exv10w1



 








EXHIBIT
10.1




EXECUTION COPY




NEWELL RUBBERMAID INC.




 






CREDIT AGREEMENT




Dated as of November 14, 2005




 






$750,000,000




 






JPMORGAN CHASE BANK, N.A.

as Administrative Agent




 






J.P. MORGAN SECURITIES INC.,

as Sole Lead Arranger and Sole Bookrunner




BANK OF AMERICA, N.A.

BARCLAYS BANK PLC

BNP PARIBAS

and

CITICORP USA, INC.,

as Co-Syndication Agents










 








TABLE OF CONTENTS




	 	 	 	 	 
	 	 	Page
	SECTION 1. DEFINITIONS AND ACCOUNTING MATTERS
	 	 	1	 
	1.01 Certain Defined Terms
	 	 	1	 
	1.02 Accounting Terms and Determinations
	 	 	17	 
	1.03 Types of Loans
	 	 	18	 
	1.04 Terms Generally
	 	 	18	 
	1.05. Currencies; Currency Equivalents; Provisions Relating to European
Monetary Union
	 	 	18	 
	 
	 	 	 	 
	SECTION 2. COMMITMENTS
	 	 	19	 
	2.01 Committed Loans
	 	 	19	 
	2.02 Borrowings of Committed Loans
	 	 	20	 
	2.03 Competitive Loans
	 	 	21	 
	2.04. Letters of Credit
	 	 	25	 
	2.05 Borrowings by Designated Borrowers
	 	 	29	 
	2.06 Changes of Commitments
	 	 	30	 
	2.07 Fees
	 	 	32	 
	2.08 Lending Offices
	 	 	33	 
	2.09 Several Obligations; Remedies Independent
	 	 	33	 
	2.10 Evidence of Debt
	 	 	33	 
	2.11 Prepayments; Conversions and Continuations
	 	 	33	 
	2.12. Extension of Commitment Termination Date
	 	 	34	 
	 
	 	 	 	 
	SECTION 3. PAYMENTS OF PRINCIPAL AND INTEREST
	 	 	35	 
	3.01 Repayment of Loans
	 	 	35	 
	3.02 Interest
	 	 	36	 
	3.03 Redenomination
	 	 	37	 
	 
	 	 	 	 
	SECTION 4. PAYMENTS; PRO RATA TREATMENT; COMPUTATIONS; ETC
	 	 	37	 
	4.01 Payments
	 	 	37	 
	4.02 Pro Rata Treatment
	 	 	38	 
	4.03 Computations
	 	 	38	 
	4.04 Non-Receipt of Funds by the Administrative Agent
	 	 	38	 
	4.05 Set-off; Sharing of Payments
	 	 	39	 
	 
	 	 	 	 
	SECTION 5. YIELD PROTECTION AND ILLEGALITY
	 	 	40	 
	5.01 Additional Costs
	 	 	40	 
	5.02 Limitation on Types of Loans
	 	 	42	 
	5.03 Illegality
	 	 	42	 
	5.04 Base
Rate Loans Pursuant to Sections 5.01 and 5.03
	 	 	42	 
	5.05 Compensation
	 	 	43	 
	5.06 Taxes
	 	 	44	 
	5.07 Replacement of Lenders
	 	 	45	 






- i -








 




	 	 	 	 	 
	 	 	Page
	SECTION 6. CONDITIONS PRECEDENT
	 	 	45	 
	6.01 Effective Date
	 	 	45	 
	6.02 Initial and Subsequent Credit Extensions
	 	 	47	 
	 
	 	 	 	 
	SECTION 7. REPRESENTATIONS AND WARRANTIES
	 	 	47	 
	7.01 Corporate Existence
	 	 	47	 
	7.02 Financial Condition
	 	 	47	 
	7.03 Litigation
	 	 	48	 
	7.04 No Breach
	 	 	48	 
	7.05 Corporate Action
	 	 	49	 
	7.06 Approvals
	 	 	49	 
	7.07 Use of Credit
	 	 	49	 
	7.08 ERISA
	 	 	49	 
	7.09 Investment Company Act; Public Utility Holding Company Act
	 	 	49	 
	7.10 Credit Agreements
	 	 	50	 
	7.11 Hazardous Materials
	 	 	50	 
	7.12 Taxes
	 	 	50	 
	7.13 True and Complete Disclosure
	 	 	51	 
	7.14 Subsidiaries
	 	 	51	 
	7.15 Compliance with Law
	 	 	51	 
	7.16 Designated Borrower Approvals
	 	 	51	 
	 
	 	 	 	 
	SECTION 8. COVENANTS OF THE COMPANY
	 	 	51	 
	8.01 Financial Statements
	 	 	52	 
	8.02 Litigation
	 	 	54	 
	8.03
Corporate Existence, Etc.
	 	 	54	 
	8.04 Insurance
	 	 	54	 
	8.05 Use of Proceeds
	 	 	54	 
	8.06 Indebtedness
	 	 	55	 
	8.07 Fundamental Changes
	 	 	55	 
	8.08 Liens
	 	 	56	 
	8.09 Lines of Businesses
	 	 	57	 
	8.10 Total Indebtedness to Total Capital
	 	 	57	 
	8.11 Interest Coverage Ratio
	 	 	57	 
	8.12 Transactions with Affiliates
	 	 	58	 
	 
	 	 	 	 
	SECTION 9. EVENTS OF DEFAULT
	 	 	58	 
	 
	 	 	 	 
	SECTION 10. THE ADMINISTRATIVE AGENT
	 	 	61	 
	10.01 Appointment, Powers and Immunities
	 	 	61	 
	10.02 Reliance by Administrative Agent
	 	 	61	 
	10.03 Defaults
	 	 	61	 
	10.04 Rights as a Lender
	 	 	62	 
	10.05 Indemnification
	 	 	62	 
	10.06 Non-Reliance on Administrative Agent and Other Lenders
	 	 	62	 
	10.07 Failure to Act
	 	 	63	 






- ii -








 






	 	 	 	 	 
	 	 	Page
	10.08 Resignation or Removal of Administrative Agent
	 	 	63	 
	10.09 Lead Arranger and Other Agents
	 	 	63	 
	 
	 	 	 	 
	SECTION 11. GUARANTEE
	 	 	64	 
	11.01 Guarantee
	 	 	64	 
	11.02 Obligations Unconditional
	 	 	64	 
	11.03 Reinstatement
	 	 	65	 
	11.04 Subrogation
	 	 	65	 
	11.05 Remedies
	 	 	65	 
	11.06 Continuing Guarantee
	 	 	65	 
	 
	 	 	 	 
	SECTION 12. MISCELLANEOUS
	 	 	65	 
	12.01 Waiver
	 	 	65	 
	12.02 Notices
	 	 	66	 
	12.03
Expenses, Etc.
	 	 	66	 
	12.04
Amendments, Etc.
	 	 	66	 
	12.05. Assignments and Participations
	 	 	67	 
	12.06 Survival
	 	 	70	 
	12.07 Captions
	 	 	70	 
	12.08 Counterparts; Effectiveness
	 	 	70	 
	12.09 Governing Law; Jurisdiction; Service of Process; Waiver of Jury Trial; Etc
	 	 	70	 
	12.10 Successors and Assigns
	 	 	72	 
	12.11 Judgment Currency
	 	 	72	 
	12.12. USA PATRIOT Act
	 	 	72	 
	12.13. Waiver of Notice under Existing Credit Agreement
	 	 	72	 






	 	 	 	 	 
	Annex I

	 	-
	 	Commitments
	Schedule I

	 	-
	 	List of Indebtedness
	Schedule II

	 	-
	 	List of Certain Liens
	 
	EXHIBIT A-1

	 	-
	 	Form of Opinion of Special Illinois Counsel
	EXHIBIT A-2

	 	-
	 	Form of Opinion of Dale L. Matschullat, Esq., Vice-President — General Counsel to the
	 

	 	 	 	Company and its Subsidiaries
	EXHIBIT B

	 	-
	 	Form of Opinion of Special New York Counsel to the Administrative Agent
	EXHIBIT C

	 	-
	 	Form of Competitive Bid Request
	EXHIBIT D

	 	-
	 	Form of Competitive Bid
	EXHIBIT E-1

	 	-
	 	Form of Designation Letter
	EXHIBIT E-2

	 	-
	 	Form of Termination Letter
	EXHIBIT F

	 	-
	 	Form of Assignment and Assumption
	EXHIBIT G

	 	-
	 	Form of Assumption Agreement












 






 


          CREDIT AGREEMENT dated as of November 14, 2005, between NEWELL RUBBERMAID INC., a corporation
duly organized and validly existing under the laws of the State of Delaware (together with its
successors, the “Company”); each of the lenders which is a signatory hereto (together with
its successors and permitted assigns, individually, a “Lender” and, collectively, the
“Lenders”); and JPMORGAN CHASE BANK, N.A., as administrative agent for the Lenders (in such
capacity, together with its successors in such capacity, the “Administrative Agent”).




          The Company has requested that the Lenders make loans to it and the other Borrowers (as
hereinafter defined) in an aggregate principal amount not exceeding $750,000,000 at any one time
outstanding. The Lenders are prepared to make such loans upon the terms and conditions hereof,
and, accordingly, the parties agree as follows:




          SECTION 1. DEFINITIONS AND ACCOUNTING MATTERS.




          1.01 Certain Defined Terms.




          As used herein, the following terms shall have the following meanings (all terms defined in
this Section 1 or in other provisions of this Agreement in the singular to have the same meanings
when used in the plural and vice versa):




          “Additional Commitment Lender” shall have the meaning assigned to that term in Section
2.12.




          “Adjusted LIBO Rate” shall mean, for any LIBO Rate Loan for any Interest Period, a
rate per annum (rounded upwards, if necessary, to the nearest 1/16 of 1%) determined by the
Administrative Agent to be equal to the LIBO Rate for the Interest Period for such Loan divided by
1 minus the Reserve Requirement for such Loan for such Interest Period.




          “Administrative Agent’s Account” shall mean, in respect of any Currency, such account
as the Administrative Agent shall designate in a notice to the Company and the Lenders.




          “Administrative Questionnaire” shall mean an Administrative Questionnaire in the form
supplied by the Administrative Agent.




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




          “Alternative Currency” shall mean at any time (a) Euros and (b) any currency (other
than Dollars and Euros) so long as at such time, (i) such currency is dealt with in the London
interbank deposit market, (ii) such currency is freely transferable and convertible into Dollars in
the London foreign exchange market and (iii) no central bank or other governmental authorization in
the country of issue of such currency is required to permit use of such currency by any Lender for
making any Loan hereunder and/or to permit the relevant Borrower to borrow




Credit Agreement












 



- 2 -



and repay the principal thereof and to pay the interest thereon, unless such authorization has
been obtained and is in full force and effect.




          “Applicable Facility Fee Rate”, “Applicable Margin” and “Additional
Margin” shall mean, during any period when the Rating is at one of the Rating Groups specified
below, the percentage set forth below opposite the reference to such fee or to the relevant Type of
Committed Loan:




	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Rating	 	Rating	 	Rating	 	Rating	 	Rating	 	Rating
	 	 	Group	 	Group	 	Group	 	Group	 	Group	 	Group
	 	 	I	 	II	 	III	 	IV	 	V	 	VI
	Applicable Facility

Fee Rate

	 	 	0.06	%	 	 	0.07	%	 	 	0.08	%	 	 	0.10	%	 	 	0.125	%	 	 	0.20	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Applicable Margin for

Committed LIBOR Loans

	 	 	0.19	%	 	 	0.23	%	 	 	0.27	%	 	 	0.40	%	 	 	0.525	%	 	 	0.70	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Applicable Margin for

Base Rate Loans

	 	 	0	%	 	 	0	%	 	 	0	%	 	 	0	%	 	 	0	%	 	 	0	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Additional Margin

(Utilization > 50%)

	 	 	0.10	%	 	 	0.10	%	 	 	0.10	%	 	 	0.10	%	 	 	0.10	%	 	 	0.10	%





Any change in the Applicable Facility Fee Rate, the Applicable Margin or the Additional Margin by
reason of a change in the Moody’s Rating, the Standard & Poor’s Rating or the Fitch Rating shall
become effective on the date of announcement or publication by the respective Rating Agency of a
change in such Rating or, in the absence of such announcement or publication, on the effective date
of such changed rating.




          “Applicable Lending Office” shall mean for each Lender and for each Type and Currency
of Loan the lending office of such Lender (or of an Affiliate of such Lender) designated for such
Type and Currency of Loan in the Administrative Questionnaire submitted by such Lender or such
other office of such Lender (or of an Affiliate of such Lender) as such Lender may from time to
time specify to the Administrative Agent and the Company.




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




          “Approved Designated Borrower” shall mean (i) any Domestic Subsidiary that is a
Wholly-Owned Subsidiary of the Company as to which a Designation Letter has been delivered to the
Administrative Agent and as to which a Termination Letter shall not have been




Credit Agreement











 



- 3 -

delivered to the Administrative Agent, which Subsidiary has been approved as a borrower
hereunder by all of the Lenders, all in accordance with Section 2.05, and (ii) for the purposes of
Section 5.06, also the Company.




          “Approved Fund” shall mean any Person (other than a natural person) that is engaged in
making, purchasing, holding or investing in bank loans and similar extensions of credit in the
ordinary course of its business and that is administered or managed by (a) a Lender, (b) an
Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a
Lender.




          “Assignment and Assumption” shall mean an assignment and assumption entered into by a
Lender and an assignee (with the consent of any party whose consent is required by Section 12.05),
and accepted by the Administrative Agent, in the form of Exhibit F or any other form approved by
the Administrative Agent.




          “Assuming Lender” shall have the meaning assigned to that term in Section 2.06(d)(i).




          “Assumption Agreement” shall mean an assumption agreement entered into by the Company
and an Assuming Lender pursuant to Section 2.06(d), and accepted by the Administrative Agent, in
the form of Exhibit G or any other form approved by the Administrative Agent.




          “Bankruptcy Code” means the United States Bankruptcy Code of 1978, as amended from
time to time.




          “Base Rate” shall mean, with respect to any Base Rate Loan, for any day, the higher of
(a) the Federal Funds Rate for such day plus 1/2 of 1% and (b) the Prime Rate for such day.




          “Base Rate Loans” shall mean Loans which bear interest based upon the Base Rate.




          “Borrowers” shall mean the Company, each Approved Designated Borrower and each
Designated Borrower.




          “Business Day” shall mean any day (a) that is not a Saturday, Sunday or other day on
which commercial banks are authorized or required to close in New York City, (b) if such day
relates to the giving of notices or quotes in connection with a LIBOR Auction or to a borrowing of,
a payment or prepayment of principal of or interest on, Conversion of or into, or an Interest
Period for, a LIBO Rate Loan or a notice by the Company with respect to any such borrowing,
payment, prepayment, Conversion or Interest Period, also on which dealings in deposits are carried
out in the London interbank market and (c)(i) if such day relates to the date on which the LIBO
Rate is determined under this Agreement for the Interest Period of any Loan denominated in Euros,
that is also a TARGET Day or (ii) if such day relates to a borrowing of, a payment or prepayment of
principal of or interest on, or an Interest Period for, any Loan denominated in an Alternative
Currency (other than Euros), or a notice by the Company with respect to any such




Credit Agreement











 



- 4 -

borrowing, payment, prepayment or Interest Period, also a day commercial banks and the London
foreign exchange market settle payments for such Alternative Currency in the principal finance
center where such currency is cleared and settled (as determined by the Administrative Agent).




          “Capital Lease Obligations” shall mean, as to any Person, the obligations of such
Person to pay rent or other amounts under a lease of (or other agreement conveying the right to
use) real and/or personal property which obligations are required to be classified and accounted
for as a capital lease on a balance sheet of such Person under GAAP (including Statement of
Financial Accounting Standards No. 13 of the Financial Accounting Standards Board) and, for
purposes of this Agreement, the amount of such obligations shall be the capitalized amount thereof,
determined in accordance with GAAP (including such Statement No. 13).




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




          “Commitment” shall mean, as to each Lender, the obligation of such Lender to make
Committed Loans and to acquire participations in Letters of Credit in an aggregate amount at any
one time outstanding equal to the amount set opposite such Lender’s name on Annex I hereto under
the caption “Commitment”, or in the Assignment and Assumption, an Assumption Agreement or any
agreement entered into under Section 2.12 pursuant to which such Lender shall have assumed its
Commitment, as applicable (as the same may be reduced or increased from time to time pursuant to
this Agreement). The original aggregate principal amount of the Commitments is $750,000,000.




          “Commitment Termination Date” shall mean November 14, 2010; provided that, if
such date is not a Business Day, the Commitment Termination Date shall be the next preceding
Business Day ), subject to extension (in the case of each Lender consenting thereto) as provided in
Section 2.12.




          “Commitment Utilization Day” shall mean (a) so long as the Commitments are in effect,
each day that the sum of the aggregate outstanding principal amount of the Committed Loans and the
aggregate LC Exposures exceeds 50% of the sum of the Commitments and (b) following the termination
of the Commitments hereunder, each day on which any Loans are outstanding hereunder.




          “Committed Credit Exposure” shall mean, with respect to any Lender at any time, the
sum of the outstanding principal amount of such Lender’s Committed Loans and its LC Exposure at
such time.




          “Committed Loans” shall mean the loans provided for by Section 2.01.




          “Committed LIBOR Loans” shall mean Committed Loans the interest rates on which are
determined on the basis of Adjusted LIBO Rates.




          “Competitive Affiliate Loan” shall mean a Competitive Loan to be made by an Affiliate
of a Lender pursuant to Section 2.03(h).



Credit Agreement











 



- 5 -




          “Competitive Bid” shall have the meaning assigned to that term in Section 2.03(c)(i).




          “Competitive Bid Rate” shall have the meaning assigned to that term in Section
2.03(c)(ii)(D).




          “Competitive Bid Request” shall have the meaning assigned to that term in Section
2.03(b).




          “Competitive Borrowing” shall have the meaning assigned to that term in Section
2.03(b).




          “Competitive LIBOR Loans” shall mean Competitive Loans the interest rates on which are
determined on the basis of Adjusted LIBO Rates pursuant to a LIBOR Auction.




          “Competitive Loan Limit” shall have the meaning assigned to that term in Section
2.03(c)(ii).




          “Competitive Loans” shall mean the loans provided for by Section 2.03.




          “Consolidated EBITDA” shall mean, for any period, Consolidated Net Income for such
period plus, without duplication and to the extent deducted in determining such
Consolidated Net Income for such period, the sum of (a) income tax expense, (b) interest expense,
amortization or writeoff of debt discount and debt issuance costs and commissions, discounts and
other fees and charges associated with Indebtedness (including the Loans), (c) depreciation and
amortization expense, (d) amortization of intangibles (including, but not limited to, goodwill) and
organization costs and (e) any extraordinary, unusual or non-recurring charges or losses, and
minus, to the extent included in determining such Consolidated Net Income for such period,
the sum of (a) interest income, (b) any extraordinary, unusual or non-recurring income or gains
(including, whether or not otherwise includable as a separate item in the statement of such
Consolidated Net Income for such period, gains on the sales of assets outside of the ordinary
course of business) and (c) any other non-cash income, all as determined on a consolidated basis.




          “Consolidated Interest Expense” shall mean, for any period and without duplication,
total interest expense (including that attributable to Capital Lease Obligations) of the Company
and its Subsidiaries for such period with respect to all outstanding Indebtedness of the Company
and its Subsidiaries accrued or capitalized during such period (whether or not actually paid during
such period) (including all commissions, discounts and other fees and charges owed with respect to
standby letters of credit and bankers’ acceptance financing and net costs under Swap Agreements in
respect of interest rates to the extent such net costs are allocable to such period in accordance
with GAAP), but excluding any interest expense for such period relating to quarterly or monthly
income preferred securities, quarterly income capital securities or other similar securities.




          “Consolidated Net Income” shall mean, for any period, the consolidated net income (or
loss) of the Company and its Subsidiaries, determined on a consolidated basis in



Credit Agreement












 



- 6 -

accordance with GAAP; provided that there shall be excluded (a) the income (or
deficit) of any Person accrued prior to the date it becomes a Subsidiary of the Company or is
merged into or consolidated with the Company or any of its Subsidiaries, (b) the income (or
deficit) of any Person (other than a Subsidiary of the Company) in which the Company or any of its
Subsidiaries has an ownership interest, except to the extent that any such income is actually
received by the Company or such Subsidiary in the form of dividends or similar distributions and
(c) the undistributed earnings of any Subsidiary of the Company to the extent that the declaration
or payment of dividends or similar distributions by such Subsidiary is not at the time permitted by
the terms of any security issued by the Company or any of its Subsidiaries or of any agreement,
instrument or other undertaking to which the Company or any of its Subsidiaries is a party or by
which any of them or their respective property is bound (other than under any Credit Document) or
Requirement of Law applicable to such Subsidiary.




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




          “Convert”, “Conversion” and “Converted” shall refer to a conversion
pursuant to Section 2.11(b) of one Type of Committed Loans into the other Type of Committed Loans,
which may be accompanied by a transfer by a Lender (at its sole discretion) of a Committed Loan
from one Applicable Lending Office to another).




          “Continue”, “Continuation” and “Continued” shall refer to a
continuation pursuant to Section 2.11(b) of a Committed LIBOR Loan from one Interest Period to the
next Interest Period.




          “Credit Documents” shall mean this Agreement, the Notes, if any, each Designation
Letter and each Termination Letter.




          “Credit Extension” shall mean the making of any Loan or the issuance, amendment,
renewal or extension of any Letter of Credit hereunder.




          “Currency” shall mean Dollars or any Alternative Currency.




          “Default” shall mean an Event of Default or an event which with notice or lapse of
time or both would become an Event of Default.




          “Designated Borrower” shall mean any Wholly-Owned Subsidiary of the Company as to
which a Designation Letter has been delivered to the Administrative Agent and as to which a
Termination Letter shall not have been delivered to the Administrative Agent in accordance with
Section 2.05; and the term “Designated Borrower” shall include any Approved Designated Borrower.
As of the Effective Date, there are no Designated Borrowers hereunder.




          “Designation Letter” shall have the meaning assigned to that term in Section 2.05(a).




Credit Agreement











 



- 7 -


          “Determination Date” shall mean, for any Disposition, the last day of the fiscal
quarter ending on or immediately preceding the date of such Disposition.




          “Disposition” shall have the meaning assigned to that term in Section 8.07(vi).




          “Disposition Period” shall mean, for any Disposition, a period of twelve months ending
on the date of such Disposition.




          “Dollar Equivalent” shall mean, with respect to any Loan denominated in an Alternative
Currency, the amount of Dollars that would be required to purchase the amount of the Alternative
Currency of such Loan on the date such Loan is requested (or, (a) in the case of Competitive Loans,
the date of the related Competitive Bid Request and (b) in the case of any redenomination under
Section 3.03, on the date of such redenomination), based upon the arithmetic mean (rounded upwards,
if necessary, to the nearest 1/100 of 1%), as determined by the Administrative Agent, of the spot
selling rate at which the Reference Banks offer to sell such Alternative Currency for Dollars in
the London foreign exchange market at approximately 11:00 a.m. London time for delivery two
Business Days later.




          “Dollars” and “$” shall mean lawful money of the United States of America.




          “Domestic Subsidiary” shall mean any Subsidiary of the Company that is incorporated
under the laws of the United States of America or any State thereof or the District of Columbia.




          “Effective Date” shall mean the date on which the conditions specified in Section 6.01
are satisfied (or waived in accordance with Section 12.04).




          “Environmental Affiliate” shall mean, as to any Person, any other Person whose
liability (contingent or otherwise) for any Environmental Claim such Person may have retained,
assumed or otherwise become liable (contingently or otherwise), whether by contract, operation of
law or otherwise; provided that each Subsidiary of such Person, and each former Subsidiary
or division of such Person transferred to another Person, shall in any event be an “Environmental
Affiliate” of such Person.




          “Environmental Claim” shall mean, with respect to any Person, any notice, claim,
demand or other communication (whether written or oral) by any other Person alleging or asserting
liability of such Person for investigatory costs, cleanup costs, governmental response costs,
damages to natural resources or other Property, personal injuries, fines or penalties arising out
of, based on or resulting from (a) the presence, or release into the environment, of any hazardous
material at any location, whether or not owned by such Person, or (b) circumstances forming the
basis of any violation, or alleged violation, of any Environmental Law.




          “Environmental Laws” shall mean any and all Federal, state, local and foreign
statutes, laws, regulations, ordinances, rules, judgments, orders, decrees, permits, concessions,
grants, franchises, licenses, agreements or other governmental restrictions relating to the
environment or to emissions, discharges, releases or threatened releases of pollutants,
contaminants, chemicals or industrial, toxic or hazardous substances or wastes into the



Credit Agreement











 



- 8 -

environment, including, without limitation, ambient air, surface water, ground water or land,
or otherwise relating to the manufacture, processing, distribution, use, treatment, storage,
disposal, transport or handling of pollutants, contaminants, chemicals or industrial, toxic or
hazardous substances or wastes.




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




          “ERISA Affiliate” shall mean any trade or business (whether or not incorporated) that,
together with the Company, is treated as a single employer under Section 414(b) or (c) of the Code,
or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a single
employer under Section 414 of the Code.




          “Euro” shall mean the single currency of Participating Member States of the European
Union.




          “Event of Default” shall have the meaning assigned to that term in Section 9.




          “Extension Date” shall have the meaning assigned to that term in Section 2.12.




          “Extension Request” shall have the meaning assigned to that term in Section 2.12.




          “Federal Funds Rate” shall mean, for any day, the weighted average (rounded upwards,
if necessary, to the nearest 1/100th of 1%) of the rates on overnight Federal funds transactions
with members of the Federal Reserve System arranged by federal funds brokers on such day as
published by the Federal Reserve Bank of New York on the Business Day next succeeding such day,
provided that (i) if the day for which such rate is to be determined is not a Business Day,
the Federal Funds Rate for such day shall be such rate on such transactions on the next preceding
Business Day as so published on the next succeeding Business Day, and (ii) if such rate is not so
published for any day, the Federal Funds Rate for such day shall be the average (rounded upwards,
if necessary, to the next 1/100th of 1%) of the quotations for such day for transactions
received by the Administrative Agent from three Federal funds brokers of recognized standing
selected by it.




          “Fitch” shall mean Fitch Investors Services, Inc. or any successor thereto.




          “Fitch Rating” shall mean, as of any date, the rating most recently published by Fitch
relating to the unsecured, long-term, senior debt securities of the Company.




          “Foreign Currency Equivalent” shall mean, with respect to any amount in Dollars, the
amount of any Alternative Currency that could be purchased with such amount of Dollars using the
reciprocal of foreign exchange rate(s) specified in the definition of the term “Dollar Equivalent”,
as determined by the Administrative Agent.




          “Foreign Subsidiary” shall mean any Subsidiary of the Company that is not a Domestic
Subsidiary.




Credit Agreement











 



- 9 -




          “GAAP” shall mean generally accepted accounting principles applied on a basis
consistent with those which, in accordance with the last sentence of Section 1.02(a), are to be
used in making the calculations for purposes of determining compliance with the provisions of this
Agreement.




          “Governmental Authority” shall mean any nation or government, any state or other
political subdivision thereof, any agency, authority, instrumentality, regulatory body, court,
central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or
administrative functions of or pertaining to government, any securities exchange and any
self-regulatory organization.




          “Guarantee” of any Person shall mean any guarantee, endorsement, contingent agreement
to purchase or to furnish funds for the payment or maintenance of, or any other contingent
liability on or with respect to, the Indebtedness, other obligations, net worth, working capital or
earnings of any other Person (including, without limitation, the liability of such Person in
respect of the Indebtedness of any partnership of which such Person is a general partner), or the
guarantee by such Person of the payment of dividends or other distributions upon the stock of any
other Person, or the agreement by such Person to purchase, sell or lease (as lessee or lessor)
property, products, materials, supplies or services primarily for the purpose of enabling any other
Person to make payment of its obligations or to assure a creditor against loss, and the verb
“Guarantee” shall have a correlative meaning, provided that the term “Guarantee”
shall not include endorsements for collection or deposits in the ordinary course of business.




          “Increasing Lender” shall have the meaning assigned to that term in Section
2.06(d)(i).




          “Indebtedness” shall mean, as to any Person at any date (without duplication): (i)
indebtedness created, issued, incurred or assumed by such Person for borrowed money or evidenced by
bonds, debentures, notes or similar instruments; (ii) all obligations of such Person to pay the
deferred purchase price of property or services, excluding, however, trade accounts payable (other
than for borrowed money) arising in, and accrued expenses incurred in, the ordinary course of
business of such Person so long as such trade accounts payable are paid within 120 days of the date
the respective goods are delivered or the services are rendered; (iii) all Indebtedness of others
secured by a Lien on any asset of such Person, whether or not such Indebtedness is assumed by such
Person; (iv) all Indebtedness of others Guaranteed by such Person; (v) all Capital Lease
Obligations; (vi) reimbursement obligations of such Person (whether contingent or otherwise) in
respect of bankers acceptances, surety or other bonds and similar instruments (other than
commercial, standby or performance letters of credit); (vii) unpaid reimbursement obligations of
such Person (other than contingent obligations) in respect of commercial, standby or performance
letters of credit; and (viii) debt securities or obligations (including preferred debt securities)
issued in connection with Permitted Securitizations included as indebtedness in accordance with
GAAP on a consolidated balance sheet of such Person.




          “Interest Coverage Ratio” shall mean, as at any date of determination thereof, the
ratio of (a) Consolidated EBITDA for the period of four consecutive fiscal quarters ending on or
most recently ended prior to such date to (b) Consolidated Interest Expense for such period.




Credit Agreement











 









- 10 -




          “Interest Period” shall mean:





(a) with respect to any Committed LIBOR Loan, each period commencing on the date such
Committed LIBOR Loan is made or Converted from a Committed Loan of another Type or the last
day of the next preceding Interest Period for such Loan and ending on the numerically
corresponding day in the first, second, third or sixth calendar month thereafter, as the
Company (on its own behalf and on behalf of any other Borrower) may select as provided in
Section 2.02, except that each Interest Period that commences on the last Business Day of a
calendar month (or on any day for which there is no numerically corresponding day in the
appropriate subsequent calendar month) shall end on the last Business Day of the appropriate
subsequent calendar month;




(b) with respect to any Set Rate Loan, the period commencing on the date such Set Rate Loan
is made and ending on any Business Day up to 180 days thereafter, as the Company may select
as provided in Section 2.03(b); and




(c) with respect to any Competitive LIBOR Loan, the period commencing on the date such
Competitive LIBOR Loan is made and ending on the numerically corresponding day in the first,
second, third or sixth calendar month thereafter, as the Company may select as provided in
Section 2.03(b), except that each Interest Period which commences on the last Business Day
of a calendar month (or any day for which there is no numerically corresponding day in the
appropriate subsequent calendar month) shall end on the last Business Day of the appropriate
subsequent calendar month.



Notwithstanding the foregoing: (i) if any Interest Period would otherwise commence before and end
after the Commitment Termination Date, such Interest Period shall not be available hereunder; (ii)
each Interest Period which would otherwise end on a day which is not a Business Day shall end on
the next succeeding Business Day (or, in the case of an Interest Period for any LIBO Rate Loans, if
such next succeeding Business Day falls in the next succeeding calendar month, on the next
preceding Business Day); and (iii) notwithstanding clause (i) above, no Interest Period for any
LIBO Rate Loans shall have a duration of less than one month and, if the Interest Period for any
such Loans would otherwise be a shorter period, such Loans shall not be available hereunder.




          “Issuing Bank” shall mean Bank of America, N.A., BNP Paribas and/or any other Lender
acceptable to the Administrative Agent and the Company that has agreed to issue Letters of Credit
hereunder, in its capacity as an issuer of Letters of Credit hereunder, and its successors in such
capacity as provided in Section 2.04(i). Each Issuing Bank may, in its discretion, arrange for one
or more Letters of Credit to be issued by its respective Affiliates, in which case the term
“Issuing Bank” shall include any such Affiliate with respect to Letters of Credit issued by such
Affiliate.




          “JPMCB” shall mean JPMorgan Chase Bank, N.A.




          “Jurisdiction” shall mean, with respect to any Borrower, the country or countries
(including any political subdivision or taxing authority thereof or therein) under whose laws such
Borrower is organized or where such Borrower is domiciled, resident or licensed or otherwise




Credit Agreement











 



- 11 -

qualified to do business or where any significant part of the Property of such Borrower is
located.




          “LC Disbursement” shall mean a payment made by an Issuing Bank pursuant to a Letter of
Credit.




          “LC Exposure” shall mean, at any time, the sum of (a) the aggregate undrawn amount of
all outstanding Letters of Credit            at such time plus (b) the aggregate amount of
all LC Disbursements that have not yet been reimbursed by or on behalf of the Company at such time.
The LC Exposure of any Lender at any time shall be its Applicable Percentage of the total LC
Exposure at such time.




          “Lender Affiliate” shall have the meaning assigned to that term in Section
2.03(h).




          “Letter of Credit” shall mean any standby letter of credit issued pursuant to
this Agreement.




          “LIBO Rate” shall mean, for any Interest Period for any LIBO Rate Loan, the rate for
deposits in the relevant Currency with a maturity comparable to such Interest Period commencing on
the first day of such Interest Period appearing on Page 3750 of the Telerate Service (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 for such Service, as
determined by the Administrative Agent, with written notice to the Company, from time to time for
purposes of providing quotations of interest rates applicable to such Currency deposits in the
London interbank market) at approximately 11:00 a.m., London time, on the Quotation Date for such
Currency; provided that the LIBO Rate for any LIBO Rate Loan denominated in Pounds Sterling
for any Interest Period shall be increased by any Mandatory Costs (but only to the extent
applicable to any Lender). In the event that such rate is not available for any reason, the LIBO
Rate shall mean, with respect to such LIBO Rate Loan for such Interest Period, the rate at which
deposits of $1,000,000 (or, in the case where a LIBO Rate Loan is a Currency other than Dollars,
the Foreign Currency Equivalent thereof) and for a maturity comparable to such Interest Period are
offered by the Reference Banks to leading banks in the London interbank market as of the 11:00
a.m., London time, on the Quotation Date for such Currency; provided that (i) if any
Reference Bank is not participating in any borrowing of LIBO Rate Loans, the LIBO Rate for such
Loans shall be determined by reference to the amount of the Loan which such Reference Bank would
have made had it been participating in such Loans, (ii) in determining the LIBO Rate with respect
to any Competitive LIBOR Loan, each Reference Bank shall be deemed to have made a Competitive LIBOR
Loan in an amount equal to $1,000,000, (iii) each Reference Bank agrees to use its best efforts to
furnish timely information to the Administrative Agent for purposes of determining the LIBO Rate
and (iv) if any Reference Bank does not furnish such timely information for determination of the
LIBO Rate, the Administrative Agent shall determine such interest rate on the basis of timely
information furnished by the remaining Reference Banks.




          “LIBO Rate Loans” shall mean Committed LIBOR Loans and Competitive LIBOR Loans.


Credit Agreement











 



- 12 -




          “LIBOR Auction” shall mean a solicitation of Competitive Bids setting forth Margins
based on the Adjusted LIBO Rate pursuant to Section 2.03.




          “Lien” shall mean, with respect to any asset, any mortgage, lien, pledge, charge,
security interest or encumbrance of any kind in respect of such asset. For the purposes of this
Agreement, the Company or any Subsidiary shall be deemed to own subject to a Lien any asset which
it has acquired or holds subject to the interest of a vendor or lessor under any conditional sale
agreement, capital lease or other title retention agreement relating to such asset.




          “Loans” shall mean Committed Loans and Competitive Loans.




          “Majority Lenders” shall mean, at any time, Lenders having Committed Credit Exposures
and unused Commitments representing at least 51% of the sum of the total Committed Credit Exposures
and unused Commitments at such time; provided that, for purposes of declaring the Loans to
be due and payable pursuant to Section 9, and for all purposes after the Loans become due and
payable pursuant to Section 9 or the Commitments expire or terminate, the outstanding Competitive
Loans of the Lenders shall be included in their respective Committed Credit Exposures in
determining the Majority Lenders.




          “Mandatory Cost” shall mean, with respect to any Lender, the cost, if any, imputed to
such Lender of compliance with the cash ratio and special deposit requirements of the Bank of
England and/or the banking supervision or other costs imposed by the Financial Services Authority
during the relevant period, as determined by the Bank of England and/or Financial Services
Authority during such relevant period.




          “Margin” shall have the meaning assigned to that term in Section 2.03(c)(ii)(C).




          “Material Adverse Effect” shall mean a material adverse effect on (i) the consolidated
financial condition, operations, business or prospects of the Company and its Subsidiaries (taken
as a whole), (ii) the ability of the Company or any Approved Designated Borrower that is a
Significant Subsidiary to perform its obligations under any of the Credit Documents to which it is
a party or (iii) the validity or enforceability of any of the Credit Documents.




          “Moody’s” shall mean Moody’s Investors Service, Inc. or any successor thereto.




          “Moody’s Rating” shall mean, as of any date, the rating most recently published by
Moody’s relating to the unsecured, long-term, senior debt securities of the Company.




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




          “Net Worth” shall mean, at any time, the consolidated stockholders’ equity of the
Company and its Subsidiaries determined on a consolidated basis without duplication in accordance
with GAAP.


Credit Agreement











 



- 13 -




          “Non-Strategic Property” shall mean (a) Property related to the Company’s Newell
Cookware Europe business and (b) Property acquired as part of the acquisition of a business that is
designated by resolution of the Board of Directors of the Company adopted no later than six months
after such acquisition as non-strategic Property.




          “Notes” shall mean the promissory notes provided for by Section 2.10(d).




          “Obligor” shall mean the Company, in its capacity as a Borrower hereunder and in its
capacity as a guarantor of Loans made to any other Borrower under Section 11, and each other
Borrower.




          “PBGC” shall mean the Pension Benefit Guaranty Corporation or any entity succeeding to
any or all its functions under ERISA.




          “Participating Member State” shall mean any member of the European Union that adopts
or has adopted the Euro as its lawful currency in accordance with the legislation of the European
Union relating to the European Monetary Union.




          “Permitted Securitization” shall mean any transaction or series of transactions that
may be entered into by the Company or any of its Subsidiaries pursuant to which the Company or such
Subsidiary, as the case may be, may sell, convey or otherwise transfer, or grant a security
interest in, any receivables (whether now existing or arising in the future) of the Company or any
of its Subsidiaries and any assets related thereto, including all collateral securing such
receivables, all contracts and all guarantees or other obligations in respect of such receivables
and the proceeds of such receivables; provided that (a) there shall be no recourse under
such securitization to the Company or any of its other Subsidiaries other than pursuant to Standard
Securitization Undertakings and (b) the Administrative Agent shall be reasonably satisfied that the
terms of such securitization are in compliance with the terms of this Agreement.




          “Person” shall mean an individual, a corporation, a company, a limited liability
company, a voluntary association, a partnership, a trust, an unincorporated organization or a
government or any agency, instrumentality or political subdivision thereof.




          “Plan” shall mean any employee pension benefit plan (other than a Multiemployer Plan)
which is or was established, sponsored, maintained or contributed to, by the Company or any ERISA
Affiliate and is or was subject to the provisions of Title IV of ERISA or Section 412 of the Code
or Section 302 of ERISA.




          “Post-Default Rate” shall mean, in respect of any principal of any Loan or any other
amount payable by any Borrower under this Agreement or any Note which is not paid when due (whether
at stated maturity, by acceleration or otherwise), a rate per annum during the period commencing on
the due date until such amount is paid in full equal to the sum of 2% plus the Base Rate as in
effect from time to time plus the Applicable Margin for Base Rate Loans (provided that, if
such amount in default is principal of a LIBO Rate Loan or a Set Rate Loan and the due date is a
day other than the last day of the Interest Period therefor, the “Post-Default Rate” for such
principal shall be, for the period commencing on the due date and ending on the


Credit Agreement











 



- 14 -

last day of the Interest Period therefor, 2% above the interest rate for such Loan as provided
in Section 3.02 and, thereafter, the rate provided for above in this definition).




          “Pounds Sterling” shall mean lawful money of England.




          “Prime Rate” shall mean the rate of interest publicly announced from time to time by
JPMCB as its prime rate in effect at the Principal Office.




          “Principal Office” shall mean the principal office of JPMCB, located on the date
hereof at 270 Park Avenue, New York, New York 10017.




          “Property” shall mean any right or interest in or to property of any kind whatsoever,
whether real, personal or mixed and whether tangible or intangible (including, without limitation,
shares of capital stock).




          “Quarterly Dates” shall mean the last Business Day of each March, June, September and
December, the first of which shall be the first such day after the Effective Date.




          “Quotation Date” shall mean, for any Interest Period, (a) for any Currency other than
Pounds Sterling, the date two Business Days prior to the commencement of such Interest Period and
(b) for Pounds Sterling, the first day of such Interest Period, provided that if market
practice differs in the relevant interbank market for any Currency, the “Quotation Date” for such
Currency shall be determined by the Administrative Agent in accordance with market practice in the
relevant interbank market (and if quotations would normally be given by leading banks in the
relevant interbank market on more than one day, the “Quotation Date” shall be the last of such
days).




          “Rating” shall mean the Moody’s Rating, the Standard & Poor’s Rating or the Fitch
Rating.




          “Rating Agency” shall mean Moody’s, Standard & Poor’s or Fitch.




          “Rating Group I” shall mean any two of the following: the Moody’s Rating is at or
above A2, the Standard & Poor’s Rating is at or above A or the Fitch Rating is at or above A;
“Rating Group II” shall mean (a) any two of the following: the Moody’s Rating is at or
above A3, the Standard & Poor’s Rating is at or above A- or the Fitch Rating is at or above A- and
(b) Rating Group I is not in effect; “Rating Group III” shall mean (a) any two of the
following: the Moody’s Rating is at or above Baa1, the Standard & Poor’s Rating is at or above BBB+
or the Fitch Rating is at or above BBB+ and (b) neither Rating Group I nor Rating Group II is in
effect; “Rating Group IV” shall mean (a) any two of the following: the Moody’s Rating is at
or above Baa2, the Standard & Poor’s Rating is at or above BBB or the Fitch Rating is at or above
BBB and (b) neither Rating Group I, Rating Group II nor Rating Group III is in effect; “Rating
Group V” shall mean (a) any two of the following: the Moody’s Rating is at or above Baa3, the
Standard & Poor’s Rating is at or above BBB- or the Fitch Rating is at or above BBB- and (b)
neither Rating Group I, Rating Group II, Rating Group III nor Rating Group IV is in effect;
“Rating Group VI” shall mean none of Rating Group I, Rating Group II, Rating Group III,
Rating Group IV and Rating Group V is in effect; provided that (i) if at any time the
Company has two or three


Credit Agreement











 



- 15 -

Ratings falling within two different Rating Groups that are one Rating Group apart, the
relevant Rating Group for purposes of determining the Applicable Facility Fee Rate, the Applicable
Margin and the Additional Margin shall be the Rating Group for the higher of the Moody’s Rating (if
any) or the Standard & Poor’s Rating (if any), (ii) if at any time the Company has two or three
Ratings falling within different Rating Groups that are two or more Rating Groups apart, the
relevant Rating Group for purposes of determining the Applicable Facility Fee Rate, the Applicable
Margin and the Additional Margin shall be the Rating Group that is one level above the Rating Group
for the lower (or the lowest, as the case may be) of such Ratings and (iii) for this purpose of
this proviso, Rating Group I is higher than Rating Group II, Rating Group II is higher than Rating
Group III, Rating Group III is higher than Rating Group IV, Rating Group IV is higher than Rating
Group V and Rating Group V is higher than Rating Group VI).




          “Reference Banks” shall mean JPMCB and Bank of America, N.A.




          “Register” shall have the meaning assigned to that term in Section 12.05.




          “Regulation D” shall mean Regulation D of the Board of Governors of the Federal
Reserve System (or any successor), as the same may be amended or supplemented from time to time.




          “Regulatory Change” shall mean, with respect to any Lender, any change after the date
hereof (or, in the case of any Competitive LIBOR Loan, the date of the Competitive Bid therefor),
in United States Federal, state or foreign law or regulations (including Regulation D) or the
adoption or making after such date of any interpretations, directives or requests applying to a
class of banks including such Lender of or under any United States Federal, state or foreign law or
regulations (whether or not having the force of law) by any court or governmental or monetary
authority charged with the interpretation or administration thereof.




          “Requirement of Law” shall mean, as to any Person, the Certificate of Incorporation
and By-Laws or other organizational or governing documents of such Person, and any law, treaty,
rule or regulation or determination of an arbitrator or a court or other Governmental Authority, in
each case applicable to or binding upon such Person or any of its property or to which such Person
or any of its property is subject.




          “Reserve Requirement” shall mean, for any Interest Period for any LIBO Rate Loan, the
effective maximum rate at which reserves (including any marginal, supplemental or emergency
reserves) are required to be maintained during such Interest Period under Regulation D by member
banks of the Federal Reserve System in New York City with deposits exceeding one billion Dollars
against “Eurocurrency liabilities” (as such term is used in Regulation D). Without limiting the
effect of the foregoing, the Reserve Requirement shall reflect any other reserves required to be
maintained by such member banks by reason of any Regulatory Change against (i) any category of
liabilities which includes deposits by reference to which the LIBO Rate is to be determined or (ii)
any category of extensions of credit or other assets which includes LIBO Rate Loans.




          “Set Rate Auction” shall mean a solicitation of Competitive Bids setting forth
Competitive Bid Rates pursuant to Section 2.03.


Credit Agreement











 



- 16 -




          “Set Rate Loans” shall mean Competitive Loans the interest rates on which are
determined on the basis of Competitive Bid Rates pursuant to a Set Rate Auction.




          “Significant Subsidiary” shall mean, at any time, any Subsidiary of the Company if the
revenues of such Subsidiary and its Subsidiaries for the four consecutive fiscal quarters of such
Subsidiary most recently ended (determined on a consolidated basis without duplication in
accordance with GAAP and whether or not such Person was a Subsidiary of the Company during all or
any part of the fiscal period of the Company referred to below) exceed an amount equal to 7-1/2% of
the revenues of the Company and its Subsidiaries for the four consecutive fiscal quarters of the
Company most recently ended (determined on a consolidated basis without duplication in accordance
with GAAP and including such Subsidiary and its Subsidiaries on a pro forma basis if such
Subsidiary was not a Subsidiary of the Company).




          “Standard & Poor’s” shall mean Standard & Poor’s Ratings Services, or any successor
thereto.




          “Standard and Poor’s Rating” shall mean, as of any date, the rating most recently
published by Standard & Poor’s relating to the unsecured, long-term, senior debt securities of the
Company.




          “Standard Securitization Undertakings” shall mean representations, warranties,
covenants and indemnities entered into by the Company or any Subsidiary that are reasonably
customary in the non-recourse securitization of receivables transactions.




          “Subsidiary” of any Person shall mean any corporation, partnership, limited liability
company or other entity of which at least a majority of the outstanding shares of stock or other
ownership interests having by the terms thereof ordinary voting power to elect a majority of the
board of directors or other persons performing similar functions of such corporation, partnership,
limited liability company or other entity (irrespective of whether or not at the time stock or
other ownership interests of any other class or classes of such corporation, partnership, limited
liability company or other entity shall have or might have voting power by reason of the happening
of any contingency) is at the time directly or indirectly owned or controlled by such Person and/or
one or more of the Subsidiaries of such Person. “Wholly-Owned Subsidiary” shall mean any
such corporation, partnership, limited liability company or other entity of which all such shares
or other ownership interests, other than directors’ qualifying shares or shares held by nominees to
satisfy any requirement as to minimum number of shareholders, are so owned or controlled.




          “Swap Agreement” shall mean any agreement with respect to any swap, forward, future or
derivative transaction or option or similar agreement involving, or settled by reference to, one or
more rates, currencies, commodities, equity or debt instruments or securities, or economic,
financial or pricing indices or measures of economic, financial or pricing risk or value or any
similar transaction or any combination of these transactions; provided that no phantom
stock or similar plan providing for payments only on account of services provided by current or
former directors, officers, employees or consultants of the Company or any of its Subsidiaries
shall be a “Swap Agreement”.



Credit Agreement















 








 - 17 -




          “TARGET Day” shall mean any day on which the Trans-European Automated Real-time Gross
Settlement Express Transfer payment system (or any successor settlement system as determined by the
Administrative Agent) is open for settlement of payments in Euros.




          “Taxes” shall have the meaning assigned to that term in Section 5.06(a).




          “Termination Letter” shall have the meaning assigned to that term in Section 2.05(a).




          “Total Capital” shall mean the sum of (i) Net Worth plus (ii) Total
Indebtedness.




          “Total Consolidated Assets” shall mean, as at any time, the total of all the assets
appearing on a consolidated balance sheet of the Company and its Subsidiaries determined in
accordance with generally accepted accounting principles applicable to the type of business in
which the Company and such Subsidiaries are engaged, and may be determined as of a date, selected
by the Company, not more than sixty days prior to the happening of the event for which such
determination is being made.




          “Total Indebtedness” shall mean, as at any time, the total Indebtedness of the Company
and its Subsidiaries determined on a consolidated basis without duplication.




          “Type” shall have the meaning assigned to that term in Section 1.03.




          “Wholly-Owned Subsidiary” shall have the meaning assigned to that term in the
definition of the term “Subsidiary”.




          1.02 Accounting Terms and Determinations.




          (a) All accounting terms used herein shall be interpreted, and, unless otherwise disclosed to
the Lenders in writing at the time of delivery thereof in the manner described in subsection (b)
below, all financial statements and certificates and reports as to financial matters required to be
delivered to the Lenders hereunder shall be prepared, in accordance with generally accepted
accounting principles applied on a basis consistent with those used in the preparation of the
latest financial statements furnished to the Lenders hereunder after the date hereof (or, until
such financial statements are furnished, consistent with those used in the preparation of the
financial statements referred to in Section 7.02(a)). All calculations made for the purposes of
determining compliance with the terms of Sections 8.07(a)(vi), 8.10 and 8.11 shall, except as
otherwise expressly provided herein, be made by application of generally accepted accounting
principles applied on a basis consistent with those used in the preparation of the annual or
quarterly financial statements furnished to the Lenders pursuant to Section 8.01 (or, until such
financial statements are furnished, consistent with those used in the preparation of the financial
statements referred to in Section 7.02(a)) unless (i) the Company shall have objected to
determining such compliance on such basis at the time of delivery of such financial statements or
(ii) the Majority Lenders shall so object in writing within 30 days after delivery of such
financial statements, in either of which events such calculations shall be made on a basis
consistent with those used in the preparation of the latest financial statements as to which such
objection shall




Credit Agreement










 



- 18 -



not have been made (which, if objection is made in respect of the first financial statements
delivered under Section 8.01, shall mean the financial statements referred to in Section 7.02(a)).




          (b) The Company shall deliver to the Lenders at the same time as the delivery of any annual
or quarterly financial statement under Section 8.01 (i) a description in reasonable detail of any
material variation between the application of accounting principles employed in the preparation of
such statement and the application of accounting principles employed in the preparation of the next
preceding annual or quarterly financial statements as to which no objection has been made in
accordance with the last sentence of subsection (a) above and (ii) reasonable estimates of the
difference between such statements arising as a consequence thereof.




          (c) To enable the ready and consistent determination of compliance with the covenants set
forth in Section 8, the Company shall not change the last day of its fiscal year from December 31,
or the last days of the first three fiscal quarters in each of its fiscal years from March 31, June
30 and September 30, respectively.




          1.03 Types of Loans.




          Loans hereunder are distinguished by “Type” and by “Currency”. The “Type” of a Loan refers to
whether such Loan is a Base Rate Loan, a Committed LIBOR Loan, a Competitive LIBOR Loan or a Set
Rate Loan, each of which constitutes a Type. Loans may be identified by both Type and Currency.




          1.04 Terms Generally.




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




          1.05. Currencies; Currency Equivalents; Provisions Relating to European Monetary
Union.




          (a) At any time, any reference in the definition of the term “Alternative Currency” or in any
other provision of this Agreement to the currency of any particular nation




Credit Agreement











 



- 19 -



means the lawful currency of such nation at such time whether or not the name of such currency
is the same as it was on the date hereof. For purposes of determining (i) whether the amount of
any borrowing of Loans, together with all other Loans then outstanding or to be borrowed at the
same time as such borrowing, would exceed the aggregate amount of the Commitments, (ii) the
aggregate unutilized amount of the Commitments and (iii) the aggregate outstanding principal amount
of the Loans, the outstanding principal amount of any Loan that is denominated in any Alternative
Currency shall be deemed to be the Dollar Equivalent of the principal amount of such Loan
determined as of the date of such borrowing or thereafter as of the date such Loan is Converted or
Continued.




          (b) Wherever in this Agreement in connection with any Loan an amount, such as a required
minimum or multiple amount, is expressed in Dollars, but such Loan is denominated in an Alternative
Currency, such amount shall be the relevant Foreign Currency Equivalent of such Dollar amount
(rounded to the nearest 1,000 units of such Alternative Currency), as determined by the
Administrative Agent.




          (c) Each obligation hereunder of any party hereto that is denominated in the currency of a
state that is not a Participating Member State on the date hereof shall, effective from the date on
which such state becomes a Participating Member State, be redenominated in Euro in accordance with
the legislation of the European Union applicable to the European Monetary Union; provided
that, if and to the extent that any such legislation provides that any such obligation of any such
party payable within such Participating Member State by crediting an account of the creditor can be
paid by the debtor either in Euros or such currency, such party shall be entitled to pay or repay
such amount either in Euros or in such currency. If the basis of accrual of interest or fees
expressed in this Agreement with respect to an Alternative Currency of any country that becomes a
Participating Member State after the date on which such currency becomes an Alternative Currency
shall be inconsistent with any convention or practice in the interbank market for the basis of
accrual of interest or fees in respect of the Euro, such convention or practice shall replace such
expressed basis effective as of and from the date on which such state becomes a Participating
Member State; provided that, with respect to any borrowing denominated in such currency
that is outstanding immediately prior to such date, such replacement shall take effect at the end
of the Interest Period therefor. Without prejudice to the respective liabilities of the Company to
the Lenders and the Lenders to the Company under or pursuant to this Agreement, each provision of
this Agreement shall be subject to such reasonable changes of construction as the Administrative
Agent may from time to time reasonably specify to be necessary or appropriate to reflect the
introduction or changeover to the Euro in any country that becomes a Participating Member State
after the date hereof.




          SECTION 2. COMMITMENTS.




          2.01 Committed Loans.




          Each Lender severally agrees, on the terms of this Agreement, to make loans to the Company and
any Approved Designated Borrower in Dollars during the period from and including the Effective Date
to and including the Commitment Termination Date in an aggregate principal amount at any one time
outstanding up to but not exceeding the amount of such




Credit Agreement










 



- 20 -



Lender’s Commitment as then in effect. Subject to the terms of this Agreement, during such
period the Company and the Approved Designated Borrowers may borrow, repay and reborrow the amount
of the Commitments by means of Base Rate Loans and Committed LIBOR Loans and may Convert Committed
Loans of one Type into Committed Loans of the other Type (as provided in Section 2.11(b)) or
Continue Committed LIBOR Loans (as provided in Section 2.11(b)); provided that the total
Committed Credit Exposures at any one time shall not exceed the total Commitments at such time; and
provided, further, that there may be no more than 30 different Interest Periods for
both Committed Loans and Competitive Loans outstanding at the same time (for which purpose Interest
Periods described in different lettered clauses of the definition of the term “Interest Period”
shall be deemed to be different Interest Periods even if they are coterminous).




          2.02 Borrowings of Committed Loans.




          The Company (on its own behalf and on behalf of any other Approved Designated Borrower) shall
give the Administrative Agent (which shall promptly notify the Lenders) notice of each borrowing
hereunder of Committed Loans, which notice shall be irrevocable and effective only upon receipt by
the Administrative Agent, shall specify with respect to the Committed Loans to be borrowed (i) the
aggregate amount to be borrowed, which shall be at least $5,000,000 (or an integral multiple of
$1,000,000 in excess thereof) in the case of Base Rate Loans (provided that a Base Rate
Loan may be in an aggregate amount that is equal to the entire unused balance of the total
Commitments or that is required to finance the reimbursement of an LC Disbursement as contemplated
by Section 2.04(e)) and $5,000,000 in the case of Committed LIBOR Loans (or in either case an
integral multiple of $1,000,000 in excess thereof), (ii) the Type and date (which shall be a
Business Day) and (iii) (in the case of Committed LIBOR Loans) the duration of the Interest Period
therefor, and each such notice shall be given not later than 11:00 a.m. New York time on the day
which is not less than the number of Business Days prior to the date of such borrowing specified
below opposite the Type of such Loans:




	 	 	 
	Type	 	Number of Business Days
	Base Rate Loans
	 	0
	Committed LIBOR Loans
	 	3





Not later than 2:00 p.m. New York time on the date specified for each borrowing of Committed Loans
hereunder, each Lender shall, subject to Section 4.01(a), make available the amount of the
Committed Loan or Loans to be made by it on such date to the Administrative Agent, at the
Administrative Agent’s Account for Dollars in immediately available funds, for account of the
relevant Borrower, provided that Base Rate Loans made to finance the reimbursement of an LC
Disbursement as provided in Section 2.04(e) shall be remitted by the Administrative Agent to the
relevant Issuing Bank. The amount so received by the Administrative Agent shall, subject to the
terms and conditions of this Agreement, promptly be made available to the relevant Borrower by
depositing the same, in immediately available funds, in an account of the relevant Borrower
designated by the Company.




Credit Agreement










 



- 21 -




          2.03 Competitive Loans.




          (a) In addition to borrowings of Committed Loans, the Company (on its own behalf and on
behalf of any other Borrower) may, as set forth in this Section 2.03, request the Lenders to make
offers to make Competitive Loans to such Borrower in Dollars or in any Alternative Currency. The
Lenders may, but shall have no obligation to, make such offers and such Borrower may, but shall
have no obligation to, accept any such offers in the manner set forth in this Section 2.03.
Competitive Loans may be Competitive LIBOR Loans or Set Rate Loans, provided that there may
be no more than 30 different Interest Periods for both Committed Loans and Competitive Loans
outstanding at the same time (for which purpose Interest Periods described in different lettered
clauses of the definition of the term “Interest Period” shall be deemed to be different Interest
Periods even if they are coterminous). Competitive Loans shall not constitute a utilization of the
Commitments.




          (b) When any Borrower wishes to request offers to make Competitive Loans, the Company (on its
own behalf and on behalf of any other Borrower) shall give the Administrative Agent (which shall
promptly notify the Lenders) notice in the form of Exhibit C hereto (a “Competitive Bid
Request”) so as to be received no later than 11:00 a.m. New York time on (x) the fifth Business
Day prior to the date of borrowing proposed therein in the case of a LIBOR Auction or (y) the
Business Day next preceding the date of borrowing proposed therein, in the case of a Set Rate
Auction, specifying:





(i) the name of the Borrower, the Currency of such borrowing and the proposed date of such
borrowing (a “Competitive Borrowing”), which shall be a Business Day;




(ii) the aggregate amount of such Competitive Borrowing, which shall be at least $5,000,000
or, in the case of Competitive Loans in an Alternative Currency, the Foreign Currency
Equivalent thereof, and in an integral multiple of $1,000,000 in excess thereof (or the
Foreign Currency Equivalent thereof, as applicable);




(iii) the duration of the Interest Period applicable thereto; and




(iv) whether the Competitive Bids requested are to set forth a Margin or a Competitive Bid
Rate.



          The Company (on its own behalf and on behalf of any other Borrower) may request offers to make
Competitive Loans for up to 15 different Interest Periods in a single Competitive Bid Request;
provided that the request for each separate Interest Period shall be deemed to be a
separate Competitive Bid Request for a separate Competitive Borrowing. Except as otherwise
provided in the preceding sentence, no Competitive Bid Request shall be given within five Business
Days of any other Competitive Bid Request.




          (c) (i) Any Lender may, by notice to the Administrative Agent in the form of Exhibit D
hereto (a “Competitive Bid”), submit an offer to make a Competitive Loan in response to any
Competitive Bid Request; provided that, if the request under Section 2.03(b) specified more
than one Interest Period, such Lender may make a single submission containing a separate offer for
each such Interest Period and each such separate offer shall be deemed to be a separate




Credit Agreement










 



- 22 -



Competitive Bid. Each Competitive Bid must be submitted to the Administrative Agent not later
than (x) 2:00 p.m. (or, in the case of Competitive Loans in an Alternative Currency, 11:00 a.m.)
New York time on the fourth Business Day prior to the proposed date of borrowing, in the case of a
LIBOR Auction or (y) 11:00 a.m. New York time on the proposed date of borrowing, in the case of a
Set Rate Auction; provided that any Competitive Bid submitted by JPMCB (or its Applicable
Lending Office) may be submitted, and may only be submitted, if JPMCB (or such Applicable Lending
Office) notifies the Company of the terms of the offer contained therein not later than (x) 1:00
p.m. (or, in the case of Competitive Loans in an Alternative Currency, 10:00 a.m.) New York time on
the fourth Business Day prior to the proposed date of borrowing, in the case of a LIBOR Auction or
(y) 10:45 a.m. New York time on the proposed date of borrowing, in the case of a Set Rate Auction.
Subject to Sections 5.03 and 9, any Competitive Bid so made shall be irrevocable except with the
written consent of the Administrative Agent given on the instructions of the Company.




          (ii) Each Competitive Bid shall specify:





     (A) the name of the Borrower, the Currency of such borrowing, the proposed
date of borrowing and the Interest Period therefor;




     (B) the principal amount of the Competitive Loan for which each such offer is
being made, which principal amount (x) may be greater than or less than the
Commitment of the quoting Lender, (y) must be at least $1,000,000 or, in the case of
a Competitive Loan in an Alternative Currency, the Foreign Currency Equivalent
thereof, and in an integral multiple of $1,000,000 (or the Foreign Currency
Equivalent thereof, as applicable), and (z) may not exceed the principal amount of
the Competitive Borrowing for which offers were requested;




     (C) in the case of a LIBOR Auction, the margin above or below the applicable
Adjusted LIBO Rate (the “Margin”) offered for each such Competitive Loan,
expressed as a percentage (rounded to the nearest 1/10,000th of 1%) to be added to
or subtracted from the applicable Adjusted LIBO Rate;




     (D) in the case of a Set Rate Auction, the rate of interest per annum (rounded
to the nearest 1/10,000th of 1%) (the “Competitive Bid Rate”) offered for
each such Competitive Loan; and




     (E) the identity of the quoting Lender.


No Competitive Bid shall contain qualifying, conditional or similar language or propose terms other
than or in addition to those set forth in the applicable Competitive Bid Request and, in
particular, no Competitive Bid may be conditioned upon acceptance by the Company of all (or some
specified minimum) of the principal amount of the Competitive Loan for which such Competitive Bid
is being made; provided that the submission of any Lender containing more than one
Competitive Bid may be conditioned on the Company not accepting offers contained in such submission
that would result in such Lender making Competitive Loans pursuant thereto in excess of a specified
aggregate amount (the “Competitive Loan Limit”).




Credit Agreement










 



- 23 -




          (d) The Administrative Agent shall (x) in the case of a Set Rate Auction, as promptly as
practicable after the Competitive Bid is submitted (but in any event not later than 11:15 a.m. New
York time) or (y) in the case of a LIBOR Auction, by 4:00 p.m. (or, in the case of Competitive
Loans in an Alternative Currency, noon) New York time on the day a Competitive Bid is submitted,
notify the Company (which will promptly notify the relevant Borrower if it is not the Company) of
the terms (i) of any Competitive Bid submitted by a Lender that is in accordance with Section
2.03(c) and (ii) of any Competitive Bid that amends, modifies or is otherwise inconsistent with a
previous Competitive Bid submitted by such Lender with respect to the same Competitive Bid Request.
Any such subsequent Competitive Bid shall be disregarded by the Administrative Agent unless such
subsequent Competitive Bid is submitted solely to correct a manifest error in such former
Competitive Bid. The Administrative Agent’s notice to the Company shall specify (A) the aggregate
principal amount of the Competitive Borrowing for which offers have been received and (B) the
respective principal amounts and Margins or Competitive Bid Rates, as the case may be, so offered
by each Lender (identifying the Lender that made each Competitive Bid).




          (e) Not later than (x) 11:00 a.m. New York time on the third Business Day (or, in the case of
Competitive Loans in an Alternative Currency, 2:00 p.m. New York time on the fourth Business Day)
prior to the proposed date of borrowing, in the case of a LIBOR Auction or (y) 12:00 p.m. noon New
York time on the proposed date of borrowing, in the case of a Set Rate Auction, the Company shall
notify the Administrative Agent of its or the relevant Borrower’s, if the Borrower is not the
Company, acceptance or nonacceptance of the offers so notified to the Company pursuant to Section
2.03(d) (which notice shall specify the aggregate principal amount of offers from each Lender for
each Interest Period that are accepted; and the failure of the Company to give such notice by such
time shall constitute non-acceptance) and the Administrative Agent shall promptly notify each
affected Lender of the acceptance or non-acceptance of its offers. The notice by the
Administrative Agent shall also specify the aggregate principal amount of offers for each Interest
Period that were accepted. The Company (on its own behalf and on behalf of any other Borrower)
may accept any Competitive Bid in whole or in part (provided that any Competitive Bid
accepted in part from any Lender shall be in an integral multiple of $1,000,000 or, in the case of
a Competitive Loan in an Alternative Currency, the Foreign Currency Equivalent thereof (rounded to
the nearest 1,000 units of such Alternative Currency)); provided that:





(i) the aggregate principal amount of each Competitive Borrowing may not exceed the
applicable amount set forth in the related Competitive Bid Request;




(ii) the aggregate principal amount of each Competitive Borrowing shall be at least
$5,000,000 or, in the case of a borrowing of Competitive Loans in an Alternative Currency,
the Foreign Currency Equivalent thereof, and in an integral multiple of $1,000,000 in excess
thereof (or the Foreign Currency Equivalent thereof, as applicable);




(iii) acceptance of offers may, subject to clause (v) below, only be made in ascending
order of Margins or Competitive Bid Rates, as the case may be; provided that the
Company need not accept on behalf of any Designated Borrower the offer of any Lender if
payment of the interest on the relevant Competitive Loan would subject such



Credit Agreement











 



- 24 -





Designated Borrower to the requirement of paying any additional amounts under Section
5.06(a) or if such interest payment would be subject to greater restrictions on
deductibility for income tax purposes than the restriction applicable to interest payments
made to other Lenders whose offers are accepted;




(iv) the Company (on its own behalf and on behalf of any other Borrower) may not accept any
offer where the Administrative Agent has advised the Company that such offer fails to comply
with Section 2.03(c)(ii) or otherwise fails to comply with the requirements of this
Agreement (including, without limitation, Section 2.03(a)); and




(v) the aggregate principal amount of each Competitive Borrowing from any Lender may not
exceed any applicable Competitive Loan Limit of such Lender.


If offers are made by two or more Lenders with the same Margins or Competitive Bid Rates, as the
case may be, for a greater aggregate principal amount than the amount in respect of which offers
are accepted for the related Interest Period, the principal amount of Competitive Loans in respect
of which such offers are accepted shall be allocated by the Company among such Lenders as nearly as
possible (in an integral multiple of $1,000,000 or, in the case of a borrowing of Competitive Loans
in an Alternative Currency, the Foreign Currency Equivalent thereof) in proportion to the aggregate
principal amount of such offers. Determinations by the Company of the amounts of Competitive Loans
shall be conclusive in the absence of manifest error.




          (f) Any Lender whose offer to make any Competitive Loan has been accepted in accordance with
the terms and conditions of this Section 2.03 shall, not later than 2:00 p.m. New York time (in the
case of Loans denominated in Dollars) or 11:00 a.m. local time in the location of the
Administrative Agent’s Account (in the case of Loans denominated in an Alternative Currency) on the
date specified for the making of such Loan, make the amount of such Loan available to the
Administrative Agent at the Administrative Agent’s Account for the Currency of such Loan in
immediately available funds. The amount so received by the Administrative Agent shall, subject to
the terms and conditions of this Agreement, promptly be made available to the relevant Borrower on
such date by depositing the same, in immediately available funds, in an account of the relevant
Borrower designated by the Company.




          (g) The amount of any Competitive Loan made by any Lender shall not constitute a utilization
of such Lender’s Commitment.




          (h) Subject to the terms and conditions of this Agreement, each Foreign Subsidiary that is a
Designated Borrower agrees that any Competitive Loan to be made hereunder by any Lender that has an
Affiliate (a “Lender Affiliate”) in such Designated Borrower’s Jurisdiction may be
satisfied by such Lender Affiliate at its sole discretion (such Loans are hereinafter referred to
as “Competitive Affiliate Loans”). The Company and each Designated Borrower hereby
acknowledge and agree that any Lender Affiliate that makes a Competitive Affiliate Loan shall have
made such Loan in reliance upon, and shall be entitled to the benefits of, this Agreement
(including, without limitation, Section 11) and shall be entitled to enforce rights hereunder in
respect of such Loan as fully as though it were a Lender party hereto.




Credit Agreement











 



- 25 -




     2.04. Letters of Credit.



          (a) General. Subject to the terms and conditions set forth herein, the Company may
request the issuance of Letters of Credit denominated in Dollars for its own account, in a form
reasonably acceptable to the Administrative Agent and each Issuing Bank, at any time and from time
to time during the period from and including the Effective Date to and including the Commitment
Termination Date. In the event of any inconsistency between the terms and conditions of this
Agreement and the terms and conditions of any form of letter of credit application or other
agreement submitted by the Company to, or entered into by the Company with, an Issuing Bank
relating to any Letter of Credit, the terms and conditions of this Agreement shall control.




          (b) Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions. To request
the issuance of a Letter of Credit (or the amendment, renewal or extension of an outstanding Letter
of Credit), the Company shall hand deliver or telecopy (or transmit by electronic communication, if
arrangements for doing so have been approved by the relevant Issuing Bank) to the relevant Issuing
Bank and the Administrative Agent (reasonably in advance of the requested date of issuance,
amendment, renewal or extension) a notice requesting the issuance of a Letter of Credit, or
identifying the Letter of Credit to be amended, renewed or extended, and specifying the date of
issuance, amendment, renewal or extension (which shall be a Business Day), the date on which such
Letter of Credit is to expire (which shall comply with paragraph (c) of this Section), the amount
of such Letter of Credit, the name and address of the beneficiary thereof and such other
information as shall be necessary to prepare, amend, renew or extend such Letter of Credit. If
requested by the relevant Issuing Bank, the Company also shall submit a letter of credit
application on such Issuing Bank‘s standard form in connection with any request for a
Letter of Credit. A Letter of Credit shall be issued, amended, renewed or extended only if (and
upon issuance, amendment, renewal or extension of each Letter of Credit the Company shall be deemed
to represent and warrant that), after giving effect to such issuance, amendment, renewal or
extension (i) the LC Exposure shall not exceed $100,000,000, (ii) the total Committed Credit
Exposures shall not exceed the total Commitments and (iii) if the Commitment Termination Date shall
have been extended pursuant to Section 2.12 with respect to some of but not all of the Lenders, the
portion of the LC Exposure attributable to Letters of Credit with expiry dates after any Existing
Commitment Termination Date (as defined in Section 2.12) will not exceed the portion of the total
Commitments represented by the Commitments of the Lenders (including the Additional Commitment
Lenders) with respect to which the Commitment Termination Date shall have been extended beyond such
Existing Commitment Termination Date.




          (c) Expiration Date. Each Letter of Credit shall expire at or prior to the close of
business on the earlier of (i) the date one year after the date of the issuance of such Letter of
Credit (or, in the case of any renewal or extension thereof, one year after such renewal or
extension) and (ii) the date that is five Business Days prior to the Commitment Termination Date;
provided that any Letter of Credit may provide for the automatic renewal thereof for
additional one-year periods so long as such automatic renewal does not extend the expiration
thereof beyond the date described in clause (ii); and provided, further that no
Letter of Credit may expire after the date that is five Business Days prior to an Existing
Commitment




Credit Agreement











 



- 26 -



Termination Date in respect of any non-extending Lenders under Section 2.12 if, after giving
effect to such Letter of Credit, the total Commitments of the extending Lenders (and any Additional
Commitment Lenders) under Section 2.12 for the period following such Existing Commitment
Termination Date would be less than the LC Exposure following such Existing Commitment Termination
Date.




          (d) Participations. By the issuance of a Letter of Credit (or an amendment to a
Letter of Credit increasing the amount thereof) and without any further action on the part of the
relevant Issuing Bank or the Lenders, such Issuing Bank hereby grants to each Lender, and each
Lender hereby acquires from such Issuing Bank, a participation in such Letter of Credit equal to
such Lender‘s Applicable Percentage of the aggregate amount available to be drawn under
such Letter of Credit. In consideration and in furtherance of the foregoing, each Lender hereby
absolutely and unconditionally agrees to pay to the Administrative Agent, for the account of such
Issuing Bank, such Lender‘s Applicable Percentage of each LC Disbursement made by such
Issuing Bank and not reimbursed by the Company on the date due as provided in paragraph (e) of this
Section, or of any reimbursement payment required to be refunded to the Company for any reason.
Each Lender acknowledges and agrees that its obligation to acquire participations pursuant to this
paragraph in respect of Letters of Credit is absolute and unconditional and shall not be affected
by any circumstance whatsoever, including any amendment, renewal or extension of any Letter of
Credit or the occurrence and continuance of a Default or reduction or termination of the
Commitments, and that each such payment shall be made without any offset, abatement, withholding or
reduction whatsoever.




          (e) Reimbursement. If an Issuing Bank shall make any LC Disbursement in respect of a
Letter of Credit, the Company shall reimburse such LC Disbursement by paying to the Administrative
Agent an amount equal to such LC Disbursement not later than 12:00 noon, New York City time, on the
date that such LC Disbursement is made, if the Company shall have received notice of such LC
Disbursement prior to 10:00 a.m., New York City time, on such date, or, if such notice has not been
received by the Company prior to such time on such date, then not later than 12:00 noon, New York
City time, on (i) the Business Day that the Company receives such notice, if such notice is
received prior to 10:00 a.m., New York City time, on the day of receipt, or (ii) the Business Day
immediately following the day that the Company receives such notice, if such notice is not received
prior to such time on the day of receipt; provided that the Company may, subject to the
conditions to borrowing set forth herein, request in accordance with Section 2.02 that such payment
be financed with a Base Rate Loan in an equivalent amount and, to the extent so financed, the
Company‘s obligation to make such payment shall be discharged and replaced by the resulting
Base Rate Loan. If the Company fails to make such payment when due, the Administrative Agent shall
notify each Lender of the applicable LC Disbursement, the payment then due from the Company in
respect thereof and such Lender‘s Applicable Percentage thereof. Promptly following
receipt of such notice, each Lender shall pay to the Administrative Agent its Applicable Percentage
of the payment then due from the Company, in the same manner as provided in Section 2.02 with
respect to Committed Loans made by such Lender (and Section 4.04 shall apply, mutatis
mutandis, to the payment obligations of the Lenders), and the Administrative Agent shall
promptly pay to the relevant Issuing Bank the amounts so received by it from the Lenders. Promptly
following receipt by the Administrative Agent of any payment from the Company pursuant to this
paragraph, the




Credit Agreement











 



- 27 -



Administrative Agent shall distribute such payment to the relevant Issuing Bank or, to the
extent that Lenders have made payments pursuant to this paragraph to reimburse such Issuing Bank,
then to such Lenders and such Issuing Bank as their interests may appear. Any payment made by a
Lender pursuant to this paragraph to reimburse the relevant Issuing Bank for any LC Disbursement
(other than the funding of Base Rate Loans as contemplated above) shall not constitute a Loan and
shall not relieve the Company of its obligation to reimburse such LC Disbursement.




          (f) Obligations Absolute. The Company‘s obligation to reimburse LC
Disbursements as provided in paragraph (e) of this Section shall be absolute, unconditional and
irrevocable, and shall be performed strictly in accordance with the terms of this Agreement under
any and all circumstances whatsoever and irrespective of (i) any lack of validity or enforceability
of any Letter of Credit or this Agreement, or any term or provision therein, (ii) any draft or
other document presented under a Letter of Credit proving to be forged, fraudulent or invalid in
any respect or any statement therein being untrue or inaccurate in any respect, (iii) payment by
the relevant Issuing Bank under a Letter of Credit against presentation of a draft or other
document that does not comply with the terms of such Letter of Credit, or (iv) any other event or
circumstance whatsoever, whether or not similar to any of the foregoing, that might, but for the
provisions of this Section, constitute a legal or equitable discharge of, or provide a right of
setoff against, the Company’s obligations hereunder. Neither the Administrative Agent, the Lenders
nor the Issuing Banks shall have any liability or responsibility by reason of or in connection with
the issuance or transfer of any Letter of Credit or any payment or failure to make any payment
thereunder (irrespective of any of the circumstances referred to in the preceding sentence), or any
error, omission, interruption, loss or delay in transmission or delivery of any draft, notice or
other communication under or relating to any Letter of Credit (including any document required to
make a drawing thereunder), any error in interpretation of technical terms or any consequence
arising from causes beyond the control of the Issuing Banks; provided that the foregoing
shall not be construed to excuse the Issuing Banks from liability to the Company to the extent of
any direct damages (as opposed to consequential damages, claims in respect of which are hereby
waived by the Company to the extent permitted by applicable law) suffered by the Company that are
caused by the relevant Issuing Bank‘s failure to exercise care when determining whether
drafts and other documents presented under a Letter of Credit comply with the terms thereof. The
parties hereto expressly agree that, in the absence of gross negligence or willful misconduct on
the part of the relevant Issuing Bank (as finally determined by a court of competent jurisdiction),
such Issuing Bank shall be deemed to have exercised care in each such determination. In
furtherance of the foregoing and without limiting the generality thereof, the parties agree that,
with respect to documents presented which appear on their face to be in substantial compliance with
the terms of a Letter of Credit, each Issuing Bank may, in its sole discretion, either accept and
make payment upon such documents without responsibility for further investigation, regardless of
any notice or information to the contrary, or refuse to accept and make payment upon such documents
if such documents are not in strict compliance with the terms of such Letter of Credit.




          (g) Disbursement Procedures. Each Issuing Bank shall, promptly following its receipt
thereof, examine all documents purporting to represent a demand for payment under a Letter of
Credit. Such Issuing Bank shall promptly notify the Administrative Agent and the




Credit Agreement










 



- 28 -



Company by telephone (confirmed by telecopy) of such demand for payment and whether such
Issuing Bank has made or will make an LC Disbursement thereunder; provided that any failure
to give or delay in giving such notice shall not relieve the Company of its obligation to reimburse
such Issuing Bank and the Lenders with respect to any such LC Disbursement.




          (h) Interim Interest. If an Issuing Bank shall make any LC Disbursement, then, unless
the Company shall reimburse such LC Disbursement in full on the date such LC Disbursement is made,
the unpaid amount thereof shall bear interest, for each day from and including the date such LC
Disbursement is made to but excluding the date that the Company reimburses such LC Disbursement, at
the rate per annum then applicable to Base Rate Loans; provided that, if the Company fails
to reimburse such LC Disbursement when due pursuant to paragraph (e) of this Section, then Section
3.02(a) (with respect to the Post-Default Rate) shall apply. Interest accrued pursuant to this
paragraph shall be for the account of the relevant Issuing Bank, except that interest accrued on
and after the date of payment by any Lender pursuant to paragraph (e) of this Section to reimburse
such Issuing Bank shall be for the account of such Lender to the extent of such payment.




          (i) Replacement of an Issuing Bank. Each Issuing Bank may be replaced at any time by
written agreement among the Company, the Administrative Agent, the replaced Issuing Bank and the
successor Issuing Bank. The Administrative Agent shall notify the Lenders of any such replacement
of an Issuing Bank. At the time any such replacement shall become effective, the Company shall pay
all unpaid fees accrued for the account of the replaced Issuing Bank pursuant to Section 4.04.
From and after the effective date of any such replacement, (i) the successor Issuing Bank shall
have all the rights and obligations of such Issuing Bank under this Agreement with respect to
Letters of Credit to be issued thereafter and (ii) references herein to the term “Issuing Bank”
shall be deemed to refer to such successor or to any previous Issuing Bank, or to such successor
and all previous Issuing Banks, as the context shall require. After the replacement of an Issuing
Bank hereunder, the replaced Issuing Bank shall remain a party hereto and shall continue to have
all the rights and obligations of an Issuing Bank under this Agreement with respect to Letters of
Credit issued by it prior to such replacement, but shall not be required to issue additional
Letters of Credit.




          (j) Cash Collateralization. If any Event of Default shall occur and be continuing, on
the Business Day that the Company receives notice from the Administrative Agent or the Majority
Lenders (or, if the maturity of the Loans has been accelerated, Lenders with LC Exposure
representing greater than 50% of the total LC Exposure) demanding the deposit of cash collateral
pursuant to this paragraph, the Company shall deposit in an account with the Administrative Agent,
in the name of the Administrative Agent and for the benefit of the Lenders, an amount in cash equal
to the LC Exposure as of such date plus any accrued and unpaid interest thereon;
provided that the obligation to deposit such cash collateral shall become effective
immediately, and such deposit shall become immediately due and payable, without demand or other
notice of any kind, upon the occurrence of any Event of Default with respect to the Company
described in clause (g) or (h) of Section 9. Such deposit shall be held by the Administrative
Agent as collateral for the payment and performance of the obligations of the Company under this
Agreement. The Administrative Agent shall have exclusive dominion and control, including the
exclusive right of withdrawal, over such account. Other than any interest




Credit Agreement










 



- 29 -



earned on the investment of such deposits, which investments shall be made at the option and
sole discretion of the Administrative Agent and at the Company’s risk and expense, such
deposits shall not bear interest. Interest or profits, if any, on such investments shall
accumulate in such account. Moneys in such account shall be applied by the Administrative Agent to
reimburse the relevant Issuing Bank for LC Disbursements for which it has not been reimbursed and,
to the extent not so applied, shall be held for the satisfaction of the reimbursement obligations
of the Company for the LC Exposure at such time or, if the maturity of the Loans has been
accelerated (but subject to the consent of Lenders with LC Exposure representing greater than 50%
of the total LC Exposure), be applied to satisfy other obligations of the Company under this
Agreement. If the Company is required to provide an amount of cash collateral hereunder as a
result of the occurrence of an Event of Default, such amount (to the extent not applied as
aforesaid) shall be returned to the Company within three Business Days after all Events of Default
have been cured or waived.




     2.05 Borrowings by Designated Borrowers.



          (a) The Company may, at any time or from time to time, designate one or more Wholly-Owned
Subsidiaries as Borrowers hereunder by furnishing to the Administrative Agent a letter (a
“Designation Letter”) in duplicate, substantially in the form of Exhibit E-1 hereto, duly
completed and executed by the Company and such Subsidiary. Any such designation of a Foreign
Subsidiary shall, and any such designation of a Domestic Subsidiary may, restrict such Wholly-Owned
Subsidiary to Competitive Loans, as set forth in the relevant Designation Letter. Upon any such
designation of a Subsidiary, such Subsidiary shall be a Borrower entitled to borrow Competitive
Loans only; and upon approval by all of the Lenders (which approval shall not be unreasonably
withheld) of any Domestic Subsidiary as an Approved Designated Borrower (which approval shall be
evidenced by the Administrative Agent signing and returning to the Company a copy of such
Designation Letter) such Domestic Subsidiary shall be an Approved Designated Borrower entitled to
borrow both Committed Loans and Competitive Loans. So long as all principal and interest on all
Loans of any Borrower (other than the Company) hereunder have been paid in full, the Company may
terminate the status of such Borrower as a Borrower hereunder by furnishing to the Administrative
Agent a letter (a “Termination Letter”), substantially in the form of Exhibit E-2 hereto,
duly completed and executed by the Company and such Borrower. Any Termination Letter furnished in
accordance with this Section 2.05 shall be effective upon receipt by the Administrative Agent
(which shall promptly notify the Lenders), whereupon the Lenders shall promptly deliver to the
Company (through the Administrative 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 any obligation of such Borrower theretofore incurred (including, without
limitation, obligations under Sections 5.01, 5.05 and 5.06) or the obligations of the Company under
Section 11 with respect thereto.




          (b) No Designation Letter with respect to an Approved Designated Borrower may be amended,
supplemented or otherwise modified without the approval of the Majority Lenders.




Credit Agreement










 



- 30 -




          2.06 Changes of Commitments.




          (a) Unless theretofore reduced to such amount pursuant to paragraphs (b) and (c) below, the
aggregate amount of the Commitments shall automatically be reduced to zero on the Commitment
Termination Date.




          (b) The Company shall have the right to terminate or reduce permanently the amount of the
Commitments at any time or from time to time upon not less than three Business Days’ prior notice
to the Administrative Agent (which shall promptly notify the Lenders) of each such termination or
reduction, which notice shall specify the effective date thereof and the amount of any such
reduction (which shall be in an integral multiple of $5,000,000) and shall be irrevocable and
effective only upon receipt by the Administrative Agent; provided that the Company may not
at any time (i) terminate the Commitments in whole if Committed Loans are then outstanding or (ii)
reduce the aggregate amount of the Commitments below the aggregate outstanding principal amount of
the Committed Loans.




          (c) The Commitments once terminated or reduced may not be
reinstated.




          (d) (i) Requests for Increase by Company. The Company may at any time (but in no
event more frequently that once during any three month period) propose that the aggregate amount of
the Commitments hereunder be increased (each such proposed increase being a “Commitment
Increase”), by notice to the Administrative Agent specifying the name of the Person or Persons
that will provide additional Commitments (which may be either an existing Lender (each an
“Increasing Lender”) and/or any Person not then a Lender (each an “Assuming
Lender”), in each case with the consent of Administrative Agent and each Issuing Bank (which
such consent shall not be unreasonably withheld)) and the date on which such increase is to be
effective (the “Commitment Increase Date”), which shall be a Business Day at least three
Business Days after delivery of such notice and prior to the Commitment Termination Date;
provided that:





     (A) immediately after giving effect to such Commitment Increase, the aggregate
amount of the Commitments hereunder shall not exceed the Commitments as of the
Effective Date plus $500,000,000;




     (B) each proposed Commitment Increase hereunder shall be in an aggregate
minimum amount of $50,000,000, provided that the minimum amount of the
Commitment of any Assuming Lender as part of such Commitment Increase shall be at
least $25,000,000;




     (C) no Default shall have occurred and be continuing on such Commitment
Increase Date or shall result from the proposed Commitment Increase;




     (D) the representations and warranties contained in Section 7 shall be correct
on and as of the Commitment Increase Date as if made on and as of such date (or, if
any such representation or warranty is expressly stated to have been made as of a
specific date, as of such specific date); and



Credit Agreement










 



- 31 -





     (E) immediately after giving effect to such Commitment Increase, no Lender
shall hold more than 20% of the aggregate amount of the Commitments.




     (ii) Effectiveness of Commitment Increase by Company. The Assuming Lender, if
any, shall become a Lender hereunder as of such Commitment Increase Date and the Commitment
of such Assuming Lender and/or the increase in the Commitment of any Increasing Lender shall
become effective as of such Commitment Increase Date; provided that:




     (A) the Administrative Agent shall have received on or prior to 9:00
a.m., New York City time, on such Commitment Increase Date a certificate of
a duly authorized officer of the Company stating that each of the applicable
conditions to such Commitment Increase set forth in this Section 2.06(d) has
been satisfied;




     (B) with respect to each Assuming Lender, the Administrative Agent
shall have received, on or prior to 9:00 a.m., New York City time, on such
Commitment Increase Date, an appropriate Assumption Agreement in
substantially the form of Exhibit G, duly executed by such Assuming Lender
and the Company and acknowledged by the Administrative Agent; and




     (C) each Increasing Lender shall have delivered to the Administrative
Agent, on or prior to 9:00 a.m., New York City time, on such Commitment
Increase Date, confirmation in writing satisfactory to the Administrative
Agent as to its increased Commitment, with a copy of such confirmation to
the Company.




     (iii) Recordation into Register. Upon its receipt of confirmation from a
Lender that it is increasing its Commitment hereunder, together with the certificate
referred to in clause (ii)(A) above, the Administrative Agent shall (A) record the
information contained therein in the Register and (B) give prompt notice thereof to the
Company. Upon its receipt of an Assumption Agreement executed by an Assuming Lender,
together with the certificate referred to in clause (ii)(A) above, the Administrative Agent
shall, if such Assumption Agreement has been completed and is in substantially the form of
Exhibit G, (c) accept such Assumption Agreement, (y) record the information contained
therein in the Register and (z) give prompt notice thereof to the Company.




     (iv) Adjustments of Borrowings upon Effectiveness of Increase. In the event
that the Administrative Agent shall have received notice from the Company as to any
agreement with respect to a Commitment Increase on or prior to the Commitment Increase Date
and the actions provided for in clause (ii) above shall have occurred by 9:00 a.m., New York
City time, on such Commitment Increase Date, the Administrative Agent shall notify the
Lenders (including any Assuming Lenders) of the occurrence of such Commitment Increase Date
promptly on such date by facsimile transmission or electronic messaging system. On the date
of such Commitment Increase, the Borrowers



Credit Agreement










 



- 32 -





shall (A) prepay the outstanding Committed Loans (if any) in full, (B) if so required
in accordance with the terms hereof, simultaneously borrow new Committed Loans hereunder in
an amount equal to such prepayment, so that, after giving effect thereto, the Committed
Loans are held ratably by the Lenders in accordance with their respective Commitments of
such Lenders (after giving effect to such Commitment Increase) and (C) pay to the Lenders
the amounts, if any, payable under Section 5.05.



          2.07 Fees.




          (a) Facility Fee. The Company agrees to pay to the Administrative Agent for account
of each Lender a facility fee on the amount of such Lender’s Commitment (whether or not utilized)
for the period from and including the date hereof to but not including the earlier of the date such
Commitment is terminated and the Commitment Termination Date, at a rate per annum equal to the
Applicable Facility Fee Rate; provided that, if such Lender continues to have any Committed
Credit Exposure after the termination of its Commitment, then such facility fee shall continue to
accrue on the aggregate daily amount of such Lender’s Committed Credit Exposure from and including
the date its Commitment terminates to but excluding the date such Lender ceased to have any
Committed Credit Exposure. Accrued facility fees shall be payable on each Quarterly Date in
arrears and on the earlier of the date the Commitments are terminated and the Commitment
Termination Date.




          (b) Letter of Credit Fees. The Company agrees to pay (i) to the Administrative Agent
for the account of each Lender a participation fee with respect to its participations in Letters of
Credit, which shall accrue at the same Applicable Margin and Additional Margin (if any) used to
determine the interest rate applicable to LIBOR Committed Loans on the average daily amount of such
Lender‘s LC Exposure (excluding any portion thereof attributable to unreimbursed LC
Disbursements) during the period from and including the Effective Date to but excluding the later
of the date on which such Lender‘s Commitment terminates and the date on which such Lender
ceases to have any LC Exposure, and (ii) to each Issuing Bank a fronting fee, which shall accrue at
the rate or rates per annum separately agreed upon between the Company and each Issuing Bank on the
average daily amount of the LC Exposure (excluding any portion thereof attributable to unreimbursed
LC Disbursements) during the period from and including the Effective Date to but excluding the
later of the date of termination of the Commitments and the date on which there ceases to be any LC
Exposure, as well as each Issuing Bank‘s standard fees with respect to the issuance,
amendment, renewal or extension of any Letter of Credit or processing of drawings thereunder.
Participation fees and fronting fees accrued through and including the last day of March, June,
September and December of each year shall be payable on the third Business Day following such last
day, commencing on the first such date to occur after the Effective Date; provided that all
such fees shall be payable on the date on which the Commitments terminate and any such fees
accruing after the date on which the Commitments terminate shall be payable on demand. Any other
fees payable to an Issuing Bank pursuant to this paragraph shall be payable within 10 days after
demand. All participation fees and fronting fees shall be computed on the basis of a year of 360
days and shall be payable for the actual number of days elapsed (including the first day but
excluding the last day).




Credit Agreement










 



- 33 -




          2.08 Lending Offices. The Loans of each Type and Currency made by each Lender shall be
made and maintained at such Lender’s Applicable Lending Office for Loans of such Type and Currency.




          2.09 Several Obligations; Remedies Independent. The failure of any Lender to make any
Loan to be made by it on the date specified therefor shall not relieve any other Lender of its
obligation to make its Loan on such date, and no Lender shall be responsible for the failure of any
other Lender to make a Loan to be made by such other Lender. The amounts payable by any Borrower
at any time hereunder and under its Notes to each Lender shall be a separate and independent debt
and each Lender shall be entitled to protect and enforce its rights arising out of this Agreement
and the Notes, and it shall not be necessary for any other Lender or the Administrative Agent to
consent to, or be joined as an additional party in, any proceedings for such purposes.




          2.10 Evidence of Debt.




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




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




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




          (d) Any Lender may request that Loans made by it to any Borrower be evidenced by a promissory
note of the appropriate Borrower. In such event, the appropriate Borrower shall prepare, execute
and deliver to such Lender one or more promissory notes payable to the order of such Lender and in
a form approved by the Administrative Agent.




          2.11 Prepayments; Conversions and Continuations.




          (a) Loans may be prepaid without premium or penalty upon not less than (a) (in the case of
Base Rate Loans) one Business Day’s, and (b) (in the case of LIBOR Loans) three Business Days’,
prior notice to the Administrative Agent (which shall promptly notify the Lenders), which notice
shall specify the prepayment date (which shall be a Business Day) and the amount of the prepayment (which, in the case of partial prepayments, shall be in an
integral multiple of $1,000,000) and shall be irrevocable and effective only upon receipt by the





Credit Agreement










 



- 34 -


Administrative Agent not later than 11:00 a.m. New York time on the number of Business Days
specified above prior to the relevant date of prepayment, provided that interest on the
principal of any Loans prepaid, accrued to the prepayment date, shall be paid on the prepayment
date.




          If at any time the total Committed Credit Exposures shall exceed the total Commitments, the
Borrowers shall forthwith prepay the Loans in an aggregate amount equal to any such excess.




          (b) The Company (on its own behalf and on behalf of any other Approved Designated Borrower)
shall have the right to Convert Committed Loans of one Type into Committed Loans of another Type or
Continue Committed LIBOR Loans as such at any time or from time to time, upon not less than (i) (in
the case of any Conversion into Base Rate Loans) one Business Day’s, and (b) (in the case of any
Conversion into, or Continuation as, LIBO Rate Loans), three Business Days’, prior notice to the
Administrative Agent (which shall promptly notify the Lenders), which notice shall specify the
amount (which shall be in an integral multiple of $1,000,000) and Type of each Committed Loan to be
Converted or Continued (and, in the case of a Conversion, the Type of Loan to result from such
Conversion), the duration of the Interest Period for any LIBO Rate Loans to be Continued or to
result from such Conversion, and the date of Conversion or Continuation (which shall be a Business
Day) and shall be irrevocable and effective only upon receipt by the Administrative Agent not later
than 11:00 a.m. New York time on the number of Business Days specified above prior to the relevant
date of Conversion or Continuation. In the event that the Company fails to select the Type of Loan
or the duration of any Interest Period for any LIBO Rate Loan, within the time period specified
above, such Loan (if outstanding as a LIBO Rate Loan) will be automatically Converted into a Base
Rate Loan on the last day of the then current Interest Period for such Loan or (if outstanding as a
Base Rate Loan) will remain as, or (if not then outstanding) will be made as, a Base Rate Loan.




          2.12. Extension of Commitment Termination Date.




          (a) Request for Extension. The Company may, by notice to the Administrative Agent
(which shall promptly notify the Lenders) not more than 60 days and not less than 30 days prior to
each anniversary of the Effective Date (such anniversary date, the “Extension Date”),
request (each, an “Extension Request”) that the Lenders extend the Commitment Termination
Date then in effect (the “Existing Commitment Termination Date”) for an additional one
year. Each Lender, acting in its sole discretion, shall, by notice to the Company and the
Administrative Agent given not later than the 20th day (or such later day as shall be
acceptable by the Company) following the date of the Company‘s notice, advise the Company
and the Administrative Agent whether or not such Lender agrees to such extension; provided
that any Lender that does not so advise the Company shall be deemed to have denied such Extension
Request. The election of any Lender to agree to such extension shall not obligate any other Lender
to so agree.




          (b) Replacement of Non-extending Lenders. The Company shall have the right at any
time on or prior to the relevant Extension Date to replace any non-extending Lender with, and
otherwise add to this Agreement, one or more other lenders (which may include any Lender)
(each an “Additional Commitment Lender”) in each case with the consent of the
Administrative Agent and each Issuing Bank (such consent in each case not to be unreasonably
withheld). Each




Credit Agreement











 



- 35 -



Additional Commitment Lender which has been so approved shall enter into an
agreement in form and substance satisfactory to the Company and the Administrative Agent pursuant
to which such Additional Commitment Lender shall, effective as of the Extension Date, undertake a
Commitment and (if not already a Lender under this Agreement) become a Lender hereunder (and, if
such Additional Commitment Lender is already a Lender, agree to increase its Commitment hereunder)
in the agreed amount as long as each non-extending Lender being replaced is paid in full.




          (c) Effectiveness of Extension. If (and only if) the total of the Commitments of the
Lenders that have agreed in connection with any Extension Request to extend the Existing Commitment
Termination Date and the additional Commitments of the Additional Commitment Lenders shall be at
least 50% of the total Commitments in effect immediately prior to the Extension Date, then,
effective as of the Extension Date, the Commitment Termination Date, with respect to the Commitment
of each Lender that has agreed to so extend its Commitment and of each Additional Commitment Lender
shall be extended to the date falling one year after the Existing Commitment Termination Date (or,
if such date is not a Business Day, such Commitment Termination Date as so extended shall be the
next preceding Business Day) and each Additional Commitment Lender shall thereupon become a
“Lender” for all purposes of this Agreement.




          Notwithstanding the foregoing, the extension of the Existing Commitment Termination Date shall
not be effective with respect to any Lender unless as of the relevant Extension Date (i) no Default
shall have occurred and be continuing and (ii) the representations and warranties of the Borrowers
set forth in Section 7 and in the other Credit Documents shall be true and complete on and as of
such date with the same force and effect as if made on and as of such date (or, if any such
representation or warranty is expressly stated to have been made as of a specific date, as of such
specific date) (and the Administrative Agent shall have received a certification to such effect
from a financial officer of the Company, together with such evidence and other related documents as
the Administrative Agent may reasonably request with respect to the Obligors‘ authorization
of the extension and their respective obligation’s hereunder).




          Notwithstanding anything herein to the contrary, with respect to the Commitment of any Lender
that has not approved any Extension Request, the Commitment Termination Date shall remain
unchanged.




          SECTION 3. PAYMENTS OF PRINCIPAL AND INTEREST.




          3.01 Repayment of Loans.




          (a) Each Borrower hereby promises to pay to the Administrative Agent for account of each
Lender the principal amount of each Committed Loan made by such Lender to such Borrower in the
Currency of such Committed Loan, and each Committed Loan shall mature, on the Commitment
Termination Date.




          (b) Each Borrower hereby promises to pay to the Administrative Agent for account of each
Lender the principal amount of each Competitive Loan made by such Lender to




Credit Agreement










 



- 36 -



such Borrower in the
Currency of such Competitive Loan, and each Competitive Loan shall mature, on the last day of the
Interest Period therefor.




          (c) The Company hereby promises to pay to each Issuing Bank the amounts as expressly provided
in Section 2.04.




          3.02 Interest.




          (a) Each Borrower hereby promises to pay to the Administrative Agent for account of each
Lender interest on the unpaid principal amount of each Loan made by such Lender to such Borrower,
in the Currency of such Loan, for the period commencing on the date of such Loan to but excluding
the date such Loan shall be paid in full, at the following rates per annum:





(i) during such period as such Loan is a Base Rate Loan, the Base Rate (as in effect from
time to time) plus, for each Commitment Utilization Day, the Additional Margin;




(ii) during such period as such Loan is a Committed LIBOR Loan, for each Interest Period
relating thereto, the Adjusted LIBO Rate for such Loan for such Interest Period plus the
Applicable Margin plus, for each Commitment Utilization Day, the Additional Margin;




(iii) if such Loan is a Competitive LIBOR Loan, the Adjusted LIBO Rate for such Loan for
the Interest Period therefor plus (or minus) the Margin quoted by the Lender making such
Loan in accordance with Section 2.03; and




(iv) if such Loan is a Set Rate Loan, the Competitive Bid Rate for such Loan for the
Interest Period therefor quoted by the Lender making such Loan in accordance with Section
2.03.


Notwithstanding the foregoing, each Borrower hereby promises to pay to the Administrative Agent for
account of each Lender interest at the applicable Post-Default Rate on any principal of any Loan
made by such Lender to such Borrower, and (to the fullest extent permitted by law) on any other
amount payable by such Borrower hereunder or under the Note of such Borrower held by such Lender to
or for account of such Lender, which shall not be paid in full when due (whether at stated
maturity, by acceleration or otherwise), for the period commencing on the due date thereof until
the same is paid in full.




          (b) Accrued interest on each Loan shall be payable (i) (in the case of a Base Rate Loan)
quarterly on the Quarterly Dates, (ii) in the case of a LIBOR Rate Loan, on the last day of each
Interest Period therefor and, if such Interest Period is longer than three months, at three-month
intervals following the first day of such Interest Period and (iii) (in the case of any Committed
LIBOR Loan Converted into a Base Rate Loan pursuant to Section 2.11(b)) on the date of Conversion
(but only on the principal amount so Converted), except that interest payable at the Post-Default
Rate shall be payable from time to time on demand.




Credit Agreement










 



- 37 -




          (c) Promptly after the determination of any Adjusted LIBO Rate provided for herein, the
Administrative Agent shall (i) notify the Lenders to which interest at such Adjusted LIBO Rate is
payable and the Company thereof and (ii) at the request of the Company, furnish to the Company a
copy of Page 3750 of the Telerate Service (or such 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 for such Service) on the basis of which the relevant LIBO Rate was
determined. At any time that the Administrative Agent determines the Adjusted LIBO Rate on a basis
other than using Page 3750 of the Telerate Service, the Administrative Agent shall promptly notify
the Company.




          3.03 Redenomination. Anything in Section 3.01 or 3.02 to the contrary notwithstanding, if
any Borrower shall fail to pay any principal or interest denominated in any Alternative Currency on
the original due date therefor (without giving effect to any acceleration under Section 9), the
amount so in default shall automatically be redenominated in Dollars on such original due date
therefor in an amount equal to the Dollar Equivalent therefor.




          SECTION 4. PAYMENTS; PRO RATA TREATMENT; COMPUTATIONS; ETC.




          4.01 Payments.




          (a) Except to the extent otherwise provided herein, all payments of principal of and interest
on Loans made in Dollars and all reimbursement obligations in respect of Letters of Credit, and
other amounts (other than the principal of and interest on Loans made in an Alternative Currency)
payable by any Obligor under this Agreement and the Notes, shall be made in Dollars, and all
payments of principal of and interest on Loans made in an Alternative Currency shall (except as
otherwise provided in Section 3.03) be made in such Alternative Currency, in immediately available
funds, without deduction, set-off or counterclaim, to the Administrative Agent’s Account for such
Currency, for account of the Lenders, not later than 2:00 p.m. New York time (in the case of Loans
denominated in Dollars) or 11:00 a.m. local time in the location of the Administrative Agent’s
Account (in the case of Loans denominated in an Alternative Currency), on the date on which such
payment shall become due (each such payment made after such time on such due date to be deemed to
have been made on the next succeeding Business Day).




          (b) If any Borrower shall default in the payment when due of any principal, interest or other
amounts to be made by such Borrower under this Agreement or the Notes, any Lender for whose account
any such payment is to be made may (but shall not be obligated to) debit the amount of any such
payment due such Lender which is not made by such time to any ordinary deposit account of such
Borrower with such Lender (with notice to the Company and the Administrative Agent).




          (c) The Company on its behalf and on behalf of any other Borrower shall, at the time of
making each payment under this Agreement or any Note for account of any Lender,
specify to the Administrative Agent the Loans or other amounts payable by such Borrower
hereunder to which such payment is to be applied (and in the event that the payor fails to so




Credit Agreement










 



- 38 -



specify, or if an Event of Default has occurred and is continuing, such Lender may apply such
payment received by it from the Administrative Agent to such amounts then due and owing to such
Lender as such Lender may determine).




          (d) Each payment received by the Administrative Agent under this Agreement or any Note for
account of any Lender shall be paid promptly to such Lender, in immediately available funds.




          (e) If the due date of any payment under this Agreement or any Note would otherwise fall on a
day which is not a Business Day such date shall be extended to the next succeeding Business Day and
interest shall be payable for any principal so extended for the period of such extension.




          4.02 Pro Rata Treatment. Except to the extent otherwise provided herein: (a) each
borrowing from the Lenders of Committed Loans under Section 2.01 shall be made from the Lenders,
each payment of fees under Section 2.07 shall be made for account of the Lenders, and each
reduction of the amount or termination of the Commitments under Section 2.06 shall be applied to
the Commitments of the Lenders, pro rata according to the amounts of their respective Commitments,
and the Conversion or Continuation of Committed Loans of a particular Type (other than Conversions
provided for by Section 5.04) shall be made pro rata among the relevant Lenders according to their
respective Commitments; (b) each payment of principal of Committed Loans by any Borrower shall be
made for account of the Lenders pro rata in accordance with the respective unpaid principal amounts
of the Committed Loans held by the Lenders; and (c) each payment of interest on Committed Loans by
any Borrower shall be made for account of the Lenders pro rata in accordance with the amounts of
interest due and payable to the respective Lenders; provided that, if an Event of Default
shall have occurred and be continuing, each payment of principal of and interest on the Loans and
other amounts owing hereunder by any Borrower shall be made for account of the Lenders pro rata in
accordance with the aggregate amounts of all principal of and interest on the Loans and all other
amounts owing hereunder by such Borrower then due and payable to the respective Lenders.




          4.03 Computations. Interest on Loans and the fees payable pursuant to Section 2.07
shall be computed on the basis of a year of 360 days and actual days elapsed (including the first
day but excluding the last day) occurring in the period for which payable; provided that
interest on Base Rate Loans and Loans in Pounds Sterling shall be computed on the basis of a year
of 365 or 366 days, as the case may be, and actual days elapsed (including the first day but
excluding the last day) occurring in the period for which payable.




          4.04 Non-Receipt of Funds by the Administrative Agent.




          Unless the Administrative Agent shall have been notified by a Lender, an Issuing Bank or the
Company on behalf of any Borrower (each, a “Payor”) prior to the time by, and on the date
on, which such Payor is scheduled to make payment to the Administrative Agent of (in the case of a
Lender or Issuing Bank) a payment to be made by it hereunder or (in the case of any Borrower) a
payment to the Administrative Agent for account of one or more of the Lenders or Issuing Banks
hereunder (such payment being herein called the “Required Payment”), which notice shall be




Credit Agreement











 



- 39 -



effective upon receipt, that it does not intend to make the Required Payment to the Administrative
Agent, the Administrative Agent may assume that the Required Payment has been made and may, in
reliance upon such assumption (but shall not be required to), make the amount thereof available to
the intended recipient(s) on such date; and, if the Payor has not in fact made the Required Payment
to the Administrative Agent, the recipient(s) of such payment shall, on demand, repay to the
Administrative Agent the amount so made available together with interest thereon in respect of each
day during the period commencing on the date such amount was so made available by the
Administrative Agent to but not including the date the Administrative Agent recovers such amount
(the “Advance Period”) at a rate per annum equal to (a) if the recipient is a Borrower, the
Base Rate in effect on such day and (b) if the recipient is a Lender or Issuing Bank, the Federal
Funds Rate in effect on such day; and, if such recipient(s) shall fail promptly to make such
payment, the Administrative Agent shall be entitled to recover such amount, on demand, from the
Payor, together with interest thereon for each day during the Advance Period at a rate per annum
equal to (i) if the Payor is a Borrower, the rate of interest payable on the Required Payment as
provided in the second sentence of Section 3.02(a) and (ii) if the Payor is a Lender or Issuing
Bank, during the period commencing on the date such amount was so made available to but excluding
the date three Business Days following such date, the Federal Funds Rate in effect on such day and,
thereafter, the Base Rate in effect on such day.




     4.05 Set-off; Sharing of Payments.



     (a) Each Obligor agrees that, in addition to (and without limitation of) any right of
set-off, bankers’ lien or counterclaim a Lender may otherwise have, each Lender and each of its
Affiliates shall be entitled, at its option, to offset balances held by it for account of such
Obligor at any of its offices, in Dollars or in any other Currency, against any principal of or
interest on any of such Lender’s Loans or participations in LC Disbursements which is not paid when
due (regardless of whether such balances are then due to such Obligor) in which case it shall
promptly notify such Obligor (through notice to the Company) and the Administrative Agent thereof,
provided that such Lender’s failure to give such notice shall not affect the validity
thereof.



     (b) If any Lender shall obtain payment of any principal of or interest on any Committed Loan
or participations in LC Disbursements made by it under this Agreement through the exercise of any
right of set-off, bankers’ lien or counterclaim or similar right or otherwise, and, as a result of
such payment, such Lender shall have received a greater percentage of the amounts then due
hereunder to such Lender in respect of Committed Loans or participations in LC Disbursements than
the percentage received by any other Lenders, it shall promptly purchase from such other Lenders
participations in (or, if and to the extent specified by such Lender, direct interests in) the
Committed Loans or participations in LC Disbursements made by such other Lenders (or in the
interest thereon, as the case may be) in such amounts, and make such other adjustments from time to
time as shall be equitable, to the end that all the Lenders shall share the benefit of such excess
payment (net of any expenses which may be incurred by such Lender in obtaining or preserving such
excess payment) pro rata in accordance with the unpaid principal and interest on the Committed
Loans or participations in LC
Disbursements held by each of the Lenders. To such end all the Lenders shall make appropriate
adjustments among themselves (by the resale of participations sold or otherwise) if such payment



Credit Agreement










 



- 40 -



is rescinded or must otherwise be restored. Each Obligor agrees that any Lender so purchasing a
participation (or direct interest) in the Committed Loans or participations in LC Disbursements
made by other Lenders (or in the interest thereon, as the case may be) may exercise all rights of
set-off, bankers’ lien, counterclaim or similar rights with respect to such participation as fully
as if such Lender were a direct holder of Loans or participations in LC Disbursements (or in the
interest thereon, as the case may be) in the amount of such participation. Nothing contained
herein shall require any Lender to exercise any such right or shall affect the right of any Lender
to exercise, and retain the benefits of exercising, any such right with respect to any other
indebtedness or obligation of any Obligor. If under any applicable bankruptcy, insolvency or other
similar law, any Lender receives a secured claim in lieu of a set-off to which this Section 4.05
applies, such Lender shall, to the extent practicable, exercise its rights in respect of such
secured claim in a manner consistent with the rights of the Lenders entitled under this Section
4.05 to share in the benefits of any recovery on such secured claim.




          SECTION 5. YIELD PROTECTION AND ILLEGALITY.




          5.01 Additional Costs.




          (a) Each Borrower shall pay directly to each Lender or Issuing Bank from time to time such
amounts as such Lender or Issuing Bank may determine to be necessary to compensate such Lender or
Issuing Bank for any costs that such Lender or Issuing Bank determines are attributable to its
making or maintaining of any LIBO Rate Loans or Set Rate Loans or its obligation to make any LIBO
Rate Loans hereunder or to participate in, issue or maintain any Letter of Credit, or any reduction
in any amount receivable by such Lender hereunder in respect of any of such Loans, such Letters of
Credit or such obligation (such increases in costs and reductions in amounts receivable being
herein called “Additional Costs”), resulting from any Regulatory Change that:





(i) changes the basis of taxation of any amounts payable to such Lender or Issuing Bank
under this Agreement or its Notes in respect of any of such Loans or Letters of Credit
(other than taxes imposed on or measured by the overall net income of such Lender or such
Issuing Bank or of its Applicable Lending Office for any of such Loans or Letters of Credit
by the jurisdiction in which such Lender or Issuing Bank has its principal office or such
Applicable Lending Office); or




(ii) imposes or modifies any reserve, special deposit or similar requirements (other than
the Reserve Requirement utilized in the determination of the Adjusted LIBO Rate for such
Loan and Mandatory Costs utilized in the determination of the LIBO Rate for such Loan)
relating to any extensions of credit or other assets of, or any deposits with or other
liabilities of, such Lender (including, without limitation, any of such Loans or any
deposits referred to in the definition of “LIBO Rate” in Section 1.01), or any commitment of
such Lender (including, without limitation, the Commitment of such Lender hereunder); or




(iii) imposes any other condition affecting this Agreement or its Notes (or any of such
extensions of credit or liabilities) or its Commitment.



Credit Agreement










 



- 41 -



If any Lender requests compensation from any Borrower under this Section 5.01(a), the Company may,
by notice to such Lender (with a copy to the Administrative Agent), suspend the obligation of such
Lender thereafter to make or Continue LIBO Rate Loans or to Convert Base Rate Loans into LIBO Rate
Loans, until the Regulatory Change giving rise to such request ceases to be in effect (in which
case the provisions of Section 5.04 shall be applicable), provided that such suspension
shall not affect the right of such Lender to receive the compensation so requested.




          (b) Without limiting the effect of the foregoing provisions of this Section 5.01 (but without
duplication), if any Lender or Issuing Bank determines that any Regulatory Change regarding capital
requirements has or would have the effect of reducing the rate of return on such Lender’s or
Issuing Bank’s capital or on the capital of such Lender’s or Issuing Bank’s holding company, if
any, as a consequence of this Agreement or the Loans made by such Lender or the Letters of Credit
issued by such Issuing Bank to a level below that which such Lender or Issuing Bank or such
Lender’s or Issuing Bank’s holding company could have achieved but for such Regulatory Change
(taking into consideration such Lender’s or Issuing Bank’s policies and the policies of such
Lender’s or Issuing Bank’s holding company with respect to capital adequacy), then from time to
time the Company will pay to such Lender or Issuing Bank such additional amount or amounts as will
compensate such Lender or Issuing Bank or such Lender’s or Issuing Bank’s holding company for any
such reduction suffered.




          (c) Each Lender or Issuing Bank shall notify the Company of any event occurring after the
date hereof entitling such Lender or Issuing Bank to compensation under paragraph (a) or (b) of
this Section 5.01 as promptly as practicable, but in any event within 45 days, after such Lender or
Issuing Bank obtains actual knowledge thereof. If any Lender or Issuing Bank fails to give such
notice within 45 days after it obtains actual knowledge of such an event, such Lender or Issuing
Bank shall, with respect to compensation payable pursuant to this Section 5.01 in respect of any
costs resulting from such event, only be entitled to payment under this Section 5.01 for costs
incurred from and after the date 45 days prior to the date that such Lender or Issuing Bank does
give such notice. Each Lender or Issuing Bank will furnish to the Company a certificate setting
forth the basis and amount of each request by such Lender or Issuing Bank for compensation under
paragraph (a) or (b) of this Section 5.01. Determinations and allocations by any Lender or Issuing
Bank for purposes of this Section 5.01 of the effect of any Regulatory Change pursuant to paragraph
(a) of this Section 5.01, or of the effect of capital maintained pursuant to paragraph (b) of this
Section 5.01, on its costs or rate of return of maintaining Loans or Letters of Credit or its
obligation to make Loans or issue Letters of Credit, or on amounts receivable by it in respect of
Loans or Letters of Credit, and of the amounts required to compensate such Lender or Issuing Bank
under this Section 5.01, shall be conclusive absent manifest error, provided that such
determinations and allocations are made on a reasonable basis.




          (d) Each Lender or Issuing Bank will designate a different Applicable Lending Office for the
Loans or Letters of Credit of such Lender or Issuing Bank, as the case may be,
affected by any event specified in paragraphs (a) or (b) of this Section 5.01 or in Section
5.03 if such designation will avoid the need for, or reduce the amount of, such compensation or




Credit Agreement










 



- 42 -



suspension, as the case may be, and will not, in the sole opinion of such Lender or Issuing Bank,
be disadvantageous to such Lender or Issuing Bank.




          5.02 Limitation on Types of Loans.




          Anything herein to the contrary notwithstanding:





(a) if the LIBO Rate for any Currency is to be determined under the second paragraph of the
definition of “LIBO Rate” and the Administrative Agent determines (which determination shall
be conclusive) that no quotation from any Reference Lender of interest rates for the
relevant deposits referred to in such paragraph is being provided in the relevant amounts or
for the relevant maturities for purposes of determining rates of interest for LIBO Rate
Loans as provided herein; or




(b) if the LIBO Rate for any Currency is being determined under the second paragraph of the
definition of “LIBO Rate” and the Majority Lenders determine (or any Lender that has
outstanding a Competitive Bid with respect to a Competitive LIBOR Loan, determines), which
determination shall be conclusive, and notify (or notifies, as the case may be) the
Administrative Agent that the relevant rates of interest referred to in the second paragraph
of the definition of “LIBO Rate” do not adequately cover the cost to such Lenders (or such
quoting Lender) of making or maintaining its LIBO Rate Loans in such Currency;


then the Administrative Agent shall give the Company and each Lender prompt notice thereof, and so
long as such condition remains in effect, the Lenders (or such quoting Lender) shall be under no
obligation to make additional LIBO Rate Loans in such Currency, to Continue LIBO Rate Loans in such
Currency or to Convert Loans of another Type or Currency into LIBO Rate Loans in such Currency.




          5.03 Illegality. Notwithstanding any other provision of this Agreement, in the event
that it becomes unlawful for any Lender or its Applicable Lending Office to honor its obligation to
make or maintain LIBO Rate Loans hereunder in any Currency, then such Lender shall promptly notify
the Company thereof (with a copy to the Administrative Agent) and such Lender’s obligation to make
or Continue, or Convert Base Rate Loans into, Committed LIBOR Loans in such Currency shall be
suspended until such time as such Lender may again make and maintain Committed LIBOR Loans in such
Currency (in which case the provisions of Section 5.04 shall be applicable), and such Lender shall
no longer be obligated to make any Competitive LIBOR Loan in such Currency that it has offered to
make.




          5.04 Base Rate Loans Pursuant to Sections 5.01 and 5.03. If the obligation of any
Lender to make, Continue, or to Convert Base Rate Loans into, any LIBO Rate Loans in Dollars shall
be suspended pursuant to Section 5.01 or 5.03 (Loans of such type being herein called “Affected
Loans” and such type being herein called the “Affected Type”), all Loans in Dollars
(other than Competitive Loans) which would otherwise be made by such Lender as Loans of the
Affected Type shall be made instead as Base Rate Loans (and, if an event referred
to in Section 5.03 has occurred and such Lender so requests by notice to the Company with a
copy to the Administrative Agent, all Affected Loans of such Lender then outstanding shall be




Credit Agreement










 



- 43 -



automatically Converted into Base Rate Loans on the date specified by such Lender in such notice)
and, to the extent that Affected Loans are so made as (or Converted into) Base Rate Loans, all
payments of principal which would otherwise be applied to such Lender’s Affected Loans shall be
applied instead to its Base Rate Loans. If such Lender gives notice to the Company with a copy to
the Administrative Agent that the circumstances specified in Section 5.01 or 5.03 that gave rise to
the Conversion of such Lender’s Affected Loans pursuant to this Section 5.04 no longer exist (which
such Lender agrees to do promptly upon such circumstances ceasing to exist) at a time when Loans of
the Affected Type made by other Lenders are outstanding, such Lender’s Base Loans shall be
automatically Converted, on the first day(s) of the next succeeding Interest Period(s) for such
outstanding loans of the Affected Type, to the extent necessary so that, after giving effect
thereto, all Committed Loans held by the Lenders holding Loans of the Affected Type and by such
Lender are held pro rata (as to principal amounts, Types and Interest Periods) in accordance with
their respective Commitments.




          5.05 Compensation. Each Borrower shall pay to the Administrative Agent for account of
each Lender, upon the request of such Lender through the Administrative Agent, such amount or
amounts as shall be sufficient (in the reasonable opinion of such Lender) to compensate it for any
loss, cost or expense which such Lender determines are attributable to:





(a) any payment, prepayment or Conversion of a LIBO Rate Loan or a Set Rate Loan made by
such Lender for any reason (including, without limitation, the acceleration of the Loans
pursuant to Section 9) on a date other than the last day of the Interest Period for such
Loan; or




(b) any failure by such Borrower for any reason (excluding only failure due solely to a
default by any Lender or the Administrative Agent in its obligation to provide funds to such
Borrower hereunder but including, without limitation, the failure of any of the conditions
precedent specified in Section 6 to be satisfied) to borrow a LIBO Rate Loan or a Set Rate
Loan from such Lender on the date for such borrowing specified in the relevant notice of
borrowing given pursuant to Section 2.02 or 2.03(b).


Without limiting the effect of the preceding sentence, such compensation shall include, in the case
of a Loan, an amount equal to the excess, if any, of (i) the amount of interest which otherwise
would have accrued on the principal amount so paid, prepaid or Converted or not borrowed for the
period from the date of such payment, prepayment, Conversion or failure to borrow to the last day
of the Interest Period for such Loan (or, in the case of a failure to borrow, the Interest Period
for such Loan which would have commenced on the date specified for such borrowing) at the
applicable rate of interest for such Loan provided for herein over (ii) the interest component of
the amount such Lender would have bid in the London interbank market for deposits in the applicable
Currency of leading banks (if such Loan is a LIBO Rate Loan) or in the United States certificate of
deposit market for issuance at face value of certificates of deposit for Dollar deposits (if such
Loan is a Set Rate Loan) in amounts comparable to such principal
amount and with maturities comparable to such period (as reasonably determined by such Lender).




Credit Agreement










 



- 44 -




          5.06 Taxes.




          (a) Each Approved Designated Borrower agrees to pay to each Lender and Issuing Bank such
additional amounts as are necessary in order that the net payment of any amount due to such Lender
or Issuing Bank hereunder after deduction for or withholding in respect of any Taxes imposed with
respect to such payment will not be less than the amount stated herein to be then due and payable,
provided that the foregoing obligation to pay such additional amounts shall not apply:





(i) to any payment to any Lender hereunder unless such Lender is, on the date such Borrower
became a Borrower hereunder (which, in the case of the Company, means the date hereof and,
in the case of any other Approved Designated Borrower, means the date of the Designation
Letter of such Approved Designated Borrower) or (if later) on the date such Lender becomes a
Lender hereunder as provided in Section 12.05(b) and on the date of any change in the
Applicable Lending Office of such Lender, entitled to a complete exemption from withholding
or deduction by such Approved Designated Borrower of Taxes on all interest to be received by
such Lender hereunder in respect of the Loans made by such Lender to such Approved
Designated Borrower, or




(ii) to any such Taxes required to be deducted or withheld solely by reason of the failure
of such Lender or Issuing Bank to comply with applicable certification, information,
documentation or other reporting requirements concerning the nationality, residence,
identity or connections with such Borrower’s Jurisdiction if such compliance is required by
treaty, statute or regulation as a precondition to relief or exemption from such Taxes.


For the purposes of this Section 5.06(a), the term “Taxes” shall mean with respect to any
Approved Designated Borrower all present and future income, stamp, registration and other taxes and
levies, imposts, deductions, charges, compulsory loans and withholdings whatsoever, and all
interest, penalties or similar amounts with respect thereto, now or hereafter imposed, assessed,
levied or collected by such Approved Designated Borrower’s Jurisdiction on or in respect of the
Credit Documents, the principal of and interest on the Loans and any other amounts payable under
any of the Credit Documents, the recording, registration, notarization or other formalization of
any thereof, the enforcement thereof or the introduction thereof in any judicial proceedings, or on
or in respect of any payments of principal, interest, premium, charges, fees or other amounts made
on, under or in respect of any thereof (excluding, however, income or franchise taxes imposed on or
measured by the overall net income or capital of a Lender (or its Applicable Lending Office) by
such Approved Designated Borrower’s Jurisdiction as a result of such Lender being organized under
the laws of or resident in such Approved Designated Borrower’s Jurisdiction or of its Applicable
Lending Office being located or carrying on business in such Approved Designated Borrower’s
Jurisdiction).




          (b) Within 30 days after paying any amount to the Administrative Agent or any Lender or
Issuing Bank from which it is required by law to make any deduction or withholding,
and within 30 days after it is required by law to remit such deduction or withholding to any
relevant taxing or other authority, the relevant Borrower shall deliver to the Administrative




Credit Agreement










 



- 45 -



Agent for delivery to such Lender or Issuing Bank evidence satisfactory to such Lender or Issuing Bank of
such deduction, withholding or payment (as the case may be).




          5.07 Replacement of Lenders. If any Lender requests compensation pursuant to Section 5.01
or 5.06, or any Lender’s obligation to make Loans of any Type or denominated in any Currency shall
be suspended pursuant to Section 5.01 (any such Lender requesting such compensation, or whose
obligations are so suspended, being herein called a “Requesting Lender”), the Company, upon
three Business Days’ notice to the Administrative Agent given when no Default shall have occurred
and be continuing, may require that such Requesting Lender transfer all of its right, title and
interest under this Agreement to any bank or other financial institution or entity identified by
the Company that is satisfactory to the Administrative Agent (a) if such bank or other financial
institution or entity (a “Proposed Lender”) agrees to assume all of the obligations of such
Requesting Lender hereunder, and to purchase all of such Requesting Lender’s Loans and
participations in LC Disbursements hereunder for consideration equal to the aggregate outstanding
principal amount of such Requesting Lender’s Loans and participations in LC Disbursements, together
with interest thereon to the date of such purchase, and satisfactory arrangements are made for
payment to such Requesting Lender of all other amounts payable hereunder to such Requesting Lender
on or prior to the date of such transfer (including any fees accrued hereunder and any amounts that
would be payable under Section 5.05 as if all of such Requesting Lender’s Loans and participations
in LC Disbursements were being prepaid in full on such date) and (b) if such Requesting Lender has
requested compensation pursuant to Section 5.01 or 5.06, such Proposed Lender’s aggregate requested
compensation, if any, pursuant to said Section 5.01 or 5.06 with respect to such Requesting
Lender’s Loans and participations in LC Disbursements is lower than that of the Requesting Lender.
Subject to the provisions of Section 12.05(b), such Proposed Lender shall be a “Lender” for all
purposes hereunder. Without prejudice to the survival of any other agreement of the Company
hereunder the agreements of the Company contained in Sections 5.01, 5.06 and 12.03 (without
duplication of any payments made to such Requesting Lender by the Company or the Proposed Lender)
shall survive for the benefit of such Requesting Lender under this Section 5.07 with respect to the
time prior to such replacement.




          SECTION 6. CONDITIONS PRECEDENT.




          6.01 Effective Date.




          The obligations of the Lenders to make Loans and of each Issuing Bank to issue Letters of
Credit hereunder shall not become effective until the date on which each of the following
conditions is satisfied (or waived pursuant to Section 12.04):




(a) The Administrative Agent shall have received each of the following documents (with
sufficient copies for each Lender), each of which shall be satisfactory to the
Administrative Agent (and to the extent specified below, to each Lender) in form and
substance:




Credit Agreement










 





- 46 -





     (i) A counterpart of this Agreement signed on behalf of each party hereto or
written evidence satisfactory to the Administrative Agent that such party has signed
a counterpart of this Agreement.




     (ii) Certified copies of the charter and by-laws of, and all corporate action
taken by, the Company approving this Agreement and the Notes (if any) to be made by
the Company, borrowings by the Company and the guarantee of the Company set forth in
Section 11 (including, without limitation, a certificate setting forth the
resolutions of the Board of Directors of the Company adopted in respect of the
transactions contemplated hereby).




     (iii) A certificate of the Company in respect of each of the officers (1) who
is authorized to sign this Agreement, the Notes, Competitive Bid Requests,
Designation Letters and Termination Letters, together with specimen signatures, and
(2) who will, until replaced by another officer or officers duly authorized for that
purpose, act as its representative for the purposes of signing documents and giving
notices and other communications in connection herewith and with the Notes and the
transactions contemplated hereby and thereby. The Administrative Agent and each
Lender may conclusively rely on such certificate until they receive notice in
writing from the Company to the contrary.




     (iv) An opinion dated the Effective Date of Schiff Hardin LLP, special
Illinois counsel to the Company, substantially in the form of Exhibit A-1 hereto
(and the Company hereby instructs such counsel to deliver such opinion to the
Lenders and the Administrative Agent); and an opinion dated the Effective Date of
Dale L. Matschullat, Vice-President — General Counsel to the Company, substantially
in the form of Exhibit A-2 hereto (and the Company hereby instructs such counsel to
deliver such opinion to the Lenders and the Administrative Agent).




     (v) An opinion dated the Effective Date of Milbank, Tweed, Hadley & McCloy
LLP, special New York counsel to the Administrative Agent, substantially in the form
of Exhibit B hereto.



(b) The Lenders and the Administrative Agent shall have received all fees and other amounts
as the Company shall have agreed to pay in connection herewith.




(c) The Administrative Agent shall have received evidence that (i) all commitments under
the Company’s Five-Year Credit Agreement dated as of June 14, 2002 (as amended) have
terminated and (ii) all principal, interest, fees and other amounts payable thereunder that
are accrued to the Effective Date and/or unpaid have been paid in full.




     The Administrative Agent shall notify the Company and the Lenders of the Effective Date, and such
notice shall be conclusive and binding. Notwithstanding the foregoing, the obligations of the
Lenders to make Loans and of each Issuing Bank to issue Letters of Credit hereunder shall
not become effective unless each of the foregoing conditions is satisfied (or waived pursuant to
Section 12.04) at or prior to 3:00 p.m., New York City time, on November 30, 2005 (and, in the



Credit Agreement










 



- 47 -



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




          6.02 Initial and Subsequent Credit Extensions.




          The obligation of any Lender to make any Credit Extension hereunder (including, without
limitation, the initial Credit Extension hereunder) is subject to the further conditions precedent
that, as of the date of such Credit Extension and after giving effect thereto and the intended use
thereof:





(a) no Default shall have occurred and be continuing; and




(b) the representations and warranties made by the Company (and, if such Credit Extension
involves any other Borrower, by such Borrower) in Section 7 (other than Sections 7.02(c) and
7.03, except if such Credit Extension is made on the Effective Date) shall be true on and as
of the date of such Credit Extension with the same force and effect as if made on and as of
such date (or, if any such representation or warranty is expressly stated to have been made
as of a specific date, as of such specific date).


Each notice of borrowing by the Company hereunder (whether on its own behalf or on behalf of any
other Borrower) and the issuance, amendment, renewal or extension of any Letter of Credit shall
constitute a certification by the Company to the effect set forth in the preceding sentence (both
as of the date of such notice and, unless the Company otherwise notifies the Administrative Agent
prior to the date of such Credit Extension, as of the date of such Credit Extension).




          SECTION 7. REPRESENTATIONS AND WARRANTIES. The Company and (with respect only to Sections
7.01, 7.04, 7.05, 7.06 and 7.16) each Designated Borrower represent and warrant to the Lenders
that:




          7.01 Corporate Existence.




          Each of the Company and its Significant Subsidiaries and each Designated Borrower: (a) is a
corporation duly organized and validly existing under the laws of the jurisdiction of its
incorporation; (b) has all requisite corporate power, and has all material governmental licenses,
authorizations, consents and approvals, necessary to own its assets and carry on its business as
now being or as proposed to be conducted; and (c) is qualified to do business in all jurisdictions
in which the nature of the business conducted by it makes such qualification necessary except where
failure so to qualify would not have a Material Adverse Effect.




          7.02 Financial Condition.




          (a) The consolidated balance sheets of the Company and its Subsidiaries as of December 31,
2003 and December 31, 2004 and the related consolidated statements of income,
cash flows and stockholders’ equity of the Company and its Subsidiaries for the fiscal years
ended on said dates, with the opinion thereon of Ernst & Young LLP, heretofore furnished to




Credit Agreement










 



- 48 -



each of
the Lenders, are complete and correct and fairly present the consolidated financial condition of
the Company and its Subsidiaries as at said dates and the consolidated results of their operations
for the fiscal year ended on said dates, all in accordance with generally accepted accounting
principles. Neither the Company nor any of its Subsidiaries had on said dates any material
contingent liabilities, material liabilities for taxes, material unusual forward or long-term
commitments or material unrealized or anticipated losses from any unfavorable commitments, except
as referred to or reflected or provided for in said balance sheet as at said dates.




          (b) The consolidated balance sheets of the Company and its Subsidiaries as of June 30, 2005
and the related consolidated statements of income, cash flows and stockholders’ equity of the
Company and its Subsidiaries for the six-month period ended on said date, heretofore furnished to
each of the Lenders, are complete and correct and fairly present the consolidated financial
condition of the Company and its Subsidiaries as at said date and the consolidated results of their
operations for the six-month period ended on said date, all in accordance with generally accepted
accounting principles. Neither the Company nor any of its Subsidiaries had on said date any
material contingent liabilities, material liabilities for taxes, material unusual forward or
long-term commitments or material unrealized or anticipated losses from any unfavorable
commitments, except as referred to or reflected or provided for in said balance sheet as at said
date.




          (c) Since December 31, 2004, there has been no material adverse change in the consolidated
financial condition, operations, business or prospects of the Company and its Subsidiaries (taken
as a whole).




          7.03 Litigation.




          There are no legal or arbitral proceedings or any proceedings or investigations by or before
any governmental or regulatory authority or agency, now pending or (to the knowledge of the
Company) threatened against the Company or any of its Subsidiaries which could reasonably be
expected to have a Material Adverse Effect.




          7.04 No Breach.




          The making or performance of this Agreement or the Notes, and the consummation of the
transactions herein contemplated, will not conflict with or result in a breach of, or require any
consent under, the charter or by-laws of the Company and each other Borrower or any applicable law
or regulation, or any order, writ, injunction or decree of any court or governmental authority or
agency, or any agreement or instrument to which the Company or any of its Subsidiaries is a party
or by which any of them is bound or to which any of them is subject, or constitute a default under
any such agreement or instrument, or constitute a tortious interference with any agreement, or
result in the creation or imposition of any Lien upon any of the revenues or assets of the Company
or any of its Subsidiaries pursuant to the terms of any such agreement or instrument.




Credit Agreement










 



- 49 -




          7.05 Corporate Action.




          Each Borrower has all necessary corporate power and authority to make and perform its
obligations under this Agreement and the Notes; the making and performance of this Agreement and
the Notes by each Borrower have been duly authorized by all necessary corporate action on the part
of such Borrower; and this Agreement has been duly and validly executed and delivered by the
Company and constitutes, and each of the Notes of any Borrower when executed and delivered by such
Borrower for value will constitute, the legal, valid and binding obligation of the respective
Borrower, enforceable in accordance with their respective terms, except to the extent that such
enforcement may be limited by applicable bankruptcy, insolvency or other similar laws affecting the
enforcement of creditors’ rights generally.




          7.06 Approvals.




          No authorizations, approvals or consents of, and no filings or registrations with, any
governmental or regulatory authority or agency are necessary for the execution, delivery or
performance by each Borrower of this Agreement or the Notes of such Borrower or for the validity or
enforceability of any thereof.




          7.07 Use of Credit.




          Neither the Company nor any of its Subsidiaries is engaged principally, or as one of its
important activities, in the business of extending credit for the purpose, whether immediate,
incidental or ultimate, of buying or carrying margin stock (within the meaning of Regulation U or X
of the Board of Governors of the Federal Reserve System), and no part of the proceeds of any Credit
Extension hereunder will be used in a manner that will cause any Borrower to violate said
Regulation X or any Lender to violate said Regulation U.




          7.08 ERISA.




          Each of the Company and each ERISA Affiliate has fulfilled its obligations under the minimum
funding standards of ERISA and the Code with respect to each of its Plans and is (and to the best
of its knowledge in the case of any Multiemployer Plan is) in compliance with the currently
applicable provisions of ERISA and the Code, and has not incurred any liability on account of the
termination of any of its Plans to the PBGC or any of its Plans and has not incurred any withdrawal
liability to any Multiemployer Plan, in each case except to the extent failure to do so would not
reasonably be expected to have a Material Adverse Effect.




          7.09 Investment Company Act; Public Utility Holding Company Act.




          Neither the Company nor any of its Subsidiaries is (a) an “investment company” as defined in,
or subject to regulation under, the Investment Company Act of 1940 or (b) a “holding company” as
defined in, or subject to regulation under, the Public Utility Holding Company Act of 1935.




Credit Agreement










 



- 50 -




          7.10 Credit Agreements.




          Schedule I hereto is a complete and correct list, as of the date hereof, of each credit
agreement, loan agreement, indenture, purchase agreement, Guarantee or other arrangement (other
than a letter of credit) providing for or otherwise relating to any extension of credit (or
commitment for any extension of credit) to, or Guarantee by, the Company or any of its Subsidiaries
the aggregate principal or face amount of which equals or exceeds (or may equal or exceed)
$5,000,000 and the aggregate principal or face amount outstanding or which may become outstanding
under each such arrangement is correctly described (as of September 30, 2005) in said Schedule I.




          7.11 Hazardous Materials.




          The Company and each of its Subsidiaries have obtained all permits, licenses and other
authorizations that are required under all Environmental Laws, except to the extent failure to have
any such permit, license or authorization would not have a Material Adverse Effect. The Company
and each of its Subsidiaries are in compliance with the terms and conditions of all such permits,
licenses and authorizations, and are also in compliance with all other limitations, restrictions,
conditions, standards, prohibitions, requirements, obligations, schedules and timetables contained
in any applicable Environmental Law or in any regulation, code, plan, order, decree, judgment,
injunction, notice or demand letter issued, entered, promulgated or approved thereunder, except to
the extent failure to comply would not have a Material Adverse Effect. Except as heretofore
disclosed to the Lenders, there have been no environmental investigations, studies, audits, tests,
reviews or other analyses conducted by or that are in the possession of the Company or any of its
Subsidiaries with respect to any property or facility now or previously owned or leased by the
Company or any of its Environmental Affiliates which reveal facts or circumstances that could
reasonably be expected to have a Material Adverse Effect.




          7.12 Taxes.




          The Company and its Subsidiaries are members of an affiliated group of corporations filing
consolidated returns for Federal income tax purposes, of which the Company is the “common parent”
(within the meaning of Section 1504 of the Code) of such group. The Company and its Subsidiaries
have filed all Federal income tax returns and all other material tax returns and information
statements that are required to be filed by them and have paid all taxes due pursuant to such
returns or pursuant to any assessment received by the Company or any of its Subsidiaries. The
charges, accruals and reserves on the books of the Company and its Subsidiaries in respect of taxes
and other governmental charges are, in the opinion of the Company, adequate. The United States
Federal income tax returns of the Company and its Subsidiaries have been examined and/or closed
through the fiscal years of the Company and its Subsidiaries ended on or before December 31, 2002.
The Company has not given or been requested to give a waiver of the statute of limitations relating
to the payment of Federal, state, local and foreign taxes or other impositions.




Credit Agreement











 



- 51 -




          7.13 True and Complete Disclosure.




          The information, reports, financial statements, exhibits and schedules furnished in writing by
or on behalf of the Company to the Lenders in connection with the negotiation, preparation or
delivery of this Agreement or included herein or delivered pursuant hereto, when taken as a whole
do not contain any untrue statement of material fact or omit to state any material fact necessary
to make the statements herein or therein, in light of the circumstances under which they are made,
not misleading. All written information furnished after the date hereof by the Company and its
Subsidiaries to the Lenders in connection with this Agreement and the transactions contemplated
hereby will be true, complete and accurate in every material respect, or (in the case of
projections) based on reasonable estimates, on the date as of which such information is stated or
certified. There is no fact known to the Company that could reasonably be expected to have a
Material Adverse Effect that has not been disclosed herein or in a report, financial statement,
exhibit, schedule, disclosure letter or other writing furnished to the Lenders for use in
connection with the transactions contemplated hereby.




          7.14 Subsidiaries.




          As of the date hereof, each of the Company and its Subsidiaries (as disclosed in the periodic
reports which the Company has filed with the Securities and Exchange Commission) owns, free and
clear of Liens, and has the unencumbered right to vote all of its outstanding ownership interests
in, each Subsidiary held by it and all of the issued and outstanding capital stock of each such
Person is validly issued, fully paid and nonassessable.




          7.15 Compliance with Law.




          As of the date hereof, the Company and its Subsidiaries are in compliance with all applicable
laws and regulations, except to the extent that failure to comply therewith would not have a
Material Adverse Effect.




          7.16 Designated Borrower Approvals.




          No authorizations, approvals or consents of, and no filings or registrations with, any
governmental or regulatory authority or agency that have not been obtained by the time any
Subsidiary of the Company becomes a Designated Borrower are necessary for the execution, delivery
or performance by such Designated Borrower of the Designation Letter of such Designated Borrower,
this Agreement or the Notes of such Designated Borrower or for the validity or enforceability of
any thereof or for the borrowing by such Designated Borrower hereunder.




          SECTION 8. COVENANTS OF THE COMPANY. The Company agrees that, so long as any of the
Commitments are in effect and until payment in full of all Loans hereunder, all interest thereon
and all other amounts payable by each Borrower hereunder and the termination or expiration of all
Letters of Credit hereunder and the reimbursement of all LC Disbursements:




Credit Agreement










 



- 52 -




          8.01 Financial Statements.




          The Company shall furnish to each of the Lenders:




(a) as soon as available and in any event within 60 days after the end of each of the
fiscal quarterly periods of each fiscal year of the Company, consolidated statements of
income, cash flows and stockholders’ equity of the Company and its Subsidiaries for such
period and for the period from the beginning of the respective fiscal year to the end of
such period, and the related consolidated balance sheet as at the end of such period,
setting forth in each case in comparative form the corresponding figures for the
corresponding period in the preceding fiscal year, and accompanied by a certificate of a
senior financial officer of the Company, which certificate shall state that said financial
statements fairly present the consolidated financial condition and results of operations of
the Company and its Subsidiaries, in accordance with generally accepted accounting
principles, as at the end of (and for) such period (subject to normal year-end audit
adjustments).




(b) as soon as available and in any event within 90 days after the end of each fiscal year
of the Company, consolidated statements of income, cash flows and stockholders’ equity of
the Company and its Subsidiaries for such year and the related consolidated balance sheet as
at the end of such year, setting forth in each case in comparative form the corresponding
figures for the preceding fiscal year, and accompanied by an opinion thereon of independent
certified public accountants of recognized national standing, which opinion shall state that
said financial statements fairly present the consolidated financial condition and results of
operations of the Company and its Subsidiaries, in accordance with generally accepted
accounting principles, as at the end of (and for) such fiscal year, and a certificate of
such accountants stating that, in making the examination necessary for their opinion, they
obtained no knowledge, except as specifically stated, of any Event of Default under Sections
8.10 and 8.11.




(c) promptly upon their becoming available, copies of all registration statements and
regular periodic reports, if any, which the Company shall have filed with the Securities and
Exchange Commission (or any governmental agency substituted therefor) or any national
securities exchange.




(d) promptly upon the mailing thereof to the shareholders of the Company generally, copies
of all financial statements, reports and proxy statements so mailed.




(e) as soon as possible, and in any event within 30 days after the Company knows or has
reason to know that any of the events or conditions specified below with respect to any Plan
or Multiemployer Plan of the Company have occurred or exist, a statement signed by a senior
financial officer of the Company setting forth details respecting such event or condition
and the action, if any, which the Company or any ERISA Affiliate proposes to take with
respect thereto (and a copy of any report or notice required to be filed with or given to
PBGC by the Company or such ERISA Affiliate with respect to such event or condition):




Credit Agreement











 



- 53 -





     (i) any reportable event, as defined in Section 4043(b) of ERISA and the
regulations issued thereunder, with respect to a Plan, as to which PBGC has not by
regulation waived the requirement of Section 4043(a) of ERISA that it be notified
within 30 days of the occurrence of such event (provided that a failure to
meet the minimum funding standard of Section 412 of the Code or Section 302 of ERISA
by more than $5,000,000 shall be a reportable event regardless of the issuance of
any waivers in accordance with Section 412(d) of the Code);




     (ii) the filing under Section 4041 of ERISA of a notice of intent to terminate
any Plan or the termination of any Plan if at the date of such filing or termination
the fair market value of the assets of such Plan, as determined by the Plan’s
independent actuaries, is exceeded by the present value as determined by such
actuaries as of such date, of benefit commitments under such Plan by more than
$5,000,000 (including any prior terminations subject to this provision);




     (iii) the institution by PBGC of proceedings under Section 4042 of ERISA for
the termination of, or the appointment of a trustee to administer, any Plan of the
Company, or the receipt by the Company or any ERISA Affiliate of a notice from a
Multiemployer Plan that such action has been taken by PBGC with respect to such
Multiemployer Plan and such action would reasonably be expected to result in
liability to the Company in excess of $5,000,000;




     (iv) the complete or partial withdrawal by the Company or any ERISA Affiliate
under Section 4201 or 4204 of ERISA from a Multiemployer Plan causing any withdrawal
liability in excess of $5,000,000 (including any prior withdrawals subject to this
provision), or the receipt by the Company or any ERISA Affiliate of notice from a
Multiemployer Plan that it is in reorganization or insolvency pursuant to Section
4241 or 4245 of ERISA or that it intends to terminate or has terminated under
Section 4041A of ERISA; and




     (v) the institution of a proceeding by a fiduciary of any Multiemployer Plan
against the Company or any ERISA Affiliate to enforce Section 515 of ERISA, which
proceeding is not dismissed within 30 days.




(f) promptly after the Company knows or has reason to know that any Default has occurred, a
notice of such Default, describing the same in reasonable detail.




(g) from time to time such other information regarding the business, affairs or financial
condition of the Company or any of its Subsidiaries (including, without limitation, any Plan
or Multiemployer Plan and any reports or other information required to be filed under ERISA)
as any Lender or the Administrative Agent may reasonably request.


The Company will furnish to each Lender, at the time it furnishes each set of financial statements
pursuant to paragraph (a) or (b) above, a certificate of a senior financial officer of the Company
(i) to the effect that no Default has occurred and is continuing (or, if any Default has occurred
and is continuing, describing the same in reasonable detail) and (ii) setting forth in reasonable
detail the computations necessary to determine whether the Company is in compliance with




Credit Agreement










 



- 54 -



Sections 8.06, 8.07(a)(vi), 8.08(xiii), 8.10 and 8.11 as of the end of the respective fiscal
quarter or fiscal year.



Notwithstanding the foregoing, the Company’s obligations to deliver documents or information
required under any of clauses (a), (b), (c) and (d) above shall be deemed to be satisfied upon (i)
the relevant documents or information being publicly available on the Company’s website or other
publicly available electronic medium (such as EDGAR) within the time period required by such clause
and thereafter being continuously so available and (ii) the delivery by the Company of notice to
the Administrative Agent and each of the Lenders (which notice may be given electronically (such as
e-mail)) within the time period required by such clause that such documents or information are so
available; provided that the Company shall deliver paper copies of any such documents or
information to any Lender upon request of such Lender through the Administrative Agent.




          8.02 Litigation. The Company shall promptly furnish to each Lender notice of all
legal or arbitral proceedings, and of all proceedings before any governmental or regulatory
authority or agency, instituted, or (to the knowledge of the Company) threatened, against the
Company or any of its Subsidiaries which could reasonably be expected to have a Material Adverse
Effect.




          8.03 Corporate Existence, Etc. The Company shall, and shall cause each of its
Significant Subsidiaries and each of the other Borrowers to: preserve and maintain its corporate
existence and all its material rights, privileges and franchises (except as otherwise expressly
permitted under Section 8.07); comply with all Requirements of Law except to the extent that
failure to comply therewith could not, in the aggregate, reasonably be expected to have a Material
Adverse Effect; pay and discharge all taxes, assessments and governmental charges or levies imposed
on it or on its income or profits or on any of its property prior to the date on which penalties
attach thereto, except for any such tax, assessment, charge or levy the payment of which is being
contested in good faith and by proper proceedings and against which adequate reserves are being
maintained; maintain all its properties used or useful in its business in good working order and
condition, ordinary wear and tear excepted; keep proper books of record and account in which full,
true and correct entries are made of all material dealings and transactions in relations to its
business and activities; and permit representatives of any Lender or the Administrative Agent,
during normal business hours, to examine, copy and make extracts from its books and records, to
inspect its properties, and to discuss its business and affairs with its officers, all to the
extent reasonably requested by such Lender or the Administrative Agent (as the case may be).




          8.04 Insurance. The Company shall, and shall cause each of its Subsidiaries to, keep
insured by financially sound and reputable insurers all property of a character usually insured by
corporations engaged in the same or similar business similarly situated against loss or damage of
the kinds and in the amounts customarily insured against by such corporations and carry such other
insurance as is usually carried by such corporations.




          8.05 Use of Proceeds. The proceeds of the Credit Extensions hereunder will be used
solely for general corporate purposes, including (without limitation) commercial paper




Credit Agreement










 



- 55 -



back-up and acquisitions (each of which uses shall be in compliance with all applicable legal
and regulatory requirements, including, without limitation, Regulations U and X of the Board of
Governors of the Federal Reserve System and the Securities Act of 1933, as amended, and the
Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder). The
Company will not permit more than 25% of the value (as determined by any reasonable method) of its
assets, nor more than 25% of the value (as determined by any reasonable method) of the assets of
the Company and its Subsidiaries, to be represented by margin stock (within the meaning of
Regulation U of the Board of Governors of the Federal Reserve System).




          8.06 Indebtedness. The Company will not, nor will it permit any of its Subsidiaries to,
incur, assume or suffer to exist obligations in respect of standby and performance letters of
credit (other than Letters of Credit issued hereunder) in an aggregate amount exceeding 5% of Total
Consolidated Assets at any one time outstanding. The Company will not permit any of its
Subsidiaries to create, issue, incur or assume, or suffer to exist, any Indebtedness, except:





          (i) Indebtedness existing on the date hereof (including any Indebtedness incurred
after the date hereof under any instrument or agreement in effect on the date hereof), but
not any renewals, extensions or refinancings of the same;




          (ii) Indebtedness owing to the Company and Indebtedness owing by any Subsidiary to
another Subsidiary;




          (iii) Indebtedness of any Person that becomes a Subsidiary of the Company after the
date hereof so long as such Indebtedness exists at the time such Person becomes such a
Subsidiary and was not incurred in anticipation thereof;




          (iv) Capital Lease Obligations in an aggregate amount not to exceed an amount equal to
5% of Total Consolidated Assets at any one time outstanding;




          (v) Indebtedness in respect of Credit Extensions under this Agreement; and




          (vi) additional Indebtedness in an aggregate amount not to exceed an amount equal to
15% of Total Consolidated Assets at any one time outstanding.



          8.07 Fundamental Changes.




          (a) The Company will not, and will not permit any of its Subsidiaries to, be a party to any
merger or consolidation, and the Company will not, and will not permit any of its Subsidiaries or
operating divisions (whether now owned or existing or hereafter acquired or designated) to, (x)
sell, assign, lease or otherwise dispose of all or substantially all of its Property whether now
owned or hereafter acquired or (y) sell, assign or otherwise dispose of any capital stock of any
such Subsidiary, or permit any such Subsidiary to issue any capital stock, to any Person other than
the Company or any of its Wholly-Owned Subsidiaries if, after giving effect thereto, the Company
does not own, directly or indirectly, a majority of the capital stock of such
Subsidiary (“Controlling Stock Disposition”); provided that, so long as both
before and after giving effect thereto, no Default shall have occurred and be continuing:




Credit Agreement










 



- 56 -





(i) the Company or any Subsidiary of the Company may be a party to any merger or
consolidation if it shall be the surviving corporation;




(ii) any such Subsidiary may be a party to any merger or consolidation with another such
Subsidiary (or with any Person that becomes another such Subsidiary as a result of such
merger or consolidation);




(iii) any such Subsidiary may merge into, and any such Subsidiary or operating division may
transfer any Property to, the Company;




(iv) any such Subsidiary or operating division may transfer any Property to another such
Subsidiary or operating division (or to any Person that becomes as part of such transfer
another such Subsidiary or operating division);




(v) the Company, any such Subsidiary or operating division may sell, assign, lease or
otherwise dispose of any Non-Strategic Property; and




(vi) the Company or any such Subsidiary or operating division may make sales, assignments
and other dispositions of Property (including Controlling Stock Dispositions) and any such
Subsidiary may become a party to a merger or consolidation (each such sale, assignment,
disposition, Controlling Stock Disposition, merger or consolidation, other than those
described in clauses (i) through (v), a “Disposition”) if the aggregate book value
of the Property that was the subject of such Disposition, together with the aggregate book
value of the Property that was the subject of all other Dispositions during the Disposition
Period for such Disposition, would not exceed an amount equal to 15% of the Total
Consolidated Assets determined as of the last day of the most recently completed fiscal year
for which a consolidated balance sheet of the Company has been furnished to the Lenders
pursuant to Section 8.01.



          (b) Notwithstanding anything in clauses (i) through (vi) of Section 8.07(a) to the contrary,
the Company will not, and will not permit any of its Subsidiaries or operating divisions (whether
now owned or existing or hereafter acquired or designated) to, sell, lease, assign, transfer or
otherwise dispose of (whether in one transaction or in a series of transactions) any of its
Property (whether now owned or hereafter acquired) if such sale, assignment, lease or other
disposition (whether in one transaction or in a series of transactions) shall have a Material
Adverse Effect.




          8.08 Liens. The Company shall not, and shall not permit any of its Subsidiaries to,
create, assume or suffer to exist any Lien upon any of its property or assets, now owned or
hereafter acquired, securing any Indebtedness or other obligation except: (i) Liens outstanding on
the date hereof and listed in Schedule II hereto; (ii) Liens for taxes or other governmental
charges not yet delinquent; (iii) Liens in respect of Property acquired or constructed or improved
by the Company or any such Subsidiary after the date hereof which Liens exist or are created at the
time of acquisition or completion of construction or improvement of such Property or within
six months thereafter to secure Indebtedness assumed or incurred to finance all or any part of
the purchase price or cost of construction or improvement of such Property, but any such Lien shall
cover only the Property so acquired or constructed and any improvements thereto (and any real




Credit Agreement










 



- 57 -



property on which such Property is located); (iv) Liens on Property of any corporation that becomes
a Subsidiary of the Company after the date hereof, provided that such Liens are in
existence at the time such corporation becomes a Subsidiary of the Company and were not created in
anticipation thereof; (v) Liens on Property acquired after the date hereof, provided that
such Liens were in existence at the time such Property was acquired and were not created in
anticipation thereof; (vi) Liens imposed by law, such as mechanics’, materialmen’s, landlords’,
warehousemen’s and carriers’ Liens, and other similar Liens, securing obligations incurred in the
ordinary course of business which are not past due for more than thirty days or which are being
contested in good faith by appropriate proceedings and for which appropriate reserves have been
established; (vii) Liens under workmen’s compensation, unemployment insurance, social security or
similar legislation; (viii) Liens, deposits, or pledges to secure the performance of bids, tenders,
contracts (other than contracts for the payment of money), leases, public or statutory obligations,
surety, stay, appeal, indemnity, performance or other similar bonds, or other similar obligations
arising in the ordinary course of business; (ix) judgment and other similar Liens arising in
connection with court proceedings, provided the execution or other enforcement of such
Liens is effectively stayed and the claims secured thereby are being actively contested in good
faith and by appropriate proceedings; (x) easements, rights-of-way, restrictions and other similar
encumbrances which, in the aggregate, do not materially interfere with the occupation, use and
enjoyment by the Company or any such Subsidiary of the Property encumbered thereby in the normal
course of its business or materially impair the value of the Property subject thereto; (xi) Liens
securing obligations of any such Subsidiary to the Company or another Subsidiary of the Company;
(xii) Liens arising in connection with Permitted Securitizations; and (xiii) other Liens securing
Indebtedness or other obligations in an aggregate amount not exceeding 5% of Total Consolidated
Assets.




          8.09 Lines of Businesses. Neither the Company nor any of its Subsidiaries shall engage to
any significant extent in any line or lines of business other than the lines of business in which
they are engaged on the date hereof and any other line or lines of business directly related to the
manufacture, distribution and/or sale of consumer or industrial products (collectively,
“Permitted Activities”). Notwithstanding the foregoing, the Company and its Subsidiaries
may engage in other lines of business as a result of the acquisition of any Person primarily
engaged in Permitted Activities so long as the Company uses its best efforts to come into
compliance with the first sentence of this Section 8.09 within a reasonable period of time after
such acquisition.




          8.10 Total Indebtedness to Total Capital. The Company shall not permit the ratio of Total
Indebtedness to Total Capital at any time to be greater than 0.60 to 1; provided that (i)
in calculating Total Capital, goodwill impairment charges taken pursuant to the Financial
Accounting Standards Board shall be disregarded to the extent such charges do not exceed
$550,000,000 in the aggregate and (ii) in calculating such ratio, quarterly income preferred
securities, quarterly income capital securities, monthly income
preferred securities or other similar securities will be treated as part of “Total Capital” and not
“Total Indebtedness”.




          8.11 Interest Coverage Ratio.




          The Company shall not permit the Interest Coverage Ratio as at the last day of any fiscal
quarter to be less than 4.00 to 1.00.




Credit Agreement










 



- 58 -




          8.12 Transactions with Affiliates. The Company shall not, and shall not permit any of its
Subsidiaries to, sell, lease or otherwise transfer any property or assets to, or purchase, lease or
otherwise acquire any property or assets from, or otherwise engage in any other transactions with,
any of its Affiliates, except (a) at prices and on terms and conditions not less favorable to the
Company or such Subsidiary than could be obtained on an arm’s-length basis from unrelated third
parties and (b) transactions between or among the Company and its Subsidiaries not involving any
other Affiliate.




          SECTION 9. EVENTS OF DEFAULT. If one or more of the following events (herein called
“Events of Default”) shall occur and be continuing:





(a) Any Borrower shall default in the payment of any principal of any Loan or any
reimbursement obligation in respect of any LC Disbursement when and as the same shall become
due and payable; or




(b) Any Borrower shall default in the payment of any interest on any Loan or on any
reimbursement obligation in respect of any LC Disbursement or any fee or any other amount
(other than an amount referred to in clause (a) of this Article) payable hereunder or under
any other Credit Document, when and as the same shall become due and payable, and such
failure shall continue unremedied for a period of five days; or




(c) The Company or any of its Subsidiaries shall default in the payment when due of any
principal of or interest on any of its other Indebtedness aggregating $50,000,000 or more;
or any event specified in any note, agreement, indenture or other document evidencing or
relating to any Indebtedness aggregating $50,000,000 or more shall occur if the effect of
such event is to cause, or (with the giving of any notice or the lapse of time or both) to
permit the holder or holders of such Indebtedness (or a trustee or agent on behalf of such
holder or holders) to cause, such Indebtedness to become due prior to its stated maturity or
to permit termination of the commitment to lend pursuant to any such instrument or
agreement; or




(d) Any representation, warranty or certification made or deemed made by the Company herein
or in any Designation Letter or by the Company in any certificate furnished to any Lender or
the Administrative Agent pursuant to the provisions hereof or thereof, shall prove to have
been false or misleading as of the time made or furnished in any material
respect; or




(e) The Company shall default in the performance of any of its obligations under Section
8.01(f) or 8.05 through 8.12; or the Company shall default in the performance of any of its
other obligations in this Agreement and such default shall continue unremedied for a period
of 30 days after notice thereof to the Company by the Administrative Agent or any Lender
(through the Administrative Agent); or




(f) The Company or any of its Significant Subsidiaries shall admit in writing its inability
to, or be generally unable to, pay its debts as such debts become due; or



Credit Agreement










 



- 59 -





(g) The Company or any of its Significant Subsidiaries shall (i) apply for or consent to
the appointment of, or the taking of possession by, a receiver, custodian, trustee or
liquidator of itself or of all or a substantial part of its property, (ii) make a general
assignment for the benefit of its creditors, (iii) commence a voluntary case under the
Bankruptcy Code (as now or hereafter in effect), (iv) file a petition seeking to take
advantage of any other law relating to bankruptcy, insolvency, reorganization, winding-up,
or composition or readjustment of debts, (v) fail to controvert in a timely and appropriate
manner, or acquiesce in writing to, any petition filed against it in an involuntary case
under the Bankruptcy Code, or (vi) take any corporate action for the purpose of effecting
any of the foregoing; or




(h) A proceeding or case shall be commenced against the Company or any of its Significant
Subsidiaries without its application or consent, in any court of competent jurisdiction,
seeking (i) its liquidation, reorganization, dissolution or winding-up, or the composition
or readjustment of its debts, (ii) the appointment of a trustee, receiver, custodian,
liquidator or the like of it or of all or any substantial part of its assets, or (iii)
similar relief in respect of it under any law relating to bankruptcy, insolvency,
reorganization, winding-up, or composition or adjustment of debts, and such proceeding or
case shall continue undismissed, or an order, judgment or decree approving or ordering any
of the foregoing shall be entered and continue unstayed and in effect, for a period of 60
days; or an order for relief against it shall be entered in an involuntary case under the
Bankruptcy Code; or




(i) A final judgment or judgments for the payment of money in excess of $50,000,000 in the
aggregate shall be rendered by a court or courts against the Company and/or any of its
Subsidiaries and the same shall not be discharged (or provision shall not be made for such
discharge), or a stay of execution thereof shall not be procured, within 30 days from the
date of entry thereof and the Company or the relevant Subsidiary shall not, within said
period of 30 days, or such longer period during which execution of the same shall have been
stayed, appeal therefrom and cause the execution thereof to be stayed during such appeal; or




(j) An event or condition specified in Section 8.01(e) shall occur or exist with respect to
any Plan or Multiemployer Plan of the Company and, as a result of such event or condition,
together with all other such events or conditions, the Company or any ERISA
Affiliate shall incur or in the opinion of the Majority Lenders shall be reasonably likely
to incur a liability to a Plan, a Multiemployer Plan or PBGC (or any combination of the
foregoing) which, in the determination of the Majority Lenders, would reasonably be expected
to have a Material Adverse Effect; or




(k) During any period of 25 consecutive calendar months (i) individuals who were directors
of the Company on the first day of such period and (ii) other individuals whose election or
nomination to the Board of Directors of the Company was approved by at least a majority of
the individuals referred to in clause (i) above and (iii) other individuals whose election
or nomination to the Board of Directors of the Company was approved by at least a majority
of the individuals referred to in clauses (i) and (ii) above shall no



Credit Agreement











 



- 60 -





longer constitute a majority of the Board of Directors of the Company; or




(l) The Guarantee provided in Section 11, or any provisions thereof, shall cease to be in
full force and effect in all material respects, or any guarantor thereunder or any Person
acting on behalf of such guarantor shall deny or disaffirm such guarantor’s obligations
under such Guarantee or shall default in the due performance or observance of any term,
covenant or agreement on its part to be performed or observed pursuant to such Guarantee;


THEREUPON: (i) in the case of an Event of Default (other than one referred to in clause (g) or (h)
of this Section 9 in respect of the Company) (x) the Administrative Agent may and, upon request of
the Majority Lenders, shall, by notice to the Company, cancel the Commitments and (y) the
Administrative Agent may and, upon request of the Majority Lenders, shall, by notice to the
Company, declare the principal amount of and the accrued interest on the Loans, and all other
amounts payable by the Company or any other Borrower hereunder and under the Notes, to be forthwith
due and payable, whereupon such amounts shall be immediately due and payable without presentment,
demand, protest or other formalities of any kind, all of which are hereby expressly waived by the
Company and each other Borrower; and (ii) in the case of the occurrence of an Event of Default
referred to in clause (g) or (h) of this Section 9 in respect of the Company, the Commitments shall
be automatically cancelled and the principal amount then outstanding of, and the accrued interest
on, the Loans and all other amounts payable by the Company or any other Borrower hereunder and
under the Notes shall become automatically immediately due and payable without presentment, demand,
protest or other formalities of any kind, all of which are hereby expressly waived by the Company
and each other Borrower.




     In addition, in the case of the occurrence of any event of the type referred to in clause (g)
or (h) of this Section 9 in respect of any Designated Borrower, the principal amount then
outstanding of, and accrued interest on, the Loans and other amounts payable by such Designated
Borrower hereunder and under its Notes shall automatically become immediately due and payable
without presentment, demand, protest or other formalities of any kind, all of which are hereby
expressly waived by such Designated Borrower and the Company.



          If an Event of Default shall occur and be continuing, the Administrative Agent or the Majority
Lenders may require the Company (or, in case of any Event of Default described in
clause (g) or (h) of this Section 9, the Company shall become immediately obligated) to
deposit cash collateral pursuant to Section 2.04(j).




Credit Agreement











 



- 61 -




          SECTION 10. THE ADMINISTRATIVE AGENT.




          10.01 Appointment, Powers and Immunities. Each Lender and each Issuing Bank hereby
irrevocably (but subject to Section 10.08) appoints and authorizes the Administrative Agent to act
as its agent hereunder with such powers as are specifically delegated to the Administrative Agent
by the terms of this Agreement together with such other powers as are reasonably incidental
thereto. The Administrative Agent (which term as used in this sentence and in Section 10.05 and
the first sentence of Section 10.06 shall include reference to its Affiliates and its own and its
affiliates’ officers, directors, employees and agents): (a) shall have no duties or
responsibilities except those expressly set forth in this Agreement and shall not by reason of this
Agreement be a trustee for any Lender; (b) shall not be responsible to the Lenders for any
recitals, statements, representations or warranties contained in this Agreement or in any
certificate or other document referred to or provided for in, or received by any of them under,
this Agreement or for the value, validity, effectiveness, genuineness, enforceability or
sufficiency of this Agreement, any Note or any other document referred to or provided for herein or
for any failure by the Company or any other Person to perform any of its obligations hereunder or
thereunder; (c) shall not be required to initiate or conduct any litigation or collection
proceedings hereunder; and (d) shall not be responsible for any action taken or omitted to be taken
by it hereunder or under any other document or instrument referred to or provided for herein or in
connection herewith, except for its own gross negligence or willful misconduct. The Administrative
Agent may employ agents and attorneys-in-fact and shall not be responsible for the negligence or
misconduct of any such agents or attorneys-in-fact selected by it with reasonable care.




          10.02 Reliance by Administrative Agent. The Administrative Agent shall be entitled to
rely upon any certification, notice or other communication (including any thereof by telephone,
telex, telegram or cable) believed by it to be genuine and correct and to have been signed or sent
by or on behalf of the proper Person or Persons, and upon advice and statements of legal counsel,
independent accountants and other experts selected by the Administrative Agent. As to any matters
not expressly provided for by this Agreement, the Administrative Agent shall in all cases be fully
protected in acting, or in refraining from acting, hereunder in accordance with instructions signed
by the Majority Lenders (or such other number of Lenders as is expressly required hereby), and such
instructions of the Majority Lenders (or such other number of Lenders) and any action taken or
failure to act pursuant thereto shall be binding on all the Lenders.




          10.03 Defaults. The Administrative Agent shall not be deemed to have knowledge of the
occurrence of a Default unless the Administrative Agent has received notice from a Lender or the
Company specifying such Default and stating that such notice is a “Notice of Default”. In the
event that the Administrative Agent receives such a notice of the occurrence of a Default, the
Administrative Agent shall give prompt notice thereof to the Lenders. The Administrative Agent
shall (subject to Section 10.07) take such action with respect to such Default as shall be directed
by the Majority Lenders, provided that, unless and until the Administrative Agent shall
have received such directions, the Administrative Agent may (but shall not be obligated to) take
such action, or refrain from taking such action, with respect to such Default as it shall deem
advisable in the best interest of the Lenders.




Credit Agreement










 



- 62 -




     10.04 Rights as a Lender. With respect to its Commitment and the Loans made by it, JPMCB
(and any successor acting as Administrative Agent), in its capacity as a Lender hereunder shall
have the same rights and powers hereunder as any other Lender and may exercise the same as though
it were not acting as the Administrative Agent, and the term “Lender” or “Lenders” shall, unless
the context otherwise indicates, include the Administrative Agent in its individual capacity.
JPMCB (and any successor acting as Administrative Agent) and its Affiliates may (without having to
account therefor to any Lender) accept deposits from, lend money to and generally engage in any
kind of banking, trust or other business with the Company (and any of its Affiliates) as if it were
not acting as the Administrative Agent, and JPMCB and its Affiliates may accept fees and other
consideration from the Company for services in connection with this Agreement or otherwise without
having to account for the same to the Lenders.



     10.05 Indemnification. The Lenders agree to indemnify the Administrative Agent (to the
extent not reimbursed under Section 12.03, but without limiting the obligations of the Company
under said Section 12.03), ratably in accordance with their respective Commitments, for any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind and nature whatsoever which may be imposed on, incurred by or asserted
against the Administrative Agent in any way relating to or arising out of this Agreement or any
other documents contemplated by or referred to herein or the transactions contemplated hereby
(including, without limitation, the costs and expenses which the Company is obligated to pay under
Section 12.03 but excluding, unless a Default has occurred and is continuing, normal administrative
costs and expenses incident to the performance of its agency duties hereunder) or the enforcement
of any of the terms hereof, or of any such other documents, provided that no Lender shall
be liable for any of the foregoing to the extent they arise from the gross negligence or willful
misconduct of the party to be indemnified.



     10.06 Non-Reliance on Administrative Agent and Other Lenders. Each Lender agrees that it
has, independently and without reliance on the Administrative Agent or any other Lender, and based
on such documents and information as it has deemed appropriate,
made its own credit analysis of the Company and its Subsidiaries and decision to enter into this
Agreement and that it will, independently and without reliance upon the Administrative 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 analysis and decisions in taking or not taking action under this
Agreement. The Administrative Agent shall not be required to keep itself informed as to the
performance or observance by any Obligor of this Agreement or any other document referred to or
provided for herein or to inspect the properties or books of the Company or any Subsidiary of the
Company. Except for notices, reports and other documents and information expressly required to be
furnished to the Lenders by the Administrative Agent hereunder, the Administrative Agent shall not
have any duty or responsibility to provide any Lender with any credit or other information
concerning the affairs, financial condition or business of the Company or any Subsidiary of the
Company (or any of their affiliates) which may come into the possession of the Administrative Agent
or any of its Affiliates.



Credit Agreement










 



- 63 -




          10.07 Failure to Act. Except for action expressly required of the Administrative Agent
hereunder the Administrative Agent shall in all cases be fully justified in failing or refusing to
act hereunder unless it shall be indemnified to its satisfaction by the Lenders against any and all
liability and expense which may be incurred by it by reason of taking or continuing to take any
such action.




          10.08 Resignation or Removal of Administrative Agent. Subject to the appointment and
acceptance of a successor Administrative Agent as provided below, the Administrative Agent may
resign at any time by giving notice thereof to the Lenders and each Issuing Bank, and the Company
and the Administrative Agent may be removed at any time with or without cause by the Majority
Lenders. Upon any such resignation or removal, the Majority Lenders shall have the right to
appoint a successor Administrative Agent. If no successor Administrative Agent shall have been so
appointed by the Majority Lenders and shall have accepted such appointment within 30 days after the
retiring Administrative Agent’s giving of notice of resignation or the Majority Lenders’ removal of
the retiring Administrative Agent, then the retiring Administrative Agent may, on behalf of the
Lenders and each Issuing Bank, appoint a successor Administrative Agent, which shall be a bank with
a combined capital and surplus of at least $100,000,000 which has an office in New York, New York.
Upon the acceptance of any appointment as Administrative Agent hereunder by a successor
Administrative Agent, such successor Administrative Agent shall thereupon succeed to and become
vested with all the rights, powers, privileges and duties of the retiring Administrative Agent, and
the retiring Administrative Agent shall be discharged from its duties and obligations hereunder.
After any retiring Administrative Agent’s resignation or removal hereunder as Administrative Agent,
the provisions of this Section 10 shall continue in effect for its benefit in respect of any
actions taken or omitted to be taken by it while it was acting as the Administrative Agent.




          10.09 Lead Arranger and Other Agents.




          Anything herein to the contrary notwithstanding, the Sole Lead Arranger and Sole Bookrunner
and the Co-Syndication Agents listed on the cover page shall not have any duties or
responsibilities under this Agreement, except in their capacity, if any, as Lenders.




Credit Agreement










 



- 64 -




          SECTION 11. GUARANTEE.




          11.01 Guarantee. The Company hereby guarantees to each Lender and the Administrative
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 Loans made by the Lenders to, and the Notes held by each Lender of, any Designated
Borrower and all other amounts from time to time owing to the Lenders or the Administrative Agent
by any Designated Borrower under this Agreement pursuant to its Designation Letter and under the
Notes, 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 Designated Borrower shall fail to pay in full when due (whether at stated maturity, by
acceleration, by optional 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.




          11.02 Obligations Unconditional. The obligations of the Company hereunder are
unconditional irrespective of (a) the value, genuineness, validity, regularity or enforceability of
any of the Guaranteed Obligations, (b) 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, (c) any extension of time for performance or waiver of performance of any covenant of any
Designated Borrower or any failure or omission to enforce any right with regard to any of the
Guaranteed Obligations, (d) any exchange, surrender, release of any other guaranty of or security
for any of the Guaranteed Obligations, or (e) any other circumstance with regard to any of the
Guaranteed Obligations which may or might in any manner constitute a legal or equitable discharge
or defense of a surety or guarantor, it being the intent hereof that the obligations of the Company
hereunder shall be absolute and unconditional under any and all circumstances.




     The Company hereby expressly waives diligence, presentment, demand, protest, and all notices
whatsoever with regard to any of the Guaranteed Obligations and any requirement that the
Administrative Agent or any Lender exhaust any right, power or remedy or proceed against any
Designated Borrower hereunder or under the Designation Letter of such Designated Borrower or any
Note of such Designated Borrower or any other guarantor of or any security for any of the
Guaranteed Obligations.



Credit Agreement










 



- 65 -




          11.03 Reinstatement. The guarantee in this Section 11 shall be automatically reinstated
if and to the extent that for any reason any payment by or on behalf of any Designated Borrower 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.




          11.04 Subrogation. Until the termination of the Commitments and the payment in full of
the principal of and interest on the Loans and all other amounts payable to the Administrative
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 Bankruptcy Code) or otherwise, by reason of any payment by it pursuant to the
provisions of this Section 11.




          11.05 Remedies. The Company agrees that, as between the Company on the one hand and the
Lenders and the Administrative Agent on the other hand, the obligations of any Designated Borrower
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 Section 9, for purposes of Section 11.01
notwithstanding any stay, injunction or other prohibition (whether in a bankruptcy proceeding
affecting such Designated Borrower or otherwise) preventing such declaration as against such
Designated Borrower and that, in the event of such declaration or automatic acceleration such
obligations (whether or not due and payable by such Designated Borrower) shall forthwith become due
and payable by the Company for purposes of said Section 11.01.




          11.06 Continuing Guarantee. The guarantee in this Section 11 is a continuing guarantee
and shall apply to all Guaranteed Obligations whenever arising.




          SECTION 12. MISCELLANEOUS.




          12.01 Waiver. No failure on the part of the Administrative Agent, any Issuing Bank or any
Lender to exercise and no delay in exercising, and no course of dealing with respect to, any right,
power or privilege under this Agreement, any Designation Letter or any Note shall operate as a
waiver thereof, nor shall any single or partial exercise of any right, power or privilege under
this Agreement, any Designation Letter or any Note preclude any other or further exercise thereof
or the exercise of any other right, power or privilege. The remedies provided herein and therein
are cumulative and not exclusive of any remedies provided by law.




Credit Agreement










 



- 66 -




          12.02 Notices. All notices and other communications provided for herein (including,
without limitation, any modifications of, or requests, demands, waivers or consents under, this
Agreement) shall be given or made in writing and telecopied, mailed or delivered to the intended
recipient at (i) in the case of the Company, each Issuing Bank or the Administrative Agent, the
“Address for Notices”
specified below its name on the signature pages hereof and (ii) in the case of each Lender, the
address (or telecopy) set forth in its Administrative Questionnaire; or, as to any party, at such
other address as shall be designated by such party in a notice to each other party. Except as
otherwise provided in this Agreement, all such communications shall be deemed to have been duly
given when transmitted by telecopier or personally delivered or, in the case of a mailed notice,
upon receipt, in each case given or addressed as aforesaid. Notices and other communications to
the Lenders hereunder may be delivered or furnished by electronic communications pursuant to
procedures approved by the Administrative Agent; provided that the foregoing shall not
apply to notices pursuant to Section 2 unless otherwise agreed by the Administrative Agent and the
applicable Lender. The Administrative Agent or the Company may, in its discretion, agree to accept
notices and other communications to it hereunder by electronic communications pursuant to
procedures approved by it; provided that approval of such procedures may be limited to
particular notices or communications. Each Designated Borrower hereby agrees that each notice or
other communication provided for herein may be furnished to the Company or by the Company on its
behalf in the manner specified above and each Designated Borrower further agrees that failure of
the Company to deliver to such Designated Borrower any notice furnished in accordance with this
Section 12.02 shall not affect the validity of such notice.




          12.03 Expenses, Etc. The Company agrees to pay or reimburse each of the Lenders, each
Issuing Bank and the Administrative Agent for paying: (a) the reasonable fees and expenses of
Milbank, Tweed, Hadley & McCloy LLP, special New York counsel to the Administrative Agent, in
connection with (i) the preparation, execution and delivery of this Agreement, the Designation
Letters and the Notes, the making of the Loans hereunder and the issuance, amendment, renewal or
extension of any Letter of Credit or any demand for payment thereunder and (ii) any amendment,
modification or waiver (whether or not such amendment, modification or waiver shall become
effective) of any of the terms of this Agreement or any of the Notes; (b) all reasonable costs and
expenses of the Lenders, each Issuing Bank and the Administrative Agent (including reasonable
counsels’ fees) in connection with the enforcement of this Agreement, any Designation Letter or any
of the Notes; and (c) all transfer, stamp, documentary or other similar taxes, assessments or
charges levied by any governmental or revenue authority in respect of this Agreement, any
Designation Letter, any of the Notes or any other document referred to herein.




          The Company hereby agrees to indemnify the Administrative Agent, each Issuing Bank and each
Lender and each of their respective Affiliates, and each of the respective directors, officers,
employees, agents and advisors of any of the foregoing Persons (each such Person being called an
“Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses, claims,
damages, liabilities and related expenses, including the reasonable fees, charges and disbursements
of any counsel for any Indemnitee, incurred by or asserted against any Indemnitee arising out of,
in connection with, or as a result of (i) the execution or delivery of this Agreement or any
agreement or instrument contemplated hereby, the performance by the




Credit Agreement










 



- 67 -



parties hereto of their
respective obligations hereunder or the consummation of the transactions contemplated hereby, (ii)
any Loan or Letter of Credit or the use of the proceeds therefrom (including any refusal by an
Issuing Bank to honor a demand for payment under a Letter of
Credit if the documents presented in connection with such demand do not strictly comply with the
terms of such Letter of Credit) or (iii) any actual or prospective claim, litigation, investigation
or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory
and regardless of whether any Indemnitee is a party thereto; provided that such indemnity
shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages,
liabilities or related expenses are determined by a court of competent jurisdiction by final and
nonappealable judgment to have resulted from the gross negligence or willful misconduct of such
Indemnitee.




          12.04 Amendments, Etc. Except as otherwise expressly provided in this Agreement, any
provision of this Agreement may be amended or modified only by an instrument in writing signed by
the Company, the Administrative Agent and the Majority Lenders, or by the Company, and the
Administrative Agent acting with the consent of the Majority Lenders, and any provision of this
Agreement may be waived by the Majority Lenders or by the Administrative Agent acting with the
consent of the Majority Lenders; provided that no amendment, modification or waiver shall,
unless by an instrument signed by each of the Lenders affected thereby or by the Administrative
Agent acting with the consent of each of the Lenders affected thereby: (i) increase or extend the
term, or extend the time or waive any requirement for the reduction or termination, of the
Commitments, (ii) extend the date fixed for the payment of any principal of or interest on any Loan
or LC Disbursement, (iii) reduce the amount of any principal of any Loan or LC Disbursement or the
rate at which interest or any fee is payable hereunder, (iv) alter the terms of Section 11 or
release the Company from any of its material obligations thereunder, (v) alter the terms of this
Section 12.04 or (vi) amend the definition of the term “Majority Lenders” or modify in any other
manner the number or percentage of the Lenders required to make any determinations or waive any
rights hereunder or to modify any provision hereof; and provided, further, that any
amendment of Section 10, or which increases the obligations or alters the rights of the
Administrative Agent or each Issuing Bank hereunder, shall require the consent of the
Administrative Agent or such Issuing Bank, as the case may be.




          12.05. Assignments and Participations.




          (a) No Obligor may assign any of its rights or obligations hereunder or under the Notes
without the prior consent of all of the Lenders and the Administrative Agent.




          (b) (i) Subject to the conditions set forth in paragraph (b)(ii) below, any Lender may
assign to one or more assignees all or a portion of its rights and obligations under this Agreement
(including all or a portion of its Commitment and the Loans at the time owing to it) with the prior
written consent (such consent not to be unreasonably withheld) of (A) the Company, provided
that no consent of the Company shall be required for an assignment to a Lender, an Affiliate of a
Lender, an Approved Fund or, if an Event of Default has occurred and is continuing, any other
assignee; and (B) the Administrative Agent and each Issuing Bank.




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




Credit Agreement










 



- 68 -





     (A) except in the case of an assignment to a Lender or an Affiliate of a
Lender or an assignment of the entire remaining amount of the assigning Lender’s
Commitment, the amount of the Commitment of the assigning Lender subject to each
such assignment (determined as of the date the Assignment and Assumption with
respect to such assignment is delivered to the Administrative Agent) shall not be
less than $5,000,000 unless each of the Company, the Administrative Agent and each
Issuing Bank otherwise consent, provided that no such consent of the Company
shall be required if an Event of Default has occurred and is continuing;




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




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




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



          (iii) Subject to acceptance and recording thereof pursuant to paragraph (b)(iv) of this
Section 12.05, from and after the effective date specified in each Assignment and Assumption the
assignee thereunder shall be a party hereto and, to the extent of the interest assigned by such
Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and
the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment
and Assumption, be released from its obligations under this Agreement (and, in the case of an
Assignment and Assumption covering all of the assigning Lender’s rights and obligations under this
Agreement, such Lender shall cease to be a party hereto but shall continue to be entitled to the
benefits of Sections 5.01, 5.05, 5.06 and 12.03). Any assignment or transfer by a Lender of rights
or obligations under this Agreement that does not comply with this Section 12.05(b) shall be
treated for purposes of this Agreement as a sale by such Lender of a participation in such rights
and obligations in accordance with Section 12.05(c).




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




Credit Agreement










 



- 69 -




          (v) Upon its receipt of a duly completed Assignment and Assumption executed
by an assigning Lender and an assignee, the assignee’s completed Administrative Questionnaire
(unless the assignee shall already be a Lender hereunder), the processing and recordation fee
referred to in Section 12.05(b) and any written consent to such assignment required thereby, the
Administrative Agent shall accept such Assignment and Assumption and record the information
contained therein in the Register. No assignment shall be effective for purposes of this Agreement
unless it has been recorded in the Register as provided in this paragraph.




          (c) (i) Any Lender may, without the consent of the Company, the Administrative Agent or each
Issuing Bank, sell participations to one or more banks or other entities (a “Participant”)
in all or a portion of such Lender’s rights and obligations under this Agreement (including all or
a portion of its Commitment and the Loans owing to it); provided that (A) such Lender’s
obligations under this Agreement shall remain unchanged, (B) such Lender shall remain solely
responsible to the other parties hereto for the performance of such obligations and (C) the
Company, the Administrative Agent, each Issuing Bank and the other Lenders shall continue to deal
solely and directly with such Lender in connection with such Lender’s rights and obligations under
this Agreement. Any agreement or instrument pursuant to which a Lender sells such a participation
shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve
any amendment, modification or waiver of any provision of this Agreement; provided that
such agreement or instrument may provide that such Lender will not, without the consent of the
Participant, agree to any amendment, modification or waiver described in the first proviso to
Section 12.04 that affects such Participant. Subject to paragraph (c)(ii) of this Section 12.05,
the Company agrees that each Participant shall be entitled to the benefits of Sections 5.01, 5.05
and 5.06 to the same extent as if it were a Lender and had acquired its interest by assignment
pursuant to paragraph (b) of this Section 12.05. To the extent permitted by law, each Participant
also shall be entitled to the benefits of Section 4.05(a) as though it were a Lender, provided such
Participant agrees to be subject to Section 4.05(b) as though it were a Lender.




          (ii) A Participant shall not be entitled to receive any greater payment under Section 5.01 or
5.06 than the applicable Lender would have been entitled to receive with respect to the
participation sold to such Participant, unless the sale of the participation to such Participant is
made with the Company’s prior written consent.




          (d) Any Lender may at any time pledge or assign a security interest in all or any portion of
its rights under this Agreement to secure obligations of such Lender, including any pledge or
assignment to secure obligations to a Federal Reserve Bank, and this Section shall not apply to any
such pledge or assignment of a security interest; provided that no such pledge or
assignment of a security interest shall release a Lender from any of its obligations hereunder or
substitute any such pledgee or assignee for such Lender as a party hereto.




          (e) A Lender may furnish any information concerning the Company or any of its Subsidiaries in
the possession of such Lender from time to time to assignees and participants (including
prospective assignees and participants).




Credit Agreement











 



- 70 -




          12.06 Survival. The obligations of any Borrower under Sections 5.01, 5.05 and 5.06, the
obligations of the Lenders under Section 10.05 and the obligations of the Company under Section
12.03 shall survive the repayment of the Loans, the expiration or termination of the Letters of
Credit and the termination of the Commitments. In addition, each representation and warranty made,
or deemed to be made, by a notice of borrowing of Loans or the issuance or extension of Letters of
Credit hereunder shall survive the making of such Loans or the issuance or extension of such
Letters of Credit, and no Lender or Issuing Bank shall be deemed to have waived, by reason of
making any Loan or the issuance or extension of any Letter of Credit, any Default or Event of
Default which may arise by reason of such representation or warranty proving to have been false or
misleading, notwithstanding that such Lender, Issuing Bank or the Administrative Agent may have had
notice or knowledge or reason to believe that such representation or warranty was false or
misleading at the time such Loan was made or such Letter of Credit was issued.




          12.07 Captions. Captions and section headings appearing herein are included solely for
convenience of reference and are not intended to affect the interpretation of any provision of this
Agreement.




          12.08 Counterparts; Effectiveness. This Agreement may be executed in any number of
counterparts, each of which shall be identical and all of which, when taken together, shall
constitute one and the same instrument, and any of the parties hereto may execute this Agreement by
signing any such counterpart. Except as provided in Section 6.01, this Agreement shall become
effective when it shall have been executed by the Administrative Agent and when the Administrative
Agent shall have received counterparts hereof which, when taken together, bear the signatures of
each of the other parties hereto, and thereafter shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns. Delivery of an executed
counterpart of a signature page to this Agreement by telecopy shall be effective as delivery of a
manually executed counterpart of this Agreement.




          12.09 Governing Law; Jurisdiction; Service of Process; Waiver of Jury Trial; Etc.




          (a) THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE
STATE OF NEW YORK. ANY LEGAL ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR
THE TRANSACTIONS CONTEMPLATED HEREBY, AND ANY ACTION OR PROCEEDING TO EXECUTE OR OTHERWISE ENFORCE
ANY JUDGMENT OBTAINED IN CONNECTION THEREWITH, MAY BE INSTITUTED IN THE SUPREME COURT OF THE STATE
OF NEW YORK, COUNTY OF NEW YORK OR IN THE U.S. DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW
YORK, AND EACH OBLIGOR IRREVOCABLY AND UNCONDITIONALLY SUBMITS GENERALLY (BUT NON-EXCLUSIVELY) TO
THE JURISDICTION OF EACH SUCH COURT. THE COMPANY IRREVOCABLY CONSENTS TO THE SERVICE OF ANY AND
ALL PROCESS IN ANY SUCH ACTION OR PROCEEDING
BY THE MAILING OF COPIES OF SUCH PROCESS TO THE COMPANY AT ITS ADDRESS SET FORTH UNDERNEATH
ITS SIGNATURE HERETO. EACH DESIGNATED BORROWER HEREBY AGREES THAT SERVICE OF PROCESS IN




Credit Agreement










 



- 71 -



ANY SUCH
ACTION OR PROCEEDING BROUGHT IN NEW YORK MAY BE MADE UPON SUCH DESIGNATED BORROWER BY SERVICE UPON
THE COMPANY AT THE “ADDRESS FOR NOTICES” SPECIFIED BELOW ITS NAME ON THE SIGNATURE PAGES HEREOF AND
EACH DESIGNATED BORROWER HEREBY IRREVOCABLY APPOINTS THE COMPANY AS ITS AUTHORIZED AGENT
(“PROCESS AGENT”) TO ACCEPT, ON BEHALF OF ITSELF AND ITS PROPERTY, SUCH SERVICE OF PROCESS
IN NEW YORK. EACH OBLIGOR 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. EACH OBLIGOR 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. EACH OBLIGOR FURTHER AGREES THAT ANY SUCH ACTION OR PROCEEDING
AGAINST THE ADMINISTRATIVE AGENT, ANY ISSUING BANK AND/OR ANY OF THE LENDERS SHALL BE BROUGHT ONLY
IN THE SUPREME COURT OF THE STATE OF NEW YORK, COUNTY OF NEW YORK OR IN THE U.S. DISTRICT COURT FOR
THE SOUTHERN DISTRICT OF NEW YORK AND THE ADMINISTRATIVE AGENT, EACH ISSUING BANK AND THE LENDERS
HEREBY CONSENT TO THE JURISDICTION OF SUCH COURTS FOR SUCH PURPOSE.




          (b) EACH OF THE OBLIGORS, THE ADMINISTRATIVE AGENT, EACH ISSUING BANK AND THE LENDERS HEREBY
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN
ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY.




Credit Agreement











 



- 72 -




          12.10 Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and permitted assigns.




          12.11 Judgment Currency. This is an international loan transaction in which the
specification of Dollars or an Alternative Currency, as the case may be (the “Specified
Currency”), and any payment in New York City or the country of the Specified Currency, as the
case may be (the “Specified Place”), is of the essence, and the Specified Currency shall be
the currency of account in all events relating to Loans denominated in the Specified Currency. The
payment obligations of the Obligors under this Agreement and the Notes shall not be discharged by
an amount paid in another currency or in another place, whether pursuant to a judgment or
otherwise, to the extent that the amount so
paid on conversion to the Specified Currency and transfer to the Specified Place under normal
banking procedures does not yield the amount of the Specified Currency due hereunder at the
Specified Place. If for the purpose of obtaining judgment in any court it is necessary to convert
a sum due hereunder in the Specified Currency into another currency (the “Second
Currency”), the rate of exchange which shall be applied shall be that at which in accordance
with normal banking procedures the Administrative Agent could purchase the Specified Currency with
the Second Currency on the Business Day next preceding that on which such judgment is rendered.
The obligation of each Obligor in respect of any such sum due from it to the Administrative Agent
or any Lender hereunder (an “Entitled Person”) shall, notwithstanding the rate of exchange
actually applied in rendering such judgment, be discharged only to the extent that on the Business
Day following receipt by such Entitled Person of any sum adjudged to be due hereunder or under the
Notes in the Second Currency such Entitled Person may in accordance with normal banking procedures
purchase and transfer to the Specified Place the Specified Currency with the amount of the Second
Currency so adjudged to be due; and each Obligor hereby, as a separate obligation and
notwithstanding any such judgment, agrees to indemnify such Entitled Person against, and to pay
such Entitled Person on demand in the Specified Currency, any difference between the sum originally
due to such Entitled Person in the Specified Currency and the amount of the Specified Currency so
purchased and transferred.




          12.12. USA PATRIOT Act. Each Lender hereby notifies the Borrowers that pursuant to the
requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26,
2001)), such Lender may be required to obtain, verify and record information that identifies the
Borrowers, which information includes the name and address of the Borrowers and other information
that will allow such Lender to identify the Borrowers in accordance with said Act.




          12.13. Waiver of Notice under Existing Credit Agreement. By its execution hereof, each
undersigned Lender that also is a party to the credit agreement referred to in Section 6.01(c)
hereby waives the provisions of such credit agreement that would require advance notice for the
termination of commitments thereunder; provided that the foregoing waiver shall apply only
to the termination of all commitments under such credit agreement and repayment of all loans
outstanding thereunder in connection with the effectiveness of this Agreement.




Credit Agreement










 



- 73 -




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




	 	 	 	 	 	 	 
	 	 	NEWELL RUBBERMAID INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ Douglas L. Martin
 

	 	 
	 	 	Name: Douglas L. Martin	 	 
	 	 	Title: Vice President-Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	Address for Notices:	 	 
	 	 	Newell Rubbermaid Inc.	 	 
	 	 	29 East Stephenson Street	 	 
	 	 	Freeport, Illinois 61032	 	 
	 
	 	 	 	 	 	 
	 	 	Attn: Douglas L. Martin	 	 
	 

	 	 	 	Vice President-Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	Telecopier No.: (815)-233-8618	 	 
	 	 	Telephone No.: (815)-233-8040	 	 
	 
	 	 	 	 	 	 
	 	 	U.S. Federal Tax Identification No.: 36-3514169	 	 






Credit Agreement










 



- 74 -




	 	 	 	 	 	 	 
	 	 	THE ADMINISTRATIVE AGENT	 	 
	 
	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A.	 	 
	 	 	     as Administrative Agent	 	 
	 
	 

	 	By
	 	/s/ Barbara R. Marks
 

	 	 
	 	 	Name: Barbara R. Marks	 	 
	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	Address for Notices:	 	 
	 
	 	 	 	 	 	 
	 	 	JPMorgan Chase Bank, N.A.	 	 
	 	 	1111 Fannin Street, 10th Floor	 	 
	 	 	Houston, Texas 77002-8069	 	 
	 	 	Attention: Loan and Agency	 	 
	 
	 	 	 	 	 	 
	 	 	Telecopier No.: (713) 750-2782	 	 
	 	 	Telephone No.: (713) 750-2789	 	 






Credit Agreement










 



- 75 -




	 	 	 	 	 	 	 
	 	 	LENDERS	 	 
	 
	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A.	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ Barbara R. Marks
 

	 	 
	 	 	Name: Barbara R. Marks	 	 
	 	 	Title: Vice President	 	 






Credit Agreement











 



- 76 -




	 	 	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A.	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ Sharon Burks Horos
 

	 	 
	 	 	Name: Sharon Burks Horos	 	 
	 	 	Title: Vice President	 	 






Credit Agreement










 



- 77 -




	 	 	 	 	 	 	 
	 	 	BARCLAYS BANK PLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ David Barton
 

	 	 
	 	 	Name: David Barton	 	 
	 	 	Title: Associate Director	 	 






Credit Agreement










 



- 78 -




	 	 	 	 	 	 	 
	 	 	BNP PARIBAS	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ Jo Ellen Bender
 

	 	 
	 	 	Name: Joe Ellen Bender	 	 
	 	 	Title: Managing Director	 	 
	 
	 	 	 	 	 	 
	 	 	BNP PARIBAS	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ Christopher S. Grumboski	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Christopher S. Grumboski	 	 
	 	 	Title: Director	 	 






Credit Agreement










 



- 79 -




	 	 	 	 	 	 	 
	 	 	CITICORP USA, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ Carolyn A. Kee
 

	 	 
	 	 	Name: Carolyn A. Kee	 	 
	 	 	Title: Vice President	 	 






Credit Agreement










 



- 80 -




	 	 	 	 	 	 	 
	 	 	LEHMAN COMMERCIAL PAPER INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ Janine M. Shugan
 

	 	 
	 	 	Name: Janine M. Shugan	 	 
	 	 	Title: Authorized Signatory	 	 






Credit Agreement










 



- 81 -




	 	 	 	 	 	 	 
	 	 	THE BANK OF TOKYO-MITSUBISHI, LTD., CHICAGO BRANCH	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ Tsuguyuki Umene
 

	 	 
	 	 	Name: Tsuguyuki Umene	 	 
	 	 	Title: Deputy General Manager	 	 






Credit Agreement










 



- 82 -




	 	 	 	 	 	 	 
	 	 	WILLIAM STREET COMMITMENT CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ Mark Walton
 

	 	 
	 	 	Name: Mark Walton	 	 
	 	 	Title: Assistant Vice President	 	 






Credit Agreement










 



- 83 -




	 	 	 	 	 	 	 
	 	 	ING BANK, N.V., DUBLIN BRANCH	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ Sean Hassett
 

	 	 
	 	 	Name: Sean Hassett	 	 
	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ Alan Duffy	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Alan Duffy	 	 
	 	 	Title: Director	 	 






Credit Agreement










 



- 84 -




	 	 	 	 	 	 	 
	 	 	THE NORTHERN TRUST COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ David C. Fisher
 

	 	 
	 	 	Name: David C. Fisher	 	 
	 	 	Title: Vice President	 	 






Credit Agreement










 



- 85 -




	 	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ Scott DeTraglia
 

	 	 
	 	 	Name: Scott DeTraglia	 	 
	 	 	Title: Asst. Vice President	 	 






Credit Agreement










 



- 86 -




	 	 	 	 	 	 	 
	 	 	NATIONAL AUSTRALIA BANK	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ Scott Tuhy
 

	 	 
	 	 	Name: Scott Tuhy	 	 
	 	 	Title: Director	 	 






Credit Agreement










 



- 87 -




	 	 	 	 	 	 	 
	 	 	U.S. BANK, N.A.	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ James N. DeVries
 

	 	 
	 	 	Name: James N. DeVries	 	 
	 	 	Title: Senior Vice President	 	 






Credit Agreement