EX-10.1



 




Exhibit 10.1





EXECUTION COPY




 





U.S. $1,500,000,000




FIVE-YEAR

CREDIT AGREEMENT




Dated as of May 22, 2006




among




PEPSICO, INC.,

as Borrower,




THE LENDERS NAMED HEREIN,




CITIBANK, N.A.,

as Administrative Agent,




JPMORGAN CHASE BANK, N.A.,

as Syndication Agent




CITIGROUP GLOBAL MARKETS INC.

and

J.P. MORGAN SECURITIES INC.,

as Joint Lead Arrangers and Joint Bookrunners




 





 









 





TABLE OF CONTENTS




	 	 	 	 	 	 	 
	 	 	 	 	Page
	ARTICLE I DEFINITIONS AND ACCOUNTING TERMS	 	 	1	 
	Section 1.01
	 	Certain Defined Terms	 	 	1	 
	Section 1.02
	 	Computation of Time Periods	 	 	9	 
	Section 1.03
	 	Accounting Terms	 	 	10	 
	Section 1.04
	 	Letter of Credit Amounts	 	 	10	 
	 
	 	 	 	 	 	 
	ARTICLE II AMOUNTS AND TERMS OF THE ADVANCES	 	 	10	 
	Section 2.01
	 	The Revolving Credit Advances	 	 	10	 
	Section 2.02
	 	Making the Revolving Credit Advances	 	 	10	 
	Section 2.03
	 	The Competitive Bid Advances	 	 	12	 
	Section 2.04
	 	Fees	 	 	15	 
	Section 2.05
	 	Termination, Reduction or Increase of Commitments	 	 	15	 
	Section 2.06
	 	Repayment of Revolving Credit Advances: Extension of Termination Date	 	 	17	 
	Section 2.07
	 	Interest on Revolving Credit Advances	 	 	18	 
	Section 2.08
	 	Interest Rate Determination	 	 	19	 
	Section 2.09
	 	Optional Conversion of Revolving Credit Advances	 	 	20	 
	Section 2.10
	 	Optional Prepayments of Revolving Credit Advances	 	 	20	 
	Section 2.12
	 	Illegality	 	 	21	 
	Section 2.13
	 	Payments and Computations	 	 	21	 
	Section 2.14
	 	Taxes	 	 	22	 
	Section 2.15
	 	Sharing of Payments, Etc.	 	 	25	 
	Section 2.16
	 	Use of Proceeds	 	 	25	 
	Section 2.17
	 	Borrowings by Borrowing Subsidiaries	 	 	25	 
	Section 2.18
	 	Letters of Credit	 	 	27	 
	 
	 	 	 	 	 	 
	ARTICLE III CONDITIONS TO EFFECTIVENESS AND LENDING	 	 	34	 
	Section 3.01
	 	Conditions Precedent to Effectiveness of Sections 2.01, 2.03 and 2.18	 	 	34	 
	Section 3.02
	 	Conditions Precedent to Each Revolving Credit Borrowing and Each Letter of Credit Extension 	 	 	35	 
	Section 3.03
	 	Conditions Precedent to Each Competitive Bid Borrowing	 	 	36	 
	Section 3.04
	 	Determinations Under Section 3.01	 	 	36	 
	 
	 	 	 	 	 	 
	ARTICLE IV REPRESENTATIONS AND WARRANTIES	 	 	37	 
	Section 4.01
	 	Representations and Warranties of the Company	 	 	37	 
	 
	 	 	 	 	 	 
	ARTICLE V COVENANTS OF THE COMPANY	 	 	38	 
	Section 5.01
	 	Affirmative Covenants	 	 	38	 
	Section 5.02
	 	Negative Covenants	 	 	39	 
	 
	 	 	 	 	 	 
	ARTICLE VI EVENTS OF DEFAULT	 	 	41	 
	Section 6.01
	 	Events of Default	 	 	41	 






 









 






	 	 	 	 	 	 	 
	ARTICLE VII THE AGENT	 	 	42	 
	Section 7.01
	 	Authorization and Action	 	 	42	 
	Section 7.02
	 	Agent’s Reliance, Etc.	 	 	43	 
	Section 7.03
	 	Citibank and Affiliates	 	 	43	 
	Section 7.04
	 	Lender Credit Decision	 	 	44	 
	Section 7.05
	 	Indemnification	 	 	44	 
	Section 7.06
	 	Successor Agent	 	 	44	 
	Section 7.07
	 	Syndication Agents and Lead Arrangers	 	 	44	 
	 
	 	 	 	 	 	 
	ARTICLE VIII MISCELLANEOUS	 	 	45	 
	Section 8.01
	 	Amendments, Etc.	 	 	45	 
	Section 8.02
	 	Notices, Etc.	 	 	45	 
	Section 8.03
	 	No Waiver; Remedies	 	 	46	 
	Section 8.04
	 	Costs and Expenses	 	 	46	 
	Section 8.05
	 	Right of Set-off	 	 	47	 
	Section 8.06
	 	Binding Effect	 	 	47	 
	Section 8.07
	 	Assignments and Participations	 	 	48	 
	Section 8.08
	 	Confidentiality	 	 	51	 
	Section 8.09
	 	Governing Law	 	 	51	 
	Section 8.10
	 	Execution in Counterparts	 	 	51	 
	Section 8.11
	 	Jurisdiction, Etc.	 	 	51	 
	Section 8.12
	 	WAIVER OF JURY TRIAL	 	 	52	 
	Section 8.13
	 	USA PATRIOT Act Notice	 	 	52	 
	 
	 	 	 	 	 	 
	ARTICLE IX GUARANTEE	 	 	52	 
	Section 9.01
	 	Guarantee	 	 	52	 
	Section 9.02
	 	Obligations Unconditional	 	 	52	 
	Section 9.03
	 	Reinstatement	 	 	53	 
	Section 9.04
	 	Subrogation	 	 	53	 
	Section 9.05
	 	Remedies	 	 	53	 
	Section 9.06
	 	Continuing Guarantee	 	 	53	 






iii









 





Schedules




	 	 	 
	Schedule I

	 	Commitments
	Schedule II

	 	Agent’s Address






Exhibits




	 	 	 
	Exhibit A-1

	 	Form of Revolving Credit Note
	Exhibit A-2

	 	Form of Competitive Bid Note
	Exhibit B-1

	 	Form of Notice of Revolving Credit Borrowing
	Exhibit B-2

	 	Form of Notice of Competitive Bid Borrowing
	Exhibit C

	 	Form of Assignment and Assumption
	Exhibit D

	 	Form of Designation Letter
	Exhibit E

	 	Form of Termination Letter






iv









 




FIVE-YEAR CREDIT AGREEMENT




Dated as of May 22, 2006




     PEPSICO, INC., a North Carolina corporation (the “Company”), the banks, financial
institutions and other institutional lenders (the “Initial Lenders”) listed on the
signature pages hereof, and CITIBANK, N.A. (“Citibank”), as administrative agent (in such
capacity, the “Agent”) for the Lenders (as hereinafter defined), agree, as of May 22, 2006,
as follows:



PRELIMINARY STATEMENT




     The Company has requested that the Lenders agree to extend credit to it from time to time in
an aggregate principal amount of up to $1,500,000,000 for general corporate purposes of the Company
and its Subsidiaries not otherwise prohibited under the terms of this Agreement. The Lenders have
indicated their willingness to agree to extend credit to the Company from time to time in such
amount on the terms and conditions of this Agreement.



ARTICLE I




DEFINITIONS AND ACCOUNTING TERMS




     Section 1.01 Certain Defined Terms.



     As used in this Agreement, the following terms shall have the following meanings (such
meanings to be equally applicable to both the singular and plural forms of the terms defined):



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



     “Advance” means a Revolving Credit Advance or a Competitive Bid Advance.



     “Affiliate” means, as to any Person, any other Person that, directly or indirectly,
controls, is controlled by or is under common control with such Person or is a director or officer
of such Person. For purposes of this definition, the term “control” (including the terms
“controlling”, “controlled by” and “under common control with”) of a Person means the possession,
direct or indirect, of the power to direct or cause the direction of the management and policies of
such Person, whether through the ownership of Voting Stock, by contract or otherwise.



     “Agent’s Account” means such account as the Agent shall designate from time to time in
a notice to the Company and the Lenders.



     “Agent’s Address” means the address or addresses on Schedule II attached hereto.



     “Applicable Lending Office” means, with respect to each Lender, such Lender’s Domestic
Lending Office in the case of a Base Rate Advance and such Lender’s Eurodollar Lending Office in
the case of a Eurodollar Rate Advance and, in the case of a Competitive Bid Advance, the office of
such Lender notified by such Lender to the Agent as its Applicable Lending Office with respect to
such Competitive Bid Advance.



     “Assignment and Assumption” means an assignment and assumption entered into by a
Lender



 









 







and an Eligible Assignee, and accepted by the Agent, in substantially the form of Exhibit C hereto.



     “Base Rate” means a fluctuating interest rate per annum in effect from time to time,
which rate per annum shall at all times be equal to the higher of:




     (a) the rate of interest announced publicly by Citibank, from time to time, as
Citibank’s base rate; and




     (b) 1/2 of one percent per annum above the Federal Funds Rate.



     “Base Rate Advance” means a Revolving Credit Advance that bears interest as provided
in Section 2.07(a).



     “Borrower” means, at any time, collectively, the Company (both as a Borrower and as a
guarantor under Article IX of Advances made to the Borrowing Subsidiaries) and each Borrowing
Subsidiary.



     “Borrowing” means a Revolving Credit Borrowing or a Competitive Bid Borrowing.



     “Borrowing Subsidiary” means any Subsidiary of the Company, as to which a Designation
Letter has been delivered to the Agent and as to which a Termination Letter has not been delivered
to the Agent in accordance with Section 2.17.



     “Business Day” means any day other than a Saturday, Sunday or other day on which
commercial banks are authorized to close under the laws of, or are in fact closed in, the state of
the Agent’s Address or in New York, New York and if such day relates to a Eurodollar Rate Advance,
it shall also mean a day on which dealings are carried on by and between banks in the London
interbank eurodollar market.



     “Cash Collateralize” has the meaning specified in Section 2.18(g).



     “Commitment” means, with respect to any Lender, such Lender’s obligations to make
Revolving Credit Advances and purchase participations in L/C Obligations. Such Lender’s Commitment
shall be the amount set forth opposite such Lender’s name on Schedule I hereto or, if such Lender
has entered into any Assignment and Assumption, set forth for such Lender in the Register
maintained by the Agent pursuant to Section 8.07(c), as such amount may be reduced pursuant to
Section 2.05(a) or increased pursuant to Section 2.05(c).



     “Competitive Bid Advance” means an advance by a Lender to a Borrower as part of a
Competitive Bid Borrowing resulting from the auction bidding procedure described in Section 2.03
and refers to a Fixed Rate Advance or a LIBO Rate Advance.



     “Competitive Bid Borrowing” means a borrowing consisting of simultaneous Competitive
Bid Advances from each of the Lenders whose offer to make one or more Competitive Bid Advances as
part of such borrowing has been accepted under the auction bidding procedure described in Section
2.03.



     “Competitive Bid Note” means a promissory note of a Borrower payable to the order of
any Lender, in substantially the form of Exhibit A-2 hereto, evidencing the indebtedness of such
Borrower to such Lender resulting from a Competitive Bid Advance made by such Lender.



     “Competitive Bid Reduction” has the meaning specified in Section 2.01.



     “Confidential Information” means information that the Company furnishes to the Agent
or any



2









 







Lender in a writing designated as confidential, but does not include any such information that is
or becomes generally available to the public or that is or becomes rightfully available to the
Agent or such Lender from a source other than the Company.



     “Consolidated” refers to the consolidation of accounts in accordance with GAAP.



     “Consolidated Net Tangible Assets” means the total assets of the Company and its
Restricted Subsidiaries (less applicable depreciation, amortization, and other valuation reserves),
less all current liabilities (excluding intercompany liabilities) and all intangible assets of the
Company and its Restricted Subsidiaries, all as set forth on the most recent consolidated balance
sheet of the Company and its Restricted Subsidiaries, prepared in accordance with GAAP.



     “Convert”, “Conversion” and “Converted” each refers to a conversion of
Revolving Credit Advances of one Type into Revolving Credit Advances of the other Type pursuant to
Section 2.08 or 2.09.



     “Debt” of any Person means, without duplication, (a) all indebtedness of such Person
for borrowed money, (b) all obligations of such Person for the deferred purchase price of property
or services, (c) all obligations of such Person evidenced by notes, bonds, debentures or other
similar instruments, (d) all obligations of such Person created or arising under any conditional
sale or other title retention agreement with respect to property acquired by such Person (even
though the rights and remedies of the seller or lender under such agreement in the event of default
are limited to repossession or sale of such property), (e) all obligations of such Person as lessee
under leases that have been or should be, in accordance with GAAP, recorded as capital leases, (f)
all obligations, contingent or otherwise, of such Person in respect of acceptances, letters of
credit or similar extensions of credit, (g) all obligations of such Person in respect of Hedge
Agreements, (h) all Debt of others referred to in clauses (a) through (g) above or clause (i) below
guaranteed directly or indirectly in any manner by such Person, or in effect guaranteed directly or
indirectly by such Person through an agreement (1) to pay or purchase such Debt or to advance or
supply funds for the payment or purchase of such Debt, (2) to purchase, sell or lease (as lessee or
lessor) property, or to purchase or sell services, primarily for the purpose of enabling the debtor
to make payment of such Debt or to assure the holder of such Debt against loss, (3) to supply funds
to or in any other manner invest in the debtor (including any agreement to pay for property or
services irrespective of whether such property is received or such services are rendered) or (4)
otherwise to assure a creditor against loss, and (i) all Debt referred to in clauses (a) through
(h) above secured by (or for which the holder of such Debt has an existing right, contingent or
otherwise, to be secured by) any Lien on property (including, without limitation, accounts and
contract rights) owned by such Person, even though such Person has not assumed or become liable for
the payment of such Debt.



     “Default” means any Event of Default or any event that would constitute an Event of
Default but for the requirement that notice be given or time elapse or both.



     “Default Rate” means (a) with respect to a Base Rate Advance and any other amount
owing hereunder (other than a Eurodollar Rate Advance), the Base Rate plus two percent (2%) per
annum and (b) with respect to all Eurodollar Rate Advances, the rate otherwise applicable to such
Eurodollar Rate Advance plus two percent (2%) per annum.



     “Designation Letter” has the meaning specified in Section 2.17(a).



     “Domestic Lending Office” means, with respect to any Lender, the office of such Lender
specified as its “Domestic Lending Office” in its Administrative Questionnaire or in the Assignment
and Assumption pursuant to which it became a Lender, or such other office of such Lender as such
Lender



3









 







may from time to time specify to the Company and the Agent.



     “Effective Date” has the meaning specified in Section 3.01.



     “Eligible Assignee” means (i) a Lender; (ii) an Affiliate of a Lender; (iii) a
commercial bank organized under the laws of the United States, or any State thereof, and having
total assets in excess of $15,000,000,000 and a combined capital and surplus of at least
$1,000,000,000; (iv) a savings and loan association or savings bank organized under the laws of the
United States, or any State thereof, and having total assets in excess of $15,000,000,000 and a
combined capital and surplus of at least $1,000,000,000; (v) a commercial bank organized under the
laws of any other country that is a member of the Organization for Economic Cooperation and
Development or has concluded special lending arrangements with the International Monetary Fund
associated with its General Arrangements to Borrow or of the Cayman Islands, or a political
subdivision of any such country, and having total assets in excess of $15,000,000,000 and a
combined capital and surplus of at least $1,000,000,000, so long as such bank is acting through a
branch or agency located in the United States or in the country in which it is organized or another
country that is described in this clause (v); (vi) the central bank of any country that is a member
of the Organization for Economic Cooperation and Development; provided, however,
that each Person described in clauses (ii) through (vi) shall have a short term public debt rating
of not less than A-1 by Standard & Poor’s Ratings Group or P-1 by Moody’s Investors Service, Inc.
and shall be approved by the Company, such approval not to be unreasonably withheld or delayed; and
(vii) any other Person approved by the Company, such approval not to be unreasonably withheld or
delayed; provided, however, that neither the Company nor an Affiliate of the
Company shall qualify as an Eligible Assignee.



     “Environmental Law” means any federal, state, local or foreign statute, law,
ordinance, rule, regulation, code, order, judgment, decree or judicial or agency interpretation,
policy or guidance relating to the environment, health, safety or Hazardous Materials.



     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from
time to time, and the regulations promulgated and rulings issued thereunder.



     “Eurocurrency Liabilities” has the meaning assigned to that term in Regulation D of
the Board of Governors of the Federal Reserve System, as in effect from time to time.



     “Eurodollar Lending Office” means, with respect to any Lender, the office of such
Lender specified as its “Eurodollar Lending Office” in its Administrative Questionnaire or in the
Assignment and Assumption pursuant to which it became a Lender (or, if no such office is specified,
its Domestic Lending Office), or such other office of such Lender as such Lender may from time to
time specify to the Company and the Agent.



     “Eurodollar Rate” means, for any Interest Period for each Eurodollar Rate Advance
constituting part of the same Revolving Credit Borrowing, an interest rate per annum appearing on
display page 3750 of the Telerate Markets (“Page 3750”) (or on any successor or substitute
page of such Service, or any successor to or substitute for such Service, providing rate quotations
comparable to those currently provided on such page of such Service, as determined by the Agent
from time to time for purposes of providing quotations of interest rates applicable to Dollar
deposits in the London interbank market) as of 11:00 A.M. (London time) on the date two Business
Days prior to the first day of such Interest Period as the rate for Dollar deposits having a term
comparable to such Interest Period, or in the event such offered rate is not available from Page
3750, the average (rounded to the nearer whole multiple of 1/16 of 1% per annum, if such average is
not such a multiple) of the rate per annum at which deposits in U.S. dollars are offered by the
principal office of each of the Reference Banks in London, England to prime banks in the London
interbank market at 11:00 A.M. (London time) two Business Days before the first day of such



4









 







Interest Period in an amount substantially equal to such Reference Bank’s Eurodollar Rate Advance
constituting part of such Revolving Credit Borrowing to be outstanding during such Interest Period
and for a period equal to such Interest Period. If the Eurodollar Rate does not appear on Page
3750 (or any successor page), the Eurodollar Rate for any Interest Period for each Eurodollar Rate
Advance constituting part of the same Revolving Credit Borrowing shall be determined by the Agent
on the basis of applicable rates furnished to and received by the Agent from the Reference Banks
two Business Days before the first day of such Interest Period, subject, however,
to the provisions of Section 2.08.



     “Eurodollar Rate Advance” means a Revolving Credit Advance that bears interest as
provided in Section 2.07(b).



     “Events of Default” has the meaning specified in Section 6.01.



     “Existing Credit Agreements” means (a) the $750,000,000 Third Amended and Restated
Five-Year Credit Agreement dated as of June 7, 2004 (as amended, supplemented or otherwise modified
from time to time) among the Company, the banks, financial institutions and other institutional
lenders party thereto and Bank of America, N.A., as administrative agent for the Lenders and such
other lenders, (b) the $750,000,000 Fourth Amended and Restated 364-Day Credit Agreement dated as
of May 26, 2005 (as amended, supplemented or otherwise modified from time to time) among the
Company, the banks, financial institutions and other institutional lenders party thereto and Bank
of America, N.A., as administrative agent for the Lenders and such other lenders, (c) the
$300,000,000 Revolving Credit Facility dated as of October 7, 2005 between the Company and Bank of
America, N.A. and (d) the Amended and Restated $300,000,000 Bilateral Revolving Credit Facility
dated as of October 7, 2005 between the Company and Citibank, N.A.



     “Federal Funds Rate” means, for any period, a fluctuating interest rate per annum
equal for each day during such period to the weighted average of the rates on overnight Federal
funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as
published for such day (or, if such day is not a Business Day, for the next preceding 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 of the quotations for such day on such transactions received by the Agent
from three Federal funds brokers of recognized standing selected by it.



     “Fixed Rate Advances” has the meaning specified in Section 2.03(a)(i).



     “GAAP” has the meaning specified in Section 1.03.



     “Guaranteed Obligations” has the meaning specified in Section 9.01.



     “Hazardous Materials” means petroleum and petroleum products, byproducts or breakdown
products, radioactive materials, asbestos-containing materials, radon gas and any other chemicals,
materials or substances designated, classified or regulated as being “hazardous” or “toxic”, or
words of similar import, under any federal, state, local or foreign statute, law, ordinance, rule,
regulation, code, order, judgment, decree or judicial or agency interpretation, policy or
guideline.



     “Hedge Agreements” means interest rate swap, cap or collar agreements, interest rate
future or option contracts, currency swap agreements, currency future or option contracts and other
similar agreements.



     “Honor Date” has the meaning set forth in Section 2.18(c).



5









 





     “Information Memorandum” means the Confidential Offering Memorandum dated April 2006
used by the Lead Arrangers in connection with the syndication of the Commitments.



     “Interest Period” means, for each Eurodollar Rate Advance constituting part of the
same Revolving Credit Borrowing, the period commencing on the date of such Eurodollar Rate Advance
or the date of the Conversion of any Base Rate Advance into such Eurodollar Rate Advance and ending
on the last day of the period selected by the Company pursuant to the provisions below and,
thereafter, each subsequent period commencing on the last day of the immediately preceding Interest
Period and ending on the last day of the period selected by the Company pursuant to the provisions
below. The duration of each such Interest Period shall be one, two, three, six, or (subject to
availability, as determined by the Lenders) nine or twelve months, as the Company may, upon notice
received by the Agent not later than 11:00 A.M. (New York City time) on the third Business Day
prior to the first day of such Interest Period, select; provided, however, that:




     (i) the Company may not select any Interest Period that ends after the Termination
Date;




     (ii) Interest Periods commencing on the same date for Eurodollar Rate Advances
constituting part of the same Revolving Credit Borrowing shall be of the same duration;




     (iii) whenever the last day of any Interest Period would otherwise occur on a day other
than a Business Day, the last day of such Interest Period shall be extended to occur on the
next succeeding Business Day, provided, however, that, if such extension
would cause the last day of such Interest Period to occur in the next following calendar
month, the last day of such Interest Period shall occur on the next preceding Business Day;
and




     (iv) whenever the first day of any Interest Period occurs on a day of an initial
calendar month for which there is no numerically corresponding day in the calendar month
that succeeds such initial calendar month by the number of months equal to the number of
months in such Interest Period, such Interest Period shall end on the last Business Day of
such succeeding calendar month.



     “Internal Revenue Code” means the Internal Revenue Code of 1986, as amended from time
to time, and the regulations promulgated and rulings issued thereunder.



     “ISP” means, with respect to any Letter of Credit, the “International Standby
Practices 1998” published by the Institute of International Banking Law & Practice (or such later
version thereof as may be in effect at the time of issuance).



     “Issuer Documents” means with respect to any Letter of Credit, the Letter of Credit
Application, and any other document, agreement and instrument entered into by the L/C Issuer and
the Company (or any Subsidiary) or in favor the L/C Issuer and relating to any such Letter of
Credit.



     “L/C Advance” means, with respect to each Lender, such Lender’s funding of its
participation in any L/C Borrowing in accordance with its L/C Participation Percentage.



     “L/C Borrowing” means an extension of credit resulting from a drawing under any Letter
of Credit which has not been reimbursed on the date when made or refinanced as a Revolving Credit
Borrowing.



     “L/C Credit Extension” means, with respect to any Letter of Credit, the issuance
thereof or



6









 







extension of the expiry date thereof, or the increase of the amount thereof.



     “L/C Issuer” means Citibank, N.A. in its capacity as issuer of Letters of Credit
hereunder, or any successor issuer of Letters of Credit hereunder.



     “L/C Participation Percentage” means, with respect to a Letter of Credit, a fraction
(expressed as a percentage, carried out to the ninth decimal place), the numerator of which is the
amount of the Commitment of such Lender at such time and the denominator of which is the sum of (a)
the aggregate amount of the Commitments of the Lenders at such time plus (b) the aggregate
amount of Commitments of Lenders that were terminated by the Company pursuant to Section 2.05(b) or
2.06(b) but were in effect at the time such Letter of Credit was issued; provided that if
the Commitment of each Lender to make Advances and the obligation of the L/C Issuer to make L/C
Credit Extensions have been terminated pursuant to Section 6.01, then the L/C Participation
Percentage of each Lender shall be determined based on the L/C Participation Percentage of such
Lender immediately prior to such termination and after giving effect to any subsequent assignments
made pursuant to the terms hereof.



     “L/C Obligations” means, as at any date of determination, the aggregate undrawn amount
of all outstanding Letters of Credit plus the aggregate of all Unreimbursed Amounts,
including all L/C Borrowings. For all purposes of this Agreement, if on any date of determination
a Letter of Credit has expired by its terms but any amount may still be drawn thereunder by reason
of the operation of Rule 3.14 of the ISP, such Letter of Credit shall be deemed to be “outstanding”
in the amount so remaining available to be drawn.



     “Lead Arrangers” means each of Citigroup Global Markets Inc. and J.P. Morgan
Securities Inc., in its capacity as joint lead arranger and joint bookrunner, and any successors
thereof.



     “Lenders” means the Initial Lenders and each Person that shall become a party hereto
pursuant to Sections 2.05(c), 2.06(b) or 8.07, and, as the context requires, includes the L/C
Issuer.



     “Letter of Credit” means any letter of credit issued hereunder. A Letter of Credit
may be a commercial letter of credit or a standby letter of credit.



     “Letter of Credit Application” means an application and agreement for the issuance or
amendment of a letter of credit in the form from time to time in use by the L/C Issuer.



     “Letter of Credit Expiration Date” means the day that is thirty days prior to the
Termination Date then in effect (or, if such day is not a Business Day, the next preceding Business
Day).



     “Letter of Credit Fee” has the meaning specified in Section 2.18(i).



     “Letter of Credit Sublimit” means an amount equal to the lesser of (a) the aggregate
amount of the Commitments of the Lenders and (b) $250,000,000.



     “LIBO Rate Advances” has the meaning specified in Section 2.03(a)(i).



     “Lien” means any lien, security interest or other charge or encumbrance of any kind,
or any other type of preferential arrangement, including, without limitation, the lien or retained
security title of a conditional vendor.



     “Loan Documents” means, collectively, this Agreement, the Notes, each Designation
Letter, each Issuer Document and each Termination Letter.



7









 





     “Material Adverse Change” means any material adverse change in the financial
condition, operations or properties of the Company or the Company and its Subsidiaries taken as a
whole.



     “Material Adverse Effect” means a material adverse effect on (a) the financial
condition, operations or properties of the Company or the Company and its Subsidiaries taken as a
whole, (b) the rights and remedies of the Agent or any Lender under this Agreement, any Issuer
Document or any Note or (c) the ability of the Company to perform its obligations under this
Agreement, any Issuer Document or any Note.



     “Material Subsidiary” means each Subsidiary of the Company to which is attributed five
percent or more of the net sales of the Company and its Subsidiaries taken as a whole for the most
recently ended fiscal year.



     “New Lender” means, for purposes of Section 2.05(c), an Eligible Assignee (which may
be a Lender) selected by the Company with (in the case of a New Lender that is not already a
Lender) prior consultation with the Agent.



     “Note” means a Revolving Credit Note or a Competitive Bid Note.



     “Notice of Competitive Bid Borrowing” has the meaning specified in Section 2.03(a).



     “Notice of Revolving Credit Borrowing” has the meaning specified in Section 2.02(a).



     “Person” means an individual, partnership, corporation (including a business trust),
joint stock company, trust, unincorporated association, joint venture, limited liability company or
other entity, or a government or any political subdivision or agency thereof.



     “Principal Property” means any single manufacturing or processing plant, office
building, warehouse or portion thereof owned or leased by the Company or a Restricted Subsidiary
other than a plant, office building, warehouse or portion thereof which, in the reasonable opinion
of the Company’s Board of Directors, is not of material importance to the business conducted by the
Company and its Restricted Subsidiaries as an entirety.



     “Reference Banks” means Citibank, N.A., JPMorgan Chase Bank, N.A. and Bank of America,
N.A. (and any successors thereof).



     “Register” has the meaning specified in Section 8.07(d).



     “Required Lenders” means at any time (i) Lenders having more than 50% of the aggregate
amount of the Commitments, and (ii) if the Commitments of the Lenders have been terminated, Lenders
owed more than 50% of the then aggregate unpaid principal amount of the Borrowings and L/C
Obligations.



     “Restricted Subsidiary” means at any time any Subsidiary of the Company except a
Subsidiary which is at the time an Unrestricted Subsidiary.



     “Revolving Credit Advance” means an advance by a Lender to a Borrower as part of a
Revolving Credit Borrowing and refers to a Base Rate Advance or a Eurodollar Rate Advance (each of
which shall be a “Type” of Revolving Credit Advance).



8









 





     “Revolving Credit Borrowing” means a borrowing consisting of simultaneous Revolving
Credit Advances of the same Type made by each of the Lenders pursuant to Section 2.01.



     “Revolving Credit Note” means a promissory note of a Borrower payable to the order of
any Lender, in substantially the form of Exhibit A-1 hereto, evidencing the aggregate indebtedness
of such Borrower to such Lender resulting from the Revolving Credit Advances made by such Lender.



     “Subsidiary” of any Person means any corporation, partnership, joint venture, limited
liability company, trust or estate of which (or in which) more than 50% of (a) the issued and
outstanding Voting Stock of such corporation or limited liability company (irrespective of whether
at the time capital stock or membership interests of any other class or classes of such corporation
or limited liability company shall or might have voting power upon the occurrence of any
contingency), (b) the interest in the capital or profits of such partnership or joint venture or
(c) the beneficial interest in such trust or estate is at the time directly or indirectly owned or
controlled by such Person, by such Person and one or more of its other Subsidiaries or by one or
more of such Person’s other Subsidiaries.



     “Syndication Agents” means, collectively, Citibank, N.A. and JPMorgan Chase Bank, N.A.



     “Termination Date” means May 22, 2011 or, if earlier, the date of termination in whole
of the Commitments pursuant to Section 2.05(a) or 6.01 or, in the case of any Lender whose
Commitment is extended pursuant to Section 2.06(b), the date to which such Commitment is extended;
provided in each case that if any such date is not a Business Day, the relevant Termination
Date of such Lender shall be the immediately preceding Business Day.



     “Termination Letter” has the meaning specified in Section 2.17(b).



     “Type” has the meaning specified in the definition of “Revolving Credit Advance”.



     “Unreimbursed Amount” has the meaning specified in Section 2.18(c)(i).



     “Unrestricted Subsidiary” means any Subsidiary of the Company (not at the time
designated a Restricted Subsidiary) (i) the major part of whose business consists of finance,
banking, credit, leasing, insurance, financial services, or other similar operations, or any
continuation thereof, (ii) substantially all the assets of which consist of the capital stock of
one or more such Subsidiaries, or (iii) designated as such by the Company’s Board of Directors;
provided that if any securities are outstanding under the Indenture dated as of December
14, 1994 between the Company and JPMorgan Chase Bank, N.A. as successor to The Chase Manhattan Bank
(National Association), Trustee, such designation will not constitute a violation of the terms of
such indenture. Any Subsidiary designated as a Restricted Subsidiary may be designated as an
Unrestricted Subsidiary unless such designation will constitute a violation of the terms of the
Indenture dated as of December 14, 1994 between the Company and JPMorgan Chase Bank, N.A. as
successor to The Chase Manhattan Bank (National Association), Trustee.



     “Voting Stock” means capital stock issued by a corporation, or equivalent interests in
any other Person, the holders of which are ordinarily, in the absence of contingencies, entitled to
vote for the election of directors (or persons performing similar functions) of such Person, even
if the right so to vote has been suspended by the happening of such a contingency.



     Section 1.02 Computation of Time Periods.



     In this Agreement in the computation of periods of time from a specified date to a later
specified date, the word “from” means “from and including” and the words “to” and “until” each mean
“to but excluding”.



9









 





     Section 1.03 Accounting Terms.



     All accounting terms not specifically defined herein shall be construed in accordance with
generally accepted accounting principles in the United States consistent with those applied in the
preparation of the financial statements referred to in Section 4.01(e) (“GAAP”).



     Section 1.04 Letter of Credit Amounts.



     Unless otherwise specified, all references herein to the amount of a Letter of Credit at any
time shall be deemed to mean the maximum face amount of such Letter of Credit after giving effect
to all increases thereof contemplated by such Letter of Credit or the Issuer Documents related
thereto, whether or not such maximum face amount is in effect at such time.



ARTICLE II




AMOUNTS AND TERMS OF THE ADVANCES




     Section 2.01 The Revolving Credit Advances.



     Each Lender severally agrees, on the terms and conditions hereinafter set forth, to make
Revolving Credit Advances to the Company and any Borrowing Subsidiary from time to time on any
Business Day during the period from the Effective Date until the Termination Date in an aggregate
amount not to exceed at any time outstanding such Lender’s Commitment, provided that the
aggregate amount of the Commitments of the Lenders shall be deemed used from time to time to the
extent of (a) the aggregate amount of the Competitive Bid Advances then outstanding and such deemed
use of the aggregate amount of the Commitments shall be allocated among the Lenders ratably
according to their respective Commitments (such deemed use of the aggregate amount of the
Commitments being a “Competitive Bid Reduction”) and (b) the aggregate amount of the L/C
Obligations then outstanding. Each Revolving Credit Borrowing shall be in an aggregate amount of
$10,000,000 or an integral multiple of $1,000,000 in excess thereof (or, if less, an aggregate
amount equal to the amount by which the aggregate amount of a proposed Competitive Bid Borrowing
requested by the Company exceeds the aggregate amount of Competitive Bid Advances offered to be
made by the Lenders and accepted by the Company in respect of such Competitive Bid Borrowing, if
such Competitive Bid Borrowing is made on the same date as such Revolving Credit Borrowing) and
shall consist of Revolving Credit Advances of the same Type made on the same day by the Lenders
ratably according to their respective Commitments. Within the limits of each Lender’s Commitment,
each Borrower may borrow under this Section 2.01, prepay pursuant to Section 2.10 and reborrow
under this Section 2.01.



     Section 2.02 Making the Revolving Credit Advances.




     (a) Each Revolving Credit Borrowing shall be made on notice, given not later than 11:00
A.M. (New York City time) on the third Business Day prior to the date of the proposed
Revolving Credit Borrowing in the case of a Revolving Credit Borrowing consisting of
Eurodollar Rate Advances, or the date of the proposed Revolving Credit Borrowing in the case
of a Revolving Credit Borrowing consisting of Base Rate Advances, by the Company (on its own
behalf and on behalf of any Borrowing Subsidiary) to the Agent, which shall give to each
Lender prompt notice thereof by telecopier. Each such notice of a Revolving Credit
Borrowing (a “Notice of Revolving Credit Borrowing”) shall be by telecopier,
confirmed promptly in writing,



10









 







in substantially the form of Exhibit B-1 hereto, specifying therein the requested (i) date
of such Revolving Credit Borrowing, (ii) Type of Advances constituting such Revolving Credit
Borrowing, (iii) aggregate amount of such Revolving Credit Borrowing, (iv) in the case of a
Revolving Credit Borrowing consisting of Eurodollar Rate Advances, initial Interest Period
for each such Revolving Credit Advance and (v) name of the relevant Borrower (which shall be
the Company or a Borrowing Subsidiary). Each Lender shall, before 12:00 noon (New York City
time) on the date of such Revolving Credit Borrowing, make available for the account of its
Applicable Lending Office to the Agent at the Agent’s Account, in same day funds, such
Lender’s ratable portion of such Revolving Credit Borrowing. After the Agent’s receipt of
such funds and upon fulfillment of the applicable conditions set forth in Article III, the
Agent will make such same day funds available to the relevant Borrower at such Borrower’s
account at the Agent’s address referred to in Section 8.02; provided,
however, that if, on the date of a Revolving Credit Borrowing, there are L/C
Borrowings outstanding, then the proceeds of such Borrowing, first, shall be applied to the
payment in full of any such L/C Borrowings and second, shall be made available to
the relevant Borrower as provided above.




     (b) Anything in subsection (a) above to the contrary notwithstanding, (i) the Company
may not select Eurodollar Rate Advances for any Revolving Credit Borrowing if the aggregate
amount of such Revolving Credit Borrowing is less than $25,000,000 or if the obligation of
the Lenders to make Eurodollar Rate Advances shall then be suspended pursuant to Section
2.08 or 2.12 and (ii) the Eurodollar Rate Advances may not be outstanding as part of more
than twelve separate Revolving Credit Borrowings.




     (c) Each Notice of Revolving Credit Borrowing shall be irrevocable and binding on the
relevant Borrower. In the case of any Revolving Credit Borrowing that the related Notice of
Revolving Credit Borrowing specifies is to be comprised of Eurodollar Rate Advances, the
Company shall indemnify each Lender against any loss, cost or expense incurred by such
Lender as a result of any failure to fulfill on or before the date specified in such Notice
of Revolving Credit Borrowing for such Revolving Credit Borrowing the applicable conditions
set forth in Article III, including, without limitation, any loss, cost or expense incurred
by reason of the liquidation or reemployment of deposits or other funds acquired by such
Lender to fund the Revolving Credit Advance to be made by such Lender as part of such
Revolving Credit Borrowing when such Revolving Credit Advance, as a result of such failure,
is not made on such date.




     (d) Unless the Agent shall have received notice from a Lender prior to the time of any
Revolving Credit Borrowing that such Lender will not make available to the Agent such
Lender’s ratable portion of such Revolving Credit Borrowing, the Agent may assume that such
Lender has made such portion available to the Agent on the date of such Revolving Credit
Borrowing in accordance with subsection (a) of this Section 2.02 and the Agent may, in
reliance upon such assumption, make available to the relevant Borrower on such date a
corresponding amount. If and to the extent that such Lender shall not have so made such
ratable portion available to the Agent, such Lender and such Borrower severally agree to
repay to the Agent forthwith on demand such corresponding amount together with interest
thereon, for each day from the date such amount is made available to such Borrower until the
date such amount is repaid to the Agent, at (i) in the case of a Borrower, the interest rate
applicable at the time to Revolving Credit Advances constituting such Revolving Credit
Borrowing and (ii) in the case of such Lender, the Federal Funds Rate. If such Lender shall
repay to the Agent such corresponding amount, such amount so repaid shall constitute such
Lender’s Revolving Credit Advance as part of such Revolving Credit Borrowing for purposes of
this Agreement and shall be made available in same day funds to the relevant Borrower’s
account at the Agent’s address referred to in Section 8.02.



11









 






     (e) The failure of any Lender to make the Revolving Credit Advance to be made by it as
part of any Revolving Credit Borrowing shall not relieve any other Lender of its obligation,
if any, hereunder to make its Revolving Credit Advance on the date of such Revolving Credit
Borrowing, but no Lender shall be responsible for the failure of any other Lender to make
the Revolving Credit Advance to be made by such other Lender on the date of any Revolving
Credit Borrowing.



     Section 2.03 The Competitive Bid Advances.




     (a) Each Lender severally agrees that each Borrower may make Competitive Bid Borrowings
under this Section 2.03 from time to time on any Business Day during the period from the
date hereof until the date occurring 30 days prior to the Termination Date in the manner set
forth below; provided that, following the making of each Competitive Bid Borrowing,
the aggregate amount of the Advances and L/C Obligations then outstanding shall not exceed
the aggregate amount of the Commitments of the Lenders (computed without regard to any
Competitive Bid Reduction) and provided that if any Lender does not make a Competitive Bid
Advance it shall not reduce such Lender’s obligation to make its pro rata share of a
Revolving Credit Advance.




     (i) The Company (on its own behalf and on behalf of any Borrowing Subsidiary)
may request a Competitive Bid Borrowing under this Section 2.03 by delivering to the
Agent, by telecopier, confirmed promptly in writing, a notice of a Competitive Bid
Borrowing (a “Notice of Competitive Bid Borrowing”), in substantially the
form of Exhibit B-2 hereto, specifying therein (u) the date of such proposed
Competitive Bid Borrowing, (v) the aggregate amount of such proposed Competitive Bid
Borrowing, (w) the maturity date for repayment of each Competitive Bid Advance to be
made as part of such Competitive Bid Borrowing (which maturity date may not be
earlier than the date occurring 30 days after the date of such Competitive Bid
Borrowing or later than the Termination Date), (x) the interest payment date or
dates relating thereto, (y) the name of the Borrower, and (z) any other terms to be
applicable to such Competitive Bid Borrowing, not later than 10:00 A.M. (New York
City time) (A) at least one Business Day prior to the date of the proposed
Competitive Bid Borrowing, if the Company shall specify in the Notice of Competitive
Bid Borrowing that the rates of interest to be offered by the Lenders shall be fixed
rates per annum (the Advances constituting any such Competitive Bid Borrowing being
referred to herein as “Fixed Rate Advances”) and (B) at least four Business
Days prior to the date of the proposed Competitive Bid Borrowing, if the Company
shall instead specify in the Notice of Competitive Bid Borrowing the basis to be
used by the Lenders in determining the rates of interest to be offered by them (the
Advances constituting such Competitive Bid Borrowing being referred to herein as
“LIBO Rate Advances”). The Agent shall in turn promptly notify each Lender
of each request for a Competitive Bid Borrowing received by it from the Company by
sending such Lender a copy of the related Notice of Competitive Bid Borrowing.




     (ii) Each Lender may, if, in its sole discretion, it elects to do so,
irrevocably offer to make one or more Competitive Bid Advances to the relevant
Borrower as part of such proposed Competitive Bid Borrowing at a rate or rates of
interest specified by such Lender in its sole discretion, by notifying the Agent
(which shall give prompt notice thereof to the Company), before 10:00 A.M. (New York
City time) on the date of such proposed Competitive Bid Borrowing, in the case of a
Competitive Bid Borrowing



12









 







consisting of Fixed Rate Advances and three Business Days before the date of such
proposed Competitive Bid Borrowing, in the case of a Competitive Bid Borrowing
consisting of LIBO Rate Advances, of the minimum amount and maximum amount of each
Competitive Bid Advance which such Lender would be willing to make as part of such
proposed Competitive Bid Borrowing (which amounts may, subject to the proviso to the
first sentence of this Section 2.03(a), exceed such Lender’s Commitment, if any),
the rate or rates of interest therefor and such Lender’s Applicable Lending Office
with respect to such Competitive Bid Advance; provided that if the Agent in
its capacity as a Lender shall, in its sole discretion, elect to make any such
offer, it shall notify the Company of such offer before 9:00 A.M. (New York City
time) on the date on which notice of such election is to be given to the Agent by
the other Lenders. If any Lender shall elect not to make such an offer, such Lender
shall so notify the Agent, before 10:00 A.M. (New York City time) on the date on
which notice of such election is to be given to the Agent by the other Lenders, and
such Lender shall not be obligated to, and shall not, make any Competitive Bid
Advance as part of such Competitive Bid Borrowing; provided that the failure
by any Lender to give such notice shall not cause such Lender to be obligated to
make any Competitive Bid Advance as part of such proposed Competitive Bid Borrowing.




     (iii) The Company shall, in turn, before 11:00 A.M. (New York City time) on the
date of such proposed Competitive Bid Borrowing, in the case of a Competitive Bid
Borrowing consisting of Fixed Rate Advances and before 1:00 P.M. (New York City
time) three Business Days before the date of such proposed Competitive Bid
Borrowing, in the case of a Competitive Bid Borrowing consisting of LIBO Rate
Advances, either:




     (x) cancel such Competitive Bid Borrowing by giving the Agent notice to
that effect, or




     (y) accept one or more of the offers made by any Lender or Lenders
pursuant to paragraph (ii) above, by giving notice to the Agent of the
amount of each Competitive Bid Advance (which amount shall be equal to or
greater than the minimum amount, and equal to or less than the maximum
amount, notified to the Company by the Agent on behalf of such Lender for
such Competitive Bid Advance pursuant to paragraph (ii) above) to be made by
each Lender as part of such Competitive Bid Borrowing, and reject any
remaining offers made by Lenders pursuant to paragraph (ii) above by giving
the Agent notice to that effect. If the Company accepts any offers made by
Lenders pursuant to paragraph (ii) above, such offers shall be accepted in
the order of the lowest to highest interest rates or, if two or more Lenders
offer to make Competitive Bid Advances at the same interest rate, such
offers, if any, shall be accepted in proportion to the amount offered by
each such Lender at such interest rate.




     (iv) If the Company notifies the Agent that such Competitive Bid Borrowing is
cancelled pursuant to paragraph (iii)(x) above, the Agent shall give prompt notice
thereof to the Lenders and such Competitive Bid Borrowing shall not be made.




     (v) If the Company accepts one or more of the offers made by any Lender or
Lenders pursuant to paragraph (iii)(y) above, the Agent shall in turn promptly
notify (A) each Lender that has made an offer as described in paragraph (ii) above,
of the date and aggregate amount of such Competitive Bid Borrowing and whether or
not any offer or offers made by such Lender pursuant to paragraph (ii) above have
been accepted by the



13









 







Company, (B) each Lender that is to make a Competitive Bid Advance as part of such
Competitive Bid Borrowing, of the amount of each Competitive Bid Advance to be made
by such Lender as part of such Competitive Bid Borrowing, and (C) each Lender that
is to make a Competitive Bid Advance as part of such Competitive Bid Borrowing, upon
receipt, that the Agent has received forms of documents appearing to fulfill the
applicable conditions set forth in Article III. Each Lender that is to make a
Competitive Bid Advance as part of such Competitive Bid Borrowing shall, before
12:00 noon (New York City time) on the date of such Competitive Bid Borrowing
specified in the notice received from the Agent pursuant to clause (A) of the
preceding sentence or any later time when such Lender shall have received notice
from the Agent pursuant to clause (C) of the preceding sentence, make available for
the account of its Applicable Lending Office to the Agent at the Agent’s Account, in
same day funds, such Lender’s portion of such Competitive Bid Borrowing. Upon
fulfillment of the applicable conditions set forth in Article III and after receipt
by the Agent of such funds, the Agent will make such same day funds available to the
relevant Borrower at such Borrower’s account at the Agent’s address referred to in
Section 8.02. Promptly after each Competitive Bid Borrowing the Agent will notify
each Lender of the amount of the Competitive Bid Borrowing, the consequent
Competitive Bid Reduction and the dates upon which such Competitive Bid Reduction
commenced and will terminate.




     (b) Each Competitive Bid Borrowing shall be in an aggregate amount of $10,000,000 or an
integral multiple of $1,000,000 in excess thereof and, following the making of each
Competitive Bid Borrowing, the Company shall be in compliance with the limitation set forth
in the proviso to the first sentence of subsection (a) above.




     (c) Within the limits and on the conditions set forth in this Section 2.03, each
Borrower may from time to time borrow under this Section 2.03, repay or prepay pursuant to
subsection (d) below, and reborrow under this Section 2.03, provided that a
Competitive Bid Borrowing shall not be made within three Business Days of the date of any
other Competitive Bid Borrowing.




     (d) Each Borrower shall repay to the Agent for the account of each Lender that has made
a Competitive Bid Advance to such Borrower, on the maturity date of such Competitive Bid
Advance (such maturity date being that specified by the Company for repayment of such
Competitive Bid Advance in the related Notice of Competitive Bid Borrowing delivered
pursuant to subsection (a)(i) above and provided in the Competitive Bid Note evidencing such
Competitive Bid Advance), the then unpaid principal amount of such Competitive Bid Advance.
No Borrower shall have any right to prepay any principal amount of any Competitive Bid
Advance unless, and then only on the terms, specified by the Company for such Competitive
Bid Advance in the related Notice of Competitive Bid Borrowing delivered pursuant to
subsection (a)(i) above and set forth in the Competitive Bid Note evidencing such
Competitive Bid Advance.




     (e) Each Borrower shall pay interest on the unpaid principal amount of each Competitive
Bid Advance to such Borrower from the date of such Competitive Bid Advance to the date the
principal amount of such Competitive Bid Advance is repaid in full, at the rate of interest
for such Competitive Bid Advance specified by the Lender making such Competitive Bid Advance
in its notice with respect thereto delivered pursuant to subsection (a)(ii) above, payable
on the interest payment date or dates specified by such Borrower for such Competitive Bid
Advance in the related Notice of Competitive Bid Borrowing delivered pursuant to subsection
(a)(i) above, as provided in the Competitive Bid Note evidencing such Competitive Bid
Advance.



14









 






     (f) The indebtedness of each Borrower resulting from each Competitive Bid Advance made
to such Borrower as part of a Competitive Bid Borrowing shall be evidenced by a separate
Competitive Bid Note of such Borrower payable to the order of the Lender making such
Competitive Bid Advance.



     Section 2.04 Fees.




     (a) Facility Fee. The Company agrees to pay to the Agent for the account of
each Lender a facility fee on the aggregate amount of such Lender’s Commitment irrespective
of usage from the Effective Date in the case of each Initial Lender and from the effective
date specified in the Assignment and Assumption pursuant to which it became a Lender in the
case of each other Lender until the Termination Date (on a daily basis) at a rate per annum
equal to 0.04%, payable in arrears quarterly on the last day of each June, September,
December and March, commencing June 30, 2006, and on the Termination Date.




     (b) Agent’s Fees. The Company shall pay to the Agent for its own account such
fees as may from time to time be agreed between the Company and the Agent.



     Section 2.05 Termination, Reduction or Increase of Commitments.




     (a) The Company shall have the right, upon at least three Business Days’ notice to the
Agent, to terminate in whole or reduce ratably in part the unused portions of the respective
Commitments of the Lenders; provided that each partial reduction shall be in the
aggregate amount of $25,000,000 or an integral multiple of $1,000,000 in excess thereof and
provided further that the aggregate amount of the Commitments of the Lenders shall
not be reduced to an amount that is less than the aggregate principal amount of the Advances
and L/C Obligations then outstanding.




     (b) If any Lender shall make a demand under Section 2.11 or 2.14, the Company shall
have the right, upon at least ten Business Days’ notice, to terminate in full the Commitment
of such Lender or to demand that such Lender assign to one or more Persons all of its rights
and obligations under this Agreement in accordance with Section 8.07. If the Company shall
elect to terminate in full the Commitment of any Lender pursuant to this Section 2.05(b),
the Company shall (i) pay to such Lender, on the effective date of such Commitment
termination, an amount equal to the aggregate outstanding principal amount of the Advances
owing to such Lender, together with accrued interest thereon to the date of payment of such
principal amount and all other amounts payable to such Lender under this Agreement and (ii)
Cash Collateralize such Lender’s L/C Participation Percentage, whereupon such Lender shall
cease to be a party hereto.




     (c) (i) Not more than once in any calendar year, the Company may propose to increase
the aggregate amount of the Commitments by an aggregate amount of $25,000,000 or an integral
multiple of $1,000,000 in excess thereof (a “Proposed Aggregate Commitment
Increase”) in the manner set forth below, provided that:




     (1) no Default shall have occurred and be continuing either as of the
Increase Notice Date (as hereinafter defined) or as of the related Increase
Date (as hereinafter defined); and




     (2) after giving effect to any such increase, the aggregate amount of
the Commitments shall not exceed $2,000,000,000.



15









 






     (ii) The Company may request an increase in the aggregate amount of the
Commitments by delivering to the Agent a notice (an “Increase Notice”; the
date of delivery thereof to the Agent being the “Increase Notice Date”)
specifying (1) the Proposed Aggregate Commitment Increase, (2) the proposed date
(the “Increase Date”) on which the Commitments would be so increased (which
Increase Date may not be fewer than 30 nor more than 60 days after the Increase
Notice Date) and (3) the New Lenders, if any, to whom the Company desires to offer
the opportunity to commit to all or a portion of the Proposed Aggregate Commitment
Increase. The Agent shall in turn promptly notify each Lender of the Company’s
request by sending each Lender a copy of such notice.




     (iii) Not later than the date five days after the Increase Notice Date, the
Agent shall notify each New Lender, if any, identified in the related Increase
Notice of the opportunity to commit to all or any portion of the Proposed Aggregate
Commitment Increase. Each such New Lender may irrevocably commit to all or a
portion of the Proposed Aggregate Commitment Increase (such New Lender’s
“Proposed New Commitment”) by notifying the Agent (which shall give prompt
notice thereof to the Company) before 11:00 A.M. (New York City time) on the date
that is 10 days after the Increase Notice Date; provided that:




     (1) the Proposed New Commitment of each New Lender shall be in an
amount not less than $25,000,000; and




     (2) each New Lender that submits a Proposed New Commitment shall enter
into an agreement in form and substance satisfactory to the Company and the
Agent pursuant to which such New Lender shall undertake a Commitment (and,
if any such New Lender is already a Lender, its Commitment shall be in
addition to such Lender’s Commitment hereunder on such date), and shall pay
to the Agent a processing and recordation fee of $5,000.




     (iv) If the aggregate Proposed New Commitments of all of the New Lenders shall
be less than the Proposed Aggregate Commitment Increase, then (unless the Company
otherwise requests) the Agent shall, on or prior to the date that is 15 days after
the Increase Notice Date, notify each Lender of the opportunity to so commit to all
or any portion of the Proposed Aggregate Commitment Increase not committed to by New
Lenders pursuant to Section 2.05(c) (iii). Each Lender may, if, in its sole
discretion, it elects to do so, irrevocably offer to commit to all or a portion of
such remainder (such Lender’s “Proposed Increased Commitment”) by notifying
the Agent (which shall give prompt notice thereof to the Company) not later than
11:00 A.M. (New York City time) on the date five days before the Increase Date.




     (v) If the aggregate amount of Proposed New Commitments and Proposed Increased
Commitments (such aggregate amount, the “Total Committed Increase”) equals
or exceeds $25,000,000, then, subject to the conditions set forth in Section
2.05(c)(i):




     (1) effective on and as of the Increase Date, the aggregate amount of
the Commitments shall be increased by the Total Committed Increase
(provided that the aggregate amount of the Commitments shall in no
event be increased pursuant to this Section 2.05(c) to more than
$2,000,000,000) and shall be allocated among the New Lenders and the Lenders
as provided in Section 2.05(c)(vi); and




16









 








     (2) on the Increase Date, if any Revolving Credit Advances are
then outstanding, the Company shall borrow Revolving Credit Advances from
all or certain of the Lenders and/or (subject to compliance by the Company
with Section 8.04(c)) prepay Revolving Credit Advances of all or certain of
the Lenders such that, after giving effect thereto, the Revolving Credit
Advances (including, without limitation, the Types and Interest Periods
thereof) shall be held by the Lenders (including for such purposes New
Lenders) ratably in accordance with their respective Commitments.




If the Total Committed Increase is less than $25,000,000, then the aggregate amount of the
Commitments shall not be changed pursuant to this Section 2.05(c).




     (vi) The Total Committed Increase shall be allocated among New Lenders having
Proposed New Commitments and Lenders having Proposed Increased Commitments as
follows:




     (1) If the Total Committed Increase shall be at least $25,000,000 and
less than or equal to the Proposed Aggregate Commitment Increase, then (x)
the initial Commitment of each New Lender shall be such New Lender’s
Proposed New Commitment and (y) the Commitment of each Lender shall be
increased by such Lender’s Proposed Increased Commitment.




     (2) If the Total Committed Increase shall be greater than the Proposed
Aggregate Commitment Increase, then the Total Committed Increase shall be
allocated:




     (x) first to New Lenders (to the extent of their
respective Proposed New Commitments) in such a manner as the Company
shall agree; and




     (y) then to Lenders on a pro rata basis based on the
ratio of each Lender’s Proposed Increased Commitment (if any) to the
aggregate amount of the Proposed Increased Commitments of all of the
Lenders.




     (vii) No increase in the Commitments contemplated hereby shall become effective
until the Agent shall have received (x) Revolving Credit Notes payable to each New
Lender and each other Lender whose Commitment is being increased, and (y) evidence
satisfactory to the Agent (including an update of the opinion of counsel provided
pursuant to Section 3.01(g)(iv)) that such increases in the Commitments, and
borrowings thereunder, have been duly authorized by all necessary corporate and
other action on the part of the Company.




     Section 2.06 Repayment of Revolving Credit Advances: Extension of Termination Date.




     (a) The Company shall repay to the Agent for the ratable account of the Lenders on the
Termination Date the aggregate principal amount of the Revolving Credit Advances then
outstanding, and all accrued but unpaid interest, fees and all other amounts due hereunder.




     (b) The Company may, by written notice to the Agent (which shall promptly notify the
Lenders) not more than 90 nor less than 60 days prior to each anniversary of the date hereof



17









 






(such anniversary date following such notice, the “Extension Date”), request that
the Termination Date then in effect (the “Existing Termination Date”) be extended
for a period of one year. Such request shall be irrevocable and binding upon the Company.
The Agent shall promptly notify each Lender of such request. If a Lender agrees, acting in
its sole discretion, to so extend its Commitment (an “Extending Lender”), it will
notify the Agent, in writing, of its decision to do so not more than 30 nor less than 20
days before the Extension Date; it being understood that failure to give such notice shall
be deemed a decision not to extend. If any Lender fails to accept the Company’s request for
extension of the Termination Date (a “Declining Lender”), the Company shall have the right,
prior to the Extension Date, to require any Declining Lender to assign in full its rights
and obligations under this Agreement to an Eligible Assignee (including any Extending
Lender) designated by the Company that agrees to accept all of such rights and obligations
and agrees to such extension (a “Replacement Lender”), provided that (i) such
assignment is otherwise in compliance with Section 8.07, (ii) such Declining Lender receives
payment in full of the principal amount of all Advances owing to such Declining Lender,
together with accrued interest thereon to the date of such payment of principal and all
other amounts payable to such Declining Lender under this Agreement and (iii) any such
assignment shall be effective on the Extension Date. If (i) there are no Declining Lenders
or all of the Declining Lenders are replaced by Replacement Lenders as set forth above and
(ii) no Default shall have occurred and be continuing immediately prior to the Extension
Date, the Termination Date shall be extended by one year (except that, if the date on which
the Termination Date is to be extended is not a Business Day, such Termination Date as so
extended shall be the next preceding Business Day), and the Agent shall promptly notify the
Company of such extension. If there are any Declining Lenders that are not replaced in
accordance with the terms above, the Company may (i) withdraw its request for an extension
and the Existing Termination Date will remain in effect or (ii) provided that no Default
shall have occurred and be continuing immediately prior to the Extension Date, on the
Extension Date (x) pay any such Declining Lenders in full for all principal, interest and
other amounts owing to such Declining Lender under this Agreement, reduce the aggregate
Commitments of the Lenders by the amount of the Commitment of such Declining Lenders and (y)
Cash Collateralize such Lender’s L/C Participation Percentage, whereupon such Lender shall
cease to be a party hereto, and extend the Termination Date for one year at the reduced
aggregate Commitment amount.




     Section 2.07 Interest on Revolving Credit Advances.




     Each Borrower shall pay interest on the unpaid principal amount of each Revolving Credit
Advance made to such Borrower owing to each Lender from the date of such Revolving Credit Advance
until such principal amount shall be paid in full, at the following rates per annum:




     (a) Base Rate Advances. During such periods as such Revolving Credit Advance
is a Base Rate Advance, a rate per annum equal at all times to the Base Rate in effect from
time to time, payable in arrears quarterly on the last day of each March, June, September
and December during such periods and on the date such Base Rate Advance shall be Converted
or paid in full.




     (b) Eurodollar Rate Advances. During such periods as such Revolving Credit
Advance is a Eurodollar Rate Advance, a rate per annum equal at all times during each
Interest Period for such Revolving Credit Advance to the sum of (x) the Eurodollar Rate for
such Interest Period for such Revolving Credit Advance plus (y) 0.135%, payable in
arrears on the last day of such Interest Period and, if such Interest Period has a duration
of more than three months, on each day that occurs during such Interest Period every three
months from the first day of such Interest Period and on the date such Eurodollar Rate
Advance shall be Converted or paid in full.



18









 






     (c) Default Rate. Upon the occurrence and during the continuance of an Event
of Default pursuant to Section 6.01(a), the principal of and, to the extent permitted by
law, interest on the Advances and any other amounts owing hereunder or under the other Loan
Documents (including without limitation fees and expenses) shall bear interest, payable on
demand, at the Default Rate.




     Section 2.08 Interest Rate Determination.




     (a) If the Eurodollar Rate does not appear on Page 3750 (or any successor page), each
Reference Bank agrees to furnish to the Agent timely information for the purpose of
determining each Eurodollar Rate. If the Eurodollar Rate does not appear on Page 3750 (or
any successor page), and if any one or more of the Reference Banks shall not furnish such
timely information to the Agent for the purpose of determining any such interest rate, the
Agent shall determine such interest rate on the basis of timely information furnished by the
remaining Reference Banks. The Agent shall give prompt notice to the Company and the
Lenders of the applicable interest rate determined by the Agent for purposes of Section
2.07, and the rate, if any, furnished by each Reference Bank for the purpose of determining
the interest rate under Section 2.07(b).




     (b) If, due to a major disruption in the interbank funding market with respect to any
Eurodollar Rate Advances, the Required Lenders notify the Agent that the Eurodollar Rate for
any Interest Period for such Advances will not adequately reflect the cost to such Required
Lenders of making, funding or maintaining their respective Eurodollar Rate Advances for such
Interest Period, the Agent shall forthwith so notify the Borrower and the Lenders, whereupon
(i) each Eurodollar Rate Advance will automatically, on the last day of the then existing
Interest Period therefor, Convert into a Base Rate Advance, and (ii) the obligation of the
Lenders to make, or to Convert Revolving Credit Advances into, Eurodollar Rate Advances
shall be suspended until the Agent shall notify the Company and the Lenders that the
circumstances causing such suspension no longer exist.




     (c) If the Company shall fail to select the duration of any Interest Period for any
Eurodollar Rate Advances in accordance with the provisions contained in the definition of
“Interest Period” in Section 1.01, the Agent will forthwith so notify the Company and the
Lenders and the Company will be deemed to have selected an Interest Period of one month.




     (d) On the date on which the aggregate unpaid principal amount of Eurodollar Rate
Advances constituting any Borrowing shall be reduced, by payment or prepayment or otherwise,
to less than $10,000,000, such Advances shall automatically Convert into Base Rate Advances.




     (e) Upon the occurrence and during the continuance of any Event of Default, (i) each
Eurodollar Rate Advance will automatically, on the last day of the then existing Interest
Period therefor, Convert into a Base Rate Advance and (ii) the obligation of the Lenders to
make, or to Convert Advances into, Eurodollar Rate Advances shall be suspended.




     (f) If the Eurodollar Rate does not appear on Page 3750 (or any successor page) and
fewer than two Reference Banks furnish timely information to the Agent for determining the
Eurodollar Rate for any Eurodollar Rate Advances,




     (i) the Agent shall forthwith notify the Company and the Lenders that the
interest rate cannot be determined for such Eurodollar Rate Advances,



19









 






     (ii) each such Advance will automatically, on the last day of the then existing
Interest Period therefor, Convert into a Base Rate Advance (or if such Advance is
then a Base Rate Advance, will continue as a Base Rate Advance), and




     (iii) the obligation of the Lenders to make, or to Convert Revolving Credit
Advances into, Eurodollar Rate Advances shall be suspended until the Agent shall
notify the Company and the Lenders that the circumstances causing such suspension no
longer exist.




     Section 2.09 Optional Conversion of Revolving Credit Advances.




     The Company may on any Business Day, upon notice given to the Agent not later than 11:00 A.M.
(New York City time) on the third Business Day prior to the date of the proposed Conversion and
subject to the provisions of Sections 2.08 and 2.12, Convert all Revolving Credit Advances of one
Type constituting the same Borrowing into Revolving Credit Advances of the other Type;
provided, however, that any Conversion of Eurodollar Rate Advances into Base Rate
Advances shall be made only on the last day of an Interest Period for such Eurodollar Rate
Advances, any Conversion of Base Rate Advances into Eurodollar Rate Advances shall be in an amount
not less than the minimum amount specified in Section 2.02(b) and no Conversion of any Revolving
Credit Advances shall result in more separate Revolving Credit Borrowings than permitted under
Section 2.02(b). Each such notice of a Conversion shall, within the restrictions specified above,
specify (i) the date of such Conversion, (ii) the Revolving Credit Advances to be Converted, and
(iii) if such Conversion is into Eurodollar Rate Advances, the duration of the initial Interest
Period for each such Advance. Each notice of Conversion shall be irrevocable and binding on the
Company.




     Section 2.10 Optional Prepayments of Revolving Credit Advances.




     The Company may, upon at least one Business Day’s notice, in the case of Base Rate Advances,
and three Business Days’ notice, in the case of Eurodollar Rate Advances, to the Agent stating the
proposed date and aggregate principal amount of the prepayment, and if such notice is given the
Company shall, prepay the outstanding principal amount of the Revolving Credit Advances
constituting part of the same Revolving Credit Borrowing in whole or ratably in part, together with
accrued interest to the date of such prepayment on the principal amount prepaid; provided,
however, that (x) each partial prepayment shall be in an aggregate principal amount of
$10,000,000 or an integral multiple of $1,000,000 in excess thereof and (y) in the event of any
such prepayment of a Eurodollar Rate Advance, the Company shall be obligated to reimburse the
Lenders in respect thereof pursuant to Section 8.04(c).




     Section 2.11 Increased Costs.




     (a) If, due to either (i) the introduction of or any change in any law or regulation or
in the interpretation or administration of any law or regulation by any governmental
authority charged with the interpretation or administration thereof or (ii) the compliance
with any guideline or request from any central bank or other governmental authority that
would be complied with generally by similarly situated banks acting reasonably (whether or
not having the force of law), there shall be any increase in the cost to any Lender of
agreeing to make or making, funding or maintaining Eurodollar Rate Advances or LIBO Rate
Advances or (as the case may be) issuing or participating in Letters of Credit, in either
case by an amount deemed by such Lender to be material, then the Company shall from time to
time, upon demand by such Lender (with a copy of such demand to the Agent), pay to the Agent
for the account of such Lender additional amounts sufficient to compensate such Lender for
such increased cost. A certificate as to the amount of



20









 






such increased cost, submitted to
the Company and the Agent by such Lender, shall be conclusive and binding for all purposes,
absent manifest error. Notwithstanding the foregoing, no Lender shall be entitled to
request compensation under this paragraph with respect to any Competitive Bid Advance if the
change giving rise to such request was applicable to such Lender at the time of submission
of such Lender’s offer to make such Competitive Bid Advance.




     (b) If, due to either (i) the introduction of or any change in or interpretation of any
law or regulation or (ii) compliance with any guideline or request from any central bank or
other governmental or regulatory authority which becomes effective after the date hereof,
there shall be any increase in the amount of capital required or expected to be maintained
by any Lender or any corporation controlling such Lender and that the amount of such capital
is increased by or based upon the existence of such Lender’s Advances or commitment to lend
or (as the case may be) issue or participate in Letters of Credit hereunder and other
commitments of this type by an amount deemed by such Lender to be material, then, upon
demand by such Lender (with a copy of such demand to the Agent), the Company shall pay to
the Agent for the account of such Lender, from time to time as specified by such Lender,
additional amounts sufficient to compensate such Lender or such corporation in the light of
such circumstances, to the extent that such Lender reasonably determines such increase in
capital to be allocable to the existence of such Lender’s Advances or commitment to lend or
(as the case may be) issue or participate in Letters of Credit hereunder. A certificate as
to such amounts submitted to the Company and the Agent by such Lender shall be conclusive
and binding for all purposes as to the calculations therein, absent manifest error. Such
certificate shall be in reasonable detail and shall certify that the claim for additional
amounts referred to therein is generally consistent with such Lender’s treatment of
similarly situated customers of such Lender whose transactions with such Lender are
similarly affected by the change in circumstances giving rise to such payment, but such
Lender shall not be required to disclose any confidential or proprietary information
therein.




     Section 2.12 Illegality.




     Notwithstanding any other provision of this Agreement, if any Lender shall notify the Agent
(and provide to the Company an opinion of counsel to the effect) that the introduction of or any
change in or in the interpretation of any law or regulation makes it unlawful, or any central bank
or other governmental authority asserts that it is unlawful, for such Lender or its Eurodollar
Lending Office to perform its obligations hereunder to make Eurodollar Rate Advances or LIBO Rate
Advances or to fund or maintain Eurodollar Rate Advances or LIBO Rate Advances hereunder, (i) each
Eurodollar Rate Advance or LIBO Rate Advance made by such Lender, as the case may be, will
automatically, upon such demand, Convert into a Base Rate Advance or an Advance that bears interest
at the rate set forth in Section 2.07(a), as the case may be, and (ii) the obligation of such
Lender to make, or to Convert Revolving Credit Advances into, Eurodollar Rate Advances shall be
suspended until such Lender shall notify the Company and the Agent that the circumstances causing
such suspension no longer exist.




     Section 2.13 Payments and Computations.




     (a) Each Borrower shall make each payment hereunder and under the Notes not later than
11:00 A.M. (New York City time) on the day when due in U.S. dollars to the Agent at the
Agent’s Account in same day funds without deduction, off-set or counterclaim. The Agent
will promptly thereafter cause to be distributed like funds relating to the payment of
principal, interest, facility fees or letter of credit fees ratably (other than amounts
payable pursuant to Section 2.02(c), 2.03, 2.05(b), 2.06(b), 2.11, 2.14, 2.18(j) or 8.04(c))
to the Lenders for the account of their respective Applicable Lending Offices, and like
funds relating to the payment of any other amount payable to any Lender to such Lender for
the account of its Applicable Lending Office, in



21









 






each case to be applied in accordance with
the terms of this Agreement. Upon its acceptance of an Assignment and Assumption and
recording of the information contained therein in the Register pursuant to Section 8.07(d),
from and after the effective date specified in such Assignment and Assumption, the Agent
shall make all payments hereunder and under the Notes in respect of the interest assigned
thereby to the Lender assignee thereunder, and the parties to such Assignment and Assumption
shall make all appropriate adjustments in such payments for periods prior to such effective
date directly between themselves.




     (b) All computations of interest based on the Base Rate and of facility fees shall be
made by the Agent on the basis of a year of 365 or 366 days, as the case may be, and all
computations of interest based on the Eurodollar Rate or the Federal Funds Rate shall be
made by the Agent on the basis of a year of 360 days, in each case for the actual number of
days (including the first day but excluding the last day) occurring in the period for which
such interest or fees are payable. Each determination by the Agent of an interest rate
hereunder shall be conclusive and binding for all purposes, absent manifest error.




     (c) Whenever any payment hereunder or under the Notes shall be stated to be due on a
day other than a Business Day, such payment shall be made on the next succeeding Business
Day, and such extension of time shall in such case be included in the computation of payment
of interest or fees, as the case may be; provided, however, that, if such
extension would cause payment of interest on or principal of Eurodollar Rate Advances or
LIBO Rate Advances to be made in the next following calendar month, such payment shall be
made on the next preceding Business Day.




     (d) Unless the Agent shall have received notice from the Company prior to the date on
which any payment is due to the Lenders hereunder that a Borrower will not make such payment
in full, the Agent may assume that such Borrower has made such payment in full to the Agent
on such date and the Agent may, in reliance upon such assumption, cause to be distributed to
each Lender on such due date an amount equal to the amount then due such Lender. If and to
the extent such Borrower shall not have so made such payment in full to the Agent, each
Lender shall repay to the Agent forthwith on demand such amount distributed to such Lender
together with interest thereon, for each day from the date such amount is distributed to
such Lender until the date such Lender repays such amount to the Agent, at the Federal Funds
Rate.




     Section 2.14 Taxes.




     (a) Each Lender is exempt from any withholding imposed under the laws of the United
States in respect of any fees, interest or other payments to which it is entitled pursuant
to this Agreement or the Notes (the “Income”) because (i) the Lender is organized
under the laws of the United States; (ii) the Income is effectively connected with the
conduct of a trade or business within the United States within the meaning of Section 871 of
the Internal Revenue Code; or (iii) the Income is eligible for an exemption by reason of a
tax treaty. The Agent is exempt from any withholding tax imposed under the laws of the
United States in respect of the Income because the Agent is organized under the laws of the
United States.




     (b) Each Lender organized under the laws of a jurisdiction outside the United States
(each, a “Foreign Lender”) shall, on or prior to the date of its execution and
delivery of this Agreement in the case of each Initial Lender, and on the date of the
Assignment and Assumption pursuant to which it became a Lender in the case of each other
Foreign Lender and from time to time thereafter if requested in writing by the Company or
the Agent, provide the Agent and the relevant Borrower with Internal Revenue Service Form
W-8BEN or W-8ECI, as appropriate, or



22









 






any successor or other form prescribed by the Internal
Revenue Service, certifying that such Foreign Lender is exempt or entitled to a reduced rate
of United States withholding tax on any Income that is the subject of such forms. If the
form provided by a Foreign Lender at the time such Foreign Lender first becomes a party to
this Agreement indicates a United States interest withholding tax rate in excess of zero, or
in excess of the rate applicable to the Foreign Lender assignor on the date of the
Assignment and Assumption pursuant to which it became a Foreign Lender, in the case of each
other Foreign Lender, withholding tax at such rate shall be considered excluded from Taxes
as defined in Section 2.14(c).




     (c) Based on Section 2.14(a) and (b), any and all payments by any Borrower hereunder or
under the Notes shall be made free and clear of and without deduction for any present United
States federal income withholding taxes imposed on a Foreign Lender under the Internal
Revenue Code (such withholding taxes being hereinafter referred to as “Taxes”).




     (d) If, as a result of the enactment, promulgation, execution or ratification of, or
any change in or amendment to, any United States law or any tax treaty (or in the
application or official interpretation of any law or any tax treaty) that occurs on or after
the date a Foreign Lender first becomes a party to this Agreement (a “Change in
Law”), a Foreign Lender cannot comply with Section 2.14(b) or, if despite such
compliance, any Borrower shall be required to deduct any Taxes from or in respect of any
Income, then: (i) the sum payable to such Foreign Lender shall be increased as may be
necessary so that after making all required deductions for such Taxes (including deductions
applicable to additional sums payable under this Section 2.14) such Foreign Lender receives
an amount equal to the sum it would have received had no such deductions been made, (ii)
such Borrower shall make such deductions and (iii) such Borrower shall pay the full amount
deducted to the relevant taxation authority or other authority in accordance with applicable
law. Notwithstanding the foregoing, each Borrower shall be entitled to pay any Taxes in any
lawful manner so as to reduce any deductions and such Foreign Lender shall to the extent it
is reasonably able provide any documentation or file any forms as may be required by the
Internal Revenue Service or any other foreign governmental agency. In addition, if any
Foreign Lender or the Agent (in lieu of such Foreign Lender), as the case may be, is
required to pay directly any Taxes as a result of a Change in Law because a Borrower cannot
or does not legally or timely do so, the Company shall indemnify such Foreign Lender or
Agent for payment of such Taxes, without duplication of, or increase in, the amount of Taxes
otherwise due to the Foreign Lender.




     (e) In addition, the Company agrees to pay any present or future stamp or documentary
taxes or any other excise or property taxes, charges or similar levies (excluding any income
or franchise taxes, business taxes or capital taxes of any nature) that arise from the
execution, delivery or registration of, or otherwise with respect to, this Agreement or the
Notes (hereinafter referred to as “Other Taxes”). If a Lender is required to pay
directly Other Taxes because a Borrower cannot or does not legally or timely do so, the
Company shall indemnify such Lender for such payment of Other Taxes. Notwithstanding
anything to the contrary in this paragraph (e), each Lender shall upon the written request
of and at the expense of the Company use reasonable efforts to change the jurisdiction of
its Applicable Lending Office if the making of such change would avoid the need for, or
reduce the amount of, any such Other Taxes that may thereafter accrue and would not, in the
reasonable judgment of such Lender, cause imposition on such Lender of any material legal or
regulatory burdens.




     (f) Within 30 days after the date of any payment of Taxes or foreign withholding taxes,
the Company shall furnish to the Agent, at its address referred to in Section 8.02, the
original or a certified copy of a receipt evidencing payment thereof. Prior to making any
payment



23









 






hereunder or under the Notes by or on behalf of any Borrower through an account or
branch outside the United States or on behalf of any Borrower by a payor that is not a
United States person (a “Foreign Payment”), such Borrower shall determine that no
foreign withholding taxes are payable in respect thereof, and at its expense, shall furnish,
or shall cause such payor to furnish, to the Agent, at such address, a certificate from each
appropriate taxing authority, or an opinion of counsel acceptable to the Agent, in either
case stating that such Foreign Payment is exempt from or not subject to foreign withholding
taxes. Each Lender shall cooperate with each Borrower’s efforts described in this
subsection by providing to the extent reasonably within its means any forms requested by
such Borrower substantiating an exemption from foreign withholding taxes required by any
governmental agency. For purposes of this subsection (f), the terms “United States” and
“United States person” shall have the meaning specified in Section 7701 of the Internal
Revenue Code. If, as a result of the enactment, promulgation, execution or ratification of,
or any change in or amendment to, any applicable foreign law or any tax treaty (or in the
application or official interpretation of any law or any tax treaty) that occurs on or after
the date a tax opinion is rendered pursuant to the terms of this subsection, and which
renders such tax opinion incorrect as to the absence of any foreign withholding tax (the
“Foreign Change in Law”), any Borrower shall be required to deduct any foreign
withholding taxes from or in respect of any Income, then: (i) the sum payable to the
applicable Lender shall be increased as may be necessary so that after making all required
deductions for foreign withholding taxes (including deductions applicable to additional sums
payable under this Section 2.14) such Lender receives an amount equal to the sum it would
have received had no such deductions been made, (ii) such Borrower shall make such
deductions and (iii) such Borrower shall pay the full amount deducted to the relevant
taxation authority or other authority in accordance with applicable law. Notwithstanding
the foregoing, each Borrower shall be entitled to pay any foreign withholding taxes in any
lawful manner so as to reduce any deductions and such Lender shall to the extent it is
reasonably able provide any documentation or file any forms as may be required by the
Internal Revenue Service or any other foreign governmental agency. In addition, if any
Lender is required to pay directly any foreign withholding tax in respect of any Foreign
Payments made pursuant to the Note held by such Lender or this Agreement because a Borrower
cannot or does not legally or timely do so, the Company shall indemnify such Lender for
payment of such tax.




     (g) For any period with respect to which a Lender has failed to comply with the
requirements of subsection (b) or (f) relating to certain forms intended to reduce
withholding taxes (other than if such failure is due to a Change in Law or a Foreign Change
in Law), such Lender shall not be entitled to indemnification under subsection (d) or (f).




     (h) Upon a Change in Law or the imposition of any foreign withholding tax in respect of
Foreign Payments, a Lender shall, upon the written request of and at the expense of the
Company, use reasonable efforts to change the jurisdiction of its Applicable Lending Office
if the making of such a change would avoid the need for, or reduce the amount of, any such
taxes that may thereafter accrue and would not, in the reasonable judgment of such Lender,
cause the imposition on such Lender of any material legal or regulatory burdens.




     (i) Without prejudice to the survival of any other agreement of any Borrower hereunder,
the agreements and obligations of the Company contained in this Section 2.14 shall survive
the payment in full of principal and interest hereunder and under the Notes until the
applicable statute of limitations relating to the payment of any Taxes under Section 2.14(d)
has expired.




     (j) Any request by any Lender for payment of any amount under this Section 2.14 shall
be accompanied by a certification that such Lender’s claim for said amount is generally



24









 






consistent with such Lender’s treatment of similarly situated customers of such Lender whose
transactions with such Lender are similarly affected by the change in circumstances giving
rise to such payment, but such Lender shall not be required to disclose any confidential or
proprietary information therein.




     Section 2.15 Sharing of Payments, Etc.




     If any Lender shall obtain any payment (whether voluntary, involuntary, through the exercise
of any right of set-off, or otherwise) on account of the Revolving Credit Advances owing to it
(other than pursuant to Section 2.05(b), 2.06(b), 2.11, 2.14 or 8.04(c)) or the participations in
L/C Obligations held by it in excess of its ratable share thereof, such Lender shall forthwith
purchase from the other Lenders such participations in the Revolving Credit Advances owing to them
and/or such subparticipations in the participations in L/C Obligations held by them, as the case
may be, as shall be necessary to cause such purchasing Lender to share the excess payment ratably
with each of them; provided, however, that if all or any portion of such excess
payment is thereafter recovered from such purchasing Lender, such purchase from each Lender shall
be rescinded and such Lender shall repay to the purchasing Lender the purchase price to the extent
of such recovery together with an amount equal to such Lender’s ratable share (according to the
proportion of (i) the amount of such Lender’s required repayment to (ii) the total amount so
recovered from the purchasing Lender) of any interest or other amount paid or payable by the
purchasing Lender in respect of the total amount so recovered. Each Borrower agrees that any
Lender so purchasing a participation or subparticipation from another Lender pursuant to this
Section 2.15 may, to the fullest extent permitted by law, exercise all its rights of payment
(including the right of set-off) with respect to such participation as fully as if such Lender were
the direct creditor of such Borrower in the amount of such participation or subparticipation. This
Section 2.15 shall continue to apply after any conversion of the Revolving Credit Advances pursuant
to Section 2.06(b).




     Section 2.16 Use of Proceeds.




     The proceeds of the Advances and the Letters of Credit shall be available (and the Company
agrees that such proceeds shall be used) to repay outstanding commercial paper issued by the
Company and its subsidiaries and for general corporate purposes of the Company and its
Subsidiaries, including working capital, capital investments and acquisitions.




     Section 2.17 Borrowings by Borrowing Subsidiaries.




     (a) The Company may, at any time or from time to time upon not less than 10 Business
Days’ notice in the case of any Subsidiary so designated after the Effective Date,
designate one or more Subsidiaries as Borrowers hereunder by furnishing to the Agent a
letter (a “Designation Letter”) in duplicate, in substantially the form of Exhibit
D, duly completed and executed by the Company and such Subsidiary. The Agent shall promptly
notify each Lender of the Company’s notice of such pending designation by the Company and
the identity of the respective Subsidiary. Following the giving of any notice pursuant to
this Section 2.17(a), if the designation of such Designated Subsidiary obligates the Agent
or any Lender to comply with “know your customer” or similar identification procedures in
circumstances where the necessary information is not already available to it, the Company
shall, promptly upon the request of the Agent or any Lender, supply such documentation and
other evidence as is reasonably requested by the Agent or any Lender in order for the Agent
or such Lender to carry out and be satisfied it has complied with the results of all
necessary “know your customer” or other similar checks under all applicable laws and
regulations. Upon any such designation of a Subsidiary, such Subsidiary shall be a
Borrowing Subsidiary and a Borrower entitled to borrow Revolving Credit Advances and
Competitive Bid Advances on and subject to the terms and conditions of this



25









 






Agreement.




If the Company shall designate as a Designated Subsidiary hereunder any Subsidiary not
organized under the laws of the United States or any State thereof, any Lender may,
with notice to the Agent and the Company, fulfill its Commitment by causing an
Affiliate of such Lender to act as the Lender in respect of such Designated Subsidiary (and
such Lender shall, to the extent of Advances made to and participations in Letters of Credit
issued for the account of such Designated Subsidiary, be deemed for all purposes hereof to
have pro tanto assigned such Advances and participations to such Affiliate in compliance
with the provisions of Section 8.07.




As soon as practicable after receiving notice from the Company or the Agent of the Company’s
intent to designate a Subsidiary as a Designated Borrower, and in any event no later than
five Business Days after the delivery of such notice, for a Designated Subsidiary that is
organized under the laws of a jurisdiction other than of the United States or a political
subdivision thereof, any Lender that may not legally lend to, establish credit for the
account of and/or do any business whatsoever with such Designated Subsidiary directly or
through an Affiliate of such Lender as provided in the immediately preceding paragraph (a
“Protesting Lender”) shall so notify the Company and the Agent in writing. With respect to
each Protesting Lender, the Company shall, effective on or before the date that such
Designated Subsidiary shall have the right to borrow hereunder, either (A) notify the Agent
and such Protesting Lender that the Commitments of such Protesting Lender shall be
terminated; provided that such Protesting Lender shall have received payment of an
amount equal to the outstanding principal of its Advances and/or Letter of Credit
reimbursement obligations, 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 Company or the relevant Designated Subsidiary (in the case
of all other amounts), or (B) cancel its request to designate such Subsidiary as a
“Designated Subsidiary” hereunder.




     (b) If all principal of and interest on all Advances made to any Borrowing Subsidiary
have been paid in full, the Company may terminate the status of such Borrowing Subsidiary as
a Borrower hereunder by furnishing to the Agent a letter (a “Termination Letter”) in
substantially the form of Exhibit E, duly completed and executed by the Company. Any
Termination Letter furnished hereunder shall be effective upon receipt by the Agent, which
shall promptly notify the Lenders, whereupon the Lenders shall, upon payment in full of all
amounts owing by such Borrower hereunder, promptly deliver to the Company (through the
Agent) the Notes, if any, of such former Borrower. Notwithstanding the foregoing, the
delivery of a Termination Letter with respect to any Borrower shall not terminate (i) any
obligation of such Borrower that remains unpaid at the time of such delivery (including
without limitation any obligation arising thereafter in respect of such Borrower under
Section 2.11 or 2.14) or (ii) the obligations of the Company under Article IX with respect
to any such unpaid obligations; provided that if the status of such Borrowing Subsidiary has
been terminated as aforesaid because the Company has sold or transferred its interest in
such Subsidiary, and the Company so certifies to the Agent at the time of the delivery of
such Termination Letter, and subject to payment of said principal and interest, (i) such
Subsidiary shall automatically, upon the effectiveness of the delivery, of such Termination
Letter and certification, cease to have any obligation under this Agreement or the Notes and
(ii) the Company shall automatically be deemed to have unconditionally assumed, as primary
obligor, and hereby agrees to pay and perform, all of such obligations.



26









 






          Section 2.18 Letters of Credit.




          (a) The Letter of Credit Commitment.




     (i) Subject to the terms and conditions set forth herein, (A) the L/C Issuer
agrees, in reliance upon the agreements of the other Lenders set forth in this
Section 2.18, (1) from time to time on any Business Day during the period from the
Effective Date to the Letter of Credit Expiration Date, to issue Letters of Credit
for the account of the Company or any of its Subsidiaries, and to amend or extend
Letters of Credit previously issued by it, in accordance with subsection (b) below,
and (2) to honor drawings under the Letters of Credit; and (B) the Lenders severally
agree to participate in Letters of Credit issued for the account of the Company or
its Subsidiaries and any drawings thereunder; provided that after giving
effect to any L/C Credit Extension with respect to any Letter of Credit, (x) the sum
of (1) the aggregate principal amount of the Advances outstanding plus (2) all
outstanding L/C Obligations shall not exceed the aggregate amount of the Commitments
of the Lenders, (y) the aggregate principal amount of the Revolving Credit Advances
of any Lender, plus such Lender’s L/C Participation Percentage of the
outstanding L/C Obligations shall not exceed such Lender’s Commitment or (z) the
outstanding L/C Obligations shall not exceed the Letter of Credit Sublimit. Each
request by the Company for the issuance or amendment of a Letter of Credit shall be
deemed to be a representation by the Company that the L/C Credit Extension so
requested complies with the conditions set forth in the proviso to the preceding
sentence. Within the foregoing limits, and subject to the terms and conditions
hereof, the Company’s ability to obtain Letters of Credit shall be fully revolving,
and accordingly the Company may, during the foregoing period, obtain Letters of
Credit to replace Letters of Credit that have expired or that have been drawn upon
and reimbursed.




     (ii) The L/C Issuer shall not issue any Letter of Credit if:




     (A) subject to Section 2.18(b)(iii), the expiry date of such requested
Letter of Credit would occur more than twelve months after the date of
issuance or last extension, unless the Required Lenders have approved such
expiry date; or




     (B) the expiry date of such requested Letter of Credit would occur
after the Letter of Credit Expiration Date, unless all the Lenders have
approved such expiry date.




     (iii) The L/C Issuer shall not be under any obligation to issue any Letter of
Credit if:




     (A) any order, judgment or decree of any governmental authority or
arbitrator shall by its terms purport to enjoin or restrain the L/C Issuer
from issuing such Letter of Credit, or any laws, rules regulations and
orders applicable to the L/C Issuer or any request or directive (whether or
not having the force of law) from any governmental authority with
jurisdiction over the L/C Issuer shall prohibit, or request that the L/C
Issuer refrain from, the issuance of letters of credit generally or such
Letter of Credit in particular or shall impose upon the L/C Issuer with
respect to such Letter of Credit any restriction, reserve or capital
requirement (for which the L/C Issuer is not otherwise compensated
hereunder) not in effect on the date of this Agreement, or shall impose upon
the L/C Issuer any unreimbursed loss, cost or expense which was not
applicable on the date of



27









 






this Agreement and which the L/C Issuer in good
faith deems material to it;




     (B) the issuance of such Letter of Credit would violate any laws, rules
regulations and orders or one or more policies of the L/C Issuer;




     (C) except as otherwise agreed by the Agent and the L/C Issuer, such
Letter of Credit is in an initial face amount less than $100,000, in the
case of a commercial Letter of Credit, or $100,000, in the case of a standby
Letter of Credit;




     (D) such Letter of Credit is to be denominated in a currency other than
U.S. dollars;




     (E) such Letter of Credit contains any provisions for automatic
reinstatement of the stated amount after any drawing thereunder; or




     (F) a default of any Lender’s obligations to fund under Section 2.18(c)
exists or any Lender has otherwise failed to comply with any of its funding
obligations hereunder, unless the L/C Issuer has entered into satisfactory
arrangements with the Borrower or such Lender to eliminate the L/C Issuer’s
risk with respect to such Lender.




     (iv) The L/C Issuer shall not amend any Letter of Credit if the L/C Issuer
would not be permitted at such time to issue such Letter of Credit in its amended
form under the terms hereof.




     (v) The L/C Issuer shall be under no obligation to amend any Letter of Credit
if (A) the L/C Issuer would have no obligation at such time to issue such Letter of
Credit in its amended form under the terms hereof, or (B) the beneficiary of such
Letter of Credit does not accept the proposed amendment to such Letter of Credit.




     (b) Procedures for Issuance and Amendment of Letters of Credit.




     (i) Each Letter of Credit shall be issued or amended, as the case may be, upon
the request of the Company delivered to the L/C Issuer (with a copy to the Agent) in
the form of a Letter of Credit Application, appropriately completed and signed by
the Company. Such Letter of Credit Application must be received by the L/C Issuer
and the Agent not later than 11:00 a.m. at least five (5) Business Days (or such
later date and time as the Agent and the L/C Issuer may agree in a particular
instance in their sole discretion) prior to the proposed issuance date or date of
amendment, as the case may be. In the case of a request for an initial issuance of
a Letter of Credit, such Letter of Credit Application shall specify in form and
detail satisfactory to the L/C Issuer: (A) the proposed issuance date of the
requested Letter of Credit (which shall be a Business Day); (B) the amount thereof;
(C) the expiry date thereof; (D) the name and address of the beneficiary thereof;
(E) the documents to be presented by such beneficiary in case of any drawing
thereunder; (F) the full text of any certificate to be presented by such beneficiary
in case of any drawing thereunder; and (G) such other matters as the L/C Issuer may
require. In the case of a request for an amendment of any outstanding Letter of
Credit, such Letter of Credit Application shall specify in form and detail
satisfactory to the L/C Issuer (A) the Letter of Credit to be amended; (B) the
proposed date of amendment thereof (which shall be a Business Day); (C) the nature
of the proposed amendment; and



28









 






(D) such other matters as the L/C Issuer may require.
Additionally, the Company shall furnish to the L/C Issuer and the Agent such other
documents and information pertaining to such requested Letter of Credit issuance or
amendment, including any Issuer Documents, as the L/C Issuer or the Agent may
require.




     (ii) Promptly after receipt of any Letter of Credit Application, the L/C Issuer
will confirm with the Agent (by telephone or in writing) that the Agent has received
a copy of such Letter of Credit Application from the Company and, if not, the L/C
Issuer will provide the Agent with a copy thereof. Unless the L/C Issuer has
received written notice from any Lender, the Agent or the Company, at least one
Business Day prior to the requested date of issuance or amendment of the applicable
Letter of Credit, that one or more applicable conditions contained in Article
III shall not be satisfied, then, subject to the terms and conditions hereof,
the L/C Issuer shall, on the requested date, issue a Letter of Credit for the
account of the Company or the applicable Subsidiary or enter into the applicable
amendment, as the case may be, in each case in accordance with the L/C Issuer’s
usual and customary business practices. Immediately upon the issuance of each
Letter of Credit, each Lender shall be deemed to, and hereby irrevocably and
unconditionally agrees to, purchase from the L/C Issuer a risk participation in such
Letter of Credit in an amount equal to the product of such Lender’s L/C
Participation Percentage times the amount of such Letter of Credit. Each
Lender acknowledges and agrees that its participation in each Letter of Credit will
be automatically adjusted to reflect such Lender’s L/C Participation Percentage at
each time such Lender’s Revolving Credit Commitment is amended pursuant to a
Commitment Increase in accordance with Section 2.05(c), an assignment in accordance
with Section 8.07 or otherwise pursuant to this Agreement.




     (iii) Promptly after its delivery of any Letter of Credit or any amendment to a
Letter of Credit to an advising bank with respect thereto or to the beneficiary
thereof, the L/C Issuer will also deliver to the Company and the Agent a true and
complete copy of such Letter of Credit or amendment.




     (c) Drawings and Reimbursements; Funding of Participations.




     (i) Upon receipt from the beneficiary of any Letter of Credit of any notice of
drawing under such Letter of Credit, the L/C Issuer shall notify the Company and the
Agent thereof. Not later than 2:00 p.m. on the date of any payment by the L/C
Issuer under a Letter of Credit (each such date, an “Honor Date”) (provided
that the L/C Issuer notifies the Company of the related drawing prior to 12:00 noon
on such Honor Date), the Company shall reimburse the L/C Issuer through the Agent in
an amount equal to the amount of such drawing; if such notice is received by the
Company after 12:00 noon on the Honor Date, the Company shall make such
reimbursement to the L/C Issuer on or before 11:00 a.m. on the next succeeding
Business Day after the Honor Date together with interest on such amount accrued from
the Honor Date at the Base Rate. If the Company fails to so reimburse the L/C
Issuer by such time, the Agent shall promptly notify each Lender of the Honor Date,
the amount of the unreimbursed drawing (the “Unreimbursed Amount”), and the
amount of such Lender’s L/C Participation Percentage thereof. In such event, the
Company shall be deemed to have requested a Revolving Credit Borrowing of Base Rate
Advances to be disbursed on the Honor Date in an amount equal to the Unreimbursed
Amount, without regard to the minimum and multiples specified in Section 2.01 for
the principal amount of Revolving Credit Borrowings, but subject to the amount of
the unutilized portion of the aggregate amount



29









 






of the Commitments of all the
Lenders and the conditions set forth in Section 3.02 (other than the delivery of a
Notice of Revolving Credit Borrowing). Any notice given by the L/C Issuer or the
Agent pursuant to this Section 2.18(c)(i) may be given by telephone if immediately
confirmed in writing; provided that the lack of such an immediate
confirmation shall not affect the conclusiveness or binding effect of such notice.




     (ii) Each Lender (including the Lender acting as L/C Issuer) shall upon any
notice pursuant to Section 2.18(c)(i) make funds available to the Agent for the
account of the L/C Issuer at the Agent’s Account in an amount equal to its L/C
Participation Percentage of the Unreimbursed Amount not later than 1:00 p.m. on the
Business Day specified in such notice by the Agent, whereupon, subject to the
provisions of Section 2.18(c)(iii), each Lender that so makes funds available shall
be deemed to have made a Base Rate Advance to the Company in such amount. The Agent
shall remit the funds so received to the L/C Issuer.




     (iii) With respect to any Unreimbursed Amount that is not fully refinanced by a
Revolving Credit Borrowing of Base Rate Advances because the conditions set forth in
Section 3.02 cannot be satisfied or for any other reason, the Borrower shall
be deemed to have incurred from the L/C Issuer an L/C Borrowing in the amount of the
Unreimbursed Amount that is not so refinanced, which L/C Borrowing shall be due and
payable on demand (together with interest) and shall bear interest at the Base Rate.
In such event, each Lender’s payment to the Agent for the account of the L/C Issuer
pursuant to Section 2.18(c)(ii) shall be deemed payment in respect of its
participation in such L/C Borrowing and shall constitute an L/C Advance from such
Lender in satisfaction of its participation obligation under this Section 2.18.




     (iv) Until each Lender funds its Revolving Credit Advance or L/C Advance
pursuant to this Section 2.18(c) to reimburse the L/C Issuer for any amount drawn
under any Letter of Credit, interest in respect of such Lender’s L/C Participation
Percentage of such amount shall be solely for the account of the L/C Issuer.




     (v) Each Lender’s obligation to make Revolving Credit Advances or L/C Advances
to reimburse the L/C Issuer for amounts drawn under Letters of Credit, as
contemplated by this Section 2.18(c), shall be absolute and unconditional and shall
not be affected by any circumstance, including (A) any set-off, counterclaim,
recoupment, defense or other right which such Lender may have against the L/C
Issuer, the Company or any other Person for any reason whatsoever; (B) the
occurrence or continuance of a Default, or (C) any other occurrence, event or
condition, whether or not similar to any of the foregoing; provided,
however, that each Lender’s obligation to make Revolving Credit Advances
pursuant to this Section 2.18(c) is subject to the conditions set forth in Section
3.02 (other than delivery by the Company of a Notice of Revolving Credit Borrowing).
No such making of an L/C Advance shall relieve or otherwise impair the obligation
of the Company to reimburse the L/C Issuer for the amount of any payment made by the
L/C Issuer under any Letter of Credit, together with interest as provided herein.




     (vi) If any Lender fails to make available to the Agent for the account of the
L/C Issuer any amount required to be paid by such Lender pursuant to the foregoing
provisions of this Section 2.18(c) by the time specified in Section 2.18(c)(ii), the
L/C Issuer shall be entitled to recover from such Lender (acting through the Agent),
on demand, such amount with interest thereon for the period from the date such
payment is



30









 






required to the date on which such payment is immediately available to
the L/C Issuer at a rate per annum equal to the Federal Funds Rate from time to time
in effect. A certificate of the L/C Issuer submitted to any Lender (through the
Agent) with respect to any amounts owing under this clause (vi) shall be conclusive
absent manifest error.




     (d) Repayment of Participations.




     (i) At any time after the L/C Issuer has made a payment under any Letter of
Credit and has received from any Lender such Lender’s L/C Advance in respect of such
payment in accordance with Section 2.18(c), if the Agent receives for the account of
the L/C Issuer any payment in respect of the related Unreimbursed Amount or interest
thereon (whether directly from the Company or otherwise, including proceeds of cash
collateral applied thereto by the Agent), the Agent will distribute to such Lender
its L/C Participation Percentage thereof (appropriately adjusted, in the case of
interest payments, to reflect the period of time during which such Lender’s L/C
Advance was outstanding) in the same funds as those received by the Agent.




     (ii) If any payment received by the Agent for the account of the L/C Issuer
pursuant to Section 2.18(c)(i) is subsequently invalidated, declared to be
fraudulent or preferential, set aside or required (including pursuant to any
settlement entered into by the Agent or such Lender in its discretion) to be repaid
to a trustee, receiver or any other party, in connection with any proceeding under
any law relating to bankruptcy, insolvency or reorganization or relief of debtors or
otherwise (including pursuant to any settlement entered into by the L/C Issuer in
its discretion), each Lender shall pay to the Agent for the account of the L/C
Issuer its L/C Participation Percentage thereof on demand of the Agent, plus
interest thereon from the date of such demand to the date such amount is returned by
such Lender, at a rate per annum equal to the Federal Funds Rate from time to time
in effect.




     (e) Obligations Absolute. The obligation of the Company to reimburse the L/C
Issuer for each drawing under each Letter of Credit and to repay each L/C Borrowing shall be
absolute, unconditional and irrevocable, and shall be paid strictly in accordance with the
terms of this Agreement under all circumstances, including the following:




     (i) any lack of validity or enforceability of such Letter of Credit, this
Agreement or any other Loan Documents;




     (ii) the existence of any claim, counterclaim, set-off, defense or other right
that the Company or any Subsidiary may have at any time against any beneficiary or
any transferee of such Letter of Credit (or any Person for whom any such beneficiary
or any such transferee may be acting), the L/C Issuer or any other Person, whether
in connection with this Agreement, the transactions contemplated hereby or by such
Letter of Credit or any agreement or instrument relating thereto, or any unrelated
transaction;




     (iii) any draft, demand, certificate or other document presented by the
beneficiary under such Letter of Credit proving to be forged, fraudulent or
insufficient in any respect or any statement therein being untrue or inaccurate in
any respect; or any loss or delay in the transmission or otherwise of any document
required in order to make a drawing under such Letter of Credit;




     (iv) any payment by the L/C Issuer under such Letter of Credit against



31









 






presentation of a draft or certificate that does not strictly comply with the terms
of such Letter of Credit; or any payment made by the L/C Issuer under such Letter of
Credit to any Person purporting to be a trustee in bankruptcy, debtor-in-possession,
assignee for the benefit of creditors, liquidator, receiver or other representative
of or successor to any beneficiary or any transferee of such Letter of Credit,
including any arising in connection with any proceeding under any law relating to
bankruptcy, insolvency or reorganization or relief of debtors; or




     (v) any other circumstance or happening whatsoever, whether or not similar to
any of the foregoing, including any other circumstance that might otherwise
constitute a defense available to, or a discharge of, the Company or any Subsidiary.




     The Company shall promptly examine a copy of each Letter of Credit and each amendment
thereto that is delivered to it and, in the event of any claim of noncompliance with the
Company’s instructions or other irregularity, the Company will immediately notify the L/C
Issuer. The Company shall be conclusively deemed to have waived any such claim against the
L/C Issuer and its correspondents unless such notice is given as aforesaid.




     (f) Role of L/C Issuer. Each Lender and the Company agree that, in paying any
drawing under a Letter of Credit, the L/C Issuer shall not have any responsibility to obtain
any document (other than any sight draft, certificates and documents expressly required by
such Letter of Credit) or to ascertain or inquire as to the validity or accuracy of any such
document or the authority of the Person executing or delivering any such document. None of
the L/C Issuer, the Agent or any of the respective correspondents, participants or assignees
of the L/C Issuer shall be liable to any Lender for (i) any action taken or omitted in
connection herewith at the request or with the approval of the Lenders or the Required
Lenders, as applicable; (ii) any action taken or omitted in the absence of gross negligence
or willful misconduct; or (iii) the due execution, effectiveness, validity or enforceability
of any document or instrument related to any Letter of Credit or Letter of Credit
Application. The Company hereby assumes all risks of the acts or omissions of any
beneficiary or transferee with respect to its use of any Letter of Credit; provided,
however, that this assumption is not intended to, and shall not, preclude the
Company’s pursuing such rights and remedies as it may have against the beneficiary or
transferee at law or under any other agreement. None of the L/C Issuer, the Agent or any of
the respective correspondents, participants or assignees of the L/C Issuer, shall be liable
or responsible for any of the matters described in clauses (i) through (v) of Section
2.18(e); provided, however, that anything in such clauses to the contrary
notwithstanding, the Company may have a claim against the L/C Issuer, and the L/C Issuer may
be liable to the Company, to the extent, but only to the extent, of any direct, as opposed
to consequential or exemplary, damages suffered by the Company which the Company proves were
caused by the L/C Issuer’s willful misconduct or gross negligence or the L/C Issuer’s
willful failure to pay under any Letter of Credit after the presentation to it by the
beneficiary of a sight draft and certificate(s) strictly complying with the terms and
conditions of a Letter of Credit unless the L/C Issuer is prevented or prohibited from so
paying as a result of any order or directive of any court or other governmental authority.
In furtherance and not in limitation of the foregoing, the L/C Issuer may accept documents
that appear on their face to be in order, without responsibility for further investigation,
regardless of any notice or information to the contrary, and the L/C Issuer shall not be
responsible for the validity or sufficiency of any instrument transferring or assigning or
purporting to transfer or assign a Letter of Credit or the rights or benefits thereunder or
proceeds thereof, in whole or in part, which may prove to be invalid or ineffective for any
reason.




     (g) Cash Collateral. Upon the request of the Agent, (i) if the L/C Issuer has
honored



32









 






any full or partial drawing request under any Letter of Credit and such drawing has
resulted in an L/C Borrowing, or (ii) if, as of the Letter of Credit Expiration Date, any
Letter of Credit for any reason remains outstanding and partially or wholly undrawn, the
Company shall immediately Cash Collateralize the then outstanding amount of all L/C
Obligations (determined as of the date of such L/C Borrowing or the Letter of Credit
Expiration Date, as the case may be). Sections 2.05, 2.06(b) and 6.01 set forth certain
additional requirements to deliver Cash Collateral hereunder. For purposes of this Section
2.18, Section 2.05, Section 2.06(b) and Section 6.01, “Cash Collateralize” means to
pledge and deposit with or deliver to the Agent, for the benefit of the L/C Issuer and the
Lenders, as collateral for the L/C Obligations, cash or deposit account balances pursuant to
documentation in form and substance satisfactory to the Agent and the L/C Issuer (which
documents are hereby consented to by the Lenders). Derivatives of such term have
corresponding meanings. The Company hereby grants to the Agent, for the benefit of the L/C
Issuer and the Lenders, a security interest in all such cash, deposit accounts and all
balances therein and all proceeds of the foregoing. Cash Collateral shall be maintained in
blocked, non-interest bearing deposit accounts with the Agent.




     (h) Applicability of ISP98 and UCP. Unless otherwise expressly agreed by the
L/C Issuer and the Company when a Letter of Credit is issued, (i) the rules of the ISP shall
apply to each standby Letter of Credit, and (ii) the rules of the Uniform Customs and
Practice for Documentary Credits, as most recently published by the International Chamber of
Commerce at the time of issuance shall apply to each commercial Letter of Credit.




     (i) Letter of Credit Fees. The Company shall pay to the Agent for the account
of each Lender in accordance with its L/C Participation Percentage a Letter of Credit fee
(the “Letter of Credit Fee”) for each Letter of Credit equal to 0.135% times
the daily maximum amount available to be drawn under such Letter of Credit (whether or not
such maximum amount is then in effect under such Letter of Credit). Letter of Credit Fees
shall be (i) computed on a quarterly basis in arrears and (ii) due and payable on the first
Business Day after the end of each March, June, September and December, commencing with the
first such date to occur after the issuance of such Letter of Credit, on the Letter of
Credit Expiration Date and thereafter on demand. Notwithstanding anything to the contrary
contained herein, upon the request of the Required Lenders, while any Event of Default
exists, all Letter of Credit Fees shall accrue at the Default Rate.




     (j) Fronting Fee and Documentary and Processing Charges Payable to L/C Issuer.
The Company shall pay directly to the L/C Issuer, for its own account, (i) a one-time
fronting fee with respect to each commercial Letter of Credit in an amount equal to 0.115%
per annum times the amount of such commercial Letter of Credit, due and payable at the time
of issuance and (ii) a fronting fee with respect to each standby Letter of Credit in an
amount equal to 0.115% per annum on the daily maximum amount available to be drawn
thereunder (whether or not such maximum amount is then in effect under such Letter of
Credit), due and payable quarterly in arrears on the first Business Day after the end of
each March, June, September and December, commencing with the first such date to occur after
the issuance of such standby Letter of Credit, on the Letter of Credit Expiration Date and
thereafter on demand. In addition, the Company shall pay directly to the L/C Issuer for its
own account the customary issuance, presentation, amendment and other processing fees, and
other standard costs and charges, of the L/C Issuer relating to letters of credit as from
time to time in effect. Such customary fees and standard costs and charges are due and
payable on demand and are nonrefundable.




     (k) Conflict with Issuer Documents. In the event of any conflict between the
terms hereof and the terms of any Issuer Document, the terms hereof shall control.



33









 






     (l) Letters of Credit Issued for Subsidiaries. Notwithstanding that a Letter
of Credit issued or outstanding hereunder is in support of any obligations of, or is for the
account of, a Subsidiary, the Company shall be obligated to reimburse the L/C Issuer
hereunder for any and all drawings under such Letter of Credit. The Company hereby
acknowledges that the issuance of Letters of Credit for the account of Subsidiaries inures
to the benefit of the Company, and that the Company’s business derives substantial benefits
from the businesses of such Subsidiaries.



ARTICLE III



CONDITIONS TO EFFECTIVENESS AND LENDING





     Section 3.01 Conditions Precedent to Effectiveness of Sections 2.01, 2.03 and 2.18.




     Sections 2.01, 2.03 and 2.18 of this Agreement shall become effective on and as of the first
date (the “Effective Date”) on which the following conditions precedent have been
satisfied:




     (a) As of the Effective Date, there shall have occurred no Material Adverse Change
since December 31, 2005 that has not been publicly disclosed.




     (b) As of the Effective Date, there shall exist no action, suit, investigation,
litigation or proceeding affecting the Company or any of its Subsidiaries pending or, to the
knowledge of the Company’s executive officers, threatened before any court, governmental
agency or arbitrator that (i) could be reasonably likely to have a Material Adverse Effect
or (ii) could reasonably be likely to affect the legality, validity or enforceability of
this Agreement or any Note or the consummation of the transactions contemplated hereby.




     (c) As of the Effective Date, nothing shall have come to the attention of the Lenders
during the course of their due diligence investigation to lead them to believe that the
Information Memorandum was or has become misleading, incorrect or incomplete in any material
respect.




     (d) As of the Effective Date, all governmental and third party consents and approvals
necessary in connection with the transactions contemplated hereby shall have been obtained
(without the imposition of any conditions that are not acceptable to the Lenders) and shall
remain in effect.




     (e) As of the Effective Date, the Company shall have paid all accrued fees and expenses
of the Agent, the Syndication Agents, the Lead Arrangers and the Lenders (including the
accrued fees and expenses of counsel to the Agent).




     (f) On the Effective Date, the following statements shall be true and the Agent shall
have received for the account of each Lender a certificate signed by a duly authorized
officer of the Company, dated the Effective Date, stating that:




     (i) The representations and warranties contained in Section 4.01 are correct on
and as of the Effective Date, and




     (ii) No event has occurred and is continuing that constitutes a Default.




     (g) The Agent shall have received on or before the Effective Date the following,



34









 






each
dated such date, in form and substance satisfactory to the Agent and (except for the
Revolving Credit Notes) in sufficient copies for each Lender:




     (i) The Revolving Credit Notes payable to the order of each Lender.




     (ii) Certified copies of the resolutions of the Board of Directors of the
Company approving this Agreement and the Notes, and of all documents evidencing
other necessary corporate action and governmental approvals, if any, with respect to
this Agreement and the Notes, including, without limitation, copies of the articles
of incorporation and bylaws of the Company.




     (iii) A certificate of the Secretary or an Assistant Secretary of the Company
certifying the names and true signatures of the officers of the Company authorized
to sign this Agreement and the Notes and the other documents to be delivered
hereunder.




     (iv) A favorable opinion of Thomas H. Tamoney, Jr., Vice President and
Associate General Counsel of the Company, in form and substance reasonably
satisfactory to the Agent and the Lenders.




     (v) A copy of the Indenture dated as of December 14, 1994 between the Company
and JPMorgan Chase Bank, N.A. as successor to The Chase Manhattan Bank (National
Association), Trustee (and all amendments thereto).




     (h) The Agent shall have received evidence of (i) the termination of the commitments to
make extensions of credit to the Company and the Borrowing Subsidiaries by the lenders party
to each of the Existing Credit Agreements and (ii) payment in full of all amounts owing
under each of the Existing Credit Agreements.




     Section 3.02 Conditions Precedent to Each Revolving Credit Borrowing and Each Letter of
Credit Extension.




     The obligation of each Lender to make a Revolving Credit Advance on the occasion of each
Revolving Credit Borrowing and the obligations of the L/C Issuer to make any Letter of Credit
Extension shall be subject to the conditions precedent that the Effective Date shall have occurred
and on the date of such Revolving Credit Borrowing or such Letter of Credit Extension:




     (a) the following statements shall be true (and each of the giving of the applicable
Notice of Revolving Credit Borrowing and the acceptance by any Borrower of the proceeds of
such Revolving Credit Borrowing and each submission of a Letter of Credit Application shall
constitute a representation and warranty by the Company and such Borrower that on the date
of such Borrowing or Letter of Credit Extension, as the case may be, such statements are
true):




     (i) The representations and warranties contained in Section 4.01 (except the
representations set forth in the last sentence of subsection (e) thereof and in
subsection (f) thereof (other than clause (ii) thereof)) are correct on and as of
the date of such Revolving Credit Borrowing or Letter of Credit Extension, as the
case may be, before and after giving effect to such Revolving Credit Borrowing or
Letter of Credit Extension, as the case may be, and to the application of the
proceeds therefrom, as though made on and as of such date, and




     (ii) No event has occurred and is continuing, or would result from such



35









 






Revolving Credit Borrowing or Letter of Credit Extension, as the case may be, or
from the application of the proceeds therefrom, that constitutes a Default; and




     (b) the Agent shall have received the Notice of Revolving Credit Borrowing and/or the
L/C Issuer shall have received the Letter of Credit Application, as the case may be, and
such other approvals, opinions or documents as any Lender through the Agent may reasonably
request, and, in the case of the first Borrowing by a Borrowing Subsidiary, the Agent shall
have received such Revolving Credit Notes, corporate documents, resolutions and legal
opinions relating to such Borrowing Subsidiary as the Agent may reasonably require.




     Section 3.03 Conditions Precedent to Each Competitive Bid Borrowing.




     The obligation of each Lender that is to make a Competitive Bid Advance on the occasion of a
Competitive Bid Borrowing to make such Competitive Bid Advance as part of such Competitive Bid
Borrowing is subject to the conditions precedent that (i) the Agent shall have received the written
confirmatory Notice of Competitive Bid Borrowing with respect thereto, (ii) on or before the date
of such Competitive Bid Borrowing, but prior to such Competitive Bid Borrowing, the Agent shall
have received a Competitive Bid Note payable to the order of such Lender for each of the one or
more Competitive Bid Advances to be made by such Lender as part of such Competitive Bid Borrowing,
in a principal amount equal to the principal amount of the Competitive Bid Advance to be evidenced
thereby and otherwise on such terms as were agreed to for such Competitive Bid Advance in
accordance with Section 2.03, and (iii) on the date of such Competitive Bid Borrowing the following
statements shall be true (and each of the giving of the applicable Notice of Competitive Bid
Borrowing and the acceptance by any Borrower of the proceeds of such Competitive Bid Borrowing
shall constitute a representation and warranty by the Company and such Borrower that on the date of
such Competitive Bid Borrowing such statements are true):




     (a) The representations and warranties contained in Section 4.01 (except the
representations set forth in the last sentence of subsection (e) thereof and in subsection
(f) thereof (other than clause (ii) thereof)) are correct on and as of the date of such
Competitive Bid Borrowing, before and after giving effect to such Competitive Bid Borrowing
and to the application of the proceeds therefrom, as though made on and as of such date,




     (b) No event has occurred and is continuing, or would result from such Competitive Bid
Borrowing or from the application of the proceeds therefrom, that constitutes a Default, and




     (c) No event has occurred and no circumstance exists as a result of which the
information concerning the Company that has been provided to the Agent and each Lender by
the Company in connection herewith would include an untrue statement of a material fact or
omit to state any material fact or any fact necessary to make the statements contained
therein, in the light of the circumstances under which they were made, not misleading.




     Section 3.04 Determinations Under Section 3.01.




     For purposes of determining compliance with the conditions specified in Section 3.01, each
Lender shall be deemed to have consented to, approved or accepted or to be satisfied with each
document or other matter required thereunder to be consented to or approved by or acceptable or
satisfactory to the Lenders unless an officer of the Agent responsible for the transactions
contemplated by this Agreement shall have received notice from such Lender prior to the proposed
Effective Date, as notified by the Company to the Lenders, specifying its objection thereto. The
Agent shall promptly notify the Lenders of the occurrence of the Effective Date.



36









 





ARTICLE IV



REPRESENTATIONS AND WARRANTIES





     Section 4.01 Representations and Warranties of the Company.




     The Company represents and warrants as follows:




     (a) The Company is a corporation duly organized, validly existing and in good standing
under the laws of the State of North Carolina.




     (b) The execution, delivery and performance by the Company of this Agreement and the
Notes, and the consummation of the transactions contemplated hereby, are within the
Company’s corporate powers, have been duly authorized by all necessary corporate action, and
do not contravene (i) the Company’s charter or by-laws or (ii) any law or any contractual
restriction binding on or materially affecting the Company.




     (c) No authorization or approval or other action by, and no notice to or filing with,
any governmental authority or regulatory body or any other third party is required for the
due execution, delivery and performance by the Company of this Agreement or the Notes.




     (d) This Agreement has been, and each of the Notes when delivered hereunder will have
been, duly executed and delivered by the Company. This Agreement is, and each of the Notes
when delivered hereunder will be, the legal, valid and binding obligation of the Company
enforceable against the Company in accordance with their respective terms.




     (e) The Consolidated balance sheet of the Company and its Subsidiaries as at December
31, 2005, and the related Consolidated statements of income and cash flows and common
shareholders’ equity of the Company and its Subsidiaries for the fiscal year then ended,
accompanied by an opinion of KPMG LLP, independent registered public accounting firm,
present fairly, in all material respects, the Consolidated financial condition of the
Company and its Subsidiaries as at such date and the Consolidated results of the operations
of the Company and its Subsidiaries for the year ended on such date, all in accordance with
United States generally accepted accounting principles consistently applied. Since December
31, 2005, there has been no Material Adverse Change.




     (f) There is no pending or threatened action, suit, investigation, litigation or
proceeding affecting the Company before any court, governmental agency or arbitrator that
(i) would be reasonably likely to have a Material Adverse Effect or (ii) would reasonably be
likely to affect the legality, validity or enforceability of this Agreement or any Note or
the consummation of the transactions contemplated hereby.




     (g) No proceeds of any Advance or Letter of Credit will be used to acquire any equity
security of a class that is registered pursuant to Section 12 of the Securities Exchange Act
of 1934, other than equity securities issued by the Company.




     (h) The Company is not engaged in the business of extending credit for the purpose of
purchasing or carrying margin stock (within the meaning of Regulation U issued by the Board
of Governors of the Federal Reserve System), and no proceeds of any Advance or Letter of
Credit



37









 






will be used to purchase or carry any margin stock or to extend credit to others for
the purpose of purchasing or carrying any margin stock.




     (i) Following application of the proceeds of each Advance and each Letter of Credit,
not more than 25 percent of the value of the assets (either of any Borrower only or of the
Company and its Subsidiaries on a consolidated basis) subject to the provisions of Section
5.02(a) or (b) or subject to any restriction contained in any agreement or instrument
between the Company and any Lender or any Affiliate of any Lender relating to Debt and
within the scope of Section 6.01(d) will be margin stock.




     (j) Neither the Company nor any of its Subsidiaries is an “investment company”, a
company “controlled by”, or “promoter” or “principal underwriter” for, an “investment
company”, as such terms are defined in the Investment Company Act of 1940, as amended.
Neither the making of any Advances nor the application of the proceeds or repayment thereof
by any Borrower will violate any provision of such Act or any rule, regulation or order of
the Securities and Exchange Commission thereunder.



ARTICLE V



COVENANTS OF THE COMPANY





     Section 5.01 Affirmative Covenants.




     So long as any Advance shall remain unpaid, any Letter of Credit shall remain outstanding or
any Lender shall have any Commitment hereunder, the Company will:




     (a) Compliance with Laws, Etc. Comply, and cause each of its Subsidiaries to
comply, in all material respects, with all applicable laws, rules, regulations and orders,
such compliance to include, without limitation, compliance with ERISA and Environmental
Laws, except where failure so to comply would not, and would not be reasonably likely to,
have a Material Adverse Effect.




     (b) Payment of Taxes, Etc. Pay and discharge, and cause each of its
Subsidiaries to pay and discharge, before the same shall become delinquent, (i) all taxes,
assessments and governmental charges or levies imposed upon it or upon its property and (ii)
all lawful claims that, if unpaid, might by law become a Lien upon its property;
provided, however, that neither the Company nor any of its Subsidiaries
shall be required to pay or discharge any such tax, assessment, charge or claim that is
being contested in good faith and by proper proceedings and as to which appropriate reserves
are being maintained, unless and until any Lien resulting therefrom attaches to its property
and becomes enforceable against its other creditors and such Lien would be reasonably likely
to have a Material Adverse Effect.




     (c) Preservation of Corporate Existence, Etc. Preserve and maintain, and cause
each of its Material Subsidiaries to preserve and maintain, its corporate existence, rights
(charter and statutory) and franchises; provided, however, that the Company
and its Material Subsidiaries may consummate any merger or consolidation permitted under
Section 5.02(b) and provided further that neither the Company nor any of its
Material Subsidiaries shall be required to preserve any right or franchise if the Board of
Directors of the Company or such Subsidiary shall determine that the preservation thereof is
no longer desirable in the conduct of the business of the Company or such Subsidiary, as the
case may be, and that the loss thereof is not disadvantageous in any



38









 






material respect to the
Company, such Subsidiary or the Lenders.




     (d) Reporting Requirements. Furnish to the Agent:




     (i) as soon as available and in any event within 45 days after the end of each
of the first three quarters of each fiscal year of the Company, the Consolidated
balance sheet of the Company and its Subsidiaries as of the end of such quarter and
Consolidated statements of income and cash flows of the Company and its Subsidiaries
for the period commencing at the end of the previous fiscal year and ending with the
end of such quarter, duly certified (subject to year-end audit adjustments) by the
chief financial officer of the Company as having been prepared in accordance with
GAAP, it being agreed that delivery of the Company’s Quarterly Report on Form 10-Q
will satisfy this requirement;




     (ii) as soon as available and in any event within 90 days after the end of each
fiscal year of the Company, a copy of the annual audit report for such year for the
Company and its Subsidiaries, containing the Consolidated balance sheet of the
Company and its Subsidiaries as of the end of such fiscal year and Consolidated
statements of income and cash flows of the Company and its Subsidiaries for such
fiscal year, in each case accompanied by an opinion acceptable to the Required
Lenders by KPMG LLP or other independent public accountants acceptable to the
Required Lenders, it being agreed that delivery, of the Company’s Annual Report on
Form 10-K will satisfy this requirement;




     (iii) as soon as possible and in any event within five days after the
occurrence of each Default continuing on the date of such statement, a statement of
the chief financial officer of the Company setting forth details of such Default and
the action that the Company has taken and proposes to take with respect thereto; and




     (iv) promptly after the sending or filing thereof copies of all annual reports
and proxy solicitations that the Company sends to any of its security holders, and
copies of all reports on Form 8-K that the Company or any Subsidiary files with the
Securities and Exchange Commission.




Reports and financial statements required to be delivered by the Company pursuant to clauses
(i), (ii) and (iv) of this subsection (d) shall be deemed to have been delivered on the date
on which the Company posts such reports, or reports containing such financial statements, on
its website on the Internet at www.pepsico.com, at www.sec.gov or at such other website
identified by the Company in a notice to the Agent and that is accessible by the Lenders
without charge; provided that the Company shall deliver paper copies of such
information to any Lender promptly upon request of such Lender through the Agent.




     Section 5.02 Negative Covenants.




     So long as any Advance shall remain unpaid, any Letter of Credit shall remain outstanding or
any Lender shall have any Commitment hereunder, the Company will not:




     (a) Secured Debt. Create or suffer to exist, or permit any of its Restricted
Subsidiaries to create or suffer to exist, any Debt secured by a Lien on (i) any Principal
Property, (ii) any shares of stock of a Restricted Subsidiary or (iii) any Debt of any
Restricted Subsidiary



39









 






unless the Company or such Restricted Subsidiary secures or causes
such Restricted Subsidiary to secure the Advances and all other amounts payable under this
Agreement and the Notes equally and ratably with such secured Debt, so long as such secured
Debt shall be so secured, unless after giving effect thereto the aggregate amount of all
such Debt so secured does not exceed 10% of Consolidated Net Tangible Assets at such time,
provided that the foregoing restriction does not apply to Debt secured by:




     (i) Liens existing prior to the date hereof;




     (ii) Liens on property of, or on shares of stock of or Debt of, any corporation
existing at the time such corporation becomes a Restricted Subsidiary;




     (iii) Liens in favor of the Company or any Restricted Subsidiary;




     (iv) Liens in favor of any governmental bodies to secure progress or advance
payments;




     (v) Liens on property, shares of stock or Debt existing at the time of
acquisition thereof (including acquisition through merger or consolidation) or to
secure the payment of all or any part of the purchase price thereof or construction
thereon or to secure any Debt incurred prior to, at the time of, or within 120 days
after the later of the acquisition, the completion of construction, or the
commencement of full operation of such property or within 120 days after the
acquisition of such shares or Debt for the purpose of financing all or any part of
the purchase price thereof or construction thereon; and




     (vi) any extension, renewal or refunding referred to in the foregoing clauses
(i) to (v), inclusive.




     (b) Mergers, Etc. (i) Merge or consolidate with or into, or permit any of
its Subsidiaries to merge or consolidate with or into, any corporation, (ii) sell, lease,
transfer or otherwise dispose of all or any substantial part of its assets (except in the
ordinary course of business), whether now owned or hereafter acquired, (iii) acquire all or
substantially all the assets and assume all or substantially all the liabilities of any
Person, or permit any of its Subsidiaries to do so, or (iv) acquire any shares of the stock
of any Person other than a Subsidiary of the Company, or permit any of its Subsidiaries to
do so, unless the Company or one of its Subsidiaries would be the acquiring or surviving
party in such transaction and no Default shall have occurred and be continuing at the time
of such proposed transaction or would result therefrom. Notwithstanding the foregoing, the
Company may at any time sell or otherwise dispose of all the stock of any of its
Subsidiaries (or substantially all the assets of any of its Subsidiaries) if the board of
directors of the Company shall have determined that the retention of such stock or assets is
no longer in the best interests of the Company and that such sale or disposition will not
materially adversely affect the Consolidated financial condition of the Company and its
Subsidiaries taken as a whole.



40









 





ARTICLE VI



EVENTS OF DEFAULT





     Section 6.01 Events of Default.




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




     (a) Any Borrower shall fail to pay any principal of, or interest on, any Advance or any
L/C Obligation or to make any other payment under this Agreement or any Note, in each case
within five days after the same becomes due and payable; or




     (b) Any representation or warranty made by the Company herein or by any Borrower (or
any of its officers) in connection with this Agreement (including without limitation by any
Borrowing Subsidiary pursuant to any Designation Letter) shall prove to have been incorrect
in any material respect when made; or




     (c) (i) The Company shall fail to perform or observe any term, covenant or agreement
contained in Sections 5.01(d) or 5.02, or (ii) the Company shall fail to perform or observe
any other term, covenant or agreement contained in this Agreement on its part to be
performed or observed if such failure shall remain unremedied for 30 days after written
notice thereof shall have been given to the Company by the Agent or any Lender; or




     (d) The Company or any of its Subsidiaries shall fail to pay any principal of or
premium or interest on any Debt that is outstanding in a principal or notional amount of at
least $100,000,000 in the aggregate (but excluding Debt outstanding hereunder) of the
Company or such Subsidiary (as the case may be), when the same becomes due and payable
(whether by scheduled maturity, required prepayment, acceleration, demand or otherwise), and
such failure shall continue after the applicable grace period, if any, specified in the
agreement or instrument relating to such Debt; or any other event shall occur or condition
shall exist under any agreement or instrument relating to any such Debt and shall continue
after the applicable grace period, if any, specified in such agreement or instrument, if the
effect of such event or condition is to accelerate the maturity of such Debt; or any such
Debt shall be declared to be due and payable, or required to be prepaid or redeemed (other
than by a regularly scheduled required prepayment or redemption), purchased or defeased, or
an offer to prepay, redeem, purchase or defease such Debt shall be required to be made, in
each case prior to the stated maturity thereof; or




     (e) The Company or any of its Subsidiaries shall generally not pay its debts as
such debts become due, or shall admit in writing its inability to pay its debts generally,
or shall make a general assignment for the benefit of creditors; or any proceeding shall be
instituted by or against the Company or any of its Subsidiaries seeking to adjudicate it a
bankrupt or insolvent, or seeking liquidation, winding up, reorganization, arrangement,
adjustment, protection, relief, or composition of it or its debts under any law relating to
bankruptcy, insolvency or reorganization or relief of debtors, or seeking the entry of an
order for relief or the appointment of a receiver, trustee, custodian or other similar
official for it or for any substantial part of its property and, in the case of any such
proceeding instituted against it (but not instituted by it), either such proceeding shall
remain undismissed or unstayed for a period of 30 days, or any of the actions sought in such
proceeding (including, without limitation, the entry of an order for relief against, or the
appointment of a receiver, trustee, custodian or other similar official for, it or for any
substantial part of its property) shall occur; or the Company or any of its Subsidiaries
shall take any corporate action to authorize any of the actions set forth above in this
subsection (e); or




41










 








     (f) Any judgment or order for the payment of money in excess of $100,000,000 shall be
rendered against the Company or any of its Material Subsidiaries and either (i) enforcement
proceedings shall have been commenced by any creditor upon such judgment or order or (ii)
there shall be any period of 10 consecutive days during which a stay of enforcement of such
judgment or order, by reason of a pending appeal or otherwise, shall not be in effect;
provided, however, that any such judgment or order shall not be an Event of
Default under this Section 6.01(f) if and for so long as (i) the amount of such judgment or
order is covered by a valid and binding policy of insurance between the defendant and the
insurer covering payment thereof and (ii) such insurer, which shall be rated at least “A” by
A.M. Best Company, has been notified of, and has not disputed the claim made for payment of,
the amount of such judgment or order; or




     (g) Any event, action or condition with respect to an employee benefit plan of the
Company subject to Title IV of ERISA results in any penalty or action pursuant to ERISA that
has a material adverse effect on the business or financial condition of the Company and its
Subsidiaries, taken as a whole;


then, and in any such event, the Agent (i) shall at the request, or may with the consent, of the
Required Lenders, by notice to the Company, declare the obligation of each Lender to make Advances
and any obligation of the L/C Issuer to make L/C Credit Extensions to be terminated, whereupon the
same shall forthwith terminate, (ii) shall at the request, or may with the consent, of the Required
Lenders, by notice to the Company declare the Notes, all interest thereon and all other amounts
payable under this Agreement to be forthwith due and payable, whereupon the Notes, all such
interest and all such amounts shall become and be forthwith due and payable, without presentment,
demand, protest or further notice of any kind, all of which are hereby expressly waived by the
Company and (iii) shall at the request, or may with the consent, of the Required Lenders, require
that the Company Cash Collateralize the L/C Obligations; provided, however, that in
the event of an actual or deemed entry of an order for relief with respect to the Company or any
Borrowing Subsidiary under the Federal Bankruptcy Code, (A) the obligation of each Lender to make
Advances and any obligation of the L/C Issuer to make L/C Credit Extensions shall automatically be
terminated, (B) the Notes, all such interest and all such amounts shall automatically become and be
due and payable, without presentment, protest or any notice of any kind, all of which are hereby
expressly waived by the Company and (C) the obligation of the Company to Cash Collateralize the L/C
Obligations as aforesaid shall automatically become effective without further act of the Agent or
any Lender.




ARTICLE VII




THE AGENT




     Section 7.01 Authorization and Action.




     (a) Each Lender hereby appoints and authorizes the Agent to take such action as agent
on its behalf and to exercise such powers and discretion under this Agreement as are
delegated to the Agent by the terms hereof, together with such powers and discretion as are
reasonably incidental thereto. As to any matters not expressly provided for by this
Agreement (including, without limitation, enforcement or collection of the Notes), the Agent
shall not be required to exercise any discretion or take any action, but shall be required
to act or to refrain from acting (and shall be fully protected in so acting or refraining
from acting) upon the instructions of the Required Lenders, and such instructions shall be
binding upon all Lenders and all holders of Notes; provided, however, that
the Agent shall not be required to take any action



42









 






that exposes the Agent to personal liability or that is contrary to this Agreement or
applicable law. The Agent agrees to give to each Lender prompt notice of each notice given
to it by the Company pursuant to the terms of this Agreement.




     (b) The L/C Issuer shall act on behalf of the Lenders with respect to any Letters of
Credit issued by it and the documents associated therewith, and the L/C Issuer shall have
all of the benefits and immunities (i) provided to the Agent in this Article VII
with respect to any acts taken or omissions suffered by the L/C Issuer in connection with
Letters of Credit issued by it or proposed to be issued by it and the applications and
agreements for letters of credit pertaining to such Letters of Credit as fully as if the
term “Agent” as used in this Article VII included the L/C Issuer with respect to
such acts or omissions, and (ii) as additionally provided herein with respect to the L/C
Issuer.



     Section 7.02 Agent’s Reliance, Etc.



     Neither the Agent nor any of its directors, officers, agents or employees shall be liable for
any action taken or omitted to be taken by it or them under or in connection with this Agreement,
except for its or their own gross negligence or willful misconduct. Without limitation of the
generality of the foregoing, the Agent: (i) may treat the payee of any Note as the holder thereof
until the Agent receives and accepts an Assignment and Assumption entered into by the Lender that
is the payee of such Note, as assignor, and an Eligible Assignee, as assignee, as provided in
Section 8.07; (ii) may consult with legal counsel (including counsel for the Company or any
Subsidiary Borrower), independent public accountants and other experts selected by it and shall not
be liable for any action taken or omitted to be taken in good faith by it in accordance with the
advice of such counsel, accountants or experts; (iii) makes no warranty or representation to any
Lender and shall not be responsible to any Lender for any statements, warranties or representations
(whether written or oral) made in or in connection with this Agreement; (iv) shall not have any
duty to ascertain or to inquire as to the performance or observance of any of the terms, covenants
or conditions of this Agreement on the part of any Borrower or to inspect the property (including
the books and records) of any Borrower; (v) shall not be responsible to any Lender for the due
execution, legality, validity, enforceability, genuineness, sufficiency or value of, or the
perfection or priority of any lien or security interest created or purported to be created under or
in connection with, this Agreement or any other instrument or document furnished pursuant hereto;
and (vi) shall incur no liability under or in respect of this Agreement by acting upon any notice,
consent, certificate or other instrument or writing (which may be by telecopier) believed by it to
be genuine and signed or sent by the proper party or parties.



     Section 7.03 Citibank and Affiliates.



     With respect to its Commitment, the Advances made by it, the Letters of Credit issued by it
and the Note issued to it, Citibank shall have the same rights and powers under this Agreement as
any other Lender and may exercise the same as though it were not the Agent; and the term “Lender”
or “Lenders” shall, unless otherwise expressly indicated, include Citibank in its individual
capacity. Citibank and its Affiliates may accept deposits from, lend money to, act as trustee
under indentures of, accept investment banking engagements from and generally engage in any kind of
business with, the Company, any of its Subsidiaries and any Person who may do business with or own
securities of the Company or any such Subsidiary, all as if Citibank were not the Agent and without
any duty to account therefor to the Lenders. The Agent shall have no duty to disclose information
obtained or received by it or any of its Affiliates relating to the Company or its Subsidiaries to
the extent such information was obtained or received in any capacity other than as Agent.



43









 





     Section 7.04 Lender Credit Decision.



     Each Lender acknowledges that it has, independently and without reliance upon the Agent or any
other Lender and based on the financial statements referred to in Section 4.01 and such other
documents and information as it has deemed appropriate, made its own credit analysis and decision
to enter into this Agreement. Each Lender also acknowledges that it will, independently and
without reliance upon the 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 decisions in taking or not
taking action under this Agreement.



     Section 7.05 Indemnification.



     The Lenders agree to indemnify the Agent (to the extent not reimbursed by the Company),
ratably according to the respective principal amounts of the Revolving Credit Notes then held by
each of them (or if no Revolving Credit Notes are at the time outstanding or if any Revolving
Credit Notes are held by Persons that are not Lenders, ratably according to the respective amounts
of their Commitments), from and against any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature
whatsoever that may be imposed on, incurred by, or asserted against the Agent in any way relating
to or arising out of this Agreement or any action taken or omitted by the Agent under this
Agreement; provided that no Lender shall be liable for any portion of such liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements resulting from the Agent’s gross negligence or willful misconduct. Without
limitation of the foregoing, each Lender agrees to reimburse the Agent promptly upon demand for its
ratable share of any out-of-pocket expenses (including counsel fees) incurred by the Agent in
connection with the preparation, execution, delivery, administration, modification, amendment or
enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice in
respect of rights or responsibilities under, this Agreement, to the extent that the Agent is not
reimbursed for such expenses by the Company.



     Section 7.06 Successor Agent.



     The Agent may resign at any time by giving written notice thereof to the Lenders and the
Company and may be removed at any time with or without cause by the Required Lenders. Upon any
such resignation or removal, the Required Lenders shall have the right to appoint a successor Agent
approved by the Company, which approval shall not be unreasonably withheld or delayed. If no
successor Agent shall have been so appointed by the Required Lenders, and shall have accepted such
appointment, within 30 days after the retiring Agent’s giving of notice of resignation or the
Required Lenders’ removal of the retiring Agent, then the retiring Agent may, on behalf of the
Lenders, appoint a successor Agent, which shall be a commercial bank organized under the laws of
the United States of America or of any State thereof and having a combined capital and surplus of
at least $50,000,000. Upon the acceptance of any appointment as Agent hereunder by a successor
Agent, such successor Agent shall thereupon succeed to and become vested with all the rights,
powers, discretion, privileges and duties of the retiring Agent, and the retiring Agent shall be
discharged from its duties and obligations under this Agreement, but shall not be discharged from
any duties or obligations under this Agreement prior to its retirement as Agent. After any
retiring Agent’s resignation or removal hereunder as Agent, the provisions of this Article VII
shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Agent
under this Agreement.



     Section 7.07 Syndication Agents and Lead Arrangers.



     Without prejudice to the obligations of the Agent hereunder, the Syndication Agents and Lead
Arrangers, in their capacities as such, have no duties, obligations or responsibilities under this
Agreement.



44









 





ARTICLE VIII




MISCELLANEOUS




     Section 8.01 Amendments, Etc.



     No amendment or waiver of any provision of this Agreement or the Revolving Credit Notes, nor
consent to any departure by any Borrower therefrom, shall in any event be effective unless the same
shall be in writing and signed by the Company and the Required Lenders, and then such waiver or
consent shall be effective only in the specific instance and for the specific purpose for which
given; provided, however, that no amendment, waiver or consent shall, unless in
writing and signed by all the Lenders affected thereby, do any of the following: (a) waive any of
the conditions specified in Section 3.01, (b) increase the Commitment of a Lender or subject a
Lender to any additional obligations, (c) reduce the principal of, or interest on, the Revolving
Credit Notes or any fees or other amounts payable hereunder, (d) postpone any date fixed for any
payment of principal of, or interest on, the Revolving Credit Notes or any fees or other amounts
payable hereunder, (e) change the percentage of the Commitments or of the aggregate unpaid
principal amount of the Revolving Credit Notes, or the number of Lenders, that shall be required
for the Lenders or any of them to take any action hereunder, (f) release the guarantee as set forth
in Section 9.01, or (g) amend this Section 8.01; and provided further that (i) no
amendment, waiver or consent shall, unless in writing and signed by the Agent in addition to the
Lenders required above to take such action, affect the rights or duties of the Agent under this
Agreement or any Note and (ii) no amendment, waiver or consent shall, unless in writing and signed
by the L/C Issuer in addition to the Lenders required above to take such action, affect the rights
or duties of the L/C Issuer under this Agreement or any Letter of Credit Application relating to
any Letter of Credit issued or to be issued by it.



     Section 8.02 Notices, Etc.



     All notices and other communications provided for hereunder shall be either (x) in writing
(including telecopier communication) and mailed, telecopied, or delivered or (y) as and to the
extent set forth in Section 9.02(b) and in the proviso to this Section 8.02(a), if to any Borrower,
to the Company at its address at 700 Anderson Hill Road, Purchase, New York 10577, Attention:
Assistant Treasurer, Telecopier No. (914) 253-3303, with a copy to Secretary, Telecopier No. (914)
253-3123; if to any Initial Lender, at its Domestic Lending Office set forth in its Administrative
Questionnaire; if to any other Lender, at its Domestic Lending Office specified in the Assignment
and Assumption pursuant to which it became a Lender; and if to the Agent, at the Agent Address; or,
as to the Company or the Agent, at such other address as shall be designated by such party in a
written notice to the other parties and, as to each other party, at such other address as shall be
designated by such party in a written notice to the Company and the Agent, provided that
materials required to be delivered pursuant to Section 5.01(d)(i), (ii) or (iv) shall be delivered
to the Agent as specified in Section 8.02(b) or as otherwise specified to the Company by the Agent.
All such notices and communications shall, when mailed, telecopied be effective when deposited in
the mails or telecopied, respectively, except that notices and communications to the Agent pursuant
to Article II, III or VII shall not be effective until received by the Agent. The Company and the
Agent may agree to accept notice and other communications by electronic means pursuant to
procedures approved by both parties.



     (b) So long as Citibank or any of its Affiliates is the Agent, materials required to be
delivered pursuant to Section 5.01(d)(i), (ii) and (iv) shall be delivered to the Agent in an
electronic medium in a format acceptable to the Agent and the Lenders by e-mail at
oploanswebadmin@citigroup.com. The Company agrees that the Agent may make such materials, as well
as any other written information,



45









 




documents, instruments and other material relating to the Company, any of its Subsidiaries or
any other materials or matters relating to this Agreement, the Notes or any of the transactions
contemplated hereby (collectively, the “Communications”) available to the Lenders by
posting such notices on Intralinks or a substantially similar electronic system (the
“Platform”). The Company acknowledges that (i) the distribution of material through an
electronic medium is not necessarily secure and that there are confidentiality and other risks
associated with such distribution, (ii) the Platform is provided “as is” and “as available” and
(iii) neither the Agent nor any of its Affiliates warrants the accuracy, adequacy or completeness
of the Communications or the Platform and each expressly disclaims liability for errors or
omissions in the Communications or the Platform. No warranty of any kind, express, implied or
statutory, including, without limitation, any warranty of merchantability, fitness for a particular
purpose, non-infringement of third party rights or freedom from viruses or other code defects, is
made by the Agent or any of its Affiliates in connection with the Platform.




     (c) Each Lender agrees that notice to it (as provided in the next sentence) (a
“Notice”) specifying that any Communications have been posted to the Platform shall
constitute effective delivery of such information, documents or other materials to such Lender for
purposes of this Agreement; provided that if requested by any Lender the Agent shall
deliver a copy of the Communications to such Lender by email or telecopier. Each Lender agrees (i)
to notify the Agent in writing of such Lender’s e-mail address to which a Notice may be sent by
electronic transmission (including by electronic communication) on or before the date such Lender
becomes a party to this Agreement (and from time to time thereafter to ensure that the Agent has on
record an effective e-mail address for such Lender) and (ii) that any Notice may be sent to such
e-mail address.



     Section 8.03 No Waiver; Remedies.



     No failure on the part of any Lender or the Agent to exercise, and no delay in exercising, any
right hereunder or under any other Loan Document shall operate as a waiver thereof; nor shall any
single or partial exercise of any such right preclude any other or further exercise thereof or the
exercise of any other right. The remedies herein provided are cumulative and not exclusive of any
remedies provided by law.



     Section 8.04 Costs and Expenses.




     (a) The Company agrees to pay on demand all reasonable costs and expenses of the Agent
and the Lenders, if any (including, without limitation, reasonable counsel fees and
expenses), in connection with the enforcement (whether through negotiations, legal
proceedings or otherwise) of this Agreement, the Notes and the other documents to be
delivered hereunder, including, without limitation, reasonable fees and expenses of counsel
for the Agent and each Lender in connection with the enforcement of rights under this
Section 8.04(a).




     (b) The Company agrees to indemnify and hold harmless the Agent and each Lender and
each of their Affiliates and their officers, directors, employees, agents and advisors
(each, an “Indemnified Party”) from and against any and all claims, damages, losses,
liabilities and expenses (including, without limitation, reasonable fees and expenses of
counsel) that may be incurred by or asserted or awarded against any Indemnified Party, in
each case arising out of or in connection with or by reason of, or in connection with the
preparation for a defense of, any investigation, litigation or proceeding arising out of,
related to or in connection with the Notes, this Agreement, any of the transactions
contemplated herein or the actual or proposed use of the proceeds of the Advances, whether
or not such investigation, litigation or proceeding is brought by any Borrower, its
directors, shareholders or creditors or an Indemnified Party or any other Person or any
Indemnified Party is otherwise a party thereto and whether or not the transactions



46









 






contemplated hereby are consummated, except to the extent such claim, damage, loss,
liability or expense is found in a final, non-appealable judgment by a court of competent
jurisdiction to have resulted from such Indemnified Party’s gross negligence or willful
misconduct. No Indemnified Party shall be liable for any damages arising from the use by
others of any information or other materials obtained through IntraLinks or other similar
information transmission systems in connection with this Agreement. No party hereto shall
have any liability to any other party hereto for any indirect, punitive or consequential
damages relating to this Agreement or any other Loan Document or arising out of its
activities in connection herewith or therewith.




     (c) If any payment of principal of, or Conversion of, any Eurodollar Rate Advance or
LIBO Rate Advance is made by any Borrower to or for the account of a Lender other than on
the last day of the Interest Period for such Advance, as a result of a payment or Conversion
pursuant to Section 2.08(d) or (e), 2.10 or 2.12, acceleration of the maturity of the Notes
pursuant to Section 6.01 or for any other reason, the Company shall, upon demand by such
Lender (with a copy of such demand to the Agent), pay to the Agent for the account of such
Lender any amounts required to compensate such Lender for any additional losses, costs or
expenses that it may reasonably incur as a result of such payment or Conversion, including,
without limitation, any loss, cost or expense incurred by reason of the liquidation or
reemployment of deposits or other funds acquired by any Lender to fund or maintain such
Advance.




     (d) Without prejudice to the survival of any other agreement of any Borrower hereunder,
the agreements and obligations of the Company contained in Sections 2.11, 2.14 and 8.04
shall survive the payment in full of principal, interest and all other amounts payable
hereunder and under the Notes.



     Section 8.05 Right of Set-off.



     Upon (i) the occurrence and during the continuance of any Event of Default and (ii) the making
of the request or the granting of the consent specified by Section 6.01 to authorize the Agent to
declare the Notes due and payable pursuant to the provisions of Section 6.01, 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 indebtedness at any time owing by such Lender or
such Affiliate to or for the credit or the account of any Borrower against any and all of the
obligations of such Borrower now or hereafter existing under this Agreement and the Note held by
such Lender, whether or not such Lender shall have made any demand under this Agreement or such
Note and although such obligations may be unmatured. Each Lender agrees promptly to notify the
Company after any such set-off and application, provided that the failure to give such
notice shall not affect the validity of such set-off and application. The rights of each Lender
and its Affiliates under this Section are in addition to other rights and remedies (including,
without limitation, other rights of set-off) that such Lender and its Affiliates may have.



     Section 8.06 Binding Effect.



     This Agreement shall become effective (other than Sections 2.01, 2.03 and 2.18, which shall
only become effective upon satisfaction of the conditions precedent set forth in Section 3.01) when
it shall have been executed by the Company and the Agent and when the Agent shall have been
notified by each Initial Lender that such Initial Lender has executed it and thereafter shall be
binding upon and inure to the benefit of the Company, each Subsidiary Borrower (if any), the Agent
and each Lender and their respective successors and assigns, except that no Borrower shall have the
right to assign its rights hereunder or any interest herein without the prior written consent of
the Lenders.



47









 





     Section 8.07 Assignments and Participations.




     (a) Each Lender may, upon ten days’ notice to the Agent and with the consent of the
Company and, if demanded by the Company (following a demand by such Lender pursuant to
Section 2.11 or Section 2.14 or pursuant to Section 2.06(b)) upon at least 20 Business Days’
notice to such Lender and the Agent, will assign to one or more Persons all or a portion of
its rights and obligations under this Agreement (including, without limitation, all or a
portion of its Commitment, the Revolving Credit Advances and L/C Obligations owing to it and
the Revolving Credit Note or Notes held by it); provided, however, that (i)
each such assignment shall be of a constant, and not a varying, percentage of all rights and
obligations under this Agreement (other than any right to make Competitive Bid Advances,
Competitive Bid Advances owing to it or Competitive Bid Notes), (ii) except in the case of
an assignment to a Person that, immediately prior to such assignment, was a Lender or an
assignment of all of a Lender’s rights and obligations under this Agreement, the amount of
the Commitment of the assigning Lender being assigned pursuant to each such assignment
(determined as of the date of the Assignment and Assumption with respect to such assignment)
shall in no event be less than $10,000,000, (iii) each such assignment shall be to an
Eligible Assignee, (iv) each such assignment made as a result of a demand by the Company
pursuant to this Section 8.07(a) shall be arranged by the Company after consultation with
the Agent and shall be either an assignment of all of the rights and obligations of the
assigning Lender under this Agreement or an assignment of a portion of such rights and
obligations made concurrently with another such assignment or other such assignments that
together cover all of the rights and obligations of the assigning Lender under this
Agreement, (v) no Lender shall be obligated to make any such assignment as a result of a
demand by the Company pursuant to this Section 8.07(a) unless and until such Lender shall
have received one or more payments from either the Company or one or more Eligible Assignees
in an aggregate amount at least equal to the aggregate outstanding principal amount of the
Advances owing to such Lender, together with accrued interest thereon to the date of payment
of such principal amount and all other amounts payable to such Lender under this Agreement,
including with respect to L/C Obligations and (vi) the parties to each such assignment shall
execute and deliver to the Agent, for its acceptance and recording in the Register (as
defined in clause (d) below), an Assignment and Assumption, together with any Revolving
Credit Note subject to such assignment and a processing and recordation fee of $3,500. Upon
such execution, delivery, acceptance and recording, from and after the effective date
specified in each Assignment and Assumption, (x) the assignee thereunder shall be a party
hereto and, to the extent that rights and obligations hereunder have been assigned to it
pursuant to such Assignment and Assumption, have the rights and obligations of a Lender
hereunder and (y) the Lender assignor thereunder shall, to the extent that rights and
obligations hereunder have been assigned by it pursuant to such Assignment and Assumption,
relinquish its rights and be released from its obligations under this Agreement (and, in the
case of an Assignment and Assumption covering all or the remaining portion of an assigning
Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party
hereto); provided that an assigning Lender’s rights to indemnification and
reimbursement pursuant to Section 8.04 shall survive assignment hereunder.




     Notwithstanding anything to the contrary contained herein, any Lender (a “Granting
Lender”) may grant to a special purpose vehicle (an “SPV”) of such Granting
Lender, identified as such in writing from time to time by the Granting Lender to the Agent
and the Company, the option to provide to the Borrowers all or any part of any Advance that
such Granting Lender would otherwise be obligated to make to the Borrowers pursuant to
Section 2.01, provided that (i) nothing herein shall constitute a commitment by any
SPV to make any Advance, (ii) if an SPV elects not to exercise such option or otherwise
fails to provide all or any part of such Advance, the Granting Lender shall be obligated to
make such Advance pursuant to the terms hereof and



48









 






(iii) the Borrowers may bring any proceeding against either the Granting Lender or the SPV
in order to enforce any rights of the Borrowers hereunder. The making of an Advance by an
SPV hereunder shall utilize the Commitment of the Granting Lender to the same extent, and as
if, such Advance were made by the Granting Lender. Each party hereto hereby agrees that no
SPV shall be liable for any payment under this Agreement for which a Lender would otherwise
be liable, for so long as, and to the extent, the related Granting Lender makes such
payment. In furtherance of the foregoing, each party hereto hereby agrees (which agreement
shall survive the termination of this Agreement) that, prior to the date that is one year
and one day after the payment in full of all outstanding commercial paper or other senior
indebtedness of any SPV, it will not institute against, or join any other person in
instituting against, such SPV any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings or similar proceedings under the laws of the United States or any
State thereof arising out of any claim against such SPV under this Agreement. In addition,
notwithstanding anything to the contrary contained in this Section, any SPV may with notice
to, but without the prior written consent of, the Company or the Agent and without paying
any processing fee therefor, assign all or a portion of its interests in any Advances to its
Granting Lender or to any financial institutions (consented to by the Company and the Agent)
providing liquidity and/or credit support (if any) with respect to commercial paper issued
by such SPV to fund such Advances and such SPV may disclose, on a confidential basis,
confidential information with respect to the Company and its Subsidiaries to any rating
agency, commercial paper dealer or provider of a surety, guarantee or credit liquidity
enhancement to such SPV. This paragraph may not be amended without the consent of any SPV
at the time holding Advances under this Agreement.




     (b) By executing and delivering an Assignment and Assumption, the Lender assignor
thereunder and the assignee thereunder confirm to and agree with each other and the other
parties hereto as follows: (i) other than as provided in such Assignment and Assumption,
such assigning Lender makes no representation or warranty and assumes no responsibility with
respect to any statements, warranties or representations made in or in connection with this
Agreement or the execution, legality, validity, enforceability, genuineness, sufficiency or
value of, or the perfection or priority of any lien or security interest created or
purported to be created under or in connection with, this Agreement or any other instrument
or document furnished pursuant hereto; (ii) such assigning Lender makes no representation or
warranty and assumes no responsibility with respect to the financial condition of any
Borrower or the performance or observance by any Borrower of any of its obligations under
this Agreement or any other instrument or document furnished pursuant hereto; (iii) such
assignee confirms that it has received a copy of this Agreement, together with copies of the
financial statements referred to in Section 4.01 and such other documents and information as
it has deemed appropriate to make its own credit analysis and decision to enter into such
Assignment and Assumption; (iv) such assignee will, independently and without reliance upon
the Agent, such assigning Lender 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
decisions in taking or not taking action under this Agreement; (v) such assignee confirms
that it is an Eligible Assignee; (vi) such assignee appoints and authorizes the Agent to
take such action as agent on its behalf and to exercise such powers and discretion under
this Agreement as are delegated to the Agent by the terms hereof, together with such powers
and discretion as are reasonably incidental thereto; and (vii) such assignee agrees that it
will perform in accordance with their terms all of the obligations that by the terms of this
Agreement are required to be performed by it as a Lender.




     (c) Upon its receipt of an Assignment and Assumption executed by an assigning Lender
and an assignee representing that it is an Eligible Assignee, together with any Revolving
Credit Note or Notes subject to such assignment, the Agent shall, if such Assignment and



49









 






Assumption has been completed and is in substantially the form of Exhibit C hereto, (i)
accept such Assignment and Assumption, (ii) record the information contained therein in the
Register and (iii) give prompt notice thereof to the Company. Within five Business Days
after receipt by the Company of such notice, the relevant Borrower, at its own expense,
shall execute and deliver to the Agent in exchange for the surrendered Revolving Credit Note
a new Revolving Credit Note to the order of such Eligible Assignee in an amount equal to the
Commitment assumed by it pursuant to such Assignment and Assumption and, if the assigning
Lender has retained a Commitment hereunder, a new Revolving Credit Note to the order of the
assigning Lender in an amount equal to the Commitment retained by it hereunder. Such new
Revolving Credit Note or Notes shall be in an aggregate principal amount equal to the
aggregate principal amount of such surrendered Revolving Credit Note or Notes, shall be
dated the effective date of such Assignment and Assumption and shall otherwise be in
substantially the form of Exhibit A-1 hereto.




     (d) The Agent shall maintain at its address referred to in Section 8.02 a copy of each
Assignment and Assumption delivered to and accepted by it and a register for the recordation
of the names and addresses of the Lenders and, with respect to Lenders, the Commitment of,
and principal amount of the Advances owing to, each Lender from time to time (the
“Register”). The entries in the Register shall be conclusive and binding for all purposes,
absent manifest error, and each Borrower, the Agent and the Lenders may treat each Person
whose name is recorded in the Register as a Lender hereunder for all purposes of this
Agreement. The Register shall be available for inspection by the Company or any Lender at
any reasonable time and from time to time upon reasonable prior notice.




     (e) Each Lender may, upon notice to the Agent and the Company, sell participations to
one or more banks or other entities in or to all or a portion of its rights and obligations
under this Agreement (including, without limitation, all or a portion of its Commitment, the
Advances owing to it and the Note or Notes held by it); provided, however,
that (i) such Lender’s obligations under this Agreement (including, without limitation, its
Commitment hereunder) shall remain unchanged, (ii) such Lender shall remain solely
responsible to the other parties hereto for the performance of such obligations, (iii) such
Lender shall remain the holder of any such Note for all purposes of this Agreement, (iv) the
Borrowers, the 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 and
(v) no participant under any such participation shall have any right to approve any
amendment or waiver of any provision of this Agreement or any Note, or any consent to any
departure by any Borrower therefrom, except to the extent that such amendment, waiver or
consent would reduce the principal of, or interest on, the Notes or any fees or other
amounts payable hereunder, in each case to the extent subject to such participation,
postpone any date fixed for any payment of principal of, or interest on, the Notes or any
fees or other amounts payable hereunder, in each case to the extent subject to such
participation or release the Borrower from its obligations hereunder, including, without
limitation, its obligations under Article IX.




     (f) Any Lender may, in connection with any assignment or participation or proposed
assignment or participation pursuant to this Section 8.07, disclose to the assignee or
participant or proposed assignee or participant any information relating to any Borrower
furnished to such Lender by or on behalf of any Borrower; provided that, prior to any such
disclosure, the assignee or participant or proposed assignee or participant shall agree to
preserve the confidentiality of any Confidential Information relating to the Borrowers
received by it from such Lender.




     (g) Notwithstanding any other provision set forth in this Agreement, any Lender may at
any time create a security interest in all or any portion of its rights under this Agreement



50









 






(including, without limitation, the Advances owing to it and the Note or Notes held by it)
in favor of any Federal Reserve Bank in accordance with Regulation A of the Board of
Governors of the Federal Reserve System.



     Section 8.08 Confidentiality.



     Neither the Agent nor any Lender shall disclose any Confidential Information to any Person
without the consent of the Company, other than (a) to the Agent’s or such Lender’s Affiliates and
their officers, directors, employees, agents and advisors and to actual or prospective assignees
and participants, and then only on a confidential basis, (b) as required by any law, rule or
regulation or judicial process, (c) to any rating agency when required by it, provided that, prior
to any such disclosure, such rating agency shall undertake to preserve the confidentiality of any
Confidential Information relating to the Borrowers received by it from such Lender, (d) as
requested or required by any state, federal or foreign authority or examiner regulating banks or
banking, (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 and (f) to the extent
such Confidential Information (i) becomes publicly available other than as a result of a breach of
this Section or (ii) becomes available to the Agent or any Lender on a nonconfidential basis from a
source other than the Company.



     In addition, the Agent may disclose to any agency or organization that assigns standard
identification numbers to loan facilities such basic information describing the facilities provided
hereunder as is necessary to assign unique identifiers (and, if requested, supply a copy of this
Agreement), it being understood that the Person to whom such disclosure is made will be informed of
the confidential nature of such information and instructed to make available to the public only
such information as such person normally makes available in the course of its business of assigning
identification numbers.



     Section 8.09 Governing Law.



     This Agreement and the Notes shall be governed by, and construed in accordance with, the laws
of the State of New York.



     Section 8.10 Execution in Counterparts.



     This Agreement may be executed in any number of counterparts and by different parties hereto
in separate counterparts, each of which when so executed shall be deemed to be an original and all
of which taken together shall constitute one and the same agreement. Delivery of an executed
counterpart of a signature page to this Agreement by telecopier shall be effective as delivery of a
manually executed counterpart of this Agreement.



     Section 8.11 Jurisdiction, Etc.




     (a) Each of the parties hereto hereby irrevocably and unconditionally submits, for
itself and its property, to the nonexclusive jurisdiction of any New York State court or
federal court of the United States of America sitting in New York City, and any appellate
court from any thereof, in any action or proceeding arising out of or relating to this
Agreement or the Notes, 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 any such New York State court
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 any



51









 






party may otherwise have to bring any action or proceeding relating to this Agreement or the
Notes in the courts of any jurisdiction.




     (b) Each of the parties hereto irrevocably and unconditionally waives, to the fullest
extent it may legally and effectively do so, any objection that it may now or hereafter have
to the laying of venue of any suit, action or proceeding arising out of or relating to this
Agreement or the Notes in any New York State or federal court. 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.



     Section 8.12 WAIVER OF JURY TRIAL.



     EACH BORROWER, THE AGENT AND THE LENDERS HEREBY IRREVOCABLY WAIVE ALL RIGHT TO TRIAL BY JURY
IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING
OUT OF OR RELATING TO THIS AGREEMENT OR THE NOTES OR THE ACTIONS OF THE AGENT OR ANY LENDER IN THE
NEGOTIATION, ADMINISTRATION, PERFORMANCE OR ENFORCEMENT THEREOF.



     Section 8.13 USA PATRIOT Act Notice.



     Each Lender and the Agent (for itself and not on behalf of any Lender) hereby notifies
the Company 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 Company, which information includes the name and address of the
Company and other information that will allow such Lender or the Agent, as applicable, to identify
the Company in accordance with the Act.



ARTICLE IX




GUARANTEE




     Section 9.01 Guarantee.



     The Company hereby unconditionally guarantees to each Lender and the Agent and their
respective successors and assigns the prompt payment in full when due (whether at stated maturity,
by acceleration, by optional prepayment or otherwise) of the principal of and interest on the
Advances to and the Notes of (to the extent of the principal of and interest on Advances made to)
each Borrowing Subsidiary and all other amounts whatsoever from time to time now or hereafter owing
to the Lenders or the Agent or any of them by any Borrowing Subsidiary under this Agreement
pursuant to its Designation Letter, in each case strictly in accordance with the terms thereof
(such obligations being herein collectively called the “Guaranteed Obligations”). The
Company hereby further agrees that if any Borrowing Subsidiary shall fail to pay in full when due
(whether at stated maturity, by acceleration, by mandatory prepayment or otherwise) any of the
Guaranteed Obligations, the Company will promptly pay the same, without any demand or notice
whatsoever, and that in the case of any extension of time of payment or renewal of any of the
Guaranteed Obligations, the same will be promptly paid in full when due (whether at extended
maturity, by acceleration or otherwise) in accordance with the terms of such extension or renewal.



     Section 9.02 Obligations Unconditional.




     (a) The obligations of the Company under this Article IX, and the obligations (if



52









 






any) of the Company assumed pursuant to Section 2.17(b), are unconditional irrespective of
(i) the value, genuineness, legality, validity, regularity or enforceability of any of the
Guaranteed Obligations, (ii) any modification, amendment or variation in or addition to the
terms of any of the Guaranteed Obligations or any covenants in respect thereof or any
security therefor, (iii) any extension of time for performance or waiver of performance of
any covenant of any Borrowing Subsidiary or any failure or omission to enforce any right
with regard to any of the Guaranteed Obligations, (iv) any exchange, surrender, release of
any other guaranty of or security for any of the Guaranteed Obligations, or (v) any other
circumstance whatsoever which may or might constitute a legal or equitable discharge or
defense of a surety or guarantor, it being the intent hereof that the obligations of the
Company under this Article IX shall be absolute and unconditional under any and all
circumstances.




     (b) The Company hereby expressly waives diligence, presentment, demand, protest and all
notices whatsoever with regard to any of the Guaranteed Obligations and said obligations
assumed under Section 2.17(b) and any requirement that the Agent or any Lender exhaust any
right, power or remedy or proceed against any Borrowing Subsidiary or any other Person
hereunder or under the Designation Letter of such Borrowing Subsidiary or under any Note of
such Borrowing Subsidiary or any other guarantor of or any security for any of the
Guaranteed Obligations. The obligations of the Company under this Article IX constitute a
guarantee of payment and not of collection.



     Section 9.03 Reinstatement.



     The guarantee in this Article IX shall be automatically reinstated if and to the extent that
for any reason any payment by or on behalf of any Borrowing Subsidiary in respect of the Guaranteed
Obligations is rescinded or must be otherwise restored by any holder(s) of any of the Guaranteed
Obligations, whether as a result of any proceedings in bankruptcy or reorganization or otherwise.



     Section 9.04 Subrogation.



     Until the termination of the Commitments and the payment in full of the principal of and
interest on the Advances and all other amounts payable to the Agent or any Lender hereunder, the
Company hereby irrevocably waives all rights of subrogation or contribution, whether arising by
operation of law (including, without limitation, any such right arising under the Federal
Bankruptcy Code) or otherwise, by reason of any payment by it pursuant to the provisions of this
Article IX.



     Section 9.05 Remedies.



     The Company agrees that, as between the Company on the one hand and the Lenders and the Agent
on the other hand, the obligations of any Borrowing Subsidiary guaranteed under this Agreement may
be declared to be forthwith due and payable, or may be deemed automatically to have been
accelerated, as provided in Article VI, for purposes of Section 9.01 hereof notwithstanding any
stay, injunction or other prohibition (whether in a bankruptcy proceeding affecting such Borrowing
Subsidiary or otherwise) preventing such declaration as against such Borrowing Subsidiary and that,
in the event of such declaration or automatic acceleration such obligations (whether or not due and
payable by such Borrowing Subsidiary) shall forthwith become due and payable by the Company for
purposes of said Section 9.01.



     Section 9.06 Continuing Guarantee.



     The guarantee in this Article IX is a continuing guarantee and shall apply to all Guaranteed



53









 




Obligations whenever arising.




[Remainder of Page Intentionally Left Blank]




54









 





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




	 	 	 	 	 
	 	PEPSICO, INC.

 	 
	 	By:  	/s/  Lionel L.
Nowell III	 
	 	Name:	Lionel L. Nowell III	 
	 	Title:	Senior Vice President and Treasurer	 
	 	 	 	 
	 	By:  	/s/  J. Darrell
Thomas	 
	 	Name:	J. Darrell Thomas	 
	 	Title:	Vice President and Assistant Treasurer	 



 









 






	 	 	 	 	 



	 	 	 	 	 
	 	CITIBANK, N.A.

as Agent, L/C Issuer and as an Initial Lender

 	 
	 	By:  	/s/  Carolyn
A. Kee	 
	 	Name:  	Carolyn A. Kee	 
	 	Title:	Vice President 	 



 









 






	 	 	 	 	 



	 	 	 	 	 
	 	JPMORGAN CHASE BANK, N.A.

 	 
	 	By:  	/s/
Thomas T. Hou	 
	 	Name:  	Thomas T. Hou	 
	 	Title:  	Vice President 	 



 









 






	 	 	 	 	 



	 	 	 	 	 
	 	HSBC BANK USA, NATIONAL ASSOCIATION

 	 
	 	By:  	/s/
Thomas A. Foley	 
	 	Name:  	Thomas A. Foley	 
	 	Title:  	Senior Vice President 	 



 









 






	 	 	 	 	 



	 	 	 	 	 
	 	MERRILL LYNCH BANK USA

 	 
	 	By:  	/s/ Frank Stepan	 
	 	Name:  	Frank Stepan	 
	 	Title:  	Vice President	 



 









 






	 	 	 	 	 



	 	 	 	 	 
	 	MORGAN STANLEY BANK

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



 









 






	 	 	 	 	 



	 	 	 	 	 
	 	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	 



 









 






	 	 	 	 	 



	 	 	 	 	 
	 	BANCO BILBAO VIZCAYA ARGENTARIA S.A.

 	 
	 	By:  	/s/
Jay Levit	 
	 	Name:  	 Jay Levit	 
	 	Title:  	 Vice President	 
	 	 	 	 
	 	By:  	/s/
Erich Michel	 
	 	Name:  	 Erich Michel	 
	 	Title:  	 Vice President	 



 









 






	 	 	 	 	 



	 	 	 	 	 
	 	BANK OF AMERICA, N.A.

 	 
	 	By:  	/s/ David L. Catherall	 
	 	Name:  	David L. Catherall	 
	 	Title:  	Vice President	 



 









 






	 	 	 	 	 



	 	 	 	 	 
	 	THE BANK OF NEW YORK

 	 
	 	By:  	/s/ Joanna S. Bellocq	 
	 	Name:  	Joanna S. Bellocq	 
	 	Title:  	Vice President	 



 









 






	 	 	 	 	 



Schedule I

Commitments




	 	 	 	 	 
	Lender
	 	Commitment
	Citibank, N.A.
	 	$	300,000,000	 
	 
	 	 	 	 
	JPMorgan Chase Bank
	 	$	300,000,000	 
	 
	 	 	 	 
	HSBC Bank USA, National Association
	 	$	150,000,000	 
	 
	 	 	 	 
	Merrill Lynch Bank USA
	 	$	150,000,000	 
	 
	 	 	 	 
	Morgan Stanley Bank
	 	$	150,000,000	 
	 
	 	 	 	 
	UBS Loan Finance LLC
	 	$	150,000,000	 
	 
	 	 	 	 
	Banco Bilbao Vizcaya Argentaria S.A.
	 	$	100,000,000	 
	 
	 	 	 	 
	Bank of America, N.A.
	 	$	100,000,000	 
	 
	 	 	 	 
	The Bank of New York
	 	$	100,000,000	 
	 
	 	 	 	 
	Total:
	 	$	1,500,000,000	 






 









 






Schedule II

Agent’s Address





 









 







Exhibit A-1 to

Credit Agreement




FORM OF REVOLVING CREDIT PROMISSORY NOTE




Dated: May __, 2006




     FOR VALUE RECEIVED, the undersigned, PEPSICO, INC., a North Carolina corporation (the
“Borrower”), HEREBY PROMISES TO PAY to the order of                                          (the
“Lender”) for the account of its Applicable Lending Office on the Termination Date (each as
defined in the Credit Agreement referred to below) the principal amount of the Revolving Credit
Advances made by the Lender to the Borrower pursuant to the Five-Year Credit Agreement dated as of
May 22, 2006 among the Borrower, the Lender and certain other lenders parties thereto, and
Citibank, N.A., as Agent for the Lender and such other lenders (as amended or modified from time to
time, the “Credit Agreement”; the terms defined therein being used herein as therein
defined) outstanding on the Termination Date.



     The Borrower promises to pay interest on the unpaid principal amount of each Revolving Credit
Advance from the date of such Revolving Credit Advance until such principal amount is paid in full,
at such interest rates, and payable at such times, as are specified in the Credit Agreement.



     Both principal and interest are payable in lawful money of the United States of America to
Citibank, N.A., as Agent, at the Agent’s Account, in same day funds for the account of the Lender.
Each Revolving Credit Advance owing to the Lender by the Borrower pursuant to the Credit Agreement,
and all payments made on account of principal thereof, shall be recorded by the Lender and, prior
to any transfer hereof, endorsed on the grid attached hereto which is part of this Promissory Note.
Each such endorsement shall constitute prima facie evidence of the accuracy of the
information so endorsed.



     This Promissory Note is one of the Revolving Credit Notes referred to in, and is entitled to
the benefits of, the Credit Agreement. The Credit Agreement, among other things, (i) provides for
the making of Revolving Credit Advances by the Lender to the Borrower from time to time in an
aggregate amount not to exceed at any time outstanding the U.S. dollar amount first above
mentioned, the indebtedness of the Borrower resulting from each such Revolving Credit Advance being
evidenced by this Promissory Note, and (ii) contains provisions for acceleration of the maturity
hereof upon the happening of certain stated events and also for prepayments on account of principal
hereof prior to the maturity hereof upon the terms and conditions therein specified.



     The Borrower hereby waives presentment, demand, protest and notice of any kind. No failure to
exercise, and no delay in exercising, any rights hereunder on the part of the holder hereof shall
operate as a waiver of such rights.



 









 





     This Promissory Note shall be governed by, and construed in accordance with the laws of the
State of New York.



	 	 	 	 	 
	 	 	PEPSICO, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 





2









 





ADVANCES AND PAYMENTS OF PRINCIPAL




	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Amount of	 	 	 	 
	 

	 	Amount of
	 	Principal Paid
	 	Unpaid Principal
	 	Notation
	Date

	 	Advance
	 	Or Prepaid
	 	Balance
	 	Made By
	 

	 	 
	 	 
	 	 
	 	 





 









 






Exhibit A-2 to

Credit Agreement




FORM OF COMPETITIVE BID PROMISSORY NOTE




			
	U.S.$                                         
	 	Dated: May ___, 2006






     FOR VALUE RECEIVED, the undersigned, PEPSICO, INC., a North Carolina corporation (the
“Borrower”), HEREBY PROMISES TO PAY to the order of                                          (the
“Lender”) for the account of its Applicable Lending Office (as defined in the Five-Year
Credit Agreement dated as of May 22, 2006 among the Borrower, the Lender and certain other lenders
parties thereto, and Citibank, N.A., as Agent for the Lender and such other lenders (as amended or
modified from time to time, the “Credit Agreement”; the terms defined therein being used
herein as therein defined)), on ,                      the principal amount of U.S.$                     .



     The Borrower promises to pay interest on the unpaid principal amount hereof from the date
hereof until such principal amount is paid in full, at the interest rate and payable on the
interest payment date or dates provided below:




     Interest Rate:                     % per annum (calculated on the basis of a year of                     days for the
actual number of days elapsed).



     Both principal and interest are payable in lawful money of the United States of America to
Citibank, N.A., for the account of the Lender at the office of Citibank, N.A., at the Agent’s
Account in same day funds.



     This Promissory Note is one of the Competitive Bid Notes referred to in, and is entitled to
the benefits of, the Credit Agreement. The Credit Agreement, among other things, contains
provisions for acceleration of the maturity hereof upon the happening of certain stated events.



     The Borrower hereby waives presentment, demand, protest and notice of any kind. No failure to
exercise, and no delay in exercising, any rights hereunder on the part of the holder hereof shall
operate as a waiver of such rights.



     This Promissory Note shall be governed by, and construed in accordance with, the laws of the
State of New York.



	 	 	 	 	 
	 	 	PEPSICO, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 






 









 








Exhibit B-1 to

Credit Agreement




FORM OF NOTICE OF REVOLVING CREDIT BORROWING




Citibank, N.A., as Agent

for the Lenders parties

to the Credit Agreement

referred to below




	 	 	 	 	 
	 


	 	 	 	 
	 

	 	 	 	[Date]
	 


	 	 	 	 






     Attention:                                         



Ladies and Gentlemen:




     The undersigned, PepsiCo, Inc. (the “Company”), refers to the Five-Year Credit
Agreement, dated as of May 22, 2006 (as amended or modified from time to time, the “Credit
Agreement”; the terms defined therein being used herein as therein defined), among the
undersigned, certain Lenders parties thereto and Citibank, N.A., as Agent for said Lenders, and
hereby gives you notice, irrevocably, pursuant to Section 2.02 of the Credit Agreement that the
undersigned hereby requests a Revolving Credit Borrowing under the Credit Agreement, and in that
connection sets forth below the information relating to such Revolving Credit Borrowing (the
“Proposed Revolving Credit Borrowing”) as required by Section 2.02(a) of the Credit
Agreement:



     (i) The Business Day of the Proposed Revolving Credit Borrowing is                     ,                     .



     (ii) The Type of Advances constituting the Proposed Revolving Credit Borrowing is [Base Rate
Advances] [Eurodollar Rate Advances].



     (iii) The aggregate amount of the Proposed Revolving Credit Borrowing is $                     .



     (iv) The identity of the Borrower for the Proposed Revolving Credit Borrowing is                                         ,
a                                          corporation.



     [(v) The initial Interest Period for each Eurodollar Rate Advance made as part of the Proposed
Revolving Credit Borrowing is                      month[s].]



     The undersigned hereby certifies that the following statements are true on the date hereof,
and will be true on the date of the Proposed Revolving Credit Borrowing:



     (a) the representations and warranties contained in Section 4.01 of the Credit Agreement
(except the representations set forth in the last sentence of subsection (e) thereof and in
subsection (f) thereof (other than clause (ii) thereof)) are correct, before and after giving
effect



 









 




to the Proposed Revolving Credit Borrowing and to the application of the proceeds therefrom,
as though made on and as of such date;




     (b) no event has occurred and is continuing, or would result from such Proposed Revolving
Credit Borrowing or from the application of the proceeds therefrom, that constitutes a Default; and



     (c) the aggregate amount of the Proposed Revolving Credit Borrowing and all other Borrowings
to be made on the same day under the Credit Agreement is within the aggregate amount of the unused
Commitments of the Lenders.



	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	 	 
	 	 	PEPSICO, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 






 









 








Exhibit B-2 to

Credit Agreement




FORM OF NOTICE OF COMPETITIVE BID BORROWING




Citibank, N.A., as Agent

for the Lenders parties

to the Credit Agreement

referred to below




	 	 	 	 	 
	 


	 	 	 	 
	 

	 	 	 	May ___, 2006
	 


	 	 	 	 






     Attention:                                         



Ladies and Gentlemen:




     The undersigned, PepsiCo, Inc. (the “Company”), refers to the Five-Year Credit
Agreement, dated as of May 22, 2006 (as amended or modified from time to time, the “Credit
Agreement”; the terms defined therein being used herein as therein defined), among the
undersigned, certain Lenders parties thereto and Citibank, N.A., as Agent for said Lenders, and
hereby gives you notice, irrevocably, pursuant to Section 2.03 of the Credit Agreement that the
undersigned hereby requests a Competitive Bid Borrowing under the Credit Agreement, and in that
connection sets forth the terms on which such Competitive Bid Borrowing (the “Proposed
Competitive Bid Borrowing”) is requested to be made:



	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	(A)
	 	Date of Competitive	 	 	 	 
	 

	 	 	 	Bid Borrowing	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	(B)
	 	Amount of Competitive	 	 	 	 
	 

	 	 	 	Bid Borrowing	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	(C)
	 	Maturity Date	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	(D)
	 	Interest Rate Basis	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	(E)
	 	Interest Payment Date(s)	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	(F)
	 	Identity of Borrower	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	(G)	 	 	 	 	 	 
	 

	 	 	 	 
	 	 	 	 
	 

	 	(H)	 	 	 	 	 	 
	 

	 	 	 	 
	 	 	 	 





     The undersigned hereby certifies that the following statements are true on the date hereof,
and will be true on the date of the Proposed Competitive Bid Borrowing:




     (a) the representations and warranties contained in Section 4.01 (except the
representations set forth in the last sentence of subsection (e) thereof and in subsection
(f) thereof (other than clause (ii) thereof)) are correct, before and after giving effect to
the Proposed Competitive Bid Borrowing and to the application of the proceeds therefrom, as
though made on and as of such date;



1









 






     (b) no event has occurred and is continuing, or would result from the Proposed
Competitive Bid Borrowing or from the application of the proceeds therefrom that constitutes
a Default;




     (c) no event has occurred and no circumstance exists as a result of which the
information concerning the undersigned that has been provided to the Agent and each Lender
by the undersigned in connection with the Credit Agreement would include an untrue statement
of a material fact or omit to state any material fact or any fact necessary to make the
statements contained therein, in the light of the circumstances under which they were made,
not misleading; and




     (d) the aggregate amount of the Proposed Competitive Bid Borrowing and all other
Borrowings to be made on the same day under the Credit Agreement is within the aggregate
amount of the unused Commitments of the Lenders.



	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	 	 
	 	 	PEPSICO, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 






2









 








Exhibit C to

Credit Agreement




FORM OF ASSIGNMENT AND ASSUMPTION




     This Assignment and Assumption (this “Assignment and Assumption”) is dated as of the
Effective Date set forth below and is entered into by and between [Insert name of Assignor] (the
“Assignor”) and [Insert name of Assignee] (the “Assignee”). Capitalized terms used
but not defined herein shall have the meanings given to them in the Credit Agreement identified
below (the “Credit Agreement”), receipt of a copy of which is hereby acknowledged by the
Assignee. The Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed
to and incorporated herein by reference and made a part of this Assignment and Assumption as if set
forth herein in full.



     For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the
Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, subject to
and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the
Effective Date inserted by the Agent as contemplated below (i) all of the Assignor’s rights and
obligations as a Lender under the Credit Agreement and any other documents or instruments delivered
pursuant thereto to the extent related to the amount and percentage interest identified below of
all of such outstanding rights and obligations of the Assignor under the respective facilities
identified below (including, without limitation, Letters of Credit and guarantees included in such
facilities) and (ii) to the extent permitted to be assigned under applicable law, all claims,
suits, causes of action and any other right of the Assignor (in its capacity as a Lender) against
any Person, whether known or unknown, arising under or in connection with the Credit Agreement, any
other documents or instruments delivered pursuant thereto or the loan transactions governed thereby
or in any way based on or related to any of the foregoing, including, but not limited to, contract
claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity
related to the rights and obligations sold and assigned pursuant to clause (i) above (the rights
and obligations sold and assigned pursuant to clauses (i) and (ii) above being referred to herein
collectively as, the “Assigned Interest”). Such sale and assignment is without recourse to
the Assignor and, except as expressly provided in this Assignment and Assumption, without
representation or warranty by the Assignor.




	1.	 	Assignor:                                         
	 
	2.	 	Assignee:                                          [and is an Affiliate/Approved Fund of [identify Lender]
	 
	3.	 	Company:      PepsiCo, Inc.
	 
	4.	 	Agent: Citibank, N.A., as the administrative agent under the Credit Agreement.





	 	 	 	 	 
	5.

	Credit Agreement:
	 	Five-Year Credit Agreement, dated as of May 22, 2006, among PepsiCo, Inc.
(the “Company”), the Lenders party thereto and Citibank, N.A., as Agent.






 









 







	6.	 	Assigned Interest:





	 	 	 	 	 	 	 
	 	 	Aggregate	 	 	 	 
	 	 	Amount of	 	Amount of	 	Percentage
	 	 	Commitment/	 	Commitment/	 	Assigned of
	 	 	Advances	 	Advances	 	Commitment/
	Facility Assigned	 	for all Lenders*	 	Assigned*	 	Advances1
	Revolving Credit

	 	$                     
	 	$                     
	 	                     %






[7.      Trade Date:                                         ]2



Effective Date:                                         , 20___[TO BE INSERTED BY AGENT AND WHICH SHALL BE THE EFFECTIVE
DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]



The terms set forth in this Assignment and Assumption are hereby agreed to:




	 	 	 	 	 
	 	 	ASSIGNOR

[NAME OF ASSIGNOR]
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Title:






	 	 	 	 	 
	 	 	ASSIGNEE

[NAME OF ASSIGNEE]
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Title:








 




			
	*	 	Amount to be adjusted to take into account any payments
or prepayments made between the Trade Date and the Effective Date.
	 
	1	 	Set forth, to at least 9 decimals, as a percentage of
the Commitment/Loans of all Lenders thereunder.
	 
	2	 	To be completed if the Assignor and the
Assignee intend that the minimum assignment amount is to be determined as of
the Trade Date.




 









 










	 	 	 	 	 
	 

	 	 	 	 
	Consented to and Accepted:	 	 
	 
	 	 	 	 
	CITIBANK, N.A., as Administrative Agent	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	[Consented to:]	 	 
	 
	 	 	 	 
	[PEPSICO, INC.]	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	[BANK OF AMERICA, N.A., as L/C Issuer]	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 






 









 





ANNEX 1 TO ASSIGNMENT AND ASSUMPTION




STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION



1. Representations and Warranties.




     1.1. Assignor. The Assignor (a) represents and warrants that (i) it is the legal and
beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any
lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken
all action necessary, to execute and deliver this Assignment and Assumption and to consummate the
transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any
statements, warranties or representations made in or in connection with the Credit Agreement or any
other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness,
sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial
condition of the Company, any of its Subsidiaries or Affiliates or any other Person obligated in
respect of any Loan Document or (iv) the performance or observance by the Company, any of its
Subsidiaries or Affiliates or any other Person of any of their respective obligations under any
Loan Document.



     1.2. Assignee. The Assignee (a) represents and warrants that (i) it has full power
and authority, and has taken all action necessary, to execute and deliver this Assignment and
Assumption and to consummate the transactions contemplated hereby and to become a Lender under the
Credit Agreement, (ii) it meets all requirements of an Eligible Assignee under the Credit Agreement
(subject to receipt of such consents as may be required under the Credit Agreement), (iii) from and
after the Effective Date, it shall be bound by the provisions of the Credit Agreement as a Lender
thereunder and, to the extent of the Assigned Interest, shall have the obligations of a Lender
thereunder, (iv) it has received a copy of the Credit Agreement, together with copies of the most
recent financial statements delivered pursuant to Section 5.01(d) thereof, as applicable, and such
other documents and information as it has deemed appropriate to make its own credit analysis and
decision to enter into this Assignment and Assumption and to purchase the Assigned Interest on the
basis of which it has made such analysis and decision independently and without reliance on the
Agent or any other Lender, and (v) if it is a Lender that is not a “United States person” within
the meaning of Section 7701(a)(30) of the Internal Revenue Code (a “Foreign Lender’), attached
hereto is any documentation required to be delivered by it pursuant to the terms of the Credit
Agreement, duly completed and executed by the Assignee; and (b) agrees that (i) it will,
independently and without reliance on the Agent, the Assignor 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 decisions in taking or not taking action under the Loan Documents, and (ii) it will perform
in accordance with their terms all of the obligations which by the terms of the Loan Documents are
required to be performed by it as a Lender.



     2. Payments. From and after the Effective Date, the Agent shall make all payments in
respect of the Assigned Interest (including payments of principal, interest, fees and other
amounts) to the Assignee whether such amounts have accrued prior to or on or after the Effective
Date. The Assignor and the Assignee shall make all appropriate adjustments in



 









 




payments by the Agent for periods prior to the Effective Date or with respect to the making of
this assignment directly between themselves.




     3. General Provisions. This Assignment and Assumption shall be binding upon, and
inure to the benefit of, the parties hereto and their respective successors and assigns. This
Assignment and Assumption may be executed in any number of counterparts, which together shall
constitute one instrument. Delivery of an executed counterpart of a signature page of this
Assignment and Assumption by telecopy shall be effective as delivery of a manually executed
counterpart of this Assignment and Assumption. This Assignment and Assumption shall be governed
by, and construed in accordance with, the laws of the State of New York.



 









 





Exhibit D to

Credit Agreement




FORM OF DESIGNATION LETTER




May __, 2006




To
Citibank, N.A.,
      as
Agent




Attention:




Ladies and Gentlemen:




     We make reference to the Five-Year Credit Agreement (as amended or modified from time to time,
the “Credit Agreement”; the terms defined therein being used herein as therein defined)
dated as of May 22, 2006 among PepsiCo, Inc., (the “Company”), Citibank, N.A., as Agent
(the “Agent”), and the banks party thereto (the “Initial Lenders”).



     The Company hereby designates [                                        ] (the “Borrowing Subsidiary”), a
Subsidiary of the Company and a corporation duly incorporated under the laws of [                                        ],
as a Borrower in accordance with Section 2.17 of the Credit Agreement until such designation is
terminated in accordance with said Section 2.17.



     The Borrowing Subsidiary hereby accepts the above designation and hereby expressly and
unconditionally accepts the obligations of a Borrower under the Credit Agreement, adheres to the
Credit Agreement and agrees and confirms that, upon your execution and return to the Company of the
enclosed copy of this letter, such Borrowing Subsidiary shall be a Borrower for purposes of the
Credit Agreement and agrees to be bound by and perform and comply with the terms and provisions of
the Credit Agreement applicable to it as if it had originally executed the Credit Agreement as a
Borrower. The Borrowing Subsidiary hereby authorizes and empowers the Company to act as its
representative and attorney-in-fact for the purposes of signing documents and giving and receiving
notices (including notices of Borrowing under the Credit Agreement) and other communications in
connection with the Credit Agreement and the transactions contemplated thereby and for the purposes
of modifying or amending any provision of the Credit Agreement and further agrees that the Agent
and each Lender may conclusively rely on the foregoing authorization.



     The Company hereby represents and warrants to the Agent and each Lender that, before and after
giving effect to this Designation Letter, (i) the representations and warranties set forth in
Section 4.01 of the Credit Agreement (except the representations set forth in the last sentence of
subsection (e) thereof and in subsection (f) thereof (other than clause (ii) thereof)) are true and
correct on the Effective Date as if made on and as of the date hereof and (ii) no Default has
occurred and is continuing. The Borrowing Subsidiary represents and warrants that each of the
representations and warranties set forth in Section 4.01(a) (as if the reference therein to North



 









 







Carolina were a reference to its jurisdiction of organization), (b), (c) and (d) of the Credit
Agreement are true as if each reference therein to the Company were a reference to the Borrowing
Subsidiary and as if each reference therein to the Loan Documents were a reference to this
Designation Letter and the Note executed by the Borrowing Subsidiary in connection herewith.



     The Borrowing Subsidiary hereby aware that this Designation Letter, the Credit Agreement and
the Notes shall be governed by, and construed in accordance with, the laws of the State of New
York. The Borrowing Subsidiary hereby submits to the nonexclusive jurisdiction of the United
States District Court for the Southern District of New York and of any New York state court sitting
in New York City for the purposes of all legal proceedings arising out of or relating to this
Designation Letter, the Credit Agreement or the transactions contemplated thereby. The Borrowing
Subsidiary irrevocably waives, to the fullest extent permitted by law, any objection which it may
now or hereafter have to the laying of the venue of any such proceeding brought in such a court and
any claim that any such proceeding brought in such a court has been brought in an inconvenient
forum. The Borrowing Subsidiary further agrees that service of process in any such action or
proceeding brought in New York may be made upon it by service upon the Borrower at the “Address for
Notices” specified below its name on the signature pages to the Credit Agreement.



     Without limiting the foregoing, the Borrowing Subsidiary joins in the submission, agreements,
waivers and consents in Section 8.11 and 8.12 of the Credit Agreement.



	 	 	 	 	 
	 	 	PEPSICO, INC.
	 
	 	 	 	 
	 

	 	By	 	 
	 

	 	 	 	 
	 	 	Title:
	 
	 	 	 	 
	 	 	[NAME OF BORROWING SUBSIDIARY]
	 
	 	 	 	 
	 

	 	By	 	 
	 

	 	 	 	 
	 

	 	 	 	Title:






	 	 	 	 	 
	ACCEPTED	 	 
	 
	 	 	 	 
	CITIBANK, N.A.,

    as Agent	 	 
	 
	 	 	 	 
	By
	 	 	 	 
	 

	 	 

	 	 
	 

	 	Title:	 	 






 









 





Exhibit E to

Credit Agreement




FORM OF TERMINATION LETTER




To Citibank, N.A.,
 as
Agent




Attention:




Ladies and Gentlemen:




     We make reference to the Five-Year Credit Agreement (as amended or modified from time to time,
the “Credit Agreement”; the terms defined therein being used herein as therein defined)
dated as of May 22, 2006 by and among PepsiCo, Inc. (the “Company”), Citibank, N.A., as
Agent, and the banks party thereto.



     The Company hereby terminates the status as a Borrowing Subsidiary of [                                        ], a
corporation incorporated under the laws of [                                        ], in accordance with Section
2.17 of the Credit Agreement, effective as of the date of receipt of this notice by the Agent. The
undersigned hereby represents and warrants that all principal of and interest on any Advance of the
above-referenced Borrowing Subsidiary and all other amounts payable by such Borrowing Subsidiary
pursuant to the Credit Agreement have been paid in full on or prior to the date hereof.
Notwithstanding the foregoing, this Termination Letter shall not affect any obligation which by the
terms of the Credit Agreement survives termination thereof.



	 	 	 	 	 
	 	 	PEPSICO, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title: