect to any Lender at any time, the sum of the
outstanding principal amount of such Lender’s Revolving Loans (including Loans for which the
Term-Out Maturity Date has been selected by the Borrower) and its Swingline Exposure at such time.




          “Default” means any event or condition which constitutes an Event of Default or which
upon notice, lapse of time or both would, unless cured or waived, become an Event of Default.




          “Disclosed Matters” means the actions, suits and proceedings and the environmental
matters disclosed in Schedule 3.06.




          “Dollars” or “$” refers to lawful money of the United States of America.




          “Effective Date” means the date on which the conditions specified in Section 4.01 are
satisfied (or waived in accordance with Section 10.02), which date is May 10, 2006.




          “Environmental Laws” means all laws, rules, regulations, codes, ordinances, orders,
decrees, judgments, injunctions, notices or binding agreements issued, promulgated or entered into
by any Governmental Authority, relating in any way to the environment, preservation or reclamation
of natural resources, the management, release or threatened release of any Hazardous Material or
health and safety matters.




          “Environmental Liability” means any liability, contingent or otherwise (including any
liability for damages, costs of environmental remediation, fines, penalties or indemnities), of the
Borrower or any Subsidiary directly or indirectly resulting from or based upon (a) violation of any
Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or
disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the release or
threatened release of any Hazardous Materials into the environment or (e) any contract, agreement
or other consensual arrangement pursuant to which liability is assumed or imposed with respect to
any of the foregoing.




          “Equity Interests” means shares of capital stock, partnership interests, membership
interests in a limited liability company, beneficial interests in a trust or other equity ownership
interests in a Person, and any warrants, options or other rights entitling the holder thereof to
purchase or acquire any such equity interest.




          “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from
time to time.




          “ERISA Affiliate” means any trade or business (whether or not incorporated) that,
together with the Borrower, is treated as a single employer under Section 414(b) or (c) of the Code
or,


5









 







solely for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a single
employer under Section 414 of the Code.




          “ERISA Event” means (a) any “reportable event”, as defined in Section 4043 of ERISA or
the regulations issued thereunder with respect to a Plan (other than an event for which the 30-day
notice period is waived); (b) the existence with respect to any Plan of an “accumulated funding
deficiency” (as defined in Section 412 of the Code or Section 302 of ERISA), whether or not waived;
(c) the filing pursuant to Section 412(d) of the Code or Section 303(d) of ERISA of an application
for a waiver of the minimum funding standard with respect to any Plan; (d) the incurrence by the
Borrower or any of its ERISA Affiliates of any liability under Title IV of ERISA with respect to
the termination of any Plan; (e) the receipt by the Borrower or any ERISA Affiliate from the PBGC
or a plan administrator of any notice relating to an intention to terminate any Plan or Plans or to
appoint a trustee to administer any Plan; (f) the incurrence by the Borrower or any of its ERISA
Affiliates of any liability with respect to the withdrawal or partial withdrawal from any Plan or
Multiemployer Plan; or (g) the receipt by the Borrower or any ERISA Affiliate of any notice, or the
receipt by any Multiemployer Plan from the Borrower or any ERISA Affiliate of any notice,
concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is,
or is expected to be, insolvent or in reorganization, within the meaning of Title IV of ERISA.




          “Eurodollar”, when used in reference to any Loan or Borrowing, refers to whether such
Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by
reference to the Adjusted LIBO Rate (or, in the case of a Competitive Loan, the LIBO Rate).




          “Eurodollar Tranche” is the collective reference to Eurodollar Loans the then current
Interest Periods with respect to all of which begin on the same date and end on the same later date
(whether or not such Loans shall originally have been made on the same day).




          “Event of Default” has the meaning assigned to such term in Article VII.




          “Excluded Taxes” means, with respect to the Managing Administrative Agent, the
Administrative Agent, any Lender or any other recipient of any payment to be made by or on account
of any obligation of the Borrower hereunder, (a) income or franchise taxes imposed on (or measured
by) its net income by the United States of America, or by the jurisdiction under the laws of which
such recipient is organized or in which its principal office is located or, in the case of any
Lender, in which its applicable lending office is located, (b) any branch profits taxes imposed by
the United States of America or any similar tax imposed by any other jurisdiction in which the
Borrower is located and (c) in the case of a Foreign Lender (other than an assignee pursuant to a
request by the Borrower under Section 2.18(b)), any withholding tax that is imposed on amounts
payable to such Foreign Lender at the time such Foreign Lender becomes a party to this Agreement
(or designates a new lending office) or is attributable to such Foreign Lender’s failure to comply
with Section 2.16(e), except to the extent that such Foreign Lender (or its assignor, if any) was
entitled, at the time of designation of a new lending office (or assignment), to receive additional
amounts from the Borrower with respect to such withholding tax pursuant to Section 2.16(a).




          “Existing Credit Agreement” means the 364-Day Credit Agreement, dated as of May 12,
2004, among the Borrower, JPMorgan Chase Bank, as managing administrative agent, Bank of America,
N.A., as administrative agent, Citicorp USA, Inc., as syndication agent, ABN AMRO Bank N.V.
and Deutsche Bank Securities Inc., as documentation agents, and certain lenders named therein, as
amended, supplemented or otherwise modified from time to time (including, but not limited to, the
First Amendment dated as of May 11, 2005).




6









 








          “Extending Lender” has the meaning assigned to such term in Section 2.19.




          “Extension Notice” has the meaning assigned to such term in Section 2.19.




          “Federal Funds Effective Rate” means, for any day, the weighted average (rounded
upwards, if necessary, to the next 1/100 of 1%) of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal funds brokers, as
published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such
rate is not so published for any day that is a Business Day, the average (rounded upwards, if
necessary, to the next 1/100 of 1%) of the quotations for such day for such transactions received
by the Managing Administrative Agent from three Federal funds brokers of recognized standing
selected by it.




          “Federal Funds Rate” means (i) for the first day of a Federal Funds Rate Loan, the
rate per annum which is the average of the rates on the offered side of the Federal Funds market
quoted by three interbank Federal Funds brokers, selected by the Managing Administrative Agent, at
approximately the time the Borrower requests such Loan, and (ii) for each day of such Federal Funds
Rate Loan thereafter, the rate per annum which is the average of the rates on the offered side of
the Federal Funds market quoted by three interbank Federal Funds brokers, selected by the Managing
Administrative Agent, at approximately 3:00 p.m., New York City time, on such day for Dollar
deposits in immediately available funds.




          “Federal Funds Rate Loan” means Revolving Loans whose applicable rate of interest is
based upon the Federal Funds Rate and which are designated as Federal Funds Rate Loans pursuant to
Section 2.03 or 2.07.




          “Financial Officer” means the chief financial officer, principal accounting officer,
treasurer or controller of the Borrower.




          “Five-Year Credit Agreement” means the Five-Year Credit Agreement, dated as of the
date hereof, among the CFC, CHL, JPMorgan Chase Bank, N.A., as managing administrative agent, Bank
of America, N.A., as administrative agent, ABN AMRO Bank N.V., as syndication agent, Citibank, N.A.
and Deutsche Bank AG New York Branch, as documentation agents, and the lenders party thereto, as
amended, supplemented or otherwise modified from time to time.




          “Fixed Rate” means, with respect to any Competitive Loan (other than a Eurodollar
Competitive Loan), the fixed rate of interest per annum specified by the Lender making or proposing
to make such Competitive Loan in its related Competitive Bid.




          “Fixed Rate Loan” means a Competitive Loan bearing interest at a Fixed Rate.




          “Foreign Lender” means any Lender that is organized under the laws of a jurisdiction
other than that in which the Borrower is located. For purposes of this definition, the United
States of America, each State thereof and the District of Columbia shall be deemed to constitute a
single jurisdiction.




          “GAAP” means generally accepted accounting principles in the United States of America.




          “Governmental Authority” means the government of the United States of America, any
other nation or any political subdivision thereof, whether state or local, and any agency,
authority,


7









 







instrumentality, regulatory body, court, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or
pertaining to government.




          “Guarantee” of or by any Person (the “guarantor”) means any obligation,
contingent or otherwise, of the guarantor guaranteeing or having the economic effect of
guaranteeing any Indebtedness or other obligation of any other Person (the “primary
obligor”) in any manner, whether directly or indirectly, and including any obligation of the
guarantor, direct or indirect, (a) to purchase or pay (or advance or supply funds for the purchase
or payment of) such Indebtedness or other obligation or to purchase (or to advance or supply funds
for the purchase of) any security for the payment thereof, (b) to purchase or lease property,
securities or services for the purpose of assuring the owner of such Indebtedness or other
obligation of the payment thereof, (c) to maintain working capital, equity capital or any other
financial statement condition or liquidity of the primary obligor so as to enable the primary
obligor to pay such Indebtedness or other obligation or (d) as an account party in respect of any
letter of credit or letter of guaranty issued to support such Indebtedness or obligation;
provided, that the term Guarantee shall not include endorsements for collection or deposit
in the ordinary course of business.




          “Guarantee Obligation” means, as to any Person (the “guaranteeing person”),
any obligation, including a reimbursement, counterindemnity or similar obligation, of the
guaranteeing person that guarantees or in effect guarantees, or which is given to induce the
creation of a separate obligation by another Person (including any bank under any letter of credit)
that guarantees or in effect guarantees, any Indebtedness, leases, dividends or other obligations
(the “primary obligations”) of any other third Person (the “primary obligor”) in
any manner, whether directly or indirectly, including any obligation of the guaranteeing person,
whether or not contingent, (i) to purchase any such primary obligation or any property constituting
direct or indirect security therefor, (ii) to advance or supply funds (1) for the purchase or
payment of any such primary obligation or (2) to maintain working capital or equity capital of the
primary obligor or otherwise to maintain the net worth or solvency of the primary obligor, (iii) to
purchase property, securities or services primarily for the purpose of assuring the owner of any
such primary obligation of the ability of the primary obligor to make payment of such primary
obligation or (iv) otherwise to assure or hold harmless the owner of any such primary obligation
against loss in respect thereof; provided, however, that the term Guarantee
Obligation shall not include endorsements of instruments for deposit or collection in the ordinary
course of business. The amount of any Guarantee Obligation of any guaranteeing person shall be
deemed to be the lower of (a) an amount equal to the stated or determinable amount of the primary
obligation in respect of which such Guarantee Obligation is made and (b) the maximum amount for
which such guaranteeing person may be liable pursuant to the terms of the instrument embodying such
Guarantee Obligation, unless such primary obligation and the maximum amount for which such
guaranteeing person may be liable are not stated or determinable, in which case the amount of such
Guarantee Obligation shall be such guaranteeing person’s maximum reasonably anticipated liability
in respect thereof as determined by the Borrower in good faith.




          “Guarantor” has the meaning assigned to such term in Section 8.01.




          “Hazardous Materials” means all explosive or radioactive substances or wastes and all
hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum
distillates, asbestos or asbestos containing materials, polychlorinated biphenyls, radon gas,
infectious or medical wastes and all other substances or wastes of any nature regulated pursuant to
any Environmental Law.




          “Hedge and Repo Transaction” means a transaction consisting of or arising under one or
more of the following: (a) swaps, options, caps, collars, floors and swaptions, including, without
limitation, rate swaps, basis swaps, commodity swaps, equity or equity index swaps, interest rate
options, foreign exchange transactions, forward rate agreements, rate guarantee agreements,
currency swaps, credit default swaps, total rate of return swaps, spread options, and contracts for
differences (including any options with respect to any of the transactions referred to in this
clause (a)); (b) repurchase agreements, reverse purchase agreements, sell buy backs and buy sell
back agreements (each of the foregoing including in respect of mortgage loans), securities lending
and borrowing agreements, other agreements for the purchase, sale or loan of securities, group or
index securities (including any interest therein or based on the value thereof), certificates of
deposit or bankers’ acceptances (including


8









 







any option with respect to any of the transactions
referred to in this clause (b)); (c) options of any type, whether with respect to fixed-income
securities or interest rates, and whether included on a national securities exchange, privately
negotiated or otherwise relating to guaranties of settlements of cash or securities by or to
securities clearing agencies; (d) prepaid equity forwards and commodity options or forwards; (e)
any other transactions similar to those referred to in clause (a), (b), (c) or (d) above entered
into in the ordinary course of business of CFC or any subsidiary or to the extent entered into
solely by two or more of CFC and its subsidiaries; (f) any combination of two or more transactions
referred to in clause (a), (b), (c), (d) or (e) above; and (g) any agreement or master agreement
(including the supplements thereto and confirmations thereunder and the terms and conditions
incorporated by reference in any and all of the foregoing) for transactions referred to in clause
(a), (b), (c), (d) or (e) above.




          “Hedging Program” means a program for hedging interest rate risks by CFC and its
subsidiaries, which program shall include, without limitation, Hedge and Repo Transactions.




          “Increased Facility Activation Date” means any Business Day on which any Lender shall
execute and deliver to the Managing Administrative Agent an Increased Facility Activation Notice
pursuant to Section 2.01(b).




          “Increased Facility Activation Notice” means a notice substantially in the form of
Exhibit E.




          “Increased Facility Closing Date” means any Business Day designated as such in an
Increased Facility Activation Notice.




          “Indebtedness” of any Person means, without duplication, (a) all obligations of such
Person for borrowed money or with respect to deposits or advances of any kind, (b) all obligations
of such Person evidenced by bonds, debentures, notes or similar instruments, (c) all obligations of
such Person upon which interest charges are customarily paid, (d) all obligations of such Person
under conditional sale or other title retention agreements relating to property acquired by such
Person, (e) all obligations of such Person in respect of the deferred purchase price of property or
services (excluding current accounts payable incurred in the ordinary course of business), (f) all
Indebtedness of others secured by (or for which the holder of such Indebtedness has an existing
right, contingent or otherwise, to be secured by) any Lien on property owned or acquired by such
Person, whether or not the Indebtedness secured thereby has been assumed, (g) all Guarantees by
such Person of Indebtedness of others, (h) all Capital Lease Obligations of such Person, (i) all
obligations, contingent or otherwise, of such Person as an account party in respect of letters of
credit and letters of guaranty and (j) all obligations, contingent or otherwise, of such Person in
respect of bankers’ acceptances. The Indebtedness of any Person shall include the Indebtedness of
any other entity (including any partnership in which such Person is a general partner) to the
extent such Person is liable therefor as a result of such Person’s ownership interest in or other
relationship with such entity, except to the extent the terms of such Indebtedness provide that
such Person
is not liable therefor. “Indebtedness” shall not include obligations under customary
indemnification provisions in agreements relating to the sale or purchase of assets or property.




          “Indemnified Taxes” means Taxes other than Excluded Taxes.




9









 








          “Index Debt” means senior, unsecured, long-term indebtedness for borrowed money of the
Borrower that is not guaranteed by any Person other than CFC or CHL, as applicable, or subject to
any other credit enhancement.




          “Information Memorandum” means the Confidential Information Memorandum dated April
2006 relating to the Borrower and the Transactions.




          “Interest Election Request” means a request by the Borrower to convert or continue a
Revolving Borrowing in accordance with Section 2.07.




          “Interest Payment Date” means (a) with respect to any Federal Funds Rate Loan or
Alternate Base Rate Loan (other than a Swingline Loan), the last day of each calendar month, (b)
with respect to any Eurodollar Loan, the last day of the Interest Period applicable to the
Borrowing of which such Loan is a part and, in the case of a Eurodollar Borrowing with an Interest
Period of more than one month’s duration, each day prior to the last day of such Interest Period
that occurs at intervals of one month’s duration after the first day of such Interest Period, (c)
with respect to any Fixed Rate Loan, the last day of the Interest Period applicable to the
Borrowing of which such Loan is a part and, in the case of a Fixed Rate Borrowing with an Interest
Period of more than 90 days’ duration (unless otherwise specified in the applicable Competitive Bid
Request), each day prior to the last day of such Interest Period that occurs at intervals of 90
days’ duration after the first day of such Interest Period, and any other dates that are specified
in the applicable Competitive Bid Request as Interest Payment Dates with respect to such Borrowing
and (d) with respect to any Swingline Loan, the day that such Loan is required to be repaid.




          “Interest Period” means (a) with respect to any Eurodollar Borrowing, the period
commencing on the date of such Borrowing and ending on the numerically corresponding day in the
calendar month that is one, two, three or six months thereafter, as the Borrower may elect, and (b)
with respect to any Fixed Rate Borrowing, the period (which shall not be less than seven days or
more than 180 days) commencing on the date of such Borrowing and ending on the date specified in
the applicable Competitive Bid Request; provided, that (i) if any Interest Period would end
on a day other than a Business Day, such Interest Period shall be extended to the next succeeding
Business Day unless, in the case of a Eurodollar Borrowing only, such next succeeding Business Day
would fall in the next calendar month, in which case such Interest Period shall end on the next
preceding Business Day, (ii) any Interest Period pertaining to a Eurodollar Borrowing that
commences on the last Business Day of a calendar month (or on a day for which there is no
numerically corresponding day in the last calendar month of such Interest Period) shall end on the
last Business Day of the last calendar month of such Interest Period and (iii) any Interest Period
that would otherwise end after the Commitment Termination Date (or, in the case of Revolving Loans,
if applicable, the Term-Out Maturity Date) shall end on the Commitment Termination Date or the
Term-Out Maturity Date, as the case may be. For purposes hereof, the date of a Borrowing initially
shall be the date on which such Borrowing is made and, in the case of a Revolving Borrowing,
thereafter shall be the effective date of the most recent conversion or continuation of such
Borrowing.




          “Lenders” means the Persons listed on Schedule 2.01 and any other Person that shall
have become a party hereto pursuant to an Assignment and Assumption or New Lender Supplement,
other than any such Person that ceases to be a party hereto pursuant to an Assignment and
Assumption. Unless the context otherwise requires, the term “Lenders” includes the Swingline
Lenders.




          “LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest Period,
the rate appearing on Page 3750 of the Dow Jones Market Service (or on any successor or substitute
page of such Service, or any successor to or substitute for such Service, providing rate quotations
comparable


10









 







to those currently provided on such page of such Service, as determined by the Managing
Administrative Agent from time to time for purposes of providing quotations of interest rates
applicable to Dollar deposits in the London interbank market) at approximately 11:00 a.m., London
time, two Business Days prior to the commencement of such Interest Period, as the rate for Dollar
deposits with a maturity comparable to such Interest Period. In the event that such rate is not
available at such time for any reason, then the “LIBO Rate” with respect to such Eurodollar
Borrowing for such Interest Period shall be the rate at which Dollar deposits of $5,000,000 and for
a maturity comparable to such Interest Period are offered by the principal London office of the
Managing Administrative Agent in immediately available funds in the London interbank market at
approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest
Period.




          “Lien” means, with respect to any asset, (a) any mortgage, deed of trust, lien,
pledge, hypothecation, encumbrance, charge or security interest in, on or of such asset, (b) the
interest of a vendor or a lessor under any conditional sale agreement, capital lease or title
retention agreement (or any financing lease having substantially the same economic effect as any of
the foregoing) relating to such asset and (c) in the case of securities, any purchase option, call
or similar right of a third party with respect to such securities.




          “Loan Documents” means this Agreement and the Notes, if any.




          “Loans” means the loans made by the Lenders to the Borrower pursuant to this
Agreement.




          “Managing Administrative Agent” means JPMorgan Chase Bank, N.A., in its capacity as
managing administrative agent.




          “Margin” means, with respect to any Competitive Loan bearing interest at a rate based
on the LIBO Rate, the marginal rate of interest, if any, to be added to or subtracted from the LIBO
Rate to determine the rate of interest applicable to such Loan, as specified by the Lender making
such Loan in its related Competitive Bid.




          “Material Adverse Effect” means a material adverse effect on (a) the business, assets,
operations, or condition, financial or otherwise, of CFC, CHL and their Subsidiaries taken as a
whole or (b) the validity or enforceability of this Agreement or any other Loan Document or the
rights or remedies of the Managing Administrative Agent or the Lenders hereunder or thereunder.




          “Material Indebtedness” means (i) Indebtedness outstanding under the Five-Year Credit
Agreement, (ii) Indebtedness outstanding under the RBC Credit Agreement and (iii) any other
Indebtedness (other than the Loans), or obligations in respect of one or more Hedge and Repo
Transactions, of any one or more of the Borrower and its Subsidiaries in an aggregate principal
amount exceeding $100,000,000.




          “Material Subsidiary” means, at any time, each Subsidiary which (i) is set forth in
Schedule 3.13 under the heading “Permanent Material Subsidiaries”, (ii) individually had revenue in
the then most recently ended fiscal year of CFC comprising 5% or more of the consolidated revenue
of CFC
and its Subsidiaries for such fiscal year or (iii) is designated a Material Subsidiary by the
Borrower in Schedule 3.13 under the heading “Designated Material Subsidiaries” (as such list of
Designated Material Subsidiaries may be supplemented or modified from time to time after the
Effective Date upon written notice to the Managing Administrative Agent and the Lenders). In no
event shall the aggregate revenue of Subsidiaries of CFC which are not deemed or designated
Material Subsidiaries in accordance with the


11









 







preceding sentence for the then most recently ended
fiscal year equal or exceed 20% of the consolidated revenue of CFC and its Subsidiaries for such
fiscal year.




          “Moody’s” means Moody’s Investors Service, Inc.




          “Multiemployer Plan” means a multiemployer plan as defined in Section 4001(a)(3) of
ERISA.




          “New Lender” has the meaning set forth in Section 2.01(b).




          “New Lender Supplement” has the meaning set forth in Section 2.01(b).




          “Non-Extending Lender” has the meaning assigned to such term in Section 2.19.




          “Notes”: the collective reference to any promissory note evidencing Loans.




          “Obligations” means the unpaid principal of and interest on (including interest
accruing after the maturity of the Loans and interest accruing after the filing of any petition in
bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, relating to
the Borrower, whether or not a claim for post-filing or post-petition interest is allowed in such
proceeding) the Loans and all other obligations and liabilities of the Borrower to the Agents or to
any Lender, whether direct or indirect, absolute or contingent, due or to become due, or now
existing or hereafter incurred, which may arise under, out of, or in connection with, this
Agreement, any other Loan Document or any other document made, delivered or given in connection
herewith or therewith, whether on account of principal, interest, fees, indemnities, costs,
expenses (including all fees, charges and disbursements of counsel to the Agents or to any Lender
that are required to be paid by the Borrower pursuant hereto) or otherwise.




          “OCC” means the Office of the Comptroller of the Currency of the United States of
America or any successor federal bank regulatory authority.




          “Other Taxes” means any and all present or future stamp or documentary taxes or any
other excise or property taxes, charges or similar levies arising from any payment made hereunder
or from the execution, delivery or enforcement of, or otherwise with respect to, this Agreement.




          “Participant” has the meaning set forth in Section 10.04.




          “PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA
and any successor entity performing similar functions.




          “Permitted Encumbrances” means:





     (a) Liens imposed by law for taxes that are not yet due or are being contested in
compliance with Section 5.04;




     (b) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s and other like
Liens imposed by law, arising in the ordinary course of business and securing obligations
that are not overdue by more than 30 days or are being contested in compliance with Section
5.04;




     (c) pledges and deposits made in the ordinary course of business in compliance with
workers’ compensation, unemployment insurance and other social security laws or regulations;



12









 






     (d) deposits to secure the performance of bids, trade contracts, leases, statutory
obligations, surety and appeal bonds, performance bonds and other obligations of a like
nature, in each case in the ordinary course of business;




     (e) judgment liens in respect of judgments that do not constitute an Event of Default
under clause (k) of Article VII; provided that such liens shall not secure any
judgments of more than $100,000,000 in the aggregate for more than 60 days;




     (f) easements, zoning restrictions, rights-of-way and similar encumbrances on real
property imposed by law or arising in the ordinary course of business that do not secure any
monetary obligations and do not materially detract from the value of the affected property
or interfere with the ordinary conduct of business of the Borrower or any Subsidiary;




     (g) any Lien on any property or asset of the Borrower or any Subsidiary existing on the
date hereof and set forth in Schedule 6.03; provided that (i) such Lien shall not
apply to any other property or asset of the Borrower or any Subsidiary and (ii) such Lien
shall secure only those obligations which it secures on the date hereof and extensions,
renewals and replacements thereof that do not increase the outstanding principal amount
thereof;




     (h) any Lien existing on any property or asset prior to the acquisition thereof by the
Borrower or any Subsidiary or existing on any property or asset of any Person that becomes a
Subsidiary after the date hereof prior to the time such Person becomes a Subsidiary;
provided that (i) such Lien is not created in contemplation of or in connection with
such acquisition or such Person becoming a Subsidiary, as the case may be, (ii) such Lien
shall not apply to any other property or assets of the Borrower or any Subsidiary and (iii)
such Lien shall secure only those obligations which it secures on the date of such
acquisition or the date such Person becomes a Subsidiary, as the case may be and extensions,
renewals and replacements thereof that do not increase the outstanding principal amount
thereof; and




     (i) Liens on fixed or capital assets acquired, constructed or improved by the Borrower
or any Subsidiary, provided that (i) such security interests and the Indebtedness secured
thereby are incurred prior to or within 90 days after such acquisition or the completion of
such construction or improvement, (ii) the Indebtedness secured thereby does not exceed the
cost of acquiring, constructing or improving such fixed or capital assets and (iii) such
security interests shall not apply to any other property or assets of the Borrower or any
Subsidiary.



          “Person” means any natural person, corporation, limited liability company, trust,
joint venture, association, company, partnership, Governmental Authority or other entity.




          “Plan” means any employee pension benefit plan (other than a Multiemployer Plan)
subject to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA,
and in respect of which the Borrower or any ERISA Affiliate is (or, if such plan were terminated,
would under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of
ERISA.




          “Prime Rate” means the rate of interest per annum publicly announced from time to time
by JPMorgan Chase Bank, N.A. as its prime rate in effect at its principal office in New York City;
each change in the Prime Rate shall be effective from and including the date such change is
publicly announced as being effective.




          “RBC Credit Agreement” means the 364-Day Credit Agreement, dated as of May 12, 2004,
among CFC, CHL, Lloyds TSB Bank Plc and Societe Generale, as documentation agents, BNP


13









 







Paribas, as
syndication agent, the lenders party thereto, Barclays Bank Plc, as administrative agent, and Royal
Bank of Canada, as managing administrative agent, as amended, supplemented or otherwise modified
from time to time (including, but not limited to, the Termination and Replacement Agreement dated
as of November 19, 2004, the First Amendment dated as of May 11, 2005 and the Second Amendment
dated as of November 18, 2005).




          “Register” has the meaning set forth in Section 10.04.




          “Related Parties” means, with respect to any specified Person, such Person’s
Affiliates and the respective directors, officers, employees, agents and advisors of such Person
and such Person’s Affiliates.




          “Required Lenders” means, at any time, Lenders having Credit Exposures and unused
Commitments representing more than 50% of the sum of the total Credit Exposures and unused
Commitments at such time; provided that, for purposes of declaring the Loans to be due and
payable pursuant to Article VII, and for all purposes after the Loans become due and payable
pursuant to Article VII and/or the Commitments expire or terminate, the outstanding Competitive
Loans of the Lenders shall be included in their respective Credit Exposures in determining the
Required Lenders.




          “Restricted Payment” means any dividend or other distribution (whether in cash,
securities or other property) with respect to any Equity Interests in the Borrower or any
Subsidiary, or any payment (whether in cash, securities or other property), including any sinking
fund or similar deposit, on account of the purchase, redemption, retirement, acquisition,
cancellation or termination of any such Equity Interests in the Borrower or any option, warrant or
other right to acquire any such Equity Interests in the Borrower.




          “Revolving Loan” means a Loan made pursuant to Section 2.03.




          “S&P” means Standard & Poor’s.




          “SEC” means the Securities and Exchange Commissions, any successor thereto and any
analogous Governmental Authority.




          “Specified MSR Liens” means (i) Liens on mortgage servicing rights securing secured
lines of credit for, warehouse financings of, or repurchase transactions involving, the whole
mortgage loans to which such mortgage servicing rights relate and (ii) Liens on mortgage servicing
rights following sales or securitizations of the mortgage loans to which such mortgage servicing
rights relate where such Liens are intended to benefit the investors in the event such sales or
securitizations are not “true sale” transactions.




          “Statutory Reserve Rate” means a fraction (expressed as a decimal), the numerator of
which is the number one and the denominator of which is the number one minus the aggregate of the
maximum reserve percentages (including any marginal, special, emergency or supplemental reserves)
expressed as a decimal established by the Board to which the Managing Administrative Agent is
subject
with respect to the Adjusted LIBO Rate, for eurocurrency funding (currently referred to as
“Eurocurrency Liabilities” in Regulation D of the Board). Such reserve percentages shall include
those imposed pursuant to such Regulation D. Eurodollar Loans shall be deemed to constitute
eurocurrency funding and to be subject to such reserve requirements without benefit of or credit
for proration, exemptions or offsets that may be available from time to time to any Lender under
such Regulation D or any comparable regulation. The Statutory Reserve Rate shall be adjusted
automatically on and as of the effective date of any change in any such reserve percentage.




14









 








          “subsidiary” means, with respect to any Person (the “parent”) at any date, any
corporation, limited liability company, partnership, association or other entity the accounts of
which would be consolidated with those of the parent in the parent’s consolidated financial
statements if such financial statements were prepared in accordance with GAAP as of such date, as
well as any other corporation, limited liability company, partnership, association or other entity
(a) of which securities or other ownership interests representing more than 50% of the equity or
more than 50% of the ordinary voting power or, in the case of a partnership, more than 50% of the
general partnership interests are, as of such date, owned, controlled or held, or (b) that is, as
of such date, otherwise Controlled, by the parent or one or more subsidiaries of the parent or by
the parent and one or more subsidiaries of the parent. Unless the context requires otherwise,
“Subsidiary” shall refer to any subsidiary of CFC.




          “Swingline Commitment” means, with respect to each Swingline Lender, the commitment of
such Swingline Lender to make Swingline Loans. The initial amount of each Swingline Lender’s
Swingline Commitment is set forth in Schedule 2.05.




          “Swingline Exposure” means, at any time, the aggregate principal amount of all
Swingline Loans outstanding at such time. The Swingline Exposure of any Lender at any time shall
be its Applicable Percentage of the total Swingline Exposure at such time.




          “Swingline Lender” means each Lender having a Swingline Commitment set forth in
Schedule 2.05 (as such Schedule may be amended and supplemented from time to time upon the consent
of the Borrower and the applicable Lender and notice to the Managing Administrative Agent), in its
capacity as a lender of Swingline Loans hereunder.




          “Swingline Loan” means a Loan made pursuant to Section 2.05.




          “Taxes” means any and all present or future taxes, levies, imposts, duties,
deductions, charges or withholdings imposed by any Governmental Authority.




          “Term-Out Maturity Date” means, if so selected by the Borrower pursuant to Section
2.09(a), May 9, 2008.




          “Transactions” means the execution, delivery and performance by CFC and CHL of this
Agreement and the other Loan Documents, the borrowing of Loans and the use of the proceeds thereof
by the Borrower.




          “Type”, when used in reference to any Loan or Borrowing, refers to whether the rate of
interest on such Loan, or on the Loans comprising such Borrowing, is determined by reference to the
Adjusted LIBO Rate, the Federal Funds Rate, the Alternate Base Rate or, in the case of a
Competitive Loan or Borrowing, the LIBO Rate or a Fixed Rate.




          “Withdrawal Liability” means liability to a Multiemployer Plan as a result of a
complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of
Subtitle E of Title IV of ERISA.




          SECTION 1.02. Classification of Loans and Borrowings. For purposes of this Agreement,
Loans may be classified and referred to by Class (e.g., a “Revolving Loan”) or by Type
(e.g., a “Eurodollar Loan”) or by Class and Type (e.g., a “Eurodollar Revolving
Loan”). Borrowings also may be classified and referred to by Class (e.g., a “Revolving
Borrowing”) or by Type (e.g., a “Eurodollar Borrowing”) or by Class and Type (e.g.,
a “Eurodollar Revolving Borrowing”).




15









 








          SECTION 1.03. Terms Generally. The definitions of terms herein shall apply equally to
the singular and plural forms of the terms defined. Whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter forms. The words “include”,
“includes” and “including” shall be deemed to be followed by the phrase “without limitation”. The
word “will” shall be construed to have the same meaning and effect as the word “shall”. Unless the
context requires otherwise (a) any definition of or reference to any agreement, instrument or other
document herein shall be construed as referring to such agreement, instrument or other document as
from time to time amended, supplemented or otherwise modified (subject to any restrictions on such
amendments, supplements or modifications set forth herein), (b) any reference herein to any Person
shall be construed to include such Person’s successors and assigns, (c) the words “herein”,
“hereof” and “hereunder”, and words of similar import, shall be construed to refer to this
Agreement in its entirety and not to any particular provision hereof, (d) all references herein to
Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of,
and Exhibits and Schedules to, this Agreement and (e) the words “asset” and “property” shall be
construed to have the same meaning and effect and to refer to any and all tangible and intangible
assets and properties, including cash, securities, accounts and contract rights.




          SECTION 1.04. Accounting Terms; GAAP. Except as otherwise expressly provided herein,
all terms of an accounting or financial nature shall be construed in accordance with GAAP, as in
effect from time to time; provided that, if the Borrower notifies the Managing
Administrative Agent that the Borrower requests an amendment to any provision hereof to eliminate
the effect of any change occurring after the date hereof in GAAP or in the application thereof on
the operation of such provision (or if the Managing Administrative Agent notifies the Borrower that
the Required Lenders request an amendment to any provision hereof for such purpose), regardless of
whether any such notice is given before or after such change in GAAP or in the application thereof,
then such provision shall be interpreted on the basis of GAAP as in effect and applied immediately
before such change shall have become effective until such notice shall have been withdrawn or such
provision amended in accordance herewith.




ARTICLE II




The Credits




          SECTION 2.01. Commitments; Increases in Revolving Facility. (a) Subject to the terms
and conditions set forth herein, each Lender agrees to make Revolving Loans to the Borrower from
time to time during the Availability Period in an aggregate
principal amount that will not result in (i) such Lender’s Credit Exposure exceeding such
Lender’s Commitment or (ii) the sum of the total Credit Exposures plus the aggregate principal
amount of outstanding Competitive Loans exceeding the total Commitments. Within the foregoing
limits and subject to the terms and conditions set forth herein, the Borrower may borrow, prepay
and reborrow Revolving Loans.




          (b) The Borrower and any one or more Lenders (including New Lenders) may from time to time agree that such
Lenders shall make, obtain or increase the amount of their Commitments by executing and delivering to the Managing
Administrative Agent an Increased Facility Activation Notice specifying (i) the amount of such increase and (ii) the
applicable Increased Facility Closing Date. Notwithstanding the foregoing, without the consent of the Required
Lenders, (x) in no event shall the aggregate amount of the Commitments exceed $2,760,000,000 and (y) each increase
effected pursuant to this paragraph shall be in a minimum amount of at least $50,000,000 (or, if less, the unused
portion of the amount in clause (x) above). No Lender shall have any obligation to participate in any increase
described in this paragraph unless it agrees to do so in its sole discretion. Any additional bank, financial
institution or other entity which, with the consent of the Borrower and the Managing Administrative Agent (which
consent shall not be unreasonably withheld), elects to become a “Lender” under this Agreement in connection with
any transaction described in this Section 2.01(b) shall execute a New Lender Supplement


16









 







(each, a
“New Lender
Supplement”), substantially in the form of Exhibit D, whereupon such bank, financial institution or other entity
(a “New Lender”) shall become a Lender for all purposes and to the same extent as if originally a party hereto and
shall be bound by and entitled to the benefits of this Agreement.




          SECTION 2.02. Loans and Borrowings. (a) Each Revolving Loan shall be made as part of
a Borrowing consisting of Revolving Loans made by the Lenders ratably in accordance with their
respective Commitments. Each Competitive Loan shall be made in accordance with the procedures set
forth in Section 2.04. The failure of any Lender to make any Loan required to be made by it shall
not relieve any other Lender of its obligations hereunder; provided that the Commitments
and Competitive Bids of the Lenders are several and no Lender shall be responsible for any other
Lender’s failure to make Loans as required.




          (b) Subject to Section 2.07(c)(iii) and Section 2.13, each Revolving Borrowing shall be
comprised entirely of Federal Funds Rate Loans or Eurodollar Loans as the Borrower may request in
accordance herewith. Subject to Section 2.13, each Competitive Borrowing shall be comprised
entirely of Eurodollar Loans or Fixed Rate Loans as the Borrower may request in accordance
herewith. Subject to Section 2.12(d), each Swingline Loan shall bear interest in a manner and for
a period to be agreed upon by the Borrower and the applicable Swingline Lender, provided
that in the event the Borrower requests a Swingline Loan and does not agree upon a period and
interest rate with the applicable Swingline Lender with respect thereto, such Swingline Loan shall
be a Federal Funds Rate Loan. Each Lender at its option may make any Eurodollar Loan by causing
any domestic or foreign branch or Affiliate of such Lender to make such Loan; provided that
any exercise of such option shall not affect the obligation of the Borrower to repay such Loan in
accordance with the terms of this Agreement.




          (c) At the commencement of each Interest Period for any Eurodollar Revolving Borrowing, such
Borrowing shall be in an aggregate amount that is an integral multiple of $25,000,000 and not less
than $25,000,000. At the time that each Federal Funds Rate Revolving Borrowing is made, such
Borrowing shall be in an aggregate amount that is an integral multiple of $25,000,000 and not less
than $25,000,000; provided that a Federal Funds Rate Revolving Borrowing may be in an
aggregate amount that is equal to the entire unused balance of the total Commitments. Each
Competitive Borrowing shall be in an aggregate amount that is an integral multiple of $25,000,000
and not less than $25,000,000.
Each Swingline Loan shall be in an amount that is an integral multiple of $5,000,000 and not
less than $5,000,000. Borrowings of more than one Type and Class may be outstanding at the same
time; provided that there shall not at any time be more than a total of six Eurodollar
Revolving Borrowings outstanding.




          (d) Notwithstanding any other provision of this Agreement, the Borrower shall not be entitled
to request, or to elect to convert or continue, any Borrowing if the Interest Period requested with
respect thereto would end after the Commitment Termination Date (if such Interest Period commences
prior to the Commitment Termination Date) or the Term-Out Maturity Date (if such Interest Period
commences on or after the Commitment Termination Date).




          SECTION 2.03. Requests for Revolving Borrowings. To request a Revolving Borrowing,
the Borrower shall notify the Managing Administrative Agent of such request by telephone (a) in the
case of a Eurodollar Revolving Borrowing, not later than 12:00 noon, New York City time, three
Business Days before the date of the proposed Borrowing or (b) in the case of a Federal Funds Rate
Revolving Borrowing, not later than 2:00 p.m., New York City time, on the date of the proposed
Borrowing. The Borrower may request that more than one Revolving Borrowing be made on the same
day. Each such telephonic Borrowing Request shall be irrevocable and shall be confirmed promptly
by hand delivery or telecopy to the Managing Administrative Agent of a written Borrowing Request in
a


17









 







form approved by the Managing Administrative Agent and signed by the Borrower. Each such
telephonic and written Borrowing Request shall specify the following information in compliance with
Section 2.02:





	 	(i)	 	the aggregate amount of the requested Borrowing;
	 
	 	(ii)	 	the date of such Borrowing, which shall be a Business
Day;
	 
	 	(iii)	 	whether such Borrowing is to be a Federal Funds Rate
Revolving Borrowing or a Eurodollar Revolving Borrowing;
	 
	 	(iv)	 	in the case of a Eurodollar Revolving Borrowing, the
initial Interest Period to be applicable thereto, which shall be a
period contemplated by the definition of the term “Interest Period”;
and
	 
	 	(v)	 	the location and number of the Borrower’s account to
which funds are to be disbursed, which shall comply with the
requirements of Section 2.06.




If no election as to the Type of Revolving Borrowing is specified, then the requested Revolving
Borrowing shall be a Federal Funds Rate Borrowing. If no Interest Period is specified with respect
to any requested Eurodollar Revolving Borrowing, then the Borrower shall be deemed to have selected
an Interest Period of one month’s duration. Promptly following receipt of a Borrowing Request in
accordance with this Section, the Managing Administrative Agent shall advise each Lender of the
details thereof and of the amount of such Lender’s Loan to be made as part of the requested
Borrowing.




          SECTION 2.04. Competitive Bid Procedure. (a) Subject to the terms and conditions set
forth herein, from time to time during the Availability Period the Borrower may request Competitive
Bids and may (but shall not have any obligation to) accept Competitive Bids and borrow Competitive
Loans; provided that the sum of the total Credit Exposures plus the aggregate principal
amount of outstanding Competitive Loans at any time shall not exceed the total Commitments. To
request Competitive Bids, the Borrower shall notify the Managing
Administrative Agent of such request by telephone, in the case of a Eurodollar Competitive
Borrowing, not later than 12:00 noon, New York City time, four Business Days before the date of the
proposed Borrowing and, in the case of a Fixed Rate Borrowing, not later than 10:00 a.m., New York
City time, one Business Day before the date of the proposed Borrowing; provided that the
Borrower may submit up to (but not more than) three Competitive Bid Requests on the same day, but a
Competitive Bid Request shall not be made within five Business Days after the date of any previous
Competitive Bid Request, unless any and all such previous Competitive Bid Requests shall have been
withdrawn or all Competitive Bids received in response thereto rejected. Each such telephonic
Competitive Bid Request shall be confirmed promptly by hand delivery or telecopy to the Managing
Administrative Agent of a written Competitive Bid Request in a form approved by the Managing
Administrative Agent and signed by the Borrower. Each such telephonic and written Competitive Bid
Request shall specify the following information in compliance with Section 2.02:





	 	(i)	 	the aggregate amount of the requested Borrowing;
	 
	 	(ii)	 	the date of such Borrowing, which shall be a Business Day;
	 
	 	(iii)	 	whether such Borrowing is to be a Eurodollar Competitive
Borrowing or a Fixed Rate Borrowing;
	 
	 	(iv)	 	the Interest Period to be applicable to such Borrowing, which
shall be a period contemplated by the definition of the term “Interest Period”;
and




18









 






	 	(v)	 	the location and number of the Borrower’s account to which
funds are to be disbursed, which shall comply with the requirements of Section
2.06.




Promptly following receipt of a Competitive Bid Request in accordance with this Section, the
Managing Administrative Agent shall notify the Lenders of the details thereof by telecopy, inviting
the Lenders to submit Competitive Bids.




          (b) Each Lender may (but shall not have any obligation to) make one or more Competitive Bids
to the Borrower in response to a Competitive Bid Request. Each Competitive Bid by a Lender must be
in a form approved by the Managing Administrative Agent and must be received by the Managing
Administrative Agent by telecopy, in the case of a Eurodollar Competitive Borrowing, not later than
9:30 a.m., New York City time, three Business Days before the proposed date of such Competitive
Borrowing, and in the case of a Fixed Rate Borrowing, not later than 9:30 a.m., New York City time,
on the proposed date of such Competitive Borrowing. Competitive Bids that do not conform
substantially to the form approved by the Managing Administrative Agent may be rejected by the
Managing Administrative Agent, and the Managing Administrative Agent shall notify the applicable
Lender as promptly as practicable. Each Competitive Bid shall specify (i) the principal amount
(which shall be a minimum of $5,000,000 and an integral multiple of $1,000,000 and which may equal
the entire principal amount of the Competitive Borrowing requested by the Borrower) of the
Competitive Loan or Loans that the applicable Lender is willing to make, (ii) the Competitive Bid
Rate or Rates at which the applicable Lender is prepared to make such Loan or Loans (expressed as a
percentage rate per annum in the form of a decimal to no more than four decimal places) and (iii)
the Interest Period applicable to each such Loan and the last day thereof.




          (c) The Managing Administrative Agent shall promptly notify the Borrower by telecopy of the
Competitive Bid Rate and the principal amount specified in each Competitive Bid and the identity of
the Lender that shall have made such Competitive Bid.




          (d) Subject only to the provisions of this paragraph, the Borrower may accept or reject any
Competitive Bid. The Borrower shall notify the Managing Administrative Agent by telephone,
confirmed by telecopy in a form approved by the Managing Administrative Agent, whether and to what
extent it has decided to accept or reject each Competitive Bid, in the case of a Eurodollar
Competitive Borrowing, not later than 10:30 a.m., New York City time, three Business Days before
the date of the proposed Competitive Borrowing, and in the case of a Fixed Rate Borrowing, not
later than 10:30 a.m., New York City time, on the proposed date of the Competitive Borrowing;
provided that (i) the failure of the Borrower to give such notice shall be deemed to be a
rejection of each Competitive Bid, (ii) the Borrower shall not accept a Competitive Bid made at a
particular Competitive Bid Rate if the Borrower rejects a Competitive Bid made at a lower
Competitive Bid Rate, (iii) the aggregate amount of the Competitive Bids accepted by the Borrower
shall not exceed the aggregate amount of the requested Competitive Borrowing specified in the
related Competitive Bid Request, (iv) to the extent necessary to comply with clause (iii) above,
the Borrower may accept Competitive Bids at the same Competitive Bid Rate in part, which
acceptance, in the case of multiple Competitive Bids at such Competitive Bid Rate, shall be made
pro rata in accordance with the amount of each such Competitive Bid, and (v) except pursuant to
clause (iv) above, no Competitive Bid shall be accepted for a Competitive Loan unless such
Competitive Loan is in a minimum principal amount of $5,000,000 and an integral multiple of
$5,000,000; provided further that if a Competitive Loan must be in an amount less
than $5,000,000 because of the provisions of clause (iv) above, such Competitive Loan may be for a
minimum of $1,000,000 or any integral multiple thereof, and in calculating the pro rata allocation
of acceptances of portions of multiple Competitive Bids at a particular Competitive Bid Rate
pursuant to clause (iv) the amounts shall be rounded to integral multiples of $1,000,000 in a
manner determined by the Borrower. A notice given by the Borrower pursuant to this paragraph shall
be irrevocable.




19









 








          (e) The Managing Administrative Agent shall promptly notify each bidding Lender by telecopy
whether or not its Competitive Bid has been accepted (and, if so, the amount and Competitive Bid
Rate so accepted), and each successful bidder will thereupon become bound, subject to the terms and
conditions hereof, to make the Competitive Loan in respect of which its Competitive Bid has been
accepted.




          (f) If the Managing Administrative Agent shall elect to submit a Competitive Bid in its
capacity as a Lender, it shall submit such Competitive Bid directly to the Borrower at least one
quarter of an hour earlier than the time by which the other Lenders are required to submit their
Competitive Bids to the Managing Administrative Agent pursuant to paragraph (b) of this Section.




          SECTION 2.05. Swingline Loans. (a) Subject to the terms and conditions set forth
herein, each Swingline Lender agrees to make Swingline Loans to the Borrower from time to time
during the Availability Period, in an aggregate principal amount at any time outstanding that will
not result in (i) the aggregate principal amount of its outstanding Swingline Loans exceeding its
Swingline Commitment or (ii) the sum of the total Credit Exposures plus the aggregate principal
amount of outstanding Competitive Loans exceeding the total Commitments; provided that no
Swingline Lender shall be required to make a Swingline Loan to refinance any outstanding Swingline
Loan. Within the foregoing limits and subject to the terms and conditions set forth herein, the
Borrower may borrow, prepay and reborrow Swingline Loans.




          (b) To request a Swingline Loan, the Borrower shall notify the applicable Swingline Lender of
such request by telephone (confirmed by telecopy), not later than 2:00 p.m., New York City time, on
the day of a proposed Swingline Loan. Each such notice shall be irrevocable and shall specify the
requested date (which shall be a Business Day), the requested maturity date (which date shall be a
Business Day and a day not later than the earlier of the Commitment Termination Date and the tenth
Business Day after the date such Swingline Loan is to be made) and amount of the requested
Swingline Loan. Such Swingline Lender will determine with the Borrower, as provided in Section
2.12(e), the interest rate to be applicable to such Swingline Loan and will then promptly advise
the Managing Administrative Agent of any such Swingline Loan. The applicable Swingline Lender
shall make each Swingline Loan available to the Borrower by 3:00 p.m., New York City time, on the
requested date of such Swingline Loan.




          (c) Any Swingline Lender may, by written notice given to the Managing Administrative Agent not
later than 10:00 a.m., New York City time, on any Business Day on or after the maturity date of any
of its Swingline Loans, require the Lenders to acquire participations on such Business Day in all
or a portion of such Swingline Loan. Such notice shall specify the aggregate amount of Swingline
Loans in which Lenders will participate. Promptly upon receipt of such notice, the Managing
Administrative Agent will give notice thereof to each Lender, specifying in such notice such
Lender’s Applicable Percentage of such Swingline Loan or Loans. Each Lender hereby absolutely and
unconditionally agrees, upon receipt of notice as provided above, to pay to the Managing
Administrative Agent, for the account of the applicable Swingline Lender, such Lender’s Applicable
Percentage of such Swingline Loan or Loans. Each Lender acknowledges and agrees that its
obligation to acquire participations in Swingline Loans pursuant to this paragraph is absolute and
unconditional and shall not be affected by any circumstance whatsoever, including the occurrence
and continuance of a Default or Event of Default or reduction or termination of the Commitments,
and that each such payment shall be made without any offset, abatement, withholding or reduction
whatsoever. Each Lender shall comply with its obligation under this paragraph by wire transfer of
immediately available funds, in the same manner as provided in Section 2.06 with respect to Loans
made by such Lender (and Section 2.06 shall apply, mutatis mutandis, to the payment
obligations of the Lenders), and the Managing Administrative Agent shall promptly pay to the
applicable Swingline Lender the amounts so received by it from the


20









 







Lenders. The Managing
Administrative Agent shall notify the Borrower of any participations in any Swingline Loan acquired
pursuant to this paragraph, and thereafter payments in respect of such Swingline Loan shall be made
to the Managing Administrative Agent and not to the applicable Swingline Lender. Any amounts
received by a Swingline Lender from the Borrower (or other party on behalf of the Borrower) in
respect of a Swingline Loan after receipt by such Swingline Lender of the proceeds of a sale of
participations therein shall be promptly remitted to the Managing Administrative Agent; any such
amounts received by the Managing Administrative Agent shall be promptly remitted by the Managing
Administrative Agent to the Lenders that shall have made their payments pursuant to this paragraph
and to the applicable Swingline Lender, as their interests may appear; provided that any
such payment so remitted shall be repaid to the Swingline Lender or to the Managing Administrative
Agent, as applicable, if and to the extent such payment is required to be refunded to the Borrower
for any reason. The purchase of participations in a Swingline Loan pursuant to this paragraph
shall not relieve the Borrower of any default in the payment thereof.




          SECTION 2.06. Funding of Borrowings. (a) Each Lender shall make each Loan to be made
by it hereunder on the proposed date thereof by wire transfer of immediately available funds by
3:00 p.m., New York City time, to the account of the Managing Administrative Agent most recently
designated by it for such purpose by notice to the Lenders; provided that Swingline Loans
shall be made as provided in Section 2.05. The Managing Administrative Agent will make such Loans
available to the Borrower by promptly crediting the amounts so received, in like funds, to an
account of the Borrower maintained with the Managing Administrative Agent in New York City and
designated by the Borrower in the applicable Borrowing Request or Competitive Bid Request.




          (b) Unless the Managing Administrative Agent shall have received notice from a Lender prior to
the proposed date of any Borrowing that such Lender will not make available to the Managing
Administrative Agent such Lender’s share of such Borrowing, the Managing Administrative Agent may
assume that such Lender has made such share available on such date in accordance with paragraph (a)
of this Section and may, in reliance upon such assumption, make available to the Borrower a
corresponding amount. In such event, if a Lender has not in fact made its share of the applicable
Borrowing available to the Managing Administrative Agent, then the applicable Lender and the
Borrower severally agree to pay to the Managing Administrative Agent forthwith on demand such
corresponding amount with interest thereon, for each day from and including the date such amount is
made available to the Borrower to but excluding the date of payment to the Managing Administrative
Agent, at (i) in the case of such Lender, the greater of the Federal Funds Rate and a rate
determined by the Managing Administrative Agent in accordance with banking industry rules on
interbank compensation or (ii) in the case of the Borrower, the Federal Funds Rate plus the
Applicable Rate. If such Lender pays such amount to the Managing Administrative Agent, then such
amount shall constitute such Lender’s Loan included in such Borrowing as of the date of such
Borrowing.




          SECTION 2.07. Interest Elections. (a) Each Revolving Borrowing initially shall be of
the Type specified in the applicable Borrowing Request and, in the case of a Eurodollar Revolving
Borrowing, shall have an initial Interest Period as specified in such Borrowing Request.
Thereafter, the Borrower may elect to convert such Borrowing to a different Type or to continue
such Borrowing and, in the case of a Eurodollar Revolving Borrowing, may elect Interest Periods
therefor, all as provided in this Section. The Borrower may elect different options with respect
to different portions of the affected Borrowing, in which case each such portion shall be allocated
ratably among the Lenders holding the Loans comprising such Borrowing, and the Loans comprising
each such portion shall be considered a separate Borrowing. This Section shall not apply to
Competitive Borrowings or Swingline Borrowings, which may not be converted or continued.




21









 








          (b) To make an election pursuant to this Section, the Borrower shall notify the Managing
Administrative Agent of such election by telephone by the time that a Borrowing Request would be
required under Section 2.03 if the Borrower were requesting a Revolving Borrowing of the Type
resulting from such election to be made on the effective date of such election. Each such
telephonic Interest Election Request shall be irrevocable and shall be confirmed promptly by hand
delivery or telecopy to the Managing Administrative Agent of a written Interest Election Request in
a form approved by the Managing Administrative Agent and signed by the Borrower.




          (c) Each telephonic and written Interest Election Request shall specify the following
information in compliance with Section 2.02:





     (i) the Borrowing to which such Interest Election Request applies and, if different
options are being elected with respect to different portions thereof, the portions thereof
to be allocated to each resulting Borrowing (in which case the information to be specified
pursuant to clauses (iii) and (iv) below shall be specified for each resulting Borrowing);




     (ii) the effective date of the election made pursuant to such Interest Election
Request, which shall be a Business Day;




     (iii) whether the resulting Borrowing is to be a Federal Funds Rate Borrowing or a
Eurodollar Borrowing, provided that in the event that the Borrower elects to extend the date
on which the Revolving Loans shall be due and payable in accordance with Section 2.09(a),
then
each Revolving Loan Borrowing outstanding on or after the Commitment Termination Date
shall be comprised of Alternate Base Rate Loans or Eurodollar Loans; and




     (iv) if the resulting Borrowing is a Eurodollar Borrowing, the Interest Period to be
applicable thereto after giving effect to such election, which shall be a period
contemplated by the definition of the term “Interest Period”.


If any such Interest Election Request requests a Eurodollar Borrowing but does not specify an
Interest Period, then the Borrower shall be deemed to have selected an Interest Period of one
month’s duration.




          (d) Promptly following receipt of an Interest Election Request, the Managing Administrative
Agent shall advise each Lender of the details thereof and of such Lender’s portion of each
resulting Borrowing.




          (e) If the Borrower fails to deliver a timely Interest Election Request with respect to a
Eurodollar Revolving Borrowing prior to the end of the Interest Period applicable thereto, then,
unless such Borrowing is repaid as provided herein, at the end of such Interest Period such
Borrowing shall be converted to a Federal Funds Rate Borrowing. Notwithstanding any contrary
provision hereof, if an Event of Default has occurred and is continuing and the Managing
Administrative Agent, at the request of the Required Lenders, so notifies the Borrower, then, so
long as an Event of Default is continuing (i) no outstanding Revolving Borrowing may be converted
to or continued as a Eurodollar Borrowing and (ii) unless repaid, each Eurodollar Revolving
Borrowing shall be converted to an Alternate Base Rate Borrowing at the end of the Interest Period
applicable thereto.




          SECTION 2.08. Termination and Reduction of Commitments. (a) Unless previously
terminated, the Commitments shall terminate on the Commitment Termination Date.




          (b) The Borrower may at any time terminate, or from time to time reduce, the Commitments;
provided that (i) each reduction of the Commitments shall be in an amount that is an


22









 







integral multiple of $25,000,000 and not less than $25,000,000 and (ii) the Borrower shall not
terminate or reduce the Commitments if, after giving effect to any concurrent prepayment of the
Loans in accordance with Section 2.10, the sum of the Credit Exposures plus the aggregate principal
amount of outstanding Competitive Loans would exceed the total Commitments. The Borrower may at
any time terminate, or from time to time reduce, the Swingline Commitments of one or more Swingline
Lenders without any reduction or termination of the Commitments; provided that (i) each
reduction of any Swingline Commitment shall be in an amount that is an integral multiple of
$25,000,000 and not less than $25,000,000 and (ii) the Borrower shall not terminate or reduce the
Swingline Commitment of any Swingline Lender if, after giving effect to such termination or
reduction, the sum of the outstanding Swingline Loans of such Swingline Lender would exceed its
Swingline Commitment.




          (c) The Borrower shall notify the Managing Administrative Agent of any election to terminate
or reduce the Commitments under paragraph (b) of this Section at least three Business Days prior to
the effective date of such termination or reduction, specifying such election and the effective
date thereof. Promptly following receipt of any notice, the Managing Administrative Agent shall
advise the Lenders of the contents thereof. Each notice delivered by the Borrower pursuant to this
Section shall be irrevocable; provided that a notice of termination of the Commitments
delivered by the Borrower may state that such notice is conditioned upon the effectiveness of other
credit facilities, in which case such notice may be revoked by the Borrower (by notice to the
Managing Administrative Agent on or prior to the specified effective date) if such condition is not
satisfied. Any termination or reduction of the
Commitments shall be permanent. Each reduction of the Commitments shall be made ratably among
the Lenders in accordance with their respective Commitments.




          (d) Upon the occurrence of a Change of Control with respect to CFC, the Managing
Administrative Agent, at the request of the Required Lenders, may, by notice to the Borrower,
terminate the Commitments, such termination to be effective as of the date set forth in such notice
for the termination of the Commitments but in no event earlier than one Business Day following the
date such notice was delivered to the Borrower.




          SECTION 2.09. Repayment of Loans; Evidence of Debt. (a) The Borrower hereby
unconditionally promises to pay (i) to the Managing Administrative Agent for the account of each
Lender the then unpaid principal amount of each Revolving Loan on the Commitment Termination Date
or on the Business Day specified in any notice delivered by the Managing Administrative Agent
referred to in Section 2.08(d), (ii) to the Managing Administrative Agent for the account of each
applicable Lender the then unpaid principal amount of each Competitive Loan on the last day of the
Interest Period applicable to such Loan and (iii) to each Swingline Lender the then unpaid
principal amount of any Swingline Loan owing to such Swingline Lender on the maturity date
applicable to such Swingline Loan. Upon receipt of any payment or prepayment by a Swingline Lender
from the Borrower on account of the principal amount of a Swingline Loan, such Swingline Lender
shall provide written notice to the Managing Administrative Agent of the date and amount of such
payment or prepayment. Notwithstanding clause (i) above, the Borrower may, upon written notice to
the Managing Administrative Agent and each of the Lenders given at least three Business Days prior
to the Commitment Termination Date, extend the date upon which the principal amount of the
Revolving Loans outstanding as of the Commitment Termination Date will be due and payable to the
Term-Out Maturity Date. If the Borrower gives notice to the Managing Administrative Agent in
accordance with the preceding sentence, the Borrower hereby agrees that the outstanding principal
balance of each Revolving Loan outstanding on the Commitment Termination Date shall be payable on
the Term-Out Maturity Date. From and after the Commitment Termination Date, any Revolving Loans
for which the Borrower has elected the Term-Out Maturity Date shall consist entirely of Alternate
Base Rate Loans and Eurodollar Loans, and any such Revolving Loans which consist of Federal Funds
Rate Loans on the Commitment Termination Date shall automatically be converted into Alternate Base
Rate Loans in the absence of a conversion on such date into Eurodollar Loans. It is understood
that,


23









 







whether or not the Term-Out Maturity Date is selected, (x) the Commitments shall
automatically terminate on the Commitment Termination Date and (y) no maturity date for any
Competitive Loan or Swingline Loan may be extended beyond the Commitment Termination Date.




          (b) Each Lender shall maintain in accordance with its usual practice an account or accounts
evidencing the indebtedness of the Borrower to such Lender resulting from each Loan made by such
Lender, including the amounts of principal and interest payable and paid to such Lender from time
to time hereunder.




          (c) The Managing Administrative Agent shall maintain accounts in which it shall record (i) the
amount of each Loan made hereunder, the Class and Type thereof and the Interest Period applicable
thereto, (ii) the amount of any principal or interest due and payable or to become due and payable
from the Borrower to each Lender hereunder and (iii) the amount of any sum received by the Managing
Administrative Agent hereunder for the account of the Lenders and each Lender’s share thereof.




          (d) The entries made in the accounts maintained pursuant to paragraph (b) or (c) of this
Section shall be prima facie evidence of the existence and amounts of the
obligations recorded
therein; provided that the failure of any Lender or the Managing Administrative Agent
to maintain such accounts or any error therein shall not in any manner affect the obligation of the
Borrower to repay the Loans in accordance with the terms of this Agreement.




          (e) Any Lender may request that Loans made by it be evidenced by a promissory note. In such
event, the Borrower shall prepare, execute and deliver to such Lender a promissory note payable to
the order of such Lender (or, if requested by such Lender, to such Lender and its registered
assigns) and in a form approved by the Managing Administrative Agent. Thereafter, the Loans
evidenced by such promissory note and interest thereon shall at all times (including after
assignment pursuant to Section 10.04) be represented by one or more promissory notes in such form
payable to the order of the payee named therein (or, if such promissory note is a registered note,
to such payee and its registered assigns).




          SECTION 2.10. Prepayment of Loans. (a) The Borrower shall have the right at any time
and from time to time to prepay any Borrowing in whole or in part, subject to prior notice in
accordance with paragraph (b) of this Section.




          (b) The Borrower shall notify the Managing Administrative Agent (and, in the case of
prepayment of a Swingline Loan or Competitive Loan, the applicable Swingline Lender or the
applicable Lender, respectively) by telephone (confirmed by telecopy) of any prepayment hereunder
(i) in the case of prepayment of a Eurodollar Revolving Borrowing, not later than 12:00 noon, New
York City time, three Business Days before the date of prepayment or (ii) in the case of prepayment
of a Federal Funds Rate Revolving Borrowing, an Alternate Base Rate Revolving Borrowing, a Fixed
Rate Borrowing or a Swingline Loan, not later than 12:00 noon, New York City time, on the date of
prepayment. Each such notice shall be irrevocable and shall specify the prepayment date and the
principal amount of each Borrowing or portion thereof to be prepaid; provided that, if a
notice of prepayment is given in connection with a conditional notice of termination of the
Commitments as contemplated by Section 2.08, then such notice of prepayment may be revoked if such
notice of termination is revoked in accordance with Section 2.08. Promptly following receipt of
any such notice relating to a Revolving Borrowing, the Managing Administrative Agent shall advise
the Lenders of the contents thereof. Each partial prepayment of any Revolving Borrowing shall be
in an amount that would be permitted in the case of an advance of a Revolving Borrowing of the same
Type as provided in Section 2.02. Each prepayment of a Revolving Borrowing shall be applied
ratably to the Loans included in the prepaid Borrowing.


24









 







Prepayments shall be accompanied by
accrued interest to the extent required by Section 2.12. From and after the Commitment Termination
Date, amounts prepaid on account of Loans may not be reborrowed.




          SECTION 2.11. Fees. (a) The Borrower agrees to pay to the Managing Administrative
Agent for the account of each Lender a facility fee, which shall accrue at the Applicable Rate on
the daily amount of the Commitment of such Lender (whether used or unused) during the period from
and including the date hereof to but excluding the date on which such Commitment terminates (and,
if the Term-Out Maturity Date has been selected, during the period from and including the
Commitment Termination Date to but excluding the Term-Out Maturity Date); provided that, if
such Lender continues to have any outstanding Loans after its Commitment terminates, then such
facility fee shall continue to accrue on the daily amount of such Lender’s Loans from and including
the date on which its Commitment terminates (including, without limitation, during any period after
the Commitment Termination Date if the Term-Out Maturity Date is selected) to but excluding the
date on which such Lender ceases to have any Loans outstanding. Facility fees accrued through and
including the last day of March, June, September and December of each year shall be payable on the
third Business Day following such last day, commencing on the first such
date to occur after the date hereof; provided that all such fees shall be payable on
the date on which the Commitments terminate and any such fees accruing after the date on which the
Commitments terminate shall be payable on demand. All facility fees shall be computed on the basis
of a year of 360 days and shall be payable for the actual number of days elapsed (including the
first day but excluding the last day).




          (b) During the Availability Period (and, if the Term-Out Maturity Date has been selected,
during the period from and including the Commitment Termination Date to but excluding the Term-Out
Maturity Date), the Borrower agrees to pay to the Managing Administrative Agent for the account of
each Lender a utilization fee at the Applicable Rate on the aggregate amount of the Revolving Loans
under this Agreement outstanding on each day during the quarter for which such fee is to be paid;
provided, that no such fee shall be required to be paid with respect to any day on which
the aggregate amount of the Revolving Loans, Swingline Loans and Competitive Loans then outstanding
under this Agreement does not exceed 50% of the aggregate Commitments of the Lenders then in effect
under this Agreement (it being understood that such amount shall be $0 on each day following the
Commitment Termination Date). Such utilization fee, to the extent payable, shall be payable
quarterly in arrears on the last day of each March, June, September and December, commencing on
June 30, 2006 and on the Commitment Termination Date, and, if applicable, the Term-Out Maturity
Date (or, in any case, any earlier date on which all amounts outstanding hereunder shall become due
and payable by acceleration or otherwise). All utilization fees shall be computed on the basis of a
year of 360 days and shall be payable for the actual number of days elapsed (including the first
day but excluding the last day).




          (c) The Borrower agrees to pay to the Managing Administrative Agent, for its own account, fees
payable in the amounts and at the times separately agreed upon between the Borrower and the
Managing Administrative Agent.




          (d) All fees payable hereunder shall be paid on the dates due, in immediately available funds,
to the Managing Administrative Agent for distribution, in the case of facility fees and utilization
fees, to the Lenders. Fees paid shall not be refundable under any circumstances.




          SECTION 2.12. Interest. (a) The Loans comprising each Federal Funds Rate Borrowing
shall bear interest at the Federal Funds Rate plus the Applicable Rate.




          (b) The Loans comprising each Alternate Base Rate Borrowing shall bear interest at the
Alternate Base Rate.




25









 








          (c) The Loans comprising each Eurodollar Borrowing shall bear interest (i) in the case of a
Eurodollar Revolving Loan, at the Adjusted LIBO Rate for the Interest Period in effect for such
Borrowing plus the Applicable Rate, or (ii) in the case of a Eurodollar Competitive Loan, at the
LIBO Rate for the Interest Period in effect for such Borrowing plus (or minus, as applicable) the
Margin applicable to such Loan.




          (d) Each Fixed Rate Loan shall bear interest at the Fixed Rate applicable to such Loan.




          (e) Each Swingline Loan shall bear interest in a manner to be agreed upon by the Borrower and
the applicable Swingline Lender, provided that (i) in the event the Borrower requests a
Swingline Loan and does not agree upon an interest rate with such Swingline Lender with respect
thereto, such Swingline Loan shall bear interest at the Federal Funds Rate plus the Applicable Rate
and (ii) from
and after the maturity date of such Swingline Loan, such Swingline Loan (or participated
portion thereof) shall bear interest at the Alternate Base Rate.




          (f) Notwithstanding the foregoing, if any principal of or interest on any Loan or any fee or
other amount payable by the Borrower hereunder is not paid when due, whether at stated maturity,
upon acceleration or otherwise, such overdue amount shall bear interest, after as well as before
judgment, at a rate per annum equal to (i) in the case of overdue principal of any Loan, 2% plus
the rate otherwise applicable to such Loan as provided in the preceding paragraphs of this Section
or (ii) in the case of any other amount, 2% plus the Alternate Base Rate.




          (g) Accrued interest on each Loan shall be payable in arrears on each Interest Payment Date
for such Loan and, in the case of Revolving Loans, upon termination of the Commitments;
provided that (i) interest accrued pursuant to paragraph (d) of this Section shall be
payable on demand, (ii) in the event of any repayment or prepayment of any Loan (other than a
prepayment of a Federal Funds Rate Loan prior to the end of the Availability Period), accrued
interest on the principal amount repaid or prepaid shall be payable on the date of such repayment
or prepayment and (iii) in the event of any conversion of any Eurodollar Revolving Loan prior to
the end of the current Interest Period therefor, accrued interest on such Loan shall be payable on
the effective date of such conversion.




          (h) All interest hereunder shall be computed on the basis of a year of 360 days, except that
interest computed by reference to the Alternate Base Rate at times when the Alternate Base Rate is
based on the Prime Rate shall be computed on the basis of a year of 365 days (or 366 days in a leap
year), and in each case shall be payable for the actual number of days elapsed (including the first
day but excluding the last day). The applicable Alternate Base Rate, Adjusted LIBO Rate or LIBO
Rate shall be determined by the Managing Administrative Agent, and such determination shall be
conclusive absent manifest error.




          SECTION 2.13. Alternate Rate of Interest. If prior to the commencement of any
Interest Period for a Eurodollar Borrowing:





     (a) the Managing Administrative Agent determines (which determination shall be
conclusive absent manifest error) that adequate and reasonable means do not exist for
ascertaining the Adjusted LIBO Rate or the LIBO Rate, as applicable, for such Interest
Period; or




     (b) the Managing Administrative Agent is advised by the Required Lenders (or, in the
case of a Eurodollar Competitive Loan, the Lender that is required to make such Loan) that
the Adjusted LIBO Rate or the LIBO Rate, as applicable, for such Interest Period will not



26









 







adequately and fairly reflect the cost to such Lenders (or Lender) of making or maintaining
their Loans (or its Loan) included in such Borrowing for such Interest Period;


then the Managing Administrative Agent shall give notice thereof to the Borrower and the Lenders by
telephone or telecopy as promptly as practicable thereafter and, until the Managing Administrative
Agent notifies the Borrower and the Lenders that the circumstances giving rise to such notice no
longer exist, (i) any Interest Election Request that requests the conversion of any Revolving
Borrowing to, or continuation of any Revolving Borrowing as, a Eurodollar Borrowing shall be
ineffective and such Revolving Borrowing shall be a Federal Funds Rate Revolving Borrowing (or,
after the Commitment Termination Date, an Alternate Base Rate Borrowing), (ii) if any Borrowing
Request requests a Eurodollar Revolving Borrowing, such Borrowing shall be made as a Federal Funds
Rate Revolving Borrowing and (iii) any request by the Borrower for a Eurodollar Competitive
Borrowing shall be ineffective; provided that if the
circumstances giving rise to such notice do not affect all the Lenders, then requests by the
Borrower for Eurodollar Competitive Borrowings may be made to Lenders that are not affected
thereby.




          SECTION 2.14. Increased Costs. (a) If any Change in Law shall:





     (i) impose, modify or deem applicable any reserve, special deposit or similar
requirement against assets of, deposits with or for the account of, or credit extended by,
any Lender (except any such reserve requirement reflected in the Adjusted LIBO Rate); or




     (ii) impose on any Lender or the London interbank market any other condition affecting
this Agreement or Eurodollar Loans or Fixed Rate Loans made by such Lender;


and the result of any of the foregoing shall be to increase the cost to such Lender of making or
maintaining any Eurodollar Loan or Fixed Rate Loan (or of maintaining its obligation to make any
such Loan) or to increase the cost to such Lender or to reduce the amount of any sum received or
receivable by such Lender hereunder (whether of principal, interest or otherwise), then the
Borrower will pay to such Lender such additional amount or amounts as will compensate such Lender
for such additional costs incurred or reduction suffered.




          (b) If any Lender reasonably determines that any Change in Law regarding capital requirements
has or would have the effect of reducing the rate of return on such Lender’s capital or on the
capital of such Lender’s holding company, if any, as a consequence of this Agreement or the Loans
made by such Lender to a level below that which such Lender or such Lender’s holding company could
have achieved but for such Change in Law (taking into consideration such Lender’s policies and the
policies of such Lender’s holding company with respect to capital adequacy), then from time to time
the Borrower will pay to such Lender such additional amount or amounts as will compensate such
Lender or such Lender’s holding company for any such reduction suffered.




          (c) A certificate of a Lender setting forth the amount or amounts necessary to compensate such
Lender or its holding company, as the case may be, as specified in paragraph (a) or (b) of this
Section shall be delivered to the Borrower and shall be conclusive absent manifest error. The
Borrower shall pay such Lender the amount shown as due on any such certificate within 10 days after
receipt thereof.




          (d) Failure or delay on the part of any Lender to demand compensation pursuant to this Section
shall not constitute a waiver of such Lender’s right to demand such compensation; provided
that the Borrower shall not be required to compensate a Lender pursuant to this Section for any
increased costs or reductions incurred more than 270 days prior to the date that such Lender
notifies the Borrower of the Change in Law giving rise to such increased costs or reductions and of
such Lender’s intention to


27









 







claim compensation therefor; provided further that, if
the Change in Law giving rise to such increased costs or reductions is retroactive, then the
270-day period referred to above shall be extended to include the period of retroactive effect
thereof.




          (e) Notwithstanding the foregoing provisions of this Section, a Lender shall not be entitled
to compensation pursuant to this Section in respect of any Competitive Loan if the Change in Law
that would otherwise entitle it to such compensation shall have been publicly announced prior to
submission of the Competitive Bid pursuant to which such Loan was made.




          SECTION 2.15. Break Funding Payments. In the event of (a) the payment of any principal of any Eurodollar Loan or Fixed Rate Loan
other than on the last day of an Interest Period applicable thereto (including as a result of an
Event of Default), (b) the conversion of any Eurodollar Loan other than on the last day of the
Interest Period applicable thereto, (c) the failure to borrow, convert, continue or prepay any
Eurodollar Loan or Fixed Rate Loan on the date specified in any notice delivered pursuant hereto
(regardless of whether such notice may be revoked under Section 2.10(b) and is revoked in
accordance therewith), (d) the failure to borrow any Competitive Loan after accepting the
Competitive Bid to make such Loan, or (e) the assignment of any Eurodollar Loan or Fixed Rate Loan
other than on the last day of the Interest Period applicable thereto as a result of a request by
the Borrower pursuant to Section 2.18, then, in any such event, the Borrower shall compensate each
Lender for the loss, cost and expense attributable to such event. In the case of a Eurodollar
Loan, such loss, cost or expense to any Lender shall be deemed to include an amount determined by
such Lender to be the excess, if any, of (i) the amount of interest which would have accrued on the
principal amount of such Loan had such event not occurred, at the Adjusted LIBO Rate that would
have been applicable to such Loan, for the period from the date of such event to the last day of
the then current Interest Period therefor (or, in the case of a failure to borrow, convert or
continue, for the period that would have been the Interest Period for such Loan), over (ii) the
amount of interest which would accrue on such principal amount for such period at the interest rate
which such Lender would bid were it to bid, at the commencement of such period, for Dollar deposits
of a comparable amount and period from other banks in the eurodollar market. A certificate of any
Lender setting forth any amount or amounts that such Lender is entitled to receive pursuant to this
Section shall be delivered to the Borrower and shall be conclusive absent manifest error. The
Borrower shall pay such Lender the amount shown as due on any such certificate within 10 days after
receipt thereof.




          SECTION 2.16. Taxes. (a) Any and all payments by or on account of any obligation of
the Borrower hereunder shall be made free and clear of and without deduction for any Indemnified
Taxes or Other Taxes; provided that if the Borrower shall be required to deduct any
Indemnified Taxes or Other Taxes from such payments, then (i) the sum payable shall be increased as
necessary so that after making all required deductions (including deductions applicable to
additional sums payable under this Section) the Managing Administrative Agent or affected Lender
(as the case may be) receives an amount equal to the sum it would have received had no such
deductions been made, (ii) the Borrower shall make such deductions and (iii) the Borrower shall pay
the full amount deducted to the relevant Governmental Authority in accordance with applicable law.




          (b) In addition, the Borrower shall pay any Other Taxes to the relevant Governmental Authority
in accordance with applicable law.




          (c) The Borrower shall indemnify the Managing Administrative Agent and each Lender, within 10
days after written demand therefor, for the full amount of any Indemnified Taxes or Other Taxes
paid by the Managing Administrative Agent or such Lender, as the case may be, on or with respect to
any payment by or on account of any obligation of the Borrower hereunder (including Indemnified
Taxes or Other Taxes imposed or asserted on or attributable to amounts payable under this


28









 







Section)
and any penalties, interest and reasonable expenses arising therefrom or with respect thereto,
whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted
by the relevant Governmental Authority. A certificate as to the amount of such payment or
liability delivered to the Borrower by a Lender, or by the Managing Administrative Agent on its own
behalf or on behalf of a Lender, shall be conclusive absent manifest error.




          (d) As soon as practicable after any payment of Indemnified Taxes or Other Taxes by the
Borrower to a Governmental Authority, the Borrower shall deliver to the Managing Administrative
Agent the original or a certified copy of a receipt issued by such Governmental Authority
evidencing such payment, a copy of the return reporting such payment or other evidence of such
payment reasonably satisfactory to the Managing Administrative Agent.




          (e) Any Foreign Lender that is entitled to an exemption from or reduction of withholding tax
under the law of the jurisdiction in which the Borrower is located, or any treaty to which such
jurisdiction is a party, with respect to payments under this Agreement shall deliver to the
Borrower (with a copy to the Managing Administrative Agent), at the time or times prescribed by
applicable law, such properly completed and executed documentation prescribed by applicable law or
reasonably requested by the Borrower as will permit such payments to be made without withholding or
at a reduced rate.




          (f) If the Managing Administrative Agent or a Lender determines, in its sole discretion, that
it has received a refund of any Taxes or Other Taxes as to which it has been indemnified by the
Borrower or with respect to which the Borrower has paid additional amounts pursuant to this Section
2.16, it shall pay over such refund to the Borrower (but only to the extent of indemnity payments
made, or additional amounts paid, by the Borrower under this Section 2.16 with respect to the Taxes
or Other Taxes giving rise to such refund), net of all out-of-pocket expenses of the Managing
Administrative Agent or such Lender and without interest (other than any interest paid by the
relevant Governmental Authority with respect to such refund); provided, that the Borrower, upon the
request of the Managing Administrative Agent or such Lender, agrees to repay the amount paid over
to the Borrower (plus any penalties, interest or other charges imposed by the relevant Governmental
Authority) to the Managing Administrative Agent or such Lender in the event the Managing
Administrative Agent or such Lender is required to repay such refund to such Governmental
Authority. This Section shall not be construed to require the Managing Administrative Agent or any
Lender to make available its tax returns (or any other information relating to its taxes which it
deems confidential) to the Borrower or any other Person.




          SECTION 2.17. Payments Generally; Pro Rata Treatment; Sharing of Set-offs. (a) The
Borrower shall make each payment required to be made by it hereunder (whether of principal,
interest, fees or of amounts payable under Section 2.14, 2.15 or 2.16, or otherwise) prior to 12:00
noon, New York City time, on the date when due, in immediately available funds, without set-off or
counterclaim. Any amounts received after such time on any date may, in the discretion of the
Managing Administrative Agent, be deemed to have been received on the next succeeding Business Day
for purposes of calculating interest thereon. All such payments shall be made to the Managing
Administrative Agent at its offices at 270 Park Avenue, New York, New York, except payments to be
made directly to Swingline Lenders as expressly provided herein and except that payments pursuant
to Sections 2.14, 2.15, 2.16 and 10.03 shall be made directly to the Persons entitled thereto. The
Managing Administrative Agent shall distribute any such payments received by it for the account of
any other Person to the appropriate recipient promptly following receipt thereof. Each payment
(including each prepayment) on account of principal of and interest on the Revolving Loans shall be
made pro rata according to the respective outstanding principal amounts of the
Revolving Loans then held by the Lenders. If any payment hereunder shall be due on a day that is
not a Business Day, the date for payment shall be extended to the next succeeding Business


29









 







Day,
and, in the case of any payment accruing interest, interest thereon shall be payable for the period
of such extension. All payments hereunder shall be made in Dollars.




          (b) If any Lender shall, by exercising any right of set-off or counterclaim or otherwise,
obtain payment in respect of any principal of or interest on any of its Revolving Loans or
Swingline Loans resulting in such Lender receiving payment of a greater proportion of the aggregate
amount of its Revolving Loans and Swingline Loans and accrued interest thereon than the proportion
received by any other Lender, then the Lender receiving such greater proportion shall purchase
(for cash at face value) participations in the Revolving Loans and participations in Swingline
Loans of other Lenders to the extent necessary so that the benefit of all such payments shall be
shared by the Lenders ratably in accordance with the aggregate amount of principal of and accrued
interest on their respective Revolving Loans and participations in Swingline Loans;
provided that (i) if any such participations are purchased and all or any portion of the
payment giving rise thereto is recovered, such participations shall be rescinded and the purchase
price restored to the extent of such recovery, without interest, and (ii) the provisions of this
paragraph shall not be construed to apply to any payment made by the Borrower pursuant to and in
accordance with the express terms of this Agreement or any payment obtained by a Lender as
consideration for the assignment of or sale of a participation in any of its Loans to any assignee
or participant, other than to the Borrower or any Subsidiary or Affiliate thereof (as to which the
provisions of this paragraph shall apply). The Borrower consents to the foregoing and agrees, to
the extent it may effectively do so under applicable law, that any Lender acquiring a participation
pursuant to the foregoing arrangements may exercise against the Borrower rights of set-off and
counterclaim with respect to such participation as fully as if such Lender were a direct creditor
of the Borrower in the amount of such participation.




          (c) Unless the Managing Administrative Agent shall have received notice from the Borrower
prior to the date on which any payment is due to the Managing Administrative Agent for the account
of the Lenders hereunder that the Borrower will not make such payment, the Managing Administrative
Agent may assume that the Borrower has made such payment on such date in accordance herewith and
may, in reliance upon such assumption, distribute to the Lenders the amount due. In such event, if
the Borrower has not in fact made such payment, then each of the Lenders severally agrees to repay
to the Managing Administrative Agent forthwith on demand the amount so distributed to such Lender
with interest thereon, for each day from and including the date such amount is distributed to it to
but excluding the date of payment to the Managing Administrative Agent, at the greater of the
Federal Funds Rate and a rate determined by the Managing Administrative Agent in accordance with
banking industry rules on interbank compensation.




          (d) If any Lender shall fail to make any payment required to be made by it pursuant to Section
2.05(c), 2.06(b) or 2.17(c), then the Managing Administrative Agent may, in its discretion
(notwithstanding any contrary provision hereof), apply any amounts thereafter received by the
Managing Administrative Agent for the account of such Lender to satisfy such Lender’s obligations
under such Sections until all such unsatisfied obligations are fully paid.




          SECTION 2.18. Mitigation Obligations; Replacement of Lenders. (a) If any Lender
requests compensation under Section 2.14, or if the Borrower is required to pay any additional
amount to any Lender or any Governmental Authority for the account of any Lender pursuant to
Section 2.16, then such Lender shall use reasonable efforts to designate a different lending office
for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to
another of its offices, branches or affiliates, if, in the judgment of such Lender, such
designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 2.14 or
2.16, as the case may be, in the future and (ii) would not subject such Lender to any unreimbursed
cost or expense and would not otherwise be


30









 







disadvantageous to such Lender. The Borrower hereby
agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such
designation or assignment.




          (b) If any Lender requests compensation under Section 2.14, or if the Borrower is required to
pay any additional amount to any Lender or any Governmental Authority for the account of any Lender
pursuant to Section 2.16, or if any Lender defaults in its obligation to fund Loans hereunder,
then the Borrower may, at its sole expense and effort, upon notice to such Lender and the
Managing Administrative Agent, require such Lender to assign and delegate, without recourse (in
accordance with and subject to the restrictions contained in Section 10.04), all its interests,
rights and obligations under this Agreement (other than any outstanding Competitive Loans held by
it) to an assignee that shall assume such obligations (which assignee may be another Lender, if a
Lender accepts such assignment); provided that (i) the Borrower shall have received the
prior written consent of the Managing Administrative Agent, which consent shall not unreasonably be
withheld, (ii) such Lender shall have received payment of an amount equal to the outstanding
principal of its Loans (other than Competitive Loans) and participations in Swingline Loans,
accrued interest thereon, accrued fees and all other amounts payable to it hereunder, from the
assignee (to the extent of such outstanding principal and accrued interest and fees) or the
Borrower (in the case of all other amounts) and (iii) in the case of any such assignment resulting
from a claim for compensation under Section 2.14 or payments required to be made pursuant to
Section 2.16, such assignment will result in a reduction in such compensation or payments. A
Lender shall not be required to make any such assignment and delegation if, prior thereto, as a
result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require
such assignment and delegation cease to apply.




          SECTION 2.19. Extension of Commitment Termination Date. (a) The Borrower may, by
written notice to the Managing Administrative Agent (such notice being an “Extension
Notice”) given no earlier than 60 days and no later than 45 days prior to the Commitment
Termination Date, request the Lenders to consider an extension of the then applicable Commitment
Termination Date to a date 364 days after the then applicable Commitment Termination Date. The
Managing Administrative Agent shall promptly transmit any Extension Notice to each Lender. Each
Lender shall notify the Managing Administrative Agent whether it wishes to extend the then
applicable Commitment Termination Date no later than 20 days prior to such Commitment Termination
Date, and any such notice given by a Lender to the Managing Administrative Agent, once given, shall
be irrevocable as to such Lender. Any Lender which does not expressly notify the Managing
Administrative Agent prior to such 20-day period that it wishes to so extend the then applicable
Commitment Termination Date shall be deemed to have rejected the Borrower’s request for extension
of such Commitment Termination Date. Lenders consenting to extend the then applicable Commitment
Termination Date are hereinafter referred to as “Extending Lenders”, and Lenders declining
to consent to extend such Commitment Termination Date (or Lenders deemed to have so declined) are
hereinafter referred to as “Non-Extending Lenders”. If the Required Lenders have elected
(in their sole and absolute discretion) to so extend the Commitment Termination Date, the Managing
Administrative Agent shall notify the Borrower of such election by such Required Lenders no later
than 15 days prior to such Commitment Termination Date, and upon receipt of such notice the
Borrower shall promptly inform the Managing Administrative Agent whether or not it wishes to extend
the Commitment Termination Date with respect to the Commitments of the Extending Lenders. In the
event that the Borrower elects to accept the Extending Lenders’ offer to extend the Commitment
Termination Date, the Commitment Termination Date of such Extending Lenders shall be so extended.
No extension will be permitted hereunder if the Borrower has selected the Term-Out Maturity Date
pursuant to Section 2.09(a). Upon the delivery of an Extension Notice and upon the extension of
the Commitment Termination Date pursuant to this Section 2.19, the Borrower shall be deemed to have
represented and warranted on and as of the date of such Extension Notice and the effective date of
such extension, as the case may be, that no Default or Event of Default has occurred and is
continuing. Notwithstanding anything contained in this Agreement to the contrary, no Lender shall
have any


31









 







obligation to extend the Commitment Termination Date, and each Lender may at its option,
unconditionally and without cause, decline to extend the Commitment Termination Date.




          (b) If the Commitment Termination Date shall have been extended in accordance with Section
2.19(a), all references herein to the “Commitment Termination Date” shall refer to the Commitment
Termination Date as so extended and all references herein to the “Term-Out Maturity Date” shall
refer to a date which is the first anniversary of the Commitment Termination Date as so extended.




          (c) If any Lender shall determine not to extend the Commitment Termination Date as requested
by any Extension Notice given by the Borrower pursuant to Section 2.19(a), the Commitment of such
Lender shall terminate on the Commitment Termination Date without giving any effect to such
proposed extension, and the Borrower shall on such date pay to the Managing Administrative Agent,
for the account of such Lender, the principal amount of, and accrued interest on, such Lender’s
Loans, together with any amounts payable to such Lender pursuant to Section 2.15 and any fees or
other amounts owing to such Lender under this Agreement. The Aggregate Commitment shall be reduced
by the amount of the Commitment of such Non-Extending Lender.




          (d) If the Commitment Termination Date shall have been extended in respect of Extending
Lenders in accordance with Section 2.19(a), any notice of borrowing pursuant to Section 2.03
specifying a Borrowing Date occurring after the Commitment Termination Date applicable to a
Non-Extending Lender or requesting an Interest Period extending beyond such date shall (a) have no
effect in respect of such Non-Extending Lender and (b) not specify a requested aggregate principal
amount exceeding the Aggregate Available Commitment (calculated on the basis of the Commitments of
the Extending Lenders).




ARTICLE III




Representations and Warranties




     Each of CFC and CHL represents and warrants to the Lenders that:



          SECTION 3.01. Organization; Powers. Each of CFC and its Material Subsidiaries is duly
organized, validly existing and in good standing under the laws of the jurisdiction of its
organization, has all requisite power and authority to carry on its business as now conducted and,
except where the failure to do so, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect, is qualified to do business in, and is in good
standing in, every jurisdiction where such qualification is required.




          SECTION 3.02. Authorization; Enforceability. The Transactions are within CFC’s and
CHL’s corporate powers and have been duly authorized by all necessary corporate and, if required,
stockholder action. This Agreement has been duly executed and delivered by each of CFC and CHL and
each of this Agreement and, when executed and delivered, each of the other Loan Documents
constitutes a legal, valid and binding obligation of each of CFC and CHL, enforceable in accordance
with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other
laws affecting creditors’ rights generally and subject to general principles of equity, regardless
of whether considered in a proceeding in equity or at law.




          SECTION 3.03. Governmental Approvals; No Conflicts. The Transactions (a) do not
require any consent or approval of, registration or filing with, or any other action by, any
Governmental Authority, except such as have been obtained or made and are in full force and effect,
(b) will not violate any applicable law or regulation or the charter, by-laws or
other organizational documents of CFC or any


32









 







of its Subsidiaries or any order of any
Governmental Authority, (c) will not violate or result in a default under any indenture, agreement
or other instrument binding upon CFC or any of its Subsidiaries or its assets, or give rise to a
right thereunder to require any payment to be made by CFC or any of its Subsidiaries, and (d) will
not result in the creation or imposition of any Lien on any asset of CFC or any of its
Subsidiaries.




          SECTION 3.04. Financial Condition; No Material Adverse Change. (a) CFC has
heretofore furnished to the Lenders its consolidated and consolidating balance sheet and statements
of income, stockholders equity and cash flows (i) as of and for the fiscal years ended December 31,
2004 and December 31, 2005, in the case of such consolidated statements, reported on by KPMG LLP,
independent public accountants, and (ii) as of and for the fiscal quarter and the portion of the
fiscal year ended March 31, 2006, certified by its chief financial officer. Such financial
statements present fairly, in all material respects, the financial condition and results of
operations and cash flows of CFC and its consolidated subsidiaries as of such dates and for such
periods in accordance with GAAP, subject to year-end adjustments and the absence of footnotes in
the case of the statements referred to in clause (ii) above.




          (b) Since December 31, 2005, there has been no material adverse change in the business,
assets, operations or condition, financial or otherwise, of CFC and its Subsidiaries, taken as a
whole.




          SECTION 3.05. Properties. (a) Each of CFC and its Subsidiaries has good title to, or
valid leasehold interests in, all its real and personal property material to its business, except
for minor defects in title that do not interfere with its ability to conduct its business as
currently conducted or to utilize such properties for their intended purposes. None of such
property is subject to any Lien except as permitted by Section 6.02.




          (b) Each of CFC and its Subsidiaries owns, or is licensed to use, all trademarks, tradenames,
copyrights, patents and other intellectual property material to its business, and the use thereof
by CFC and its Subsidiaries does not infringe upon the rights of any other Person, except for any
such infringements that, individually or in the aggregate, could not reasonably be expected to
result in a Material Adverse Effect.




          SECTION 3.06. Litigation and Environmental Matters. (a) There are no actions, suits,
investigations or proceedings by or before any arbitrator or Governmental Authority pending against
or, to the knowledge of CFC, threatened against or affecting CFC or any of its Subsidiaries which
(i) are reasonably likely, individually or in the aggregate, to result in a Material Adverse Effect
(other than the Disclosed Matters) or (ii) involve this Agreement, any of the other Loan Documents
or the Transactions.




          (b) Except for the Disclosed Matters and except with respect to any other matters that,
individually or in the aggregate, could not reasonably be expected to result in a Material Adverse
Effect, neither CFC nor any of its Subsidiaries (i) has failed to comply with any Environmental Law
or to obtain, maintain or comply with any permit, license or other approval required under any
Environmental Law, (ii) has become subject to any Environmental Liability, (iii) has received
notice of any claim with respect to any Environmental Liability or (iv) knows of any basis for any
Environmental Liability.




          (c) Since the date of this Agreement, there has been no change in the status of the Disclosed
Matters that, individually or in the aggregate, has resulted in, or materially increased the
likelihood of, a Material Adverse Effect.




33









 








          SECTION 3.07. Compliance with Laws and Agreements. Each of CFC and its Subsidiaries
is in compliance with all laws, regulations and orders of any Governmental Authority applicable to
it or its property and all indentures, agreements and other instruments binding upon it or its
property, except where the failure to do so, individually or in the aggregate, could not reasonably
be expected to result in a Material Adverse Effect. No Default or Event of Default has occurred
and is continuing.




          SECTION 3.08. Investment Company Status. Neither CFC nor any of its Subsidiaries is
an “investment company” as defined in, or subject to regulation under, the Investment Company Act
of 1940.




          SECTION 3.09. Taxes. Each of CFC and its Subsidiaries has timely filed or caused to
be filed all Tax returns and reports required to have been filed and has paid or caused to be paid
all Taxes required to have been paid by it, except (a) Taxes that are being contested in good faith
by appropriate proceedings and for which CFC or any such Subsidiary, as applicable, has set aside
on its books adequate reserves to the extent required by GAAP or (b) to the extent that the failure
to do so could not reasonably be expected to result in a Material Adverse Effect.




          SECTION 3.10. ERISA. No ERISA Event has occurred or is reasonably expected to occur
that, when taken together with all other such ERISA Events for which liability is reasonably
expected to occur, could reasonably be expected to result in a Material Adverse Effect. The
present value of all accumulated benefit obligations under each Plan (based on the assumptions used
for purposes of Statement of Financial Accounting Standards No. 87) did not, as of the date of the
most recent financial statements reflecting such amounts, exceed by more than $150,000,000 the fair
market value of the assets of such Plan, and the present value of all accumulated benefit
obligations of all underfunded Plans (based on the assumptions used for purposes of Statement of
Financial Accounting Standards No. 87) did not, as of the date of the most recent financial
statements reflecting such amounts, exceed by more than $150,000,000 the fair market value of the
assets of all such underfunded Plans.




          SECTION 3.11. Disclosure. Each of CFC and CHL has disclosed to the Lenders all
agreements, instruments and corporate or other restrictions to which it or any of its subsidiaries
is subject, and all other matters known to it, that, individually or in the aggregate, could
reasonably be expected to result in a Material Adverse Effect. Neither the Information Memorandum
nor any of the other reports, financial statements, certificates or other information furnished by
or on behalf of CFC or CHL to the Managing Administrative Agent or any Lender in connection with
the negotiation of this Agreement or delivered hereunder (as modified or supplemented by other
information so furnished) contains any material misstatement of fact or omits to state any material
fact necessary to make the statements therein, in the light of the circumstances under which they
were made, not misleading; provided that, with respect to
projected financial information, each of CFC and CHL represents only that such information was
prepared in good faith based upon assumptions believed to be reasonable at the time.




          SECTION 3.12. Federal Regulations. No part of the proceeds of any Loans will be used
for “buying” or “carrying” any “margin stock” within the respective meanings of each of the quoted
terms under Regulation U of the Board as now and from time to time hereafter in effect or for any
purpose that violates the provisions of the Regulations of the Board. If requested by any Lender
or the Managing Administrative Agent, CFC will furnish to the Managing Administrative Agent and
each Lender a statement to the foregoing effect in conformity with the requirements of FR Form G-3
or FR Form U-1, as applicable, referred to in Regulation U of the Board.




          SECTION 3.13. Subsidiaries. Except as disclosed to the Managing Administrative Agent
by CFC and CHL in writing from time to time after the Effective Date, (a) Schedule 3.13 sets forth


34









 







the name and jurisdiction of incorporation of each Material Subsidiary and, as to each such
Material Subsidiary, the percentage of each class of Equity Interests owned by the Borrower and (b)
there are no outstanding subscriptions, options, warrants, calls, rights or other agreements or
commitments (other than stock options granted to employees or directors and directors’ qualifying
shares) of any nature relating to any Equity Interests of the Borrower or any Material Subsidiary,
except as created by the Loan Documents.




ARTICLE IV




Conditions




          SECTION 4.01. Effective Date. The obligations of the Lenders to make Loans hereunder
shall not become effective until the date on which each of the following conditions is satisfied
(or waived in accordance with Section 10.02):





     (a) The Managing Administrative Agent (or its counsel) shall have received from each
party hereto either (i) a counterpart of this Agreement signed on behalf of such party or
(ii) written evidence satisfactory to the Managing Administrative Agent (which may include
telecopy transmission of a signed signature page of this Agreement) that such party has
signed a counterpart of this Agreement.




     (b) The Managing Administrative Agent shall have received a favorable written opinion
(addressed to the Managing Administrative Agent and the Lenders and dated the Effective
Date) of Susan E. Bow, Managing Director, General Counsel, Corporate and Securities, and
Corporate Secretary of CFC and CHL, substantially in the form of Exhibit C, and covering
such other matters relating to CFC, CHL, this Agreement, the other Loan Documents or the
Transactions as the Required Lenders shall reasonably request.




     (c) The Managing Administrative Agent shall have received a closing certificate in the
form of Exhibit A from each of CFC and CHL and such other documents and certificates as the
Managing Administrative Agent or its counsel may reasonably request relating to the
organization, existence and good standing of CFC and CHL, the authorization of the
Transactions and any other legal matters relating to CFC and CHL, this Agreement, the other
Loan Documents
or the Transactions, all in form and substance satisfactory to the Managing
Administrative Agent and its counsel.




     (d) The Managing Administrative Agent shall have received evidence satisfactory to it
that the Existing Credit Agreement and the commitments thereunder shall be terminated
concurrently with the effectiveness of this Agreement and all amounts thereunder (including
accrued interest and fees) shall be paid in full and that the Five-Year Credit Agreement is
effective.




     (e) The Managing Administrative Agent, the Administrative Agent and the Lenders shall
have received all fees and other amounts due and payable to such parties on or prior to the
Effective Date, including, to the extent invoiced, reimbursement or payment of all
out-of-pocket expenses required to be reimbursed or paid by the Borrower hereunder.


The Managing Administrative Agent shall notify the Borrower and the Lenders of the Effective Date,
and such notice shall be conclusive and binding. Notwithstanding the foregoing, the obligations of
the Lenders to make Loans hereunder shall not become effective unless each of the foregoing
conditions is satisfied (or waived pursuant to Section 10.02) at or prior to 3:00 p.m., New York
City time, on May 31,


35









 






2006 (and, in the event such conditions are not so satisfied or waived, the
Commitments shall terminate at such time).




          SECTION 4.02. Each Credit Event. The obligation of each Lender to make a Loan on the
occasion of any Borrowing is subject to the satisfaction of the following conditions:





     (a) The representations and warranties of the Borrower set forth in this Agreement
(other than the representations and warranties set forth in Sections 3.04(b) and 3.06(a) for
Borrowings after the Effective Date) shall be true and correct on and as of the date of such
Borrowing.




     (b) At the time of and immediately after giving effect to such Borrowing, no Default or
Event of Default shall have occurred and be continuing.


Each Borrowing shall be deemed to constitute a representation and warranty by the Borrower on the
date thereof as to the matters specified in paragraphs (a) and (b) of this Section.




ARTICLE V




Affirmative Covenants




          Until the Commitments have expired or been terminated and the principal of and interest on
each Loan and all fees payable hereunder shall have been paid in full, each of CFC and CHL
covenants and agrees with the Lenders that:




          SECTION 5.01. Financial Statements; Ratings Change and Other Information. CFC will
furnish to the Managing Administrative Agent and each Lender:




          (a) within 90 days after the end of each fiscal year of CFC,





     (i) the audited consolidated balance sheet and related statements of
operations, stockholders’ equity and cash flows of CFC and its subsidiaries
as of the end of and for such year, setting forth the figures as of the end
of and for the previous fiscal year in comparative form, which consolidated
financial statements shall be reported on by KPMG LLP or other independent
public accountants of recognized national standing (without a “going
concern” or like qualification or exception and without any qualification or
exception as to the scope of such audit) to the effect that such
consolidated financial statements present fairly in all material respects
the financial condition and results of operations of CFC and its
Subsidiaries on a consolidated basis in accordance with GAAP consistently
applied; and




     (ii) the unaudited consolidating balance sheet and related statement
of operations of CFC and its Subsidiaries as of the end of and for such
year, certified by one of its Financial Officers as presenting fairly in all
material respects the financial condition and results of operations of CFC
and its Subsidiaries on a consolidating basis in accordance with GAAP
consistently applied, subject to the absence of footnotes;




          (b) within 45 days after the end of each of the first three fiscal quarters of each
fiscal year of CFC,



36









 






     (i) the consolidated balance sheet and related statements of
operations, stockholders’ equity and cash flows of CFC and its Subsidiaries
as of the end of and for such fiscal quarter and the then elapsed portion of
the fiscal year, setting forth in the case of CFC and its Subsidiaries the
figures for the corresponding period or periods of (or, in the case of the
balance sheet, as of the end of) the previous fiscal year in comparative
form, all certified by one of its Financial Officers as presenting fairly in
all material respects the financial condition and results of operations of
CFC and its Subsidiaries on a consolidated basis in accordance with GAAP
consistently applied, subject to normal year-end audit adjustments and the
absence of footnotes; and




     (ii) the consolidating balance sheet and related statement of
operations of CFC and its Subsidiaries as of the end and for such fiscal
quarter and the then elapsed portion of the fiscal year, certified by one of
its Financial Officers as presenting fairly in all material respects the
financial condition and results of operations of CFC and its Subsidiaries on
a consolidating basis in accordance with GAAP consistently applied, subject
to normal year-end audit adjustments and the absence of footnotes;




     (c) concurrently with any delivery of financial statements under clause (a) or (b)
above, a certificate of a Financial Officer of CFC (i) certifying as to whether a Default or
Event of Default has occurred and, if a Default or Event of Default has occurred, specifying
the details thereof and any action taken or proposed to be taken with respect thereto, (ii)
setting forth the Consolidated Net Worth of each of CFC and CHL and the respective
requirements of Section 6.01 therefor and (iii) stating whether any change in GAAP or in the
application thereof has occurred since the date of the audited financial statements referred
to in Section 3.04 and, if any such change has occurred, specifying the effect of such
change on the financial statements accompanying such certificate;




     (d) promptly after the same become publicly available, copies of all periodic and
current reports filed on Forms 10-K, 10-Q and 8-K (or successor forms), all proxy statements
and all registration statements (other than those filed on Form S-8) filed by CFC or any
Subsidiary with the SEC, or with any national securities exchange, or distributed by CFC to
its shareholders generally, as the case may be;




     (e) promptly after Moody’s or S&P shall have announced a change in the rating
established or deemed to have been established for the Index Debt, written notice of such
rating change; and




     (f) promptly following any request therefor, such other information regarding the
operations, business affairs and financial condition of CFC or any of its Subsidiaries, or
compliance with the terms of this Agreement or any of the other Loan Documents, as the
Managing Administrative Agent or any Lender may reasonably request.


Any delivery required to be made pursuant to Section 5.01(a), (b) or (d) and any notice required to
be given pursuant to Section 5.02(b), (c) or (e) shall be deemed to have been made or given on the
date on which CFC posts such delivery, or posts a press release or SEC filing containing
the information required by such notice, on the Internet at the website of CFC or when
such delivery is posted on the SEC’s website on the Internet at www.sec.gov; provided that
with respect to any delivery required to be made pursuant to Section 5.01(a) or (b), CFC
shall have given notice (including electronic notice) of any such posting to the Lenders, which
notice shall include a link to the applicable website to which such posting


37









 






was made;
provided, further, that CFC shall deliver paper copies of any delivery
referred to in Section 5.01(a) or (b) to any Lender that requests CFC to deliver such
paper copies until notice to cease delivering such paper copies is given by such Lender.




          SECTION 5.02. Notices of Material Events. CFC will furnish to the Managing
Administrative Agent and each Lender prompt written notice of the following:




  (a) the occurrence of any Default or Event of Default;




  (b) the filing or commencement of any action, suit or proceeding by or before any
arbitrator or Governmental Authority against or affecting CFC, CHL or any Affiliate thereof
that, if adversely determined, could reasonably be expected to result in a Material Adverse
Effect;



  (c) the occurrence of any ERISA Event that, alone or together with any other ERISA
Events that have occurred, could reasonably be expected to result in liability of the
Borrower and its subsidiaries in an aggregate amount exceeding $100,000,000;



  (d) notice from any rating agency concerning a negative change in any credit rating
previously accorded CFC or CHL by such rating agency or informing CFC or CHL that it has
been placed on negative credit watch; and



  
(e) any other development that results in, or could reasonably be expected to result
in, a Material Adverse Effect.


Each notice delivered under this Section shall set forth the details of the event or development
requiring such notice and any action taken or proposed to be taken with respect thereto.




          SECTION 5.03. Existence; Conduct of Business. CFC will, and will cause each of its
Material Subsidiaries to, do or cause to be done all things necessary to preserve, renew and keep
in full force and effect its legal existence and the rights, licenses, permits, privileges and
franchises material to the conduct of its business; provided that the foregoing shall not
prohibit any merger, consolidation, liquidation or dissolution permitted under Section 6.03.




          SECTION 5.04. Payment of Obligations. CFC will, and will cause each of its
Subsidiaries to, pay its obligations, including Tax liabilities, that, if not paid, could result in
a Material Adverse Effect before the same shall become delinquent or in default, except where (a)
the validity or amount thereof is being contested in good faith by appropriate proceedings, (b) CFC
or such subsidiary has set aside on its books adequate reserves with respect thereto in accordance
with GAAP and (c) the failure to make payment pending such contest could not reasonably be expected
to result in a Material Adverse Effect.




          SECTION 5.05. Maintenance of Properties; Insurance. CFC will, and will cause each of
its Subsidiaries to, (a) keep and maintain all property material to the conduct of its business in
good working order and condition, ordinary wear and tear excepted, and (b) maintain, with
financially sound and reputable insurance companies, insurance in such amounts and against such
risks as are customarily maintained by companies engaged in the same or similar businesses
operating in the same or similar locations.




          SECTION 5.06. Hedging Program. CFC will maintain at all times a Hedging Program for
CFC and its Subsidiaries consistent with their Hedging Program in effect at and as of the Effective


38









 







Date with such changes thereto as CFC reasonably deems appropriate for the conduct of its ongoing
business.




          SECTION 5.07. Books and Records; Inspection Rights. CFC will, and will cause each of
its Subsidiaries to, keep proper books of record and account in which full, true and correct
entries are made of all dealings and transactions in relation to its business and activities. CFC
will, and will cause each of its Subsidiaries to, permit any representatives designated by the
Managing Administrative Agent or any Lender, upon reasonable prior notice, to visit and inspect its
properties, to examine and make extracts from its books and records, and to discuss its affairs,
finances and condition with its officers and independent accountants, all at such reasonable times
and as often as reasonably requested.




          SECTION 5.08. Compliance with Laws and Contractual Obligations. CFC will, and will
cause each of its Subsidiaries to, comply with all Contractual Obligations and all laws, rules,
regulations and orders of any Governmental Authority applicable to it or its property, except where
the failure to do so, individually or in the aggregate, could not reasonably be expected to result
in a Material Adverse Effect.




          SECTION 5.09. Environmental Laws. CFC will, and will cause each of its Subsidiaries
to:




          (a) Comply in all material respects with, and ensure compliance in all material respects by
all tenants and subtenants, if any, with, all applicable Environmental Laws, and obtain and comply
in all material respects with and maintain, and ensure that all tenants and subtenants obtain and
comply in all material respects with and maintain, any and all licenses, approvals, notifications,
registrations or permits required by applicable Environmental Laws; and




          (b) Conduct and complete all investigations, studies, sampling and testing, and all remedial,
removal and other actions required under Environmental Laws and promptly comply in all material
respects with all lawful orders and directives of all Governmental Authorities regarding
Environmental Laws.




          SECTION 5.10. Use of Proceeds. The proceeds of the Loans will be used only for
general corporate purposes. No part of the proceeds of any Loan will be used, whether directly or
indirectly, for any purpose that entails a violation of any of the Regulations of the Board,
including Regulations T, U and X.




          SECTION 5.11. Compliance with Regulatory Requirements. CFC will, and will cause each
of its Subsidiaries which is a regulated bank to, comply with all minimum capital ratios and
guidelines, including, without limitation, risk-based capital guidelines and capital leverage
regulations (as may from time to time be prescribed, by regulation or enforceable order of the
Board, the OCC or other federal or state regulatory authorities having jurisdiction over such
Person), and within such ratios and guidelines be “well-capitalized”. CFC will cause each of its
Subsidiaries which is a registered broker-dealer to comply with all material rules and regulations
of the SEC, the New York Stock Exchange and the National Association of Securities Dealers
applicable to it (including such rules and regulations dealing with net capital requirements).




39









 








ARTICLE VI




Financial and Negative Covenants




     Until the Commitments have expired or terminated and the principal of and interest on each
Loan and all fees payable hereunder have been paid in full, each of CFC and CHL, as applicable,
covenants and agrees with the Lenders that:




     SECTION 6.01. Financial Condition Covenants. (a) CFC will not have a Consolidated
Net Worth at any time of less than $7,680,000,000 and (b) CHL will not have a Consolidated Net
Worth at any time of less than $2,400,000,000.




     SECTION 6.02. Liens. CFC and CHL will not, and will not permit any of their
respective subsidiaries to, create, incur, assume or permit to exist any Lien on any property or
asset now owned or hereafter acquired by it, or assign or sell any income or revenues (including
accounts receivable) or rights in respect of any thereof, except:




     (a) Permitted Encumbrances;



     
(b) Specified MSR Liens; and



     
(c) Liens not otherwise permitted by this Section which are incurred by CFC and its
Subsidiaries in the ordinary course of their hedging, financing and securitization
activities (including Liens incurred in connection with any type of hedging, financing or
securitization transaction undertaken in the ordinary course which reflects or represents an
evolution or extension of the practices conducted on the date hereof by entities similar to
CFC and its Subsidiaries);


provided that in no event shall any Lien permitted pursuant to paragraph (a) or (c) above
(other than Permitted Encumbrances described in clauses (a), (b) or (e) of the definition thereof)
encumber mortgage servicing rights, intercompany advances or stock and other equity interests
issued by Subsidiaries of CFC.




     SECTION 6.03. Fundamental Changes. (a) CFC will not, and will not permit any of its
Subsidiaries to, merge into or consolidate with any other Person, or permit any other Person to
merge into or consolidate with it, or sell, transfer, lease or otherwise dispose of (in one
transaction or in a series of transactions) all or substantially all of its assets, or all or
substantially all of the stock of any of its Subsidiaries (in each case, whether now owned or
hereafter acquired), or liquidate or dissolve, except that, if at the time thereof and immediately
after giving effect thereto no Default or Event of Default shall have occurred and be continuing
(i) any Subsidiary may merge into CFC or CHL in a transaction in which CFC or CHL, as applicable,
is the surviving corporation, (ii) any subsidiary of CFC or CHL may merge into any other subsidiary
of CFC or CHL in a transaction in which the surviving entity is a Subsidiary, (iii) any Subsidiary
may sell, transfer, lease or otherwise dispose of its assets to CFC, CHL or to a Subsidiary, (iv)
any Subsidiary may sell, transfer, lease or otherwise dispose of its assets through transactions
which are undertaken in the ordinary course of its business or determined by CFC in good faith to
be in the best interests of CFC and its Subsidiaries, (v) any Subsidiary (other than CHL) may
liquidate or dissolve if CFC determines in good faith that such liquidation or dissolution is in
the best interests of CFC and its Subsidiaries and is not materially disadvantageous to the Lenders
and (vi) CFC or any Subsidiary may merge with a Person that is not a wholly-owned Subsidiary
immediately prior to such merger if (A) permitted by Section 6.04 and (B) in the case of any merger
involving CFC or CHL, CFC or CHL, as applicable, is the surviving corporation.




40









 








          (b) CFC will not, and will not permit any of its Subsidiaries to, engage to any material
extent in any business other than businesses of the type conducted by CFC and its Subsidiaries on
the date of execution of this Agreement and businesses reasonably related thereto.




          SECTION 6.04. Acquisitions. CFC will not, and will not permit any of its Subsidiaries
to, purchase, hold or acquire (including pursuant to any merger with any Person that was not a
wholly-owned Subsidiary prior to such merger) all or a majority of the Equity Interests or voting
Equity Interests of any Person that was not a wholly-owned subsidiary prior thereto, or purchase or
otherwise acquire (in one transaction or a series of transactions) all or substantially all of the
assets of any such Person or all or substantially all of the assets of any such Person constituting
a business unit, unless at the time thereof and immediately after giving effect thereto, no Default
or Event of Default shall have occurred and be continuing.




          SECTION 6.05. Restricted Payments. CFC will not, and will not permit any of its Subsidiaries to, declare or make, or agree to
pay or make, directly or indirectly, any Restricted Payment if at the date of the declaration
thereof (either before or immediately after giving effect thereto and to the payment thereof) a
Default or Event of Default shall have occurred and be continuing, except (a) CFC may declare and
pay dividends with respect to its Equity Interests payable solely in additional shares of its
common stock and (b) Subsidiaries may declare and pay dividends to CFC or another wholly-owned
Subsidiary of CFC.




          SECTION 6.06. Indebtedness. CFC will not permit any of its Subsidiaries (other than
CHL and Countrywide Bank, N.A.) which owns mortgage servicing rights to create, issue, incur,
assume, become liable in respect of or suffer to exist Indebtedness (other than Indebtedness owed
to any other Subsidiary) which, together with Indebtedness (other than Indebtedness owed to any
other Subsidiary) of all other such subsidiaries owning mortgage servicing rights, exceeds
$100,000,000 in aggregate principal amount.




ARTICLE VII




Events of Default




          If any of the following events (“Events of Default”) shall occur and be continuing:





          (a) the Borrower shall fail to pay any principal of any Loan when and as the same shall
become due and payable, whether at the due date thereof or at a date fixed for prepayment
thereof (including as may result from a notice given pursuant to Section 2.08(d)) or
otherwise;




          (b) the Borrower shall fail to pay any interest on any Loan or any fee or any other
amount (other than an amount referred to in clause (a) of this Article) payable under this
Agreement or any of the other Loan Documents, when and as the same shall become due and
payable, and such failure shall continue unremedied until the later of (i) three Business
Days of the date when due and (ii) one Business Day after the receipt of notice from the
Managing Administrative Agent, the Administrative Agent or any Lender;




          (c) any representation or warranty made or deemed made by or on behalf of CFC, CHL or
any of their respective subsidiaries in or in connection with this Agreement or any other
Loan Document or any amendment or modification hereof or thereof or waiver hereunder or
thereunder, or in any report, certificate, financial statement or other document furnished
pursuant to or in connection with this Agreement or any other Loan Document or any amendment
or



41









 







modification hereof or thereof or waiver hereunder or thereunder, shall prove to have
been inaccurate in any material respect on or as of the date made or deemed made or
furnished;




     (d) CFC or CHL shall fail to observe or perform any covenant, condition or agreement
contained in Section 5.02, 5.03 (with respect to the Borrower’s existence), 5.10 or 5.11 or
in Article VI;




     (e) CFC or CHL shall fail to observe or perform any covenant, condition or agreement
contained in this Agreement or any other Loan Document (other than those specified in clause
(a), (b) or (d) of this Article), and such failure shall continue unremedied for a period of
30 days after notice thereof from the Managing Administrative Agent to the Borrower (which
notice will be given at the request of any Lender);




     (f) CFC or any of its Subsidiaries shall (i) default in making any payment of any
principal of any Material Indebtedness (including any Guarantee Obligation, but excluding
the Loans) on the scheduled or original due date with respect thereto; or (ii) default in
(x) making any payment of any interest on any Material Indebtedness beyond the period of
grace, if any, provided in the instrument or agreement under which such Material
Indebtedness was created or (y) the observance or performance of any other agreement or
condition relating to any Material Indebtedness or contained in any instrument or agreement
evidencing, securing or relating thereto, or any other event shall occur or condition exist,
the effect of which default or other event or condition under this clause (ii) is (A) to
cause such Material Indebtedness to become due prior to its stated maturity or (in the case
of any such Indebtedness constituting a Guarantee Obligation) to become payable and remain
unpaid or (B) to permit, and to have continuously permitted during a period of at least 30
days, the holder or beneficiary of such Material Indebtedness (or a trustee or agent on
behalf of such holder or beneficiary) to cause, with the giving of notice if required, such
Material Indebtedness to become due prior to its stated maturity or (in the case of any such
Material Indebtedness constituting a Guarantee Obligation) to become payable and remain
unpaid; provided, that this clause (f) shall not apply to secured Material
Indebtedness that becomes due as a result of the voluntary sale or transfer of the property
or assets securing such Material Indebtedness; provided, further, that for
purposes of this paragraph (f), Material Indebtedness in respect of Hedge and Repo
Transactions shall be deemed to consist of the Aggregate Deficit Amount;




     (g) an involuntary proceeding shall be commenced or an involuntary petition shall be
filed seeking (i) liquidation, reorganization or other relief in respect of CFC, CHL or any
of the Material Subsidiaries or its debts, or of a substantial part of its assets, under any
Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or
hereafter in effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator,
conservator or similar official for CFC, CHL or any of the Material Subsidiaries or for a
substantial part of its assets, and, in any such case, such proceeding or petition shall
continue undismissed for 60 days or an order or decree approving or ordering any of the
foregoing shall be entered;




     (h) CFC, CHL or any of the Material Subsidiaries shall (i) voluntarily commence any
proceeding or file any petition seeking liquidation, reorganization or other relief under
any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or
hereafter in effect, (ii) consent to the institution of, or fail to contest in a timely and
appropriate manner, any proceeding or petition described in clause (h) of this Article,
(iii) apply for or consent to the appointment of a receiver, trustee, custodian,
sequestrator, conservator or similar official for it or for a substantial part of its
assets, (iv) file an answer admitting the material allegations of a



42









 







petition filed against
it in any such proceeding, (v) make a general assignment for the benefit of creditors or
(vi) take any action for the purpose of effecting any of the foregoing;




     (i) CFC or any of its Subsidiaries shall become unable, admit in writing its inability
or fail generally to pay its debts as they become due;




     (j) one or more judgments for the payment of money in an aggregate amount in excess of
$100,000,000 and not fully covered by insurance shall be rendered against CFC or any of its
Subsidiaries or any combination thereof and the same shall remain undischarged for a period
of 60 consecutive days during which execution shall not be effectively stayed, or any action
shall be legally taken by a judgment creditor to attach or levy upon any assets of CFC or
any of its Subsidiaries to enforce any such judgment;




     (k) an ERISA Event shall have occurred that, in the opinion of the Required Lenders,
when taken together with all other ERISA Events that have occurred, could reasonably be
expected to result in a Material Adverse Effect;




     (l) the guarantee contained in Article VIII of this Agreement shall cease, for any
reason, to be in full force and effect or CFC or CHL or any Affiliate of CFC or CHL shall so
assert; or




     (m) CFC shall cease to own 100% of the outstanding Equity Interests of CHL;



then, and in every such event (other than an event with respect to CFC or CHL described in clause
(g) or (h) of this Article), and at any time thereafter during the continuance of such event, the
Managing Administrative Agent may, and at the request of the Required Lenders shall, by notice to
the Borrower, take either or both of the following actions, at the same or different times: (i)
terminate the Commitments, and thereupon the Commitments shall terminate immediately, and (ii)
declare the Loans then outstanding to be due and payable in whole (or in part, in which case any
principal not so declared to be due and payable may thereafter be declared to be due and payable),
and thereupon the principal of the Loans so declared to be due and payable, together with accrued
interest thereon and all fees and other obligations of the Borrower accrued hereunder, shall become
due and payable immediately, without presentment, demand, protest or other notice of any kind, all
of which are hereby waived by the Borrower; and in case of any event with respect to CFC or CHL
described in clause (g) or (h) of this Article, the Commitments shall automatically terminate and
the principal of the Loans then outstanding, together with accrued interest thereon and all fees
and other obligations of the Borrower accrued hereunder, shall automatically become due and
payable, without presentment, demand, protest or other notice of any kind, all of which are hereby
waived by the Borrower.




ARTICLE VIII




Guarantee




          SECTION 8.01. Guarantee. (a) Each of CFC and CHL (each, a “Guarantor”)
hereby unconditionally and irrevocably guarantees to the Managing Administrative Agent, for the
ratable benefit of the Lenders and their respective successors, indorsees, transferees and assigns,
the prompt and complete payment and performance by the other when due (whether at the stated
maturity, by acceleration or otherwise) of the Obligations of the other hereunder (with respect to
such Guarantor, the “Borrower Obligations”).




43









 









          (b) Anything herein or in any other Loan Document to the contrary notwithstanding, the maximum
liability of each Guarantor hereunder and under the other Loan Documents shall in no event exceed
the amount which can be guaranteed by such Guarantor under applicable federal and state laws
relating to the insolvency of debtors (after giving effect to the right of contribution established
in Section 8.02).




          (c) Each Guarantor agrees that the Borrower Obligations may at any time and from time to time
exceed the amount of the liability of such Guarantor hereunder without impairing the guarantee
contained in this Article VIII or affecting the rights and remedies of the Managing Administrative
Agent or any Lender hereunder.




          (d) The guarantee contained in this Article VIII shall remain in full force and effect until,
subject to reinstatement pursuant to Section 8.05, all the Borrower Obligations and the obligations
of each Guarantor under the guarantee contained in this Article VIII shall have been satisfied
by payment in full and the Commitments shall be terminated, notwithstanding that from time to time
during the term of this Agreement the Borrower may be free from any Borrower Obligations.




          (e) No payment made by the Borrower, a Guarantor, any other guarantor or any other Person or
received or collected by the Managing Administrative Agent or any Lender from the Borrower, a
Guarantor, any other guarantor or any other Person by virtue of any action or proceeding or any
set-off or appropriation or application at any time or from time to time in reduction of or in
payment of the Borrower Obligations shall be deemed to modify, reduce, release or otherwise affect
the liability of the relevant Guarantor hereunder which shall, notwithstanding any such payment
(other than any payment made by such Guarantor in respect of the Borrower Obligations or any
payment received or collected from such Guarantor in respect of the Borrower Obligations), remain
liable for the Borrower Obligations up to the maximum liability of such Guarantor hereunder until,
subject to reinstatement pursuant to Section 8.05, the Borrower Obligations are paid in full and
the Commitments are terminated.




          SECTION 8.02. No Subrogation. Notwithstanding any payment made by a Guarantor
hereunder or any set-off or application of funds of such Guarantor by the Managing Administrative
Agent or any Lender, such Guarantor shall not be entitled to be subrogated to any of the rights of
the Managing Administrative Agent or any Lender against the Borrower or any guarantee or right of
offset held by the Managing Administrative Agent or any Lender for the payment of the Borrower
Obligations, nor shall such Guarantor seek or be entitled to seek any contribution or reimbursement
from the Borrower in respect of payments made by such Guarantor hereunder, until all amounts owing
to the Managing Administrative Agent and the Lenders on account of the Borrower Obligations are
indefeasibly paid in full and the Commitments are terminated. If any amount shall be paid to such
Guarantor on account of such subrogation rights at any time when all of the Borrower Obligations
shall not have been indefeasibly paid in full, such amount shall be held by such Guarantor in trust
for the Managing Administrative Agent and the Lenders, segregated from other funds of such
Guarantor, and shall, forthwith upon receipt by such Guarantor, be turned over to the Managing
Administrative Agent in the exact form received by such Guarantor (duly indorsed by such Guarantor
to the Managing Administrative Agent, if required), to be applied against the Borrower Obligations,
whether matured or unmatured, in such order as the Managing Administrative Agent may determine.




          SECTION 8.03. Amendments, etc. with respect to the Borrower Obligations. Each
Guarantor shall remain obligated hereunder notwithstanding that, without any reservation of rights
against it and without notice to or further assent by it, any demand for payment of any of the
Borrower Obligations made by the Managing Administrative Agent or any Lender may be rescinded by
the Managing Administrative Agent or such Lender and any of the Borrower Obligations continued, and
the Borrower Obligations, or the liability of any other Person upon or for any part thereof, or any
guarantee


44








 







therefor or right of offset with respect thereto, may, from time to time, in whole or in
part, be renewed, extended, amended, modified, accelerated, compromised, waived, surrendered or
released by the Managing Administrative Agent or any Lender, and this Agreement and the other Loan
Documents and any other documents executed and delivered in connection therewith may be amended,
modified, supplemented or terminated, in whole or in part, as the Managing Administrative Agent (or
the Required Lenders or all Lenders, as the case may be) may deem advisable from time to time, and
any guarantee or right of offset at any time held by the Managing Administrative Agent or any
Lender for the payment of the Borrower Obligations may be sold, exchanged, waived, surrendered or
released.




          SECTION 8.04. Guarantee Absolute and Unconditional. Each Guarantor waives any and all notice of the creation, renewal, extension or accrual of
any of the Borrower Obligations and notice of or proof of reliance by the Managing Administrative
Agent or any Lender upon the guarantee contained in this Article VIII or acceptance of the
guarantee contained in this Article VIII; the Borrower Obligations, and any of them, shall
conclusively be deemed to have been created, contracted or incurred, or renewed, extended, amended
or waived, in reliance upon the guarantee contained in this Article VIII; and all dealings between
such Guarantor and the Borrower, on the one hand, and the Managing Administrative Agent and the
Lenders, on the other hand, likewise shall be conclusively presumed to have been had or consummated
in reliance upon the guarantee contained in this Article VIII. Each Guarantor waives diligence,
presentment, protest, demand for payment and notice of default or nonpayment to or upon the
Borrower or such Guarantor with respect to the Borrower Obligations. Each Guarantor understands
and agrees that the guarantee contained in this Article VIII shall be construed as a continuing,
absolute and unconditional guarantee of payment without regard to (a) the validity or
enforceability of this Agreement or any other Loan Document, any of the Borrower Obligations or any
other collateral security therefor or guarantee or right of offset with respect thereto at any time
or from time to time held by the Managing Administrative Agent or any Lender, (b) any defense,
set-off or counterclaim (other than a defense of payment or performance) which may at any time be
available to or be asserted by the Borrower or any other Person against the Managing Administrative
Agent or any Lender, (c) any change in the corporate existence, structure or ownership of the
Borrower, or any insolvency, bankruptcy, reorganization or other similar proceeding affecting the
Borrower or its assets or any resulting release or discharge of any Obligation, (d) any law,
regulation or order of any jurisdiction, or any other event, affecting any term of any Obligation
or any Lender’s rights with respect thereto or (e) any other circumstance whatsoever (with or
without notice to or knowledge of it) which constitutes, or might be construed to constitute, an
equitable or legal discharge of the Borrower for the Borrower Obligations, or of such Guarantor
under the guarantee contained in this Article VIII, in bankruptcy or in any other instance. When
making any demand hereunder or otherwise pursuing its rights and remedies hereunder against a
Guarantor, the Managing Administrative Agent or any Lender may, but shall be under no obligation
to, make a similar demand on or otherwise pursue such rights and remedies as it may have against
any other Person or against any other guarantee for the Borrower Obligations or any right of offset
with respect thereto, and any failure by the Managing Administrative Agent or any Lender to make
any such demand, to pursue such other rights or remedies or to collect any payments from any other
Person or to realize upon any such guarantee or to exercise any such right of offset, or any
release of any other Person or any such guarantee or right of offset, shall not relieve such
Guarantor of any obligation or liability hereunder, and shall not impair or affect the rights and
remedies, whether express, implied or available as a matter of law, of the Managing Administrative
Agent or any Lender against such Guarantor. For the purposes hereof “demand” shall include the
commencement and continuance of any legal proceedings.




          SECTION 8.05. Reinstatement. The guarantee contained in this Article VIII shall
continue to be effective, or be reinstated, as the case may be, if at any time payment, or any part
thereof, of any of the Borrower Obligations is rescinded or must otherwise be restored or returned
by the Managing Administrative Agent or any Lender upon the insolvency, bankruptcy, dissolution,
liquidation


45









 







or reorganization of the Borrower, or upon or as a result of the appointment of a
receiver, intervenor or conservator of, or trustee or similar officer for, the Borrower or any
substantial part of its property, or otherwise, all as though such payments had not been made.




          SECTION 8.06. Payments. Each Guarantor hereby guarantees that payments hereunder will be paid to the Managing
Administrative Agent without set-off or counterclaim in Dollars at the office of the Managing
Administrative Agent specified in Section 2.17.




          SECTION 8.07. Independent Obligations. The obligations of a Guarantor under the
guarantee contained in this Article VIII are independent of the obligations of the Borrower, and a
separate action or actions may be brought and prosecuted against such Guarantor whether or not the
Borrower is joined in any such action or actions. Each Guarantor waives, to the fullest extent
permitted by law, the benefit of any statute of limitations affecting its liability hereunder or
the enforcement thereof.




ARTICLE IX




The Agents




          SECTION 9.01. Appointment. Each Lender hereby irrevocably designates and appoints the
Managing Administrative Agent as the agent of such Lender under this Agreement and the other Loan
Documents, and each Lender irrevocably authorizes the Managing Administrative Agent, in such
capacity, to take such action on its behalf under the provisions of this Agreement and the other
Loan Documents and to exercise such powers and perform such duties as are expressly delegated to
the Managing Administrative Agent by the terms of this Agreement and the other Loan Documents,
together with such other powers as are reasonably incidental thereto. Notwithstanding any
provision to the contrary elsewhere in this Agreement, the Managing Administrative Agent shall not
have any duties or responsibilities, except those expressly set forth herein, or any fiduciary
relationship with any Lender, and no implied covenants, functions, responsibilities, duties,
obligations or liabilities shall be read into this Agreement or any other Loan Document or
otherwise exist against the Managing Administrative Agent.




          SECTION 9.02. Delegation of Duties. The Managing Administrative Agent may execute any
of its duties under this Agreement and the other Loan Documents by or through agents or
attorneys-in-fact and shall be entitled to advice of counsel concerning all matters pertaining to
such duties. The Managing Administrative Agent shall not be responsible for the negligence or
misconduct of any agents or attorneys-in-fact selected by it with reasonable care.




          SECTION 9.03. Exculpatory Provisions. Neither any Agent nor any of its respective
officers, directors, employees, agents, attorneys-in-fact or affiliates shall be (i) liable for any
action lawfully taken or omitted to be taken by it or such Person under or in connection with this
Agreement or any other Loan Document (except to the extent that any of the foregoing are found by a
final and nonappealable decision of a court of competent jurisdiction to have resulted from its or
such Person’s own gross negligence or willful misconduct) or (ii) responsible in any manner to any
of the Lenders for any recitals, statements, representations or warranties made by any of CFC or
its Subsidiaries or any officer thereof contained in this Agreement or any other Loan Document or
in any certificate, report, statement or other document referred to or provided for in, or received
by the Agents under or in connection with, this Agreement or any other Loan Document or for the
value, validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any
other Loan Document or for any failure of any of CFC or its Subsidiaries to perform its obligations
hereunder or thereunder. The Agents shall not be under any obligation to any Lender to
ascertain or to inquire as to the observance or performance of any of the agreements contained in,
or conditions of, this Agreement or any other Loan Document, or to inspect the properties, books or
records of any of CFC or its Subsidiaries.




46









 








          SECTION 9.04. Reliance by Managing Administrative Agent. The Managing Administrative
Agent shall be entitled to rely, and shall be fully protected in relying, upon any instrument,
writing, resolution, notice, consent, certificate, affidavit, letter, telecopy, telex or teletype
message, statement, order or other document or conversation believed by it to be genuine and
correct and to have been signed, sent or made by the proper Person or Persons and upon advice and
statements of legal counsel (including counsel to the Borrower), independent accountants and other
experts selected by the Managing Administrative Agent. The Managing Administrative Agent may deem
and treat the payee of any Note as the owner thereof for all purposes unless a written notice of
assignment, negotiation or transfer thereof shall have been filed with the Managing Administrative
Agent. The Managing Administrative Agent shall be fully justified in failing or refusing to take
any action under this Agreement or any other Loan Document unless it shall first receive such
advice or concurrence of the Required Lenders (or, if so specified by this Agreement, all Lenders)
as it deems appropriate or it shall first be indemnified to its satisfaction by the Lenders against
any and all liability and expense that may be incurred by it by reason of taking or continuing to
take any such action (other than any liability or expense which is found by a final and
nonappealable decision of a court of competent jurisdiction to have resulted from its gross
negligence or willful misconduct). The Managing Administrative Agent shall in all cases be fully
protected in acting, or in refraining from acting, under this Agreement and the other Loan
Documents in accordance with a request of the Required Lenders (or, if so specified by this
Agreement, all Lenders), and such request and any action taken or failure to act pursuant thereto
shall be binding upon all the Lenders and all future holders of the Loans.




          SECTION 9.05. Notice of Default. The Managing Administrative Agent shall not be
deemed to have knowledge or notice of the occurrence of any Default or Event of Default unless the
Managing Administrative Agent has received notice from a Lender or the Borrower referring to this
Agreement, describing such Default or Event of Default and stating that such notice is a “notice of
default”. In the event that the Managing Administrative Agent receives such a notice, the Managing
Administrative Agent shall give notice thereof to the Lenders. The Managing Administrative Agent
shall take such action with respect to such Default or Event of Default as shall be reasonably
directed by the Required Lenders (or, if so specified by this Agreement, all Lenders);
provided that unless and until the Managing Administrative Agent shall have received such
directions, the Managing Administrative Agent may (but shall not be obligated to) take such action,
or refrain from taking such action, with respect to such Default or Event of Default as it shall
deem advisable in the best interests of the Lenders.




          SECTION 9.06. Non-Reliance on Agents and Other Lenders. Each Lender expressly
acknowledges that neither the Agents nor any of their respective officers, directors, employees,
agents, attorneys-in-fact or affiliates has made any representations or warranties to it and that
no act by any Agent hereafter taken, including any review of the affairs of CFC or its Subsidiaries
or any affiliate of CFC or its Subsidiaries, shall be deemed to constitute any representation or
warranty by any Agent to any Lender. Each Lender represents to the Agents that it has,
independently and without reliance upon any Agent or any other Lender, and based on such documents
and information as it has deemed appropriate, made its own appraisal of and investigation into the
business, operations, property, financial and other condition and creditworthiness of CFC or its
Subsidiaries and their affiliates and made its own decision to make its Loans hereunder and
enter into this Agreement. Each Lender also represents that it will, independently and without
reliance upon any Agent or any other Lender, and based on such documents and information as it
shall deem appropriate at the time, continue to make its own credit analysis, appraisals and
decisions in taking or not taking action under this Agreement and the other Loan Documents, and to
make such investigation as it deems necessary to inform itself as to the business, operations,
property, financial and other condition and creditworthiness of CFC and its Subsidiaries and the
affiliates of CFC and its Subsidiaries. Except for notices, reports and other documents expressly
required to be furnished to the Lenders by the Managing Administrative Agent hereunder, the
Managing Administrative Agent shall not have any duty or responsibility to provide any Lender with
any credit or other information concerning the


47









 







business, operations, property, condition (financial
or otherwise), prospects or creditworthiness of CFC and its Subsidiaries or any affiliate of CFC
and its Subsidiaries that may come into the possession of the Managing Administrative Agent or any
of its officers, directors, employees, agents, attorneys-in-fact or affiliates.




          SECTION 9.07. Indemnification. The Lenders agree to indemnify each Agent in its
capacity as such (to the extent not reimbursed by the Borrower and without limiting the obligation
of the Borrower to do so), ratably according to their respective Aggregate Exposure Percentages in
effect on the date on which indemnification is sought under this Section (or, if indemnification is
sought after the date upon which the Commitments shall have terminated and the Loans shall have
been paid in full, ratably in accordance with such Aggregate Exposure Percentages immediately prior
to such date), from and against any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind whatsoever that may at any
time (whether before or after the payment of the Loans) be imposed on, incurred by or asserted
against such Agent in any way relating to or arising out of, the Commitments, this Agreement, any
of the other Loan Documents or any documents contemplated by or referred to herein or therein or
the transactions contemplated hereby or thereby or any action taken or omitted by such Agent under
or in connection with any of the foregoing; provided that no Lender shall be liable for the
payment of any portion of such liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements that are found by a final and nonappealable
decision of a court of competent jurisdiction to have resulted from such Agent’s gross negligence
or willful misconduct. The agreements in this Section shall survive the payment of the Loans and
all other amounts payable hereunder.




          SECTION 9.08. Agent in Its Individual Capacity. Each Agent and its affiliates may
make loans to, accept deposits from and generally engage in any kind of business with CFC and its
Subsidiaries as though such Agent were not an Agent. With respect to its Loans made or renewed by
it, each Agent shall have the same rights and powers under this Agreement and the other Loan
Documents as any Lender and may exercise the same as though it were not an Agent, and the terms
“Lender” and “Lenders” shall include each Agent in its individual capacity.




          SECTION 9.09. Successor Managing Administrative Agent. The Managing Administrative
Agent may resign as Managing Administrative Agent upon 10 days’ notice to the Lenders and the
Borrower. If the Managing Administrative Agent shall resign as Managing Administrative Agent under
this Agreement and the other Loan Documents, then the Required Lenders shall appoint from among the
Lenders a successor agent for the Lenders, which successor agent shall (unless an Event of Default
under Article VII(a), VII(b), VII(g) or VII(h) with
respect to the Borrower shall have occurred and be continuing) be subject to approval by the
Borrower (which approval shall not be unreasonably withheld or delayed), whereupon such successor
agent shall succeed to the rights, powers and duties of the Managing Administrative Agent, and the
term “Managing Administrative Agent” shall mean such successor agent effective upon such
appointment and approval, and the former Managing Administrative Agent’s rights, powers and duties
as Managing Administrative Agent shall be terminated, without any other or further act or deed on
the part of such former Managing Administrative Agent or any of the parties to this Agreement or
any holders of the Loans. If no successor agent has accepted appointment as Managing
Administrative Agent by the date that is 10 days following a retiring Managing Administrative
Agent’s notice of resignation, the retiring Managing Administrative Agent’s resignation shall
nevertheless thereupon become effective, and the Lenders shall assume and perform all of the duties
of the Managing Administrative Agent hereunder until such time, if any, as the Required Lenders
appoint a successor agent as provided for above. After any retiring Managing Administrative
Agent’s resignation as Managing Administrative Agent, the provisions of this Article IX shall inure
to its benefit as to any actions taken or omitted to be taken by it while it was Managing
Administrative Agent under this Agreement and the other Loan Documents.




48









 








          SECTION 9.10. Documentation Agents, Syndication Agent and Administrative Agent. None
of the Documentation Agents, the Syndication Agent or the Administrative Agent shall have any
duties or responsibilities hereunder in their capacities as such.




ARTICLE X




Miscellaneous




          SECTION 10.01. Notices. (a) Except in the case of notices and other communications
expressly permitted to be given by telephone (and subject to paragraph (b) below), all notices and
other communications provided for herein shall be in writing and shall be delivered by hand or
overnight courier service, mailed by certified or registered mail or sent by telecopy, as follows:





     (i) if to CFC or CHL, to it at 4500 Park Granada, Calabasas, California 91302,
Attention of Chief Financial Officer (Telecopy No. (818) 225-4196), with a copy to the
attention of its Chief Legal Officer (Telecopy No. (818) 225-4055) at the same address;




     (ii) if to the Managing Administrative Agent, to JPMorgan Chase Bank, N.A., 111 Fannin
Street, Houston, Texas 77002, Attention: Eric Martin, Loan and Agency Services Group
(Telecopy No. (713) 750-2228), with a copy to JPMorgan Chase Bank, N.A., 270 Park Avenue,
New York, New York, 10017, Attentions: Laura Rebecca (Telecopy No. (212) 270-9352) and
Elisabeth Schwabe (Telecopy No. (212) 270-1511); and




     (iii) if to any Swingline Lender or any other Lender, to it at its address (or telecopy
number) set forth in its Administrative Questionnaire.



          (b) Notices and other communications to the Lenders hereunder may be delivered or furnished by
electronic communications pursuant to procedures approved by the Managing Administrative Agent;
provided that the foregoing shall not apply to notices pursuant to Article II unless otherwise
agreed by the Managing Administrative Agent and the applicable Lender. The Managing Administrative
Agent or the Borrower may, in its discretion, agree to accept notices and other
communications to it hereunder by electronic communications pursuant to procedures approved by
it; provided that approval of such procedures may be limited to particular notices or
communications.




          (c) Any party hereto may change its address or telecopy number for notices and other
communications hereunder by notice to the other parties hereto. All notices and other
communications given to any party hereto in accordance with the provisions of this Agreement shall
be deemed to have been given on the date of receipt.




          SECTION 10.02. Waivers; Amendments. (a) No failure or delay by the Managing
Administrative Agent or any Lender in exercising any right or power hereunder shall operate as a
waiver thereof, nor shall any single or partial exercise of any such right or power, or any
abandonment or discontinuance of steps to enforce such a right or power, preclude any other or
further exercise thereof or the exercise of any other right or power. The rights and remedies of
the Managing Administrative Agent and the Lenders hereunder are cumulative and are not exclusive of
any rights or remedies that they would otherwise have. No waiver of any provision of this
Agreement or consent to any departure by the Borrower therefrom shall in any event be effective
unless the same shall be permitted by paragraph (b) of this Section, and then such waiver or
consent shall be effective only in the specific instance and for the purpose for which given.
Without limiting the generality of the foregoing, the making of a Loan shall not be construed as a
waiver of any Default or Event of Default, regardless of whether the Managing


49









 







Administrative Agent
or any Lender may have had notice or knowledge of such Default or Event of Default at the time.




          (b) Neither this Agreement nor any other Loan Document nor any provision hereof or thereof may
be waived, amended or modified (other than amendments and modifications made for the sole purpose
of giving effect to any increase in Commitments pursuant to Section 2.01(b) or made to Schedule
2.05 as contemplated by the definition of “Swingline Lender” in Section 1.01) except pursuant to an
agreement or agreements in writing entered into by the Borrower and the Required Lenders or by the
Borrower and the Managing Administrative Agent with the consent of the Required Lenders;
provided that no such agreement shall (i) increase the Commitment of any Lender without the
written consent of such Lender, (ii) reduce the principal amount of any Loan or reduce the rate of
interest thereon, or reduce any fees payable hereunder, without the written consent of each Lender
affected thereby, (iii) postpone the scheduled date of payment of the principal amount of any Loan
(other than in accordance with Section 2.09) or any interest thereon, or any fees payable
hereunder, or reduce the amount of, waive or excuse any such payment, or postpone the scheduled
date of expiration of any Commitment, without the written consent of each Lender affected thereby,
(iv) change Section 2.17 in a manner that would alter the pro rata sharing of payments required
thereby, without the written consent of each Lender, (v) release any Guarantor from its obligations
set forth in Article VIII without the written consent of each Lender or (vi) change any of the
provisions of this Section or the definition of “Required Lenders” or any other provision hereof
specifying the number or percentage of Lenders required to waive, amend or modify any rights
hereunder or make any determination or grant any consent hereunder, without the written consent of
each Lender; provided further that no such agreement shall amend, modify or
otherwise affect the rights or duties of the Managing Administrative Agent or any Swingline Lender
hereunder without the prior written consent of the Managing Administrative Agent or such Swingline
Lender, as the case may be.




          SECTION 10.03. Expenses; Indemnity; Damage Waiver. (a) The Borrower shall pay (i)
all reasonable out-of-pocket expenses incurred by the Managing Administrative Agent, the
Administrative Agent and their respective Affiliates, including the reasonable fees, charges and
disbursements of counsel for the Managing Administrative Agent and the
Administrative Agent, in connection with the syndication of the credit facilities provided for
herein, the preparation and administration of this Agreement or any amendments, modifications or
waivers of the provisions hereof (whether or not the transactions contemplated hereby or thereby
shall be consummated) and (ii) all out-of-pocket expenses incurred by the Managing Administrative
Agent, the Administrative Agent or any Lender, including the fees, charges and disbursements of any
counsel for the Managing Administrative Agent, the Administrative Agent or any Lender, in
connection with the enforcement or protection of its rights in connection with this Agreement and
the other Loan Documents, including its rights under this Section, or in connection with the Loans
made hereunder, including all such out-of-pocket expenses incurred during any workout,
restructuring or negotiations in respect of such Loans.




          (b) The Borrower shall indemnify the Managing Administrative Agent, the Agents and each
Lender, and each Related Party of any of the foregoing Persons (each such Person being called an
“Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses, claims,
damages, liabilities and related expenses, including the fees, charges and disbursements of any
counsel for any Indemnitee, incurred by or asserted against any Indemnitee arising out of, in
connection with, or as a result of (i) the execution or delivery of this Agreement or any agreement
or instrument contemplated hereby, the performance by the parties hereto of their respective
obligations hereunder or the consummation of the Transactions or any other transactions
contemplated hereby, (ii) any Loan or the use of the proceeds thereof, (iii) any actual or alleged
presence or release of Hazardous Materials on or from any property owned or operated by the
Borrower or any of its subsidiaries, or any Environmental Liability related in any way to the
Borrower or any of its subsidiaries, or (iv) any actual or prospective claim,


50









 







litigation,
investigation or proceeding relating to any of the foregoing, whether based on contract, tort or
any other theory and regardless of whether any Indemnitee is a party thereto; provided that
such indemnity shall not, as to any Indemnitee, be available to the extent that such losses,
claims, damages, liabilities or related expenses are determined by a court of competent
jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or
willful misconduct of such Indemnitee.




          (c) To the extent that the Borrower fails to pay any amount required to be paid by it to any
Swingline Lender under paragraph (a) or (b) of this Section, each Lender severally agrees to pay to
the applicable Swingline Lender such Lender’s Applicable Percentage (determined as of the time that
the applicable unreimbursed expense or indemnity payment is sought) of such unpaid amount;
provided that the unreimbursed expense or indemnified loss, claim, damage, liability or
related expense, as the case may be, was incurred by or asserted against the applicable Swingline
Lender in its capacity as such. To the extent that the Borrower fails to pay any amount required to
be paid by it to the Managing Administrative Agent or the Administrative Agent under paragraph (a)
or (b) of this Section, each Lender severally agrees to pay the Managing Administrative Agent or
Administrative Agent in accordance with Section 9.07.




          (d) To the extent permitted by applicable law, the Borrower shall not assert, and hereby
waives, any claim against any Indemnitee, on any theory of liability, for special, indirect,
consequential or punitive damages (as opposed to direct or actual damages) arising out of, in
connection with, or as a result of, this Agreement or any agreement or instrument contemplated
hereby, the Transactions, any Loan or the use of the proceeds thereof.




          (e) All amounts due under this Section shall be payable not later than 10 days after written
demand therefor.




          SECTION 10.04. Successors and Assigns. (a) The provisions of this Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns permitted hereby, except that (i)
the Borrower may not assign or otherwise transfer any of its rights or obligations hereunder or
under any of the other Loan Documents without the prior written consent of each Lender (and any
attempted assignment or transfer by the Borrower without such consent shall be null and void) and
(ii) no Lender may assign or otherwise transfer its rights or obligations hereunder except in
accordance with this Section. Nothing in this Agreement, expressed or implied, shall be construed
to confer upon any Person (other than the parties hereto, their respective successors and assigns
permitted hereby, Participants (to the extent provided in paragraph (c) of this Section) and, to
the extent expressly contemplated hereby, the Related Parties of each of the Managing
Administrative Agent, the Administrative Agent and the Lenders) any legal or equitable right,
remedy or claim under or by reason of this Agreement.




          (b) (i) Subject to the conditions set forth in paragraph (b)(ii) below, any Lender may assign
to one or more assignees all or a portion of its rights and obligations under this Agreement
(including all or a portion of its Commitment and the Loans at the time owing to it) with the prior
written consent (such consent not to be unreasonably withheld) of:





          (A) the Borrower, provided that no consent of the Borrower shall be required
for an assignment to a Lender, an Affiliate of a Lender or, if an Event of Default has
occurred and is continuing, any other assignee; and




          (B) the Managing Administrative Agent and each Swingline Lender, provided that
no consent of the Managing Administrative Agent or any Swingline Lender shall be required



51









 







for an assignment of any Commitment to an assignee that is a Lender with a Commitment
immediately prior to giving effect to such assignment.



          
(ii) Assignments shall be subject to the following additional conditions:




          (A) except in the case of an assignment to a Lender or an Affiliate of a Lender or an
assignment of the entire remaining amount of the assigning Lender’s Commitment or Loans of
any Class, the amount of the Commitment or Loans of the assigning Lender subject to each
such assignment (determined as of the date the Assignment and Assumption with respect to
such assignment is delivered to the Managing Administrative Agent) shall not be less than
$10,000,000 unless each of the Borrower and the Managing Administrative Agent otherwise
consent, provided that no such consent of the Borrower shall be required if an Event
of Default under Article VII has occurred and is continuing;




          (B) each partial assignment shall be made as an assignment of a proportionate part of
all the assigning Lender’s rights and obligations under this Agreement, provided
that this clause shall not be construed to prohibit the assignment of a proportionate part
of all the assigning Lender’s rights and obligations in respect of Competitive Loans;





          (C) the parties to each assignment shall execute and deliver to the Managing
Administrative Agent an Assignment and Assumption, together with a processing and
recordation fee of $3,500; and




          (D) the assignee, if it shall not be a Lender, shall deliver to the Managing
Administrative Agent an Administrative Questionnaire.



          (iii) Subject to acceptance and recording thereof pursuant to paragraph (b)(iv) of this
Section, from and after the effective date specified in each Assignment and Assumption the assignee
thereunder shall be a party hereto and, to the extent of the interest assigned by such
Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and
the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment
and Assumption, be released from its obligations under this Agreement (and, in the case of an
Assignment and Assumption covering all of the assigning Lender’s rights and obligations under this
Agreement, such Lender shall cease to be a party hereto but shall continue to be entitled to the
benefits of Sections 2.14, 2.15, 2.16 and 10.03). Any assignment or transfer by a Lender of rights
or obligations under this Agreement that does not comply with this Section 10.04 shall be treated
for purposes of this Agreement as a sale by such Lender of a participation in such rights and
obligations in accordance with paragraph (c) of this Section.




          (iv) The Managing Administrative Agent, acting for this purpose as an agent of the Borrower,
shall maintain at one of its offices a copy of each Assignment and Assumption delivered to it and a
register for the recordation of the names and addresses of the Lenders, and the Commitment of, and
principal amount of the Loans owing to, each Lender pursuant to the terms hereof from time to time
(the “Register”). The entries in the Register shall be conclusive, and the Borrower, the
Managing Administrative Agent, the Administrative Agent and the Lenders may treat each Person whose
name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all
purposes of this Agreement, notwithstanding notice to the contrary. The Register shall be
available for inspection by the Borrower and any Lender, at any reasonable time and from time to
time upon reasonable prior notice.




          (v) Upon its receipt of a duly completed Assignment and Assumption executed by an assigning
Lender and an assignee, the assignee’s completed Administrative Questionnaire (unless the assignee
shall already be a Lender hereunder), the processing and recordation fee referred to in


52









 







paragraph
(b)(ii)(C) of this Section and any written consent to such assignment required by paragraph (b)(i)
of this Section, the Managing Administrative Agent shall accept such Assignment and Assumption and
record the information contained therein in the Register. No assignment shall be effective for
purposes of this Agreement unless it has been recorded in the Register as provided in this
paragraph.




          (c) (i) Any Lender may, without the consent of the Borrower, the Managing Administrative
Agent, the Administrative Agent or the Swingline Lenders, sell participations to one or more banks
or other entities (a “Participant”) in all or a portion of such Lender’s rights and
obligations under this Agreement (including all or a portion of its Commitment and the Loans owing
to it); provided that (A) such Lender’s obligations under this Agreement shall remain
unchanged, (B) such Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations and (C) the Borrower, the Managing Administrative Agent and the
other Lenders shall continue to deal solely and directly with such Lender in connection with such
Lender’s rights and obligations under this Agreement. Any agreement or instrument pursuant to
which a Lender sells such a participation shall provide that such Lender shall retain the sole
right to enforce this Agreement and to approve any amendment, modification or waiver of any
provision of this Agreement; provided that such agreement or instrument may provide that
such Lender will not, without the consent of the Participant, agree to any amendment, modification
or waiver described in the first proviso to Section 10.02(b) that affects such Participant.
Subject to paragraph (c)(ii) of this Section, the Borrower agrees that each Participant shall be
entitled to the benefits of Sections 2.14, 2.15 and 2.16 to the same extent as if it were a Lender
and had acquired its interest by assignment pursuant to paragraph (b) of this Section. To the
extent permitted by law, each Participant also shall be entitled to the benefits of Section 10.08
as though it were a Lender, provided such Participant agrees to be subject to Section 2.17(b) as
though it were a Lender.




          (ii) A Participant shall not be entitled to receive any greater payment under Section 2.14 or
2.16 than the applicable Lender would have been entitled to receive with respect to the
participation sold to such Participant, unless the sale of the participation to such Participant is
made with the Borrower’s prior written consent. A Participant that would be a Foreign Lender if it
were a Lender
shall not be entitled to the benefits of Section 2.16 unless the Borrower is notified of the
participation sold to such Participant and such Participant agrees, for the benefit of the
Borrower, to comply with Section 2.16(e) as though it were a Lender.




          (d) Any Lender may at any time pledge, assign or grant a security interest in all or any
portion of its rights under this Agreement to secure obligations of such Lender, including without
limitation any pledge, assignment or grant to secure obligations to a Federal Reserve Bank, and
this Section shall not apply to any such pledge, assignment or grant of a security interest;
provided that no such pledge, assignment or grant of a security interest shall release a
Lender from any of its obligations hereunder or substitute any such pledge, assignee or grantee for
such Lender as a party hereto.




          SECTION 10.05. Survival. All covenants, agreements, representations and warranties
made by the Borrower herein and in the certificates or other instruments delivered in connection
with or pursuant to this Agreement shall be considered to have been relied upon by the other
parties hereto and shall survive the execution and delivery of this Agreement and the making of any
Loans, regardless of any investigation made by any such other party or on its behalf and
notwithstanding that the Managing Administrative Agent or any Lender may have had notice or
knowledge of any Default or Event of Default or incorrect representation or warranty at the time
any credit is extended hereunder, and shall continue in full force and effect as long as the
principal of or any accrued interest on any Loan or any fee or any other amount payable under this
Agreement is outstanding and unpaid and so long as the Commitments have not expired or terminated.
The provisions of Sections 2.14, 2.15, 2.16, 9.03 and 10.03 and Article VIII shall survive and
remain in full force and effect regardless of the consummation of


53









 







the transactions contemplated
hereby, the repayment of the Loans, the expiration or termination of the Commitments or the
termination of this Agreement or any provision hereof.




          SECTION 10.06. Counterparts; Integration; Effectiveness. This Agreement may be
executed in counterparts (and by different parties hereto on different counterparts), each of which
shall constitute an original, but all of which when taken together shall constitute a single
contract. This Agreement and any separate letter agreements with respect to fees payable to the
Managing Administrative Agent constitute the entire contract among the parties relating to the
subject matter hereof and supersede any and all previous agreements and understandings, oral or
written, relating to the subject matter hereof. Except as provided in Section 4.01, this Agreement
shall become effective when it shall have been executed by the Managing Administrative Agent and
when the Managing Administrative Agent shall have received counterparts hereof which, when taken
together, bear the signatures of each of the other parties hereto, and thereafter shall be binding
upon and inure to the benefit of the parties hereto and their respective successors and assigns.
Delivery of an executed counterpart of a signature page of this Agreement by telecopy shall be
effective as delivery of a manually executed counterpart of this Agreement.




          SECTION 10.07. Severability. Any provision of this Agreement held to be invalid,
illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the
extent of such invalidity, illegality or unenforceability without affecting the validity, legality
and enforceability of the remaining provisions hereof; and the invalidity of a particular provision
in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.




          SECTION 10.08. Right of Setoff. If an Event of Default shall have occurred and be continuing, each Lender and each of its
Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted
by law, to set off and apply any and all deposits (general or special, time or demand, provisional
or final) at any time held and other obligations at any time owing by such Lender or Affiliate to
or for the credit or the account of the Borrower against any of and all the obligations of the
Borrower now or hereafter existing under this Agreement held by such Lender, irrespective of
whether or not such Lender shall have made any demand under this Agreement and although such
obligations may be unmatured. The rights of each Lender under this Section are in addition to
other rights and remedies (including other rights of setoff) which such Lender may have.




          SECTION 10.09. Governing Law; Jurisdiction; Consent to Service of Process. (a) This
Agreement shall be construed in accordance with and governed by the law of the State of New York.




          (b) The Borrower hereby irrevocably and unconditionally submits, for itself and its property,
to the nonexclusive jurisdiction of the Supreme Court of the State of New York sitting in New York
County and of the United States District Court of the Southern District of New York, and any
appellate court from any thereof, in any action or proceeding arising out of or relating to this
Agreement, or for recognition or enforcement of any judgment, and each of the parties hereto hereby
irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding
may be heard and determined in such New York State or, to the extent permitted by law, in such
Federal court. Each of the parties hereto agrees that a final judgment in any such action or
proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment
or in any other manner provided by law. Nothing in this Agreement shall affect any right that the
Managing Administrative Agent or any Lender may otherwise have to bring any action or proceeding
relating to this Agreement against the Borrower or its properties in the courts of any
jurisdiction.




          (c) The Borrower hereby irrevocably and unconditionally waives, to the fullest extent it may
legally and effectively do so, any objection which it may now or hereafter have to the laying


54









 







of venue of any suit, action or proceeding arising out of or relating to this Agreement in any court
referred to in paragraph (b) of this Section. Each of the parties hereto hereby irrevocably
waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the
maintenance of such action or proceeding in any such court.




          (d) Each party to this Agreement irrevocably consents to service of process in the manner
provided for notices in Section 10.01. Nothing in this Agreement will affect the right of any
party to this Agreement to serve process in any other manner permitted by law.




          SECTION 10.10. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL
PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A)
CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO
ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN
THIS SECTION.




          SECTION 10.11. Headings. Article and Section headings and the Table of Contents used
herein are for convenience of reference only, are not part of this Agreement and shall not affect
the construction of, or be taken into consideration in interpreting, this Agreement.




          SECTION 10.12. Confidentiality. Each of the Managing Administrative Agent and the
Lenders agrees to maintain the confidentiality of the Information (as defined below), except that
Information may be disclosed (a) to its and its Affiliates’ directors, officers, employees and
agents, including accountants, legal counsel and other advisors (it being understood that the
Persons to whom such disclosure is made will be informed of the confidential nature of such
Information and instructed to keep such Information confidential), (b) to the extent requested by
any regulatory or self-regulatory authority, (c) to the extent required by applicable laws or
regulations (including the regulations of any self-regulatory organization) or by any subpoena or
similar legal process, (d) to any other party to this Agreement, (e) in connection with the
exercise of any remedies hereunder or any suit, action or proceeding relating to this Agreement or
the enforcement of rights hereunder, (f) subject to an agreement containing provisions
substantially the same as those of this Section, to (i) any assignee of or Participant in, or any
prospective assignee of or Participant in, any of its rights or obligations under this Agreement or
(ii) any actual or prospective counterparty (or its advisors) to any swap or derivative transaction
relating to the Borrower and its obligations, (g) with the consent of the Borrower or (h) to the
extent such Information (i) becomes publicly available other than as a result of a breach of this
Section or (ii) becomes available to the Managing Administrative Agent or any Lender on a
nonconfidential basis from a source other than the Borrower. For the purposes of this Section,
“Information” means all information received from the Borrower, in connection with the negotiation
of or pursuant to this Agreement, relating to the Borrower or its business, other than any such
information that is available to the Managing Administrative Agent or any Lender on a
nonconfidential basis prior to disclosure by the Borrower; provided that, in the case of
information received from the Borrower after the date hereof, such information is clearly
identified at the time of delivery as confidential. Any Person required to maintain the
confidentiality of Information as provided in this Section shall be considered to have complied
with its obligation to do so if such Person has exercised the same degree of care to maintain the
confidentiality of such Information as such Person would accord to its own confidential
information.





55










 







     SECTION 10.13. USA PATRIOT Act. Each Lender hereby notifies the Borrower that
pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law
October 26, 2001)) (the “Act”), it is required to obtain, verify and record information
that identifies the Borrower, which information includes the name and address of the Borrower and
other information that will allow such Lender to identify the Borrower in accordance with the Act.



     SECTION 10.14. Consent to Amendment. Each Lender that is also a party to the RBC
Credit Agreement hereby consents to the administrative agent thereunder executing and delivering an
amendment thereto (i) deleting, as unnecessary, the defined term “Total Usage” from Section 1.01 of
the RBC Credit Agreement, (ii) reducing the maximum aggregate amount set forth in clause (x) of
Section 2.01(b)(ii) of the RBC Credit Agreement from $3,000,000,000 to $2,600,000,000, (iii)
deleting, as unnecessary, the defined terms “Total Usage” and “Utilization Threshold” and the
phrase “the sum of”
from Section 2.11(b) of the RBC Credit Agreement, (iv) excluding the material litigation
representation from the representations and warranties of the Borrower required to be made for
Borrowings after the Effective Date (as defined in the RBC Credit Agreement) pursuant to Section
4.02(a) of the RBC Credit Agreement and (v) amending the Consolidated Net Worth amounts required to
be maintained by CFC and CHL from $5,600,000,000 to $7,680,000,000 and $1,750,000,000 to
$2,400,000,000, respectively, in Section 6.01 of the RBC Credit Agreement.



56









 





     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their
respective authorized officers as of the day and year first above written.



	 	 	 	 	 
	 	COUNTRYWIDE FINANCIAL CORPORATION

 	 
	 	By:  	/s/ Jennifer S. Sandefur
 	 
	 	 	Name:  	Jennifer S. Sandefur 	 
	 	 	Title:  	Senior Managing Director and Treasurer 	 
	 



	 	 	 	 	 
	 	COUNTRYWIDE HOME LOANS, INC.

 	 
	 	By:  	/s/ Jennifer S. Sandefur
 	 
	 	 	Name:  	Jennifer S. Sandefur 	 
	 	 	Title:  	Senior Managing Director and Treasurer 	 
	 



 





 





Signature Page to Countrywide 364-Day Credit Agreement, JPMorgan Chase Bank, N.A. as Managing Administrative Agent





 









 





	 	 	 	 	 
	 	JPMorgan Chase Bank, N.A.

 	 
	 	By:  	/s/ Elisabeth H. Schwabe
 	 
	 	 	Name:  	Elisabeth H. Schwabe 	 
	 	 	Title:  	Managing Director 	 
	 



	 	 	 	 	 
	 	 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 



 





 





Signature Page to Countrywide 364-Day Credit Agreement, JPMorgan Chase Bank, N.A. as Managing Administrative Agent





 









 





	 	 	 	 	 
	 	BANK OF AMERICA, N.A., as
Administrative Agent and
as a Lender

 	 
	 	By:  	/s/ Alexa Bradford
 	 
	 	 	Name:  	Alexa Bradford 	 
	 	 	Title:  	Senior Vice President 	 
	 



 





 





Signature Page to Countrywide 364-Day Credit Agreement, JPMorgan Chase Bank, N.A. as Managing Administrative Agent





 









 





	 	 	 	 	 
	 	ABN AMRO BANK N.V., as a Lender

 	 
	 	By:  	/s/ Neil R. Stein
 	 
	 	 	Name:  	Neil R. Stein 	 
	 	 	Title:  	Director 	 
	 



	 	 	 	 	 
	 	 	 
	 	By:  	/s/ Michael DeMarco
 	 
	 	 	Name:  	Michael DeMarco 	 
	 	 	Title:  	Vice President 	 
	 



 





 





Signature Page to Countrywide 364-Day Credit Agreement, JPMorgan Chase Bank, N.A. as Managing Administrative Agent





 









 





	 	 	 	 	 
	 	DEUTSCHE BANK AG NEW YORK BRANCH

 	 
	 	By:  	/s/ Ruth Leung
 	 
	 	 	Name:  	Ruth Leung 	 
	 	 	Title:  	Director 	 
	 



	 	 	 	 	 
	 	 	 
	 	By:  	/s/ John S. McGill
 	 
	 	 	Name:  	John S. McGill 	 
	 	 	Title:  	Director 	 
	 



 





 





Signature Page to Countrywide 364-Day Credit Agreement, JPMorgan Chase Bank, N.A. as Managing Administrative Agent





 









 





	 	 	 	 	 
	 	CITICORP USA

 	 
	 	By:  	/s/ Yoko Otani
 	 
	 	 	Name:  	Yoko Otani 	 
	 	 	Title:  	Managing Director 	 
	 



 





 





Signature Page to Countrywide 364-Day Credit Agreement, JPMorgan Chase Bank, N.A. as Managing Administrative Agent





 









 





	 	 	 	 	 
	 	BARCLAYS BANK PLC

 	 
	 	By:  	/s/ Alison A. McGuigan
 	 
	 	 	Name:  	Alison A. McGuigan 	 
	 	 	Title:  	Associate Director 	 
	 



 





 





Signature Page to Countrywide 364-Day Credit Agreement, JPMorgan Chase Bank, N.A. as Managing Administrative Agent





 









 





	 	 	 	 	 
	 	Greenwich Capital Markets, as agent for

The Royal Bank of Scotland plc

 	 
	 	By:  	/s/ Diane Ferguson
 	 
	 	 	Name:  	Diane Ferguson 	 
	 	 	Title:  	Managing Director 	 
	 



 





 





Signature Page to Countrywide 364-Day Credit Agreement, JPMorgan Chase Bank, N.A. as Managing Administrative Agent





 









 





	 	 	 	 	 
	 	LEHMAN BROTHERS BANK, FSB

 	 
	 	By:  	/s/ Gary T. Taylor
 	 
	 	 	Name:  	Gary T. Taylor 	 
	 	 	Title:  	Senior Vice President 	 
	 



 





 





Signature Page to Countrywide 364-Day Credit Agreement, JPMorgan Chase Bank, N.A. as Managing Administrative Agent





 









 





	 	 	 	 	 
	 	The BANK OF NEW YORK

 	 
	 	By:  	/s/ Paul Connolly
 	 
	 	 	Name:  	Paul Connolly 	 
	 	 	Title:  	Vice President 	 
	 



 





 





Signature Page to Countrywide 364-Day Credit Agreement, JPMorgan Chase Bank, N.A. as Managing Administrative Agent





 









 





	 	 	 	 	 
	 	HSBC Bank (USA), N.A.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 



	 	 	 	 	 
	 	 	 
	 	By:  	/s/ Kevin E. Miller
 	 
	 	 	Name:  	Kevin E. Miller 	 
	 	 	Title:  	Senior Vice President 	 
	 



 





 





Signature Page to Countrywide 364-Day Credit Agreement, JPMorgan Chase Bank, N.A. as Managing Administrative Agent





 









 





	 	 	 	 	 
	 	BNP Paribas

 	 
	 	By:  	/s/ Pierre-Nicholas Rogers
 	 
	 	 	Name:  	Pierre-Nicholas Rogers 	 
	 	 	Title:  	Managing Director 	 
	 



	 	 	 	 	 
	 	 	 
	 	By:  	/s/ Jamie Dillon
 	 
	 	 	Name:  	Jamie Dillon 	 
	 	 	Title:  	Managing Director 	 
	 



 





 





Signature Page to Countrywide 364-Day Credit Agreement, JPMorgan Chase Bank, N.A. as Managing Administrative Agent





 









 





	 	 	 	 	 
	 	MORGAN STANLEY BANK

 	 
	 	By:  	/s/ Daniel Twenge
 	 
	 	 	Name:  	Daniel Twenge 	 
	 	 	Title:  	Vice President


Morgan Stanley Bank 	 
	 



 





 





Signature Page to Countrywide 364-Day Credit Agreement, JPMorgan Chase Bank, N.A. as Managing Administrative Agent





 









 





	 	 	 	 	 
	 	National Australia Bank Limited [ABN 12004937]

 	 
	 	By:  	/s/ Richard G. Reilly
 	 
	 	 	Name:  	Richard G. Reilly 	 
	 	 	Title:  	Senior Vice President 	 
	 



 





 





Signature Page to Countrywide 364-Day Credit Agreement, JPMorgan Chase Bank, N.A. as Managing Administrative Agent





 









 





	 	 	 	 	 
	 	Societe Generale

 	 
	 	By:  	/s/ Edith L. Hornick
 	 
	 	 	Name:  	Edith L. Hornick 	 
	 	 	Title:  	Managing Director 	 
	 



 





 





Signature Page to Countrywide 364-Day Credit Agreement, JPMorgan Chase Bank, N.A. as Managing Administrative Agent





 









 





	 	 	 	 	 
	 	Wachovia Bank, National Association

 	 
	 	By:  	/s/ Joan Anderson
 	 
	 	 	Name:  	Joan Anderson 	 
	 	 	Title:  	Director 	 
	 



 





 





Signature Page to Countrywide 364-Day Credit Agreement, JPMorgan Chase Bank, N.A. as Managing Administrative Agent





 









 





	 	 	 	 	 
	 	Lloyds TSB Bank plc

 	 
	 	By:  	/s/ James M. Rudd
 	 
	 	 	Name:  	James M. Rudd 	 
	 	 	Title:  	Vice President
Financial Institutions, USA
R091 	 
	 



	 	 	 	 	 
	 	 	 
	 	By:  	/s/ Candi Obrentz
 	 
	 	 	Name:  	Candi Obrentz 	 
	 	 	Title:  	Assistant Vice President
Financial Institutions, USA
0-013 	 
	 



 





 





Signature Page to Countrywide 364-Day Credit Agreement, JPMorgan Chase Bank, N.A. as Managing Administrative Agent





 









 





	 	 	 	 	 
	 	ROYAL BANK OF CANADA, as a Lender

 	 
	 	By:  	/s/ Howard Lee
 	 
	 	 	Name:  	Howard Lee 	 
	 	 	Title:  	Authorized Signatory 	 
	 



 





 





Signature Page to Countrywide 364-Day Credit Agreement, JPMorgan Chase Bank, N.A. as Managing Administrative Agent





 









 





	 	 	 	 	 
	 	CALYON NEW YORK BRANCH

 	 
	 	By:  	/s/ Sebastian Rocco
 	 
	 	 	Name:  	Sebastian Rocco 	 
	 	 	Title:  	Managing Director 	 
	 



	 	 	 	 	 
	 	 	 
	 	By:  	/s/ William Denton
 	 
	 	 	Name:  	William Denton 	 
	 	 	Title:  	Managing Director 	 
	 



 





 





Signature Page to Countrywide 364-Day Credit Agreement, JPMorgan Chase Bank, N.A. as Managing Administrative Agent





 









 





	 	 	 	 	 
	 	Commonwealth Bank of Australia

 	 
	 	By:  	/s/ Philip Delbridge
 	 
	 	 	Philip Delbridge 	 
	 	 	Risk Manager 	 
	 



 





 





Signature Page to Countrywide 364-Day Credit Agreement, JPMorgan Chase Bank, N.A. as Managing Administrative Agent





 









 





	 	 	 	 	 
	 	ING Bank N.V.

 	 
	 	By:  	/s/ C. Claessens
 	 
	 	 	Name:  	C. Claessens 	 
	 	 	Title:  	Vice President 	 
	 



	 	 	 	 	 
	 	 	 
	 	By:  	/s/ S. Poot
 	 
	 	 	Name:  	S. Poot 	 
	 	 	Title:  	Director 	 
	 



 





 





Signature Page to Countrywide 364-Day Credit Agreement, JPMorgan Chase Bank, N.A. as Managing Administrative Agent





 









 





	 	 	 	 	 
	 	UBS LOAN FINANCE LLC

 	 
	 	By:  	/s/ Richard L. Tavrow
 	 
	 	 	Name:  	Richard L. Tavrow 	 
	 	 	Title:  	Director 	 
	 



	 	 	 	 	 
	 	 	 
	 	By:  	/s/ Irja R. Otsa
 	 
	 	 	Name:  	Irja R. Otsa 	 
	 	 	Title:  	Associate Director 	 
	 



 





 





Signature Page to Countrywide 364-Day Credit Agreement, JPMorgan Chase Bank, N.A. as Managing Administrative Agent





 









 





	 	 	 	 	 
	 	WILLIAM STREET COMMITMENT

CORPORATION (Recourse only to assets of William

Street Commitment Corporation)

 	 
	 	By:  	/s/ Mark Walton
 	 
	 	 	Name:  	Mark Walton 	 
	 	 	Title:  	Assistant Vice President 	 
	 



 





 





Signature Page to Countrywide 364-Day Credit Agreement, JPMorgan Chase Bank, N.A. as Managing Administrative Agent





 









 





	 	 	 	 	 
	 	Australia and New Zealand Banking Group Limited

 	 
	 	By:  	/s/ John Wade
 	 
	 	 	Name:  	John Wade 	 
	 	 	Title:  	Director 	 
	 



 





 





Signature Page to Countrywide 364-Day Credit Agreement, JPMorgan Chase Bank, N.A. as Managing Administrative Agent





 









 





	 	 	 	 	 
	 	WESTLB AG, NEW YORK BRANCH

 	 
	 	By:  	/s/ Dee Dee Sklar
 	 
	 	 	Name:  	Dee Dee Sklar 	 
	 	 	Title:  	Managing Director 	 
	 



	 	 	 	 	 
	 	 	 
	 	By:  	/s/ Lillian Tung Lum
 	 
	 	 	Name:  	Lillian Tung Lum 	 
	 	 	Title:  	Executive Director 	 
	 



 





 





Signature Page to Countrywide 364-Day Credit Agreement, JPMorgan Chase Bank, N.A. as Managing Administrative Agent





 









 





	 	 	 	 	 
	 	BANK OF MONTREAL, CHICAGO BRANCH

 	 
	 	By:  	/s/ Bruce A. Pietka
 	 
	 	 	Name:  	Bruce A. Pietka 	 
	 	 	Title:  	Vice President 	 
	 



 





 





Signature Page to Countrywide 364-Day Credit Agreement, JPMorgan Chase Bank, N.A. as Managing Administrative Agent





 









 





	 	 	 	 	 
	 	BANK OF TOKYO-MITSUBISHI UFJ TRUST COMPANY

 	 
	 	By:  	/s/ Harumi Kambara
 	 
	 	 	Name:  	Harumi Kambara 	 
	 	 	Title:  	AVP 	 
	 



 





 





Signature Page to Countrywide 364-Day Credit Agreement, JPMorgan Chase Bank, N.A. as Managing Administrative Agent





 









 





	 	 	 	 	 
	 	Dresdner Bank AG New York Branch

 	 
	 	By:  	/s/ Mark van der Griend
 	 
	 	 	Name:  	Mark van der Griend 	 
	 	 	Title:  	Managing Director 	 
	 



	 	 	 	 	 
	 	 	 
	 	By:  	/s/ Susan Dingilian
 	 
	 	 	Name:  	Susan Dingilian 	 
	 	 	Title:  	Managing Director 	 
	 



 





 





Signature Page to Countrywide 364-Day Credit Agreement, JPMorgan Chase Bank, N.A. as Managing Administrative Agent





 









 





	 	 	 	 	 
	 	Fortis Capital Corp.

 	 
	 	By:  	/s/ John W. Deegan
 	 
	 	 	Name:  	John W. Deegan 	 
	 	 	Title:  	Senior Vice President 	 
	 



	 	 	 	 	 
	 	 	 
	 	By:  	/s/ Jose G. Jimenez
 	 
	 	 	Name:  	Jose G. Jimenez 	 
	 	 	Title:  	VP/Controller 	 
	 



 





 





Signature Page to Countrywide 364-Day Credit Agreement, JPMorgan Chase Bank, N.A. as Managing Administrative Agent





 









 





	 	 	 	 	 
	 	Mizuho Corporate Bank, Ltd.

 	 
	 	By:  	/s/ Robert Gallagher
 	 
	 	 	Name:  	Robert Gallagher 	 
	 	 	Title:  	Senior Vice President 	 
	 



 





 





Signature Page to Countrywide 364-Day Credit Agreement, JPMorgan Chase Bank, N.A. as Managing Administrative Agent





 









 





	 	 	 	 	 
	 	SUMITOMO MITSUI BANKING CORPORATION

 	 
	 	By:  	/s/ Shigeru Tsuru
 	 
	 	 	Name:  	Shigeru Tsuru 	 
	 	 	Title:  	Joint General Manager 	 
	 



 





 





Signature Page to Countrywide 364-Day Credit Agreement, JPMorgan Chase Bank, N.A. as Managing Administrative Agent





 









 





	 	 	 	 	 
	 	The Bank of Nova Scotia

 	 
	 	By:  	/s/ Brian Allen
 	 
	 	 	Name:  	Brian Allen 	 
	 	 	Title:  	Managing Director 	 
	 



 





 





Signature Page to Countrywide 364-Day Credit Agreement, JPMorgan Chase Bank, N.A. as Managing Administrative Agent





 









 





	 	 	 	 	 
	 	Union Bank of California, N.A.

 	 
	 	By:  	/s/ Christine Davis
 	 
	 	 	Name:  	Christine Davis 	 
	 	 	Title:  	Vice President 	 
	 



 





 





Signature Page to Countrywide 364-Day Credit Agreement, JPMorgan Chase Bank, N.A. as Managing Administrative Agent





 









 





	 	 	 	 	 
	 	NORDDEUTSCHE LANDESBANK GIROZENTRALE

NEW YORK BRANCH AND/OR CAYMAN ISLANDS BRANCH

 	 
	 	By:  	/s/ Stephanie Finnen
 	 
	 	 	Name:  	Stephanie Finnen 	 
	 	 	Title:  	Vice President 	 
	 



	 	 	 	 	 
	 	 	 
	 	By:  	/s/ Patrick Wacker
 	 
	 	 	Name:  	Patrick Wacker 	 
	 	 	Title:  	Assistant Vice President 	 
	 



 





 





Signature Page to Countrywide 364-Day Credit Agreement, JPMorgan Chase Bank, N.A. as Managing Administrative Agent