Document:

Exhibit
10.2

[EXECUTION COPY]

 

CREDIT AGREEMENT

Dated as of June 19, 2007

among

WHITE
MOUNTAINS INSURANCE GROUP, LTD.,

as the Borrower,

BANK OF
AMERICA, N.A.,

as Administrative
Agent, Swing Line Lender and

Issuing Lender,

and

THE OTHER LENDERS PARTY HERETO

LEHMAN
BROTHERS INC.,

as Syndication Agent

and

JPMORGAN CHASE BANK, N.A.,

THE BANK OF NEW YORK,

THE BANK OF TOKYO-MITSUBISHI UFJ.
LTD., NEW YORK BRANCH,

and

DEUTSCHE
BANK AG NEW YORK BRANCH

as Co-Documentation Agents

and 

BANC OF AMERICA SECURITIES LLC,

and

LEHMAN
BROTHERS INC.

as Joint Lead Arrangers and Joint Book Runners

 

TABLE OF CONTENTS

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  1.

  	
  DEFINITIONS

  	
  1

  
	
   

  	
   

  	
   

  
	
   

  	
  1.1.

  	
  Defined Terms

  	
  1

  
	
   

  	
  1.2.

  	
  Other Definitional Provisions

  	
  24

  
	
   

  	
  1.3.

  	
  Letter of Credit Amounts

  	
  25

  
	
   

  	
  1.4.

  	
  Rounding

  	
  25

  
	
   

  	
  1.5.

  	
  Times of Day

  	
  25

  
	
   

  	
   

  	
   

  
	
  2.

  	
  AMOUNT AND TERMS OF COMMITMENTS

  	
  25

  
	
   

  	
   

  	
   

  
	
   

  	
  2.1.

  	
  Revolving Credit Commitments

  	
  25

  
	
   

  	
  2.2.

  	
  Procedure for Revolving Credit Borrowing

  	
  26

  
	
   

  	
  2.3.

  	
  Swing Line Commitment

  	
  27

  
	
   

  	
  2.4.

  	
  Procedure for Swing Line Borrowing; Refunding of
  Swing Line Loans

  	
  27

  
	
   

  	
  2.5.

  	
  Repayment of Loans; Evidence of Debt

  	
  29

  
	
   

  	
  2.6.

  	
  Facility Fee, etc

  	
  30

  
	
   

  	
  2.7.

  	
  Termination or Reduction of Revolving Credit
  Commitments

  	
  31

  
	
   

  	
  2.8.

  	
  Prepayments

  	
  31

  
	
   

  	
  2.9.

  	
  Conversion and Continuation Options

  	
  32

  
	
   

  	
  2.10.

  	
  Maximum Number of Eurodollar Loans

  	
  33

  
	
   

  	
  2.11.

  	
  Interest Rates and Payment Dates

  	
  33

  
	
   

  	
  2.12.

  	
  Computation of Interest and Fees

  	
  33

  
	
   

  	
  2.13.

  	
  Inability to Determine Interest Rate

  	
  34

  
	
   

  	
  2.14.

  	
  Pro Rata Treatment and Payments

  	
  34

  
	
   

  	
  2.15.

  	
  Requirements of Law

  	
  36

  
	
   

  	
  2.16.

  	
  Taxes

  	
  38

  
	
   

  	
  2.17.

  	
  Compensation for Losses

  	
  39

  
	
   

  	
  2.18.

  	
  Illegality

  	
  40

  
	
   

  	
  2.19.

  	
  Change of Office

  	
  40

  
	
   

  	
  2.20.

  	
  Replacement of Lenders under Certain Circumstances

  	
  40

  
	
   

  	
  2.21.

  	
  Guaranty of Payment and Performance

  	
  41

  
	
   

  	
  2.22.

  	
  Increase in Commitments

  	
  41

  
	
   

  	
   

  	
   

  
	
  3.

  	
  LETTERS OF CREDIT

  	
  42

  
	
   

  	
   

  	
   

  
	
   

  	
  3.1.

  	
  L/C Commitment

  	
  42

  
	
   

  	
  3.2.

  	
  Procedure for Issuance and Amendment of Letter of
  Credit

  	
  42

  
	
   

  	
  3.3.

  	
  Drawings and Reimbursements; Funding of
  Participations

  	
  43

  
	
   

  	
  3.4.

  	
  Repayment of Participations

  	
  45

  
	
   

  	
  3.5.

  	
  Obligations Absolute

  	
  46

  
	
   

  	
  3.6.

  	
  Role of Issuing Lender

  	
  46

  

 

 i
 

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  

  	
  3.7.

  	
  Cash Collateral

  	
  47

  
	
   

  	
  3.8.

  	
  Applicability of ISP98 and UCP

  	
  47

  
	
   

  	
  3.9.

  	
  Fees and Other Charges

  	
  47

  
	
   

  	
  3.10.

  	
  Conflict with Issuer Documents

  	
  48

  
	
   

  	
   

  	
   

  
	
  4.

  	
  CONDITIONS PRECEDENT

  	
  48

  
	
   

  	
   

  	
   

  
	
   

  	
  4.1.

  	
  Conditions to Closing

  	
  48

  
	
   

  	
  4.2.

  	
  Conditions to Closing and Each Extension of Credit

  	
  49

  
	
   

  	
   

  	
   

  
	
  5.

  	
  REPRESENTATIONS AND WARRANTIES

  	
  50

  
	
   

  	
   

  	
   

  
	
   

  	
  5.1.

  	
  Financial Statements

  	
  50

  
	
   

  	
  5.2.

  	
  Corporate Existence; Compliance with Law

  	
  51

  
	
   

  	
  5.3.

  	
  Corporate Power; Authorization; Enforceable
  Obligations

  	
  51

  
	
   

  	
  5.4.

  	
  No Legal Bar

  	
  51

  
	
   

  	
  5.5.

  	
  No Material Litigation

  	
  51

  
	
   

  	
  5.6.

  	
  Ownership of Property; Liens

  	
  52

  
	
   

  	
  5.7.

  	
  Intellectual Property

  	
  52

  
	
   

  	
  5.8.

  	
  Taxes

  	
  52

  
	
   

  	
  5.9.

  	
  Federal Regulations

  	
  52

  
	
   

  	
  5.10.

  	
  ERISA

  	
  52

  
	
   

  	
  5.11.

  	
  Investment Company Act; Other Regulations

  	
  53

  
	
   

  	
  5.12.

  	
  Use of Proceeds

  	
  53

  
	
   

  	
  5.13.

  	
  Accuracy of Information, etc

  	
  53

  
	
   

  	
  5.14.

  	
  Insurance Regulatory Matters

  	
  53

  
	
   

  	
  5.15.

  	
  Indebtedness and Liens

  	
  53

  
	
   

  	
  5.16.

  	
  Taxpayer Identification Number

  	
  54

  
	
   

  	
   

  	
   

  
	
  6.

  	
  AFFIRMATIVE COVENANTS

  	
  54

  
	
   

  	
   

  	
   

  
	
   

  	
  6.1.

  	
  Financial Statements

  	
  54

  
	
   

  	
  6.2.

  	
  Certificates; Other Information

  	
  57

  
	
   

  	
  6.3.

  	
  Payment of Obligations

  	
  58

  
	
   

  	
  6.4.

  	
  Conduct of Business and Maintenance of Existence,
  etc

  	
  58

  
	
   

  	
  6.5.

  	
  Maintenance of Property; Insurance

  	
  58

  
	
   

  	
  6.6.

  	
  Inspection of Property; Books and Records;
  Discussions

  	
  58

  
	
   

  	
  6.7.

  	
  Notices

  	
  59

  
	
   

  	
  6.8.

  	
  Taxes

  	
  60

  
	
   

  	
  6.9.

  	
  Use of Proceeds

  	
  60

  
	
   

  	
  6.10.

  	
  Further Assurances

  	
  60

  
	
   

  	
   

  	
   

  
	
  7.

  	
  NEGATIVE COVENANTS

  	
  60

  
	
   

  	
   

  	
   

  
	
   

  	
  7.1.

  	
  Financial Condition Covenants

  	
  60

  

 

 ii
 

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  

  	
  7.2.

  	
  Limitation on Indebtedness

  	
  61

  
	
   

  	
  7.3.

  	
  Limitation on Liens

  	
  62

  
	
   

  	
  7.4.

  	
  Limitation on Changes in Fiscal Periods

  	
  63

  
	
   

  	
  7.5.

  	
  Limitation on Lines of Business

  	
  63

  
	
   

  	
  7.6.

  	
  Guarantors

  	
  63

  
	
   

  	
   

  	
   

  
	
  8.

  	
  EVENTS OF DEFAULT

  	
  63

  
	
   

  	
   

  	
   

  
	
   

  	
  8.1.

  	
  Events of Default

  	
  63

  
	
   

  	
  8.2.

  	
  Remedies Upon Event of Default

  	
  66

  
	
   

  	
   

  	
   

  
	
  9.

  	
  THE ADMINISTRATIVE AGENT

  	
  66

  
	
   

  	
   

  	
   

  
	
   

  	
  9.1.

  	
  Appointment

  	
  66

  
	
   

  	
  9.2.

  	
  Delegation of Duties

  	
  67

  
	
   

  	
  9.3.

  	
  Liability of Administrative Agent

  	
  67

  
	
   

  	
  9.4.

  	
  Reliance by Administrative Agent

  	
  68

  
	
   

  	
  9.5.

  	
  Notice of Default

  	
  68

  
	
   

  	
  9.6.

  	
  Credit Decision; Disclosure of Information by
  Administrative Agent

  	
  68

  
	
   

  	
  9.7.

  	
  Indemnification of Administrative Agent

  	
  69

  
	
   

  	
  9.8.

  	
  Administrative Agent in its Individual Capacity

  	
  69

  
	
   

  	
  9.9.

  	
  Successor Administrative Agent

  	
  70

  
	
   

  	
  9.10.

  	
  Administrative Agent May File Proofs of Claim

  	
  71

  
	
   

  	
  9.11.

  	
  Guarantee and Collateral Matters

  	
  71

  
	
   

  	
  9.12.

  	
  Other Agents; Arrangers and Managers

  	
  72

  
	
   

  	
   

  	
   

  
	
  10.

  	
  MISCELLANEOUS

  	
  72

  
	
   

  	
   

  	
   

  
	
   

  	
  10.1.

  	
  Amendments, Etc

  	
  72

  
	
   

  	
  10.2.

  	
  Notices; Effectiveness; Electronic Communication

  	
  74

  
	
   

  	
  10.3.

  	
  No Waiver; Cumulative Remedies

  	
  76

  
	
   

  	
  10.4.

  	
  Survival of Representations and Warranties

  	
  76

  
	
   

  	
  10.5.

  	
  Attorney Costs and Expenses

  	
  76

  
	
   

  	
  10.6.

  	
  Indemnification

  	
  77

  
	
   

  	
  10.7.

  	
  Successors and Assigns

  	
  78

  
	
   

  	
  10.8.

  	
  Adjustments; Set-off

  	
  83

  
	
   

  	
  10.9.

  	
  Counterparts

  	
  84

  
	
   

  	
  10.10.

  	
  Severability

  	
  84

  
	
   

  	
  10.11.

  	
  Integration

  	
  84

  
	
   

  	
  10.12.

  	
  GOVERNING LAW

  	
  85

  
	
   

  	
  10.13.

  	
  SUBMISSION TO JURISDICTION; WAIVERS

  	
  85

  
	
   

  	
  10.14.

  	
  WAIVERS OF JURY TRIAL

  	
  85

  
	
   

  	
  10.15.

  	
  No Advisory or Fiduciary Responsibility

  	
  86

  
	
   

  	
  10.16.

  	
  Confidentiality

  	
  86

  

 

 iii
 

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  

  	
  10.17.

  	
  Release of Guarantee Obligations

  	
  87

  
	
   

  	
  10.18.

  	
  Accounting Changes

  	
  88

  
	
   

  	
  10.19.

  	
  USA PATRIOT Act Notice

  	
  88

  
	
   

  	
  10.20.

  	
  Interest Rate Limitation

  	
  89

  

 

 iv
 

 

	
  SCHEDULES:

  	
   

  
	
   

  	
   

  
	
  1

  	
  Commitment Schedule

  
	
  1A

  	
  Existing Letters of Credit

  
	
  5.3

  	
  Consents, Authorizations, Filings and Notices

  
	
  10.2

  	
  Notice Addresses

  
	
   

  	
   

  
	
  EXHIBITS:

  	
   

  
	
   

  	
   

  
	
  A

  	
  Form of Compliance Certificate

  
	
  B-1

  	
  Form of Borrowing Request

  
	
  B-2

  	
  Form of Swing Line Loan Notice

  
	
  C-1

  	
  Form of Revolving Credit Note

  
	
  C-2

  	
  Form of Swing Line Note

  
	
  D

  	
  Form of Exemption Certificate

  
	
  E

  	
  Form of Closing Certificate

  
	
  F

  	
  Form of Legal Opinion of Robert Seelig, Esq.

  
	
  G

  	
  Form of Legal Opinion of Conyers Dill & Pearman

  
	
  H

  	
  Form of Assignment and Assumption

  
	
  I

  	
  Form of Instrument of Accession

  
	
  J

  	
  Form of Guaranty

  

 

 v

CREDIT
AGREEMENT

This CREDIT AGREEMENT, dated as of June 19,
2007, among (i) WHITE MOUNTAINS INSURANCE
GROUP, LTD., a company existing under the laws of Bermuda (the “Borrower”),
(ii) each lender from time to time party hereto (collectively, the “Lenders”),
(iii) BANK OF AMERICA, N.A., as
Administrative Agent, Swing Line Lender and the Issuing Lender and (iv) LEHMAN BROTHERS INC., as Syndication
Agent.  

PRELIMINARY STATEMENTS

The Borrower has
requested that the Lenders provide a revolving credit facility, and the Lenders
are willing to do so on the terms and conditions set forth herein.

In consideration of the
mutual covenants and agreements herein contained, the parties hereto covenant
and agree as follows:

1.             DEFINITIONS

1.1.  Defined
Terms.  As used in this Agreement,
the terms listed in this Section  1.1 shall have the respective
meanings set forth in this Section 1.1.

“Act of 1934”
means the Securities Exchange Act of 1934 and the regulations issued
thereunder.

“Administrative
Agent” means Bank of America, N.A., in its capacity as administrative agent
under any of the Loan Documents, or any successor administrative agent
appointed in accordance with Section 9.9.

“Administrative
Agent’s Office” means the Administrative Agent’s address and, as
appropriate, account as set forth on Schedule 10.2, or such other
address or account as the Administrative Agent may from time to time notify the
Borrower and the Lenders.

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

“Affiliate”
means, as to any Person, any other Person that, directly or indirectly, is in
control of, is controlled by, or is under common control with, such
Person.  For purposes of this definition,
“control” of a Person means the power, directly or indirectly, either to (a)
vote 10% or more of the securities having ordinary voting power for the
election of directors (or persons performing similar functions) of such Person
or (b) direct or cause the direction of the management and policies of such
Person, whether by contract or otherwise.

“Agent Fee
Letter” means that certain letter agreement dated as of April 16, 2007 by
and between the Borrower, the Administrative Agent and Banc of America
Securities LLC.

“Agent-Related
Persons” means the Administrative Agent, together with its Affiliates
(including, Bank of America, N.A. in its capacity as the Administrative Agent
and Banc of America Securities LLC in its capacity as one of the Arrangers),
and the officers, directors, employees, agents and attorneys-in-fact of such
Persons and Affiliates.

“Agreement”
means this Credit Agreement, as amended, restated, extended, supplemented or
otherwise modified from time to time.

“Annual
Statement” means the annual statutory financial statement of any Insurance
Subsidiary required to be filed with the Department of its jurisdiction of
incorporation or organization, which statement shall be in the form required by
such Insurance Subsidiary’s jurisdiction of incorporation or organization or,
if no specific form is so required, in the form of financial statements
permitted by such Department to be used for filing annual statutory financial
statements and shall contain the type of information permitted or required by
such Department to be disclosed therein, together with all exhibits or
schedules filed therewith.

“Applicable
Margin” means the applicable percentage per annum set forth below
corresponding to the Total Consolidated Debt to Total Consolidated
Capitalization Ratio as of the most recent fiscal quarter of the Borrower for
which a Compliance Certificate has been or is required to have been delivered
pursuant to Section 6.2(b):

	
  Pricing

  Level

  	
   

  	
  Total Consolidated Debt to Total

  Consolidated Capitalization Ratio

  	
   

  	
  Applicable Margin

  	
   

  
	
  I

  	
   

  	
  £ 10.0%

  	
   

  	
  0.320

  	
  %

  
	
  II

  	
   

  	
  >
  10.0% £ 15.0%

  	
   

  	
  0.400

  	
  %

  
	
  III

  	
   

  	
  >
  15.0% £ 22.5%

  	
   

  	
  0.525

  	
  %

  
	
  IV

  	
   

  	
  >
  22.5% < 30.0%

  	
   

  	
  0.675

  	
  %

  
	
  V

  	
   

  	
  3
  30.0%

  	
   

  	
  0.875

  	
  %

  

 

The Applicable Margin in effect from the Closing Date
through the first Business Day immediately following the date the first
Compliance Certificate is delivered to the Administrative Agent pursuant to Section
6.2(b), shall be the Applicable Margin set forth in pricing level III.  Any increase or decrease in the Applicable
Margin resulting from a change in the Total Consolidated Debt to Total
Consolidated Capitalization Ratio, as set forth on a Compliance Certificate
delivered pursuant to Section 6.2(b), shall become effective as of the
first Business Day immediately following delivery of such Compliance
Certificate; provided, however, that if a Compliance Certificate
is not delivered when due in accordance with Section 6.2(b), then the
level V Applicable Margin shall apply as of the first Business Day after the
date on which such Compliance Certificate was required to have been delivered
until the first Business Day after the date on which such Compliance
Certificate is delivered.

 2
 

“Application”
means an application and agreement for the issuance or amendment of a Letter of
Credit in the form from time to time used by the Issuing Lender, which shall
not be inconsistent with this Agreement or impose additional obligations on the
Borrower.

“Approved Fund”
means any Fund 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.

“Arranger Fee
Letter” means that certain letter agreement dated as of April 16, 2007 by
and among the Borrower, the Arrangers and LBB.

“Arrangers”
means Banc of America Securities LLC and Lehman Brothers Inc., in their
respective capacities as joint lead arrangers and joint book runners.

“Assignee Group”
means two or more Eligible Assignees that are Affiliates of one another or two
or more Approved Funds managed by the same investment advisor.

“Assignment and
Assumption” means an assignment and assumption entered into by a Lender and
an Eligible Assignee (with the consent of any party whose consent is required
by Section 10.7(b), and accepted by the Administrative Agent,
substantially in the form of Exhibit H or any other form approved by the
Administrative Agent.

“Attorney Costs”
means and includes all reasonable fees, expenses and disbursements of any law
firm or other external counsel.

“Available
Revolving Credit Commitment” means, with respect to any Lender at any time,
an amount equal to the excess, if any, of (a) such Lender’s Revolving Credit
Commitment then in effect over (b) such Lender’s Revolving Extensions of
Credit then outstanding.

“Base Rate”
means, for any day, a fluctuating rate per annum equal to the higher of (a) the
Federal Funds Rate plus 1/2 of 1% and (b) the rate of interest in effect for
such day as publicly announced from time to time by Bank of America, N.A. as
its “prime rate.”  The “prime rate” is a
rate set by Bank of America, N.A. based upon various factors including Bank of
America, N.A.’s costs and desired return, general economic conditions and other
factors, and is used as a reference point for pricing some loans, which may be
priced at, above, or below such announced rate. 
Any change in such rate announced by Bank of America, N.A. shall take
effect at the opening of business on the day specified in the public
announcement of such change.

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

“Benefited
Lender” has the meaning specified in Section 10.8.

 3
 

“Berkshire
Hathaway” means, Berkshire Hathaway Inc., or an Affiliate thereof.

“Berkshire
Preferred Stock” means the $300,000,000 aggregate liquidation preference
amount of non-voting preferred stock issued by Fund American to Berkshire
Hathaway pursuant to the Certificate of Designation of Series A Preferred Stock
of TACK Acquisition Corp. (n/k/a Fund American) as amended, supplemented or
otherwise modified from time to time.

“Board” means
the Board of Governors of the Federal Reserve System of the United States (or
any successor).

“Borrower
Materials” has the meaning specified in Section 6.2(e).

“Borrower”
has the meaning specified in the preamble hereto.

“Borrowing Date”
means any Business Day specified by the Borrower as a date on which the
Borrower requests the relevant Lenders to make Loans hereunder.

“Borrowing
Request” means a notice of (a) a borrowing, (b) a conversion of Loans from
one Type to the other, or (c) a continuation of Eurodollar Loans pursuant to Sections
2.2 or 2.9 which, if in writing, shall be substantially in the form
of Exhibit B-1.

“Business Day”
means (i) with respect to any borrowing, payment or rate selection of
Eurodollar Loans, a day (other than a Saturday or Sunday) on which banks
generally are open in New York City for the conduct of substantially all of
their commercial lending activities, interbank wire transfers can be made on
the Fedwire system and dealings in Dollars are carried on in the London interbank
market and (ii) for all other purposes, a day (other than a Saturday or Sunday)
on which banks generally are open in New York City for the conduct of
substantially all of the commercial lending activities, and interbank wire
transfers can be made on the Fedwire system.

“Capital Lease
Obligations” means, with respect to any Person, the obligations of such
Person to pay rent or other amounts under any lease of (or other arrangement
conveying the right to use) real or personal property, or a combination thereof,
which obligations are required to be classified and accounted for as capital
leases on a balance sheet of such Person under GAAP; and, for the purposes of
this Agreement, the amount of such obligations at any time shall be the
capitalized amount thereof at such time determined in accordance with GAAP.

“Capital and
Surplus” means, as of any date, (a) as to any Insurance Subsidiary
domiciled in the United States, the total surplus as regards to policyholders
(or any successor line item description that contains the same information) as
shown in its Annual Statement or Interim Statement, or an amount determined in
a consistent manner for any date other than one as of which an Annual Statement
or Interim Statement is prepared, (b) as to Sirius, the total solvency capital
(or any successor line item description that contains the same information) as
shown in its Annual Statement or Interim

 4
 

Statement, or an
amount determined in a consistent manner for any date other than one as of
which an Annual Statement or Interim Statement is prepared and (c) as to any
other Insurance Subsidiary, the equivalent amount (determined in good faith by
the Borrower).

“Capital Stock”
means any and all shares, interests, participations or other equivalents
(however designated) of capital stock or share capital of a corporation, any
and all equivalent ownership interests in a Person (other than a corporation)
and any and all warrants, rights or options to purchase any of the foregoing.

“Cash
Collateralize” means to pledge and deposit with or deliver to the
Administrative Agent, for the benefit of the Issuing Lender and the Lenders, as
collateral for the L/C Obligations, cash or deposit account balances pursuant
to documentation in form and substance reasonably satisfactory to the Administrative
Agent and the Issuing Lender (which documents are hereby consented to by the
Lenders).  Derivatives of such term have
corresponding meanings. 

“Change of
Control” means (a) the acquisition of ownership, directly or indirectly,
beneficially or of record, by any Person or group (within the meaning of the
Act of 1934 and the rules of the SEC thereunder as in effect on the date
hereof), other than (i) Berkshire Hathaway, (ii) Franklin Mutual or (iii) John
J. Byrne or any Related Person with respect to John J. Byrne (together with, in
the case of clauses (i), (ii) and (iii), their
Affiliates), of Capital Stock representing more than 30% of the aggregate
ordinary voting power represented by the issued and outstanding Capital Stock
of the Borrower, or (b) the occupation, within a period of two years, of a
majority of the seats (other than vacant seats) on the board of directors of
the Borrower by Persons who were neither (i) nominated by the board of
directors of the Borrower nor (ii) appointed by directors so
nominated.  For the avoidance of doubt,
none of the Capital Stock held by the entities listed in clauses (a)(i),
(a)(ii) and (a)(iii), nor the Capital Stock held by any of their
Affiliates, shall be included as being owned by a Person or group when
determining whether such Person or group has met the 30% threshold set forth in  clause (a).

“Closing
Certificate” means a certificate substantially in the form of Exhibit E.

“Closing Date”
means the first date on which all the conditions precedent in Section 4.1
are satisfied or waived in accordance with Section 10.1.

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

“Commitments”
means, collectively the Revolving Credit Commitments, the Swing Line
Commitment, the L/C Commitment or as the context may require, any such
Commitment.

“Commonly
Controlled Entity” means an entity, whether or not incorporated, that is
under common control with the Borrower within the meaning of Section 4001 (a)
(14) of ERISA or that is treated as a single employer with the Borrower under
Section 414 of the Code.

 5
 

“Compensation
Period” has the meaning specified in Section 2.14(e)(ii).

“Compliance
Certificate” means a certificate duly executed by a Responsible Officer on
behalf of the Borrower substantially in the form of Exhibit A.

“Conditional
Common Equity” means convertible preferred equity issued by the Borrower or
any of its Subsidiaries which will convert to common equity of the Borrower or
any of its Subsidiaries upon shareholder approval (provided that such
shareholder approval is obtained within the period required by the terms
thereof).

“Consolidated
Net Income” means, for any period, the consolidated net income (or loss) of
the Borrower and its consolidated Subsidiaries for such period, determined on a
consolidated basis in accordance with GAAP; provided, however,
that in calculating Consolidated Net Income for any period, there shall be
excluded for purposes of the calculation of Consolidated Net Income (a) the
income (or deficit) of any Person accrued prior to the date it becomes a
Subsidiary of the Borrower or is merged into or consolidated with the Borrower
or any of its Subsidiaries and (b) any effects resulting from the application of FIN 46R.

“Consolidated
Net Worth” means, as at any date, the sum of all amounts that would, in
conformity with GAAP be included on a consolidated balance sheet of the
Borrower and its consolidated Subsidiaries under stockholders’ equity at such
date, plus minority interests in Subsidiaries, as determined in accordance with
GAAP; provided, however, that in calculating Consolidated Net
Worth as at any date, there shall
be excluded for purposes of the calculation of Consolidated Net Worth any
effects resulting from (a) SFAS 115 or (b) the application of FIN 46R.

“Cure Period”
has the meaning specified in Section 7.1(b).

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

“Debt”
means indebtedness for borrowed money.

“Debtor Relief
Laws” the Bankruptcy Code of the United States, and all other liquidation,
conservatorship, bankruptcy, assignment for the benefit of creditors,
moratorium, rearrangement, receivership, insolvency, reorganization, or similar
debtor relief laws of the United States or other applicable jurisdictions,
domestic or foreign, from time to time in effect and affecting the rights of
creditors generally.

“Default”
means any of the events specified in Section 8.1, whether or not
any requirement for the giving of notice, the lapse of time, or both, has been
satisfied.

“Defaulting
Lender” means any Lender that (a) has failed to fund any portion of the
Loans or participations in the L/C Obligations required to be funded by it
hereunder within one Business Day of the date required to be funded by it
hereunder unless such failure has been cured, (b) has otherwise failed to pay
over to the

 6
 

Administrative
Agent or any other Lender any other amount required to be paid by it hereunder
within one Business Day of the date when due unless the subject of a good faith
dispute or unless such failure has been cured or (c) has been deemed insolvent
or become the subject of a bankruptcy or insolvency proceeding.

“Default Rate”
has the meaning specified in Section 2.11(c).

“Department”
means, with respect to any Insurance Subsidiary, the insurance commissioner or
other Governmental Authority of such Insurance Subsidiary’s jurisdiction of
incorporation or organization.

“Dollars”
and “$” means lawful currency of the United States of America.

“Eligible
Assignee” means any Person that meets the requirements to be an assignee
under Section 10.7(b)(iii), (v), (vi), (vii) and (viii)
(subject to such consents, if any, as may be required under Section
10.7(b)(iii)).

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

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

“Eurodollar
Loans” means Loans for which the applicable rate of interest is based upon
the Eurodollar Rate.

“Eurodollar
Rate” means, for any Interest Period with respect to a Eurodollar Loan, the
rate per annum equal to the British Bankers Association LIBOR Rate (“BBA
LIBOR”), as published by Reuters (or other commercially available source
providing quotations of BBA LIBOR as designated by the Administrative Agent
from time to time) at approximately 11:00 A.M., London time, two Business Days
prior to the commencement of such Interest Period, for Dollar deposits (for
delivery on the first day of such Interest Period) with a term equivalent to
such Interest Period.  If such rate is
not available at such time for any reason, then the “Eurodollar Rate” for such
Interest Period shall be the rate per annum determined by the Administrative
Agent to be the rate at which deposits in Dollars for delivery on the first day
of such Interest Period in same day funds in the approximate amount of the
Eurodollar Loan being made, continued or converted by Bank of America, N.A. and
with a term equivalent to such Interest Period would be offered by Bank of
America, N.A.’s London branch to major banks in the London interbank eurodollar
market at their request at approximately 11:00 A.M. (London time) two Business
Days prior to the commencement of such Interest Period. 

 7
 

“Excluded Taxes”
has the meaning specified in Section 2.16(a).

“Existing
Credit Agreement” means that certain Credit Agreement, dated as of November
14, 2006, among the Borrower, White Mountains Re, the several banks and other
financial institutions or entities from time to time parties thereto, Lehman
Brothers Inc., as syndication agent, and Bank of America, N.A., as
administrative agent.

“Existing
Letters of Credit” means those letters of credit set forth on Schedule
1A.

“Event of
Default” means any of the events specified in Section 8.1, provided
that any requirement for the giving of notice, the lapse of time, or both, has
been satisfied.

“Facility Fee
Rate” means the applicable percentage per annum set forth below
corresponding to the Total Consolidated Debt to Total Consolidated
Capitalization Ratio as of the most recent fiscal quarter of the Borrower for
which a Compliance Certificate has been or is required to have been delivered
pursuant to Section 6.2(b):

	
  Pricing

  Level

  	
   

  	
  Total Consolidated Debt to Total

  Consolidated Capitalization Ratio

  	
   

  	
  Facility Fee Rate

  	
   

  
	
  I

  	
   

  	
  £ 10.0%

  	
   

  	
  0.080

  	
  %

  
	
  II

  	
   

  	
  >
  10.0%  £
  15.0%

  	
   

  	
  0.100

  	
  %

  
	
  III

  	
   

  	
  >
  15.0%  £
  22.5%

  	
   

  	
  0.125

  	
  %

  
	
  IV

  	
   

  	
  >
  22.5%  <
  30.0%

  	
   

  	
  0.175

  	
  %

  
	
  V

  	
   

  	
  3
  30.0%

  	
   

  	
  0.225

  	
  %

  

 

The Facility Fee Rate in effect from the Closing Date
through the first Business Day immediately following the date the first
Compliance Certificate is delivered to the Administrative Agent pursuant to Section
6.2(b), shall be the Facility Fee Rate set forth in pricing level III.  Any increase or decrease in the Facility Fee
Rate resulting from a change in the Total Consolidated Debt to Total
Consolidated Capitalization Ratio, as set forth on a Compliance Certificate
delivered pursuant to Section 6.2(b), shall become effective as of the
first Business Day immediately following delivery of such Compliance
Certificate; provided, however, that if a Compliance Certificate
is not delivered when due in accordance with Section 6.2(b), then the
level V Facility Fee Rate shall apply as of the first Business Day after the
date on which such Compliance Certificate was required to have been delivered
until the first Business Day after the date on which such Compliance
Certificate is delivered.

“Federal Funds
Rate” means, for any day, the rate per annum equal to the weighted average
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

 8
 

day; provided
that (a) if such day 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 (b) if no such rate is so
published on such next succeeding Business Day, the Federal Funds Rate for such
day shall be the average rate (rounded upward, if necessary, to a whole
multiple of 1/100 of 1%) charged to Bank of America, N.A. on such day on such
transactions as reasonably determined by the Administrative Agent.

“Fee Letters”
means, collectively, the Agent Fee Letter and the Arranger Fee Letter.

“FIN 46R”
means FASB Interpretation No. 46, “Consolidation of Variable Interest Entities,”
and its revision by the Financial Accounting Standards Board.

“Fitch”
means Fitch, Inc. (or any successor thereto).

“Franklin
Mutual” means any investment fund managed by Franklin Mutual Advisers LLC
(or any successor thereto) or any of its Affiliates.

“Fund”
means any Person (other than a natural person) that is (or will be) engaged in
making, purchasing, holding or otherwise investing in revolving credit
facilities and similar extensions of credit in the ordinary course of its
business.

“Fund American”
means Fund American Companies, Inc., a Delaware corporation.

“Fund American
Enterprises” means Fund American Enterprises Holdings, Inc., a Delaware
corporation.

“Fund American
Notes” means those certain 5.875% Senior Notes issued pursuant to the
Senior Indenture, dated as of May 19, 2003, between the Borrower, Fund American
and Bank One, National Association, as trustee, in the initial aggregate
principal amount of $700,000,000 due May 15, 2013.

“Fund American
Preferred Stock” means collectively, the Berkshire Preferred Stock and the
Zenith Preferred Stock.

“Fundamental
Change” means any of (a) the Borrower consolidating or amalgamating with or
merging into any other Person, (b) the Borrower failing to preserve, renew and
keep, in full force and effect, its corporate existence, (c) the Borrower,
directly or indirectly through one or more of its Subsidiaries, conveying or
transferring the properties and assets of the Borrower and its Subsidiaries
(taken as a whole for the Borrower and its Subsidiaries) substantially as an
entirety (other than to the Borrower or one or more of its Subsidiaries), or
(d) the Borrower liquidating, winding up or dissolving itself, other than, in
the case of clauses (a) through (d), any such transaction or
transactions the sole purpose of which is to change the domicile of the
Borrower (in any such redomiciliation (x) the surviving, amalgamated
or transferee entity shall expressly assume, by an agreement reasonably
satisfactory to the Administrative Agent,

 9
 

the obligations of
the Borrower to be performed or observed hereunder and deliver to the
Administrative Agent such corporate authority documents and legal opinions as
the Administrative Agent shall reasonably request, (y) the surviving, amalgamated or transferee entity shall succeed to, and be
substituted for, and may exercise every right and power of, the Borrower under
this Agreement with the same effect as if such surviving, amalgamated or
transferee entity had been named as the Borrower herein and (z) the surviving, amalgamated or transferee entity shall be organized under
the laws of the United States of America, any state thereof, the District of
Columbia or Bermuda); provided  that a conveyance or transfer of
all or any part of OneBeacon Limited or any of its Subsidiaries shall not
constitute a Fundamental Change.

“GAAP”
means generally accepted accounting principles in the United States of America
as in effect from time to time and set forth in the opinions and pronouncements
of the Accounting Principles Board and the American Institute of Certified
Public Accountants and statements and pronouncements of the Financial
Accounting Standards Board or such other principles as may be approved by a
significant segment of the accounting profession in the United States, except
that for purposes of Section 7.1, GAAP shall be determined on the basis
of such principles in effect on the date hereof.

“Governmental
Authority” means any nation or government, any state or other political
subdivision thereof whether state or local and any entity exercising executive,
legislative, judicial, regulatory or administrative functions of or pertaining
to government, and any corporation or other entity owned or controlled, through
stock or capital ownership or otherwise, by any of the foregoing, including any
board of insurance, insurance department or insurance commissioner.

“Granting
Lender” has the meaning specified in Section 10.7(h).

“Guarantee
Obligation” means as to any Person (the “guaranteeing person”), any
obligation of (a) the guaranteeing person or (b) another Person (including,
without limitation, any bank under any letter of credit) to induce the creation
of which the guaranteeing person has issued a reimbursement, counterindemnity
or similar obligation, in either case guaranteeing or in effect guaranteeing
any Indebtedness, leases, dividends or other obligations (the “primary obligations”)
of any other third Person (the “primary obligor”) in any manner, whether
directly or indirectly, including, without limitation, any obligation of the
guaranteeing person, whether or not contingent, (i) to purchase any such
primary obligation or any Property constituting direct or indirect security
therefor, (ii) to advance or supply funds (1) for the purchase or payment of
any such primary obligation or (2) to maintain working capital or equity
capital of the primary obligor or otherwise to maintain the net worth or
solvency of the primary obligor, (iii) to purchase Property, securities or
services primarily for the purpose of assuring the owner of any such primary
obligation of the ability of the primary obligor to make payment of such
primary obligation or (iv) otherwise to assure or hold harmless the owner of
any such primary obligation against loss in respect thereof; provided, however,
that the term Guarantee Obligation shall not include endorsements of
instruments for deposit or collection in the ordinary course of business.  The amount of any Guarantee Obligation of any

 10
 

guaranteeing
person shall be deemed to be the lower of (a) an amount equal to the stated or
determinable amount of the primary obligation in respect of which such
Guarantee Obligation is made and (b) the maximum amount for which such
guaranteeing person may be liable pursuant to the terms of the instrument
embodying such Guarantee Obligation, unless such primary obligation and the
maximum amount for which such guaranteeing person may be liable are not stated
or determinable, in which case the amount of such Guarantee Obligation shall be
such guaranteeing person’s maximum reasonably anticipated liability in respect
thereof as determined by the Borrower in good faith.

“Guarantors”
means each Initial Guarantor and any other Subsidiary of the Borrower that is
or becomes a party to the Guaranty at the election of the Borrower (each, an “Additional
Guarantor”), in each case unless and until such Person is released from
such Guaranty pursuant to Section 10.17.

“Guaranty”
means that certain Guaranty, substantially in the form of Exhibit J, dated as
of the date hereof by the Initial Guarantors in favor of the Administrative
Agent and the Lenders, as amended, restated, extended, supplemented or
otherwise modified from time to time.

“Hazardous
Materials” means all explosive or radioactive substances or wastes,
hazardous or toxic substances or wastes, pollutants, solid, liquid or gaseous
wastes, including petroleum or petroleum distillates, asbestos or asbestos
containing materials, polychlorinated biphenyls (“PCBs”) or
PCB-containing materials or equipment, radon gas, infectious or medical wastes
and all other substances or wastes of any nature regulated pursuant to any
environmental law.

“Hedge
Agreements” means all interest rate swaps, caps or collar agreements or
similar arrangements entered into by the Borrower or its Subsidiaries providing
for protection against fluctuations in interest rates or currency exchange
rates or otherwise providing for the exchange of nominal interest obligations,
either generally or under specific contingencies.

“Increase
Effective Date” has the meaning specified in Section 2.22(b).

“Indebtedness”
means, as to any Person at any date, without duplication, all of the following,
whether or not included as Indebtedness or liabilities in accordance with GAAP
(a) all Debt of such Person, (b) all obligations of such Person for the
deferred purchase price of Property or services (other than trade payables
incurred in the ordinary course of such Person’s business), (c) all obligations
of such Person evidenced by notes, bonds, debentures or other similar
instruments, (d) all indebtedness created or arising under any conditional sale
or other title retention agreement with respect to Property acquired by such
Person (even though the rights and remedies of the seller or lender under such
agreement in the event of default are limited to repossession or sale of such
Property), (e) all Capital Lease Obligations of such Person, (f) all
obligations of such Person, contingent or otherwise, as an account party or
applicant under acceptance, letter of credit, bank guarantees, surety bonds or
similar facilities, (g) all obligations of such

 11
 

Person, contingent
or otherwise, to purchase, redeem, retire, defease or otherwise acquire for
value any Capital Stock of such Person, (h) all Guarantee Obligations of such
Person in respect of any of the foregoing, (i) all obligations of the kind
referred to in clauses (a) through (h) above secured by (or for
which the holder of such obligation has an existing right, contingent or
otherwise, to be secured by) any Lien on Property (including, without
limitation, accounts and contract rights) owned by such Person, whether or not
such Person has assumed or become liable for the payment of such obligation and
(j) for the purposes of Section 8.1(h) only, all obligations of such
Person in respect of Hedge Agreements entered
into in the ordinary course of business and not for speculative purposes.  For the avoidance of doubt, Indebtedness
shall not include any obligations (including Guarantee Obligations) in respect
of the Fund American Preferred Stock, provided,  that,
arrangements reasonably satisfactory to the Administrative Agent shall have
been made for the establishment of grantor trusts to provide for the payment or
redemption of the Fund American Preferred Stock, it being understood that such
arrangements in effect on the Closing Date are reasonably satisfactory to the
Administrative Agent.

“Indemnified Liabilities”
has the meaning specified in Section 10.6.

“Indemnitees”
has the meaning specified in Section 10.6.

“Initial
Guarantors” means White Mountains Holdings Bermuda Ltd., a company
organized under the laws of Bermuda, Lone Tree Insurance Group Ltd., a company
organized under the laws of Bermuda, and Lone Tree Holdings Ltd., a company
organized under the laws of Bermuda.

“Insolvency”
means with respect to any Multiemployer Plan, the condition that such Plan is
insolvent within the meaning of Section 4245 of ERISA.

“Insolvent”
means pertaining to a condition of Insolvency.

“Instrument of
Accession” has the meaning specified in Section 2.22.

“Insurance
Regulations” means any Law, directive or order applicable to an insurance
company.

“Insurance
Regulator” means any Person charged with the administration, oversight or
enforcement of any Insurance Regulation.

“Insurance
Subsidiary” means any Subsidiary which is required to be licensed by any
Department as an insurer or reinsurer and each direct or indirect Subsidiary of
such Subsidiary.

“Intellectual
Property” means the collective reference to all rights, priorities and
privileges relating to intellectual property, arising under Laws, including,
without limitation, copyrights, copyright licenses, patents, patent licenses,
trademarks, trademark licenses, technology, know-how and processes, and all
rights to sue at law or

 12
 

in equity for any
infringement or other impairment thereof, including the right to receive all
proceeds and damages therefrom.

“Interest Payment
Date” means (a) as to any Base Rate Loan, the first Business Day of each of
January, April, July and October and the last day of the Revolving Credit
Commitment Period, (b) as to any Eurodollar Loan, the last day of each Interest
Period applicable to such Loan and the last day of the Revolving Credit
Commitment Period; provided, however, that if any Interest Period
for a Eurodollar Loan exceeds three months, the respective dates that fall
every three months after the beginning of such Interest Period shall also be
Interest Payment Dates, and (c) as to any Loan (other than a Base Rate Loan),
the date of any repayment or prepayment made in respect thereof.

“Interest
Period” means, as to any Eurodollar Loan, (a) initially, the period
commencing on the borrowing or conversion date, as the case may be, with
respect to such Eurodollar Loan and ending one, two, three or six months (or,
unless unavailable to any Lender, nine or twelve months) thereafter, as
selected by the Borrower in its notice of borrowing or notice of conversion, as
the case may be, given with respect thereto; and (b) thereafter, each period
commencing on the last day of the next preceding Interest Period applicable to
such Eurodollar Loan and ending one, two, three or six months (or, unless unavailable
to any Lender, nine or twelve months) thereafter, as selected by the Borrower
by irrevocable notice to the Administrative Agent not less than three Business
Days prior to the last day of the then current Interest Period with respect
thereto; provided that, all of the foregoing provisions relating to
Interest Periods are subject to the following:

(i) if any Interest Period would otherwise end on
a day that is not a Business Day, such Interest Period shall be extended to the
next succeeding Business Day unless the result of such extension would be to
carry such Interest Period into another calendar month in which event such
Interest Period shall end on the immediately preceding Business Day;

(ii) any Interest Period in respect of the Loans
that would otherwise extend beyond the Revolving Credit Termination Date shall
end on the Revolving Credit Termination Date, and

(iii) any Interest Period that begins on the last
Business Day of a calendar month (or on a day for which there is no numerically
corresponding day in the calendar month at the end of such Interest Period)
shall end on the last Business Day of the calendar month at the end of such
Interest Period.

“Interim
Statement” means any interim statutory financial statement or financial
report (whether quarterly, semiannually or otherwise) of any Insurance
Subsidiary required to be filed with the Department of its jurisdiction of
incorporation or organization, which statement or report shall be in the form
required by such Insurance Subsidiary’s jurisdiction of incorporation or
organization or, if no specific form is so required, in the form of financial
statements or financial reports permitted by such Department to be used for
filing interim statutory financial statements or financial reports

 13
 

and shall contain
the type of information permitted or required by such Department to be
disclosed therein, together with all exhibits or schedules filed therewith.

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

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

“Issuing Lender”
means Bank of America, N.A. and any other Lender from time to time designated
by the Borrower as an Issuing Lender, with the consent of such Lender and the
Administrative Agent.

“Laws”
means any law, treaty, rule, regulation or order of an arbitrator or a court or
other Governmental Authority.

“LBB” means
Lehman Brothers Bank, FSB.

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

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

“L/C Commitment”
means $100,000,000, as the same may be reduced from time to time pursuant to Section
2.7.

“L/C Credit
Extension” means, with respect to any Letter of Credit, the issuance
thereof or extension of the expiry date thereof or the increase of the amount
thereof.

“L/C Fee
Payment Date” means the first Business Day of each of January, April, July
and October and the last day of the Revolving Credit Commitment Period.

“L/C
Obligations” means, at any time, an amount equal to the sum of (a) the
aggregate amount available to be drawn under all outstanding Letters of Credit
and (b) the aggregate amount of drawings under Letters of Credit that have not
then been reimbursed pursuant to Section 3.3.  For purposes of computing the amount
available to be drawn under any Letter of Credit, the amount of such Letter of
Credit shall be determined in accordance with Section 1.3.  For all purposes of this Agreement, if on any
date of determination a Letter of Credit has expired by its terms but any
amount may still be drawn thereunder by reason of the operation of Rule 3.14 of
the ISP, such Letter of

 14
 

Credit shall be
deemed to be “outstanding” in the amount so remaining available to be drawn.

“L/C
Participants” means, with respect to any Letter of Credit, the collective
reference to all of the Lenders, other than the Issuing Lender that issued such
Letter of Credit.

“Lenders”
has the meaning specified in the preamble hereto.

“Letters of
Credit” means any letters of credit issued hereunder and shall include the
Existing Letters of Credit.

“License”
means any license, certificate of authority, permit or other authorization
which is required to be obtained from any Governmental Authority in connection
with the operation, ownership or transaction of insurance or reinsurance
business.

“Lien”
means any mortgage, pledge, security interest, encumbrance, charge or security
interest of any kind.

“Loan” means
any loan made by any Lender to the Borrower pursuant to this Agreement,
including any Revolving Credit Loan and any Swing Line Loan made by the Swing
Line Lender.

“Loan Documents”
means this Agreement, the Applications, the Guaranty, the Notes and any
Instrument of Accession executed hereunder pursuant to Section 2.22.

“Majority
Lenders” means the holders of more than 50% of the Total Revolving
Extensions of Credit (or, if no such Revolving Extensions of Credit are
outstanding, prior to any termination of the Revolving Credit Commitments, the
holders of more than 50% of the Total Revolving Credit Commitments).  The Revolving Credit Commitment in effect
(or, when applicable, Revolving Extensions of Credit outstanding) of any
Defaulting Lender shall be excluded for purposes of any vote of Majority
Lenders.

“Mandatory Convertible Securities” means equity securities or
subordinated debt securities (which subordinated debt securities, if issued by
the Borrower, will include subordination to the obligations of the Borrower
hereunder), issued by the Borrower or one of its Subsidiaries which (i) are not
(w) Mandatory Redeemable Securities (other than Qualified Securities) or (x)
Conditional Common Equity and (ii) provide, pursuant to the terms thereof, that
the issuer of such securities (or an affiliate of such issuer) may cause
(without the payment of additional cash consideration by the issuer thereof)
the conversion or exchange of, or has agreed to convert or exchange, such
securities to or for equity securities of the Borrower or one of its
Subsidiaries upon the occurrence of a certain date or of certain events.  A Mandatory Convertible Security that is also
a Qualified Security shall be treated as a Mandatory Convertible Security.

 15

“Mandatory
Redeemable Securities” means debt or equity securities (other than
Conditional Common Equity, so long as such Conditional Common Equity may not be
required, by the holder thereof, to be repurchased or redeemed during the
period provided for shareholder approval of conversion pursuant to the terms of
such Conditional Common Equity) issued by the Borrower or one of its
Subsidiaries which either (i) are subordinated debt securities (which
subordinated debt securities, if issued by the Borrower, will include
subordination to the obligations of the Borrower hereunder), or (ii) provide,
pursuant to the terms thereof, that such securities must be repurchased or
redeemed, or the holder of such securities may require the issuer of such
securities to repurchase or redeem such securities, upon the occurrence of a
certain date or of certain events.

“Material
Adverse Effect” means a material adverse effect on (a) the business,
assets, property or financial condition of the Borrower and its Subsidiaries
taken as a whole, or (b) the validity or enforceability of this Agreement or
any of the other Loan Documents or the rights and remedies of the
Administrative Agent and the Lenders hereunder or thereunder.

“Material
Insurance Subsidiary” means any Insurance
Subsidiary (whether existing on or  acquired
or formed after the Closing Date) having
Capital and Surplus equal to 10% or more of the Consolidated Net Worth
of the Borrower as of the most recent Annual Statement or Interim Statement of
such Insurance Subsidiary.

“Maximum Rate” has the meaning specified in Section 10.20(a).

“Moody’s”
means Moody’s Investors Service, Inc. (or any successor thereto).

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

“NAIC”
means the National Association of Insurance Commissioners or any successor
thereto, or in the absence of the National Association of Insurance
Commissioners or such successor, any other association, agency or other
organization performing advisory, coordination or other like functions among
insurance departments, insurance commissioners and similar Governmental
Authorities of the various states of the United States towards the promotion of
uniformity in the practices of such Governmental Authorities.

“Non-Excluded
Taxes” has the meaning specified in Section 2.16(a).

“Non-Regulated
Operating Subsidiary” means each Subsidiary of the Borrower engaged
directly (as opposed to indirectly through the ownership of Capital Stock of a
Person engaged in a Principal Business) in a Principal Business, whether now
owned or hereafter acquired, which is not an Insurance Subsidiary.

“Non-U.S.
Lender” has the meaning specified in Section 2.16(d).

 16
 

“Note”
means any promissory note, including any revolving credit note or swing line note,
made by the Borrower in favor of a Lender evidencing any Loan, substantially in
the forms of Exhibit C-1 and C-2, as the case may be and as any
such Note may be amended, restated, supplemented, modified or replaced from
time to time.

“OneBeacon
Insurance Group” means OneBeacon Insurance Group, LLC, a Delaware limited
liability company, and, for purposes of Section 6.1(b), the grouping of
Subsidiaries of OneBeacon Insurance Group identified by NAIC Group Code 1129
(or any successor grouping equivalent thereto).

“OneBeacon
Limited” means OneBeacon Insurance Group, Ltd., a company existing under
the laws of Bermuda.

“OneBeacon
Limited Consolidated Net Worth” means, as at any date, the sum of all
amounts that would, in conformity with GAAP be included on a consolidated
balance sheet of OneBeacon Limited and its consolidated Subsidiaries under
stockholders’ equity at such date, plus minority interests in Subsidiaries, as
determined in accordance with GAAP; provided, however, that in
calculating OneBeacon Limited Consolidated Net Worth as at any date, there shall be excluded for purposes of the
calculation of OneBeacon Limited Consolidated Net Worth any effects
resulting from (a) SFAS 115 or (b) the application of FIN 46R.

“OneBeacon
Limited Debt to Capitalization Ratio” means, as at the end of any fiscal
quarter of OneBeacon Limited, the ratio of (a) OneBeacon Limited Total
Consolidated Debt to (b) OneBeacon Limited Total Consolidated Capitalization.

“OneBeacon
Limited Total Consolidated Capitalization” means, as at any date, the sum,
without duplication, of (a) OneBeacon Limited Consolidated Net Worth plus (b)
OneBeacon Limited Total Consolidated Debt plus, (c) the amounts in respect of
Trust Preferred Securities, Mandatory Convertible Securities, Mandatory Redeemable
Securities, Conditional Common Equity and any other preferred equity that
would, in conformity with GAAP, be reflected on a consolidated balance sheet of
OneBeacon Limited and its consolidated Subsidiaries prepared as of such date
and which are not already included in clause  (a) or (b)
above.  OneBeacon Limited Total
Consolidated Capitalization shall in any event not include (x) any obligations
(including Guarantee Obligations) in respect of the Fund American Preferred
Stock, provided  that, arrangements reasonably satisfactory to the
Administrative Agent shall have been made for the establishment of grantor
trusts to provide for the payment or redemption of the Fund American Preferred
Stock, it being understood that such arrangements in effect on the Closing Date
are reasonably satisfactory to the Administrative Agent or (y) any effects
resulting from the application of FIN 46R. 
For purposes of this definition, references to the “Borrower” in the
definitions of Trust Preferred Securities, Mandatory Convertible Securities,
Mandatory Redeemable Securities and Conditional Common Equity shall be deemed
to be references to OneBeacon Limited.

“OneBeacon Limited Total Consolidated Debt” means,
at any date, the sum, without duplication, of (a) all amounts that would, in
conformity with GAAP, be 

 17
 

reflected and
classified as debt on a consolidated balance sheet of OneBeacon Limited and its
consolidated Subsidiaries prepared as of such date (other than amounts excluded
by clauses (b) and (c) below), (b) Indebtedness represented by (i) Trust
Preferred Securities or Qualified Securities (in each case, owned by Persons
other than OneBeacon Limited or any of its consolidated Subsidiaries) but only
to the extent that such securities (other than Mandatory Convertible Securities)
exceed 15% of OneBeacon Limited Total Consolidated Capitalization or (ii)
Mandatory Redeemable Securities (owned by Persons other than OneBeacon Limited
or any of its consolidated Subsidiaries) other than Qualified Securities, and
(c) Indebtedness represented by Mandatory Convertible Securities (owned by
Persons other than OneBeacon Limited or any of its consolidated Subsidiaries)
but only to the extent that such Mandatory Convertible Securities plus Trust
Preferred Securities and Qualified Securities (in each case, owned by Persons
other than OneBeacon Limited or any of its consolidated Subsidiaries) exceed
25% of OneBeacon Limited Total Consolidated Capitalization; provided,
that in the event that the notes related to the Mandatory Convertible Securities
remain outstanding following the exercise of forward purchase contracts related
to such Mandatory Convertible Securities, then such outstanding notes will be
included in OneBeacon Limited Total Consolidated Debt thereafter.  OneBeacon Limited Total Consolidated Debt
shall, in any event, not include (a) Hedge Agreements entered into in the
ordinary course of business for non-speculative
purposes, (b) Indebtedness of OneBeacon Limited of the type described in Sections
7.2(a)(ii), (a)(iii), (a)(iv), (a)(vi) and (a)(vii),
(c) Conditional Common Equity, (d) any obligations (including Guarantee
Obligations) in respect of the Fund American Preferred Stock, provided  that,
arrangements reasonably satisfactory to the Administrative Agent shall have
been made for the establishment of grantor trusts to provide for the payment or
redemption of the Fund American Preferred Stock, it being understood that such
arrangements in effect on the Closing Date are reasonably satisfactory to the
Administrative Agent, (e) any other amounts in
respect of Trust Preferred Securities, Mandatory Redeemable Securities,
Mandatory Convertible Securities or Qualified Securities, or (f) any effects
resulting from the application of FIN 46R. 
For purposes of this definition, references to the “Borrower” in
the definitions of Trust Preferred Securities, Qualified Securities, Mandatory
Convertible Securities, Mandatory Redeemable Securities and Conditional Common
Equity shall be deemed to be references to OneBeacon Limited.

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

“Participant”
has the meaning specified in Section 10.7(d).

“PBGC”
means the Pension Benefit Guaranty Corporation established pursuant to Subtitle
A of Title IV of ERISA (or any successor).

“Permitted Liens” means
(a) any Lien upon Property to secure any part of the cost of development,
construction, alteration, repair or improvement of such Property, or Debt
incurred to finance such cost; (b) any extension, renewal or replacement,
in 

 18
 

whole or in part,
of any Lien referred to in the foregoing clause (a); (c) any
Lien relating to a sale and leaseback transaction; (d) any Lien in favor
of the Borrower or any Subsidiary granted by the Borrower or any Subsidiary in
order to secure any intercompany obligations; (e) mechanic’s, materialmen’s,
carriers’ or other like Liens arising in the ordinary course of business
(including construction of facilities) in respect of obligations which are not
due or which are being contested in good faith; (f) any Lien arising in
connection with any legal proceeding which is being contested in good faith;
(g) Liens for taxes not yet subject to penalties for non-payment or which
are being contested in good faith by appropriate proceedings; (h) minor
survey exceptions, minor encumbrances, easements or reservations of, or rights
of others for, licenses, rights-of-way, sewers, electric lines, telegraph and
telephone lines and other similar purposes, or zoning or other restrictions as
to the use of real property or Liens incidental to the conduct of the business
of such Person or to the ownership of its properties which were not incurred in
connection with Debt and which do not in the aggregate materially adversely
affect the value of said properties or materially impair their use in the
operation of the business of such Person; (i) pledges or deposits under
workers’ compensation Laws, unemployment insurance Laws or similar social
security legislation; (j) any pledge or deposit to secure performance of
letters of credit, bank guarantees, bids, leases, statutory obligations, surety
and appeal bonds, performance bonds or other obligations of a like nature in
the ordinary course of business; (k) any interest or title of a lessor under
any lease entered into in the ordinary course of business; (l) Liens on
assets of any Insurance Subsidiary securing (i) short-term Debt (i.e. with a
maturity of less than one year when issued, provided that such Debt may include
an option to extend for up to an additional one year period) incurred to
provide short-term liquidity to facilitate claims payments in the event of
catastrophe, (ii) Debt incurred in the ordinary course of its business or in
securing insurance-related obligations (that do not constitute Debt) and
letters of credit issued for the account of any such Subsidiary in the ordinary
course of its business or in securing insurance-related obligations (that do
not constitute Debt) or (iii) insurance-related obligations (that do not
constitute Debt); and (m) Liens securing the obligations hereunder.

“Person”
means an individual, partnership, corporation, limited liability company,
business trust, joint stock company, trust, unincorporated association, joint
venture, Governmental Authority or other entity of whatever nature.

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

“Platform”
has the meaning specified in Section 6.2(e).

“Principal
Business” means (a) a business of the type engaged in by the Borrower and
its Subsidiaries on the date of this Agreement, (b) any other insurance,
insurance services, insurance related or risk management related business and
(c) any business reasonably incident to any of the foregoing.

 19
 

“Property”
means any property of any kind whatsoever, whether real, personal or mixed and
whether tangible or intangible.

“Qualified
Securities” means (a) Mandatory Redeemable Securities issued by the
Borrower or one of its Subsidiaries that, pursuant to the terms thereof, must
be redeemed or repurchased or repaid, or may be required to be redeemed or
repurchased or repaid at the option of the holder of such securities (excluding
redemption, repurchase or repayment upon the occurrence of one or more events
or conditions but including redemption, repurchase or repayment upon the
occurrence of a certain date), (i) if such Mandatory Redeemable Securities are
equity securities or subordinated debt securities, not sooner than the
Revolving Credit Termination Date (except to the extent permitted by clause
(ii) below) or (ii) only in exchange for equity securities or other Qualified
Securities of the Borrower or any of its Subsidiaries (except to the extent
permitted by clause (i) above) and (b) any other debt or equity securities
issued by the Borrower or one of its Subsidiaries whose proceeds are or would
be accorded, at or about the time of issuance, equity treatment by S&P.

“Refunded Swing
Line Loans” has the meaning specified in Section 2.4(b).

“Refunding Date”
has the meaning specified in Section 2.4(c).

“Register”
has the meaning specified in Section 10.7(c).

“Regulation U”
means Regulation U of the Board as in effect from time to time.

“Reimbursement
Obligation” means the obligation of the Borrower to reimburse an Issuing
Lender pursuant to Section 3.3(a) for amounts drawn under Letters of
Credit issued by such Issuing Lender for the account of the Borrower.

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

“Reorganization”
means, with respect to any Multiemployer Plan, the condition that such plan is
in reorganization within the meaning of Section 4241 of ERISA.

“Reportable
Event” means any of the events set forth in Section 4043(c) of ERISA, other
than those events as to which the thirty day notice period is waived.

“Requested
Reimbursement Date” has the meaning specified in Section 3.3(a).

“Requirement of
Law” means, as to any Person, the Certificate of Incorporation and By-Laws
or other organizational or governing documents of such Person (excluding, in
the case of Section 2.15(a)(i), any of the foregoing relating to the 

 20
 

Administrative
Agent or any Lender), and any Law, 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.

“Responsible
Officer” means, as to the Borrower or any Subsidiary, the chief executive
officer, president, chief financial officer, treasurer, chief accounting
officer, any vice president or any managing director of the Borrower or any
Subsidiary, as the context requires.  Any
document delivered hereunder that is signed by a Responsible Officer on behalf
of the Borrower or a Subsidiary shall be conclusively presumed to have been
authorized by all necessary corporate, partnership and/or other action on the
part of the Borrower or such Subsidiary and such Responsible Officer shall be
conclusively presumed to have acted on behalf of the Borrower or such
Subsidiary.

“Revolving
Credit Commitment” means, as to any Lender, the obligation of such Lender,
if any, to make Revolving Credit Loans and participate in Swing Line Loans and
Letters of Credit, in an aggregate principal or face amount not to exceed the
amount set forth under the heading “Revolving Credit Commitment” opposite such
Lender’s name on Schedule 1 to this Agreement, or, as the case may be,
in the Assignment and Assumption pursuant to which such Lender became a party
hereto, as the same may be adjusted from time to time pursuant to the terms
hereof.

“Revolving
Credit Commitment Period” means the period from and including the Closing
Date to the earliest of (a) the Revolving Credit Termination Date, (b) the date
of termination of the Revolving Credit Commitments pursuant to Section 2.7,
and (c) the date of termination of the commitment of each Lender to make Loans
and of the obligation of the Issuing Lender to make L/C Credit Extensions
pursuant to Section 8.2.

“Revolving
Credit Loans” has the meaning specified in Section 2.1.

“Revolving
Credit Percentage” means, as to any Lender at any time, the percentage
(carried out to the ninth decimal place) which such Lender’s Revolving Credit
Commitment then constitutes of the Total Revolving Credit Commitments (or, at
any time after the commitment of each Lender to make Loans and the obligation
of the Issuing Lender to make L/C Credit Extensions shall have terminated
pursuant to Section 8.2 or if the Revolving Credit Commitments shall
have expired, then the percentage which the aggregate amount of such Lender’s
Revolving Extensions of Credit then outstanding constitutes of the amount of
the Total Revolving Extensions of Credit then outstanding).

“Revolving
Credit Termination Date” means June 19, 2012; provided, however,
that, if such date is not a Business Day, the Revolving Credit Termination Date
shall be the next succeeding Business Day.

“Revolving
Extensions of Credit” means, as to any Lender at any time, an amount equal
to the sum of (a) the aggregate principal amount of all Revolving Credit Loans
made by such Lender then outstanding, (b) the principal amount equal to such 

 21
 

Lender’s Revolving
Credit Percentage of the L/C Obligations then outstanding and (c) the principal
amount equal to such Lender’s Revolving Credit Percentage of the aggregate
principal amount of Swing Line Loans then outstanding.

“S&P”
means Standard & Poor’s Rating Services (or any successor thereto).

“SAP” means
with respect to any Insurance Subsidiary, the statutory accounting practices
prescribed or permitted by the Department in the jurisdiction of incorporation
or organization of such Insurance Subsidiary for the preparation of annual
statements and other financial reports by insurance companies of the same type
as such Insurance Subsidiary, which are applicable to the circumstances as of
the date of determination.

“SEC” means
the Securities and Exchange Commission (or successors thereto or an analogous
Governmental Authority).

“SFAS”
means the Statements of Financial Accounting Standards adopted by the Financial
Accounting Standards Board.

“Single
Employer Plan” means any Plan that is covered by Title IV of ERISA, but
which is not a Multiemployer Plan.

“Sirius” means Sirius International Insurance
Corporation, a Swedish corporation.

“SPC” has
the meaning specified in Section 10.7(h).

“Specified
Event of Default” means an Event of Default pursuant to Sections 8.1(a),
8.1(b) (with respect to Section 7.1 only) or 8.1(c).

“Stated Rate” has the meaning specified in Section 10.20(a).

“Subsidiary”
of a Person means (a) any corporation more than 50% of the outstanding
securities having ordinary voting power of which shall at the time be owned or
controlled, directly or indirectly, by such Person or by one or more of its
Subsidiaries or by such Person and one or more of its Subsidiaries, or (b) any
partnership, limited liability company, association, joint venture or similar
business organization more than 50% of the ownership interests having ordinary
voting power of which shall at the time be so owned or controlled.  Unless otherwise expressly provided, all
references herein to a “Subsidiary” shall mean a Subsidiary of the Borrower.

“Swing Line
Commitment” means the obligation of the Swing Line Lender to make Swing
Line Loans pursuant to Section 2.3 in an aggregate principal amount at
any one time outstanding not to exceed $50,000,000.

“Swing Line
Lender” means Bank of America, N.A., in its capacity as provider of Swing
Line Loans, or any successor swing line lender hereunder.

 22
 

“Swing Line
Loans” has the meaning specified in Section 2.3(a).

“Swing Line
Participation Amount” has the meaning specified in Section 2.4(c).

“Syndication
Agent” means Lehman Brothers Inc., and any other Lender as may be
designated from time to time by the Borrower as a syndication agent, with the
consent of such Lender and the Arrangers.

“Total
Consolidated Capitalization” means, as at any date, the sum, without
duplication, of (a) Consolidated Net Worth plus (b) Total Consolidated Debt
plus, (c) the amounts in respect of Trust Preferred Securities, Mandatory
Convertible Securities, Mandatory Redeemable Securities, Conditional Common
Equity and any other preferred equity that would, in conformity with GAAP, be
reflected on a consolidated balance sheet of the Borrower and its consolidated
Subsidiaries prepared as of such date and which are not already included in clause
(a) or (b) above.  Total
Consolidated Capitalization shall in any event not include (x) any obligations
(including Guarantee Obligations) in respect of the Fund American Preferred
Stock, provided  that, arrangements reasonably satisfactory to the
Administrative Agent shall have been made for the establishment of grantor
trusts to provide for the payment or redemption of the Fund American Preferred
Stock, it being understood that such arrangements in effect on the Closing Date
are reasonably satisfactory to the Administrative Agent or (y) any effects resulting from the application of
FIN 46R.

“Total Consolidated Debt” means,
at any date, the sum, without duplication, of (a) all amounts that would, in
conformity with GAAP, be reflected and classified as debt on a consolidated
balance sheet of the Borrower and its consolidated Subsidiaries prepared as of
such date (other than amounts excluded by clauses (b) and (c) below), (b)
Indebtedness represented by (i) Trust Preferred Securities or Qualified
Securities (in each case, owned by Persons other than the Borrower or any of
its consolidated Subsidiaries) but only to the extent that such securities
(other than Mandatory Convertible Securities) exceed 15% of Total Consolidated
Capitalization or (ii) Mandatory Redeemable Securities (owned by Persons other
than the Borrower or any of its consolidated Subsidiaries) other than Qualified
Securities, and (c) Indebtedness represented by Mandatory Convertible
Securities (owned by Persons other than the Borrower or any of its consolidated
Subsidiaries) but only to the extent that such Mandatory Convertible Securities
plus Trust Preferred Securities and Qualified Securities (in each case, owned
by Persons other than the Borrower or any of its consolidated Subsidiaries)
exceed 25% of Total Consolidated Capitalization; provided, that in the
event that the notes related to the Mandatory Convertible Securities remain
outstanding following the exercise of forward purchase contracts related to
such Mandatory Convertible Securities, then such outstanding notes will be
included in Total Consolidated Debt thereafter. 
Total Consolidated Debt shall, in any event, not include (1) Hedge
Agreements entered into in the ordinary course of business for non-speculative purposes, (2) Indebtedness of the type described in Sections
7.2(a)(ii), (a)(iii), (a)(iv), (a)(vi) and (a)(vii),
(3) Conditional Common Equity, (4) any obligations (including Guarantee
Obligations) in respect of the Fund American Preferred Stock, provided  that,

 23
 

arrangements
reasonably satisfactory to the Administrative Agent shall have been made for
the establishment of grantor trusts to provide for the payment or redemption of
the Fund American Preferred Stock, it being understood that such arrangements
in effect on the Closing Date are reasonably satisfactory to the Administrative
Agent, (5) any other amounts in respect of Trust
Preferred Securities, Mandatory Redeemable Securities, Mandatory Convertible
Securities or Qualified Securities, or (6) any effects resulting from the application of
FIN 46R.

“Total
Consolidated Debt to Total Consolidated Capitalization Ratio” means, as at
the end of any fiscal quarter of the Borrower, the ratio of (a) Total
Consolidated Debt to (b) Total Consolidated Capitalization.

“Total
Revolving Credit Commitments” means, at any time, the aggregate amount of
the Revolving Credit Commitments then in effect.  The aggregate amount of the Total Revolving
Credit Commitments on the Closing Date is $475,000,000.

“Total
Revolving Extensions of Credit” means, at any time, the aggregate amount of
the Revolving Extensions of Credit of the Lenders outstanding at such time.

“Transferee”
means a Participant or an assignee of any Lender’s rights and obligations under
this Agreement pursuant to an Assignment and Assumption.

“Trust
Preferred Securities” means preferred equity issued by a special purpose
entity, the proceeds of which are used to purchase subordinated debt securities
of the Borrower or one of its Subsidiaries having terms that substantially
mirror those of such preferred equity issued by the special purpose entity such
that the subordinated debt securities constitute credit support for obligations
in respect of such preferred equity and such preferred equity is reflected on a
consolidated balance sheet of the Borrower and its consolidated Subsidiaries in
accordance with GAAP.

“Type”
means, as to any Loan, its nature as a Base Rate Loan or a Eurodollar Loan.

“Unreimbursed
Amount” has the meaning specified in Section 3.3(a).

“White
Mountains Re” means White Mountains Re Group, Ltd., a company organized
under the laws of Bermuda.

“Zenith
Preferred Stock” means the $20,000,000 aggregate liquidation preference
amount of non-voting preferred stock issued by Fund American Enterprises to
Zenith Insurance Company pursuant to the Certificate of Designation of Series A
Preferred Stock of TACK Holding Corp. (n/k/a Fund American Enterprises), as
amended, supplemented or otherwise modified from time to time.

1.2.  Other Definitional Provisions.  Unless otherwise specified therein, all terms
defined in this Agreement shall have the defined meanings when used in the
other Loan Documents or any certificate or other document made or delivered
pursuant hereto or thereto.

 24
 

(a)           As used herein and in the other Loan
Documents, and any certificate or other document made or delivered pursuant
hereto or thereto, accounting terms relating to the Borrower or its
Subsidiaries not defined in Section 1.1 and accounting terms partly
defined in Section 1.1, to the extent not defined, shall have the
respective meanings given to them under GAAP or SAP, as the case may be.

(b)           References herein to particular
pages, columns, lines or sections of any Person’s Annual Statement shall be
deemed, where appropriate, to be references to the corresponding page, column,
line or section of such Person’s Interim Statement, or if no such corresponding
page, column, line or section exists or if any report form changes, then to the
corresponding item referenced thereby.

(c)           The words “hereof”, “herein” and “hereunder”
and words of similar import when used in this Agreement shall refer to this
Agreement as a whole and not to any particular provision of this Agreement, and
Section, Schedule and Exhibit references are to this Agreement unless otherwise
specified.

(d)           The meanings given to terms defined
herein shall be equally applicable to both the singular and plural forms of
such terms.

(e)           The word “or” is not exclusive and
the words “include”, “includes” or “including” shall be deemed to be followed
by the phrase “without limitation”.

(f)            References to “preferred equity”
includes Capital Stock designated as preferred stock, preference shares,
preferred shares or any similar term.

1.3.  Letter of Credit Amounts.  Unless otherwise specified herein, the amount
of a Letter of Credit at any time shall be deemed to be the stated amount of
such Letter of Credit in effect at such time; provided, however,
that with respect to any Letter of Credit that, by its terms or the terms of
any Issuer Document related thereto, provides for one or more automatic
increases in the stated amount thereof, other than with respect to the
calculation of fees in connection with Letters of Credit, the amount of such
Letter of Credit shall be deemed to be the maximum stated amount of such Letter
of Credit after giving effect to all such increases, whether or not such
maximum stated amount is in effect at such time.

1.4.  Rounding.  Any financial ratios required to be
maintained by the Borrower pursuant to this Agreement shall be calculated by
dividing the appropriate component by the other component, carrying the result
to one place more than the number of places by which such ratio is expressed
herein and rounding the result up or down to the nearest number (with a
rounding-up if there is no nearest number).

1.5.  Times
of Day.  Unless otherwise
specified, all references herein to times of day shall be references to Eastern
time (daylight or standard, as applicable).

2.             AMOUNT AND TERMS OF COMMITMENTS

2.1.  Revolving Credit Commitments.  (a) 
Subject to the terms and conditions hereof, the Lenders severally agree
to make revolving credit loans (“Revolving Credit Loans”) to 

 25
 

the Borrower from
time to time on any Business Day during the Revolving Credit Commitment Period
in an aggregate principal amount at any one time outstanding for each Lender
which, when added to such Lender’s Revolving Credit Percentage of the sum of
(i) the L/C Obligations then outstanding and (ii) the aggregate principal
amount of the Swing Line Loans then outstanding, does not exceed the amount of
such Lender’s Revolving Credit Commitment. 
During the Revolving Credit Commitment Period the Borrower may use the
Revolving Credit Commitments by borrowing, prepaying the Revolving Credit Loans
in whole or in part, and reborrowing, all in accordance with the terms and
conditions hereof.  The Revolving Credit
Loans may from time to time be Eurodollar Loans or Base Rate Loans, as determined
by the Borrower and notified to the Administrative Agent in accordance with Sections
2.2 and 2.9, provided that no Revolving Credit Loan shall be made as
a Eurodollar Loan after the day that is one month prior to the Revolving Credit
Termination Date.

(b)           The Borrower shall repay to the
Lenders all outstanding Revolving Credit Loans made to the Borrower on the
Revolving Credit Termination Date.

2.2.  Procedure for Revolving Credit Borrowing.  The Borrower may borrow under the Revolving
Credit Commitments on any Business Day during the Revolving Credit Commitment
Period, provided that the Borrower shall give the Administrative Agent a
borrowing request in the form of Exhibit B-1 hereto (hereinafter, a “Borrowing
Request”) (which Borrowing Request must be received by the Administrative
Agent prior to 11:00 A.M., New York City time, (a) three Business Days prior to
the requested Borrowing Date, in the case of Eurodollar Loans, or (b) on the
requested Borrowing Date, in the case of Base Rate Loans, provided that
requests for Base Rate Loans not received prior to 11:00 A.M., New York City
time on the requested Borrowing Date shall be deemed received on the following
Business Day), and must specify (i) the amount and Type of Revolving Credit
Loans to be borrowed, (ii) the requested Borrowing Date and (iii) in the case
of Eurodollar Loans, the length of the initial Interest Period therefor; provided, however, that if the Borrower wishes to request Eurodollar Loans
having an Interest Period of nine or twelve months in duration as provided in
the definition of “Interest Period,” the applicable notice must be received by
the Administrative Agent not later than 11:00 A.M. New York City time, four
Business Days prior to the requested date of such borrowing, whereupon the
Administrative Agent shall give prompt notice to the Lenders of such request
and determine whether the requested Interest Period is unavailable to any of
them.  Not later than 10:00 A.M. New York
City time, three Business Days before the requested date of such borrowing, the
Administrative Agent shall notify the Borrower (which notice may be by
telephone) whether or not the requested Interest Period is unavailable to any
Lender.  If the Borrower requests a
borrowing of Eurodollar Loans in any Borrowing Request, but fails to specify an
Interest Period, it will be deemed to have specified an Interest Period of one
month.  Each borrowing of
Revolving Credit Loans under the Revolving Credit Commitments shall be in an
amount equal to (x) in the case of Base Rate Loans, $1,000,000 or a whole multiple
thereof (or, if the then aggregate Available Revolving Credit Commitments are
less than $1,000,000, such lesser amount) and (y) in the case of Eurodollar
Loans, $5,000,000 or a whole multiple of $1,000,000 in excess thereof; provided,
that the Swing Line Lender may request, on behalf of the Borrower, borrowings
of Base Rate Loans under the Revolving Credit Commitments in other amounts
pursuant to Section 2.4.  Upon
receipt of any such notice from the Borrower, the Administrative Agent shall
promptly notify each Lender thereof. 
Each Lender will make its Revolving Credit Percentage of the amount of
each borrowing of Revolving Credit 

 26
 

Loans available to
the Administrative Agent for the account of the Borrower at the Administrative
Agent’s Office prior to 12:00 Noon, New York City time, on the Borrowing Date
requested by the Borrower in funds immediately available to the Administrative
Agent.  Such borrowing will then be made
available to the Borrower by the Administrative Agent in like funds as received
by the Administrative Agent.

2.3.  Swing Line Commitment.  (a) Subject to the terms and conditions
hereof, the Swing Line Lender agrees, in reliance on the agreements of the
other Lenders set forth in Section 2.4, that during the Revolving Credit
Commitment Period, it will make available to the Borrower in the form of swing
line loans (“Swing Line Loans”) a portion of the credit otherwise
available to the Borrower under the Revolving Credit Commitments; provided
that (i) the aggregate principal amount of Swing Line Loans outstanding at any
time shall not exceed the Swing Line Commitment then in effect (notwithstanding
that the Swing Line Loans outstanding at any time, when aggregated with the
Swing Line Lender’s other outstanding Revolving Credit Loans hereunder, may
exceed the Swing Line Commitment then in effect or such Swing Line Lender’s
Revolving Credit Commitment then in effect) and (ii) the Borrower shall not
request, and the Swing Line Lender shall not make, any Swing Line Loan if,
after giving effect to the making of such Swing Line Loan, the aggregate amount
of the Available Revolving Credit Commitments would be less than zero.  During the Revolving Credit Commitment
Period, the Borrower may use the Swing Line Commitment by borrowing, repaying
and reborrowing, all in accordance with the terms and conditions hereof.  Swing Line Loans shall be Base Rate Loans
only.

(b)           The Borrower shall repay all
outstanding Swing Line Loans on the Revolving Credit Termination Date.  Each payment in respect of Swing Line Loans
shall be made to the Swing Line Lender.

2.4.  Procedure for Swing Line Borrowing;
Refunding of Swing Line Loans. 
(a)  The Borrower may borrow under
the Swing Line Commitment on any Business Day during the Revolving Credit
Commitment Period, provided, the Borrower shall give the Swing Line
Lender irrevocable telephonic notice confirmed promptly in writing in the form
of Exhibit B-2 (which telephonic notice must be received by the Swing
Line Lender not later than 1:00 P.M., New York City time, on the proposed
Borrowing Date), specifying (i) the amount to be borrowed and (ii) the
requested Borrowing Date.  Each borrowing
under the Swing Line Commitment shall be in an amount equal to $500,000 or a
whole multiple of $100,000 in excess thereof. 
Not later than 3:00 P.M., New York City time, on the Borrowing Date
specified in the borrowing notice in respect of any Swing Line Loan, the Swing
Line Lender shall make available to the Administrative Agent at the
Administrative Agent’s Office an amount in immediately available funds equal to
the amount of such Swing Line Loan.  The
Administrative Agent shall make the proceeds of such Swing Line Loan available
to the Borrower on such Borrowing Date in like funds as received by the
Administrative Agent.

(b)           The Swing Line Lender, not less
frequently than once each week shall, and at any other time, from time to time,
as the Swing Line Lender elects in its sole and absolute discretion, may, on
behalf of the Borrower (which hereby irrevocably directs the Swing Line Lender
to act on its behalf), on one Business Day’s notice given by the Swing Line
Lender no later than 12:00 Noon, New York City time, request each Lender to
make, and each Lender hereby agrees to make, a Revolving Credit Loan, in an
amount equal to such Lender’s Revolving 

 27
 

Credit Percentage
of the aggregate amount of the Swing Line Loans (the “Refunded Swing Line
Loans”) outstanding on the date of such notice, to repay the Swing Line
Lender.  Each Lender shall make the
amount of such Revolving Credit Loan available to the Administrative Agent at
the Administrative Agent’s Office in immediately available funds, not later
than 10:00 A.M., New York City time, one Business Day after the date of such
notice.  The proceeds of such Revolving
Credit Loans shall be made immediately available by the Administrative Agent to
the Swing Line Lender for application by the Swing Line Lender to the repayment
of the Refunded Swing Line Loans.  Upon
the written request of any Lender, the Administrative Agent will, within three
Business Days of such request, inform such Lender of the aggregate amount of
Swing Line Loans outstanding on the date of such request.

(c)           If prior to the time a Revolving
Credit Loan would have otherwise been made pursuant to Section 2.4(b),
one of the events described in Section 8.1(c) shall have occurred and be
continuing with respect to the Borrower, or if for any other reason, as
determined by the Swing Line Lender in its sole discretion, Revolving Credit
Loans may not be made as contemplated by Section 2.4(b), each Lender
shall, on the date such Revolving Credit Loan was to have been made pursuant to
the notice referred to in Section 2.4(b) (the “Refunding Date”),
purchase for cash an undivided participating interest in the then outstanding
Swing Line Loans by paying to the Swing Line Lender an amount (the “Swing
Line Participation Amount”) equal to (i) such Lender’s Revolving Credit
Percentage times (ii) the sum of the aggregate principal amount of Swing
Line Loans then outstanding which were to have been repaid with such Revolving
Credit Loans.

(d)           If any Lender fails to make available
to the Administrative Agent for the account of the Swing Line Lender any amount
required to be paid by such Lender pursuant to the foregoing provisions of this
Section 2.4(b) by the time specified in Section 2.4(b), the Swing
Line Lender shall be entitled to recover from such Lender (acting through the
Administrative Agent), on demand, such amount with interest thereon for the
period from the date such payment is required to the date on which such payment
is immediately available to the Swing Line Lender at a rate per annum equal to
the greater of the Federal Funds Rate and a rate determined by the Swing Line
Lender in accordance with banking industry rules on interbank compensation,
plus any administrative, processing or similar fees customarily charged by the
Swing Line Lender in connection with the foregoing.  If such Lender pays such amount (with
interest and fees as aforesaid), the amount so paid shall constitute such
Lender’s Loan included in the relevant borrowing or funded participation in the
relevant Swing Line Loan, as the case may be. 
A certificate of the Swing Line Lender submitted to any Lender (through
the Administrative Agent) with respect to any amounts owing under this paragraph
(d) shall be conclusive absent manifest error.

(e)           Each Lender’s obligation to make the
Loans referred to in Section 2.4(b) and to purchase participating
interests pursuant to Section 2.4(c) shall be absolute and unconditional
and shall not be affected by any circumstance, including, without limitation,
(i) any setoff, counterclaim, recoupment, defense or other right which such
Lender may have against the Swing Line Lender, the Borrower or any other Person
for any reason whatsoever; (ii) the occurrence or continuance of a Default or
an Event of Default or the failure to satisfy any of the other conditions
specified in Section 4; (iii) any adverse change in the condition
(financial or otherwise) of the Borrower; (iv) any breach of this Agreement or
any other Loan Document by 

 28
 

the Borrower or
any Lender; or (v) any other circumstance, happening or event whatsoever,
whether or not similar to any of the foregoing. 
No such funding of risk participations shall relieve or otherwise impair
the obligation of the Borrower to repay Swing Line Loans, together with
interest as provided herein.

(f)            Whenever, at any time after the
Swing Line Lender has received from any Lender such Lender’s Swing Line
Participation Amount, the Swing Line Lender receives any payment on account of
the Swing Line Loans, the Swing Line Lender will distribute to such Lender its
Swing Line Participation Amount (appropriately adjusted, in the case of
interest payments, to reflect the period of time during which such Lender’s
participating interest was outstanding and funded and, in the case of principal
and interest payments, to reflect such Lender’s pro  rata portion
of such payment if such payment is not sufficient to pay the principal of and
interest on all Swing Line Loans then due); provided, however,
that in the event that such payment received by the Swing Line Lender is
required to be returned, such Lender will return to the Swing Line Lender any
portion thereof previously distributed to it by the Swing Line Lender.  The obligation of the Lenders under this paragraph
(f) shall survive the payment in full of the Obligations and the
termination of this Agreement.

(g)           The Swing Line Lender shall be
responsible for invoicing the Borrower for interest on the Swing Line Loans.  Until each Lender funds its Refunded Swing
Line Loan or risk participation pursuant to this Section 2.4 to
refinance such Lender’s Revolving Credit Percentage of any Swing Line Loan,
interest in respect of such Revolving Credit Percentage shall be solely for the
account of the Swing Line Lender.

(h)           The Borrower shall make all payments
of principal and interest in respect of the Swing Line Loans directly to the
Administrative Agent for the account of the Swing Line Lender.

2.5.  Repayment of Loans; Evidence of Debt.  (a) 
The Borrower hereby unconditionally promises to pay to the
Administrative Agent for the account of the appropriate Lender (i) the then
unpaid principal amount on the Revolving Credit Termination Date (or on such
earlier date on which the Loans become due and payable pursuant to Section
8.2) of each Revolving Credit Loan of such Lender made to the Borrower and
(ii) the then unpaid principal amount on the Revolving Credit Termination Date
(or on such earlier date on which the Loans become due and payable pursuant to Section
8.2) of each Swing Line Loan of such Swing Line Lender made to the
Borrower.  The Borrower hereby further
agrees to pay interest to the Administrative Agent for the account of the
appropriate Lender on the unpaid principal amount of the Loans made to it from
time to time outstanding from the date hereof until payment in full thereof at
the rates per annum, and on the dates, set forth in Section 2.11.

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

(c)           The Administrative Agent, on behalf
of the Borrower, shall maintain the Register pursuant to Section 10.7(c),
and a subaccount therein for each Lender, in which shall be 

 29
 

recorded (i) the
amount of each Loan to the Borrower made hereunder and any Note evidencing such
Loan, the Type of such Loan and each Interest Period applicable thereto, (ii)
the amount of any principal or interest due and payable or to become due and
payable from the Borrower to each Lender hereunder and (iii) both the amount of
any sum received by the Administrative Agent hereunder from or for the account
of the Borrower and each Lender’s share thereof.  In the event of any conflict between the
accounts and records maintained by any Lender and the accounts and records of
the Administrative Agent in respect of such matters, the accounts and records
of the Administrative Agent shall control in the absence of manifest error.

(d)           The entries made in the Register and
the accounts of each Lender maintained pursuant to Section 2.5(b) shall,
to the extent permitted by applicable Law, be prima  facie
evidence of the existence and amounts of the obligations of the Borrower
therein recorded; provided, however, that the failure of any
Lender or the Administrative Agent to maintain the Register or any such
account, or any error therein, shall not in any manner affect the obligation of
the Borrower to repay (with applicable interest) the Loans made to it by such
Lender in accordance with the terms of this Agreement.

(e)           The Borrower agrees that, upon the
request to the Administrative Agent by any Lender, it will execute and deliver
to such Lender a promissory note of the Borrower evidencing any Revolving
Credit Loans or Swing Line Loans, as the case may be, made by such Lender to
the Borrower, substantially in the forms of Exhibit C-1 or C-2,
respectively, with appropriate insertions as to date and principal amount.  Each Lender may attach schedules to its Note
and endorse thereon the date, Type (if applicable), amount and maturity of its
Loans and payments with respect thereto.

(f)            In addition to the accounts and
records referred to herein above, each Lender and the Administrative Agent
shall maintain in accordance with its usual practice accounts or records
evidencing the purchases and sales by such Lender of participations in Letters
of Credit and Swing Line Loans.  In the
event of any conflict between the accounts and records maintained by the
Administrative Agent and the accounts and records of any Lender in respect of
such matters, the accounts and records of the Administrative Agent shall
control in the absence of manifest error.

2.6.  Facility Fee, etc.  (a) 
The Borrower agrees to pay to the Administrative Agent for the account
of each Lender in accordance with its Revolving Credit Percentage a facility
fee for the period from and including the Closing Date to the last day of the
Revolving Credit Commitment Period, computed at the Facility Fee Rate on the
average daily amount of the Revolving Credit Commitment of such Lender during
the period for which payment is made. 
The facility fee shall accrue at all times during the Revolving Credit
Commitment Period, including at any time during which one or more of the
conditions in Section 4.2 is not met, and shall be payable quarterly in
arrears on the first Business Day of each of January, April, July and October
and on the last day of the Revolving Credit Commitment Period, commencing on
the first of such dates to occur after the Closing Date.  The facility fee shall be calculated
quarterly in arrears, and if there is any change in the Facility Fee Rate
during any quarter, the actual daily amount shall be computed and multiplied by
the Facility Fee Rate separately for each period during such quarter that the
Facility Fee Rate was in effect.

 30

(b)           The Borrower agrees to pay to the
Arrangers for their own respective accounts the fees in the amounts and on the
dates from time to time agreed to in the Arranger Fee Letter.

(c)           The Borrower agrees to pay to the
Administrative Agent the fees in the amounts and on the dates from time to time
agreed to in the Agent Fee Letter.

2.7.  Termination or Reduction of Revolving
Credit Commitments.  The Borrower
shall have the right, upon notice to the Administrative Agent, to terminate the
Revolving Credit Commitments or, from time to time, to reduce the aggregate
amount of the Revolving Credit Commitments; provided that (a) no such
termination or reduction of Revolving Credit Commitments shall be permitted if,
after giving effect thereto and to any prepayments of the Revolving Credit
Loans and Swing Line Loans made on the effective date thereof, the Total
Revolving Extensions of Credit would exceed the Total Revolving Credit
Commitments, (b) any such reduction shall be in an amount equal to $1,000,000,
or a whole multiple thereof (or the remaining amount of the Revolving Credit
Commitments), (c) any such notice shall be received by the Administrative Agent
not later than 11:00 A.M. New York City time, three Business Days prior to the
date of termination or reduction and (d) if, after giving effect to any
reduction of the Revolving Credit Commitments, the L/C Commitment or the Swing
Line Commitment exceeds the amount of the Revolving Credit Commitment, such
Commitment shall be automatically reduced by the amount of such excess; provided,
further, that a notice of termination of the Revolving Credit
Commitments delivered by the Borrower may state that such notice is conditioned
upon the effectiveness of other credit facilities, transactions or borrowings
in general, in which case such notice may be revoked by the Borrower (by notice
to the Administrative Agent on or prior to the specified effective date) if
such condition is not satisfied.  The
Administrative Agent will promptly notify the Lenders of any notice of termination
or reduction of the Revolving Credit Commitments.  Any reduction of the Revolving Credit
Commitments shall be applied to the Revolving Credit Commitment of each Lender
according to its Revolving Credit Percentage. 
All fees accrued until the effective date of any termination of the
Revolving Credit Commitment shall be paid on the effective date of such
termination.  Any reduction shall reduce
permanently the Revolving Credit Commitments then in effect.

2.8.  Prepayments.  (a) 
The Borrower may at any time and from time to time prepay the Loans made
to the Borrower, in whole or in part, without premium or penalty, upon notice
delivered to the Administrative Agent at least three Business Days prior
thereto in the case of Eurodollar Loans and on the date of prepayment in the
case of Base Rate Loans, which notice shall specify the date and amount of
prepayment and whether the prepayment is of Eurodollar Loans or Base Rate
Loans; provided, that  (i) if a
Eurodollar Loan is prepaid on any day other than the last day of the Interest
Period applicable thereto, the Borrower shall also pay any amounts owing
pursuant to Section 2.17 and (ii) no prior notice is required for the
prepayment of Swing Line Loans; provided, further, that, if a
notice of prepayment is given in connection with a conditional notice of
termination of the Revolving Credit Commitments as contemplated by Section 2.7,
then such notice of prepayment may be revoked if such notice of termination is
revoked in accordance with Section 2.7.  Upon receipt of any such notice the
Administrative Agent shall promptly notify the Lenders thereof.  If any such notice is given, the amount
specified in such notice shall be due and payable on the date specified
therein, together with (except in the case of Base Rate Loans) accrued interest
to such date on the amount prepaid.  

 31
 

Partial
prepayments of Revolving Credit Loans shall be in an aggregate principal amount
of $1,000,000  or a whole multiple
thereof.  Partial prepayments of Swing
Line Loans shall be in an aggregate principal amount of $100,000 or a whole
multiple thereof.

(b)           If for any reason the Total Revolving
Extensions of Credit at any time exceed the Total Revolving Credit Commitments
then in effect, the Borrower shall immediately prepay the Loans and/or Cash
Collateralize the L/C Obligations in an aggregate amount equal to such excess; provided,
however, that the Borrower shall not be required to Cash Collateralize
the L/C Obligations pursuant to this Section 2.8(b) unless after the
prepayment in full of the Loans the Total Revolving Extensions of Credit exceed
the Total Revolving Credit Commitments then in effect.

2.9.  Conversion and Continuation Options.  (a) 
The Borrower may elect from time to time to convert Eurodollar Loans
made to the Borrower to Base Rate Loans by giving the Administrative Agent at
least two Business Days’ prior irrevocable notice (which may be telephonic) of
such election.  The Borrower may elect
from time to time to convert Base Rate Loans made to the Borrower to Eurodollar
Loans by giving the Administrative Agent at least three Business Days’ prior
irrevocable notice (which may be telephonic) of such election (which notice
shall specify the length of the initial Interest Period therefor); provided, however, that if the Borrower wishes to request Eurodollar Loans
having an Interest Period of nine or twelve months in duration as provided in
the definition of “Interest Period”, the applicable notice must be received by
the Administrative Agent not later than 11:00 A.M. New York City time, four
Business Days prior to the requested date of such conversion or continuation,
whereupon the Administrative Agent shall give prompt notice to the Lenders of
such request and determine whether the requested Interest Period is unavailable
to any of them.  Not later than 10:00
A.M. New York City time, three Business Days before the requested date of such
conversion or continuation, the Administrative Agent shall notify the Borrower
(which notice may be by telephone) whether or not the requested Interest Period
is unavailable to any of the Lenders, provided, further
that no Base Rate Loan may be converted to a Eurodollar Loan (i) when any Event
of Default has occurred and is continuing and the Administrative Agent or the
Majority Lenders have determined in its or their sole discretion not to permit
such conversions or (ii) after the date that is one month prior to the
Revolving Credit Termination Date.  Each
telephonic notice by the Borrower pursuant to this Section 2.9 must be
confirmed promptly by delivery to the Administrative Agent of a written
Borrowing Request appropriately completed and signed by a Responsible Officer
of the Borrower.  If the Borrower
requests a conversion to a Eurodollar Loan in any Borrowing Request, but fails
to specify an Interest Period, it will be deemed to have specified an Interest
Period of one month.  Upon receipt of any
such notice the Administrative Agent shall promptly notify the Lenders thereof.

(b)           The Borrower may elect to continue
any Eurodollar Loan made to the Borrower as such upon the expiration of the
then current Interest Period with respect thereto by giving irrevocable notice
(which may be telephonic) to the Administrative Agent, in accordance with the
applicable provisions of the term “Interest Period” set forth in Section 1.1,
of the length of the next Interest Period to be applicable to such Loans, provided
that no Eurodollar Loan may be continued as such (i) when any Event of Default
has occurred and is continuing and the Administrative Agent or the Majority
Lenders have, determined in its or their sole discretion not to permit such
continuations or (ii) after the date that is one month prior to the Revolving
Credit 

 32
 

Termination Date,
and provided, further, that if the Borrower shall fail to give
any required notice as described above in this paragraph or if such
continuation is not permitted pursuant to the preceding proviso, such Loans
shall be converted automatically to Base Rate Loans on the last day of such
then expiring Interest Period.  Each
telephonic notice by the Borrower pursuant to this Section 2.9 must be
confirmed promptly by delivery to the Administrative Agent of a written
Borrowing Request appropriately completed and signed by a Responsible Officer
of the Borrower.  Upon receipt of any such
notice the Administrative Agent shall promptly notify the Lenders thereof.

2.10.  Maximum Number of Eurodollar Loans.  Notwithstanding anything to the contrary in
this Agreement, all borrowings, conversions, continuations and optional
prepayments of Eurodollar Loans and all selections of Interest Periods shall be
in such amounts and be made pursuant to such elections so that no more than ten
Eurodollar Loans shall be outstanding at any one time.

2.11.  Interest Rates and Payment Dates.  (a) 
Subject to the provisions of paragraph (c) below, each Eurodollar
Loan shall bear interest on the outstanding principal amount thereof for each
day during each Interest Period with respect thereto at a rate per annum equal
to the Eurodollar Rate determined for such day plus the Applicable Margin.

(b)           Each Base Rate Loan, including Swing
Line Loans, shall bear interest on the outstanding principal amount thereof
from the applicable borrowing date at a rate per annum equal to the Base Rate.

(c)           (i) If all or a portion of the
principal amount of any Loan or Reimbursement Obligation shall not be paid when
due (whether at the stated maturity, by acceleration or otherwise), such
overdue amount shall bear interest at a rate per annum that is equal to (x) in
the case of the Loans, the rate that would otherwise be applicable thereto
pursuant to the foregoing provisions of this Section 2.11  plus 2%
or (y) in the case of Reimbursement Obligations, the rate applicable to Base
Rate Loans plus 2%, and (ii) if all or a portion of any interest payable
on any Loan or Reimbursement Obligation or any facility fee or other amount
payable hereunder shall not be paid when due (whether at the stated maturity,
by acceleration or otherwise), such overdue amount shall bear interest at a
rate per annum equal to the rate then applicable to Base Rate Loans plus
2%, in each case, with respect to clauses (i) and (ii) above,
from the date of such non-payment until such amount is paid in full (each
of the foregoing collectively, the “Default Rate”).

(d)           Interest shall be payable in arrears
on each Interest Payment Date, provided that interest accruing pursuant
to paragraph (c) of this Section 2.11 shall be payable from time
to time on demand (after as well as before judgment and before and after the
commencement of any proceeding under any Debtor Relief Law).

2.12.  Computation of Interest and Fees.  (a) 
Interest, fees and commissions payable pursuant hereto shall be
calculated on the basis of a 365-day (or 366-day, as the case may be) year for
the actual days elapsed, except that, with respect to Eurodollar Loans, the
interest thereon shall be calculated on the basis of a 360-day year for the
actual days elapsed.  The Administrative
Agent shall as soon as practicable notify the Borrower and the Lenders of 

 33
 

each determination
of a Eurodollar Rate.  Any change in the
interest rate on a Loan resulting from a change in the Base Rate shall become
effective as of the opening of business on the day on which such change becomes
effective.  The Administrative Agent
shall as soon as practicable notify the Borrower and the Lenders of the
effective date and the amount of each such change in any interest rate.  Interest shall accrue on each Loan for the
day on which the Loan is made, and shall not accrue on a Loan, or any portion
thereof, for the day on which the Loan or such portion is paid, provided
that any Loan that is repaid on the same day on which it is made shall, subject
to Section 2.14(d), bear interest for one day.

(b)           Each determination of an interest
rate by the Administrative Agent pursuant to any provision of this Agreement
shall be conclusive and binding on the Borrower and the Lenders in the absence
of manifest error.

2.13.  Inability to Determine Interest Rate.  If prior to the first day of any Interest Period:

(a)           the
Administrative Agent shall have determined (which determination shall be
conclusive and binding upon the Borrower) that, by reason of circumstances
affecting the relevant market, adequate and reasonable means do not exist for
ascertaining the Eurodollar Rate for such Interest Period, or

(b)           the
Administrative Agent shall have received notice from the Majority Lenders that
the Eurodollar Rate determined or to be determined for such Interest Period
will not adequately and fairly reflect the cost to such Lenders (as
conclusively certified by such Lenders) of making or maintaining their affected
Loans during such Interest Period,

the Administrative Agent
shall give telecopy or telephonic notice thereof to the Borrower and the
relevant Lenders as soon as practicable thereafter.  If such notice is given (x) any Eurodollar
Loans requested to be made on the first day of such Interest Period shall be
made as Base Rate Loans, (y) any Loans that were to have been converted on
the first day of such Interest Period to Eurodollar Loans shall be continued as
Base Rate Loans and (z) any outstanding Eurodollar Loans shall be converted, on
the last day of the then current Interest Period with respect thereto, to Base
Rate Loans.  Until such notice has been
withdrawn by the Administrative Agent, no further Eurodollar Loans shall be
made or continued as such, nor shall the Borrower have the right to convert
Loans to Eurodollar Loans.

2.14.  Pro Rata Treatment and Payments.  (a) 
Each borrowing, other than borrowings of Swing Line Loans, by the
Borrower from the Lenders hereunder, each payment by the Borrower on account of
any facility fee or Letter of Credit fee, and any reduction of the Revolving
Credit Commitments of the Lenders, shall be made pro rata according to the
respective Revolving Credit Percentages of the relevant Lenders.

(b)           Each payment (including each
prepayment) by the Borrower on account of principal of and interest on the
Revolving Credit Loans of the Borrower shall be made pro  rata
according to the respective outstanding principal amounts of the Revolving
Credit Loans of the 

 34
 

Borrower then held
by the Lenders.  Each payment in respect
of Reimbursement Obligations in respect of any Letter of Credit shall be made
to the relevant Issuing Lender.

(c)           The application of any payment of
Loans shall be made, first, to Base Rate Loans and, second, to
Eurodollar Loans.  Each payment of the
Eurodollar Loans shall be accompanied by accrued interest to the date of such
payment on the amount paid.

(d)           All payments (including prepayments)
to be made by the Borrower hereunder, whether on account of principal,
interest, fees or otherwise, shall be made without condition or deduction for
any counterclaim, defense, recoupment or setoff and shall be made prior to 12:00
Noon, New York City time, on the due date thereof to the Administrative Agent,
for the account of the relevant Lenders, at the Administrative Agent’s Office,
in Dollars and in immediately available funds. 
Any payment made by the Borrower after 12:00 Noon, New York City time,
on any Business Day shall be deemed to have been made on the next following
Business Day.  The Administrative Agent
shall distribute such payments to the Lenders promptly upon receipt in like funds
as received.  If any payment hereunder
(other than payments on the Eurodollar Loans) becomes due and payable on a day
other than a Business Day, such payment shall be extended to the next
succeeding Business Day.  If any payment
on a Eurodollar Loan becomes due and payable on a day other than a Business
Day, the maturity thereof shall be extended to the next succeeding Business Day
unless the result of such extension would be to extend such payment into
another calendar month, in which event such payment shall be made on the
immediately preceding Business Day.  In
the case of any extension of any payment of principal pursuant to the preceding
two sentences, interest thereon shall be payable at the then applicable rate
during such extension.

(e)           Unless the Borrower or any Lender has
notified the Administrative Agent, prior to the date any payment is required to
be made by it to the Administrative Agent hereunder, that the Borrower or such
Lender, as the case may be, will not make such payment, the Administrative
Agent may assume that the Borrower or such Lender, as the case may be, has
timely made such payment and may (but shall not be so required to), in reliance
thereon, make available a corresponding amount to the Person entitled
thereto.  If and to the extent that such
payment was not in fact made to the Administrative Agent in immediately
available funds, then:

(i)            if the Borrower failed to make such
payment, each Lender shall forthwith on demand repay to the Administrative
Agent the portion of such assumed payment that was made available to such
Lender in immediately available funds, together with interest thereon in
respect of each day from and including the date such amount was made available
by the Administrative Agent to such Lender to the date such amount is repaid to
the Administrative Agent in immediately available funds at the Federal Funds
Rate from time to time in effect; and

(ii)           if any Lender failed to make such
payment, such Lender shall forthwith on demand pay to the Administrative Agent
the amount thereof in immediately available funds, together with interest
thereon for the period from the date such amount was made available by the
Administrative Agent to the Borrower to the date such amount is recovered by
the Administrative Agent (the 

 35
 

“Compensation Period”) at a rate per annum
equal to the greater of the Federal Funds Rate and a rate determined by the
Administrative Agent in accordance with banking industry rules on interbank
compensation, plus any administrative, processing or similar fees customarily
charged by the Administrative Agent in connection with the foregoing. If such
Lender pays such amount to the Administrative Agent, then such amount shall
constitute such Lender’s Revolving Credit Percentage of the Loan included in
the applicable borrowing.  If such Lender
does not pay such amount forthwith upon the Administrative Agent’s demand
therefor, the Administrative Agent may make a demand therefor upon the
Borrower, and the Borrower shall pay such amount to the Administrative Agent,
together with interest thereon for the Compensation Period at a rate per annum
equal to the rate of interest applicable to the applicable borrowing.  Nothing herein shall be deemed to relieve any
Lender from its obligation to fulfill its Revolving Credit Commitment or to
prejudice any rights which the Administrative Agent or the Borrower may have
against any Lender as a result of any default by such Lender hereunder.

A notice of the
Administrative Agent to any Lender or the Borrower with respect to any amount
owing under this subsection (e) shall be conclusive, absent manifest
error.

(f)            The obligations of the Lenders
hereunder to make Loans, to fund participations in Letters of Credit and Swing
Line Loans and to make payments under Section 10.6 are several and not
joint.  The failure of any Lender to make
any Loan, to fund any such participation or to make any payment under Section
10.6 on any date required hereunder shall not relieve any other Lender of
its corresponding obligation to do so on such date, and no Lender shall be
responsible for the failure of any other Lender to so make its Loan, to
purchase its participation or make its payment under Section 10.6.

2.15.  Requirements of Law.  (a)  If
the adoption of or any change in any Requirement of Law or in the
interpretation or application thereof or compliance by any Lender with any
request or directive (whether or not having the force of law) from any central
bank or other Governmental Authority made subsequent to the date hereof:

(i)            shall subject any Lender to any tax
of any kind whatsoever with respect to this Agreement, any Letter of Credit,
any Application or any Eurodollar Loan made by it, or change the basis of
taxation of payments to such Lender in respect thereof (except for Non-Excluded
Taxes or Other Taxes covered by Section 2.16 and the imposition of, or
any change in, the rate of any Excluded Tax payable by such Lender);

(ii)           shall impose, modify or hold
applicable any reserve, special deposit, compulsory loan or similar requirement
against assets held by, deposits or other liabilities in or for the account of,
advances, loans or other extensions of credit by, or any other acquisition of
funds by, any office of such Lender that is not otherwise included in the
determination of the Eurodollar Rate hereunder; or

(iii)          shall impose on such Lender any other
condition;

 36
 

and the result of any of
the foregoing is to increase the cost to such Lender, by an amount which such
Lender deems to be material, of making, converting into, continuing or
maintaining Eurodollar Loans to the Borrower or issuing or participating in
Letters of Credit issued at the request of the Borrower, or to reduce any
amount receivable hereunder in respect thereof, then, in any such case, the
Borrower shall promptly pay such Lender, upon its demand, any additional amounts
necessary to compensate such Lender for such increased cost or reduced amount
receivable.  If any Lender becomes
entitled to claim any additional amounts pursuant to this Section 2.15,
it shall promptly notify the Borrower (with a copy to the Administrative Agent)
of the event by reason of which it has become so entitled.

(b)           If any Lender shall have determined
that the adoption of or any change in any Requirement of Law regarding capital
adequacy or in the interpretation or application thereof or compliance by such
Lender or any corporation controlling such Lender with any request or directive
regarding capital adequacy (whether or not having the force of law) from any
Governmental Authority made subsequent to the date hereof shall have the effect
of reducing the rate of return on such Lender’s or such corporation’s capital
as a consequence of its obligations hereunder or under or in respect of any
Letter of Credit to a level below that which such Lender or such corporation
could have achieved but for such adoption, change or compliance (taking into
consideration such Lender’s or such corporation’s policies with respect to
capital adequacy) by an amount deemed by such Lender to be material, then from
time to time, after submission by such Lender to the Borrower (with a copy to
the Administrative Agent) of a written request therefor, the Borrower shall pay
to such Lender such additional amount or amounts as will compensate such Lender
or such corporation for such reduction.

(c)           In addition to, and without duplication
of, amounts which may become payable from time to time pursuant to paragraphs
(a) and (b) of this Section 2.15, the Borrower agrees to pay
to each Lender which requests compensation under this paragraph (c) by
notice to the Borrower, on the last day of each Interest Period with respect to
any Eurodollar Loan made by such Lender to the Borrower, at any time when such
Lender shall be required to maintain reserves against “Eurocurrency liabilities”
under Regulation D of the Board of Governors of the Federal Reserve System (or,
at any time when such Lender may be required by the Board of Governors of the
Federal Reserve System or by any other Governmental Authority, whether within
the United States or in another relevant jurisdiction, to maintain reserves
against any other category of liabilities which includes deposits by reference
to which the Eurodollar Rate is determined as provided in this Agreement or
against any category of extensions of credit or other assets of such Lender
which includes any such Eurodollar Loans), an additional amount (determined by
such Lender’s calculation or, if an accurate calculation is impracticable,
reasonable estimate using such reasonable means of allocation as such Lender
shall determine) equal to the actual costs, if any, incurred by such Lender
during such Interest Period as a result of the applicability of the foregoing
reserves to such Eurodollar Loans.

(d)           A certificate as to any additional
amounts payable pursuant to this Section 2.15 submitted by any Lender to
the Borrower (with a copy to the Administrative Agent) shall be conclusive in
the absence of manifest error.  No Lender
shall be entitled to compensation under this Section 2.15 from the
Borrower for any costs incurred or reductions suffered more than 180 days prior
to the date that such Lender notifies the Borrower of the circumstances giving
rise to such increased costs or reductions and of such Lender’s intention to
claim compensation 

 37
 

therefor; provided
that if a change of law giving rise to such increased costs or
reductions is retroactive, then the 180-day period referred to above shall be
extended to include the period of retroactive effect thereof.  The obligations of the Borrower pursuant to
this Section 2.15 shall survive the termination of this Agreement and
the payment of the Loans and all other amounts payable hereunder.

2.16.  Taxes. 
(a)  Except as required by Law,
all payments made by the Borrower under this Agreement shall be made free and
clear of, and without deduction or withholding for or on account of, any
present or future income, stamp or other taxes, levies, imposts, duties,
charges, fees, deductions or withholdings, now or hereafter imposed, levied,
collected, withheld or assessed by any Governmental Authority, excluding net
income taxes and franchise and doing business taxes (imposed in lieu of net
income taxes) imposed on the Administrative Agent or any Lender as a result of
a present or former connection between the Administrative Agent or such Lender
and the jurisdiction of the Governmental Authority imposing such tax or any
political subdivision or taxing authority thereof or therein (other than any
such connection arising solely from the Administrative Agent’s or such Lender’s
having executed, delivered or performed its obligations or received a payment
under, or enforced, this Agreement or any other Loan Document) (such net income
taxes and franchise or doing business taxes imposed in lieu of net income taxes
being referred to hereinafter as “Excluded Taxes”).  If any such taxes, levies, imposts, duties,
charges, fees, deductions or withholdings other than Excluded Taxes (“Non-Excluded
Taxes”) or any Other Taxes are required to be withheld from any amounts
payable to the Administrative Agent or any Lender hereunder, the amounts so
payable to the Administrative Agent or such Lender shall be increased to the
extent necessary to yield to the Administrative Agent or such Lender (after
payment of all Non-Excluded Taxes and Other Taxes) interest or any such other
amounts payable hereunder at the rates or in the amounts specified in this
Agreement; provided, however, that the Borrower shall not be
required to increase any such amounts payable to any Lender with respect to any
Non-Excluded Taxes (i) that are attributable to such Lender’s failure to comply
with the requirements of paragraph (d) or (e) of this Section
2.16 or (ii) that are withholding taxes imposed on amounts payable to such
Lender at the time such Lender becomes a party to this Agreement or designates
a new lending office, except to the extent that such Lender (or its assignor,
if any) was entitled, at the time of designation of a new lending office or
assignment, to receive additional amounts from the Borrower with respect to
such Non-Excluded Taxes pursuant to this Section 2.16(a).

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

(c)           Whenever any Non-Excluded Taxes or
Other Taxes are payable by the Borrower, as soon as practicable thereafter the Borrower
shall send to the Administrative Agent for its own account or for the account
of the relevant Lender, as the case may be, a certified copy of an official
receipt received by the Borrower showing payment thereof (or other evidence of
such payment reasonably satisfactory to the Administrative Agent).  If the Borrower fails to pay any Non-Excluded
Taxes or Other Taxes when due to the appropriate taxing authority, the Borrower
shall indemnify the Administrative Agent and the Lenders for any incremental
taxes, interest or penalties that may become payable by the Administrative
Agent or any Lender as a result of any such failure.  The agreements in this Section 2.16
shall survive the termination of this Agreement and the payment of the Loans
and all other amounts payable hereunder.

 38
 

(d)           Each Lender (or Transferee) that is
not (i) a citizen or resident of the United States of America, (ii) a
corporation, partnership or other entity created or organized in or under the
laws of the United States of America (or any jurisdiction thereof), or (iii) an
estate or trust that is subject to U.S. federal income taxation regardless of
the source of its income (a “Non-U.S. Lender”) that may lawfully
do so shall deliver to the Borrower and the Administrative Agent (or, in the
case of a Participant, to the Lender from which the related participation shall
have been purchased) two copies of either U.S. Internal Revenue Service Form
W-8BEN or Form W-8ECI (or other applicable form), or, in the case of a Non-U.S.
Lender claiming exemption from U.S. federal withholding tax under Section
871(h) or 881(c) of the Code with respect to payments of “portfolio interest”,
a statement substantially in the form of Exhibit D and a Form W-8BEN (or
other applicable form), or to the extent such Lender may lawfully do so, it
shall deliver any subsequent versions thereof or successors thereto properly
completed and duly executed by such Non-U.S. Lender claiming complete
exemption from, or a reduced rate of, U.S. federal withholding tax on all payments
by the Borrower under this Agreement and the other Loan Documents.  Such forms shall be delivered by each Non-U.S.
Lender on or before the date it becomes a party to this Agreement (or, in the
case of any Participant, on or before the date such Participant purchases the
related participation).  In addition, to
the extent it may lawfully do so, each Non-U.S. Lender shall deliver such
forms promptly upon the obsolescence or invalidity of any form previously
delivered by such Non-U.S. Lender. 
Each Non-U.S. Lender shall, as soon as reasonably practicable, notify
the Borrower at any time it determines that it is no longer in a position to
provide any previously delivered certificate to the Borrower (or any other form
of certification adopted by the U.S. taxing authorities for such purpose).  Notwithstanding any other provision of this
paragraph, a Non-U.S. Lender shall not be required to deliver any form
pursuant to this paragraph that such Non-U.S. Lender is not legally able
to deliver.

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

2.17.  Compensation for Losses.  The Borrower agrees to, upon demand of any
Lender (with a copy to the Administrative Agent) from time to time, to
indemnify each Lender for, and to hold each Lender harmless from, any loss or
expense that such Lender sustains or incurs as a consequence of
(a) default by the Borrower in making a borrowing of, conversion to or
continuation of Eurodollar Loans after the Borrower has given a notice
requesting the same in accordance with the provisions of this Agreement, (b)
default by the Borrower in making any prepayment after the Borrower has given a
notice thereof in accordance with the provisions of this Agreement or (c) the
making by the Borrower of a prepayment or conversion of Eurodollar Loans on a
day that is not the last day of an Interest Period with respect thereto; provided
that any request for indemnification made by a Lender pursuant to this Section
2.17 shall be made within six months of the incurrence of the loss or
expense requested to be indemnified. 
Such indemnification may include an amount equal to the excess, if any,
of (i) the amount of interest that would have accrued on the amount so prepaid,
or not so borrowed, converted or continued, 

 39
 

for the period
from the date of such prepayment or of such failure to borrow, convert or
continue to the last day of such Interest Period (or, in the case of a failure
to borrow, convert or continue, the Interest Period that would have commenced
on the date of such failure) in each case at the applicable rate of interest
for such Loans provided for herein (excluding, however, the Applicable Margin
included therein, if any) over (ii) the amount of interest (as reasonably
determined by such Lender) that would have accrued to such Lender on such
amount by placing such amount on deposit for a comparable period with leading
banks in the interbank Eurodollar market. 
A certificate as to any amounts payable pursuant to this Section 2.17
submitted to the Borrower by any Lender shall be conclusive in the absence of
manifest error.  This covenant shall
survive the termination of this Agreement and the payment of the Loans and all
other amounts payable hereunder.

2.18.  Illegality.  Notwithstanding any other provision herein,
if the adoption of or any change in any Requirement of Law or in the
interpretation or application thereof shall make it unlawful for any Lender to
make or maintain Eurodollar Loans as contemplated by this Agreement, (a) the
commitment of such Lender hereunder to make Eurodollar Loans, continue
Eurodollar Loans as such and convert Base Rate Loans to Eurodollar Loans shall
forthwith be canceled and (b) such Lender’s Loans then outstanding as
Eurodollar Loans, if any, shall be converted automatically to Base Rate Loans
on the respective last days of the then current Interest Periods with respect
to such Loans or within such earlier period as required by Law.  If any such conversion of a Eurodollar Loan
to a Base Rate Loan occurs on a day which is not the last day of the then
current Interest Period with respect thereto, the Borrower shall pay to such
Lender such amounts, if any, as may be required pursuant to Section 2.17.

2.19.  Change of Office.  Each Lender agrees that, upon the occurrence
of any event that it knows to give rise to the operation of Sections 2.15,
2.16(a) or 2.18 with respect to such Lender, it will use all
commercially reasonable efforts (subject to overall policy considerations of
such Lender) to designate another lending office for any Loans affected by such
event, or to assign its rights and obligations hereunder with respect to such
Loans to another of its offices, branches or affiliates with the object of
avoiding the consequences of such event; provided, that such designation
is made on terms that, in the reasonable sole judgment of such Lender, cause
such Lender and its lending office(s) to suffer no economic, legal or
regulatory disadvantage, and provided, further, that nothing in this Section
2.19 shall affect or postpone any of the obligations of the Borrower or the
rights of any Lender pursuant to Sections 2.15, 2.16(a) or 2.18.  The Borrower hereby agrees to pay all
reasonable out-of-pocket costs and expenses incurred by any Lender in
connection with any such designation or assignment.

2.20.  Replacement of Lenders under Certain
Circumstances.  The Borrower shall be
permitted to replace any Lender (a) that requests reimbursement for amounts
owing pursuant to Section 2.15, (b) with respect to which the Borrower
is required to pay any amounts under Sections 2.16 or 2.18, (c)
that defaults in its obligation to make Loans hereunder or (d) that fails to
approve any amendment which, pursuant to Section 10.1, requires the
approval of each Lender, provided, that such amendment is approved by at
least the Majority Lenders, with a replacement financial institution or other
entity; provided that (i) such replacement does not conflict with any
Requirement of Law, (ii) with respect to a condition described in clause (a)
or (b) above, prior to any such replacement, such replaced Lender shall
have taken no action under Section 2.19 so as to eliminate the continued
need for payment of amounts owing pursuant to 

 40
 

Sections 2.15,
2.16, or 2.18 (iii) the replacement financial institution or
other entity shall purchase, at par, all Loans and other amounts owing to such
replaced Lender on or prior to the date of replacement, (iv) the Borrower shall
be liable to such replaced Lender under Section 2.17 (as though Section
2.17 were applicable) if any Eurodollar Loan to the Borrower owing to such
replaced Lender shall be purchased other than on the last day of the Interest
Period relating thereto, (v) the replacement financial institution or other
entity, if not already a Lender, shall be reasonably satisfactory to the
Administrative Agent and otherwise an Eligible Assignee, (vi) the replaced
Lender and replacement Lender shall be obligated to make such replacement in
accordance with the provisions of Section 10.7 (including, without
limitation, obtaining the consents provided for therein) (provided that the
Borrower shall be obligated to pay the registration and processing fee referred
to therein), (vii) the Borrower shall pay all additional amounts (if any)
required pursuant to Section 2.15, 2.16 or 2.18, as the
case may be, in respect of any period prior to the date on which such
replacement shall be consummated, and (viii) any such replacement shall
not be deemed to be a waiver of any rights that the Borrower, the
Administrative Agent or any other Lender shall have against the replaced
Lender.

2.21.  Guaranty of Payment and Performance.  Subject to Section 10.17, the payment
and performance of the obligations of the Borrower hereunder shall be
guaranteed by each Guarantor pursuant to the terms of the Guaranty.

2.22.        Increase in Commitments.

(a)           Request
for Increase.  Upon notice to the
Administrative Agent (which shall promptly notify the Lenders), the Borrower
may from time to time, increase the Total Revolving Credit Commitments by an
amount not to exceed $25,000,000 less the aggregate amount of all prior
increases of the Total Revolving Credit Commitment pursuant to this Section
2.22.  Such increase in the Total
Revolving Credit Commitments may be provided by the Lenders or Eligible
Assignees designated by the Borrower to become Lenders (pursuant to an
instrument of accession in the form of Exhibit I hereto, an “Instrument
of Accession”) that are willing to provide such increase; provided
that (i) any such increase shall be in a minimum amount of $10,000,000 and (ii)
the aggregate amount of the Total Revolving Credit Commitments after giving
effect to any such increase shall not at any time exceed $500,000,000.  Nothing contained herein shall constitute, or
otherwise be deemed to be, a commitment on the part of any Lender to increase
its Revolving Credit Commitment hereunder.

(b)           Effective Date and Allocations.  If the Total Revolving Credit Commitments are
increased in accordance with this Section 2.22, the Administrative Agent
and the Borrower shall determine the effective date (the “Increase Effective
Date”) and the Borrower, in consultation with the Administrative Agent,
shall determine the final allocation of such increase.  The Administrative Agent shall promptly
notify the Lenders of the final allocation of such increase and the Increase
Effective Date.

(c)           Conditions
to Effectiveness of Increase.  As a
condition precedent to such increase, (i) no Default shall exist, (ii) the
Borrower shall (x) deliver to the Administrative Agent (1) an Instrument of
Accession executed by the Borrower and the applicable Lender(s), and (2) a
certificate dated as of the Increase Effective Date (in sufficient copies for
each Lender) signed by a Responsible Officer of the Borrower (A) certifying and
attaching the resolutions adopted by the 

 41
 

Borrower approving
or consenting to such increase, and (B) certifying that, before and after
giving effect to such increase no Default exists and (iii) pursuant to the
terms of the Arranger Fee Letter, pay the fees to the applicable Persons.  The Borrower shall prepay any Revolving
Credit Loans outstanding on the Increase Effective Date (and pay any additional
amounts required pursuant to Section 2.15) to the extent necessary to
keep the outstanding Revolving Credit Loans ratable with any revised Revolving
Credit Percentages arising from any nonratable increase in the Total Revolving
Credit Commitments under this Section 2.22.

(d)           Conflicting
Provisions.  This Section 2.22
shall supersede any provisions in Section 2.14 or 10.1 to the
contrary.

3.             LETTERS OF CREDIT

3.1.  L/C Commitment.  (a) 
Subject to the terms and conditions hereof, each Issuing Lender, in
reliance on the agreements of the other Lenders set forth in Section 3.3,
agrees to issue Letters of Credit for the account of the Borrower or any of its
Subsidiaries and to amend or extend Letters of Credit previously issued by it,
in accordance with Section 3.2(b), on any Business Day during the
Revolving Credit Commitment Period in such form as may be approved from time to
time by the Issuing Lender; provided, that the Issuing Lender shall not
issue any Letter of Credit if, after giving effect to such issuance, (i) the
L/C Obligations would exceed the L/C Commitment or (ii) the aggregate amount of
the Available Revolving Credit Commitments would be less than zero.  Each Letter of Credit shall (i) be
denominated in Dollars and (ii) expire no later than the earlier of (x) the
first anniversary of its date of issuance and (y) the date which is five
Business Days prior to the Revolving Credit Termination Date, provided
that any Letter of Credit with a one-year term may provide for the renewal
thereof for additional one-year periods (which shall in no event extend beyond
the date referred to in clause (y) above).  All Existing Letters of Credit shall be
deemed to have been issued pursuant hereto, and from and after the Closing Date
shall be subject to and governed by the terms and conditions hereof.

(b)           No Issuing Lender shall at any time
be obligated to issue any Letter of Credit hereunder if (i) such issuance would
conflict with, or cause the Issuing Lender or any L/C Participant to exceed any
limits imposed by, any applicable Requirement of Law, (ii) such issuance would
violate one or more policies of the Issuing Lender applicable to letters of
credit generally or (iii) any order, judgment or decree of any Governmental
Authority or arbitrator shall by its terms purport to enjoin or restrain the
Issuing Lender from issuing such Letter of Credit, or any Law applicable to the
Issuing Lender or any request or directive (whether or not having the force of
Law) from any Governmental Authority with jurisdiction over the Issuing Lender
shall prohibit, or request that the Issuing Lender refrain from, the issuance
of letters of credit generally, or such Letter of Credit in particular.

3.2.  Procedure for Issuance and Amendment of
Letter of Credit.  (a) Each Letter of
Credit shall be issued or amended, as the case may be, upon the request of the
Borrower delivered to the Issuing Lender (with a copy to the Administrative
Agent) in the form of an Application, completed and signed by a Responsible
Officer of the Borrower.  Such
Application must be received by the Issuing Lender and the Administrative Agent
not later than 11:00 A.M., New York City time, at least two Business Days (or
such later date and time as the Administrative Agent and the Issuing Lender may
agree in a particular instance in their sole 

 42
 

discretion) prior
to the proposed issuance date or date of amendment, as the case may be.  In the case of a request for an initial
issuance of a Letter of Credit, such Application shall specify in form and
detail reasonably satisfactory to the Issuing Lender: (A) the proposed issuance
date of the requested Letter of Credit (which shall be a Business Day); (B) the
amount thereof; (C) the expiry date thereof; (D) the name and address of the
beneficiary thereof; (E) the documents to be presented by such beneficiary in
case of any drawing thereunder; (F) the full text of any certificate to be
presented by such beneficiary in case of any drawing thereunder; and (G) such
other matters as the Issuing Lender may reasonably require.  In the case of a request for an amendment of
any outstanding Letter of Credit, such Application shall specify in form and
detail reasonably satisfactory to the Issuing Lender (A) the Letter of Credit
to be amended; (B) the proposed date of amendment thereof (which shall be a
Business Day); (C) the nature of the proposed amendment; and (D) such other
matters as the Issuing Lender may reasonably require.  Additionally, the Borrower shall furnish to
the Issuing Lender and the Administrative Agent such other documents and
information pertaining to such requested Letter of Credit issuance or
amendment, including any Issuer Documents, as the Issuing Lender or the
Administrative Agent may reasonably require.

(b)           Promptly after receipt of any
Application, the Issuing Lender will confirm with the Administrative Agent (by
telephone or in writing) that the Administrative Agent has received a copy of
such Application from the Borrower and, if not, the Issuing Lender will provide
the Administrative Agent with a copy thereof. 
Unless the Issuing Lender has received written notice from any Lender or
the Administrative Agent, at least one Business Day prior to the requested date
of issuance or amendment of the applicable Letter of Credit, that one or more
applicable conditions contained in Section 4 shall not then be
satisfied, then, subject to the terms and conditions hereof, the Issuing Lender
shall, on the requested date, issue a Letter of Credit for the account of the
Borrower or enter into the applicable amendment, as the case may be, in each
case in accordance with the Issuing Lender’s usual and customary business
practices.  Immediately upon the issuance
of each Letter of Credit, each Lender shall be deemed to, and hereby
irrevocably and unconditionally agrees to, purchase from the Issuing Lender a
risk participation in such Letter of Credit in an amount equal to the product
of such Lender’s Revolving Credit Percentage times the amount of such
Letter of Credit.

(c)           Promptly after its delivery of any
Letter of Credit or any amendment to a Letter of Credit to an advising bank
with respect thereto or to the beneficiary thereof, the Issuing Lender will
also deliver to the Borrower and the Administrative Agent a true and complete
copy of such Letter of Credit or amendment.

3.3.  Drawings and Reimbursements; Funding of
Participations.  (a)  Upon receipt from the beneficiary of any
Letter of Credit of any notice of a drawing under such Letter of Credit, the
Issuing Lender shall notify the Borrower and the Administrative Agent
thereof.  The Borrower shall reimburse
the Issuing Lender, through the Administrative Agent, for the amount of any
drawing under a Letter of Credit not later than 1:00 P.M., New York City time,
on the date that such drawing is made (if the Borrower has received notice from
the Issuing Lender of such drawing prior to 10:00 A.M., New York City time, on
such date) or, if the Borrower has not received notice of such drawing prior to
such time on such date, then not later than 1:00 P.M., New York City time, on
(i) the Business Day that the Borrower 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 

 43
 

Business Day
immediately following the day that the Borrower receives such notice, if such
notice is not received prior to 10:00 A.M., New York City time, on the day
of such receipt (the date on which such reimbursement by the Borrower is due
pursuant to this sentence being referred to herein as the “Requested
Reimbursement Date”).  If the
Borrower fails to so reimburse the Issuing Lender by such time, the
Administrative Agent shall promptly notify each Lender of the Requested
Reimbursement Date, the amount of the unreimbursed drawing (the “Unreimbursed
Amount”), and the amount of such Lender’s Revolving Credit Percentage
thereof.  In such event, the Borrower
shall be deemed to have requested a borrowing of Base Rate Loans to be
disbursed on the Requested Reimbursement Date in an amount equal to the
Unreimbursed Amount, without regard to the minimum and multiples, and notice
periods, specified in Section 2.2 for the principal amount of Base Rate
Loans.  Such Base Rate Loans may from
time to time be converted to Eurodollar Loans, as determined by the Borrower
and notified to the Administrative Agent in accordance with Section 2.9,
provided that no Revolving Credit Loan shall be made as a Eurodollar Loan after
the day that is one month prior to the Revolving Credit Termination Date.  Any notice given by the Issuing Lender or the
Administrative Agent pursuant to this Section 3.3(a) may be given by
telephone if immediately confirmed in writing; provided that the lack of such
an immediate confirmation shall not affect the conclusiveness or binding effect
of such notice.

(b)           Each Lender (including the Lender
acting as Issuing Lender) shall upon any notice pursuant to Section 3.3(a)
make funds available to the Administrative Agent for the account of the Issuing
Lender at the Administrative Agent’s Office in an amount equal to its Revolving
Credit Percentage of the Unreimbursed Amount not later than 1:00 P.M., New York
City time, on the Business Day specified in such notice by the Administrative
Agent, whereupon, subject to the provisions of Section 3.3(a), each
Lender that so makes funds available shall be deemed to have made a Base Rate
Loan to the Borrower in such amount.  The
Administrative Agent shall remit the funds so received to the Issuing Lender.

(c)           If any drawing is made under a Letter
of Credit and is not reimbursed or refinanced on the date such drawing is made,
for any reason, the Borrower shall be deemed to have incurred  from the Issuing Lender an L/C Borrowing in the amount of
the Unreimbursed Amount that is not so reimbursed or refinanced, which L/C
Borrowing (i) shall bear interest at the rate applicable to Base Rate
Loans from and including the date that such drawing is paid by the Issuing Bank
to but excluding the earlier of the date that such Unreimbursed Amount is so
reimbursed or refinanced or the date that is the next Business Day following
the Requested Reimbursement Date and, if not so reimbursed or refinanced on or
prior to the date that is the next Business Day following the Requested
Reimbursement Date, then, from and after the date that is the next Business Day
following the Requested Reimbursement Date to but excluding the date so
reimbursed or refinanced, the rate applicable to Base Rate Loans plus 2% and
(ii) shall, on and after the date that is the next Business Day following
the Requested Reimbursement Date, be due and payable on demand.  In such event, each Lender’s payment to the
Administrative Agent for the account of the Issuing Lender pursuant to Section
3.3(b) shall be deemed payment in respect of its participation in such L/C
Borrowing and shall constitute an L/C Advance from such Lender in satisfaction
of its participation obligation under this Section 3.3.

(d)           Until each Lender funds its Loan or
L/C Advance pursuant to this Section 3.3 to reimburse the Issuing Lender
for any amount drawn under any Letter of Credit, interest in 

 44
 

respect of such
Lender’s Revolving Credit Percentage of such amount shall be solely for the
account of the Issuing Lender.

(e)           Each Lender’s obligation to make
Loans or L/C Advances to reimburse the Issuing Lender for amounts drawn under
Letters of Credit, as contemplated by this Section 3.3, shall be
absolute and unconditional and shall not be affected by any circumstance,
including (A) any set-off, counterclaim, recoupment, defense or other right
which such Lender may have against the Issuing Lender, the Borrower or any
other Person for any reason whatsoever, (B) the occurrence or continuance of a
Default, or (C) any other occurrence, event or condition, whether or not
similar to any of the foregoing; provided, however, that each
Lender’s obligation to make Loans pursuant to this Section 3.3 is
subject to the conditions set forth in Section 4.2 (other than delivery
by the Borrower of a Loan Notice).  No
such making of an L/C Advance shall relieve or otherwise impair the obligation
of the Borrower to reimburse the Issuing Lender for the amount of any payment
made by the Issuing Lender under any Letter of Credit, together with interest
as provided herein.

(f)            If any Lender fails to make
available to the Administrative Agent for the account of the Issuing Lender any
amount required to be paid by such Lender pursuant to the foregoing provisions
of this Section 3.3 by the time specified in Section 3.3(b), the
Issuing Lender shall be entitled to recover from such Lender (acting through
the Administrative Agent), on demand, such amount with interest thereon for the
period from the date such payment is required to the date on which such payment
is immediately available to the Issuing Lender at a rate per annum equal to the
greater of the Federal Funds Rate and a rate determined by the Issuing Lender
in accordance with banking industry rules on interbank compensation, plus any
administrative, processing or similar fees customarily charged by the Issuing
Lender in connection with the foregoing. 
If such Lender pays such amount (with interest and fees as aforesaid),
the amount so paid shall constitute such Lender’s Loan included in the relevant
borrowing or L/C Advance in respect of the relevant L/C Borrowing, as the case
may be.  A certificate of the Issuing
Lender submitted to any Lender (through the Administrative Agent) with respect
to any amounts owing under this paragraph (f) shall be conclusive absent
manifest error.

3.4.  Repayment of Participations.  (a)  At
any time after the Issuing Lender has made a payment under any Letter of Credit
and has received from any Lender such Lender’s L/C Advance in respect of such
payment in accordance with Section 3.3(b), if the Administrative Agent
receives for the account of the Issuing Lender any payment in respect of the
related Unreimbursed Amount or interest thereon (whether directly from the
Borrower or otherwise, including proceeds of cash collateral applied thereto by
the Administrative Agent), the Administrative Agent will distribute to such
Lender its Revolving Credit Percentage thereof (appropriately adjusted, in the
case of interest payments, to reflect the period of time during which such
Lender’s L/C Advance was outstanding) in the same funds as those received by
the Administrative Agent.

(b)           If any payment received by the
Administrative Agent for the account of the Issuing Lender pursuant to Section
3.3(b) is required to be returned under any of the circumstances described
in Section 10.8 (including pursuant to any settlement entered into by
the Issuing Lender in its discretion), each Lender shall pay to the
Administrative Agent for the

 45

account of the Issuing Lender its Revolving Credit Percentage thereof
on demand of the Administrative Agent, plus interest thereon from the date of
such demand to the date such amount is returned by such Lender, at a rate per
annum equal to the Federal Funds Rate from time to time in effect.

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

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

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

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

(iv)          any payment by the
Issuing Lender under such Letter of Credit against presentation of a draft or
certificate that does not strictly comply with the terms of such Letter of
Credit; or any payment made by the Issuing Lender under such Letter of Credit
to any Person purporting to be a trustee in bankruptcy, debtor-in-possession,
assignee for the benefit of creditors, liquidator, receiver or other representative
of or successor to any beneficiary or any transferee of such Letter of Credit,
including any arising in connection with any proceeding under any Debtor Relief
Law; or

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

3.6.  Role of
Issuing Lender.  Each Lender and the Borrower agree
that, in paying any drawing under a Letter of Credit, the Issuing Lender shall
not have any responsibility to obtain any document (other than any sight draft,
certificates and documents expressly required by the Letter of Credit) or to
ascertain or inquire as to the validity or accuracy of any such document or the
authority of the Person executing or delivering any such document.  None of the Issuing Lender, any Agent-Related
Person nor any of the respective correspondents, participants

 46
 

or assignees of the Issuing Lender shall be liable to any Lender for
(a) any action taken or omitted in connection herewith at the request or with
the approval of the Lenders or the Majority Lenders, as applicable; (b) any
action taken or omitted in the absence of gross negligence or willful misconduct;
or (c) the due execution, effectiveness, validity or enforceability of any
document or instrument related to any Letter of Credit or Application.  The Borrower hereby assumes all risks of the
acts or omissions of any beneficiary or transferee with respect to its use of
any Letter of Credit; provided, however, that this assumption is
not intended to, and shall not, preclude the Borrower’s pursuing such rights
and remedies as it may have against the beneficiary or transferee at law or
under any other agreement.  None of the
Issuing Lender, any Agent-Related Person, nor any of the respective
correspondents, participants or assignees of the Issuing Lender, shall be
liable or responsible for any of the matters described in clauses (i)
through (v) of Section 3.5; provided, however, that
anything in such clauses (i) through (v) to the contrary
notwithstanding, the Borrower may have a claim against the Issuing Lender, and
the Issuing Lender may be liable to the Borrower, to the extent, but only to
the extent, of any direct, as opposed to consequential or exemplary, damages
suffered by the Borrower which the Borrower proves were caused by the Issuing
Lender’s willful misconduct or gross negligence or the Issuing Lender’s willful
failure to pay under any Letter of Credit after the presentation to it by the
beneficiary of a sight draft and certificate(s) strictly complying with the
terms and conditions of a Letter of Credit.   In furtherance and not in limitation of the
foregoing, the Issuing Lender may accept documents that appear on their face to
be in order, without responsibility for further investigation, regardless of
any notice or information to the contrary, and the Issuing Lender shall not be
responsible for the validity or sufficiency of any instrument transferring or
assigning or purporting to transfer or assign a Letter of Credit or the rights
or benefits thereunder or proceeds thereof, in whole or in part, which may
prove to be invalid or ineffective for any reason.

3.7.  Cash
Collateral.  Upon the request of the
Administrative Agent, if, as of the Revolving Credit Termination Date, any
Letter of Credit for any reason remains outstanding and partially or wholly
undrawn, the Borrower shall immediately Cash Collateralize the then outstanding
amount of all L/C Obligations (in an amount equal to such outstanding amount
determined as of the Revolving Credit Termination Date).  Sections 2.8 and 8.2 set forth
certain additional requirements to deliver Cash Collateral hereunder.  To the extent that the Borrower is required
to Cash Collateralize L/C Obligations, the Borrower hereby grants to the
Administrative Agent, for the benefit of the Issuing Lender and the Lenders, a
security interest in all cash, deposit accounts and all balances therein and
all proceeds of the foregoing.  Such cash
collateral shall be maintained in blocked, interest bearing deposit accounts
with the Administrative Agent.

3.8.  Applicability
of ISP98 and UCP.  Unless otherwise expressly agreed
by the Issuing Lender and the Borrower when a Letter of Credit is issued
including any such agreement as applicable to an Existing Letter of Credit, (i)
the rules of the ISP shall apply to each standby Letter of Credit, and (ii) the
rules of the Uniform Customs and Practice for Documentary Credits, as most
recently published by the International Chamber of Commerce at the time of
issuance shall apply to each commercial Letter of Credit.

3.9.  Fees
and Other Charges.  (a)  The Borrower will pay to the Administrative
Agent, for the account of the Lenders, a fee on the daily amount available to
be drawn under all outstanding Letters of Credit issued for its account at a
per annum rate equal to the Applicable

 47
 

Margin then in effect with respect to Eurodollar Loans, to be shared
ratably among the Lenders in accordance with their respective Revolving Credit
Percentages and payable quarterly in arrears on each L/C Fee Payment Date after
the issuance date.  In addition, the
Borrower shall pay to the relevant Issuing Lender for its own account a
fronting fee on the daily amount available to be drawn under all outstanding
Letters of Credit issued by such Issuing Lender for the Borrower’s account at a
rate and at the times to be agreed upon by the Borrower and such Issuing
Lender.  For purposes of computing the
average daily amount available to be drawn under the Letters of Credit, the
amount of such Letters of Credit shall be determined in accordance with Section
1.3.

(b)           In
addition to the foregoing fees, the Borrower shall pay or reimburse each
Issuing Lender for such normal and customary costs and expenses as are incurred
or charged by such Issuing Lender in issuing, negotiating, effecting payment
under, amending or otherwise administering any Letter of Credit issued for the
account of the Borrower.

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

4.             CONDITIONS PRECEDENT

4.1.  Conditions
to Closing.  The occurrence of the
Closing Date is subject to the satisfaction on such date of the following
conditions precedent:

(a)           The
Administrative Agent’s receipt of the following, each of which shall be
originals or telecopies (followed promptly by originals) unless otherwise
specified, each properly executed by a Responsible Officer of the Borrower,
each dated the Closing Date (or, in the case of certificates of governmental
officials, a recent date before the Closing Date) and each in form and
substance reasonably satisfactory to the Administrative Agent:

(i)            executed counterparts
of this Agreement, sufficient in number for distribution to the Administrative
Agent, each Lender party hereto on the date hereof and the Borrower;

(ii)           a Note executed by the
Borrower in favor of each Lender requesting a Note so long as such request is
made at least 3 Business Days prior to the Closing Date;

(iii)          such certificates of
resolutions or other action, incumbency certificates and/or other certificates
of Responsible Officers of the Borrower as the Administrative Agent may reasonably
require evidencing the identity, authority and capacity of each Responsible
Officer thereof authorized to act as a Responsible Officer in connection with
this Agreement and the other Loan Documents to which the Borrower is a party;

(iv)          such documents and
certifications as the Administrative Agent may reasonably require to evidence
that the Borrower is duly organized or formed, and that the Borrower is validly existing, in good standing and qualified
to engage in business in the jurisdiction where the Borrower is organized;

 48
 

(v)           a Closing Certificate
of the Borrower with appropriate insertions and attachments, if any;

(vi)          a
certificate signed by a Responsible Officer on behalf of the Borrower either
(A) attaching copies of all consents, licenses and approvals required in
connection with the execution, delivery and performance by the Borrower and the
validity against the Borrower of the Loan Documents to which it is a party, and
such consents, licenses and approvals shall be in full force and effect, or (B)
stating that no such consents, licenses or approvals are so required;

(vii)         a
certificate signed by a Responsible Officer on behalf of the Borrower
certifying (A) that the conditions specified in Sections 4.2(a) and (b)
have been satisfied, and (B) that there
has been no event or circumstance since December 31, 2006 that has had or could
be reasonably expected to have a Material Adverse Effect; and

(viii)        the Guaranty executed by
each Guarantor.

(b)           Fees.  (i) 
The Administrative Agent and the Arrangers shall have received all fees
required to be paid by the Borrower on or prior to the Closing Date.

(ii)           The Borrower shall have
paid all fees, charges and disbursements of Bingham McCutchen LLP, as counsel
to the Administrative Agent (directly to such counsel if requested by the
Administrative Agent), to the extent required to be paid by the Borrower and
invoiced prior to the Closing Date.

(c)           Legal
Opinions.  The Administrative Agent
shall have received (i) the legal opinion of Robert Seelig, Esquire, counsel to
the Borrower and each of the Initial Guarantors, substantially in the form of Exhibit
F and (ii) the legal opinion of Conyers Dill & Pearman, Bermuda counsel
to the Borrower and each of the Initial Guarantors, substantially in the form
of Exhibit G.

(d)           Termination
of Existing Credit Facility.  The
Administrative Agent shall have received evidence (including, without
limitation, payoff letters), reasonably satisfactory to the Administrative
Agent in its reasonable discretion, that the Existing Credit Agreement has been or concurrently with the Closing Date
is being terminated.

(e)           Closing
Date.  The Closing Date shall occur
on or before June 30, 2007.

(f)            Material
Adverse Effect.  Up to and including
the Closing Date, since December 31, 2006 there has been no event or
circumstance that has had or could reasonably be expected to have a Material
Adverse Effect.

4.2.  Conditions
to Closing and Each Extension of Credit. 
The occurrence of the Closing Date and the agreement of each Lender to
make any extension of credit requested to be made by it hereunder on any date
(including, without limitation, its initial extension of credit or any
issuance, or increase in the amount of, any Letter of Credit but excluding
conversions or continuations of Loans) is subject to the satisfaction of the
following conditions precedent:

 49
 

(a)           Representations
and Warranties.  Each of the
representations and warranties made by the Borrower in Section 5 (other
than Section 5.5) or pursuant to any of the other Loan Documents shall
be true and correct in all material respects on and as of such date as if made
on and as of such date, except to the extent that they expressly relate to an
earlier date, in which case they shall be true and correct in all material
respects as of such earlier date.

(b)           No
Default.  No Default or Event of
Default shall have occurred and be continuing on such date or after giving
effect to the extensions of credit requested to be made on such date.

(c)           Borrowing
Request.  Except as provided in Section
3.3, the Administrative Agent shall have received a Borrowing Request or,
as applicable, an Application.

Each borrowing by and
issuance of a Letter of Credit on behalf of the Borrower hereunder shall
constitute a representation and warranty by the Borrower as of the date of such
extension of credit (including any issuance, or increase in the amount of, any
Letter of Credit) that the conditions contained in this Section 4.2 (a)
and (b) have been satisfied on and as of the date of the applicable
extension of credit.

5.             REPRESENTATIONS AND WARRANTIES

To
induce the Administrative Agent and the Lenders to enter into this Agreement
and to make the Loans and issue or participate in the Letters of Credit, the
Borrower hereby represents and warrants to the Administrative Agent and each
Lender that:

5.1.  Financial
Statements.

(a)           The
audited consolidated balance sheet of the Borrower and its consolidated
Subsidiaries, as at December 31, 2006 and the related consolidated statements
of income and of cash flows for the fiscal year ended on such date, reported on
and accompanied by unqualified reports from PricewaterhouseCoopers LLP or
another independent certified public accounting firm of nationally recognized
standing, present fairly in all material respects the consolidated financial
condition of the Borrower and its consolidated Subsidiaries, as at such date,
and the consolidated results of their operations and their consolidated cash
flows for such fiscal year then ended in accordance with GAAP applied
consistently throughout the periods involved (except as approved by the
aforementioned firm of accountants and disclosed therein).

(b)           The
unaudited consolidated balance sheet of the Borrower and its consolidated
Subsidiaries, as of and for the fiscal quarter ended March 31, 2007, and the
related unaudited consolidated statements of income and cash flows for such
fiscal quarters ended on such dates, present fairly in all material respects
the consolidated financial condition of the Borrower and its consolidated
Subsidiaries as at such dates, and the consolidated results of their operations
and their consolidated cash flows for the fiscal quarters then ended in
accordance with GAAP applied consistently throughout the periods involved
(except (x) as approved by the aforementioned firms of accountants and
disclosed therein or (y) for normal year-end audit adjustments and the absence
of footnotes).

 50
 

5.2.  Corporate
Existence; Compliance with Law.  The
Borrower and each of its Subsidiaries (a) is duly organized, validly existing
and in good standing under the Laws of the jurisdiction of its organization,
except to the extent that the failure of the Subsidiaries to be so organized,
validly existing and in good standing could not, in the aggregate, reasonably
be expected to have a Material Adverse Effect, (b) has the corporate or other
power and authority, and the legal right, to own and operate its Property, to
lease the Property it operates as lessee and to conduct the business in which
it is currently engaged, except to the extent that the failure to have such
power, authority and legal right could not, in the aggregate, reasonably be
expected to have a Material Adverse Effect, (c) is duly qualified as a foreign
corporation and in good standing under the Laws of each jurisdiction where its
ownership, lease or operation of Property or the conduct of its business
requires such qualification, except to the extent failure to so qualify or be
in good standing could not, in the aggregate, reasonably be expected to have a
Material Adverse Effect, and (d) is in compliance with all Requirements of Law,
including, without limitation, with respect to environmental laws, except to
the extent that the failure to comply therewith could not, in the aggregate,
reasonably be expected to have a Material Adverse Effect.

5.3.  Corporate
Power; Authorization; Enforceable Obligations.  The Borrower has the corporate or other power
and authority, and the legal right, to make, deliver and perform the Loan
Documents to which it is a party and to borrow hereunder.  The Borrower has taken all necessary corporate
or other action to authorize the execution, delivery and performance of the
Loan Documents to which it is a party and to authorize the borrowings on the
terms and conditions of this Agreement. 
No consent or authorization of, filing with, notice to or other act by
or in respect of, any Governmental Authority or any other Person is required in
connection with the borrowings hereunder or the execution, delivery,
performance, validity or enforceability of this Agreement or any of the other
Loan Documents, except consents, authorizations, filings and notices described
in Schedule 5.3, which consents, authorizations, filings and notices
have been obtained or made and are in full force and effect and except to the
extent failure to obtain any consents, authorizations, filings, and notices
could not, in the aggregate, reasonably be expected to have a Material Adverse
Effect.  Each Loan Document to which the
Borrower is a party has been duly executed and delivered on behalf of the
Borrower.  This Agreement constitutes,
and each other Loan Document to which the Borrower is a party upon execution
will constitute, a legal, valid and binding obligation of the Borrower,
enforceable against the Borrower in accordance with its terms, except as
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar Laws affecting the enforcement of
creditors’ rights generally and by general equitable principles (whether
enforcement is sought by proceedings in equity or at law).

5.4.  No
Legal Bar.  The execution, delivery
and performance of this Agreement and the other Loan Documents, the issuance of
Letters of Credit, the borrowings hereunder and the use of the proceeds thereof
will not violate any Requirement of Law or any Contractual Obligation of the
Borrower or any of its Subsidiaries and will not result in, or require, the
creation or imposition of any Lien on any of their respective properties or
revenues pursuant to any Requirement of Law or any such Contractual Obligation,
except to the extent such violation or Lien could not, in the aggregate,
reasonably be expected to have a Material Adverse Effect.

5.5.  No
Material Litigation.  No litigation,
investigation or proceeding of or before any arbitrator or Governmental
Authority is pending or, to the knowledge of the

 51
 

Borrower, threatened by or against the Borrower or any of its
Subsidiaries or against any of their respective properties or assets that (a)
purport to affect or pertain to this Agreement or any other Loan Document or
any of the transactions contemplated hereby or thereby, or (b) could reasonably
be expected to have a Material Adverse Effect.

5.6.  Ownership
of Property; Liens.  The Borrower and
each of its Subsidiaries has title in fee simple to, or a valid leasehold
interest in, all its real property, and good title to, or a valid leasehold
interest in, all its other Property, and none of such Property is subject to
any Lien except as permitted by Section 7.3, except to the extent such
defects in title could not, in the aggregate, reasonably be expected to have a
Material Adverse Effect.

5.7.  Intellectual
Property.  The Borrower and each of
its Subsidiaries owns, or is licensed to use, all Intellectual Property
material to the conduct of its business as currently conducted.  No material claim has been asserted and is
pending by any Person challenging or questioning the use of any Intellectual
Property or the validity or effectiveness of any Intellectual Property, nor
does the Borrower know of any valid basis for any such claim, other than claims
that could not, in the aggregate, reasonably be expected to have a Material
Adverse Effect.  The use of Intellectual
Property by the Borrower and its Subsidiaries does not infringe on the rights
of any Person in any material respect, except for infringements that could not,
in the aggregate, reasonably be expected to have a Material Adverse Effect.

5.8.  Taxes.  The Borrower and each of its Subsidiaries has
filed or caused to be filed all material Federal, state and other tax returns
that are required to be filed (taking into account any applicable extensions)
and has paid all taxes shown to be due and payable on said returns or on any
assessments made against it or any of its Property and all other material
taxes, fees or other charges imposed on it or any of its Property by any
Governmental Authority and, to the knowledge of the Borrower, no tax Lien has
been filed, and no claim is being asserted, with respect to any such tax, fee
or other charge, except (i) those in respect of which the amount or validity
are currently being contested in good faith by appropriate proceedings and with
respect to which reserves in conformity with SAP or GAAP, as applicable, have
been provided on the books of the Borrower or its Subsidiaries, as the case may
be, and (ii) any amount the failure of which to pay could not reasonably be
expected to result in a Material Adverse Effect.

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

5.10.  ERISA.  Except as could not reasonably be expected to
result in a Material Adverse Effect, neither a Reportable Event nor an “accumulated
funding deficiency” (within the meaning of Section 412 of the Code or
Section 302 of ERISA) has occurred during the five-year period prior to
the date on which this representation is made or deemed made with respect to
any Plan, and each Plan has complied in all material respects with the
applicable provisions of ERISA and the Code. 
No termination of a Single Employer Plan has occurred, and no Lien in

 52
 

favor of the PBGC or a Plan has arisen, during such five-year
period.  The present value of all accrued
benefits under each Single Employer Plan (based on those assumptions used to
fund such Plans) did not, as of the last annual valuation date prior to the
date on which this representation is made or deemed made, exceed the value of
the assets of such Plan allocable to such accrued benefits by an amount which
could reasonably be expected to result in a Material Adverse Effect.  Neither the Borrower nor any Commonly
Controlled Entity has had a complete or partial withdrawal from any
Multiemployer Plan that has resulted or could reasonably be expected to result
in a Material Adverse Effect.  Except as
could not reasonably be expected to result in a Material Adverse Effect, no
such Multiemployer Plan is in Reorganization or Insolvent.

5.11.  Investment
Company Act; Other Regulations.  The
Borrower is not an “investment company” within the meaning of the Investment
Company Act of 1940, as amended.  The
Borrower is not subject to regulation under any Requirement of Law (other than
Regulation X of the Board) which limits its ability to incur Indebtedness
hereunder.

5.12.  Use of
Proceeds.  The proceeds of the Loans
and the Letters of Credit shall be used for working capital and general
corporate purposes of the Borrower and its Subsidiaries, including, without
limitation, (a) acquisitions, (b) the issuance of Letters of Credit, (c)
refinancings of outstanding indebtedness, if any, of the Borrower and its
Subsidiaries (including under the Existing Credit Agreement and the Existing
Letters of Credit), and (d) for payment of fees and expenses incurred in
connection with this Agreement.

5.13.  Accuracy
of Information, etc.  No statement or
information contained in any document, certificate or statement furnished to
the Administrative Agent or the Lenders or any of them, by or on behalf of the
Borrower for use in connection with the transactions contemplated by this
Agreement or the other Loan Documents, taken as a whole contained, as of the
date such statement, information, document or certificate was so furnished, any
untrue statement of a material fact or omitted to state a material fact
necessary in order to make the statements contained therein not materially
misleading in light of the circumstances under which such statement,
information, document or certificate was made or furnished.  The projections and pro forma financial
information contained in the materials referenced above were prepared in good
faith based on assumptions believed by management of the Borrower to be
reasonable at the time made, it being recognized by the Lenders that such
financial information as it relates to future events is not to be viewed as
fact and that actual results during the period or periods covered by such
financial information may differ from the projected results set forth therein
by a material amount.

5.14.  Insurance
Regulatory Matters.  No License of
any Insurance Subsidiary, the loss of which could reasonably be expected to
have a Material Adverse Effect, is the subject of a proceeding for suspension
or revocation.  To the knowledge of the
Borrower, there is no sustainable basis for such suspension or revocation, and
no such suspension or revocation has been threatened by any Governmental
Authority.

5.15.  Indebtedness
and Liens.  As of the Closing Date,
(i) no Subsidiary of the Borrower had outstanding any Indebtedness that was
created, incurred or assumed after March 31, 2007,  except Indebtedness that would have been permitted by Section
7.2 (without giving

 53
 

effect to the Indebtedness permitted by Section 7.2(a)(i)) if
created, incurred or assumed by such Subsidiary on the Closing Date and (ii)
there does not exist (a) any Lien that was created, incurred or assumed after
March 31, 2007, upon any stock or Indebtedness of any Subsidiary to secure any
Debt of the Borrower or any of its Subsidiaries or any other Person (other than
the obligations hereunder) or (b) any Lien that was created, incurred or
assumed after March 31, 2007, upon any other Property, to secure any Debt of
the Borrower or any of its Subsidiaries or any other Person (other than the
obligations hereunder), except, in the case of (a) or (b), Liens that would
have been permitted by Section 7.3 hereof (without giving effect to the
Liens that would have been permitted by Section 7.3(i)(x)) if so
created, incurred or assumed on the Closing Date.

5.16.  Taxpayer Identification Number.  As of the date hereof, the Borrower’s true
and correct U.S. taxpayer identification number is set forth on Schedule
10.02.

6.             AFFIRMATIVE COVENANTS

The
Borrower hereby agrees that, from and after the Closing Date and so long as,
the Commitments remain in effect, any Letter of Credit remains outstanding, there
exists any unpaid Reimbursement Obligations or any principal or interest on any
Loan or any fee payable hereunder is owing to any Lender or the Administrative
Agent hereunder, the Borrower shall and shall cause each of its Subsidiaries
to:

6.1.  Financial
Statements.  Furnish to the
Administrative Agent (either electronically or with sufficient copies for
distribution by the Administrative Agent to each Lender):

(a)           (i) not later than the date required to be filed pursuant to the Act of
1934 (after giving effect to any extension permitted or granted by the SEC),
but in any event not later than 95 days after the end of each fiscal year of the Borrower ending subsequent to the
Closing Date, a copy of
the audited consolidated balance sheet of the Borrower and its consolidated
Subsidiaries as at the end of such fiscal year, and the related audited
consolidated statements of income and of cash flows for such fiscal year,
setting forth in each case in comparative form the figures as of the end of and
for the previous fiscal year, accompanied by an opinion by
PricewaterhouseCoopers LLP, or other independent certified public accounting
firm of nationally recognized standing, which report shall be prepared in
accordance with generally accepted auditing standards and applicable securities
laws and shall not be subject to a “going concern” or like qualification or
exception, or qualification as to the scope of the audit (for purposes hereof,
delivery of the Borrower’s annual report on Form 10-K (which shall be deemed delivered
on the date when such document is posted on the SEC’s website at www.sec.gov or
any replacement website) will be sufficient in lieu of delivery of such
financial statements); and (ii) not
later than the date required to be filed pursuant to the Act of 1934 (after
giving effect to any extension permitted or granted by the SEC), but in any
event not later than 60 days after the
end of each of the first three fiscal quarters of each fiscal year of the
Borrower ending subsequent to the Closing Date, a copy of the unaudited consolidated balance sheet of the
Borrower and its consolidated Subsidiaries as at the end of such fiscal quarter
and the related unaudited consolidated statements of income and of cash flows
for such fiscal quarter and the portion of the fiscal year through the end of
such fiscal quarter, setting forth in each case in

 54
 

comparative form the figures as of the end of and for the corresponding
period in the previous year, certified by a Responsible Officer on behalf of
the Borrower as being fairly stated in all material respects in accordance with
GAAP (subject to normal year-end audit adjustments and the absence of
footnotes) (for purposes hereof, delivery of the Borrower’s Quarterly Report on
Form 10-Q (which shall be deemed delivered on the date when such document is
posted on the SEC’s website at www.sec.gov or any replacement website) will be
sufficient in lieu of delivery of such financial statements and
certifications); all such financial statements, together with notes to such
financial statements, to fairly present in all material respects the financial
condition and income and cash flows of the subject thereof as at the dates and
for the periods covered thereby in accordance with GAAP applied consistently
throughout the periods reflected therein and with prior periods (except (x) as
approved by such accountants or officer, as the case may be, and disclosed
therein or (y) in the case of unaudited financial statements, subject to normal
year-end adjustments and the absence of footnotes);

(b)           (i)
not later than the date required to be filed pursuant to the Act of 1934 (after
giving effect to any extension permitted or granted by the SEC), but in any event not later than 95 days after the end of each fiscal year of OneBeacon
Limited ending subsequent to the Closing Date (so long as OneBeacon
Limited is required to be consolidated on the balance sheet of the Borrower in
accordance with GAAP), a copy of the audited consolidated balance sheet of
OneBeacon Limited and its consolidated Subsidiaries as at the end of such
fiscal year of OneBeacon Limited ending subsequent to the Closing Date, and the
related audited consolidated statements of income and of cash flows for such
fiscal year, setting forth in each case in comparative form the figures for the
previous fiscal year, accompanied by an opinion by PricewaterhouseCoopers LLP,
or other independent certified public accounting firm of nationally recognized
standing, which report shall be prepared in accordance with generally accepted
auditing standards and applicable securities laws and shall not be subject to a
“going concern” or like qualification or exception, or qualification as to the
scope of the audit (for purposes hereof, delivery of OneBeacon Limited’s annual
report on Form 10-K (which shall be deemed delivered on the date when such
document is posted on the SEC’s website at www.sec.gov or any replacement
website) will be sufficient in lieu of delivery of such financial statements);
and (ii) not later than the date
required to be filed pursuant to the Act of 1934 (after giving effect to any
extension permitted or granted by the SEC), but in any event not later than 60
days after the end of each of the first
three fiscal quarters of each fiscal year of OneBeacon Limited ending
subsequent to the Closing Date (so long as OneBeacon Limited is required
to be consolidated on the balance sheet of the Borrower in accordance with
GAAP), a copy of the unaudited
consolidated balance sheet of OneBeacon Limited and its consolidated
Subsidiaries as at the end of such fiscal quarter and the related unaudited
consolidated statements of income and of cash flows for such fiscal quarter and
the portion of the fiscal year through the end of such fiscal quarter, setting
forth in each case in comparative form the figures as of the end of and for the
corresponding period in the previous fiscal year, certified by a Responsible
Officer on behalf of OneBeacon Limited as being fairly stated in all material
respects in accordance with GAAP (subject to normal year-end audit
adjustments and the absence of footnotes) (for purposes hereof, delivery of
OneBeacon Limited’s Quarterly Report on Form 10-Q (which shall be deemed
delivered on the date when such document is posted on the SEC’s website at
www.sec.gov or any replacement website) will be sufficient in lieu of delivery
of such financial statements and certifications); all such financial
statements, together with notes to such financial statements, to fairly present
in all material respects the financial condition and income and cash flows of
the

 55
 

subject thereof as at the dates and for the periods covered thereby in
accordance with GAAP applied consistently throughout the periods reflected
therein and with prior periods (except (x) as approved by such accountants or
officer, as the case may be, and disclosed therein or (y) in the case of
unaudited financial statements, subject to normal year-end adjustments and the
absence of footnotes);

(c)           not
later than the date required by Law to be prepared (or such later date as may
be allowed by the applicable Governmental Authority), but in any event not later than 95 days after the end of each fiscal year of (i) OneBeacon Insurance Group,
copies of the unaudited combined Annual Statement of OneBeacon Insurance Group,
certified by a Responsible Officer on behalf of OneBeacon Limited; provided,
that any such combined Annual Statement shall only be required to be so
furnished on any date if OneBeacon Limited is required to be consolidated on
the balance sheet of the Borrower in accordance with GAAP on such date, and
(ii) a Material Insurance Subsidiary (as of the date of delivery pursuant
hereto), copies of the unaudited Annual Statement of such Material Insurance
Subsidiary, certified by a Responsible Officer on behalf of such Material
Insurance Subsidiary; all such statements to be prepared in accordance with SAP
consistently applied throughout the periods reflected therein and, if required
by the applicable Governmental Authority, audited and certified by independent
certified public accounting firm of recognized national standing (it being
understood that delivery of audited statements shall be made within 10 days
following the delivery of such statements to the applicable Governmental
Authority); provided, however, that in the case of Sirius, such
Annual Statement shall be due not later than 150 days after the end of each
fiscal year;

(d)           not
later than the date required by Law to be prepared (or such later date as may
be allowed by the applicable Governmental Authority), but in any event not later than 70 days after the end of each
interim financial period of each Material Insurance Subsidiary in respect of
which an Interim Statement is required to be prepared (as of the date delivery
of such Interim Statement is required), copies of the Interim Statement of such
Material Insurance Subsidiary for such interim financial period, all such
statements to be prepared in accordance with SAP consistently applied
throughout the period reflected herein; provided, that, in the
case of Sirius, such Interim Statement shall be due not later than 90 days
after the end of such interim period;

(e)           within
15 days after being delivered to any Material Insurance Subsidiary subsequent
to the Closing Date, any final Report on Examination issued by the applicable
Department or the NAIC that results in material adjustments to the financial
statements referred to in paragraphs (c) or (d) above;

(f)            to
the extent such a statement is required by Law to be prepared, within 10 days
following the delivery to the applicable Department, a copy of each “Statement
of Actuarial Opinion” and “Management Discussion and Analysis” for a Material
Insurance Subsidiary which is provided to the applicable Department as to the
adequacy of loss reserves of such Material Insurance Subsidiary, such opinion
to be in the format prescribed by the insurance code of the state of domicile
of such Material Insurance Subsidiary; and

(g)           promptly
after the Borrower’s receipt thereof, subject to any restrictions imposed by
such independent accountants, copies of any management letters submitted to the

 56
 

board of directors (or the audit committee of the board of directors)
of the Borrower by independent accountants in connection with the annual audit
of the Borrower or any of its Subsidiaries.

6.2.  Certificates;
Other Information.  Furnish to the
Administrative Agent (either electronically or with sufficient copies for
distribution by the Administrative Agent to each Lender) or, in the case of clause
(d), to the relevant Lender:

(a)           within 5 Business Days after the delivery of
the audited financial statements referred to in Section 6.1(a)(i), a
certificate of the independent certified public accounting firm reporting on
such financial statements stating that in making the examination necessary therefor
no knowledge was obtained of any Default or Event of Default (it being
understood that (i) such certificate shall only be required if delivery by such
independent certified public accounting firm of such a certificate is not
prohibited by its policies and (ii) any such certificate may be limited in
scope and qualified in accordance with customary practices of the accounting
profession), except as specified in such certificate;

(b)           within 5 Business Days after the deadline for the
delivery of any financial statements pursuant to Section 6.1(a),
(i) a certificate of a Responsible Officer of the Borrower stating that such
Responsible Officer has obtained no knowledge of any continuing Default or
Event of Default except as specified in such certificate and (ii) a Compliance
Certificate containing all information and calculations necessary for
determining compliance by the Borrower with Section 7.1 and OneBeacon
Limited with Section 7.2(b), if applicable, as of the last day of the
fiscal quarter or fiscal year of the Borrower;

(c)           within
10 days after the same are filed with the SEC (unless posted on the SEC’s
website at www.sec.gov or any replacement website), all reports and filings on
Forms 10-K, 10-Q and 8-K that the Borrower may make to, or file with, the SEC,
including any request of an extension of time for the filing of any such
reports; and

(d)           promptly,
such additional financial and other information as the Administrative Agent or
any Lender may from time to time reasonably request.

(e)           The
Borrower hereby acknowledges that (a) unless otherwise directed by the
Borrower, the Administrative Agent and/or the Arrangers will make available to
the Lenders and the Issuing Bank materials and/or information provided by or on
behalf of the Borrower hereunder (collectively, “Borrower Materials”) by
posting the Borrower Materials on IntraLinks or another similar electronic
system (the “Platform”), subject to confidentiality undertakings
reasonably acceptable to the Borrower and the Arrangers, and (b) certain of the
Lenders may be “public-side” Lenders (i.e.,
Lenders that do not wish to receive material non-public information with
respect to the Borrower or its securities) (each, a “Public Lender”).  The Borrower hereby agrees that (w) all
Borrower Materials that are to be made available to Public Lenders shall be
clearly and conspicuously marked “PUBLIC” which, at a minimum, shall mean that
the word “PUBLIC” shall appear prominently on the first page thereof; (x) by
marking Borrower Materials “PUBLIC,” the Borrower shall be deemed to have
authorized the Administrative Agent, the Arrangers, the Issuing Bank and the
Lenders to treat such Borrower Materials as either publicly available
information or not material information (although it may be sensitive

 57
 

and proprietary) with respect to the Borrower or its securities for
purposes of United States Federal and state securities laws; (y) all Borrower
Materials marked “PUBLIC” are permitted to be made available through a portion
of the Platform designated “Public Investor;” and (z) the Administrative Agent
and the Arrangers shall be entitled to treat any Borrower Materials that are
not marked “PUBLIC” as being suitable only for posting on a portion of the
Platform not designated “Public Investor.” 
Notwithstanding any of the foregoing, if the Borrower also delivers any
materials and/or information pursuant to this Section 6.2(e) in paper
format to the Administrative Agent, such paper materials shall be deemed to be
Borrower Materials for all purposes. 
Nothing in this Section 6.2(e) shall limit the obligations of the
Administrative Agent and the Lenders under Section 10.16.

6.3.  Payment
of Obligations.  Pay, discharge or
otherwise satisfy at or before maturity or before they become delinquent, as
the case may be, all its material obligations of whatever nature (other than
Indebtedness), except where the amount or validity thereof is currently being
contested in good faith by appropriate proceedings and reserves in conformity
with GAAP with respect thereto have been provided on the books of the Borrower
or its Subsidiaries, as the case may be; provided, that the Borrower
may, in the ordinary course of business, extend payments on those payables if
beneficial to the operation of their businesses.

6.4.  Conduct
of Business and Maintenance of Existence, etc.  (a) Except as otherwise would not be a
Fundamental Change (i) with respect to each Subsidiary of the Borrower,
preserve, renew and keep in full force and effect its corporate existence and
(ii) with respect to the Borrower and each of its Subsidiaries, take all
reasonable action to maintain all licenses, permits, rights, privileges and
franchises necessary or desirable in the normal conduct of its business,
except, in the case of clause (i) above and clause (ii) above, to
the extent that failure to do so could not reasonably be expected to have a
Material Adverse Effect; and (b) comply with all Contractual Obligations (other
than in respect of Indebtedness) and 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.

6.5.  Maintenance
of Property; Insurance.  (a)  Keep all Property and systems useful and
necessary in its business in good working order and condition, ordinary wear
and tear excepted and (b) maintain with financially sound and reputable
insurance companies (other than with the Borrower or its Subsidiaries)
insurance on all its Property in at least such amounts and against at least
such risks (but including in any event public liability, product liability and
business interruption) as are usually insured against in the same general area
by companies engaged in the same or a similar business (it being understood
that, to the extent consistent with prudent business practices of Persons
carrying on a similar business in a similar location, a program of
self-insurance for first and other loss layers may be utilized).

6.6.  Inspection
of Property; Books and Records; Discussions.  (a) 
Keep proper books of records and account in which full, true and correct
entries in conformity with GAAP (or SAP as applicable) and all Requirements of
Law shall be made of all material dealings and transactions in relation to its
business and activities and (b) upon reasonable prior notice, permit
representatives of the Administrative Agent (who may be accompanied by
representatives of other Lenders) and, during the continuance of an Event of
Default, any Lender to (x) visit and inspect any of its properties, (y) during
the continuance of an Event of Default, conduct

 58
 

reasonable examinations of (and, with the consent of the Borrower, such
consent not to be unreasonably withheld, make abstracts from) any of its books
and records at any reasonable time and as often as may reasonably be requested and
(z) discuss the business, operations, properties and financial and other
condition of the Borrower with officers and employees of the Borrower.  It is understood that (i) any information
obtained by the Administrative Agent or any Lender in any visit or inspection
pursuant to this Section 6.6 shall be subject to the confidentiality
requirements of Section 10.16, (ii) the Borrower may impose, with
respect to any Lender or any Affiliate of any Lender reasonably deemed by the
Borrower to be engaged significantly in a business which is directly
competitive with any material business of the Borrower and its Subsidiaries,
reasonable restrictions on access to proprietary information of the Borrower
and its Subsidiaries and (iii) the Lenders will coordinate their visits through
the Administrative Agent with a view to preventing the visits provided for by
this Section 6.6 from becoming unreasonably burdensome to the Borrower
and its Subsidiaries.

6.7.  Notices.  Give notice to the Administrative Agent (it
being agreed that the Administrative Agent shall, upon receipt of such notice,
notify each Lender thereof) of the following within the time periods specified:

(a)           Promptly
after any Responsible Officer of the Borrower obtains knowledge thereof, the
occurrence of any Default or Event of Default;

(b)           Within
five days after any Responsible Officer of the Borrower obtains knowledge
thereof, the occurrence of:

(i)            any default or event
of default under any Contractual Obligation (other than in respect of
Indebtedness) of the Borrower or any of its Subsidiaries or any litigation,
investigation or proceeding which may exist at any time between the Borrower or
any of its Subsidiaries and any Governmental Authority, that in either case, if
not cured or if adversely determined, as the case may be, could reasonably be
expected to have a Material Adverse Effect; and

(ii)           (A) any litigation or
proceeding affecting the Borrower or any of its Subsidiaries (other than
claims-related litigation involving an Insurance Subsidiary) in which (x) the
amount involved (and not covered by insurance) is $50,000,000 or more or (y) in
which injunctive or similar relief is sought that could reasonably be expected
to have a Material Adverse Effect and (B) any claims-related litigation
affecting any Insurance Subsidiary which could reasonably be expected to have a
Material Adverse Effect; and

(c)           As
soon as possible and, in any event, within 30 days after a Responsible Officer
of the Borrower obtains knowledge thereof: 
(A) the occurrence of any Reportable Event with respect to any Plan, a
failure to make any required contribution to a Plan, the creation of any Lien
in favor of the PBGC or a Plan or any withdrawal from, or the termination,
Reorganization or Insolvency of, any Multiemployer Plan or (B) the institution
of proceedings or the taking of any other action by the PBGC or the Borrower or
any Commonly Controlled Entity or any Multiemployer Plan with respect to the
withdrawal from, or the termination, Reorganization or Insolvency of, any Plan.

 59
 

Each notice
pursuant to this Section 6.7 shall be accompanied by a statement of a
Responsible Officer on behalf of the Borrower setting forth details of the
occurrence or such default referred to therein and stating what action the
Borrower or the relevant Subsidiary proposes to take with respect thereto.

6.8.  Taxes.  Pay, discharge, or otherwise satisfy before
the same shall become overdue, all taxes, assessments and other governmental
charges imposed upon it and its real estate, sales and activities, or any part
thereof, or upon the income or profits therefrom, other than where failure to
pay such taxes could not reasonably be expected to result in a Material Adverse
Effect; provided that any such tax, assessment, charge, levy or claim
need not be paid if the validity or amount thereof shall currently be contested
in good faith by appropriate proceedings and reserves in conformity with SAP or
GAAP, as applicable, have been provided on the books of the Borrower and its
Subsidiaries, as the case may be.

6.9.  Use of
Proceeds.  Use the proceeds of the
Loans and the Letters of Credit solely for the purposes set forth in Section
5.12.

6.10.  Further
Assurances.  The Borrower will, and
will cause each of its Subsidiaries to, cooperate with the Lenders and the Administrative
Agent and execute such further instruments and documents as the Lenders or the
Administrative Agent shall reasonably request to give effect to the
transactions contemplated by this Agreement and the other Loan Documents.

7.             NEGATIVE COVENANTS

The
Borrower hereby agrees that, from and after the Closing Date and so long as the
Commitments remain in effect, any Letter of Credit remains outstanding, there
exist any unpaid Reimbursement Obligations or any principal or interest on any
Loan or any fee payable hereunder is owing to any Lender or the Administrative
Agent hereunder:

7.1.  Financial
Condition Covenants.

(a)           Maintenance
of Consolidated Net Worth.  The
Borrower shall not permit its Consolidated Net Worth, as of the end of any
fiscal quarter, commencing with the first fiscal quarter ending after the
Closing Date, to be less than the sum of (i) sixty-five percent (65%) of
Consolidated Net Worth of the Borrower as at the fiscal quarter ended March 31,
2007 (provided that if OneBeacon Limited is not consolidated on a balance sheet
of the Borrower in accordance with GAAP as of the end of any such fiscal
quarter after the fiscal quarter ended March 31, 2007, the amount in this clause
(i) shall be adjusted to remove sixty-five percent (65%) of the OneBeacon
Limited minority interests at March 31, 2007), plus (ii) fifty percent (50%) of
positive Consolidated Net Income for each fiscal quarter ending after March 31,
2007.

(b)           Maintenance
of Total Consolidated Debt to Total Consolidated Capitalization Ratio. The
Borrower shall not permit its Total Consolidated Debt to Total Consolidated
Capitalization Ratio, as of the end of any fiscal quarter, commencing with the
first fiscal quarter ending after the Closing Date, to exceed thirty-five
percent (35%).  Notwithstanding the
foregoing, in the event there shall be a breach of this financial covenant, at
any time that the (i) Fund American Notes are guaranteed by the Borrower, (ii)
the Borrower no

 60

longer
consolidates OneBeacon Limited in its consolidated financial statements in
accordance with GAAP, and (iii) such breach would not have occurred if the Fund
American Notes were no longer guaranteed by the Borrower, then such breach
shall not result in the occurrence of an Event of Default under Section
8.1(c) until a period of up to 180 days (“Cure Period”) has passed
since the occurrence of such breach; provided that, during such Cure
Period, (x) the Total Consolidated Debt to Total Consolidated Capitalization
Ratio shall not exceed thirty-five percent (35%) on a pro forma basis excluding
the Indebtedness attributable to the guarantee of the Fund American Notes and
(y) Fund American maintains investment grade senior unsecured credit ratings on
the Fund American Notes from at least two of the following: Moody’s, S&P
and Fitch.

7.2.  Limitation on Indebtedness.  (a) The Borrower will not permit any of its
Subsidiaries (other than OneBeacon Limited and its Subsidiaries) to create,
incur or assume or suffer to exist any Indebtedness, except:

(i)            Indebtedness
outstanding as of the Closing Date and any refinancings, refundings, renewals
or extensions thereof (without any increase in the principal amount thereof,
other than by the amount of any necessary pre-payment premiums, unpaid accrued
interest and other costs of refinancing, or any shortening of the final
maturity of any principal amount thereof to a date prior to the Revolving
Credit Termination Date);

(ii)           Indebtedness of any
Insurance Subsidiary incurred or issued in the ordinary course of its business
or in securing insurance-related obligations (that do not constitute
Indebtedness) of such Insurance Subsidiary and letters of credit, bank
guarantees, surety bonds or similar instruments issued for the account of any
Insurance Subsidiary in the ordinary course of its business or in securing
insurance-related obligations (that do not constitute Indebtedness) of such
Insurance Subsidiary;

(iii)          Indebtedness in respect
of letters of credit, bank guarantees, surety and appeal bonds, or performance
bonds or other obligations of a like nature arising in the ordinary course of
business and not for capital raising purposes and issued for the account of any
Non-Regulated Operating Subsidiary;

(iv)          short-term Indebtedness
(i.e. with a maturity of less than one year when issued, provided that such
Indebtedness may include an option to extend for up to an additional one year
period) of any Insurance Subsidiary incurred to provide short-term liquidity to
facilitate claims payment in the event of catastrophe;

(v)           Indebtedness of a
Subsidiary acquired after the Closing Date or a corporation merged into or
consolidated with a Subsidiary after the Closing Date and Indebtedness assumed
in connection with the acquisition of assets, which Indebtedness, in each case,
exists at the time of such acquisition, merger or consolidation and is not
created in contemplation of such event, as well as any refinancings, refunds,
renewals or extensions of such Indebtedness (without increase in the principal
amount thereof other than by the amount of any

 61
 

necessary pre-payment premiums, unpaid accrued
interest and other costs of refinancing);

(vi)          Indebtedness owing or
issued by a Subsidiary to any other Subsidiary or to the Borrower;

(vii)         Guarantee Obligations
made by the Guarantors in respect of the obligations of the Borrower or by a
Subsidiary in respect of obligations of another Subsidiary;

(viii)        Indebtedness under the
Loan Documents;

(ix)           Indebtedness of any
Guarantor;

(x)            Indebtedness represented
by Qualified Securities, Trust Preferred Securities or Mandatory Convertible
Securities (except to the extent such Indebtedness is included in the
calculation of Total Consolidated Debt); and

(xi)           other Indebtedness of
such Subsidiaries, provided that at the time such Indebtedness is
incurred or issued, the aggregate principal amount of such Indebtedness when
added to all other Indebtedness incurred or issued pursuant to this clause
(xi) and then outstanding, does not exceed 15% of the Consolidated Net
Worth of the Borrower; and

(b)           At any time when
OneBeacon Limited is required to be consolidated on the balance sheet of the
Borrower in accordance with GAAP, the Borrower will not permit the OneBeacon
Limited Debt to Capitalization Ratio (i) as of the end of any fiscal quarter
ending after November 14, 2006 and prior to November 14, 2008 to be greater
than thirty-seven and one half of one percent (37.5%) and (ii) as of the end of
any fiscal quarter ending on or after November 14, 2008 to be greater than
thirty-five percent (35%).

7.3.  Limitation on Liens.  The Borrower will not, and will not permit
any of its Subsidiaries to, create, incur, assume or suffer to exist (a) any
Lien upon any stock or indebtedness of any Subsidiary, whether owned on the date
of this Agreement or hereafter acquired, to secure any Debt of the Borrower or
any of its Subsidiaries or any other Person (other than the obligations
hereunder) or (b) any Lien upon any other Property of the Borrower or its
Subsidiaries, whether owned or leased on the date of this Agreement, or
thereafter acquired, to secure any Debt of the Borrower or any of its
Subsidiaries or any other Person (other than the obligations hereunder),
except:

(i)            (x) any Lien existing
on the date of this Agreement or (y) any Lien upon stock or Indebtedness or
other Property of any Person existing at the time such Person becomes a
Subsidiary or existing upon stock or Indebtedness of a Subsidiary or any other
Property at the time of acquisition of such stock or Indebtedness or other
Property (provided that such Lien was not created in connection with the
acquisition of such Person or such Property), and any extension, renewal or
replacement (or successive extensions, renewals or replacements) in whole or in
part of any such Lien in clauses (x) or (y) above;

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provided, however, that the
principal amount of Debt secured by such Lien shall not exceed the principal
amount of Debt so secured at the time of such extension, renewal or
replacement; and provided,  further, that such Lien shall be
limited to all or such part of the stock or Indebtedness or other Property
which secured the Lien so extended, renewed or replaced;

(ii)           any Permitted Liens;
and

(iii)          any Lien upon any
Property if the aggregate amount of all Debt then outstanding secured by such
Lien and all other Liens permitted pursuant to this clause (iii) does
not exceed 10% of the total consolidated stockholders’ equity (including
preferred equity) of the Borrower as shown on the audited consolidated balance
sheet contained in the latest annual report to stockholders of the Borrower; provided
that Debt secured by Liens permitted by clauses (i) and (ii)
shall not be included in the amount of such secured Debt.

7.4.  Limitation on Changes in Fiscal Periods.  The Borrower shall not permit its fiscal year
to end on a day other than December 31 or change its method of determining
fiscal quarters.

7.5.  Limitation on Lines of Business.  The Borrower shall not engage to any extent
that is material for the Borrower and its Subsidiaries, taken as a whole, in
any business, either directly or through any Subsidiary, other than a Principal
Business.

7.6.  Guarantors.  The Borrower shall not permit any Guarantor
or any Subsidiary of any Guarantor to merge, consolidate, liquidate, wind-up or
dissolve itself, or make a transfer of material assets, other than any such
transaction or transactions pursuant to which (a) the surviving Person of any
such merger or consolidation is, or any assets transferred in connection with
such liquidation, winding-up, dissolution or transfer are transferred to, a
Guarantor (including a Subsidiary of the Borrower that becomes a Guarantor in
connection with such transaction) or a Subsidiary of a Guarantor (including a
person that will become a Subsidiary of a Guarantor in connection with such
transaction) or (b) after giving effect to any such merger, consolidation,
liquidation, winding-up, dissolution or transfer, the aggregate Consolidated
Net Worth of all Guarantors (including any Person that becomes a Guarantor or
Subsidiary of a Guarantor in connection with such transaction but excluding for
purposes of calculating the aggregate Consolidated Net Worth of all Guarantors
any outstanding Indebtedness of the Borrower to a Guarantor (to the extent
reflected as an asset of such Guarantor in the calculation of such Consolidated
Net Worth) is not less than the amount then required by Section 7.1(a),
on a pro forma basis as of the end of the most recently completed fiscal
quarter for which financial statements have been delivered to the
Administrative Agent pursuant to Section 6.1(a).

8.             EVENTS OF DEFAULT

8.1.  Events
of Default.  If any of the following
events shall occur and be continuing:

(a)           The Borrower shall fail
to pay any principal of any Loan made to the Borrower or Reimbursement
Obligation owing by the Borrower when due in accordance with the

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terms hereof; or
the Borrower shall fail to pay any interest on any Loan made to the Borrower or
Reimbursement Obligation owing to the Borrower, or any other amount payable by
the Borrower hereunder or under any other Loan Document, within three Business
Days after any such interest or other amount becomes due in accordance with the
terms hereof; or

(b)           The Borrower shall
default in the observance or performance of any agreement contained in Section
6.7(a) or Section 7; or

(c)           (i) The Borrower, any
Guarantor, White Mountains Re or any of the Borrower’s Material Insurance
Subsidiaries shall voluntarily commence any case, proceeding or other action
(A) under any Debtor Relief Law, (B) seeking appointment of a receiver,
trustee, custodian, conservator or other similar official for it or for all or
any substantial part of its assets, or the Borrower, any Guarantor, White
Mountains Re or any of the Borrower’s Material Insurance Subsidiaries shall
make a general assignment for the benefit of its creditors; or (ii) there shall
be commenced against the Borrower, any Guarantor, White Mountains Re or any of
the Borrower’s Material Insurance Subsidiaries any case, proceeding or other action
under any Debtor Relief Law that (A) results in the entry of an order for
relief or any such adjudication or appointment or (B) remains undismissed,
undischarged or unbonded for a period of 60 days; or (iii) the Borrower, any
Guarantor, White Mountains Re or any of the Borrower’s Material Insurance
Subsidiaries shall take any corporate action to authorize or effect any of the
acts set forth in clause (i), or (ii), above; or (iv) the
Borrower, any Guarantor, White Mountains Re or any of the Borrower’s Material
Insurance Subsidiaries shall generally not, or shall be unable to, or shall
admit in writing its inability to, pay its debts as they become due; or

(d)           A Change of Control; or

(e)           A Fundamental Change;
or

(f)            Any representation or
warranty made or deemed made by the Borrower herein or in any other Loan
Document or that is contained in any certificate, document or financial or
other statement furnished by it at any time under or in connection with this
Agreement or any such other Loan Document shall prove to have been inaccurate
in any material respect on or as of the date made or deemed made or furnished;
or

(g)           The Borrower shall
default in the observance or performance of any other agreement, covenant, term
or condition contained in this Agreement or any other Loan Document (not
specified in Sections 8.1(a), 8.1(b) or 8.1(f)); or

(h)           The Borrower or any of
its Subsidiaries shall (i) default in making any payment of any principal of
any Indebtedness (including, without limitation, any Guarantee Obligation, but
excluding the Loans and Reimbursement Obligations) on the scheduled or original
due date with respect thereto (after giving effect to any applicable grace
periods); or (ii) default in making any payment of any interest on any such
Indebtedness beyond the period of grace, if any, provided in the instrument or
agreement under which such Indebtedness was created; or (iii) default in the
observance or performance of any other agreement or condition relating to any
such Indebtedness or contained in any instrument or agreement evidencing,
securing or relating thereto, the effect of which default is to cause, or to
permit the holder or

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beneficiary of
such Indebtedness (or a trustee or agent on behalf of such holder or
beneficiary) to cause, with the giving of notice if required, such Indebtedness
to become due prior to its stated maturity or to become subject to a mandatory
offer to purchase by the obligor thereunder as a result of the occurrence of
such default thereunder or (in the case of any such Indebtedness constituting a
Guarantee Obligation) to become payable; provided, that a default
described in clause (i), (ii) or (iii) of this paragraph
(h) shall not at any time constitute an Event of Default unless, at such
time, one or more defaults of the type described in clauses (i), (ii)
and (iii) of this paragraph (h) shall have occurred and be
continuing with respect to Indebtedness the outstanding principal amount of
which exceeds in the aggregate $50,000,000; or

(i)            (i) Any Person
shall engage in any “prohibited transaction” (as defined in Section 406 of
ERISA or Section 4975 of the Code) involving any Plan, (ii) any “accumulated
funding deficiency” (as defined in Section 302 of ERISA), whether or not
waived, shall exist with respect to any Plan or any Lien in favor of the PBGC
or a Plan shall arise on the assets of the Borrower or any Commonly Controlled
Entity, (iii) a Reportable Event shall occur with respect to, or proceedings
shall commence to have a trustee appointed, or a trustee shall be appointed, to
administer or to terminate, any Single Employer Plan, which Reportable Event or
commencement of proceedings or appointment of a trustee is, in the reasonable
opinion of the Majority Lenders, likely to result in the termination of such
Plan for purposes of Title IV of ERISA, (iv) any Single Employer Plan shall
terminate for purposes of Title IV of ERISA or, (v) the Borrower or any
Commonly Controlled Entity shall, or in the reasonable opinion of the Majority
Lenders is likely to, incur any liability in connection with a withdrawal from,
or the Insolvency or Reorganization of, a Multiemployer Plan and in each case
in clauses (i) through (v) above, such event or condition,
together with all other such events or conditions for which liability to the
Borrower is reasonably expected to occur, if any, could, in the reasonable
judgment of the Majority Lenders, reasonably be expected to have a Material
Adverse Effect; or

(j)            One or more judgments
or decrees shall be entered against the Borrower or any of its Subsidiaries
involving for the Borrower and its Subsidiaries taken as a whole a liability
(to the extent not paid or fully covered by insurance above applicable
deductions) of $50,000,000 or more, and all such judgments or decrees shall not
have been vacated, discharged, stayed or bonded pending appeal within 45 days
from the entry thereof; or

(k)           The Guaranty shall
cease, for any reason (other than as provided in Section 10.17) to be in
full force and effect or any Guarantor or any Affiliate of a Guarantor shall so
assert in writing; or

(l)            Any License of any
Insurance Subsidiary (i) shall be revoked by the Governmental Authority
which issued such License, or any action (administrative or judicial) to revoke
such License shall have been commenced against such Insurance Subsidiary and
shall not have been dismissed within thirty days after the commencement
thereof, (ii) shall be suspended by such Governmental Authority for a
period in excess of thirty days or (iii) shall not be reissued or renewed
by such Governmental Authority upon the expiration thereof following
application for such reissuance or renewal of such Insurance Subsidiary, which,
in the case of each of clauses (i), (ii) and (iii) above,
could reasonably be expected to have a Material Adverse Effect.

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Notwithstanding the foregoing, in the case of each of
paragraphs (f) through (l) of this Section 8.1, such event shall not
constitute an Event of Default unless such event continues unremedied for a
period of 30 days after the Borrower shall have received written notice of such
event from the Administrative Agent.

8.2.  Remedies
Upon Event of Default.  If any Event
of Default specified in Section 8.1 occurs and is continuing, then, and
in any such event, (a) if such event is an Event of Default specified in clause
(i) or (ii) of Section 8.1(c) above with respect to the
Borrower, automatically the commitment of each Lender to make Loans and any
obligation of the Issuing Lender to make L/C Credit Extensions shall
immediately terminate and the Loans hereunder (with accrued interest thereon)
and all other amounts owing under this Agreement and the other Loan Documents
(including, without limitation, all amounts of L/C Obligations, whether or not
the beneficiaries of the then outstanding Letters of Credit shall have
presented the documents required thereunder) shall immediately become due and
payable, and (b) if such event is any other Event of Default specified in Section
8.1, either or both of the following actions may be taken:  (i) with the consent of the Majority Lenders,
the Administrative Agent may, or upon the request of the Majority Lenders, the
Administrative Agent shall, by notice to the Borrower declare the Revolving
Credit Commitments and the obligation of the Issuing Lender to issue Letters of
Credit to be terminated forthwith, whereupon the Revolving Credit Commitments
and the L/C Commitment shall immediately terminate; and (ii) with the consent
of the Majority Lenders, the Administrative Agent may, or upon the request of
the Majority Lenders, the Administrative Agent shall, by notice to the
Borrower, declare the Loans hereunder (with accrued interest thereon) and all
other amounts owing under this Agreement and the other Loan Documents
(including, without limitation, all amounts of L/C Obligations, whether or not
the beneficiaries of the then outstanding Letters of Credit shall have
presented the documents required thereunder) to be due and payable forthwith,
whereupon the same shall immediately become due and payable.  In the case of any Letter of Credit issued
for the account of the Borrower with respect to which presentment for honor
shall not have occurred at the time of an acceleration pursuant to this
paragraph, the Borrower shall at such time Cash Collateralize such L/C
Obligations in an amount equal to the aggregate then undrawn and unexpired
amount of such Letters of Credit.  Such
cash collateral shall be applied by the Administrative Agent to the payment of
drafts drawn under such Letters of Credit, and the unused portion thereof after
all such Letters of Credit shall have expired or been fully drawn upon, if any,
shall be applied to repay other obligations of the Borrower hereunder and under
the other Loan Documents.  After (a) all
such Letters of Credit shall have expired or been fully drawn upon, all
Reimbursement Obligations shall have been satisfied and all other obligations
of the Borrower hereunder and under the other Loan Documents shall have been
paid in full or (b) all Defaults and Events of Default hereunder and under the
other Loan Document shall have been cured or waived, the balance, if any, in
such cash collateral account shall be returned to the Borrower (or such other
Person as may be lawfully entitled thereto).

9.             THE ADMINISTRATIVE AGENT

9.1.  Appointment.  (a) 
Each Lender hereby irrevocably appoints, designates and authorizes the
Administrative Agent to take such action on its behalf under the provisions of
this Agreement and each other Loan Document and to exercise such powers and
perform such duties as are expressly delegated to it by the terms of this
Agreement or any other Loan Document,

 66
 

together with such powers as are reasonably incidental thereto.  Notwithstanding any provision to the contrary
contained elsewhere herein or in any other Loan Document, the Administrative
Agent shall not have any duties or responsibilities, except those expressly set
forth herein, nor shall the Administrative Agent have or be deemed to have any
fiduciary relationship with any Lender or participant, and no implied
covenants, functions, responsibilities, duties, obligations or liabilities
shall be read into this Agreement or any other Loan Document or otherwise exist
against the Administrative Agent. 
Without limiting the generality of the foregoing sentence, the use of
the term “agent” herein and in the other Loan Documents with reference to the
Administrative Agent is not intended to connote any fiduciary or other implied
(or express) obligations arising under agency doctrine of any applicable
Law.  Instead, such term is used merely
as a matter of market custom, and is intended to create or reflect only an
administrative relationship between independent contracting parties.

(b)           The Issuing Lender
shall act on behalf of the Lenders with respect to any Letters of Credit issued
by it and the documents associated therewith, and the Issuing Lender shall have
all of the benefits and immunities (i) provided to the Administrative
Agent in this Section 9 with respect to any acts taken or omissions
suffered by the Issuing Lender in connection with Letters of Credit issued by
it or proposed to be issued by it and the Applications and agreements for
letters of credit pertaining to such Letters of Credit as fully as if the term “Administrative
Agent” as used in this Section 9 and in the definition of “Agent-Related
Person” included the Issuing Lender with respect to such acts or omissions, and
(ii) as additionally provided herein with respect to the Issuing Lender; provided
that nothing in this Agreement shall be construed to excuse the Issuing Lender
from any liability to the Borrower for damages caused by the gross negligence
or willful misconduct of the Issuing Lender or any Agent-Related Person.

9.2.  Delegation of Duties.  The Administrative Agent may execute any of
its duties under this Agreement or any other Loan Document by or through
agents, employees or attorneys-in-fact and shall be entitled to advice of
counsel and other consultants or experts concerning all matters pertaining to
such duties.  The Administrative Agent
shall not be responsible for the negligence or misconduct of any agent or
attorney-in-fact that it selects in the absence of gross negligence or willful
misconduct.

9.3.  Liability of Administrative Agent.  No Agent-Related Person shall (a) be liable
for any action taken or omitted to be taken by any of them under or in
connection with this Agreement or any other Loan Document or the transactions
contemplated hereby (except for its own gross negligence or willful misconduct
in connection with its duties expressly set forth herein), or (b) be
responsible in any manner to any Lender or participant for any recital,
statement, representation or warranty made by the Borrower or any officer
thereof, contained herein or in any other Loan Document, or in any certificate,
report, statement or other document referred to or provided for in, or received
by the Administrative Agent under or in connection with, this Agreement or any
other Loan Document, or the validity, effectiveness, genuineness,
enforceability or sufficiency of this Agreement or any other Loan Document, or
for any failure of the Borrower or any other party to any Loan Document to
perform its obligations hereunder or thereunder.  No Agent-Related Person shall be under any
obligation to any Lender or participant to ascertain or to inquire as to the
observance or performance of any of the agreements contained

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in, or conditions
of, this Agreement or any other Loan Document, or to inspect the properties,
books or records of the Borrower or any Affiliate thereof.

9.4.  Reliance by Administrative Agent.  (a) 
The Administrative Agent shall be entitled to rely, and shall be fully
protected in relying, upon any writing, communication, signature, resolution,
representation, notice, consent, certificate, affidavit, letter, telegram,
facsimile, telex or telephone message, electronic mail message, statement or
other document or conversation believed by it to be genuine and correct and to
have been signed, sent or made by the proper Person or Persons, and upon advice
and statements of legal counsel (including counsel to the Borrower),
independent accountants and other experts selected by the Administrative
Agent.  The Administrative Agent may deem
and treat the payee of any Note as the owner thereof for all purposes unless
such Note shall have been transferred in accordance with Section 10.7
and all actions required by such Section 10.7 in connection with such
transfer shall have been taken.  The
Administrative Agent shall be fully justified in failing or refusing to take
any action under any Loan Document unless it shall first receive such advice or
concurrence of the Majority Lenders (or, if so specified by this Agreement, all
Lenders) as it deems appropriate and, if it so requests, it shall first 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.  The Administrative
Agent shall in all cases be fully protected in acting, or in refraining from
acting, under this Agreement or any other Loan Document in accordance with a
request or consent of the Majority Lenders (or such greater number of Lenders
as may be expressly required hereby in any instance) and such request and any
action taken or failure to act pursuant thereto shall be binding upon all the
Lenders; provided that the Administrative Agent shall not be required to
take any action that, in its opinion or the opinion of its counsel, may expose
the Administrative Agent to liability or that is contrary to any Loan Document
or applicable Law.

(b)           For purposes of
determining compliance with the conditions specified in Section 4.1,
each Lender that has signed this Agreement shall be deemed to have consented
to, approved or accepted or to be satisfied with, each document or other matter
required thereunder to be consented to or approved by or acceptable or
satisfactory to a Lender unless the Administrative Agent shall have received
notice from such Lender prior to the proposed Closing Date specifying its
objection thereto.

9.5.  Notice of Default.  The Administrative Agent shall not be deemed
to have knowledge or notice of the occurrence of any Default unless the
Administrative Agent shall have received written notice from a Lender or the
Borrower referring to this Agreement, describing such Default and stating that
such notice is a “notice of default.” The Administrative Agent will notify the
Lenders of its receipt of any such notice. 
The Administrative Agent shall take such action with respect to such
Default as may be directed by the Majority Lenders in accordance with Section
8.2; provided, however, that unless and until the Administrative Agent has
received any such direction, 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 or in the best interest of
the Lenders.

9.6.  Credit Decision; Disclosure of Information
by Administrative Agent.  Each Lender
acknowledges that no Agent-Related Person has made any representation or
warranty to

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it, and that no
act by the Administrative Agent hereafter taken, including any consent to and
acceptance of any assignment or review of the affairs of the Borrower or any
Affiliate thereof, shall be deemed to constitute any representation or warranty
by any Agent-Related Person to any Lender as to any matter, including whether
Agent-Related Persons have disclosed material information in their
possession.  Each Lender represents to
the Administrative Agent that it has, independently and without reliance upon
any Agent-Related Person and based on such documents and information as it has
deemed appropriate, made its own appraisal of and investigation into the
business, prospects, operations, property, financial and other condition and creditworthiness
of the Borrower and its Subsidiaries, and all applicable bank or other
regulatory Laws relating to the transactions contemplated hereby, and made its
own decision to enter into this Agreement and to extend credit to the Borrower
hereunder.  Each Lender also represents
that it will, independently and without reliance upon any Agent-Related Person
and based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit analysis, appraisals and decisions in
taking or not taking action under this Agreement and the other Loan Documents,
and to make such investigations as it deems necessary to inform itself as to
the business, prospects, operations, property, financial and other condition
and creditworthiness of the Borrower. 
Except for notices, reports and other documents expressly required to be
furnished to the Lenders by the Administrative Agent herein, the Administrative
Agent shall not have any duty or responsibility to provide any Lender with any
credit or other information concerning the business, prospects, operations,
property, financial and other condition or creditworthiness of the Borrower or
any of its Affiliates which may come into the possession of any Agent-Related
Person.

9.7.  Indemnification of Administrative Agent.  Whether or not the transactions contemplated
hereby are consummated, the Lenders shall indemnify upon demand each
Agent-Related Person (to the extent not reimbursed by or on behalf of the
Borrower and without limiting the obligation of the Borrower), pro rata, and
hold harmless each Agent-Related Person from and against any and all
Indemnified Liabilities incurred by it; provided, however, that
no Lender shall be liable for the payment to any Agent-Related Person of any
portion of such Indemnified Liabilities to the extent determined in a final,
nonappealable judgment by a court of competent jurisdiction to have resulted
from such Agent-Related Person’s own gross negligence or willful misconduct, provided,
however, that no action taken in accordance with the directions of the
Majority Lenders (or such greater percentage of Lenders as may be required
hereunder) shall be deemed to constitute gross negligence or willful misconduct
for purposes of this Section 9.7. 
Without limitation of the foregoing, each Lender shall reimburse the
Administrative Agent upon demand for its ratable share of any costs or
out-of-pocket expenses (including Attorney Costs) incurred by the
Administrative Agent in connection with the preparation, execution, delivery,
administration, modification, amendment or enforcement (whether through
negotiations, legal proceedings or otherwise) of, or legal advice in respect of
rights or responsibilities under, this Agreement, any other Loan Document, or
any document contemplated by or referred to herein, to the extent that the
Administrative Agent is not reimbursed for such expenses by or on behalf of the
Borrower.  The undertaking in this Section 9.7
shall survive termination of the Total Revolving Credit Commitments, the
payment of all other obligations and the resignation of the Administrative
Agent.

9.8.  Administrative Agent in its Individual
Capacity.  Bank of America, N.A. and
its Affiliates may make loans to, issue letters of credit for the account of,
accept deposits from,

 69
 

acquire equity
interests in and generally engage in any kind of banking, trust, financial
advisory, underwriting or other business with the Borrower and its Affiliates
as though Bank of America, N.A. were not the Administrative Agent or the Issuing
Lender hereunder and without notice to or consent of the Lenders.  The Lenders acknowledge that, pursuant to
such activities, Bank of America, N.A. or its Affiliates may receive
information regarding the Borrower or its Affiliates (including information
that may be subject to confidentiality obligations in favor of the Borrower or
such Affiliate) and acknowledge that the Administrative Agent shall be under no
obligation to provide such information to them. 
With respect to its Loans, Bank of America, N.A. shall have the same
rights and powers under this Agreement as any other Lender and may exercise
such rights and powers as though it were not the Administrative Agent or the
Issuing Lender, and the terms “Lender” and “Lenders” include Bank of America,
N.A. in its individual capacity.

9.9.  Successor Administrative Agent.  The Administrative Agent may resign as
Administrative Agent upon 30 days’ notice to the Lenders and the Borrower; provided
that any such resignation by Bank of America, N.A. shall also constitute its
resignation as Issuing Lender and Swing Line Lender, so long as a successor
Issuing Lender and a successor Swing Line Lender (each consented to by the
Borrower, such consent not to be unreasonably withheld or delayed) is
appointed.  If the Administrative Agent
resigns under this Agreement, the Majority Lenders shall appoint from among the
Lenders a successor administrative agent for the Lenders, which successor
administrative agent shall be consented to by the Borrower at all times other than
during the continuance of a Specified Event of Default (which consent of the
Borrower shall not be unreasonably withheld or delayed).  If no successor administrative agent is
appointed prior to the effective date of the resignation of the Administrative
Agent, the Administrative Agent may appoint, after consulting with the Lenders
and the Borrower, a successor administrative agent from among the Lenders.  Upon the acceptance of its appointment as
successor administrative agent hereunder, the Person acting as such successor
administrative agent shall succeed to all of the rights, powers and duties of
the retiring Administrative Agent, Issuing Lender and Swing Line Lender and the
respective terms “Administrative Agent,” “Issuing Lender” and “Swing Line Lender”
shall mean such successor administrative agent, Letter of Credit issuer and
swing line lender, and the retiring Administrative Agent’s appointment, powers
and duties as Administrative Agent shall be terminated and the retiring Issuing
Lender’s and Swing Line Lender’s rights, powers and duties as such shall be
terminated, without any other or further act or deed on the part of such
retiring Issuing Lender or Swing Line Lender or any other Lender, other than
the obligation of the successor Issuing Lender to issue letters of credit in
substitution for the Letters of Credit, if any, outstanding at the time of such
succession or to make other arrangements satisfactory to the retiring Issuing
Lender to effectively assume the obligations of the retiring Issuing Lender
with respect to such Letters of Credit. 
After any retiring Administrative Agent’s resignation hereunder as
Administrative Agent, the provisions of this Section 9 and Sections 10.5
and 10.6 shall inure to its benefit as to any actions taken or omitted
to be taken by it while it was Administrative Agent under this Agreement.  If no successor administrative agent has
accepted appointment as Administrative Agent by the date which is 30 days
following a retiring Administrative Agent’s notice of resignation, the retiring
Administrative Agent’s resignation shall nevertheless thereupon become
effective and the Lenders shall perform all of the duties of the Administrative
Agent hereunder until such time, if any, as the Majority Lenders appoint a
successor agent as provided for above.

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9.10.  Administrative Agent May File Proofs of
Claim.  In case of the pendency of
any receivership, insolvency, liquidation, bankruptcy, reorganization,
arrangement, adjustment, composition or other judicial proceeding relative to
the Borrower, the Administrative Agent (irrespective of whether the principal
of any Loan or L/C Obligation shall then be due and payable as herein expressed
or by declaration or otherwise and irrespective of whether the Administrative
Agent shall have made any demand on the Borrower) shall be entitled and
empowered, by intervention in such proceeding or otherwise:

(a)           to file and prove a
claim for the whole amount of the principal and interest owing and unpaid in
respect of the Loans, L/C Obligations and all other obligations that are owing
and unpaid and to file such other documents as may be necessary or advisable in
order to have the claims of the Lenders and the Administrative Agent (including
any claim for the reasonable compensation, expenses, disbursements and advances
of the Lenders and the Administrative Agent and their respective agents and
counsel and all other amounts due the Lenders and the Administrative Agent
under Sections 2.5, 3.9 and 10.5) allowed in such judicial
proceeding; and

(b)           to collect and receive
any monies or other property payable or deliverable on any such claims and to
distribute the same;

and any custodian,
receiver, assignee, trustee, liquidator, sequestrator or other similar official
in any such judicial proceeding is hereby authorized by each Lender to make
such payments to the Administrative Agent and, in the event that the
Administrative Agent shall consent to the making of such payments directly to
the Lenders, to pay to the Administrative Agent any amount due for the reasonable
compensation, expenses, disbursements and advances of the Administrative Agent
and its agents and counsel, and any other amounts due the Administrative Agent
under Sections 2.5, 3.9 and 10.5.

Nothing contained herein
shall be deemed to authorize the Administrative Agent to authorize or consent
to or accept or adopt on behalf of any Lender any plan of reorganization,
arrangement, adjustment or composition affecting the obligations of the
Borrower hereunder or under any of the other Loan Documents or the rights of
any Lender or to authorize the Administrative Agent to vote in respect of the
claim of any Lender in any such proceeding.

9.11.  Guarantee and Collateral Matters.  The Lenders irrevocably authorize the
Administrative Agent, at its option and in its discretion,

(a)           to release any Lien on
any property granted to or held by the Administrative Agent under any Loan
Document (i) upon termination of the Total Revolving Credit Commitments and
payment in full of all obligations of the Borrower hereunder or under any of
the other Loan Documents (other than contingent indemnification obligations)
and the expiration or termination of all Letters of Credit, (ii) that is sold
or to be sold as part of or in connection with any sale permitted hereunder or
under any other Loan Document, or (iii) subject to Section 10.1, if
approved, authorized or ratified in writing by the Majority Lenders; and

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(b)           to subordinate any Lien
on any property granted to or held by the Administrative Agent under any Loan
Document to the holder of any Lien on such property that is permitted by Section
7.3, and

(c)           to effect any release
of Guarantee Obligations contemplated by Section 10.17.

9.12.  Other Agents; Arrangers and Managers.  None of the Lenders or other Persons
identified on the facing page or signature pages of this Agreement as a “syndication
agent,” “documentation agent,” “co-agent,” “book manager,” “lead manager,” “arranger,”
“lead arranger” or “co-arranger” shall have any right, power, obligation,
liability, responsibility or duty under this Agreement other than, in the case
of such Lenders, those applicable to all Lenders as such.  Without limiting the foregoing, none of the
Lenders or other Persons so identified shall have or be deemed to have any
fiduciary relationship with any Lender. 
Each Lender acknowledges that it has not relied, and will not rely, on
any of the Lenders or other Persons so identified in deciding to enter into
this Agreement or in taking or not taking action hereunder.

10.          MISCELLANEOUS

10.1.  Amendments, Etc.  No amendment or waiver of any provision of
this Agreement or any other Loan Document, and no consent to any departure by
the Borrower therefrom, shall be effective unless in writing signed by the
Majority Lenders and the Borrower and delivered to the Administrative Agent,
and each such waiver or consent shall be effective only in the specific
instance and for the specific purpose for which given; provided, however,
that no such amendment, waiver or consent shall:

(a)           extend the expiration
date of or increase the Revolving Credit Commitment of any Lender (or reinstate
any Revolving Credit Commitment terminated pursuant to Section 8.2)
without the written consent of such Lender;

(b)           postpone any date fixed
by this Agreement or any other Loan Document for any payment (excluding
mandatory prepayments) of principal, interest or fees payable hereunder or
under any other Loan Document without the written consent of each Lender
directly affected thereby;

(c)           reduce the principal
of, or the rate of interest specified herein on, any Loan or L/C Borrowing, or,
subject to clause (v) of the second proviso to this Section 10.1,
any fees or other amounts payable hereunder or under any other Loan Document
without the written consent of each Lender directly affected thereby; provided,
however, that only the consent of the Majority Lenders shall be
necessary to amend the definition of “Default Rate” or to waive any obligation
of the Borrower to pay interest or Letter of Credit Fees at the Default Rate;

(d)           change Section 2.14
in a manner that would alter the pro rata sharing of payments required thereby
without the written consent of each Lender directly affected thereby; or

(e)           change any provision of
this Section 10.1 or the percentage in the definition of “Majority
Lenders” or any other provision hereof specifying the number or

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percentage of
Lenders required to amend, waive or otherwise modify any rights hereunder or
make any determination or grant any consent hereunder, without the written
consent of each Lender;

(f)            amend, modify or waive
any provision of Section 2.3 or 2.4 without the written consent
of the Swing Line Lender;

(g)           amend, modify or waive
any provision of Section 3 without the consent of the Issuing Lender;

(h)           amend, modify or waive
the provisions of the definition of Interest Period regarding nine or twelve
month Interest Periods for Eurodollar Loans without the consent of each
relevant Lender;

(i)            consent to the
assignment or transfer by the Borrower of any of its rights and obligations
under this Agreement and the other Loan Documents; or

(j)            release any Guarantor
from its Guarantee Obligations under the Guaranty except as provided in Section
10.17, without the consent of all Lenders;

and, provided  further,
that (i) no amendment, waiver or consent shall, unless in writing and signed by
the Issuing Lender in addition to the Lenders required above, modify the rights
or duties of the Issuing Lender under this Agreement or any Application
relating to any Letter of Credit issued or to be issued by it; (ii) no
amendment, waiver or consent shall, unless in writing and signed by the Swing
Line Lender in addition to the Lenders required above, modify the rights or
duties of the Swing Line Lender under this Agreement; (iii) no amendment,
waiver or consent shall, unless in writing and signed by the Administrative
Agent in addition to the Lenders required above, modify the rights or duties of
the Administrative Agent under this Agreement or any other Loan Document; and
(iv) Section 10.7(h) may not be amended, waived or otherwise modified
without the consent of each Granting Lender all or any part of whose Loans are
being funded by an SPC at the time of such amendment, waiver or other
modification; and (v) the Fee Letters may be amended, or rights or privileges
thereunder waived, in a writing executed only by the parties thereto.  Notwithstanding anything to the contrary
herein, no Defaulting Lender shall have any right to approve or disapprove any
amendment, waiver or consent hereunder, except that the Revolving Credit
Commitment of such Lender may not be increased or extended without the consent
of such Lender.

Any such waiver and any
such amendment, supplement or modification shall apply equally to each of the
Lenders and shall be binding upon the Borrower, the Lenders, the Administrative
Agent and all future holders of the Loans. 
In the case of any waiver, the Borrower, the Lenders and the
Administrative Agent shall be restored to their former position and rights
hereunder and under the other Loan Documents, and any Default or Event of
Default waived shall be deemed to be cured and not continuing; but no such
waiver shall extend to any subsequent or other Default or Event of Default, or
impair any right consequent thereon.  Any
such waiver, amendment, supplement or modification shall be effected by a
written instrument signed by the parties required to sign pursuant to the
foregoing provisions of this Section 10.1;

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provided,
that delivery of an executed signature page of any such instrument by facsimile
transmission shall be effective as delivery of a manually executed counterpart
thereof.

For the avoidance of
doubt, this Agreement may be amended (or amended and restated) with the written
consent of the Majority Lenders, the Administrative Agent and the Borrower
party to each relevant Loan Document (x) to add one or more additional credit
facilities to this Agreement and to permit the extensions of credit from time
to time outstanding thereunder and the accrued interest and fees in respect
thereof to share ratably in the benefits of this Agreement and the other Loan
Documents with the Loans, the L/C Obligations and the accrued interest and fees
in respect thereof and (y) to include appropriately the Lenders holding such
credit facilities in any determination of the Majority Lenders.

10.2.  Notices; Effectiveness; Electronic
Communication.

(a)           Notices Generally.  Except in the case of notices and other
communications expressly permitted to be given by telephone (and except as
provided in subsection (b) below), all notices and other communications
provided for herein shall be in writing and shall be delivered by hand or
overnight courier service, mailed by certified or registered mail, sent by
telecopier or by electronic mail as follows, and all notices and other communications
expressly permitted hereunder to be given by telephone shall be made to the
applicable telephone number, as follows:

(i)            if to the Borrower,
the Administrative Agent, the Issuing Lender or the Swing Line Lender, to the
address, telecopier number, electronic mail address or telephone number
specified for such Person on Schedule 10.2; and

(ii)           if to any other Lender,
to the address, telecopier number, electronic mail address or telephone number
specified in its Administrative Questionnaire.

Notices sent by hand or
overnight courier service, or mailed by certified or registered mail, shall be
deemed to have been given when received; notices sent by telecopier shall be
deemed to have been given when sent (except that, if not given during normal business
hours for the recipient, shall be deemed to have been given at the opening of
business on the next business day for the recipient).  Notices delivered through electronic
communications to the extent provided in subsection (b) below, shall be
effective as provided in such subsection (b).

(b)           Electronic
Communications.  Notices and other
communications to the Lenders and the Issuing Lender hereunder may be delivered
or furnished by electronic communication (including e-mail and Internet
or intranet websites) pursuant to procedures approved by the Administrative
Agent, provided that the foregoing shall not apply to service of process
or to notices to any Lender or the Issuing Lender pursuant to Section 2.  The Administrative Agent or the Borrower may,
in its discretion, agree to accept notices and other communications to it
hereunder by electronic communications pursuant to procedures approved by it, provided
that approval of such procedures may be limited to particular notices or
communications.

Unless the Administrative
Agent otherwise prescribes, (i) notices and other communications sent to
an e-mail address shall be deemed received upon the sender’s receipt of an
acknowledgement

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from the intended
recipient (such as by the “return receipt requested” function, as available,
return e-mail or other written acknowledgement), provided that if such
notice or other communication is not sent during the normal business hours of
the recipient, such notice or communication shall be deemed to have been sent
at the opening of business on the next business day for the recipient, and
(ii) notices or communications posted to an Internet or intranet website
shall be deemed received upon the deemed receipt by the intended recipient at
its e-mail address as described in the foregoing clause (i) of
notification that such notice or communication is available and identifying the
website address therefor.

(c)           The Platform.  THE PLATFORM IS PROVIDED “AS IS” AND “AS
AVAILABLE.” THE AGENT-RELATED PERSONS DO NOT WARRANT THE ACCURACY OR
COMPLETENESS OF THE BORROWER MATERIALS OR THE ADEQUACY OF THE PLATFORM, AND
EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE BORROWER
MATERIALS.  NO WARRANTY OF ANY KIND,
EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR
FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY ANY AGENT-RELATED
PERSONS OR THE BORROWER IN CONNECTION WITH THE BORROWER MATERIALS OR THE
PLATFORM.  In no event shall the
Agent-Related Persons or the Borrower have any liability to any Agent-Related
Person, the Borrower, any Lender, or the Issuing Lender for losses, claims,
damages, liabilities or expenses of any kind (whether in tort, contract or
otherwise) arising out of the Borrower’s or the Administrative Agent’s
transmission of Borrower Materials through the Internet, except to the extent
that such losses, claims, damages, liabilities or expenses are determined by a
court of competent jurisdiction by a final and nonappealable judgment to have
resulted from the gross negligence or willful misconduct of such Agent-Related
Persons or the Borrower; provided, however, that in no event
shall any Agent-Related Persons or the Borrower have any liability to any
Agent-Related Person, the Borrower, any Lender, or the Issuing Lender for
indirect, special, incidental, consequential or punitive damages (as opposed to
direct or actual damages).  Each Lender
agrees that the Borrower shall be responsible only for the Borrower Materials
and shall not have any liability (unless otherwise agreed in writing by the
Borrower) for any other materials made available to the Lenders and shall not
have any liability for any errors or omissions other than errors or omissions
in the materials delivered to the Administrative Agent by the Borrower.  Nothing in this Section 10.2(c) shall
limit the obligation of the Administrative Agent and the Lenders under Section
10.16.

(d)           Change of Address,
Etc.  The Borrower, the
Administrative Agent, the Issuing Lender and the Swing Line Lender may change
its address, telecopier or telephone number for notices and other
communications hereunder by notice to the other parties hereto.  Each other Lender may change its address,
telecopier or telephone number for notices and other communications hereunder
by notice to the Borrower, the Administrative Agent, the Issuing Lender and the
Swing Line Lender.  In addition, each
Lender agrees to notify the Administrative Agent from time to time to ensure
that the Administrative Agent has on record (i) an effective address, contact
name, telephone number, telecopier number and electronic mail address to which
notices and other communications may be sent and (ii) accurate wire
instructions for such Lender.

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(e)           Reliance by
Administrative Agent, Issuing Lender and Lenders.  The Administrative Agent, the
Issuing Lender and the Lenders shall be entitled to rely and act upon any
notices (including telephonic and written Borrowing Requests and notices of
Swing Line Loans) purportedly given by or on behalf of the Borrower; provided
that the foregoing shall not apply to losses, costs, expenses and
liabilities caused by the gross negligence or willful misconduct of the
relevant Lender or any Agent-Related Person even if (i) such notices were not
made in a manner specified herein, were incomplete or were not preceded or
followed by any other form of notice specified herein, or (ii) the terms
thereof, as understood by the recipient, varied from any confirmation thereof.  The Borrower shall indemnify the
Administrative Agent, the Issuing Lender, each Lender and the Agent-Related
Persons from all losses, costs, expenses and liabilities resulting from the
reliance by such Person on each notice purportedly given by or on behalf of the
Borrower; provided  that the foregoing shall not apply to losses,
costs, expenses and liabilities caused by the gross negligence or willful
misconduct of the relevant Lender or any Agent-Related Person.  All telephonic notices to and other telephonic
communications with the Administrative Agent may be recorded by the
Administrative Agent, and each of the parties hereto hereby consents to such
recording.

(f)            Effectiveness of
Facsimile Documents and Signatures. 
Loan Documents may be transmitted and/or signed by facsimile.  The effectiveness of any such documents and
signatures shall, subject to applicable Law, have the same force and effect as
manually-signed originals and shall be binding on the Borrower, the Administrative
Agent and the Lenders.  The
Administrative Agent may also require that any such documents and signatures be
confirmed by a manually-signed original thereof; provided, however,
that the failure to request or deliver the same shall not limit the
effectiveness of any facsimile document or signature.

10.3.  No Waiver; Cumulative Remedies.  No failure to exercise and no delay in
exercising, on the part of the Administrative Agent or any Lender, any right,
remedy, power or privilege hereunder or under the other Loan Documents shall
operate as a waiver thereof; nor shall any single or partial exercise of any
right, remedy, power or privilege hereunder preclude any other or further
exercise thereof or the exercise of any other right, remedy, power or
privilege.  The rights, remedies, powers
and privileges herein provided are cumulative and not exclusive of any rights,
remedies, powers and privileges provided by Law.

10.4.  Survival of Representations and Warranties.  All representations and warranties made
hereunder and in any other Loan Document or other document delivered pursuant
hereto or thereto or in connection herewith or therewith shall survive the
execution and delivery hereof and thereof. 
Such representations and warranties have been or will be relied upon by
the Administrative Agent and each Lender, regardless of any investigation made
by the Administrative Agent or any Lender or on their behalf and
notwithstanding that the Administrative Agent or any Lender may have had notice
or knowledge of any Default at the time of any extension of credit, and shall
continue in full force and effect as long as any Loan or any other obligation
hereunder shall remain unpaid or unsatisfied or any Letter of Credit shall
remain outstanding.

10.5.  Attorney Costs and Expenses.  The Borrower agrees (a) to pay or reimburse
the Administrative Agent and the Arrangers for all reasonable out-of-pocket
costs and expenses incurred in connection with the development, preparation,
negotiation and execution of this

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Agreement and the
other Loan Documents and any amendment, waiver, consent or other modification
of the provisions hereof and thereof (whether or not the transactions
contemplated hereby or thereby are consummated), and the consummation and
administration of the transactions contemplated hereby and thereby, including
all Attorney Costs, and (b) to pay or reimburse the Administrative Agent and
each Lender for all reasonable out-of-pocket costs and expenses (which may
include, to the extent reasonably incurred, all search, filing, recording,
title insurance and appraisal charges and fees and taxes related thereto, and
other out-of-pocket expenses incurred by the Administrative Agent and the cost
of independent public accountants and other outside experts) incurred in
connection with the enforcement, attempted enforcement, or preservation of any
rights or remedies under this Agreement or the other Loan Documents (including
all such costs and expenses incurred during any “workout” or restructuring in
respect of the obligations of the Borrower hereunder or under any of the other
Loan Documents and during any legal proceeding, including any proceeding under
any Debtor Relief Law), including all Attorney Costs.  All amounts due under this Section 10.5
shall be payable not later than 30 days following written demand.  The agreements in this Section 10.5
shall survive the termination of the Total Revolving Credit Commitments and
repayment of all other obligations.

10.6.  Indemnification.  (a) Whether or not the transactions
contemplated hereby are consummated, the Borrower shall indemnify and hold
harmless each Agent-Related Person, each Arranger, each Lender and their
respective Affiliates, directors, officers, employees, counsel, agents,
shareholders and attorneys-in-fact (collectively the “Indemnitees”) from
and against any and all liabilities, obligations, losses, damages, penalties,
claims, demands, actions, judgments, suits, settlement payments and causes of
action of any kind or nature whatsoever and reasonable related out-of-pocket
costs and expenses which may at any time be imposed on, incurred, suffered,
sustained, required to be paid by or asserted against any such Indemnitee in
any way relating to or arising out of or in connection with (a) the execution,
delivery, enforcement, performance or administration of any Loan Document or
any other agreement, letter or instrument delivered in connection with the
transactions contemplated thereby or the consummation of the transactions
contemplated thereby, (b) any Revolving Credit Commitment, Loan or Letter of
Credit or the use or proposed use of the proceeds therefrom (including any
refusal by the Issuing Lender 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), (c) any actual or
alleged presence or release of Hazardous Materials on or from any property
currently or formerly owned or operated by the Borrower or any Subsidiary, or
any Environmental Liability related in any way to the Borrower or any of its
Subsidiaries, or (d) any actual or prospective claim, litigation, investigation
or proceeding relating to any of the foregoing, whether based on contract, tort
or any other theory (including any investigation of, preparation for, or
defense of any pending or threatened claim, investigation, litigation or
proceeding) and regardless of whether any Indemnitee is a party thereto (all
the foregoing, collectively, the “Indemnified Liabilities”), in all
cases, whether or not caused by or arising, in whole or in part, out of the
negligence of the Indemnitee; provided that such indemnity shall not, as
to any Indemnitee, be available to the extent that such liabilities,
obligations, losses, damages, penalties, claims, demands, actions, judgments,
suits, settlement payments, causes of action or costs or 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.  In all such litigation,
or the preparation therefor, the Indemnitees shall be entitled to select
counsel to the Indemnitees.  To the
extent reasonably practicable and not disadvantageous to any

 77
 

Indemnitee (as
reasonably determined by the relevant Indemnitee), it is anticipated that a
single counsel selected by the affected Lenders will be used.  No Indemnitee shall be liable to the Borrower
for any damages arising from the use by unintended recipients of any
information or other materials distributed to such unintended recipients by
such Indemnitee through telecommunications, electronic or other information
transmission systems in connection with this Agreement or the other Loan
Documents or the transactions contemplated hereby or thereby, and, to the
fullest extent permitted by applicable Law, the Borrower shall not assert, and
hereby waives, any claim against any Indemnitee, on any theory of liability,
for special, indirect, consequential or punitive damages (as opposed to direct
or actual damages) arising out of, in connection with, or as a result of, this
Agreement, any other Loan Document or any agreement or instrument contemplated
hereby, the transactions contemplated hereby or thereby, any Loan or Letter of
Credit or the use of the proceeds thereof (whether before or after the Closing
Date); provided that this sentence shall not, as to any Indemnitee,
apply to the extent such Indemnitee is found by a final non-appealable judgment
of a court of competent jurisdiction to have acted with willful misconduct or
gross negligence.  All amounts due under
this Section 10.6 shall be payable not later than 30 days following
written demand.  The agreements in this Section
10.6 shall survive the resignation of the Administrative Agent, the
replacement of any Lender, the termination of the Total Revolving Credit
Commitments and the repayment, satisfaction or discharge of all the other
obligations of the Borrower hereunder.

(b)           To the extent that the
Borrower for any reason fails to indefeasibly pay any amount required under Section
10.5 and Section 10.6(a) to be paid by it to the Administrative
Agent (or any sub-agent thereof), the Issuing Lender or any Agent-Related
Person of any of the foregoing, each Lender severally agrees to pay to the
Administrative Agent (or any such sub-agent), the Issuing Lender or such
Agent-Related Person, as the case may be, such Lender’s Revolving Credit
Percentage (determined as of the time that the applicable unreimbursed expense
or indemnity payment is sought) of such unpaid amount, provided that the
unreimbursed expense or indemnified loss, claim, damage, liability or related
expense, as the case may be, was incurred by or asserted against the
Administrative Agent (or any such sub-agent) or the Issuing Lender in its
capacity as such, or against any Agent-Related Person of any of the foregoing
acting for the Administrative Agent (or any such sub-agent) or Issuing Lender
in connection with such capacity.  The
obligations of the Lenders under this Section 10.6(b) are subject to the
provisions of Section 2.14(f).

10.7.  Successors
and Assigns.

(a)           Successors and
Assigns Generally.  The provisions of
this Agreement shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and assigns permitted hereby, except
that the Borrower may not assign or otherwise transfer any of their rights or
obligations hereunder without the prior written consent of the Administrative
Agent and each Lender and no Lender may assign or otherwise transfer any of its
rights or obligations hereunder except (i) to an Eligible Assignee in
accordance with the provisions of Section 10.7(b), (ii) by way of
participation in accordance with the provisions of Section 10.7(d),
(iii) by way of pledge or assignment of a security interest subject to the
restrictions of Section 10.7(f),
or (iv) to an SPC in accordance with the provisions of Section 10.7(h) (and
any other attempted assignment or transfer by any party hereto shall be null
and void).  Nothing in this Agreement,
expressed or implied, shall be construed to confer upon any Person (other than
the

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parties hereto,
their respective successors and assigns permitted hereby, Participants to the
extent provided in Section 10.7(d) and, to the extent expressly
contemplated hereby, the Indemnitees) any legal or equitable right, remedy or
claim under or by reason of this Agreement.

(b)           Assignments by
Lenders.  Any Lender may at any time
assign to one or more Eligible Assignees all or a portion of its rights and
obligations under this Agreement (including all or a portion of its Revolving
Credit Commitment and the Loans (including for purposes of this subsection
(b), participations in L/C Obligations and in Swing Line Loans) at the time
owing to it); provided that any such assignment shall be subject to the
following conditions:

(i)            Minimum Amounts.

(A)          in the case of an
assignment of the entire remaining amount of the assigning Lender’s Revolving
Credit Commitment and the Loans at the time owing to it or in the case of an
assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no
minimum amount need be assigned; and

(B)           in any case not
described in subsection (b)(i)(A) of this Section 10.7, the
aggregate amount of the Revolving Credit Commitment (which for this purpose
includes Loans outstanding thereunder) or, if the Revolving Credit Commitment
is not then in effect, the principal outstanding balance of the Loans of the
assigning Lender subject to each such assignment, determined as of the date the
Assignment and Assumption with respect to such assignment is delivered to the
Administrative Agent or, if “Trade Date” is specified in the Assignment and
Assumption, as of the Trade Date, shall not be less than $5,000,000  unless each of the Administrative Agent and, so long as no
Specified Event of Default has occurred and is continuing, the Borrower
otherwise consents (each such consent not to be unreasonably withheld or
delayed); provided, however, that concurrent assignments to
members of an Assignee Group and concurrent assignments from members of an
Assignee Group to a single assignee (or to an assignee and members of its
Assignee Group) will be treated as a single assignment for purposes of
determining whether such minimum amount has been met.

(ii)           Proportionate
Amounts.  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 with respect to the Loans
or the Revolving Credit Commitment assigned, except that this clause (ii)
shall not apply to the Swing Line Lender’s rights and obligations in respect of
Swing Line Loans;

(iii)          Required Consents.  No consent shall be required for any
assignment except to the extent required by subsection (b)(i)(B) of this
Section 10.7 and, provided that:

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(A)          the consent of the
Borrower (such consent not to be unreasonably withheld or delayed) shall be
required unless (1) a Specified Event of Default has occurred and is continuing
at the time of such assignment or (2) such assignment is to a Lender, an
Affiliate of a Lender or an Approved Fund;

(B)           the consent of the
Administrative Agent (such consent not to be unreasonably withheld or delayed)
shall be required if such assignment is to a Person that is not a Lender or an
Affiliate of the assigning Lender;

(C)           the consent of the
Issuing Lender (such consent not to be unreasonably withheld or delayed) shall
be required for any assignment that increases the obligation of the assignee to
participate in exposure under one or more Letters of Credit (whether or not
then outstanding); and

(D)          the consent of the Swing
Line Lender (such consent not to be unreasonably withheld or delayed) shall be
required for any assignment.

(iv)          Assignment and
Assumption.  The parties to each
assignment shall execute and deliver to the Administrative Agent an Assignment
and Assumption, together with a processing and recordation fee in the amount of
$3,500; provided, however, that the Administrative Agent may, in
its sole discretion, elect to waive such processing and recordation fee in the
case of any assignment.  The assignee, if
it is not a Lender, shall deliver to the Administrative Agent an Administrative
Questionnaire.

(v)           No Assignment to
Borrower.  No such assignment shall
be made to the Borrower or any Affiliates or Subsidiaries of the Borrower.

(vi)          No Assignment to
Natural Persons.  No such assignment
shall be made to a natural person.

(vii)         No Assignment to
Approved Funds Prior to Specified Event of Default.  No such assignment shall be made to an
Approved Fund prior to the occurrence of a Specified Event of Default.  After the occurrence and during the
continuance of any Specified Event of Default, an Approved Fund shall be an
Eligible Assignee hereunder.

(viii)        Creditworthiness of
Affiliates and Approved Funds. 
Notwithstanding the foregoing, no such assignment shall be made to an
Affiliate of a Lender or to an Approved Fund unless such Affiliate or Approved
Fund shall be a financial institution having a senior unsecured debt rating of
not less than  “A-”, or its equivalent,
by S&P.

Subject to acceptance and
recording thereof by the Administrative Agent pursuant to Section 10.7(c),
from and after the effective date specified in each Assignment and Assumption,

 80
 

the Eligible
Assignee thereunder shall be a party to this Agreement and, to the extent of
the interest assigned by such Assignment and Assumption, have the rights and
obligations of a Lender under this Agreement, and the assigning Lender
thereunder shall, to the extent of the interest assigned by such Assignment and
Assumption, be released from its obligations under this Agreement (and, in the
case of an Assignment and Assumption covering all of the assigning Lender’s
rights and obligations under this Agreement, such Lender shall cease to be a
party hereto) but shall continue to be entitled to the benefits of Sections
2.15, 2.16, 2.17, 2.18, 10.5 and 10.6  with respect to
facts and circumstances occurring prior to the effective date of such
assignment.  Upon request, the Borrower
(at its expense) shall execute and deliver a Note to the assignee Lender and a replacement
Note, as applicable, to the assigning Lender.

(c)           Register.  The Administrative Agent, acting solely for
this purpose as an agent of the Borrower, shall maintain at the Administrative
Agent’s Office 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
Revolving Credit Commitments of, and principal amounts of the Loans and L/C
Obligations owing to, each Lender pursuant to the terms hereof from time to
time (the “Register”).  The
entries in the Register shall be conclusive, in the absence of manifest error,
and the Borrower, the Administrative Agent and the Lenders may treat each
Person whose name is recorded in the Register pursuant to the terms hereof as a
Lender hereunder for all purposes of this Agreement, notwithstanding notice to
the contrary.  The Register shall be
available for inspection by the Borrower and any Lender, at any reasonable time
and from time to time upon reasonable prior notice.

(d)           Participations.  Any Lender may at any time, without the
consent of, or notice to, the Borrower or the Administrative Agent, sell
participations to any Person (other than a natural person or the Borrower or
any Affiliates or Subsidiaries of the Borrower) (each, a “Participant”)
in all or a portion of such Lender’s rights and/or obligations under this
Agreement (including all or a portion of its Revolving Credit Commitment and/or
the Loans (including such Lender’s participations in L/C Obligations and/or
Swing Line Loans) owing to it); provided that (i) such Lender’s
obligations under this Agreement shall remain unchanged, (ii) such Lender
shall remain solely responsible to the other parties hereto for the performance
of such obligations and (iii) the Borrower, the Administrative Agent, the
Lenders and the Issuing Lender 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, waiver or other
modification described in the first proviso to Section 10.1 that
directly affects such Participant. 
Subject to Section 10.7(e), the Borrower agrees that each
Participant shall be entitled to the benefits of Sections 2.15, 2.16
or 2.17 to the same
extent as if it were a Lender and had acquired its interest by assignment
pursuant to Section 10.7(b).  To
the extent permitted by Law, each Participant also shall be entitled to the
benefits of Section 10.8  as though it
were a Lender, provided such Participant agrees to be subject to Section
2.14 as though it were a Lender.

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(e)           Limitations upon
Participant Rights.  A Participant
shall not be entitled to receive any greater payment under Sections 2.15,
2.16 or 2.17 than the applicable Lender would have been entitled
to receive with respect to the participation sold to such Participant, unless
the sale of the participation to such Participant is made with the Borrower’s
prior written consent.  A Participant
that would be a Non-U.S. Lender if it were a Lender shall not be entitled to
the benefits of Section 2.16 unless the Borrower is notified of the
participation sold to such Participant and such Participant agrees, for the
benefit of the Borrower, to comply with Sections 2.16(d) and (e)
as though it were a Lender.

(f)            Certain Pledges.  Notwithstanding anything to the contrary
contained herein, any Lender may, with notice to, but without prior consent of
the Borrower and the Administrative Agent, at any time pledge or assign a
security interest in all or any portion of its rights under this Agreement
(including under its Note, if any) to secure obligations of such Lender,
including any pledge or assignment to secure obligations to a Federal Reserve
Bank (provided that notice to the Borrower and the Administrative Agent shall
not be required in the case of a pledge or assignment to secure obligations to
a Federal Reserve Bank); provided further that no such pledge or assignment
shall release such Lender from any of its obligations hereunder or substitute,
or permit the substitution of, any such pledgee or assignee for such Lender as
a party hereto.

(g)           Electronic Execution
of Assignments.  The words “execution,”
“signed,” “signature,” and words of like import in any Assignment and
Assumption shall be deemed to include electronic signatures or the keeping of
records in electronic form, each of which shall be of the same legal effect,
validity or enforceability as a manually executed signature or the use of a
paper-based recordkeeping system, as the case may be, to the extent and as
provided for in any applicable Law, including the Federal Electronic Signatures
in Global and National Commerce Act, the New York State Electronic Signatures
and Records Act, or any other similar state laws based on the Uniform
Electronic Transactions Act.

(h)           Special Purpose Funding Vehicles. 
Notwithstanding anything to the contrary contained herein, any Lender (a
“Granting Lender”) may, with notice to, but without prior consent of the
Borrower and the Administrative Agent grant to a special purpose funding
vehicle identified as such in writing from time to time by the Granting Lender
to the Administrative Agent and the Borrower (an “SPC”) the option to
provide all or any part of any Loan that such Granting Lender would otherwise
be obligated to make pursuant to this Agreement; provided that (i)
nothing herein shall constitute a commitment by any SPC to fund any Loan, and
(ii) if an SPC elects not to exercise such option or otherwise fails to make
all or any part of such Loan, the Granting Lender shall be obligated to make
such Loan pursuant to the terms hereof and, if it fails to do so, to make such
payment to the Administrative Agent as is required under Section 2.14(e)(ii).  Each party hereto hereby agrees that (i)
neither the grant to any SPC nor the exercise by any SPC of such option shall
increase the costs or expenses or otherwise increase or change the obligations
of the Borrower under this Agreement (including its obligations under Section
2.15), (ii) no SPC shall be liable for any indemnity or similar payment
obligation under this Agreement for which a Lender would be liable, and (iii)
the Granting Lender shall for all purposes, including the approval of any
amendment, waiver or other modification of any provision of any Loan Document,
remain the lender of record hereunder. 
The making of a Loan by an SPC hereunder shall utilize the Revolving
Credit Commitment of

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the Granting Lender to the same extent, and as if, such Loan were made by
such Granting Lender.  In furtherance of
the foregoing, each party hereto hereby agrees (which agreement shall survive
the termination of this Agreement) that, prior to the date that is one year and
one day after the payment in full of all outstanding commercial paper or other
senior debt of any SPC, it will not institute against, or join any other Person
in instituting against, such SPC any bankruptcy, reorganization, arrangement,
insolvency, or liquidation proceeding under any Debtor Relief Laws or any other
Laws.  Notwithstanding anything to the
contrary contained herein, any SPC may (i) with notice to, but without prior
consent of the Borrower and the Administrative Agent and with the payment of a
processing fee in the amount of $3,500 (which processing fee may be waived by
the Administrative Agent in its sole discretion), assign all or any portion of
its right to receive payment with respect to any Loan to the Granting Lender
and (ii) disclose on a confidential basis any non-public information relating
to its funding of Loans to any rating agency, commercial paper dealer or
provider of any surety or guarantee or credit or liquidity enhancement to such
SPC.

(i)            Resignation as
Issuing Lender or Swing Line Lender after Assignment.  Notwithstanding anything to the contrary
contained herein, if at any time Bank of America, N.A. assigns all of its
Revolving Credit Commitment and Loans pursuant to Section 10.7(b), Bank
of America, N.A. may, (i) upon 30
days’ notice to the Borrower and the Lenders, resign as Issuing Lender, so long
as a successor Issuing Lender (consented to by the Borrower, such consent not
to be unreasonably withheld or delayed) has been appointed and/or (ii) upon 30 days’ notice to the Borrower, resign
as Swing Line Lender, so long as a successor Swing Line Lender (consented to by
the Borrower, such consent not to be unreasonably withheld or delayed) has been
appointed.  In the event of any such
resignation as Issuing Lender or Swing Line Lender, the Borrower shall be
entitled to appoint from among the Lenders a successor Issuing Lender or Swing
Line Lender hereunder; provided, however, that no failure by the
Borrower to appoint any such successor shall affect the resignation of Bank of
America, N.A. as Issuing Lender or Swing Line Lender, as the case may be.  If Bank of America, N.A. resigns as Issuing
Lender, it shall retain all the rights and obligations of the Issuing Lender
hereunder with respect to all Letters of Credit outstanding as of the effective
date of its resignation as Issuing Lender and all L/C Obligations with respect
thereto (including the right to require the Lenders to make Base Rate Loans or
fund risk participations in Unreimbursed Amounts pursuant to Section 3.3).  If Bank of America, N.A. resigns as Swing
Line Lender, it shall retain all the rights of the Swing Line Lender provided
for hereunder with respect to Swing Line Loans made by it and outstanding as of
the effective date of such resignation, including the right to require the
Lenders to make Base Rate Loans or fund risk participations in outstanding
Swing Line Loans pursuant to Section 2.4.  Upon the appointment of a successor Issuing
Lender and/or Swing Line Lender, (a) such successor shall succeed to and become
vested with all of the rights and obligations of the retiring Issuing Lender or
Swing Line Lender, as the case may be, and (b) the successor Issuing Lender
shall issue letters of credit in substitution for the Letters of Credit, if
any, outstanding at the time of such succession or make other arrangements
satisfactory to Bank of America, N.A. to effectively assume the obligations of
Bank of America, N.A. with respect to such Letters of Credit.

10.8.  Adjustments; Set-off.  (a) Except to the extent that this Agreement
provides for a payment to be allocated to a particular Lender, if any Lender (a
“Benefited Lender”) shall at any time receive any payment of all or part
of the obligations under the Credit Agreement or the other Loan Documents,
owing to it, or receive any collateral in respect thereof (whether

 83
 

voluntarily or
involuntarily, by set-off, pursuant to events or proceedings of the
nature referred to in Section 8.1(c), or otherwise), in a greater
proportion than any such payment to or collateral received by any other Lender,
if any, in respect of such other Lender’s obligations under the Credit
Agreement or the other Loan Documents, such Benefited Lender shall purchase for
cash from the other Lenders a participating interest in such portion of each
such other Lender’s obligations under the Credit Agreement or the other Loan
Documents, or shall provide such other Lenders with the benefits of any such
collateral, as shall be necessary to cause such Benefited Lender to share the
excess payment or benefits of such collateral ratably with each of the Lenders;
provided, however, that if all or any portion of such excess payment or
benefits is thereafter recovered from such Benefited Lender, such purchase
shall be rescinded, and the purchase price and benefits returned, to the extent
of such recovery, but without interest.

(b)           In addition to any
rights and remedies of the Lenders provided by Law, each Lender shall have the
right, without prior notice to the Borrower, any such notice being expressly
waived by the Borrower to the extent permitted by applicable Law, upon any
amount becoming due and payable by the Borrower hereunder (whether at the
stated maturity, by acceleration or otherwise), to set-off and appropriate and
apply against such amount any and all deposits (general or special, time or
demand, provisional or final), in any currency, and any other credits,
indebtedness or claims, in any currency, in each case whether direct or
indirect, absolute or contingent, matured or unmatured, at any time held or
owing by such Lender or any branch or agency thereof to or for the credit or
the account of the Borrower.  Each Lender
agrees promptly to notify the Borrower, as the case may be, and the
Administrative Agent after any such set-off and application made by such
Lender, provided that the failure to give such notice shall not affect
the validity of such set-off and application.

10.9.  Counterparts.  This Agreement may be executed by one or more
of the parties to this Agreement on any number of separate counterparts, and
all of said counterparts taken together shall be deemed to constitute one and
the same instrument.  Delivery of an
executed signature page of this Agreement by facsimile transmission shall be
effective as delivery of a manually executed counterpart hereof.  A set of the copies of this Agreement signed
by all the parties shall be lodged with the Borrower and the Administrative
Agent.

10.10.  Severability.  Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

10.11.  Integration.  This Agreement, the other Loan Documents and
the Fee Letters represent the entire agreement of the Borrower, the
Administrative Agent, the Arrangers, the Syndication Agent and the Lenders with
respect to the subject matter hereof and thereof, and there are no promises,
undertakings, representations or warranties by the Arrangers, the
Administrative Agent, the Syndication Agent or any Lender relative to subject
matter hereof not expressly set forth or referred to herein, in the other Loan
Documents or in the Fee Letters.  The
Borrower agrees that its obligations under the Fee Letters shall survive the
execution and delivery of this Agreement.

 84
 

10.12.  GOVERNING LAW.  THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS
OF THE PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK (EXCLUDING THE
LAWS APPLICABLE TO CONFLICTS OR CHOICE OF LAW TO THE EXTENT THAT THE
APPLICATION OF THE LAW OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY).

10.13.  SUBMISSION TO JURISDICTION; WAIVERS.  THE BORROWER HEREBY IRREVOCABLY AND
UNCONDITIONALLY:

(a)           SUBMITS FOR ITSELF AND
ITS PROPERTY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT AND THE
OTHER LOAN DOCUMENTS TO WHICH IT IS A PARTY, OR FOR RECOGNITION AND ENFORCEMENT
OF ANY JUDGMENT IN RESPECT THEREOF, TO THE NON-EXCLUSIVE GENERAL
JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK, THE COURTS OF THE
UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK, AND
APPELLATE COURTS FROM ANY THEREOF;

(b)           CONSENTS THAT ANY SUCH
ACTION OR PROCEEDING MAY BE BROUGHT IN SUCH COURTS AND WAIVES ANY OBJECTION
THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH ACTION OR PROCEEDING
IN ANY SUCH COURT OR THAT SUCH ACTION OR PROCEEDING WAS BROUGHT IN AN
INCONVENIENT COURT AND AGREES NOT TO PLEAD OR CLAIM THE SAME;

(c)           AGREES THAT SERVICE OF
PROCESS IN ANY SUCH ACTION OR PROCEEDING MAY BE EFFECTED BY MAILING A COPY
THEREOF BY REGISTERED OR CERTIFIED MAIL (OR ANY SUBSTANTIALLY SIMILAR FORM OF
MAIL), POSTAGE PREPAID, TO THE BORROWER AT ITS ADDRESS SET FORTH IN SECTION
10.2 OR AT SUCH OTHER ADDRESS OF WHICH THE ADMINISTRATIVE AGENT SHALL HAVE
BEEN NOTIFIED PURSUANT THERETO;

(d)           AGREES THAT NOTHING
HEREIN SHALL AFFECT THE RIGHT TO EFFECT SERVICE OF PROCESS IN ANY OTHER MANNER
PERMITTED BY LAW OR SHALL LIMIT THE RIGHT TO SUE IN ANY OTHER JURISDICTION; AND

(e)           WAIVES, TO THE MAXIMUM
EXTENT NOT PROHIBITED BY LAW, ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY
LEGAL ACTION OR PROCEEDING REFERRED TO IN THIS SECTION 10.13 ANY
SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES.

10.14.  WAIVERS
OF JURY TRIAL.  EACH PARTY TO THIS
AGREEMENT HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND,
ACTION OR CAUSE OF ACTION ARISING UNDER ANY LOAN DOCUMENT OR IN ANY WAY
CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO
OR ANY OF THEM WITH RESPECT TO ANY LOAN DOCUMENT, OR THE TRANSACTIONS RELATED
THERETO, IN EACH CASE

 85
 

WHETHER NOW
EXISTING OR HEREAFTER ARISING, AND WHETHER FOUNDED IN CONTRACT OR TORT OR
OTHERWISE; AND EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM,
DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A
JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR
A COPY OF THIS SECTION 10.14 WITH ANY COURT AS WRITTEN EVIDENCE OF THE
CONSENT OF THE SIGNATORIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY
JURY.

10.15.  No
Advisory or Fiduciary Responsibility.  In connection with this Agreement,
the Borrower acknowledges and agrees that: (a) the credit facility provided for
hereunder and any related arranging or other services in connection therewith
(including in connection with any amendment, waiver or other modification
hereof or of any other Loan Document) are an arm’s-length commercial
transaction between the Borrower and its Affiliates, on the one hand, and the
Administrative Agent and the Arrangers, on the other hand, and the Borrower is
capable of evaluating and understanding and understands and accepts the terms,
risks and conditions of the transactions contemplated hereby and by the other
Loan Documents (including any amendment, waiver or other modification hereof or
thereof); (b) in connection with the process leading to such transaction, the
Administrative Agent and the Arrangers, each is and has been acting solely as a
principal and is not the financial advisor, agent or fiduciary, for the
Borrower or any of its Affiliates, stockholders, creditors or employees or any
other Person; (c) neither the Administrative Agent nor the Arrangers have
assumed or will assume an advisory, agency or fiduciary responsibility in favor
of the Borrower with respect to this Agreement or the process leading thereto, including
with respect to any amendment, waiver or other modification hereof or of any
other Loan Document (irrespective of whether the Administrative Agent or the
Arrangers have advised or is currently advising the Borrower or any of its
Affiliates on other matters) and neither the Administrative Agent nor the
Arrangers have any obligation to the Borrower or any of its Affiliates with
respect to this Agreement except those obligations expressly set forth herein
and in the other Loan Documents; (d) the Administrative Agent and the Arrangers
and their respective Affiliates may be engaged in a broad range of transactions
that involve interests that differ from those of the Borrower and its
Affiliates, and neither the Administrative Agent nor the Arrangers have any
obligation to disclose any of such interests by virtue of any advisory, agency
or fiduciary relationship; and (e) the Administrative Agent and the Arrangers
have not provided and will not provide any legal, accounting, regulatory or tax
advice with respect to this Agreement (including any amendment, waiver or other
modification hereof or of any other Loan Document) and the Borrower has
consulted its own legal, accounting, regulatory and tax advisors to the extent
it has deemed appropriate.

10.16.  Confidentiality.  Each of the Administrative Agent and the
Lenders agrees to maintain the confidentiality of the Information (as defined
below), except that Information may be disclosed (a) to its Affiliates and to
its and its Affiliates’ respective partners, directors, officers, employees,
agents, advisors and representatives (it being understood that the Persons to
whom such disclosure is made will be informed of the confidential nature of
such Information and instructed to keep such Information confidential), (b) to
the extent requested by any regulatory authority purporting to have
jurisdiction over it (including any self-regulatory authority, such as the
NAIC), (c) to the extent required by applicable Laws or by any subpoena or
similar legal process, (d) to any other party hereto, (e) in connection with
the exercise of any remedies hereunder or under any other Loan Document or any
action or proceeding relating to

 86
 

this Agreement or
any other Loan Document or the enforcement of rights hereunder or thereunder,
(f) subject to an agreement containing provisions substantially the same as
those of this Section 10.16, to (i) any assignee of or Participant in,
or any prospective assignee of or Participant in, any of its rights or
obligations under this Agreement or (ii) any actual or prospective counterparty
(or its advisors) to any swap or derivative transaction relating to the
Borrower and its obligations, (g) with the consent of the Borrower or (h) to
the extent such Information (x) becomes publicly available other than as a
result of a breach of this Section 10.16 or (y) becomes available to the
Administrative Agent or any Lender on a nonconfidential basis from a source
other than the Borrower, provided that the Administrative Agent or any such
Lender, as applicable, will notify the Borrower as soon as practical in advance
of any proposed disclosure pursuant to clause (c) above, unless such
notification shall be prohibited by applicable law or legal process, so that
the Borrower may seek a protective order or other appropriate remedy and the
Administrative Agent or any such Lender, as applicable, will disclose only that
portion of the Information that it is advised by its counsel is legally
required or otherwise necessary to disclose. 
For purposes of this Section 10.16, “Information” means
all information received from the Borrower or any of its Subsidiaries relating
to the Borrower or any Subsidiary or any of their respective businesses, other
than any such information that is available to the Administrative Agent or any
Lender on a nonconfidential basis prior to disclosure by the Borrower or any
Subsidiary, provided that, in the case of information received from the
Borrower or any Subsidiary after the date hereof, such information is clearly
identified at the time of delivery as confidential.  Any Person required to maintain the
confidentiality of Information as provided in this Section 10.16 shall
be considered to have complied with its obligation to do so if such Person has
exercised the same degree of care to maintain the confidentiality of such
Information as such Person would accord to its own confidential information.

Each of the
Administrative Agent, the Lenders and the Issuing Lender acknowledges that (a)
the Information may include material non-public information concerning the
Borrower or a Subsidiary thereof, as the case may be, (b) it has developed
compliance procedures regarding the use of material non-public information and
(c) it will handle such material non-public information in accordance with applicable
Law, including Federal and state securities Laws.

10.17.  Release of Guarantee Obligations.  Notwithstanding anything to the contrary
contained herein or any other Loan Document (a) when all obligations of the
Borrower hereunder and under the other Loan Documents that are guaranteed under
the terms of the Guaranty have been paid in full, all Revolving Credit
Commitments have terminated, there exist no unpaid Reimbursement Obligations
and no Letter of Credit issued for the account of the Borrower shall be
outstanding or (b) so long as no Event of Default has occurred and is
continuing, at such time as the aggregate outstanding principal amount of
Indebtedness of Subsidiaries of OneBeacon Limited that is guaranteed by the
Borrower is $70,000,000 or less (excluding (i) any series of such Indebtedness
if all of such series has been defeased (including legal or covenant
defeasance) or discharged and (ii) such Indebtedness to the extent it is held
by the Borrower or any of its Subsidiaries), upon request of the Borrower, the
Administrative Agent shall (without vote or consent of any Lender) take such
actions as may be required to release all Guarantee Obligations of each
Guarantor under any Loan Document, including, without limitation, its Guaranty.  Any release of Guarantee Obligations pursuant
to clause (a) above shall be deemed subject to the provision that such
Guarantee Obligations shall be reinstated as to the

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Guarantors at the
time of such release, if after such release any portion of any payment in respect
of the obligations guaranteed thereby shall be rescinded or must otherwise be
restored or returned upon the insolvency, bankruptcy, dissolution, liquidation
or reorganization of the Borrower or such Guarantor, or upon or as a result of
the appointment of a receiver, intervenor or conservator of, or trustee or
similar officer for, the Borrower or such Guarantor or any substantial part of
its property, or otherwise, all as though such payment had not been made.  In addition, upon the request of the Borrower,
the Administrative Agent shall (without vote or consent of any Lender) so
release all Guarantee Obligations of any Guarantor, if such Guarantor is merged
or consolidated into another Person and such Guarantor is not the surviving
Person of such merger or consolidation, or such Guarantor is liquidated,
wound-up or dissolved, or such Guarantor otherwise ceases to be a Subsidiary of
the Borrower; provided, however, that (x) the surviving Person of any
such merger or consolidation is, or any assets transferred in connection with
such liquidation, winding-up or dissolution are transferred to, a Guarantor
(including a Subsidiary of the Borrower that becomes a Guarantor in connection
with such transaction) or a Subsidiary of a Guarantor (including a Person that
will become a Subsidiary of a Guarantor in connection with such transaction) or
(y) after giving effect to any such merger, consolidation, liquidation,
winding-up, dissolution, or cessation of such Guarantor’s status as a
Subsidiary of the Borrower, the aggregate Consolidated Net Worth of all other
Guarantors (including any Person that becomes a Guarantor or Subsidiary of a
Guarantor in connection with such transaction but excluding for purposes of
calculating the aggregate Consolidated Net Worth of all Guarantors any
outstanding Indebtedness of the Borrower to a Guarantor (to the extent
reflected as an asset of such Guarantor in the calculation of such Consolidated
Net Worth)) is not less than the amount then required by Section 7.1(a),
on a pro forma basis as of the end of the most recently completed fiscal
quarter for which financial statements have been delivered to the
Administrative Agent pursuant to Section 6.1(a).

10.18.  Accounting Changes.  In the event that any “Accounting Change” (as
defined below) shall occur and such change results in a change in the method of
calculation of financial covenants, standards or terms in this Agreement, then
the Borrower and the Administrative Agent agree, upon the request of the
Borrower or the Administrative Agent, to enter into negotiations in order to
amend such provisions of this Agreement so as to equitably reflect such
Accounting Change with the desired result that the criteria for evaluating the
Borrower’s financial condition shall be the same after such Accounting Change
as if such Accounting Change had not been made. 
Following any such request and until such time as such an amendment
shall have been executed and delivered by the Borrower, the Administrative
Agent and the Majority Lenders, all financial covenants, standards and terms in
this Agreement shall continue to be calculated or construed as if such
Accounting Change had not occurred.  “Accounting
Change” refers to a change in accounting principles required by the
promulgation of any rule, regulation, pronouncement or opinion by the Financial
Accounting Standards Board of the American Institute of Certified Public
Accountants, applicable Insurance Regulators, the NAIC or, if applicable, the
SEC.

10.19.  USA PATRIOT Act Notice.  Each Lender that is subject to the Act (as
hereinafter defined) and the Administrative Agent (for itself and not on behalf
of any Lender) hereby notifies the Borrower that pursuant to the requirements
of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26,
2001)) (the “Act”), it is required to obtain, verify and record
information that identifies the Borrower, which information includes the name
and

 88
 

address of the
Borrower and other information that will allow such Lender or the
Administrative Agent, as applicable, to identify the Borrower in accordance
with the Act.

10.20.  Interest Rate Limitation.

(a)           Notwithstanding
anything to the contrary contained in any Loan Document, if at any time the
rate of interest payable under any Loan Document (the “Stated Rate”)
would exceed the rate of interest permitted to be charged under any applicable
Law (the “Maximum Rate”), then for so long as the Maximum Rate would be
so exceeded, the rate of interest payable shall be equal to the Maximum Rate; provided
that if at any time thereafter, the Stated Rate is less than the Maximum Rate,
the Borrower shall, to the extent permitted by applicable Law, continue to pay
interest at the Maximum Rate until such time as the total interest received is
equal to the total interest which would have been received had the Stated Rate
been (but for the operation of this provision) the interest rate payable.  Thereafter, the interest rate payable shall
be the Stated Rate unless and until the Stated Rate again would exceed the
Maximum Rate, in which event this provision shall again apply.

(b)           In no event shall the
total interest received by a Lender exceed the amount which it could lawfully
have received had the interest been calculated for the full term hereof at the
Maximum Rate.

[Remainder of Page Left Intentionally Blank]

 89

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

 

	
  

  	
  The Borrower:

  
	
   

  	
   

  
	
   

  	
  WHITE MOUNTAINS INSURANCE GROUP,

  LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

	
  

  	
  BANK OF AMERICA, N.A., as

  
	
   

  	
  Administrative Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N.A., as

  
	
   

  	
  a Lender, Issuing Lender and Swing Line Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

	
  

  	
  LEHMAN BROTHERS BANK, FSB, as

  
	
   

  	
  a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

SCHEDULE
10.02

ADMINISTRATIVE
AGENT’S OFFICE;

CERTAIN ADDRESSES FOR NOTICES

BORROWER:

White Mountains Insurance Group, Ltd.

80 South Main Street

Hanover, NH 03755

Attention: Robert Seelig,
Esq.

Telephone: 603-640-2202

Telecopier: 603-643-4592

Electronic Mail: rseelig@whitemountains.com

U.S. Taxpayer Identification Number (White Mountains
Insurance Group, Ltd.):  94-2708455

with a copy to:

Cravath, Swaine and Moore
LLP

WorldWide Plaza

825 Eighth Avenue

New York, NY 10019-7475

Attention: Paul Michalski

Telecopier: 212-474-3700

ADMINISTRATIVE AGENT:

Administrative Agent’s Office

(for payments and Requests for Credit Extensions):

Bank of America, N.A.

2001 Clayton Road

Mail Code: CA4-702-02-25

Concord, CA 94520

Attention: Tina Obcena

Telephone: 925-675-8768

Telecopier: 888-969-9246

Electronic Mail:
tina.obcena@bankofamerica.com

Account No.: 3750836479

Ref:  White Mountains Insurance Group

ABA# 026009593

Other Notices as Administrative
Agent:

Bank of America, N.A.

Agency Management

1455 Market Street, 5th Floor

Mail Code: CA5-701-05-19

San Francisco, CA 94103

Attention: Aamir Saleem

Telephone: 415-436-2769

Telecopier: 415-503-5089

Electronic Mail: 
aamir.saleem@bankofamerica.com

ISSUING LENDER:

Bank of America, N.A.

Trade Operations

1000 W. Temple Street

Mail Code: CA9-705-07-05

Los Angeles, CA 90012-1514

Attention: Stella Rosales

Telephone: 213-481-7828

Telecopier: 213-580-8441

Electronic Mail: 
stella.rosales@bankofamerica.com

SWING LINE LENDER:

Bank of America, N.A.

2001 Clayton Road

Mail Code: CA4-702-02-25

Concord, CA 94520

Attention: Tina Obcena

Telephone: 925-675-8768

Telecopier: 888-969-9246

Electronic Mail:
tina.obcena@bankofamerica.com

Account No.: 3750836479

Ref:  White Mountains Insurance Group

ABA# 026009593

 2Exhibit
10.1

Published CUSIP
Number:                    

$1,050,000,000 SENIOR
SECURED CREDIT FACILITY

CREDIT AGREEMENT

Dated as of June 18, 2007

among

ENTERCOM RADIO, LLC  

as the Borrower,

ENTERCOM COMMUNICATIONS CORP.,

as the Parent,

BANK OF AMERICA, N.A

as Administrative Agent and L/C Issuer,

JPMORGAN CHASE BANK, N.A.

as Syndication Agent

BMO CAPITAL MARKETS, CORP.

BNP PARIBAS

MIZUHO CORPORATE BANK, LTD.

SUNTRUST BANK

as Co-Documentation Agents

and

The Other Lenders Party Hereto

BANC OF AMERICA SECURITIES LLC,

as Joint Lead Arranger and Joint Book Manager

J.P. MORGAN SECURITIES INC.,

as Joint Lead Arranger and Joint Book Manager

TABLE OF CONTENTS

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE I. DEFINITIONS AND ACCOUNTING TERMS

  	
   

  	
  1

  
	
  1.01

  	
   

  	
  Defined Terms

  	
   

  	
  1

  
	
  1.02

  	
   

  	
  Other Interpretive Provisions

  	
   

  	
  26

  
	
  1.03

  	
   

  	
  Accounting Terms

  	
   

  	
  27

  
	
  1.04

  	
   

  	
  Rounding

  	
   

  	
  27

  
	
  1.05

  	
   

  	
  Times of Day

  	
   

  	
  27

  
	
  1.06

  	
   

  	
  Letter of Credit Amounts

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II. THE COMMITMENTS AND CREDIT EXTENSIONS

  	
   

  	
  28

  
	
  2.01

  	
   

  	
  Loans

  	
   

  	
  28

  
	
  2.02

  	
   

  	
  Borrowings, Conversions and Continuations of Loans

  	
   

  	
  28

  
	
  2.03

  	
   

  	
  Letters of Credit

  	
   

  	
  30

  
	
  2.04

  	
   

  	
  Prepayments

  	
   

  	
  39

  
	
  2.05

  	
   

  	
  Termination or Reduction of Commitments

  	
   

  	
  41

  
	
  2.06

  	
   

  	
  Repayment of Obligations

  	
   

  	
  41

  
	
  2.07

  	
   

  	
  Interest

  	
   

  	
  42

  
	
  2.08

  	
   

  	
  Fees

  	
   

  	
  43

  
	
  2.09

  	
   

  	
  Computation of Interest and Fees

  	
   

  	
  43

  
	
  2.10

  	
   

  	
  Evidence of Debt

  	
   

  	
  43

  
	
  2.11

  	
   

  	
  Payments Generally; Administrative Agent’s Clawback

  	
   

  	
  44

  
	
  2.12

  	
   

  	
  Sharing of Payments by Lenders

  	
   

  	
  46

  
	
  2.13

  	
   

  	
  Incremental Facility

  	
   

  	
  47

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III. TAXES, YIELD PROTECTION AND ILLEGALITY

  	
   

  	
  49

  
	
  3.01

  	
   

  	
  Taxes

  	
   

  	
  49

  
	
  3.02

  	
   

  	
  Illegality

  	
   

  	
  51

  
	
  3.03

  	
   

  	
  Inability to Determine Rates

  	
   

  	
  51

  
	
  3.04

  	
   

  	
  Increased Costs; Reserves on Eurodollar Rate Loans

  	
   

  	
  52

  
	
  3.05

  	
   

  	
  Compensation for Losses

  	
   

  	
  53

  
	
  3.06

  	
   

  	
  Mitigation Obligations; Replacement of Lenders

  	
   

  	
  54

  
	
  3.07

  	
   

  	
  Survival

  	
   

  	
  54

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV. CONDITIONS PRECEDENT TO CREDIT
  EXTENSIONS

  	
   

  	
  54

  
	
  4.01

  	
   

  	
  Conditions of Initial Credit Extension

  	
   

  	
  54

  
	
  4.02

  	
   

  	
  Conditions to all Credit Extensions

  	
   

  	
  57

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V. REPRESENTATIONS AND WARRANTIES

  	
   

  	
  58

  
	
  5.01

  	
   

  	
  Existence, Qualification and Power; Compliance with
  Laws

  	
   

  	
  58

  
	
  5.02

  	
   

  	
  Authorization; No Contravention

  	
   

  	
  58

  
	
  5.03

  	
   

  	
  Governmental Authorization; Other Consents

  	
   

  	
  58

  
	
  5.04

  	
   

  	
  Binding Effect

  	
   

  	
  58

  
	
  5.05

  	
   

  	
  Financial Statements; No Material Adverse Effect

  	
   

  	
  59

  
	
  5.06

  	
   

  	
  Litigation

  	
   

  	
  59

  

 

 

	
  5.07

  	
   

  	
  No Default

  	
   

  	
  59

  
	
  5.08

  	
   

  	
  Ownership of Property; Liens

  	
   

  	
  59

  
	
  5.09

  	
   

  	
  Environmental Compliance

  	
   

  	
  60

  
	
  5.10

  	
   

  	
  Insurance

  	
   

  	
  60

  
	
  5.11

  	
   

  	
  Taxes

  	
   

  	
  60

  
	
  5.12

  	
   

  	
  ERISA Compliance

  	
   

  	
  60

  
	
  5.13

  	
   

  	
  Subsidiaries; Equity Interests

  	
   

  	
  61

  
	
  5.14

  	
   

  	
  Margin Regulations; Investment Company Act

  	
   

  	
  61

  
	
  5.15

  	
   

  	
  Disclosure

  	
   

  	
  61

  
	
  5.16

  	
   

  	
  Compliance with Laws

  	
   

  	
  62

  
	
  5.17

  	
   

  	
  License Subsidiaries

  	
   

  	
  62

  
	
  5.18

  	
   

  	
  The Parent

  	
   

  	
  62

  
	
  5.19

  	
   

  	
  Solvent

  	
   

  	
  63

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI. AFFIRMATIVE COVENANTS

  	
   

  	
  63

  
	
  6.01

  	
   

  	
  Financial Statements

  	
   

  	
  63

  
	
  6.02

  	
   

  	
  Certificates; Other Information

  	
   

  	
  64

  
	
  6.03

  	
   

  	
  Notices

  	
   

  	
  66

  
	
  6.04

  	
   

  	
  Payment of Certain Obligations

  	
   

  	
  67

  
	
  6.05

  	
   

  	
  Preservation of Existence, Etc

  	
   

  	
  67

  
	
  6.06

  	
   

  	
  Maintenance of Properties

  	
   

  	
  67

  
	
  6.07

  	
   

  	
  Maintenance of Insurance

  	
   

  	
  67

  
	
  6.08

  	
   

  	
  Compliance with Laws

  	
   

  	
  67

  
	
  6.09

  	
   

  	
  Books and Records

  	
   

  	
  67

  
	
  6.10

  	
   

  	
  Inspection Rights

  	
   

  	
  68

  
	
  6.11

  	
   

  	
  Use of Proceeds

  	
   

  	
  68

  
	
  6.12

  	
   

  	
  Additional Guarantors

  	
   

  	
  68

  
	
  6.13

  	
   

  	
  FCC Consents

  	
   

  	
  69

  
	
  6.14

  	
   

  	
  Collateral

  	
   

  	
  69

  
	
  6.15

  	
   

  	
  Further Assurances

  	
   

  	
  69

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII. NEGATIVE COVENANTS

  	
   

  	
  69

  
	
  7.01

  	
   

  	
  Liens

  	
   

  	
  70

  
	
  7.02

  	
   

  	
  Investments

  	
   

  	
  71

  
	
  7.03

  	
   

  	
  Indebtedness

  	
   

  	
  71

  
	
  7.04

  	
   

  	
  Fundamental Changes

  	
   

  	
  73

  
	
  7.05

  	
   

  	
  Dispositions

  	
   

  	
  73

  
	
  7.06

  	
   

  	
  Restricted Payments

  	
   

  	
  74

  
	
  7.07

  	
   

  	
  Acquisitions

  	
   

  	
  75

  
	
  7.08

  	
   

  	
  Change in Nature of Business

  	
   

  	
  77

  
	
  7.09

  	
   

  	
  Transactions with Affiliates

  	
   

  	
  77

  
	
  7.10

  	
   

  	
  Negative Pledge Clauses

  	
   

  	
  77

  
	
  7.11

  	
   

  	
  Use of Proceeds

  	
   

  	
  77

  
	
  7.12

  	
   

  	
  Amendment of Material Documents and Agreements

  	
   

  	
  77

  
	
  7.13

  	
   

  	
  Financial Covenants

  	
   

  	
  78

  
	
  7.14

  	
   

  	
  License Subsidiaries

  	
   

  	
  78

  
	
  7.15

  	
   

  	
  Senior Subordinated Notes

  	
   

  	
  78

  

 

 

	
  7.16

  	
   

  	
  Sale and Leaseback Transactions

  	
   

  	
  78

  
	
  7.17

  	
   

  	
  Unrestricted Subsidiaries

  	
   

  	
  79

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII. EVENTS OF DEFAULT AND REMEDIES

  	
   

  	
  79

  
	
  8.01

  	
   

  	
  Events of Default

  	
   

  	
  79

  
	
  8.02

  	
   

  	
  Remedies Upon Event of Default

  	
   

  	
  82

  
	
  8.03

  	
   

  	
  Application of Funds

  	
   

  	
  82

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX. ADMINISTRATIVE AGENT

  	
   

  	
  83

  
	
  9.01

  	
   

  	
  Appointment and Authority

  	
   

  	
  83

  
	
  9.02

  	
   

  	
  Rights as a Lender

  	
   

  	
  84

  
	
  9.03

  	
   

  	
  Exculpatory Provisions

  	
   

  	
  84

  
	
  9.04

  	
   

  	
  Reliance by Agents

  	
   

  	
  85

  
	
  9.05

  	
   

  	
  Delegation of Duties

  	
   

  	
  85

  
	
  9.06

  	
   

  	
  Resignation of Administrative Agent

  	
   

  	
  85

  
	
  9.07

  	
   

  	
  Non-Reliance on Agents and Other Lenders

  	
   

  	
  87

  
	
  9.08

  	
   

  	
  No Other Duties, Etc

  	
   

  	
  87

  
	
  9.09

  	
   

  	
  Administrative Agent May File Proofs of Claim

  	
   

  	
  87

  
	
  9.10

  	
   

  	
  Collateral and Guaranty Matters

  	
   

  	
  88

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE X. MISCELLANEOUS

  	
   

  	
  88

  
	
  10.01

  	
   

  	
  Amendments, Etc

  	
   

  	
  88

  
	
  10.02

  	
   

  	
  Notices; Effectiveness; Electronic Communication

  	
   

  	
  90

  
	
  10.03

  	
   

  	
  No Waiver; Cumulative Remedies

  	
   

  	
  92

  
	
  10.04

  	
   

  	
  Expenses; Indemnity; Damage Waiver

  	
   

  	
  92

  
	
  10.05

  	
   

  	
  Payments Set Aside

  	
   

  	
  94

  
	
  10.06

  	
   

  	
  Successors and Assigns

  	
   

  	
  94

  
	
  10.07

  	
   

  	
  Treatment of Certain Information; Confidentiality

  	
   

  	
  99

  
	
  10.08

  	
   

  	
  Right of Setoff

  	
   

  	
  99

  
	
  10.09

  	
   

  	
  Interest Rate Limitation

  	
   

  	
  100

  
	
  10.10

  	
   

  	
  Counterparts; Integration; Effectiveness

  	
   

  	
  100

  
	
  10.11

  	
   

  	
  Survival of Representations and Warranties

  	
   

  	
  100

  
	
  10.12

  	
   

  	
  Severability

  	
   

  	
  101

  
	
  10.13

  	
   

  	
  Replacement of Lenders

  	
   

  	
  101

  
	
  10.14

  	
   

  	
  Governing Law; Jurisdiction; Etc

  	
   

  	
  102

  
	
  10.15

  	
   

  	
  Waiver of Jury Trial

  	
   

  	
  103

  
	
  10.16

  	
   

  	
  FCC Compliance

  	
   

  	
  103

  
	
  10.17

  	
   

  	
  USA PATRIOT Act Notice

  	
   

  	
  104

  
	
  10.18

  	
   

  	
  Time of the Essence

  	
   

  	
  104

  
	
  10.19

  	
   

  	
  Designation as Senior Indebtedness

  	
   

  	
  104

  
	
  10.20

  	
   

  	
  Commitment Letter

  	
   

  	
  104

  
	
  10.21

  	
   

  	
  No Advisory or Fiduciary Responsibility

  	
   

  	
  104

  
	
  10.22

  	
   

  	
  ENTIRE AGREEMENT

  	
   

  	
  105

  

 

 

	
  SCHEDULES

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  1.01

  	
   

  	
  Existing Letters of Credit

  	
   

  	
   

  
	
  2.01

  	
   

  	
  Commitments and Applicable Percentages

  	
   

  	
   

  
	
  5.05

  	
   

  	
  Supplement to Interim Financial Statements

  	
   

  	
   

  
	
  5.13

  	
   

  	
  Subsidiaries and Other Equity Investments

  	
   

  	
   

  
	
  7.01

  	
   

  	
  Existing Liens

  	
   

  	
   

  
	
  7.03

  	
   

  	
  Existing Indebtedness

  	
   

  	
   

  
	
  10.02

  	
   

  	
  Administrative Agent’s Office, Certain Addresses for
  Notices

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBITS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Form of

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  A

  	
   

  	
  Loan Notice

  	
   

  	
   

  
	
  B-1

  	
   

  	
  Committed Loan Note

  	
   

  	
   

  
	
  B-2

  	
   

  	
  Term Loan Note

  	
   

  	
   

  
	
  C

  	
   

  	
  Compliance Certificate

  	
   

  	
   

  
	
  D

  	
   

  	
  Assignment and Assumption

  	
   

  	
   

  
	
  E

  	
   

  	
  Guaranty

  	
   

  	
   

  

 

ENTERCOM RADIO, LLC

$1,050,000,000 SENIOR
SECURED CREDIT FACILITY

$500,000,000 UNCOMMITTED INCREASE OPTION

CREDIT AGREEMENT

This CREDIT AGREEMENT (“Agreement”) is entered
into as of June 18, 2007, among Entercom Radio, LLC, a Delaware limited
liability company (the “Borrower”), Entercom Communications Corp., a
Pennsylvania corporation (the “Parent”), each lender from time to time
party hereto (collectively, the “Lenders” and individually, a “Lender”),
BANK OF AMERICA, N.A. (“Bank of America”), as Administrative Agent and
L/C Issuer, JPMORGAN CHASE BANK, N.A. (“Chase”), as Syndication Agent
and BMO CAPITAL MARKETS, CORP., BNP PARIBAS, MIZUHO CORPORATE BANK, LTD. and
SUNTRUST BANK, as Co-Documentation Agents.

The Borrower has requested that the Administrative Agent
and the Lenders enter into a credit facility with a revolving credit facility
and a term loan A facility, and the Lenders are willing to do so on the terms
and conditions set forth herein.

In consideration of the mutual covenants and
agreements herein contained, the parties hereto covenant and agree as follows:

ARTICLE
I.

DEFINITIONS AND ACCOUNTING TERMS

1.01                           Defined Terms.  As used in this Agreement, the following
terms shall have the meanings set forth below:

“Acquisition” means (whether by purchase,
exchange, issuance of stock or other equity or debt securities, merger,
reorganization or any other method) (i) any consummated acquisition by the
Parent, the Borrower or any of their Restricted Subsidiaries of any other
Person, which Person shall then become consolidated with the Parent, the
Borrower or any such Restricted Subsidiary in accordance with GAAP, or
(ii) any acquisition by the Parent, the Borrower or any of their
Restricted Subsidiaries of a station, other business unit or all or any substantial
amount of the assets of any other Person. 
For purposes of the preceding sentence, an amount of assets shall be
deemed to be “substantial” if such assets have a fair market value in excess of
$5,000,000; provided, however, that the purchase of equipment and other goods
and services in the ordinary course of business shall not be deemed to be “Acquisitions”.

“Administrative Agent” means Bank of America in
its capacity as administrative agent under any of the Loan Documents, or any
successor administrative agent or servicing agent engaged in accordance with
the terms of Section 9.06.

“Administrative Agent’s Office” means the
Administrative Agent’s address and, as appropriate, account as set forth on Schedule 10.02,
or such other address or account as the Administrative Agent may from time to
time notify to the Borrower and the Lenders.

 1
 

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

“Adverse Tax Consequence” means, for the
Parent, the Borrower or any Restricted Subsidiary, a tax assessment, fee or
charge in an amount equal to or in excess of $25,000.00.

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

“Agents” means the Administrative Agent and the
Syndication Agent.

“Aggregate Commitments” means the sum of the
Commitments of all the Lenders.  On the
Closing Date, the Aggregate Commitments are $650,000,000.

“Agreement” means this Credit Agreement.

“Applicable Percentage” means with respect to
any Lender at any time, (a) in respect of Term A Loans, the percentage
(carried out to the ninth decimal place) of the aggregate amount of all Term A
Loans by all Lenders represented by the principal amount of such Lender’s
Term A Loans at such time (as may be adjusted pursuant to Section 2.13)
and (b) in respect of Committed Loans, the percentage (carried out to the ninth
decimal place) of the Aggregate Commitments represented by such Lender’s
Commitment at such time.  If the
commitment of each Lender to make Committed Loans and the obligation of the L/C
Issuer to make L/C Credit Extensions have been terminated pursuant to Section 8.02
or if the Aggregate Commitments have expired, then the Applicable Percentage of
each Lender shall be determined based on the Applicable Percentage of such
Lender most recently in effect, giving effect to any subsequent
assignments.  The initial Applicable
Percentage of each Lender is set forth opposite the name of such Lender on Schedule 2.01
or in the Assignment and Assumption pursuant to which such Lender becomes a
party hereto, as applicable.

“Applicable Rate” means, (i) until receipt by
the Administrative Agent of the first Compliance Certificate in accordance with
the terms of Section 6.02(a), for (a) Committed Loans and Term A
Loans that are Eurodollar Rate Loans, 1.00% per annum, (b) Committed Loans and
Term A Loans that are Base Rate Loans, 0.00% per annum, and (c) the Commitment
Fee, 0.350% per annum, and (ii) thereafter, for Committed Loans, Term A Loans
and the Commitment Fee, the following percentages per annum, based upon the
Consolidated Leverage Ratio as set forth in the most recent Compliance Certificate
received by the Administrative Agent pursuant to Section 6.02(a):

Applicable Rate

 

	
  Pricing 

  Level

  	
   

  	
  Consolidated Leverage

  Ratio

  	
   

  	
  Commitment Fee

  	
   

  	
  Eurodollar Rate and

  Letters of Credit

  	
   

  	
  Base Rate

  	
   

  
	
  1

  	
   

  	
  £ 3.50:1

  	
   

  	
  0.250

  	
  %

  	
  0.500

  	
  %

  	
  0.000

  	
  %

  
	
  2

  	
   

  	
  >3.50:1
  but £ 4.00:1

  	
   

  	
  0.300

  	
  %

  	
  0.625

  	
  %

  	
  0.000

  	
  %

  
	
  3

  	
   

  	
  >4.00:1
  but £ 4.50:1

  	
   

  	
  0.350

  	
  %

  	
  0.750

  	
  %

  	
  0.000

  	
  %

  
	
  4

  	
   

  	
  >4.50:1
  but £ 5.00:1

  	
   

  	
  0.350

  	
  %

  	
  0.875

  	
  %

  	
  0.000

  	
  %

  
	
  5

  	
   

  	
  >5.00:1
  but £ 5.50:1

  	
   

  	
  0.350

  	
  %

  	
  1.000

  	
  %

  	
  0.000

  	
  %

  
	
  6

  	
   

  	
  >5.50:1

  	
   

  	
  0.350

  	
  %

  	
  1.125

  	
  %

  	
  0.125

  	
  %

  

 

 2
 

Any increase or decrease
in the Applicable Rate resulting from a change in the Consolidated Leverage
Ratio shall become effective as of the first Business Day immediately following
the date a Compliance Certificate is delivered pursuant to Section 6.02(a);
provided, however, that if a Compliance Certificate is not
delivered when due in accordance with such Section, then Pricing Level 6 set
forth above shall apply as of the first Business Day after the date on which
such Compliance Certificate was required to have been delivered, until the
first Business Day after such Compliance Certificate is delivered.

“Approved Fund” means any Fund 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.

“Arrangers” means Banc of America  Securities LLC and J.P. Morgan Securities Inc., in their
capacity as joint lead arrangers and joint book managers.

“Assignment and Assumption” means an assignment
and assumption entered into by a Lender and an Eligible Assignee (with the
consent of any party whose consent is required by Section 10.06(b)),
and accepted by the Administrative Agent, in substantially the form of Exhibit D
or any other form approved by the Administrative Agent.

“Attributable Indebtedness” means, on any date,
(a) in respect of any capital lease of any Person, the capitalized amount
thereof that would appear on a balance sheet of such Person prepared as of such
date in accordance with GAAP, and (b) in respect of any Synthetic Lease
Obligation, the capitalized amount of the remaining lease payments under the
relevant lease that would appear on a balance sheet of such Person prepared as
of such date in accordance with GAAP if such lease were accounted for as a
capital lease.

“Audited Financial Statements” means the
audited consolidated balance sheet of the Parent (including accounts of the
Borrower and its Restricted Subsidiaries) for the fiscal year ended December
31, 2006, and the related consolidated statements of income or operations,
shareholders’ equity and cash flows for such fiscal year of the Parent,
including the notes thereto.

“Auto-Extension Letter of Credit” has the
meaning specified in Section 2.03(b)(iii).

“Availability Period” means the period from and
including the Closing Date to the earliest of (a) the Maturity Date, (b) the
date of termination of the Aggregate Commitments pursuant to Section 2.05,
and (c) the date of termination of the commitment of each Lender to make
Committed Loans and of the obligation of the L/C Issuer to make L/C Credit
Extensions pursuant to Section 8.02.

“Bank of America” means Bank of America, N.A.
and its successors.

“Base Rate” means for any day a fluctuating
rate per annum equal to the higher of (a) the Federal Funds Rate plus 1/2
of 1% and (b) the rate of interest in effect for such day as publicly announced
from time to time by the Administrative Agent as its “prime rate.”  The “prime rate” is 

 3
 

a rate set by the
Administrative Agent based upon various factors including the Administrative
Agent’s costs and desired return, general economic conditions and other
factors, and is used as a reference point for pricing some loans, which may be
priced at, above, or below such announced rate. 
Any change in such rate announced by the Administrative Agent shall take
effect at the opening of business on the day specified in the public
announcement of such change.

“Base Rate Committed Loan” means a Committed
Loan that is a Base Rate Loan.

“Base Rate Loan” means a Loan that bears
interest based on the Base Rate.

“Borrower” has the meaning specified in the
introductory paragraph hereto.

“Borrowing” means a Committed Borrowing or a
Term Loan Borrowing, or both, as the context may require.

“Borrower Materials” has the meaning specified
in Section 6.02.

“Business” means the Stations, and for the
Parent, the Borrower and the Restricted Subsidiaries, advertising or
subscription dependent media, broadcast, internet audio, related businesses and
reasonable extensions thereof.

“Business Day” means any day other than a
Saturday, Sunday or other day on which commercial banks are authorized to close
under the Laws of, or are in fact closed in, the state where the Administrative
Agent’s Office is located and, if such day relates to any Eurodollar Rate Loan,
means any such day on which dealings in Dollar deposits are conducted by and
between banks in the London interbank Eurodollar market.

“Cash Collateralize” has the meaning specified
in Section 2.03(g).

“Change in Law” means the occurrence, after the
date of this Agreement, of any of the following:  (a) the adoption or taking effect of any law,
rule, regulation or treaty, (b) any change in any law, rule, regulation or
treaty or in the administration, interpretation or application thereof by any
Governmental Authority or (c) the making or issuance of any guideline or
directive (whether or not having the force of law) by any Governmental
Authority.

“Change of Control” means an event or series of
events by which:

(a)                                  any
“person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, but excluding the Permitted Holders and any
employee benefit plan of such person or its subsidiaries, and any person or
entity acting in its capacity as trustee, agent or other fiduciary or administrator
of any such plan) becomes the “beneficial owner” (as defined in Rules 13d-3 and
13d-5 under the Securities Exchange Act of 1934, except that a person or group
shall be deemed to have “beneficial ownership” of all securities that such
person or group has the right to acquire (such right, an “option right”),
whether such right is exercisable immediately or only after the passage of
time), directly or indirectly, of 35% or more of the equity securities of the
Parent entitled to vote for members of the board of directors or equivalent
governing 

 4
 

body of the Parent on a
fully-diluted basis (and taking into account all such securities that such
person or group has the right to acquire pursuant to any option right); or

(b)                                 a
majority of the seats on the board of directors or other governing body of the
Parent or the Borrower shall be occupied by Persons who were not
(i) nominated by the board of directors or other governing body of the
Parent (in the case of the Parent’s board) or the Borrower (in the case of the
Borrower’s board), (ii) appointed by directors so nominated or
(iii) in the case of the Parent, nominated by Permitted Holders; or

(c)                                  except
as permitted by the terms of this Agreement, the Parent shall cease to own 100%
of the issued and outstanding membership interests and other Equity Interests
and securities of the Borrower, free and clear of liens (other than those
granted to secure the Obligations), or the Borrower shall cease to own,
directly or indirectly, the issued and outstanding membership interests,
capital stock, partnership interests or other Equity Interests of each
Restricted Subsidiary, free and clear of liens (other than those granted to
secure the Obligations); or

(d)                                 any
Person or two or more Persons acting in concert (other than Permitted Holders)
shall have acquired by contract or otherwise, or shall have entered into a
contract or arrangement that, upon consummation thereof, will result in its or
their acquisition of the power to exercise, directly or indirectly, a controlling
influence over the management or policies of the Parent or the Borrower, or
control over the equity securities of the Parent or the Borrower entitled to
vote for members of the board of directors or equivalent governing body of the
Parent or the Borrower, respectively, on a fully-diluted basis (and taking into
account all such securities that such Person or group has the right to acquire
pursuant to any option right) representing 35% or more of the combined voting
power of such securities.

“Chase” means JPMorgan Chase Bank, N.A. and its
successors.

“Closing Date” means the first date all the
conditions precedent in Section 4.01 are satisfied or waived in
accordance with Section 10.01 and the initial funding of the
Committed Loans and Term A Loan occurs.

“Code” means the Internal Revenue Code of 1986.

“Collateral” means (a) all present and future
Equity Interests of the Borrower, and (b) all Equity Interests of all of
the direct and indirect Subsidiaries of the Borrower and the Parent in
existence on the Closing Date, (c) all present and future Equity Interests
owned by the Borrower, the Parent and their direct and indirect Restricted
Subsidiaries of all present and future direct and indirect Restricted
Subsidiaries of the Parent and the Borrower, except (i) in the case of each
Subsidiary that is a “controlled foreign corporation” under Section 957 of the
Internal Revenue Code, or exclusively a holding company of a foreign controlled
corporation (“Subject Subsidiary”), “Collateral” shall be limited to a pledge
of 66% of the Equity Interests of each Subject Subsidiary, to the extent the
pledge of any greater percentage would result in an Adverse Tax Consequence to
the Borrower and (ii) Excluded Collateral and (d) all proceeds and
products of the Equity Interest described in subsections (a), (b) and (c)
preceding.

 5
 

“Commitment” means, as to each Lender, its
obligation to (a) make Committed Loans to the Borrower pursuant to Section 2.01(a),
and (b) purchase participations in L/C Obligations, in an aggregate principal
amount at any one time outstanding not to exceed the amount set forth opposite
such Lender’s name on Schedule 2.01 or in the Assignment and
Assumption pursuant to which such Lender becomes a party hereto, as applicable,
as such amount may be adjusted from time to time in accordance with this
Agreement.

“Committed Borrowing” means a borrowing
consisting of one or more Committed Loans made on the same day of the same Type
and, in the case of Eurodollar Rate Loans, having the same Interest Period made
by each of the Lenders pursuant to Section 2.01(a).

“Committed Loan” has the meaning specified in Section 2.01(a).

“Committed Loan Notice” means a notice of
(a) a Committed Borrowing, (b) a conversion of Committed Loans from
one Type to the other, or (c) a continuation of Committed Loans that are
Eurodollar Rate Loans, pursuant to Section 2.02(a), which, if in
writing, shall be substantially in the form of Exhibit A, or any other
form approved by the Administrative Agent.

“Communications Act” shall mean the Communications
Act of 1934, and any similar or successor federal statute, and the rules and
regulations of the FCC thereunder, all as the same may be in effect from time
to time.

“Compliance Certificate” means a certificate
substantially in the form of Exhibit C, or any other form approved by
the Administrative Agent.

“Consolidated Funded Indebtedness” means, as of
any date of determination, for the Parent, the Borrower and their Restricted
Subsidiaries on a consolidated basis, the sum of (without duplication)
(a) the outstanding principal amount of all obligations, whether current
or long-term, for borrowed money (including Obligations hereunder) and all
obligations evidenced by bonds, debentures, notes, loan agreements or other
similar instruments, (b) all purchase money Indebtedness, (c) all direct
and indirect obligations arising under letters of credit (including standby and
commercial), bankers’ acceptances, bank guaranties, surety bonds and similar
instruments, (d) all obligations in respect of the deferred purchase price
of property or services (other than trade accounts payable in the ordinary
course of business not in excess of $5,000,000 and, in each case, not past due
for more than 180 days unless disputed in good faith), (e) Attributable
Indebtedness in respect of capital leases and Synthetic Lease Obligations in
excess of $5,000,000 in the aggregate at any one time outstanding,
(f) indebtedness (excluding prepaid interest thereon) secured by (or for
which the holder of such debt has an existing right, contingent or otherwise,
to be secured by) any Lien on property owned or acquired by the Parent, the
Borrower or any of their Restricted Subsidiaries, whether or not the
obligations secured thereby have been assumed by such Person or is limited in
recourse (provided that, if such Indebtedness is non-recourse, the amount of
such Indebtedness for purposes hereof shall be limited to the lesser of the
principal amount of such Indebtedness and the fair market value of the property
serving as collateral therefor), (g) at any time after the occurrence and
during the continuance of an Event of Default under any agreement of any Loan
Party governing Swap Contracts, the aggregate amount payable by such Loan Party
under such agreement, (h) all Guarantees with respect to outstanding
Indebtedness of the types specified in subsections 

 6
 

(a) through (g) above of
Persons other than the Parent, the Borrower or any Restricted Subsidiary, and
(i) the aggregate amount of Indebtedness of Unrestricted Subsidiaries of the
types referred to in subsections (a) through (h) above for which any Loan
Party has direct liability.  The amount
of any capital lease or Synthetic Lease Obligation as of any date shall be
deemed to be the amount of Attributable Indebtedness in respect thereof as of
such date.  For purposes of calculating
Consolidated Funded Indebtedness with respect to any Acquisition or Disposition
of any Station or assets that occurs during any period of determination, and
any related incurrence or repayment of Consolidated Funded Indebtedness
(including its effect on Consolidated Operating Cash Flow), (x) any Acquisition
by the Borrower, the Parent or their Restricted Subsidiaries, may, at the
option of the Borrower upon notice to the Administrative Agent, be deemed to
have occurred on the first day of such period, (y) any Disposition of any
Station or other assets for consideration in excess of $25,000,000 by any of
the Parent, the Borrower or any of their Restricted Subsidiaries (and any
related incurrence or repayment of Indebtedness) which occurs during such
period shall be deemed to have occurred on the first day of such period, and
(z) any Disposition of any Station or other assets for consideration equal to
or less than $25,000,000 by any of the Parent, the Borrower or any of their
Restricted Subsidiaries (and any related incurrence or repayment of
Indebtedness) which occurs during such period may, at the option of the
Borrower upon notice to the Administrative Agent, be deemed to have occurred on
the first day of such period, provided that, notwithstanding the foregoing, (i)
any Disposition and Acquisition occurring as part of the same or related
transactions shall be treated in a consistent manner, and (ii) with
respect to any financial covenant calculation or Consolidated Leverage Ratio
determination for interest rates or any other provision herein, each
determination and calculation made with respect to such covenant shall include
or exclude financial information in connection with Acquisitions and
Dispositions in a consistent manner and (iii) with respect to any period,
each financial covenant under Section 7.13 shall include or exclude
financial information in connection with Acquisitions and Dispositions in a
consistent manner.

“Consolidated
Interest Charges” means, for any period, for the Parent, the Borrower and
their Restricted Subsidiaries on a consolidated basis, the sum of (a) all cash
interest, premium payments, debt discount, fees, charges (excluding fees and
charges related to the Loans) and related cash expenses of the Parent, the
Borrower and their Restricted Subsidiaries in connection with borrowed money
(including capitalized interest) or in connection with the deferred purchase
price of assets, in each case to the extent treated as interest in accordance with
GAAP, and (b) the portion of rent expense of the Parent, the Borrower and
their Restricted Subsidiaries paid in cash during such period under capital
leases that is treated as interest in accordance with generally accepted
accounting principles, in the case of (a) and (b) preceding, net of
(i) consolidated interest income of the Parent, the Borrower and their
Restricted Subsidiaries for such period and (ii) interest accrued on the
Attributable Indebtedness and other obligations described in subsection (e) of
the definition of Consolidated Funded Indebtedness.  For purposes of calculating Consolidated
Interest Charges in any period (A) net cash payments made or received by the
Parent, the Borrower and their Restricted Subsidiaries with respect to Swap
Contracts shall be included in the computation of gross interest expense, and
(B) with respect to any Acquisition or Disposition of any Station or
assets that occurs during any period of determination, and any related
incurrence or repayment of Consolidated Funded Indebtedness (including its
effect on Consolidated Operating Cash Flow), (x) any Acquisition by the
Borrower, the Parent or their Restricted Subsidiaries, may, at the option of
the Borrower upon notice to the Administrative Agent, be deemed to have occurred
on the first day of such period, (y) any 

 7
 

Disposition of any
Station or other assets for consideration in excess of $25,000,000 by any of
the Parent, the Borrower or any of their Restricted Subsidiaries (and any
related incurrence or repayment of Indebtedness) which occurs during such
period shall be deemed to have occurred on the first day of such period, and
(z) any Disposition of any Station or other assets for consideration equal to
or less than $25,000,000 by any of the Parent, the Borrower or any of their
Restricted Subsidiaries (and any related incurrence or repayment of
Indebtedness) which occurs during such period may, at the option of the
Borrower upon notice to the Administrative Agent, be deemed to have occurred on
the first day of such period, provided that, notwithstanding the foregoing, (i)
any Disposition and Acquisition occurring as part of the same or related
transactions shall be treated in a consistent manner, and (ii) with
respect to any financial covenant calculation or Consolidated Leverage Ratio
determination for interest rates or any other provision herein, each
determination and calculation made with respect to such covenant shall include
or exclude financial information in connection with Acquisitions and
Dispositions in a consistent manner and (iii) with respect to any period,
each financial covenant under Section 7.13 shall include or exclude
financial information in connection with Acquisitions and Dispositions in a
consistent manner.  Notwithstanding the
foregoing, clauses (a) and (b) above shall be calculated including Unrestricted
Subsidiaries, but be limited to the amount of such items for which a Loan Party
has direct liability.

“Consolidated Interest Coverage Ratio” means,
as of any date of determination, the ratio of (a) Consolidated Operating
Cash Flow for the period of the four most recently completed fiscal quarters of
the Parent to (b) Consolidated Interest Charges for such period.

“Consolidated Leverage Ratio” means, as of any
date of determination, the ratio of (a) Consolidated Funded Indebtedness
as of such date to (b) Consolidated Operating Cash Flow for the period of
the four most recently completed fiscal quarters of the Parent.  For purposes of calculating the Consolidated
Leverage Ratio as of any date of determination, Consolidated Funded
Indebtedness shall be reduced by the amount of cash on hand of the Borrower as
of such date in excess of $3,000,000 up to a maximum amount of $25,000,000.

“Consolidated Net Income” means, for any
period, for the Parent (including the accounts of the Borrower and their
Restricted Subsidiaries) on a consolidated basis, the pre-tax net income of the
Parent, the Borrower and their Restricted Subsidiaries for that period.

“Consolidated Operating Cash Flow” means for
the Parent, the Borrower and their Restricted Subsidiaries, the sum of (a)
Consolidated Net Income (excluding to the extent included in Consolidated Net
Income (i) extraordinary gains, including net gains on the sales of assets
other than asset sales in the ordinary course of business, (ii) any items of
extraordinary loss, including net losses on the sale of assets other than asset
sales in the ordinary course of business and (iii) (without duplication),
up to $10,000,000 in connection with the settlement of and expenses relating
to, legal or administrative proceedings of the Parent, the Borrower or the
Restricted Subsidiaries that (x) are uninsured and (y) exist and were disclosed
to the Administrative Agent on or prior to December 8, 2006), plus (b) interest
expense, depreciation and amortization, deferred and other non-cash charges,
plus (c) to the extent received by the Borrower and not already included in
Consolidated Net Income, cash received from joint ventures and Unrestricted
Subsidiaries, plus (d) equity based compensation, if any, plus (e) up to
$2,000,000 in the aggregate for all Acquisitions over the term of this
Agreement in connection 

 8
 

with pro forma cost
savings of the Borrower (the “Add Back”), but only to the extent that
(i) such cost savings are reflected in good faith projections delivered to
the Administrative Agent, (ii) the Borrower has commenced such necessary action
to generate such annualized cost savings no later than 180 days after the
consummation of the Acquisitions, and (iii) such Add Back is reduced each
consecutive fiscal quarter of the Borrower after its initial use by up to
$500,000 (or such lesser amount as equals one-fourth of the total Add Back) per
quarter.  For purposes of calculating
Consolidated Operating Cash Flow with respect to any Acquisition or Disposition
of any Station or assets that occurs during any period of determination, and
any related incurrence or repayment of Consolidated Funded Indebtedness
(including its effect on Consolidated Operating Cash Flow), (x) any Acquisition
by the Borrower, the Parent or their Restricted Subsidiaries, may, at the
option of the Borrower upon notice to the Administrative Agent, be deemed to
have occurred on the first day of such period, (y) any Disposition of any
Station or other assets for consideration in excess of $25,000,000 by any of
the Parent, the Borrower or any of their Restricted Subsidiaries (and any
related incurrence or repayment of Indebtedness) which occurs during such
period shall be deemed to have occurred on the first day of such period, and
(z) any Disposition of any Station or other assets for consideration equal to
or less than $25,000,000 by any of the Parent, the Borrower or any of their
Restricted Subsidiaries (and any related incurrence or repayment of
Indebtedness) which occurs during such period may, at the option of the
Borrower upon notice to the Administrative Agent, be deemed to have occurred on
the first day of such period, provided that, notwithstanding the foregoing, (i)
any Disposition and Acquisition occurring as part of the same or related
transactions shall be treated in a consistent manner, and (ii) with
respect to any financial covenant calculation or Consolidated Leverage Ratio
determination for interest rates or any other provision herein, each determination
and calculation made with respect to such covenant shall include or exclude
financial information in connection with Acquisitions and Dispositions in a
consistent manner and (iii) with respect to any period, each financial
covenant under Section 7.13 shall include or exclude financial
information in connection with Acquisitions and Dispositions in a consistent
manner.  In addition, the Borrower may
elect to adjust Consolidated Operating Cash Flow to give effect to the
cancellation of sports agreements.

“Control” means the possession, directly or
indirectly, of the power to direct or cause the direction of the management or
policies of a Person, whether through the ability to exercise voting power, by
contract or otherwise, provided that, the directors, officers and employees of
a Person shall not be deemed to control such Person as a result of their role
as such.  “Controlling” and “Controlled”
have meanings correlative thereto.

“Credit Extension” means each of the following:
(a) a Borrowing and (b) an L/C Credit Extension.

“Debtor Relief Laws” means the Bankruptcy Code
of the United States, and all other liquidation, conservatorship, bankruptcy,
assignment for the benefit of creditors, moratorium, rearrangement,
receivership, insolvency, reorganization, or similar debtor relief Laws of the
United States or other applicable jurisdictions from time to time in effect and
affecting the rights of creditors generally.

“Default” means any event or condition that
constitutes an Event of Default or that, with the giving of any notice, the
passage of time, or both, would be an Event of Default.

 9
 

“Default Rate” means (a) when used with respect
to Obligations other than Letter of Credit Fees, an interest rate equal to (i)
the Base Rate plus (ii) the Applicable Rate, if any, applicable to Base Rate
Loans plus (iii) 2% per annum; provided, however, that
with respect to a Eurodollar Rate Loan, the Default Rate shall be an interest
rate equal to the interest rate (including any Applicable Rate) otherwise
applicable to such Loan plus 2% per annum, and (b) when used with respect
to Letter of Credit Fees, a rate equal to the Applicable Rate plus 2% per
annum.

“Defaulting Lender” means any Lender that (a)
has failed to fund any portion of the Loans or participations in L/C Obligations
required to be funded by it hereunder within one Business Day of the date
required to be funded by it hereunder, (b) has otherwise failed to pay over to
the Administrative Agent or any other Lender any other amount required to be
paid by it hereunder within one Business Day of the date when due, unless the
subject of a good faith dispute, (c) is the sole Lender giving notice to the
L/C Issuer under Section 2.03(b)(ii) or Section 2.03(b)(iii)
or (d) has been deemed insolvent or become the subject of a bankruptcy or
insolvency proceeding.

“Disposition” or “Dispose” means the
sale, assignment, transfer in full, conveyance, or other disposition (including
dispositions pursuant to Local Marketing Agreements, Joint Sales Agreements or
Shared Services Agreements or pursuant to any sale and leaseback transaction)
of any property by the Parent, the Borrower or any of their Restricted
Subsidiaries, including any such disposition or other disposal, with or without
recourse, of any notes or accounts receivable or any rights and claims
associated therewith, but excluding assets disposed of in the ordinary course
of business of such Person.

“Dollar” and “$” mean lawful money of
the United States.

“Domestic Subsidiary” means any Restricted
Subsidiary that is organized under the laws of any political subdivision of the
United States, unless the direct or indirect parent of such Subsidiary is not
so organized.

“EDGAR”, means the Electronic Data Gathering,
Analysis, and Retrieval system or any similar system used by the SEC for
electronic SEC filings.

“Eligible Assignee” means (a) a Lender; (b) an
Affiliate of a Lender or an Approved Fund approved by the Administrative Agent
and the L/C Issuer and (c) any other Person (other than a natural person)
approved by (i) the Administrative Agent and the L/C Issuer, and
(ii) unless an Event of Default has occurred and is continuing, the
Borrower (each such approval not to be unreasonably withheld or delayed); provided
that notwithstanding the foregoing, “Eligible Assignee” shall not include (x)
the Parent, the Borrower or any of the Parent’s or the Borrower’s Affiliates or
Subsidiaries or (y) any direct and known competitor of the Parent, the Borrower
or any of their Subsidiaries.

“Environmental Laws” means any and all
applicable federal, state, local, and foreign statutes, laws, regulations,
ordinances, rules, judgments, orders, decrees, permits, licenses, agreements or
governmental restrictions relating to pollution and the protection of the
environment or the release of any Hazardous Materials into the environment,
including those 

 10
 

related to hazardous
substances or wastes, air emissions and discharges to waste or public systems.

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

“Equity Interests” means, with respect to any
Person, all of the shares of capital stock, membership or partnership of (or
other ownership interests in) such Person, all of the warrants, options or
other rights for the purchase or Acquisition from such Person of shares of
capital stock, membership or partnership of (or other ownership interests in)
such Person, all of the securities convertible into or exchangeable for shares
of capital stock of (or other ownership interests in) such Person or warrants,
rights or options for the purchase or Acquisition from such Person of such
shares (or such other interests), and all of the other ownership interests in
such Person (including partnership, member or trust interests therein), whether
voting or nonvoting, and whether or not such shares, warrants, options, rights
or other interests are outstanding on any date of determination.

“ERISA” means the Employee Retirement Income
Security Act of 1974.

“ERISA Affiliate” means any trade or business
(whether or not incorporated) under common control with the Parent or the
Borrower within the meaning of Section 414(b) or (c) of the Code (and Sections 414(m)
and (o) of the Code for purposes of provisions relating to Section 412 of
the Code).

“ERISA Event” means (a) a Reportable Event with
respect to a Pension Plan; (b) a withdrawal by the Parent or the Borrower or
any ERISA Affiliate from a Pension Plan subject to Section 4063 of ERISA
during a plan year in which it was a substantial employer (as defined in
Section 4001(a)(2) of ERISA) or a cessation of operations that is treated
as such a withdrawal under Section 4062(e) of ERISA; (c) a complete or
partial withdrawal by the Parent or the Borrower or any ERISA Affiliate from a
Multiemployer Plan or notification that a Multiemployer Plan is in
reorganization; (d) the filing of a notice of intent to terminate, the
treatment of a Plan amendment as a termination under Sections 4041 or 4041A of
ERISA, or the commencement of proceedings by the PBGC to terminate a Pension
Plan or Multiemployer Plan; (e) an event or condition which constitutes
grounds under Section 4042 of ERISA for the termination of, or the
appointment of a trustee to administer, any Pension Plan or Multiemployer Plan;
or (f) the imposition of any liability under Title IV of ERISA, other than for
PBGC premiums due but not delinquent under Section 4007 of ERISA, upon the
Parent, the Borrower or any ERISA Affiliate.

 11
 

“Eurodollar
Rate”  means, for any Interest Period
with respect to a Eurodollar Rate Loan, the rate per annum equal to the British
Bankers Association LIBOR Rate (“BBA LIBOR”), as published by Reuters (or other
commercially available source providing quotations of BBA LIBOR as designated
by the Administrative Agent from time to time) at approximately 11:00 a.m.,
London time, two Business Days prior to the commencement of such Interest
Period, for Dollar deposits (for delivery on the first day of such Interest
Period) with a term equivalent to such Interest Period.  If such rate is not available at such time
for any reason, then the “Eurodollar Rate” for such Interest Period shall be
the rate per annum determined by the Administrative Agent to be the rate at
which deposits in Dollars for delivery on the first day of such Interest Period
in same day funds in the approximate amount of the Eurodollar Rate Loan being
made, continued or converted by the Administrative Agent and with a term equivalent
to such Interest Period would be offered by the Administrative Agent’s London
Branch to major banks in the London interbank eurodollar market at their
request at approximately 11:00 a.m. (London time) two Business Days prior to
the commencement of such Interest Period.

“Eurodollar Rate Loan” means a Loan that bears
interest at a rate based on the Eurodollar Rate.

“Event of Default” has the meaning specified in
Section 8.01.

“Excluded Collateral” means any Equity
Interests owned by the Parent, the Borrower or any of their Subsidiaries in the
Unrestricted Subsidiaries.

“Excluded Taxes” means, with respect to the
Administrative Agent, any Lender, the L/C Issuer or any other recipient of any
payment to be made by or on account of any obligation of the Borrower
hereunder, (a) taxes imposed on or measured by its overall net income (however
denominated), and franchise taxes imposed on it (in lieu of net income taxes),
by any jurisdiction (or any political subdivision thereof) under the laws of
which such recipient is organized, is resident or is doing business, (b) any
branch profits taxes imposed by the United States or any similar tax imposed by
any other jurisdiction in which the Borrower is located and (c) in the case of
a Foreign Lender (other than an assignee pursuant to a request by the Borrower
under Section 10.13), any withholding tax that is imposed on
amounts payable to such Foreign Lender at the time such Foreign Lender becomes
a party hereto (or designates a new Lending Office) or is attributable to such
Foreign Lender’s failure or inability (other than as a result of a Change in
Law) to comply with Section 3.01(e), except to the extent that such
Foreign Lender (or its assignor, if any) was entitled, at the time of
designation of a new Lending Office (or assignment), to receive additional
amounts from the Borrower with respect to such withholding tax pursuant to Section 3.01(a).

“Existing Credit Agreement” means that certain
Credit Agreement, dated as of August 12, 2004, among the Borrower, the Parent
as a guarantor, KeyBank National Association, as Administrative Agent and L/C
Issuer, Bank of America as Syndication Agent, Harris Nesbitt, JPMorgan Chase
Bank, N.A. and SunTrust Bank as Co-Documentation Agents, and a syndicate of
lenders, as amended through the date hereof.

“Existing Letters of Credit” means those
letters of credit listed on Schedule 1.01.

 12
 

“FCC” shall mean the Federal Communications
Commission and any successor or substitute governmental commission, agency,
department, board or authority performing functions similar to those performed
by the Federal Communications Commission on the date hereof.

“FCC Regulations” shall mean all rules,
regulations, written policies, orders and decisions of the FCC under the
Communications Act.

“Federal Funds Rate”  means, for any day, the rate per annum equal
to the weighted average 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 (a) if such day 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 (b) if no such rate is so published on such
next succeeding Business Day, the Federal Funds Rate for such day shall be the
average rate (rounded upward, if necessary, to a whole multiple of 1/100 of 1%)
charged to the Administrative Agent on such day on such transactions as
determined by the Administrative Agent.

“Fee Letters” means (i) the letter agreement,
dated June 11, 2007 among the Borrower, Bank of America and Banc of America
Securities LLC., (ii) the letter agreement, dated June 11, 2007, among the
Borrower, JPMorgan Chase Bank and J.P. Morgan Securities Inc., and
(iii) any other fee letter entered into by the Borrower and any Agent,
Arranger or Lender in connection with this Agreement.

“Final Order” means an action or order issued
by the FCC (a) which has not been reversed, stayed, enjoined, set aside,
annulled or suspended, and (b) with respect to which (i) no requests
or petitions have been filed for administrative or judicial review,
reconsideration, rehearing, appeal or stay, and the time for filing any such
requests or petitions and for the FCC to set aside the action on its own motion
has expired, (ii) in the event of review, reconsideration or appeal, the
time for further review, reconsideration or appeal has expired, and
(iii) no appeal to a court or request for stay by a court of such action
is pending or in effect, and, if any deadline for filing any such appeal or
request is designated by statute or rule, it has passed.

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

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

“Fund” means any Person (other than a natural
person) that is (or will be) engaged in making, purchasing, holding or
otherwise investing in commercial loans and similar extensions of credit in the
ordinary course of its business.

“GAAP” means generally accepted accounting
principles in the United States set forth in the opinions and pronouncements of
the Accounting Principles Board and the American Institute 

 13
 

of Certified Public
Accountants and statements and pronouncements of the Financial Accounting
Standards Board or such other principles as may be approved by a significant
segment of the accounting profession in the United States, that are applicable
to the circumstances as of the date of determination, consistently applied.

“Governmental Authority” means the government
of the United States or any other nation, or of any political subdivision
thereof, whether state or local, and any agency, authority, instrumentality,
regulatory body, court, central bank or other governmental entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers
or functions of or pertaining to government (including any supra-national
bodies such as the European Union or the European Central Bank).

“Granting Lender” has the meaning specified in Section 10.06(h).

“Guarantee” means, as to any Person, any (a)
any obligation, contingent or otherwise, of such Person guaranteeing or having
the economic effect of guaranteeing any Indebtedness or other obligation
payable or performable by another Person (the “primary obligor”) in any manner,
whether directly or indirectly, and including any obligation of such Person,
direct or indirect, (i) to purchase or pay (or advance or supply funds for the
purchase or payment of) such Indebtedness or other obligation, (ii) to purchase
or lease property, securities or services for the purpose of assuring the
obligee in respect of such Indebtedness or other obligation of the payment or
performance of such Indebtedness or other obligation, (iii) to maintain working
capital, equity capital or any other financial statement condition or liquidity
or level of income or cash flow of the primary obligor so as to enable the
primary obligor to pay such Indebtedness or other obligation, or (iv) entered
into for the purpose of assuring in any other manner the obligee in respect of
such Indebtedness or other obligation of the payment or performance thereof or
to protect such obligee against loss in respect thereof (in whole or in part),
or (b) any Lien on any assets of such Person securing any Indebtedness or other
obligation of any other Person, whether or not such Indebtedness or other
obligation is assumed by such Person (or any right, contingent or otherwise, of
any holder of such Indebtedness to obtain any such Lien).  The amount of any Guarantee shall be deemed
to be an amount equal to the stated or determinable amount of the related
primary obligation, or portion thereof, for which such Person is liable under
such Guarantee or, if not stated or determinable, the maximum reasonably
anticipated liability in respect thereof as determined by the guaranteeing
Person in good faith.  The term “Guarantee”
as a verb has a corresponding meaning.

“Guarantors” means, collectively, the Parent
and each existing and future direct and indirect Domestic Subsidiary and, to
the extent no Adverse Tax Consequence would result, foreign Subsidiary of the
Parent and the Borrower, except (i) any Domestic Subsidiary of the Borrower
that exclusively holds all the equity interests of one or more foreign
Subsidiaries and the Guaranty of which would cause Adverse Tax Consequence to
the Borrower and (ii) Unrestricted Subsidiaries.

“Guaranty” means the Guaranty made by the
Guarantors in favor of the Administrative Agent and the Lenders, substantially
in the form of Exhibit E.

 14
 

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

“Incremental Facility” has the meaning
specified in Section 2.13(a).

“Incremental Revolver Loan” has the meaning
specified in Section 2.13(a).

“Incremental Loan Amendment” has the meaning
specified in Section 2.13(e).

“Incremental Term Loan” has the meaning specified
in Section 2.13(a).

“Indebtedness” means, as to any Person at a
particular time, without duplication, all of the following, whether or not
included as indebtedness or liabilities in accordance with GAAP:

(a)                                all
obligations of such Person for borrowed money and all obligations of such
Person evidenced by bonds, debentures, notes, loan agreements or other similar
instruments;

(b)                               all
direct or contingent obligations of such Person arising under letters of credit
(including standby and commercial), bankers’ acceptances, bank guaranties,
surety bonds and similar instruments;

(c)                                net
obligations of such Person under any Swap Contract;

(d)                               all
obligations of such Person to pay the deferred purchase price of property or
services (other than trade accounts payable in the ordinary course of business
and deferred compensation);

(e)                                indebtedness
(excluding prepaid interest thereon) secured by (or for which the holder of
such debt has an existing right, contingent or otherwise, to be secured by) any
Lien on property owned or acquired by the Parent, the Borrower or any of their
Restricted Subsidiaries, whether or not the obligations secured thereby have
been assumed by such Person or is limited in recourse (provided that, if such
Indebtedness is non-recourse, the amount of such Indebtedness for purposes
hereof shall be limited to the lesser of the principal amount of such
Indebtedness and the fair market value of the property serving as collateral
therefor);

(f)                                  capital
leases and Synthetic Lease Obligations; and

(g)                               all
Guarantees of such Person in respect of any of the foregoing.

For all purposes hereof, the Indebtedness of any
Person shall include the Indebtedness of any partnership or joint venture
(other than a joint venture that is itself a corporation or limited liability
company) in which such Person is a general partner or a joint venturer to the
extent a Loan Party is liable therefor. 
The amount of any net obligation under any Swap Contract on any date
shall be deemed to be the Swap Termination Value thereof as of such date.  The amount of

 15

any capital lease or
Synthetic Lease Obligation as of any date shall be deemed to be the amount of
Attributable Indebtedness in respect thereof as of such date.

“Indemnified Taxes” means Taxes other than
Excluded Taxes.

“Indemnitees” has the meaning specified in Section 10.04(b).

“Indenture” means that certain Indenture, dated
as of March 5, 2002, among the Borrower, Entercom Capital, Inc. a Delaware
corporation, the Parent, the subsidiary guarantors listed therein and HSBC Bank
USA, as Trustee, together with that certain First Supplemental Indenture, dated
as of March 5, 2002, among the Borrower, Entercom Capital, Inc. a Delaware
corporation, the Parent, the subsidiary guarantors listed therein and HSBC Bank
USA, as Trustee.

“Interest Payment Date” means, (a) as to any
Loan other than a Base Rate Loan, the last day of each Interest Period
applicable to such Loan and the Maturity Date; provided, however,
that if any Interest Period for a Eurodollar Rate Loan exceeds three months,
the respective dates that fall every three months after the beginning of such
Interest Period shall also be Interest Payment Dates; and (b) as to any Base
Rate Loan, the last Business Day of each March, June, September and December
and the Maturity Date.

“Interest Period” means, as to each Eurodollar
Rate Loan, the period commencing on the date such Eurodollar Rate Loan is
disbursed or converted to or continued as a Eurodollar Rate Loan and ending on
the date one, two, three or six months thereafter, or, subject to each Lender’s
availability, nine or twelve months, as selected by the Borrower in its
Committed Loan Notice or Term Loan Notice; provided that:

(h)                               any
Interest Period that would otherwise end on a day that is not a Business Day
shall be extended to the next succeeding Business Day unless such Business Day
falls in another calendar month, in which case such Interest Period shall end
on the next preceding Business Day;

(i)                                   any
Interest Period that begins on the last Business Day of a calendar month (or on
a day for which there is no numerically corresponding day in the calendar month
at the end of such Interest Period) shall end on the last Business Day of the
calendar month at the end of such Interest Period; and

(j)                                   no
Interest Period shall extend beyond the Maturity Date.

“Investment” means, as to any Person, any
direct or indirect investment by such Person, whether by means of (a) the
purchase or other Acquisition of capital stock or other securities of another
Person, (b) a loan, advance or capital contribution to, Guarantee or assumption
of debt of, or purchase or other Acquisition of any other debt or equity
participation or interest in, another Person, including any partnership or
joint venture interest in such other Person and any arrangement pursuant to
which the investor Guaranties Indebtedness of such other Person, or
(c) the purchase or other Acquisition (in one transaction or a series of
transactions) of assets of another Person that constitute a business unit, provided
that, an Investment shall not include any purchase that meets the definition of
an Acquisition.  For purposes of covenant
compliance, the 

 16
 

amount of any Investment
shall be the amount actually invested, without adjustment for subsequent
increases or decreases in the value of such Investment.

“IRS” means the United States Internal Revenue
Service.

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

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

“Joint Sales Agreement” means an agreement for
the sale of commercial or advertising time or any similar arrangement pursuant
to which a Person obtains the right to (i) sell at least a
majority of the time for commercial spot announcements, and/or resell to
advertisers such time on, (ii) provide the sales staff for the sale of the
advertising time or the collection of accounts receivable with respect to
commercial advertisements broadcast on, (iii) set the rates for
advertising on and/or (iv) provide the advertising material for broadcast
on, a radio broadcast station the FCC License of which is held by a Person
other than an Affiliate of such Person.

“Laws” means, collectively, all international,
foreign, Federal, state and local statutes, treaties, rules, regulations,
ordinances, codes and administrative or judicial precedents or authorities,
including the interpretation or administration thereof by any Governmental
Authority charged with the enforcement, interpretation or administration
thereof, and all applicable administrative orders, directed duties, licenses,
authorizations and permits of, and agreements with, any Governmental Authority,
in each case whether or not having the force of law, including, when used with
respect to the Parent, the Borrower and their Subsidiaries, the Communications
Act and all FCC Regulations.

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

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

“L/C Credit Extension” means, with respect to
any Letter of Credit, the issuance thereof or extension of the expiry date
thereof, or the increase of the amount thereof.

“L/C Issuer” means Bank of America, in its
capacity as issuer of Letters of Credit hereunder, or any successor issuer of
Letters of Credit hereunder, provided that, with respect to the Existing
Letters of Credit only (and only so long as there are any remaining undrawn
Existing Letters of Credit), “L/C Issuer” shall also include KeyBank National
Association, but KeyBank National Association shall not have right or
obligation to issue any new Letters of Credit, and shall not renew, amend,
modify or otherwise alter, extend or increase any of the Existing Letters of
Credit.

 17
 

“L/C Obligations” means, as at any date of
determination, the aggregate amount available to be drawn under all outstanding
Letters of Credit plus the aggregate of all Unreimbursed Amounts,
including (without duplication) all L/C Borrowings.  For purposes of computing the amount
available to be drawn under any Letter of Credit, the amount of such Letter of
Credit shall be determined in accordance with Section 1.06.  For all purposes of this Agreement, if on any
date of determination a Letter of Credit has expired by its terms but any
amount may still be drawn thereunder by reason of the operation of Rule 3.14 of
the ISP, such Letter of Credit shall be deemed to be “outstanding” in the
amount so remaining available to be drawn.

“Lender” has the meaning specified in the
introductory paragraph hereto.

“Lending Office” means, as to any Lender, the
office or offices of such Lender described as such in such Lender’s
Administrative Questionnaire, or such other office or offices as a Lender may
from time to time notify the Borrower and the Administrative Agent.

“Letter of Credit” means any standby letter of
credit issued hereunder and shall include the Existing Letters of Credit.

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

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

“Letter of Credit Fee” has the meaning
specified in Section 2.03(i).

“Letter of Credit Sublimit” means an amount
equal to $250,000,000.  Letter of Credit Sublimit is part of, and not
in addition to, the Aggregate Commitments.

“License” means any authorization, permit,
consent, franchise, ordinance, registration, certificate, license, agreement or
other right filed with, granted by, or entered into by a federal, state or
local Governmental Authority which permits or authorizes the acquisition,
construction or operation of a radio broadcasting station, or any part of a
radio broadcasting station or which is required for the acquisition, ownership
or operation of any Station.

“License Subsidiary” means any Subsidiary of
the Borrower and the Parent formed or acquired solely for the purpose of
holding Licenses issued by the FCC.

“Licensing Authority” means a Governmental
Authority which has granted or issued a License.

“Lien” means any mortgage, pledge,
hypothecation, encumbrance, lien (statutory or other) or other security
interest or preferential arrangement in the nature of a security interest of
any kind or nature whatsoever (including any conditional sale or other title
retention agreement, any easement, right of way or other encumbrance on title
to real property, and any financing lease having substantially the same
economic effect as any of the foregoing).

 18
 

“Like Kind Exchanges” means an exchange of
like-kind property under Section 1031 of the Code to the maximum extent
possible under Section 1031, established pursuant to a “qualified escrow
account” within the meaning of Treas. Reg. Section 1.1031(k)-1(g)(3) with a “qualified
intermediary” within the meaning of Treas. Reg. Section 1.1031(k)-1(g)(4),
which account shall be governed by an escrow agreement complying with the
requirements of Treas. Reg. Sections 1.1031(k)-1(g)(4) and 1.1031(k)-1(g)(6).

“Loan” means an extension of credit by a Lender
to the Borrower under Article II in the form of a Committed Loan, Term
Loan, Incremental Revolver Loan or Incremental Term Loan.

“Loan Documents” means this Agreement, each
Note, each Issuer Document, each Fee Letter, each Pledge Agreement and the
Guaranty, and each other document or agreement executed by any Loan Party in
connection with this Agreement from time to time, except Swap Contracts.

“Loan Notice” means a Committed Loan Notice or
a Term Loan Notice, or both, as applicable in the context used.

“Loan Parties” means, collectively, the
Borrower, the Parent and each Guarantor.

“Local Marketing Agreement” means a local
marketing arrangement, time brokerage agreement, management agreement or
similar arrangement pursuant to which a Person, subject to customary preemption
rights and other limitations, obtains the right to exhibit programming and sell
all advertising time during more than fifty percent (50%) of the air time of a
radio broadcast station licensed to another Person.

“Material Adverse Effect” means (a) a material
adverse change in, or a material adverse effect upon, the business, assets,
properties, liabilities, operations or financial condition of either (i) the
Parent, the Borrower and their Subsidiaries taken as a whole or (ii) the
Parent, the Borrower and the Restricted Subsidiaries taken as a whole;
(b) a material adverse effect upon the ability of the Borrower to perform
its material obligations under this Agreement; (c) a material adverse
effect upon the legality, validity, binding effect or enforceability against
the Borrower of this Agreement or (d) a material adverse effect upon (i)
the ability of the Loan Parties taken as a whole to perform their material
obligations under the Loan Documents or (ii) the legality, validity,
binding effect or enforceability against the Loan Parties taken as a whole of
the Loan Documents.

“Material Contractual Obligation” means, as to
the Parent, the Borrower and their Subsidiaries, any provision of any security
issued by such Person, or of any agreement, instrument or other undertaking
(other than Material Operating Agreements) to which such Person is a party or
by which it or any of its property is bound, in each case set forth above, the
termination or adverse modification of which could reasonably be expected to
have a Material Adverse Effect.

“Material Operating Agreement” means any
programming agreement, time brokerage, Local Marketing Agreement or similar
agreement, franchise agreement, lease or other agreement relating to the
operation of a Station by the Parent, the Borrower or any of their
Subsidiaries, in 

 19
 

each case set forth
above, the termination or adverse modification of which could reasonably be
expected to have a Material Adverse Effect.

“Material Subsidiary” means any Restricted
Subsidiary of the Borrower whose operating cash flow (using the determination
set forth in Consolidated Operating Cash Flow for such Subsidiary only) for the
most recently completed twelve month period was greater than ten percent of the
Consolidated Operating Cash Flow for the Parent, the Borrower and their
Restricted Subsidiaries on a consolidated basis, or whose assets comprised more
than ten percent of the total assets of the Parent, the Borrower and its
Restricted Subsidiaries, on a consolidated basis, as of the fiscal quarter most
recently ended.

“Maturity Date” means June 30, 2012, or such
earlier date as the Obligations become due and payable hereunder, whether by
reduction of the Aggregate Commitments to zero, termination, acceleration or
otherwise.

“Multiemployer Plan” means any employee benefit
plan of the type described in Section 4001(a)(3) of ERISA, to which the
Parent, the Borrower or any ERISA Affiliate makes or is obligated to make
contributions, or during the preceding five plan years, has made or been
obligated to make contributions.

“Net Cash Proceeds” means, in connection with
any Disposition, the cash proceeds (including any cash payments received by way
of deferred payment pursuant to a promissory note, receivable or otherwise, but
only as and when received in cash) of such Disposition net of (i) reasonable
transaction costs (including any underwriting, brokerage or other selling
commissions and reasonable legal, advisory and other fees and expenses,
including title and recording expenses, associated therewith actually incurred
and satisfactorily documented), (ii) required payments on Indebtedness
permitted to exist hereunder related to assets sold in such Disposition (other
than payments due with respect to the Obligations) (iii) taxes estimated to be
paid as a result of such Disposition, and (iv) with respect to any Subsidiary
that is an Unrestricted Subsidiary, the portion of the gross proceeds of such
Disposition payable to the minority holder(s) of the Equity Interests in such
Unrestricted Subsidiary in accordance with the applicable percentage ownership
of such Equity Interests.

“Net Investments” means, on any date of
determination, the difference between (a) the aggregate amount of all
Investments, loans and advances by the Parent, the Borrower and their
Restricted Subsidiaries in or to all Unrestricted Subsidiaries, minus (b) the
aggregate amount of cash received by the Borrower and its Restricted Subsidiaries
(x) from any Unrestricted Subsidiary that is used in full by the Borrower to
repay amounts outstanding under the Term Loans, and (y) as a result of the sale
of all of the assets of, or all of the Equity Interests in, any Unrestricted
Subsidiary, which such net proceeds are used to repay the outstanding
Obligations.  Net Investments shall be
certified to the Lenders in the Compliance Certificate delivered in accordance
with Section 6.02(a).

“Notes” means promissory notes made by the
Borrower in favor of a Lender evidencing (a) Committed Loans made by such
Lender and/or (b) Term Loans made by such Lender, substantially in the form of Exhibit
B-1 and B-2, as applicable, and “Note” shall mean any one or
more of the Notes, as applicable in the context used.

 20
 

“Obligations” means all advances to, and debts,
liabilities, obligations, covenants and duties of, any Loan Party arising under
any Loan Document with respect to any Loan or Letter of Credit, or with respect
to a Swap Contract of the Parent, the Borrower or any Subsidiary to which the
Lender or any Affiliate of any Lender is a party, in each case whether direct
or indirect (including those acquired by assumption), absolute or contingent,
due or to become due, now existing or hereafter arising and including interest
and fees with respect to any of the foregoing that accrue after the
commencement by or against any Loan Party or any Affiliate thereof of any
proceeding under any Debtor Relief Laws naming such Person as the debtor in
such proceeding, regardless of whether such interest and fees are allowed
claims in such proceeding.

“Organization Documents” means, (a) with
respect to any corporation, the certificate or articles of incorporation and
the bylaws (or equivalent or comparable constitutive documents with respect to
any non-U.S. jurisdiction); (b) with respect to any limited liability company,
the certificate or articles of formation or organization and operating
agreement; and (c) with respect to any partnership, joint venture, trust or
other form of business entity, the partnership, joint venture or other
applicable agreement of formation or organization and any agreement,
instrument, filing or notice with respect thereto filed in connection with its
formation or organization with the applicable Governmental Authority in the
jurisdiction of its formation or organization and, if applicable, any
certificate or articles of formation or organization of such entity.

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

“Outstanding Amount” means (i) with respect to
Committed Loans on any date, the aggregate outstanding principal amount thereof
after giving effect to any borrowings and prepayments or repayments of
Committed Loans occurring on such date; (ii) with respect to Term Loans on
any date, the aggregate outstanding principal amount thereof after giving
effect to any prepayments or repayments of Term Loans occurring on such date;
and (iii) with respect to any L/C Obligations on any date, the amount of
such L/C Obligations on such date after giving effect to any L/C Credit
Extension occurring on such date and any other changes in the aggregate amount
of the L/C Obligations as of such date, including as a result of any
reimbursements by the Borrower of Unreimbursed Amounts, as applicable in the
context used.

“Parent” has the meaning specified in the
introductory paragraph hereto.

“Parent/Borrower Pledge Agreement” has the
meaning specified in Section 4.01(a)(iii).

“Participant” has the meaning specified in Section 10.06(d).

“PBGC” means the Pension Benefit Guaranty
Corporation.

“Pension Plan” means any “employee pension
benefit plan” (as such term is defined in Section 3(2) of ERISA), other
than a Multiemployer Plan, that is subject to Title IV of ERISA and is
sponsored or maintained by the Parent, the Borrower or any ERISA Affiliate or
to which the Parent, the Borrower or any ERISA Affiliate contributes or has an
obligation to contribute, or 

 21
 

in the case of a multiple
employer or other plan described in Section 4064(a) of ERISA, has made contributions
at any time during the immediately preceding five plan years.

“Permitted Acquisitions” means Acquisitions by
the Parent, the Borrower and their Restricted Subsidiaries of Stations or any
other Business.

“Permitted Holders” means, collectively, Joseph
M. Field and David J. Field and their immediate families, including their
wives, their children or grandchildren, the spouses of their children and their
grandchildren, or trusts created for the benefit of any of, or the estates of,
the foregoing or entities controlled by Joseph M. Field or David J. Field.

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

“Plan” means any “employee benefit plan” (as
such term is defined in Section 3(3) of ERISA) established by the Parent
or the Borrower or, with respect to any such plan that is subject to
Section 412 of the Code or Title IV of ERISA, any ERISA Affiliate.

“Platform” has the meaning specified in Section
6.02.

“Pledge Agreements” means the Parent/Borrower
Pledge Agreement and the Subsidiary Pledge Agreement.

“Public Lender” has the meaning specified in Section
6.02.

“Register” has the meaning specified in Section 10.06(c).

“Reinvestment Period” has the meaning specified
in Section 2.04(b)(ii).

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

“Reportable Event” means any of the events set
forth in Section 4043(c) of ERISA, other than events for which the 30 day
notice period has been waived.

“Request for Credit Extension” means (a) with
respect to a Borrowing, conversion or continuation of Committed Loans, a
Committed Loan Notice; (b) with respect to a conversion or continuation of Term
Loans, a Term Loan Notice and (c) with respect to an L/C Credit Extension, a
Letter of Credit Application.

“Required Lenders” means, as of any date of
determination, Lenders having more than
50% of the sum of (i) the Aggregate Commitments and (ii) the
outstandings under the Term Loans, or, if the commitment of each Lender to make
Committed Loans and the obligation of the L/C Issuer to make L/C Credit
Extensions have been terminated pursuant to Section 8.02, Lenders
holding in the aggregate more than 50% of
the Total Outstandings (with the aggregate amount of each Lender’s risk
participation and funded participation in L/C Obligations being deemed “held”
by such Lender for purposes of this definition); provided that the
Commitment of, 

 22
 

and the portion of the
Total Outstandings held or deemed held by, any Defaulting Lender shall be
excluded for purposes of making a determination of Required Lenders.

“Responsible Officer” means the chief executive
officer, president, chief financial officer, executive vice president,
treasurer or assistant treasurer of a Loan Party.  Any document delivered hereunder that is
signed by a Responsible Officer of a Loan Party shall be conclusively presumed
to have been authorized by all necessary corporate, partnership and/or other
action on the part of such Loan Party and such Responsible Officer shall be
conclusively presumed to have acted on behalf of such Loan Party.  For the avoidance of doubt, any certificate
executed by any officer pursuant to or in connection with any Loan Document
shall be deemed executed by such officer in his or her capacity as an officer
of the applicable Loan Party and not in his or her individual capacity, and
such officer shall have no individual or personal liability with respect
thereto.

“Restricted Payment” means any dividend or
other distribution (whether in cash, securities or other property) with respect
to any capital stock or other Equity Interest of the Parent, the Borrower or
any Restricted Subsidiary, or any payment (whether in cash, securities or other
property), including any sinking fund or similar deposit, on account of the
purchase, redemption, retirement, acquisition, cancellation or termination of
any such capital stock or other Equity Interest or on account of any return of
capital to the Parent’s or the Borrower’s stockholders, partners or members (or
the equivalent Person thereof).

“Restricted Subsidiary” means (unless
designated an “Unrestricted Subsidiary” under the terms of this Agreement),
each Subsidiary of the Parent and the Borrower, provided  that in
each case Restricted Subsidiaries must be Guarantors and have all the Equity
Interests owned by the Parent, the Borrower and their direct and indirect Restricted
Subsidiaries in such Restricted Subsidiary pledged to secure the
Obligations.  To the extent that any
Unrestricted Subsidiary (i) becomes a Guarantor, (ii) has 100% of its
Equity Interests pledged to secure the Obligations, (iii) has no existing Indebtedness
or Liens at the time of designation to a Restricted Subsidiary that would not
have been permitted to be incurred under Sections 7.01 and 7.03
if such Unrestricted Subsidiary had been a Restricted Subsidiary at the time of
its incurrence (except any Indebtedness (and/or Liens securing Indebtedness)
that has been reduced in amount to fit into the exceptions in Section 7.01
and 7.03), (iv) is otherwise in compliance with the provisions
of this Agreement, and (v) such Guaranty of the Obligations and such Equity
Pledge are in each case pursuant to documentation substantially similar in
terms, conditions and form to the Guaranty and the Subsidiary Pledge Agreement
(or in such other form agreed to by the Administrative Agent and the Borrower),
then such Unrestricted Subsidiary shall thereafter be included in the
definition of Restricted Subsidiaries.

“SEC” means the Securities and Exchange
Commission, or any Governmental Authority succeeding to any of its principal
functions.

“Senior Subordinated Notes” means those certain
7-5/8% Senior Subordinated Notes due 2014 issued by the Borrower and Entercom
Capital, Inc., a Delaware Corporation, pursuant to the terms of the Indenture
and the other Senior Subordinated Notes Documents.

 23
 

“Senior Subordinated Notes Documents” means the
Indenture and each other agreement, guaranty, collateral agreement or other
document or instrument executed in connection with the Senior Subordinated
Notes.

“Shared Services Agreement” means a shared
services arrangement or other similar arrangement pursuant to which two Persons
owning separate radio broadcast stations agree to share the costs of certain
services and procurements which they individually require in connection with
the ownership and operation of one radio broadcast station, whether through the
form of joint or cooperative buying arrangements or the performance of certain
functions relating to the operation of one radio broadcast station by employees
of the owner and operator of the other radio broadcast station, including, but
not limited to, the co-location of the studio, non-managerial administrative
and/or master control and technical facilities of such radio broadcast station
and/or the sharing of maintenance, security and other services relating to such
facilities.

“Solvent” means, with respect to any Person, as
of any date of determination, that the fair value of the assets of such Person
(at fair valuation) is, on the date of determination, greater than the total
amount of liabilities (including contingent and unliquidated liabilities) of
such Person as of such date, that the present fair saleable value of the assets
of such Person will, as of such date, be greater than the amount that will be
required to pay the probable liability of such Person on its debts as such debts
become absolute and matured, and that, as of such date, such Person will be
able to pay all liabilities of such Person as such liabilities mature and such
Person does not have unreasonably small capital with which to carry on its
business.  In computing the amount of
contingent or unliquidated liabilities at any time, such liabilities will be
computed at the amount which, in light of all the facts and circumstances
existing at such time, represents the amount that can reasonably be expected to
become an actual or matured liability discounted to present value at rates
believed to be reasonable by such Person acting in good faith.

“SPC” has the meaning specified in Section 10.06(h).

“Start Date” has the meaning specified in Section 2.04(b)(ii).

“Station Contracts” has the meaning specified
in Section 5.18.

“Stations” means, as of any date, the radio
broadcasting stations owned by the Borrower and their Restricted Subsidiaries
as of such date, all auxiliary stations owned or operated by the Borrower and
their Restricted Subsidiaries in connection with the foregoing, all television
or other broadcasting stations owned by the Borrower and their Restricted
Subsidiaries, or any other communications station owned or operated at such
time by the Borrower or any of their Restricted Subsidiaries.

“Subsidiary” of a Person means a corporation,
partnership, joint venture, limited liability company or other business entity
of which a majority of the shares of securities or other interests having
ordinary voting power for the election of directors or other governing body
(other than securities or interests having such power only by reason of the
happening of a contingency) are at the time beneficially owned, or the
management of which is otherwise controlled, directly, or indirectly through
one or more intermediaries, or both, by such Person.  Unless otherwise 

 24
 

specified, all references
herein to a “Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary or
Subsidiaries of the Borrower and the Parent.

“Subsidiary Pledge Agreement” has the meaning
specified in Section 4.01(a)(iv).

“Swap Contract” means (a) any and all rate swap
transactions, basis swaps, credit derivative transactions, forward rate
transactions, commodity swaps, commodity options, forward commodity contracts,
equity or equity index swaps or options, bond or bond price or bond index swaps
or options or forward bond or forward bond price or forward bond index
transactions, interest rate options, forward foreign exchange transactions, cap
transactions, floor transactions, collar transactions, currency swap
transactions, cross-currency rate swap transactions, currency options, spot
contracts, or any other similar transactions or any combination of any of the
foregoing (including any options to enter into any of the foregoing), whether
or not any such transaction is governed by or subject to any master agreement,
and (b) any and all transactions of any kind, and the related
confirmations, which are subject to the terms and conditions of, or governed
by, any form of master agreement published by the International Swaps and
Derivatives Association, Inc. or any International Foreign Exchange Master
Agreement (any such master agreement, together with any related schedules, a “Master
Agreement”), including any such obligations or liabilities under any Master
Agreement.

“Swap Termination Value” means, in respect of
any one or more Swap Contracts, after taking into account the effect of any
legally enforceable netting agreement relating to such Swap Contracts, (a) for any
date on or after the date such Swap Contracts have been closed out and
termination value(s) determined in accordance therewith, such termination
value(s), and (b) for any date prior to the date referenced in clause (a), the
amount(s) determined as the mark-to-market value(s) for such Swap Contracts, as
determined based upon one or more mid-market or other readily available
quotations provided by any recognized dealer in such Swap Contracts (which may
include a Lender or any Affiliate of a Lender).

“Syndication Agent” means Chase, or any
successor syndication agent.

“Synthetic Lease Obligation” means the monetary
obligation of a Person under (a) a so-called synthetic, off-balance sheet or
tax retention lease, or (b) an agreement for the use or possession of property
creating obligations that do not appear on the balance sheet of such Person but
which, upon the insolvency or bankruptcy of such Person, would be characterized
as the indebtedness of such Person (without regard to accounting treatment);
provided however, that no programming agreement, time brokerage agreement,
Local Marketing Agreement or similar agreement shall constitute a Synthetic
Lease Obligation.

“Taxes” means all present or future taxes,
levies, imposts, duties, deductions, withholdings, assessments, fees or other
charges imposed by any Governmental Authority, including any interest,
additions to tax or penalties applicable thereto.

“Term A Loan” has the meaning specified in Section 2.01(b).

“Term Loan” means the Term A Loan and any
Incremental Term Loan, as applicable.

 25
 

“Term Loan Notice” means a notice of (a) a
conversion of Term Loans from one Type to the other, or (c) a continuation
of Eurodollar Rate Loans, pursuant to Section 2.02(a), which, if in
writing, shall be substantially in the form of Exhibit A, or any other
form approved by the Administrative Agent.

“Total Outstandings” means the aggregate
Outstanding Amount of all Loans and all L/C Obligations.

“Type” means, with respect to a Loan, its
character as a Base Rate Loan or a Eurodollar Rate Loan.

“Unfunded Pension Liability” means the excess
of a Pension Plan’s benefit liabilities under Section 4001(a)(16) of
ERISA, over the current value of that Pension Plan’s assets, determined as of
the most recently completed actuarial valuation in accordance with the
assumptions used for funding the Pension Plan pursuant to Section 412 of
the Code.

“United States” and “U.S.” mean the
United States of America.

“Unreimbursed Amount” has the meaning specified
in Section 2.03(c)(i).

“Unrestricted Subsidiary” means a direct or
indirect Subsidiary of the Parent or the Borrower, in which the Parent, the
Borrower and their Subsidiaries have invested in cash, assets or equity
investments as permitted by the terms of Section 7.17, and which the
Borrower has designated as an “Unrestricted Subsidiary” by delivering five days
prior written notice to the Administrative Agent (or such lesser notice as
agreed to by the Administrative Agent). 
Each Subsidiary of an Unrestricted Subsidiary shall also be an Unrestricted
Subsidiary.

1.02                           Other Interpretive Provisions.  With reference to this Agreement and each
other Loan Document, unless otherwise specified herein or in such other Loan
Document:

(a)                                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, (i)
any definition of or reference to any agreement, instrument or other document
(including any Organization Document) 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 or in any other Loan
Document), (ii) any reference herein to any Person shall be construed to
include such Person’s successors and assigns, (iii) the words “herein,” “hereof”
and “hereunder” and words of similar import when used in any Loan
Document, shall be construed to refer to such Loan Document in its entirety and
not to any particular provision thereof, (iv) all references in a Loan Document
to Articles, Sections, Exhibits and Schedules shall be construed to refer to
Articles and Sections of, and Exhibits and Schedules to, the Loan Document in
which such references appear, (v) any reference to any law shall include all
statutory and regulatory provisions consolidating, amending, replacing or
interpreting such law and any reference to any law or regulation shall, unless
otherwise 

 26
 

specified, refer to such law or regulation as
amended, modified or supplemented from time to time, and (vi) 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.  Derivatives of defined terms have
corresponding meanings.  Any reference to
the knowledge of a non-individual Person shall mean the actual knowledge of an
executive officer (or individual holding a similar position) of such
Person.  Any reference to “consolidated”
in connection with the Parent, the Borrower and their Subsidiaries shall mean
eliminating all intercompany accounts.

(b)                               In
the computation of periods of time from a specified date to a later specified
date, the word “from” means “from and including;” the words “to”
and “until” each mean “to but excluding;” and the word “through”
means “to and including.”

(c)                                Section headings
herein and in the other Loan Documents are included for convenience of
reference only and shall not affect the interpretation of this Agreement or any
other Loan Document.

1.03                           Accounting Terms.

(a)                                Generally.  All accounting terms not specifically or
completely defined herein shall be construed in conformity with, and all
financial data (including financial ratios and other financial calculations)
required to be submitted pursuant to this Agreement shall be prepared in
conformity with, GAAP applied on a consistent basis, as in effect from time to
time, except as otherwise specifically prescribed herein.

(b)                               Changes
in GAAP.  If at any time any change
in GAAP would affect the computation of any financial ratio or requirement set
forth in any Loan Document, and either the Borrower or the Required Lenders
shall so request, the Administrative Agent, the Lenders and the Borrower shall
negotiate in good faith to amend such ratio or requirement to preserve the
original intent thereof in light of such change in GAAP (subject to the approval
of the Borrower and the Required Lenders); provided  that, until
so amended, (i) such ratio or requirement shall continue to be computed in
accordance with GAAP prior to such change therein and (ii) the Borrower
shall provide to the Administrative Agent and the Lenders financial statements
and other documents required under this Agreement or as reasonably requested
hereunder setting forth a reconciliation between calculations of such ratio or
requirement made before and after giving effect to such change in GAAP.

1.04                           Rounding. 
Any financial ratios required to be maintained by the Borrower pursuant
to this Agreement shall be calculated by dividing the appropriate component by
the other component, carrying the result to one place more than the number of places
by which such ratio is expressed herein and rounding the result up or down to
the nearest number (with a rounding-up if there is no nearest number).

1.05                           Times of Day.  Unless otherwise specified, all references
herein to times of day shall be references to Eastern time.

1.06                           Letter of Credit Amounts.  Unless otherwise specified herein, the amount
of a Letter of Credit at any time shall be deemed to be the stated amount of
such Letter of Credit in 

 27
 

effect at such
time; provided, however, that with respect to any Letter of Credit that, by its
terms or the terms of any Issuer Document related thereto, provides for one or
more automatic increases in the stated amount thereof, the amount of such
Letter of Credit shall be deemed to be the maximum stated amount of such Letter
of Credit after giving effect to all such increases, whether or not such
maximum stated amount is in effect at such time.

ARTICLE
II.

THE COMMITMENTS AND CREDIT EXTENSIONS

2.01                           Loans.

(a)                                Committed Loans.  Subject to the terms and conditions set forth
herein, each Lender severally agrees to make loans (each such loan, a “Committed
Loan”) to the Borrower from time to time, on any Business Day during the
Availability Period, in an aggregate amount not to exceed at any time
outstanding the amount of such Lender’s Commitment; provided, however,
that after giving effect to any Committed Borrowing, (i) the Outstanding Amount
of Committed Loans shall not exceed the Aggregate Commitments, and (ii) the
aggregate Outstanding Amount of the Committed Loans of any Lender, plus
such Lender’s Applicable Percentage of the Outstanding Amount of all L/C
Obligations shall not exceed such Lender’s Commitment.  Within the limits of each Lender’s
Commitment, and subject to the other terms and conditions hereof, the Borrower
may borrow under this Section 2.01(a), prepay under Section 2.04,
and reborrow under this Section 2.01(a).  Committed Loans may be Base Rate Loans or
Eurodollar Rate Loans, as further provided herein.

(b)                               Term A Loans.  Subject to the terms and conditions set forth
herein, each Lender severally agrees to make a single loan to the Borrower on
the Closing Date in an amount not to exceed such Lender’s Applicable Percentage
of $400,000,000 (each such loan a “Term A Loan”).  The Term A Borrowing on the Closing Date
shall consist of Term A Loans made simultaneously by the Lenders in accordance
with their respective Applicable Percentage of $400,000,000.  Amounts borrowed under this Section
2.01(b) and repaid or prepaid may not be reborrowed.  Term A Loans may be Base Rate Loans or
Eurodollar Rate Loans, as further provided herein.

2.02                           Borrowings, Conversions and Continuations of Loans.

(a)                                Each
Committed Borrowing, the initial Term Loan Borrowing each conversion of Loans
from one Type to the other, and each continuation of Eurodollar Rate Loans
shall be made upon the Borrower’s irrevocable notice to the Administrative
Agent, which may be given by telephone. 
Each such notice must be received by the Administrative Agent not later
than 11:00 a.m. (i) three Business Days prior to the requested date of any
Borrowing of, conversion to or continuation of Eurodollar Rate Loans, and (ii)
on the requested date of any Borrowing of Base Rate Loans or conversion of
Eurodollar Rate Loans to Base Rate Loans; provided, however, that
if the Borrower wishes to request Eurodollar Rate Loans having an Interest
Period other than one, two, three or six months in duration as provided in the
definition of “Interest Period”, the applicable notice must be received by the
Administrative Agent not later than 11:00 a.m. four Business Days prior to the
requested date of such Borrowing, conversion or continuation, whereupon the
Administrative Agent shall give prompt notice to the Lenders of such request
and determine whether the requested Interest Period is available to all of
them.  Not later than 11:00 a.m., 

 28
 

three Business Days before the requested date
of such Borrowing, conversion or continuation, the Administrative Agent shall
notify the Borrower (which notice may be by telephone) whether or not the
requested Interest Period is available to all the Lenders.  Each telephonic notice by the Borrower
pursuant to this Section 2.02(a) must be confirmed promptly by
delivery to the Administrative Agent of a written Loan Notice, appropriately
completed and signed by a Responsible Officer of the Borrower.  Each Borrowing of, conversion to or
continuation of Eurodollar Rate Loans shall be in a principal amount of
$1,000,000 or a whole multiple of $500,000 in excess thereof.  Except as provided in Section 2.03(c),
each Borrowing of, or conversion to Base Rate Loans shall be in a principal
amount of $500,000 or a whole multiple of $100,000 in excess thereof.  Each Loan Notice (whether telephonic or
written) shall specify (i) whether the Borrower is requesting a Committed
Borrowing, a conversion of Committed Loans from one Type to the other, a
conversion of Term Loans from one Type to the other, or a continuation of
Eurodollar Rate Loans and whether such Eurodollar Rate Loans are Committed Loans
or Term Loans, (ii) the requested date of the Borrowing, conversion or
continuation, as the case may be (which shall be a Business Day),
(iii) the principal amount of Committed Loans to be borrowed or the
principal amount of the Loans to be converted or continued, (iv) the Type
of Committed Loans to be borrowed or the Type of Loans to which existing Loans
are to be converted, and (v) if applicable, the duration of the Interest Period
with respect thereto.  If the Borrower
fails to specify a Type of Loan in a Loan Notice, or if the Borrower fails to
give a timely notice requesting a conversion or continuation, then the
applicable Loans shall be made as, or converted to, Base Rate Loans.  Any such automatic conversion to Base Rate
Loans shall be effective as of the last day of the Interest Period then in
effect with respect to the applicable Eurodollar Rate Loans.  If the Borrower requests a Borrowing of,
conversion to, or continuation of Eurodollar Rate Loans in any such Loan
Notice, but fails to specify an Interest Period, it will be deemed to have
specified an Interest Period of one month.

(b)                               Following
receipt of a Loan Notice, the Administrative Agent shall promptly notify each
Lender of the amount of its Applicable Percentage of the applicable Loans, and
if no timely notice of a conversion or continuation is provided by the
Borrower, the Administrative Agent shall notify each Lender of the details of
any automatic conversion to Base Rate Loans described in the preceding
subsection.  In the case of a Committed
Borrowing and in the case of the initial funding of the Term A Loan on the
Closing Date, each Lender shall make the amount of its Committed Loan or Term A
Loan, as applicable, available to the Administrative Agent in immediately
available funds at the Administrative Agent’s Office not later than
1:00 p.m. on the Business Day specified in the applicable Loan
Notice.  Upon satisfaction of the
applicable conditions set forth in Section 4.02 (and, if such
Borrowing is the initial Credit Extension, Section 4.01), the
Administrative Agent shall make all funds so received available to the Borrower
by 2:00 p.m. in like funds as received by the Administrative Agent either by
(i) crediting the account of the Borrower on the books of the
Administrative Agent with the amount of such funds or (ii) wire transfer
of such funds, in each case in accordance with instructions provided to (and
reasonably acceptable to) the Administrative Agent by the Borrower; provided,
however, that if, on the date that a Committed Loan Notice with respect
to such Borrowing is given by the Borrower there are L/C Borrowings
outstanding, then the proceeds of such Committed Borrowing, first, shall
be applied to the payment in full of any such L/C Borrowings, and second,
shall be made available to the Borrower as provided above.

 29
 

(c)                                Except
as otherwise provided herein, a Eurodollar Rate Loan may be continued or
converted only on the last day of an Interest Period for such Eurodollar Rate
Loan.  During the existence of an Event
of Default, no Loans may be requested as, converted to or continued as
Eurodollar Rate Loans without the consent of the Required Lenders.

(d)                               The
Administrative Agent shall promptly notify the Borrower and the Lenders of the
interest rate applicable to any Interest Period for Eurodollar Rate Loans upon
determination of such interest rate.  At
any time that Base Rate Loans are outstanding, the Administrative Agent shall
notify the Borrower and the Lenders of any change in the Administrative Agent’s
prime rate used in determining the Base Rate promptly following the public
announcement of such change.

(e)                                After
giving effect to all Borrowings, all conversions of Loans from one Type to the
other, and all continuations of Loans as the same Type, there shall not be more
than 15 Interest Periods in effect with respect to all of the Loans.

2.03                           Letters of Credit.

(a)                                The
Letter of Credit Commitment.

(i)                                     Subject
to the terms and conditions set forth herein, (A) the L/C Issuer agrees, in
reliance upon the agreements of the Lenders set forth in this Section 2.03,
(1) from time to time on any Business Day during the period from the Closing
Date until the Letter of Credit Expiration Date, to issue Letters of Credit in
Dollars for the account of the Borrower or any other Restricted Subsidiaries,
and to amend or extend Letters of Credit in Dollars previously issued by it, in
accordance with subsection (b) below, and (2) to honor drawings under the
Letters of Credit; and (B) the Lenders severally agree to participate in
Letters of Credit issued for the account of the Borrower or any other
Restricted Subsidiaries and any drawings thereunder; provided that after
giving effect to any L/C Credit Extension with respect to any Letter of Credit,
(x) the Outstanding Amount under the Committed Loans shall not exceed the
Aggregate Commitments, (y) the aggregate Outstanding Amount of the Committed
Loans of any Lender, plus such Lender’s Applicable Percentage of the
Outstanding Amount of all L/C Obligations, shall not exceed such Lender’s
Commitment, and (z) the Outstanding Amount of the L/C Obligations shall not
exceed the Letter of Credit Sublimit. 
Each request by the Borrower for the issuance or amendment of a Letter
of Credit shall be deemed to be a representation by the Borrower that the L/C
Credit Extension so requested complies with the conditions set forth in the
proviso to the preceding sentence. 
Within the foregoing limits, and subject to the terms and conditions
hereof, the Borrower’s ability to obtain Letters of Credit shall be fully
revolving, and accordingly the Borrower may, during the foregoing period,
obtain Letters of Credit to replace Letters of Credit that have expired or that
have been drawn upon and reimbursed.  All
Existing Letters of Credit shall be deemed to have been issued pursuant hereto,
and from and after the Closing Date shall be subject to and governed by the
terms and conditions hereof.

 30
 

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

(A)                              subject
to Section 2.03(b)(iii), the expiry date of such of such requested
Letter of Credit would occur more than twelve months after the date of issuance
or last extension, unless the Required Lenders have approved such expiry date;
or

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

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

(A)                              any
order, judgment or decree of any Governmental Authority or arbitrator shall by
its terms purport to enjoin or restrain the L/C Issuer from issuing such Letter
of Credit, or any Law applicable to the L/C Issuer or any request or directive
(whether or not having the force of law) from any Governmental Authority with
jurisdiction over the L/C Issuer shall prohibit, or request that the L/C Issuer
refrain from, the issuance of letters of credit generally or such Letter of
Credit in particular or shall impose upon the L/C Issuer with respect to such
Letter of Credit any restriction, reserve or capital requirement (for which the
L/C Issuer is not otherwise compensated hereunder) first imposed after the
Closing Date, or shall impose upon the L/C Issuer any unreimbursed loss, cost
or expense which was not applicable on the Closing Date and, in each case,
which the L/C Issuer in good faith deems material to it;

(B)                                except
as otherwise agreed by the Administrative Agent and the L/C Issuer, such Letter
of Credit is in an initial stated amount less than $10,000; or

(C)                                the
issuance of any such Letter of Credit would violate one or more policies of the
L/C Issuer, as applicable to all Letters of Credit, generally.

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

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

(vi)                              The
L/C Issuer shall act on behalf of the Lenders with respect to any Letters of
Credit issued by it and the documents associated therewith, and the

 31

L/C Issuer shall have all of the benefits and
immunities (A) provided to the Administrative Agent in Article IX
with respect to any acts taken or omissions suffered by the L/C Issuer in
connection with Letters of Credit issued by it or proposed to be issued by it
and Issuer Documents pertaining to such Letters of Credit as fully as if the
term “Administrative Agent” as used in Article IX included the L/C
Issuer with respect to such acts or omissions, and (B) as additionally
provided herein with respect to the L/C Issuer.

(b)                               Procedures
for Issuance and Amendment of Letters of Credit;  Auto-Extension Letters of Credit.

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

(ii)                                  Promptly
after receipt of any Letter of Credit Application, the L/C Issuer will confirm
with the Administrative Agent (by telephone or in writing) that the
Administrative Agent has received a copy of such Letter of Credit Application
from the Borrower and, if not, the L/C Issuer will provide the Administrative
Agent with a copy thereof.  Unless the
L/C Issuer has received written notice from any Lender (provided that any
Lender giving such written notice that is the sole Lender giving such written
notice shall be a Defaulting Lender hereunder), the Administrative Agent or any
Loan Party, at least one Business Day prior to the 

 32
 

requested date of issuance or amendment of
the applicable Letter of Credit, that one or more applicable conditions
contained in Article IV shall not then be satisfied, then, subject to
the terms and conditions hereof, the L/C Issuer shall, on the requested date,
issue a Letter of Credit for the account of the Borrower or such Restricted
Subsidiary, or enter into the applicable amendment, as the case may be, in each
case in accordance with the L/C Issuer’s usual and customary business
practices.  Immediately upon the issuance
of each Letter of Credit, each Lender shall be deemed to, and hereby
irrevocably and unconditionally agrees to, purchase from the L/C Issuer a risk
participation in such Letter of Credit in an amount equal to the product of
such Lender’s Applicable Percentage times the amount of such Letter of
Credit.

(iii)                               If
the Borrower so requests in any applicable Letter of Credit Application, the
L/C Issuer may, in its sole and absolute discretion, agree to issue a Letter of
Credit that has automatic extension provisions (each, an “Auto-Extension
Letter of Credit”); provided that any such Auto-Extension Letter of
Credit must permit the L/C Issuer to prevent any such extension at least once
in each twelve-month period (commencing with the date of issuance of such
Letter of Credit) by giving prior notice to the beneficiary thereof not later
than a day (the “Non-Extension Notice Date”) in each such twelve-month
period to be agreed upon at the time such Letter of Credit is issued.  Unless otherwise directed by the L/C Issuer,
the Borrower shall not be required to make a specific request to the L/C Issuer
for any such extension.  Once an
Auto-Extension Letter of Credit has been issued, the Lenders shall be deemed to
have authorized (but may not require) the L/C Issuer to permit the extension of
such Letter of Credit at any time to an expiry date not later than the Letter
of Credit Expiration Date; provided, however, that the L/C Issuer
shall not permit any such extension if (A) the L/C Issuer has determined
that it would not be permitted, at such time to issue such Letter of Credit in
its revised form (as extended) under the terms hereof (by reason of the
provisions of clause (ii) of Section 2.03(a) or otherwise), or
(B) it has received notice (which may be by telephone or in writing) on or
before the day that is five Business Days before the Non-Extension Notice Date
(1) from the Administrative Agent that the Required Lenders have elected not to
permit such extension or (2) from the Administrative Agent, any Lender
(provided that any Lender giving such written notice that is the sole Lender
giving such written notice shall be a Defaulting Lender hereunder) or the
Borrower that one or more of the applicable conditions specified in Section
4.02 is not then satisfied, and in each such case directing the L/C Issuer
not to permit such extension.

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

 33
 

(c)                                Drawings
and Reimbursements; Funding of Participations.

(i)                                     Upon
receipt from the beneficiary of any Letter of Credit of any notice of a drawing
under such Letter of Credit, the L/C Issuer shall notify the Borrower and the
Administrative Agent thereof.  Not later
than 11:00 a.m. on the date of any payment by the L/C Issuer under a Letter of
Credit (each such date, an “Honor Date”), the Borrower shall reimburse
the L/C Issuer through the Administrative Agent in an amount equal to the
amount of such drawing.  If the Borrower
fails to so reimburse the L/C Issuer by such time, the Administrative Agent
shall promptly notify each Lender of the Honor Date, the amount of the
unreimbursed drawing (the “Unreimbursed Amount”), and the amount of such
Lender’s Applicable Percentage thereof. 
In such event, the Borrower shall be deemed to have requested a
Committed Borrowing of Base Rate Loans to be disbursed on the Honor Date in an
amount equal to the Unreimbursed Amount, without regard to the minimum and
multiples specified in Section 2.02 for the principal amount of
Base Rate Loans, but subject to the amount of the unutilized portion of the
Aggregate Commitments and the conditions set forth in Section 4.02
(other than the delivery of a Committed Loan Notice).  Any notice given by the L/C Issuer or the
Administrative Agent pursuant to this Section 2.03(c)(i) may be
given by telephone if immediately confirmed in writing; provided that
the lack of such an immediate confirmation shall not affect the conclusiveness
or binding effect of such notice.

(ii)                                  Each
Lender shall upon any notice pursuant to Section 2.03(c)(i) make
funds available to the Administrative Agent for the account of the L/C Issuer
at the Administrative Agent’s Office in an amount equal to its Applicable
Percentage of the Unreimbursed Amount not later than 1:00 p.m. on the Business
Day specified in such notice by the Administrative Agent, whereupon, subject to
the provisions of Section 2.03(c)(iii), each Lender that so makes
funds available shall be deemed to have made a Base Rate Committed Loan to the
Borrower in such amount.  The
Administrative Agent shall remit the funds so received to the L/C Issuer.

(iii)                               With
respect to any Unreimbursed Amount that is not fully refinanced by a Committed
Borrowing of Base Rate Loans because the conditions set forth in Section 4.02
cannot be satisfied or for any other reason, the Borrower shall be deemed to
have incurred from the L/C Issuer an L/C Borrowing in the amount of the
Unreimbursed Amount that is not so refinanced, which L/C Borrowing shall be due
and payable on demand (together with interest) and shall bear interest at the Default
Rate.  In such event, each Lender’s
payment to the Administrative Agent for the account of the L/C Issuer pursuant
to Section 2.03(c)(ii) shall be deemed payment in respect of its
participation in such L/C Borrowing and shall constitute an L/C Advance from
such Lender in satisfaction of its participation obligation under this Section 2.03.

(iv)                              Until
each Lender funds its Committed Loan or L/C Advance pursuant to this Section 2.03(c)
to reimburse the L/C Issuer for any amount drawn under any Letter of Credit,
interest in respect of such Lender’s Applicable Percentage of such amount shall
be solely for the account of the L/C Issuer.

 34
 

(v)                                 Each
Lender’s obligation to make Committed Loans or L/C Advances to reimburse the
L/C Issuer for amounts drawn under Letters of Credit, as contemplated by this Section 2.03(c),
shall be absolute and unconditional and shall not be affected by any
circumstance, including (A) any setoff, counterclaim, recoupment, defense or
other right which such Lender may have against the L/C Issuer, the Borrower or
any other Person for any reason whatsoever; (B) the occurrence or continuance
of a Default, or (C) any other occurrence, event or condition, whether or not
similar to any of the foregoing; provided, however, that each
Lender’s obligation to make Committed Loans pursuant to this Section 2.03(c)
is subject to the conditions set forth in Section 4.02 (other than
delivery by the Borrower of a Committed Loan Notice).  No such making of an L/C Advance shall
relieve or otherwise impair the obligation of the Borrower to reimburse the L/C
Issuer for the amount of any payment made by the L/C Issuer under any Letter of
Credit, together with interest as provided herein.

(vi)                              If
any Lender fails to make available to the Administrative Agent for the account
of the L/C Issuer any amount required to be paid by such Lender pursuant to the
foregoing provisions of this Section 2.03(c) by the time specified
in Section 2.03(c)(ii), the L/C Issuer shall be entitled to recover
from such Lender (acting through the Administrative Agent), on demand, such
amount with interest thereon for the period from the date such payment is
required to the date on which such payment is immediately available to the L/C
Issuer at a rate per annum equal to the greater of the Federal Funds Rate and a
rate determined by the L/C Issuer in accordance with banking industry rules on
interbank compensation.  A certificate of
the L/C Issuer submitted to any Lender (through the Administrative Agent) with
respect to any amounts owing under this clause (vi) shall be presumptively
correct absent manifest error.

(d)                               Repayment
of Participations.

(i)                                     At
any time after the L/C Issuer has made a payment under any Letter of Credit and
has received from any Lender such Lender’s L/C Advance in respect of such
payment in accordance with Section 2.03(c), if the Administrative
Agent receives for the account of the L/C Issuer any payment in respect of the
related Unreimbursed Amount or interest thereon (whether directly from the
Borrower or otherwise, including proceeds of Cash Collateral applied thereto by
the Administrative Agent), the Administrative Agent will distribute to such
Lender its Applicable Percentage thereof (appropriately adjusted, in the case
of interest payments, to reflect the period of time during which such Lender’s
L/C Advance was outstanding) in the same funds as those received by the
Administrative Agent.

(ii)                                  If
any payment received by the Administrative Agent for the account of the L/C
Issuer pursuant to Section 2.03(c)(i) is required to be returned
under any of the circumstances described in Section 10.05
(including pursuant to any settlement entered into by the L/C Issuer in its
discretion), each Lender shall pay to the Administrative Agent for the account
of the L/C Issuer its Applicable Percentage thereof on demand of the
Administrative Agent, plus interest thereon 

 35
 

from the date of such demand to the date such
amount is returned by such Lender, at a rate per annum equal to the Federal
Funds Rate from time to time in effect.  The obligations of the Lenders under this
clause shall survive the payment in full of the Obligations and the termination
of this Agreement.

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

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

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

(iii)                               any
draft, demand, certificate or other document presented under such Letter of
Credit proving to be forged, fraudulent, invalid or insufficient in any respect
or any statement therein being untrue or inaccurate in any respect; or any loss
or delay in the transmission or otherwise of any document required in order to
make a drawing under such Letter of Credit, IN
ALL CASES, WHETHER OR NOT CAUSED BY OR ARISING, IN WHOLE OR IN PART, OUT OF THE
COMPARATIVE, CONTRIBUTORY OR SOLE NEGLIGENCE OF THE L/C ISSUER,
other than in each case, arising from or as a result of the willful misconduct,
bad faith or gross negligence of the L/C Issuer;

(iv)                              any
payment by the L/C Issuer under such Letter of Credit against presentation of a
draft or certificate that does not strictly comply with the terms of such
Letter of Credit; or any payment made by the L/C Issuer under such Letter of
Credit to any Person purporting to be a trustee in bankruptcy,
debtor-in-possession, assignee for the benefit of creditors, liquidator,
receiver or other representative of or successor to any beneficiary or any
transferee of such Letter of Credit, including any arising in connection with
any proceeding under any Debtor Relief Law, IN
ALL CASES, WHETHER OR NOT CAUSED BY OR ARISING, IN WHOLE OR IN PART, OUT OF THE
COMPARATIVE, CONTRIBUTORY OR SOLE NEGLIGENCE OF THE L/C ISSUER,
other than, in each case, arising from or as a result of the willful
misconduct, bad faith or gross negligence of the L/C Issuer; or

(v)                                 any
other circumstance or happening whatsoever, whether or not similar to any of
the foregoing, including any other circumstance that might 

 36
 

otherwise constitute a defense available to,
or a discharge of, the Borrower or any Subsidiary, IN ALL CASES, WHETHER OR NOT CAUSED BY OR ARISING, IN WHOLE OR IN PART,
OUT OF THE COMPARATIVE, CONTRIBUTORY OR SOLE NEGLIGENCE OF THE L/C ISSUER,
other than, in each case, arising from or as a result of the willful
misconduct, bad faith or gross negligence of the L/C Issuer.

The Borrower shall promptly examine a copy of each
Letter of Credit and each amendment thereto that is delivered to it and, in the
event of any claim of noncompliance with the Borrower’s instructions or other irregularity,
the Borrower will immediately notify the L/C Issuer.

(f)                                  Role
of L/C Issuer.  Each Lender and the Borrower agree
that, in paying any drawing under a Letter of Credit, the L/C Issuer shall not
have any responsibility to obtain any document (other than any sight draft,
certificates and documents expressly required by the Letter of Credit) or to
ascertain or inquire as to the validity or accuracy of any such document or the
authority of the Person executing or delivering any such document.  None of the L/C Issuer, the Administrative
Agent, any of their respective Related Parties nor any correspondent,
participant or assignee of the L/C Issuer shall be liable to any Lender for (i)
any action taken or omitted in connection herewith at the request or with the
approval of the Lenders or the Required Lenders, as applicable; (ii) any
action taken or omitted in the absence of gross negligence, bad faith or
willful misconduct; or (iii) the due execution, effectiveness, validity or
enforceability of any document or instrument related to any Letter of Credit or
Issuer Document, AND IN ALL CASES, WHETHER OR
NOT CAUSED BY OR ARISING, IN WHOLE OR IN PART, OUT OF THE COMPARATIVE,
CONTRIBUTORY OR SOLE NEGLIGENCE OF SUCH PERSON other than, in each
case, arising from or as a result of willful misconduct, bad faith or gross
negligence of the L/C Issuer.  The
Borrower hereby assumes all risks of the acts or omissions of any beneficiary
or transferee with respect to its use of any Letter of Credit; provided,
however, that this assumption is not intended to, and shall not,
preclude the Borrower’s pursuing such rights and remedies as it may have
against the beneficiary or transferee at law or under any other agreement.  None of the L/C Issuer, the Administrative
Agent, any of their respective Related Parties nor any correspondent,
participant or assignee of the L/C Issuer, shall be liable or responsible for
any of the matters described in clauses (i) through (v) of Section 2.03(e)
, IN ALL CASES, WHETHER OR NOT CAUSED BY OR ARISING,
IN WHOLE OR IN PART, OUT OF THE COMPARATIVE, CONTRIBUTORY OR SOLE NEGLIGENCE OF
ANY SUCH PERSON; provided, however, that anything in
such clauses to the contrary notwithstanding, the Borrower may have a claim
against the L/C Issuer, and the L/C Issuer may be liable to the Borrower, to
the extent, but only to the extent, of any direct, as opposed to consequential
or exemplary, damages suffered by the Borrower which were determined by a
final, nonappealable judgment by a court of competent jurisdiction to be caused
by the L/C Issuer’s willful misconduct, bad faith or gross negligence or the
willful misconduct, bad faith or gross negligence of such L/C Issuer’s Related
Parties, correspondents, participants or assignees or the L/C Issuer’s willful
failure to pay under any Letter of Credit after the presentation to it by the
beneficiary of a sight draft and certificate(s) strictly complying with the
terms and conditions of a Letter of Credit.   In furtherance and not in limitation of the
foregoing, the L/C Issuer may accept documents that appear on their face to be
in order, without responsibility for further investigation, regardless of any
notice or information to the contrary, 

 37
 

and the L/C Issuer shall not be responsible
for the validity or sufficiency of any instrument transferring or assigning or
purporting to transfer or assign a Letter of Credit or the rights or benefits
thereunder or proceeds thereof, in whole or in part, which may prove to be
invalid or ineffective for any reason.

(g)                               Cash
Collateral.  (i) if the L/C Issuer
has honored any full or partial drawing request under any Letter of Credit and
such drawing has resulted in an L/C Borrowing, or (ii) if, as of the Letter of
Credit Expiration Date, any L/C Obligation for any reason remains outstanding,
the Borrower may (at its election), in each case, promptly Cash Collateralize
the then Outstanding Amount of such L/C Borrowing or such L/C Obligation, as
applicable , and if the Borrower fully cash collateralizes such L/C Borrowing
or L/C Obligation, then notwithstanding anything herein to the contrary such
L/C Borrowing and the related failure to otherwise repay the relevant drawing,
or the fact that such L/C Obligation remains outstanding at such time, as
applicable, shall not solely in and of itself constitute a Default
hereunder.  Sections 2.04 and 8.02(c)
set forth certain additional situations in which the Borrower may elect (or, in
the case of Section 8.02(c), be required) to deliver Cash Collateral
hereunder.  For purposes of this Section
2.03, Section 2.04 and Section 8.02(c),  “Cash Collateralize” means to pledge and
deposit with or deliver to the Administrative Agent, for the benefit of the L/C
Issuer and the Lenders, as collateral for the L/C Obligations, cash or deposit
account balances pursuant to documentation in form and substance reasonably
satisfactory to the Administrative Agent and the L/C Issuer (which documents
are hereby consented to by the Lenders). 
Derivatives of such term have corresponding meanings.  The Borrower hereby grants to the
Administrative Agent, for the benefit of the L/C Issuer and the Lenders, a
security interest in all such cash, deposit accounts and all balances therein
and all proceeds of the foregoing.  Cash
Collateral shall be maintained in blocked, interest bearing deposit accounts
with the Administrative Agent.

(h)                               Applicability
of ISP.  Unless otherwise expressly
agreed by the L/C Issuer and the Borrower when a Letter of Credit is issued
(including any such agreement applicable to an Existing Letter of Credit), the
rules of the ISP shall apply to each standby Letter of Credit.

(i)                                   Letter
of Credit Fees.  The Borrower shall
pay to the Administrative Agent for the account of each Lender in accordance
with its Applicable Percentage a Letter of Credit fee (the “Letter of Credit
Fee”) for each standby Letter of Credit equal to the Applicable Rate times
the daily amount available to be drawn under such Letter of Credit.  For purposes of computing the daily amount
available to be drawn under any Letter of Credit, the amount of such Letter of
Credit shall be determined in accordance with Section 1.06.  Letter of Credit Fees shall be
(i) computed on a quarterly basis in arrears and (ii) due and payable on
the first Business Day after the end of each March, June, September and
December, commencing with the first such date to occur after the issuance of
such Letter of Credit, on the Letter of Credit Expiration Date and thereafter
within five Business Days of demand therefor. 
If there is any change in the Applicable Rate during any quarter, the
daily amount available to be drawn under each standby Letter of Credit shall be
computed and multiplied by the Applicable Rate separately for each period
during such quarter that such Applicable Rate was in effect.  Notwithstanding anything to the contrary
contained herein, upon the request of the Required Lenders, while any Event of
Default exists, all Letter of Credit Fees shall accrue at the Default Rate.

 38
 

(j)                                   Fronting
Fee and Documentary and Processing Charges Payable to L/C Issuer.  The Borrower shall pay directly to the L/C
Issuer for its own account a fronting fee with respect to each standby Letter
of Credit, at the rate per annum specified in the Fee Letters, computed on the
daily amount available to be drawn under such Letter of Credit on a quarterly
basis in arrears, and due and payable on the first Business Day after the end
of each March, June, September and December, commencing with the first such
date to occur after the issuance of such Letter of Credit, on the Letter of
Credit Expiration Date and thereafter within five Business Days of demand
therefor.  For purposes of computing the
daily amount available to be drawn under any Letter of Credit, the amount of
such Letter of Credit shall be determined in accordance with Section 1.06.  In addition, the Borrower shall pay directly
to the L/C Issuer for its own account such customary issuance, presentation,
amendment and other processing fees, and other standard costs and charges, of
the L/C Issuer relating to letters of credit as from time to time in
effect.  Such customary fees and standard
costs and charges are due and payable within ten Business Days of receipt of a
reasonably detailed written invoice therefor and are nonrefundable.

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

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

2.04                           Prepayments.

(a)                                Voluntary
Prepayments.  The Borrower may, upon
notice to the Administrative Agent, at any time or from time to time
voluntarily prepay Loans in whole or in part without premium or penalty; provided
that (i) such notice must be received by the Administrative Agent not later
than 11:00 a.m. (A) three Business Days prior to any date of prepayment of
Eurodollar Rate Loans and (B) on the date of prepayment of Base Rate Loans;
(ii) any prepayment of Eurodollar Rate Loans shall be in a principal amount of
$1,000,000 or a whole multiple of $500,000 in excess thereof; and (iii) any
prepayment of Base Rate Loans shall be in a principal amount of $500,000 or a
whole multiple of $100,000 in excess thereof or, in each case, if less, the
entire principal amount thereof then outstanding.  Each such notice shall specify the date and
amount of such prepayment and the Type(s) of Loans to be prepaid.  The Administrative Agent will promptly notify
each Lender of its receipt of each such notice, and of the amount of such
Lender’s Applicable Percentage of such prepayment.  If such notice is given by the Borrower, the
Borrower shall make such prepayment and the payment amount specified in such
notice shall be due and payable on the date specified therein, or the Borrower shall
compensate the Lenders to the extent required by the terms of Section 3.05.  Any prepayment of a Eurodollar Rate Loan
shall be accompanied by all accrued interest on the amount prepaid, together
with any additional amounts required pursuant to Section 3.05.  Each such optional prepayment shall be
applied as 

 39
 

among the Loans (and to the installments
thereof, if any) at the direction of the Borrower, in accordance with the
respective Applicable Percentages of the Lenders.

(b)                               Mandatory
Prepayments.

(i)                                     If
for any reason the Outstanding Amount of Committed Loans at any time exceeds
the Aggregate Commitments then in effect, the Borrower shall immediately prepay
Loans and/or Cash Collateralize the L/C Obligations in an aggregate amount
equal to such excess; provided, however, that the Borrower shall
not be required to Cash Collateralize the L/C Obligations pursuant to this Section 2.04(b)
unless after the prepayment in full of the Committed Loans the Outstanding
Amount under the Committed Loan exceed the Aggregate Commitments then in
effect.

(ii)                                  If,
the Parent, the Borrower or any Restricted Subsidiary of the Parent or the
Borrower makes any Disposition of assets (other than (i) a Disposition
permitted by subsections (a) through (f) of Section 7.04,
(ii) Dispositions resulting in gross proceeds of $25,000,000 or less, and
(iii) Dispositions by Unrestricted Subsidiaries), then the Borrower shall
make a mandatory prepayment of the Loans in the amount of the Net Cash Proceeds
of such Disposition if the Consolidated Leverage Ratio is greater than 5.50 to
1.00 at the end of the Reinvestment Period (as defined below); provided  that,
notwithstanding the foregoing, this requirement for mandatory prepayment shall
be reduced to the extent the Borrower, any Guarantor or such Restricted
Subsidiary reinvests such Net Cash Proceeds by making a Permitted Acquisition
during the first 12 months after the date of consummation of such Disposition
(the “Start Date”) (such 12 month period after the Start Date herein referred
to as the “Reinvestment Period”), so long as no payment Default under Section 8.01(a)
or Event of Default exists as of the (A) Start Date, (B) receipt of the Net
Cash Proceeds by the Borrower (but not including Net Cash Proceeds received as
a result of post-closing adjustments, earn-outs and other customary
post-closing arrangements) or (c) at the time of reinvestment.  If any such payment Default under Section 8.01(a)
or Event of Default occurs and is continuing, or if all of such Net Cash
Proceeds are not so reinvested during the Reinvestment Period, then the
Borrower shall make a mandatory prepayment of the Loans promptly following the
occurrence of such payment Default under Section 8.01(a) or Event
of Default or the end of the Reinvestment Period, whichever is earlier, in an
amount equal to the Net Cash Proceeds of such Disposition less any amounts
reinvested during the Reinvestment Period in accordance with the terms of this
provision and the other terms of this Agreement.  Together with any prepayment required by this
Section 2.04(b)(ii), the Borrower shall deliver to the
Administrative Agent a certificate of the Borrower setting forth the
calculation of the Net Cash Proceeds of such Disposition.  Each such mandatory prepayment shall be
applied as among the Loans (and to the installments thereof, if any) at the
direction of the Borrower, in accordance with the respective Applicable
Percentages of the Lenders, provided that, (x) the Borrower shall prepay the
Term Loans with the remainder of any partial application of any such mandatory 

 40
 

prepayment that results in payment in full of
the Committed Loans.  Nothing in this Section 2.04(b)(ii)
shall be deemed to permit any Disposition not otherwise permitted under this
Agreement.

2.05                           Termination or Reduction of Commitments.  The Borrower may, upon notice to the
Administrative Agent, terminate the Aggregate Commitments, or from time to time
permanently reduce the Aggregate Commitments; provided that (i) any such
notice shall be received by the Administrative Agent not later than 11:00 a.m.
three Business Days prior to the date of termination or reduction, (ii) any
such partial reduction shall be in an aggregate amount of $10,000,000 or any
whole multiple of $1,000,000 in excess thereof, (iii) the Borrower shall not
terminate or reduce the Aggregate Commitments if, after giving effect thereto
and to any concurrent prepayments hereunder, the Outstanding Amount under the
Committed Loans would exceed the Aggregate Commitments, and (iv) if, after
giving effect to any reduction of the Aggregate Commitments, the Letter of
Credit Sublimit exceeds the amount of the Aggregate Commitments, such Letter of
Credit Sublimit shall be automatically reduced by the amount of such
excess.  The Administrative Agent will
promptly notify the Lenders of any such notice of termination or reduction of
the Aggregate Commitments.  Any reduction
of the Aggregate Commitments shall be applied to the Commitment of each Lender
according to its Applicable Percentage. 
All fees accrued until the effective date of any termination of the
Aggregate Commitments shall be paid on the effective date of such termination.

2.06                           Repayment of Obligations.  The Borrower shall:

(a)                                Repayment
of Loans.  Repay to the Lenders on the Maturity Date the
aggregate principal amount of the Loans;

(b)                               Installment
Payments of the Term A Loan.  The
Borrower shall repay to the Lenders the aggregate principal amount of all Term
A Loans outstanding on the following dates in the respective amounts set forth
opposite such dates (which amounts shall be reduced as a result of the
application of prepayments in accordance with Section 2.04):

	
  Date

  The Last Business Day of the Following Months:

  	
   

  	
  Amount

  	
   

  
	
  September 2007,
  December 2007, March 2008 and June 2008

  	
   

  	
  $

  	
  0.00

  	
   

  
	
  September 2008,
  December 2008, March 2009 and June 2009

  	
   

  	
  $

  	
  0.00

  	
   

  
	
  September 2009,
  December 2009, March 2010 and June 2010

  	
   

  	
  $

  	
  15,000,000

  	
   

  
	
  September 2010,
  December 2010, March 2011 and June 2011

  	
   

  	
  $

  	
  25,000,000

  	
   

  
	
  September 2011,
  December 2011, March 2012 and June 2012

  	
   

  	
  $

  	
  60,000,000

  	
   

  

 

provided, however, that
the final principal repayment installment of the Term A Loans shall be repaid
on the Maturity Date for the Term A Loans and in any event shall be in an
amount equal to the aggregate principal amount of all Term A Loans outstanding
on such date.

 41
 

(c)                                Repayment
of Obligations.  Repay to the Lenders on the Maturity Date all
other Obligations outstanding on the Maturity Date, except to the extent any
Incremental Facility has a later maturity date.

(d)                               Repayment
of Incremental Facility and Obligations.  Repay to the Lenders any Incremental Term
Loan or Incremental Revolving Loan on the maturity date applicable thereto, and
repay to the Lenders all remaining outstanding Obligations on the latest
maturity date of any Incremental Facility.

(e)                                Repayment
of L/C Borrowing.  Repay to the Lenders within five days after
demand therefore the full amount of each L/C Borrowing, unless such L/C
Borrowing has been cash collateralized in accordance with the terms of Section
2.03(g).

2.07                           Interest.

(a)                                Subject
to the provisions of subsection (b) below, (i) each Eurodollar Rate Loan
shall bear interest on the outstanding principal amount thereof for each
Interest Period at a rate per annum equal to the Eurodollar Rate for such
Interest Period plus the Applicable Rate and (ii) each Base Rate Loan
shall bear interest on the outstanding principal amount thereof from the
applicable borrowing date at a rate per annum equal to the Base Rate plus
the Applicable Rate.

(b)

(i)                                     If
any amount of principal of any Loan is not paid when due (after the expiration
of any applicable grace periods), whether at stated maturity, by acceleration
or otherwise, such amount shall thereafter bear interest at a fluctuating
interest rate per annum at all times equal to the Default Rate to the fullest
extent permitted by applicable Laws.

(ii)                                  If
any amount (other than principal of any Loan) payable by the Borrower under any
Loan Document is not paid when due (after the expiration of any applicable
grace periods), whether at stated maturity, by acceleration or otherwise, then
upon the request of the Required Lenders, such amount shall thereafter bear
interest at a fluctuating interest rate per annum at all times equal to the
Default Rate to the fullest extent permitted by applicable Laws.

(iii)                               Upon
the request of the Required Lenders, while any Event of Default exists, the
Borrower shall pay interest on the principal amount of all outstanding
Obligations hereunder at a fluctuating interest rate per annum at all times
equal to the Default Rate to the fullest extent permitted by applicable Laws.

(iv)                              Accrued
and unpaid interest on past due amounts (including interest on past due
interest) shall be due and payable upon demand.

(c)                                Interest
on each Loan shall be due and payable in arrears on each Interest Payment Date
applicable thereto and at such other times as may be specified herein.  Interest hereunder shall be due and payable
in accordance with the terms hereof before and after 

 42
 

judgment, and before and after the
commencement of any proceeding under any Debtor Relief Law.

2.08                           Fees. 
In addition to certain fees described in subsections (i) and (j) of Section 2.03:

(a)                                Commitment
Fee.  The Borrower shall pay to the
Administrative Agent for the account of each Lender that is not a Defaulting
Lender in accordance with its Applicable Percentage, a commitment fee equal to
the Applicable Rate for the Commitment Fee times the actual daily amount
(the “Commitment Amount”) by which the Aggregate Commitments exceed the sum of
(i) the Outstanding Amount of Committed Loans and (ii) the Outstanding Amount
of L/C Obligations.  The commitment fee
shall accrue at all times during the Availability Period, including at any time
during which one or more of the conditions in Article IV is not met, and
shall be due and payable quarterly in arrears on the last Business Day of each
March, June, September and December, commencing with the first such date to
occur after the Closing Date, and on the Maturity Date.  The commitment fee shall be calculated
quarterly in arrears, and if there is any change in the Commitment Amount or
the Applicable Rate during any quarter, the actual daily amount shall be
computed and multiplied by the Applicable Rate separately for each period
during such quarter that such Applicable Rate was in effect.

(b)                               Other
Fees.

(i)                                     The
Borrower shall pay to the Arrangers and the Agents for their own respective
accounts, fees in the amounts and at the times specified in the Fee
Letters.  Such fees shall be fully earned
when paid and shall not be refundable for any reason whatsoever.

(ii)                                  The
Borrower shall pay to the Lenders such fees as shall have been separately
agreed upon in writing in the amounts and at the times so specified.  Such fees shall be fully earned when paid and
shall not be refundable for any reason whatsoever.

2.09                           Computation of Interest and Fees.  All computations of interest for
Base Rate Loans when the Base Rate is determined by the Administrative Agent’s “prime
rate” shall be made on the basis of a year of 365 or 366 days, as the case may
be, and actual days elapsed.  All other
computations of fees and interest shall be made on the basis of a 360-day year
and actual days elapsed (which results in more fees or interest, as applicable,
being paid than if computed on the basis of a 365-day year).  Interest shall accrue on each Loan for the
day on which the Loan is made, and shall not accrue on a Loan, or any portion
thereof, for the day on which the Loan or such portion is paid, provided
that any Loan that is repaid on the same day on which it is made shall, subject
to Section 2.11(a), bear interest for one day.  Each determination by the Administrative
Agent of an interest rate or fee hereunder shall be presumptively correct,
absent manifest error.

2.10                           Evidence of Debt.

(a)                                The
Credit Extensions made by each Lender shall be evidenced by one or more
accounts or records maintained by such Lender and by the Administrative Agent
in the ordinary 

 43
 

course of business.  The accounts or records maintained by the
Administrative Agent and each Lender shall be presumptively correct absent
manifest error of the amount of the Credit Extensions made by the Lenders to
the Borrower and the interest and payments thereon.  Any failure to so record or any error in
doing so shall not, however, limit or otherwise affect the obligation of the Borrower
hereunder to pay any amount owing with respect to the Obligations.  In the event of any conflict between the
accounts and records maintained by any Lender and the accounts and records of
the Administrative Agent in respect of such matters, the accounts and records
of the Administrative Agent shall control in the absence of manifest
error.  Upon the request of any Lender
made through the Administrative Agent, the Borrower shall execute and deliver
to such Lender (through the Administrative Agent) a Note, which shall evidence
such Lender’s Loans in addition to such accounts or records.  Each Lender may attach schedules to its Note
and endorse thereon the date, Type (if applicable), amount and maturity of its
Loans and payments with respect thereto.

(b)                               In
addition to the accounts and records referred to in subsection (a), each
Lender and the Administrative Agent shall maintain in accordance with its usual
practice accounts or records evidencing the purchases and sales by such Lender
of participations in Letters of Credit. 
In the event of any conflict between the accounts and records maintained
by the Administrative Agent and the accounts and records of any Lender in
respect of such matters, the accounts and records of the Administrative Agent
shall control in the absence of manifest error.

2.11                           Payments Generally; Administrative Agent’s Clawback.

(a)                                General.  All payments to be made by the Parent and the
Borrower shall be made without condition or deduction for any counterclaim,
defense, recoupment or setoff.  Except as
otherwise expressly provided herein, all payments by the Parent and the
Borrower hereunder shall be made to the Administrative Agent, for the account
of the respective Lenders to which such payment is owed, at the Administrative
Agent’s Office in Dollars and in immediately available funds not later than
2:00 p.m. on the date specified herein. 
The Administrative Agent will promptly distribute to each Lender its
Applicable Percentage (or other applicable share as provided herein) of such payment
in like funds as received by wire transfer to such Lender’s Lending
Office.  All payments received by the
Administrative Agent after 3:00 p.m. shall be deemed received on the next
succeeding Business Day and any applicable interest or fee shall continue to
accrue.  If any payment to be made by the
Parent and the Borrower shall come due on a day other than a Business Day,
payment shall be made on the next following Business Day, and such extension of
time shall be reflected in computing interest or fees, as the case may be.

(b)

(i)                                     Funding
by Lenders; Presumption by Administrative Agent.  Unless the Administrative Agent shall have
received notice from a Lender prior to the proposed (A) time, with respect to
Base Rate Loans made on a same day basis and (B) date, with respect to all
other Loans, of any Borrowing that such Lender will not make available to the
Administrative Agent such Lender’s share of such Borrowing, the Administrative
Agent may assume that such Lender has made such share available on such date in
accordance with Section 2.02 and may, in reliance upon such
assumption, make available to the Borrower a corresponding 

 44
 

amount. 
In such event, if a Lender has not in fact made its share of the
applicable Borrowing available to the Administrative Agent, then the applicable
Lender agrees to pay to the Administrative Agent forthwith on demand such
corresponding amount in immediately available funds with interest thereon, for
each day from and including the date such amount is made available to the
Borrower to but excluding the date of payment to the Administrative Agent, at
the greater of the Federal Funds Rate and a rate determined by the
Administrative Agent in accordance with banking industry rules on interbank
compensation.  If the Lender does not pay
the Administrative Agent such amount, the Borrower agrees to pay the
Administrative Agent any such amount made available to the Borrower within five
Business Days of notice thereof with interest at a rate equal to the interest
rate applicable to Base Rate Loans.  If
the Borrower and such Lender shall pay such interest to the Administrative
Agent for the same or an overlapping period, the Administrative Agent shall
promptly remit to the Borrower the amount of such interest paid by the Borrower
for such period.  If such Lender pays its
share of the applicable Borrowing to the Administrative Agent, then the amount
so paid shall constitute such Lender’s Loan included in such Borrowing.  Any payment by the Borrower shall be without
prejudice to any claim the Borrower may have against a Lender that shall have
failed to make such payment to the Administrative Agent.

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

A notice of the Administrative Agent to any Lender or
the Borrower with respect to any amount owing under this subsection (b)
shall be presumptively correct, absent manifest error.

(c)                                Failure
to Satisfy Conditions Precedent.  If
any Lender makes available to the Administrative Agent funds for any Loan to be
made by such Lender as provided in the foregoing provisions of this Article
II, and such funds are not made available to the Borrower by the
Administrative Agent because the conditions to the applicable Credit Extension
set forth in Article IV are not satisfied or waived in accordance with
the terms hereof, the Administrative Agent shall return such funds (in like
funds as received from such Lender) to such Lender, 

 45
 

without interest; provided, however, that if
such funds are not returned within one Business Day, such funds shall bear
interest at the greater of the Federal Funds Rate and a rate determined by the
Administrative Agent in accordance with banking industry rules on interbank
compensation.

(d)                               Obligations
of Lenders Several.  The obligations
of the Lenders hereunder to make Loans, to fund participations in Letters of
Credit and to make payments pursuant to Section 10.04(c) are
several and not joint.  The failure of
any Lender to make any Loan, to fund any such participation or to make any
payment under Section 10.04(c) on any date required hereunder shall
not relieve any other Lender of its corresponding obligation to do so on such
date, and no Lender shall be responsible for the failure of any other Lender to
so make its Loan, to purchase its participation or to make its payment under Section 10.04(c).

(e)                                Funding
Source.  Nothing herein shall be
deemed to obligate any Lender to obtain the funds for any Loan in any
particular place or manner or to constitute a representation by any Lender that
it has obtained or will obtain the funds for any Loan in any particular place
or manner.

2.12                           Sharing of Payments by Lenders.  If any Lender shall, by exercising any right
of setoff or counterclaim or otherwise, obtain payment in respect of any
principal of or interest on any of the Loans made by it, or the participations
in L/C Obligations held by it resulting in such Lender’s receiving payment of a
proportion of the aggregate amount of such Loans or participations and accrued
interest thereon greater than its pro  rata share thereof as
provided herein, then the Lender receiving such greater proportion shall (a)
notify the Administrative Agent of such fact, and (b) purchase (for cash at
face value) participations in the Loans and subparticipations in L/C
Obligations of the other Lenders, or make such other adjustments as shall be
equitable, so that the benefit of all such payments shall be shared by the
Lenders ratably in accordance with the aggregate amount of principal of and
accrued interest on their respective Loans and other amounts owing them, provided
that:

(i)                                     if
any such participations or subparticipations are purchased and all or any
portion of the payment giving rise thereto is recovered, such participations or
subparticipations shall be rescinded and the purchase price restored to the
extent of such recovery, without interest; and

(ii)                                  the
provisions of this Section shall not be construed to apply to (x) any
payment made by the Borrower pursuant to and in accordance with the express
terms of this Agreement or (y) any payment obtained by a Lender as
consideration for the assignment of or sale of a participation in any of its
Loans or subparticipations in L/C Obligations to any assignee or participant,
other than to the Parent, the Borrower or any Subsidiary thereof (as to which
the provisions of this Section shall apply).

Each Loan Party
consents to the foregoing and agrees, to the extent it may effectively do so
under applicable law, that any Lender acquiring a participation pursuant to the
foregoing arrangements may exercise against such Loan Party rights of setoff and counterclaim with respect to
such participation as fully as if such Lender were a direct creditor of  such Loan Party
in the amount of such participation.

 46
 

2.13                           Incremental Facility.

(a)                                Request
for Incremental Facility.  Provided
(i) there exists no Default both before and after giving effect to any such
incurrence of an increase or additional term loan or revolver loan, (ii) such
increase and/or incurrence of an additional term loan or revolver loan is
permitted pursuant to the terms of the Indenture and the Senior Subordinated
Notes Documents and (iii) the Arrangers and the Agents consent thereto,
upon notice to the Administrative Agent (which shall promptly notify the
Lenders), the Borrower may from time to time, request (x) an increase in the
Aggregate Commitments, (y) the addition of an incremental term loan (an “Incremental
Term Loan”), or (z) the addition of an incremental revolver loan (an “Incremental
Revolver Loan”) (Incremental Revolver Loans and/or Incremental Term Loans,
or both, are herein collectively referred to as an “Incremental Facility”)
by an amount (for all such requests in the aggregate) not exceeding $500,000,000;
provided that any such request for an increase in the Aggregate
Commitments or any Incremental Facility shall be in a minimum amount of
$50,000,000.  At the time of sending such
notice, the Borrower (in consultation with the Administrative Agent) shall
specify the time period within which each Lender is requested to respond (which
shall in no event be less than ten Business Days from the date of delivery of
such notice to the Lenders).

(b)                               Lender
Elections.  Each Lender shall notify
the Administrative Agent within such time period whether or not it agrees (i)
to increase its Commitment and, if so, whether by an amount equal to, greater
than, or less than its Applicable Percentage of such requested increase and/or
(ii) to provide an Incremental Facility, and, if so, in what amount.  Any Lender not responding within such time
period shall be deemed to have declined to increase its Commitment or provide
an Incremental Facility.

(c)                                Notification
by Administrative Agent; Additional Lenders.  The Administrative Agent shall notify the
Borrower and each Lender of the Lenders’ responses to each request made
hereunder.  To achieve the full amount of
a requested increase in the Aggregate Commitments or Incremental Facility and
subject to the approval of the Arrangers, the Agents and the L/C Issuer, the
Borrower may also invite additional Eligible Assignees to become Lenders
pursuant to a joinder agreement in form and substance reasonably satisfactory
to the Administrative Agent and its counsel.

(d)                               Effective
Date of Increase and Allocations.  If
the Aggregate Commitments or Term Loans are increased in accordance with this
Section, the Administrative Agent and the Borrower shall determine the
effective date (the “Increase Effective Date”) and the final allocation
of such increase.  The Administrative
Agent shall promptly notify the Borrower and the Lenders of the final
allocation of such increase and the Increase Effective Date.  The Borrower shall prepay any Committed Loans
outstanding on the Increase Effective Date (and pay any additional amounts
required pursuant to Section 3.05) to the extent necessary to keep
the outstanding Loans ratable with any revised Applicable Percentages arising
from any nonratable increase in the Commitments under this Section.

(e)                                Incremental
Loan Amendment.  To effectuate the
addition of an Incremental Facility, the Borrower, the Agents and each Lender
or other approved financial institution agreeing to provide such Incremental
Facility, shall execute an amendment (each, an

 47

“Incremental Loan Amendment”).  Each such Incremental Loan Amendment shall
provide that (i) the scheduled maturity date of the Incremental Facility shall
not be sooner than the Maturity Date and (ii) the Incremental Facility shall be
collateralized on the same basis as the Loans. 
Notwithstanding Section 10.01, any waiver, consent or other
amendment to any term or provision of this Agreement necessary or advisable to
effectuate any Incremental Facility or any provisions thereof in accordance
with the terms of, or the intent of, this Agreement, shall be effective when
executed by the Borrower, the Agents and each Lender or other approved
financial institution making such Incremental Facility.  So long as any financial institution not
theretofore a Lender which is providing an Incremental Facility shall have
become a Lender under this Agreement pursuant to an Incremental Loan Amendment,
the Incremental Facility being requested by the Borrower shall become effective
under this Agreement upon the effectiveness of such Incremental Loan Amendment
and the Lender or Lenders providing such Incremental Facility shall be deemed
to have agreed, severally and not jointly, upon the terms and subject to the
conditions of this Agreement, to make an Incremental Facility on the effective
date of the applicable Incremental Loan Amendment.

(f)           Conditions to Effectiveness of
Increase or Incremental Loan Amendment. 
As a condition precedent to such increase in the Aggregate Commitments
and any Incremental Facility, the Borrower shall deliver to the Administrative
Agent a certificate of each Loan Party (as applicable) dated as of the Increase
Effective Date or the effective date of the Incremental Loan Amendment, as
applicable, signed by a Responsible Officer of such Loan Party (i) certifying
and attaching the resolutions adopted by such Loan Party approving or
consenting to such increase or Incremental Loan Amendment, and (ii) in the
case of the Borrower, certifying that, before and after giving effect to such
increase or Incremental Loan Amendment, (A) the representations and warranties
contained in Article V and the other Loan Documents are true and
correct in all material respects on and as of the Increase Effective Date or
the effective date of the Incremental Loan Amendment, as applicable, except to
the extent that such representations and warranties specifically refer to an
earlier date, in which case they are true and correct in all material respects
as of such earlier date, and except that for purposes of this Section 2.13,
the representations and warranties contained in subsections (a) and (b) of
Section 5.05 shall be deemed to refer to the most recent statements
furnished pursuant to clauses (a) and (b), respectively, of Section 6.01,
(B) no Default shall have occurred and be continuing or be caused by the
increase in the Aggregate Commitments or incurrence of the Incremental Facility
and (C) that the financial projections attached thereto  demonstrate on a pro forma basis the
Borrower’s compliance with all of the covenants in the Agreement (including the
financial covenants set forth in Section 7.13) after giving effect
to such increase or incurrence of the Incremental Facility.

(g)          Conflicting Provisions.  This Section shall supersede any provisions
in Sections 2.12 or 10.01 to the contrary.

 48
 

ARTICLE
III.

TAXES, YIELD PROTECTION AND ILLEGALITY

3.01         Taxes.

(a)           Payments Free of Taxes.  Except as otherwise provided in this
Agreement, any and all payments by or on account of any obligation of Parent,
the Borrower or any Subsidiary hereunder or under any other Loan Document shall
be made free and clear of and without reduction or withholding for any
Indemnified Taxes or Other Taxes, provided that if the Parent, the Borrower or
any Subsidiary shall be required by applicable law to deduct any Indemnified
Taxes (including any Other Taxes) from such payments, then (i) the sum payable
shall be increased as necessary so that after making all required deductions
(including deductions applicable to additional sums payable under this Section)
the Administrative Agent, Lender or L/C Issuer, as the case may be, receives an
amount equal to the sum it would have received had no such deductions been
made, (ii) the Parent, the Borrower and their Subsidiaries shall make such
deductions and (iii) the Parent, the Borrower and their Subsidiaries shall
timely pay the full amount deducted to the relevant Governmental Authority in
accordance with applicable law.

(b)          Payment of Other Taxes by the Loan
Parties.  Without limiting the
provisions of subsection (a) above, the Parent, the Borrower and their
Restricted Subsidiaries shall timely pay any Other Taxes to the relevant
Governmental Authority in accordance with applicable law.

(c)           Indemnification by the Borrower.  The Borrower shall indemnify the Administrative
Agent, each Lender and the L/C Issuer, within 30 days after its receipt of a
reasonably detailed written invoice therefor, for the full amount of any
Indemnified Taxes or Other Taxes (including Indemnified Taxes or Other Taxes
imposed or asserted on or attributable to amounts payable under this Section)
paid by the Administrative Agent, such Lender or the L/C Issuer, as the case
may be, and any penalties, interest and reasonable expenses arising therefrom
or with respect thereto, whether or not such Indemnified Taxes or Other Taxes
were correctly or legally imposed or asserted by the relevant Governmental
Authority.  A duly executed certificate,
prepared in good faith, as to the amount of such payment or liability delivered
to the Borrower by a Lender or the L/C Issuer (with a copy to the
Administrative Agent), or by the Administrative Agent on its own behalf or on
behalf of a Lender or the L/C Issuer, shall be presumptively correct absent
manifest error.

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

(e)           Status of Lenders.  Any Foreign Lender that is entitled to an
exemption from or reduction of withholding tax under the law of the
jurisdiction in which the Borrower is resident for tax purposes, or any treaty
to which such jurisdiction is a party, with respect to payments hereunder or
under any other Loan Document shall deliver to the Borrower (with a copy to the
Administrative Agent), at the time or times prescribed by applicable law or
reasonably requested by the Borrower or the Administrative Agent, such properly
completed and duly executed documentation prescribed by applicable law as will
permit such payments to be made without withholding or at a reduced rate of
withholding.  In addition, any Lender, if
requested by the Borrower or the Administrative Agent, shall deliver such other
documentation prescribed by applicable law or reasonably requested by the
Borrower or the Administrative Agent as will

 49
 

enable the Borrower or the Administrative
Agent to determine whether or not such Lender is subject to backup withholding
or information reporting requirements.

Without limiting the generality of the foregoing, in
the event that the Borrower is resident for tax purposes in the United States,
any Foreign Lender shall deliver to the Borrower and the Administrative Agent
(in such number of copies as shall be requested by the recipient) on or prior
to the date on which such Foreign Lender becomes a Lender under this Agreement
(and from time to time thereafter upon the request of the Borrower or the
Administrative Agent, but only if such Foreign Lender is legally entitled to do
so), whichever of the following is applicable:

(i)            two accurate and complete original
signed copies of Internal Revenue Service Form W-8BEN claiming eligibility for
benefits of an income tax treaty to which the United States is a party,

(ii)           two accurate and complete original
signed copies of Internal Revenue Service Form W-8ECI,

(iii)          in the case of a Foreign Lender
claiming the benefits of the exemption for portfolio interest under
Section 881(c) of the Code, (x) a duly executed certificate to the effect
that such Foreign Lender is not (A) a “bank” within the meaning of
Section 881(c)(3)(A) of the Code, (B) a “10 percent shareholder” of the
Borrower within the meaning of Section 881(c)(3)(B) of the Code, or (C) a “controlled
foreign corporation” described in Section 881(c)(3)(C) of the Code and (y)
two accurate and complete original signed copies of Internal Revenue Service
Form W-8BEN, or

(iv)          any other form prescribed by
applicable law as a basis for claiming exemption from or a reduction in United
States Federal withholding tax duly completed together with such supplementary
documentation as may be prescribed by applicable law to permit the Borrower to
determine the withholding or deduction required to be made.

In the event that the
Borrower is a resident for tax purposes in the United States, any Lender other
than a Foreign Lender shall deliver to the Borrower and the Administrative
Agent (in such number of copies as shall be requested by the recipient) on or
prior to the date Lender becomes a Lender under this Agreement (and from time
to time thereafter upon the request of the Borrower or the Administrative
Agent, but only if such Lender is legally entitled to do so) accurate and
complete copies of Internal Revenue Service Form W-9, or any subsequent
versions or successors to such form.

(f)           Treatment of Certain Refunds.  If the Administrative Agent, any Lender or
the L/C Issuer determines, in its sole discretion, that it has received a
refund of any Taxes or Other Taxes as to which it has been indemnified by the
Borrower or with respect to which the Borrower has paid additional amounts
pursuant to this Section, it shall pay to the Borrower an amount equal to such
refund (but only to the extent of indemnity payments made, or additional
amounts paid, by the Borrower under this Section with respect to the Taxes or
Other Taxes giving rise to such refund), net of all out-of-pocket expenses of
the Administrative Agent, such

 50
 

Lender or the L/C Issuer, as the case may be,
and without interest (other than any interest paid by the relevant Governmental
Authority with respect to such refund), provided that the Borrower, upon
the request of the Administrative Agent, suchLender or the L/C Issuer, agrees
to repay the amount paid over to the Borrower (plus any penalties, interest or
other charges imposed by the relevant Governmental Authority) to the
Administrative Agent, such Lender or the L/C Issuer in the event the
Administrative Agent, such Lender or the L/C Issuer is required to repay such
refund to such Governmental Authority.  This
subsection shall not be construed to require the Administrative Agent, any
Lender or the L/C Issuer to make available its tax returns (or any other
information relating to its taxes that it deems confidential) to the Borrower
or any other Person.

3.02         Illegality. 
If any Lender determines that any Law has made it unlawful, or that any
Governmental Authority has asserted that it is unlawful, for any Lender or its
applicable Lending Office to make, maintain or fund Eurodollar Rate Loans, or
to determine or charge interest rates based upon the Eurodollar Rate, or any
Governmental Authority has imposed material restrictions on the authority of
such Lender to purchase or sell, or to take deposits of, Dollars in the London
interbank market, then, on notice thereof by such Lender to the Borrower through
the Administrative Agent, any obligation of such Lender to make or continue
Eurodollar Rate Loans or to convert Base Rate Loans to Eurodollar Rate Loans
shall be suspended until such Lender notifies the Administrative Agent and the
Borrower that the circumstances giving rise to such determination no longer
exist, which it shall do promptly.  Upon
receipt of such notice, the Borrower shall, within 30 days of receipt of a
reasonably detailed written invoice therefor from such Lender (with a copy to
the Administrative Agent), convert all Eurodollar Rate Loans of such Lender to
Base Rate Loans or prepay all Eurodollar Rate Loans, either on the last day of
the Interest Period therefor, if such Lender may lawfully continue to maintain
such Eurodollar Rate Loans to such day, or immediately, if such Lender may not
lawfully continue to maintain such Eurodollar Rate Loans.  Upon any such prepayment or conversion, the
Borrower shall also pay accrued interest on the amount so prepaid or converted.

3.03         Inability to Determine Rates.  If the Required Lenders determine that for
any reason in connection with any request for a Eurodollar Rate Loan or a
conversion to or continuation thereof that (a) Dollar deposits are not being
offered to banks in the London interbank Eurodollar market for the applicable
amount and Interest Period of such Eurodollar Rate Loan, (b) adequate and
reasonable means do not exist for determining the Eurodollar Rate for any
requested Interest Period with respect to a proposed Eurodollar Rate Loan, or
(c) the Eurodollar Rate for any requested Interest Period with respect to a
proposed Eurodollar Rate Loan does not adequately and fairly reflect the cost
to such Lenders of funding such Loan (as determined by the Required Lenders for
borrowers generally), the Administrative Agent will promptly so notify the
Borrower and each Lender.  Thereafter,
the obligation of the Lenders to make or maintain Eurodollar Rate Loans shall
be suspended until the Administrative Agent revokes such notice, which it shall
do promptly when such circumstances cease to exist or change.  Upon receipt of such notice, the Borrower may
revoke any pending request for a Borrowing of, conversion to or continuation of
Eurodollar Rate Loans or, failing that, will be deemed to have converted such
request into a request for a Borrowing of Base Rate Loans in the amount
specified therein.

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3.04         Increased Costs; Reserves on Eurodollar Rate Loans.

(a)           Increased Costs Generally.  If any Change in Law shall

(i)            impose, modify or deem applicable any
reserve, special deposit, compulsory loan, insurance charge or similar
requirement against assets of, deposits with or for the account of, or credit
extended or participated in by, any Lender (except any reserve requirement
contemplated by Section 3.04(e)) or the L/C Issuer;

(ii)           subject any Lender or the L/C Issuer
to any tax of any kind whatsoever with respect to this Agreement, any Letter of
Credit, any participation in a Letter of Credit or any Eurodollar Rate Loan
made by it, or change the basis of taxation of payments to such Lender or the
L/C Issuer in respect thereof (except for Indemnified Taxes or Other Taxes
covered by Section 3.01 and the imposition of, or any change in the
rate of, any Excluded Tax payable by such Lender or the L/C Issuer); or

(iii)          impose on any Lender or the L/C Issuer
or the London interbank market any other material condition, cost or expense
affecting this Agreement or Eurodollar Rate Loans made by such Lender or any
Letter of Credit or participation therein;

and the result of any of the foregoing shall be to
increase the cost to such Lender of making or maintaining any Eurodollar Rate
Loan (or of maintaining its obligation to make any such Loan), or to increase
the cost to such Lender or the L/C Issuer of participating in, issuing or
maintaining any Letter of Credit (or of maintaining its obligation to
participate in or to issue any Letter of Credit), or to reduce the amount of
any sum received or receivable by such Lender or the L/C Issuer hereunder
(whether of principal, interest or any other amount) then, upon request of such
Lender or the L/C Issuer, the Borrower will pay to such Lender or the L/C
Issuer, as the case may be, such additional amount or amounts as will
compensate such Lender or the L/C Issuer, as the case may be, for such
additional costs incurred or reduction suffered.

(b)          Capital Requirements.  If any Lender or the L/C Issuer determines
that any Change in Law affecting such Lender or the L/C Issuer or any Lending
Office of such Lender or such Lender’s or the L/C Issuer’s holding company, if
any, regarding capital requirements has or would have the effect of reducing
the rate of return on such Lender’s or the L/C Issuer’s capital or on the
capital of such Lender’s or the L/C Issuer’s holding company, if any, as a
consequence of this Agreement, the Commitments of such Lender or the Loans made
by, or participations in Letters of Credit held by, such Lender, or the Letters
of Credit issued by the L/C Issuer, to a level below that which such Lender or
the L/C Issuer or such Lender’s or the L/C Issuer’s holding company could have
achieved but for such Change in Law (taking into consideration such Lender’s or
the L/C Issuer’s policies and the policies of such Lender’s or the L/C Issuer’s
holding company with respect to capital adequacy), then from time to time the
Borrower will pay to such Lender or the L/C Issuer, as the case may be, such
additional amount or amounts as will compensate such Lender or the L/C Issuer
or such Lender’s or the L/C Issuer’s holding company for any such reduction
suffered.

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(c)           Certificates for Reimbursement.  A certificate of a Lender or the L/C Issuer
setting forth the amount or amounts necessary to compensate such Lender or the
L/C Issuer or its holding company, as the case may be, as specified in
subsection (a) or (b) of this Section and delivered to the Borrower shall
be presumptively correct absent manifest error. 
The Borrower shall pay such Lender or the L/C Issuer, as the case may
be, the amount shown as due on any such certificate within 30 days after
receipt thereof.

(d)          Delay in Requests.  Failure or delay on the part of any Lender or
the L/C Issuer to demand compensation pursuant to the foregoing provisions of
this Section shall not constitute a waiver of such Lender’s or the L/C Issuer’s
right to demand such compensation, provided that the Borrower shall not
be required to compensate a Lender or the L/C Issuer pursuant to the foregoing
provisions of this Section for any increased costs incurred or reductions
suffered more than six months prior to the date that such Lender or the L/C
Issuer, as the case may be, notifies the Borrower of the Change in Law giving
rise to such increased costs or reductions and of such Lender’s or the L/C
Issuer’s intention to claim compensation therefor (except that, if the Change
in Law giving rise to such increased costs or reductions is retroactive, then
the six-month period referred to above shall be extended to include the period
of retroactive effect thereof).

(e)           Reserves on Eurodollar Rate Loans.  The Borrower shall pay to each Lender, as
long as such Lender shall be required to maintain reserves with respect to
liabilities or assets consisting of or including Eurocurrency funds or deposits
(currently known as “Eurocurrency liabilities”), additional interest on the
unpaid principal amount of each Eurodollar Rate Loan equal to the actual costs
of such reserves allocated to such Loan by such Lender (as determined by such
Lender in good faith, which determination shall be presumptively correct absent
manifest error), which shall be due and payable on each date on which interest
is payable on such Loan, provided the Borrower shall have received at
least 10 Business Days’ prior notice (with a copy to the Administrative Agent)
of such additional interest from such Lender. 
If a Lender fails to give notice 10 Business Days prior notice to the
relevant Interest Payment Date, such additional interest shall be due and
payable 10 Business Days from receipt of such notice.

3.05         Compensation for Losses.  Within 30 days of receipt of a reasonably
detailed written invoice therefor, the Borrower shall promptly compensate such
Lender for and hold such Lender harmless from any loss (but not lost profits),
cost or expense actually incurred by it as a result of:

(a)           any continuation, conversion, payment
or prepayment of any Loan other than a Base Rate Loan on a day other than the
last day of the Interest Period for such Loan (whether voluntary, mandatory,
automatic, by reason of acceleration, or otherwise);

(b)          any failure by the Borrower, other
than pursuant to Section 3.03 (for a reason other than the failure
of such Lender to make a Loan) to prepay, borrow, continue or convert any Loan
other than a Base Rate Loan on the date or in the amount notified by the
Borrower; or

(c)           any assignment of a Eurodollar Rate
Loan on a day other than the last day of the Interest Period therefor as a
result of a request by the Borrower pursuant to Section 10.13;

 53
 

including any actual loss or expense arising from the
liquidation or reemployment of funds obtained by it to maintain such Loan or
from fees payable to terminate the deposits from which such funds were
obtained.

For purposes of calculating amounts payable by the
Borrower to the Lenders under this Section 3.05, each Lender shall
be deemed to have funded each Eurodollar Rate Loan made by it at the Eurodollar
Rate for such Loan by a matching deposit or other borrowing in the London
interbank Eurodollar market for a comparable amount and for a comparable
period, whether or not such Eurodollar Rate Loan was in fact so funded.

3.06         Mitigation Obligations; Replacement of Lenders.

(a)           Designation of a Different Lending
Office.  If any Lender requests
compensation under Section 3.04, or the Borrower is required to pay
any additional amount to any Lender or any Governmental Authority for the
account of any Lender pursuant to Section 3.01, or if any Lender
gives a notice pursuant to Section 3.02, then such Lender shall use
reasonable efforts to designate a different Lending Office for funding or
booking its Loans hereunder or to assign its rights and obligations hereunder
to another of its offices, branches or affiliates, if, in the judgment of such
Lender, such designation or assignment (i) would eliminate or reduce amounts
payable pursuant to Section 3.01 or 3.04, as the case may
be, in the future, or eliminate the need for the notice pursuant to Section 3.02,
as applicable, and (ii) in each case, would not subject such Lender to any
unreimbursed cost or expense and would not otherwise be disadvantageous to such
Lender.  The Borrower hereby agrees to
pay all reasonable costs and expenses incurred by any Lender in connection with
any such designation or assignment.

(b)          Replacement of Lenders.  If (i) any Lender requests compensation under
Section 3.04, (ii) any Lender is unable to fund under Section 3.02
(if such illegality or condition is not generally applicable to the Lenders),
or (iii) if the Borrower is required to pay any additional amount to any
Lender or any Governmental Authority for the account of any Lender pursuant to Section 3.01,
the Borrower may replace such Lender in accordance with Section 10.13.

3.07         Survival. 
All of the Borrower’s obligations under this Article III shall
survive termination of the Aggregate Commitments and repayment of all other
Obligations hereunder.

ARTICLE
IV.

CONDITIONS PRECEDENT TO CREDIT EXTENSIONS

4.01         Conditions of Initial Credit Extension.  The obligation of the L/C Issuer and each
Lender to make its initial Credit Extension hereunder is subject to satisfaction
or waiver of the following conditions precedent:

(a)           The Administrative Agent’s receipt of
the following, each of which shall be originals or telecopies (followed
promptly by originals) unless otherwise specified, each properly executed by a
Responsible Officer of the signing Loan Party on behalf of the signing Loan
Party, each dated the Closing Date (or, in the case of certificates of
governmental officials, a recent date before the Closing Date) and each in form
and substance satisfactory to the Agents and the Arrangers:

 54
 

(i)            executed counterparts of this
Agreement and the Guaranty, sufficient in number for distribution to the
Administrative Agent, each Lender and the Borrower;

(ii)           Notes executed by the Borrower in
favor of each Lender requesting Notes, evidencing the Committed Loans and the
Term A Loans, as applicable;

(iii)          a pledge agreement in form and
substance reasonably satisfactory to the Administrative Agent (the “Parent/Borrower
Pledge Agreement”), executed by the Parent and the Borrower granting to the
Administrative Agent, for the benefit of the Lenders, a first priority security
interest in all of the issued and outstanding Equity Interests of the Borrower
and in the other Collateral; and the Parent and the Borrower shall have delivered
to the Administrative Agent all certificates, if any, evidencing such Equity
Interests, all UCC-1s and all powers, duly endorsed in blank, with respect
thereto, to the extent applicable; and the Parent and the Borrower shall have
taken all such other actions as may be reasonably required by the
Administrative Agent to effect the grant and first priority perfection of the
Administrative Agent’s security interest in such Equity Interests;

(iv)          a pledge agreement in form and
substance reasonably satisfactory to the Administrative Agent (the “Subsidiary
Pledge Agreement”), executed by each Restricted Subsidiary of the Parent and
the Borrower necessary to pledge the Collateral not described in subsection
(iii) preceding, for the benefit of the Lenders, a first priority security
interest in all of the issued and outstanding Equity Interests of each
Restricted Subsidiary owned by such Person; each such Restricted Subsidiary
shall have delivered to the Administrative Agent all certificates, if any,
evidencing such Equity Interests, all UCC-1s and all powers, duly endorsed in
blank, with respect thereto; each such Restricted Subsidiary shall have taken
all actions as may be required by the Administrative Agent to effect the grant
and first priority perfection of the Administrative Agent’s security interest
in such Equity Interests;

(v)           such certificates of resolutions or
other action, incumbency certificates and/or other certificates of Responsible
Officers of each Loan Party as the Administrative Agent may require evidencing
the identity, authority and capacity of each Responsible Officer thereof
authorized to act as a Responsible Officer in connection with this Agreement
and the other Loan Documents to which such Loan Party is a party;

(vi)          such documents and certifications as
the Administrative Agent may reasonably require to evidence that each Loan
Party is duly organized or formed, and that each of the Borrower, the Parent
and each Guarantor is validly existing, in good standing and qualified to
engage in business in each jurisdiction where its ownership, lease or operation
of properties or the conduct of its business requires such qualification,
except to the extent that failure to do so could not reasonably be expected to
have a Material Adverse Effect;

 55
 

(vii)         a favorable opinion of (A) Latham &
Watkins, LLP, counsel to the Loan Parties, addressed to the Administrative
Agent and each Lender, in form and substance reasonably satisfactory to the
Administrative Agent and (B) FCC counsel to the Loan Parties, in each case
dated the Closing Date, addressed to the Lenders and in form and substance
reasonably satisfactory to the Administrative Agent;

(viii)        a certificate of a Responsible Officer
of each Loan Party either (A) attaching copies of all material consents,
licenses and approvals required in connection with the execution, delivery and
performance by such Loan Party and the validity against such Loan Party of the
Loan Documents to which it is a party, and such consents, licenses and
approvals shall be in full force and effect, or (B) stating that no such
consents, licenses or approvals are so required;

(ix)           a certificate of the Borrower
certifying (A) that the conditions specified in Sections 4.02(a) and (b)
have been satisfied, and (B) that there has been no event or circumstance
since the date of the Audited Financial Statements that has had or could be
reasonably expected to have, either individually or in the aggregate, a
Material Adverse Effect;

(x)            a duly completed Compliance
Certificate as of the last day of the fiscal quarter of the Borrower most
recently ended prior to the Closing Date;

(xi)           evidence that (A) all amounts
outstanding under the Existing Credit Agreement have been (or will be
concurrently herewith) repaid in full, (B) the Existing Credit Agreement
and the other loan documents (as defined in the Existing Credit Agreement)
shall have been (or are concurrently herewith) terminated, and (C) all
collateral securing the obligations under the Existing Credit Agreement shall
have been (or is concurrently herewith) released; and

(xii)          such other assurances, certificates,
documents, consents or opinions as the Administrative Agent, the L/C Issuer or
the Required Lenders reasonably may require.

(b)          Any fees required to be paid on or
before the Closing Date shall have been paid.

(c)           Unless waived by the Administrative
Agent, the Borrower shall have paid all fees, charges and disbursements of
counsel to the Administrative Agent to the extent invoiced prior to or on the
Closing Date, (provided that such invoice shall not thereafter preclude a final
settling of accounts between the Borrower and the Administrative Agent).

(d)          The Closing Date shall have occurred
on or before July 16, 2007.

(e)           There shall not have occurred a
material adverse change (i) in the business, assets, properties,
liabilities (actual or contingent), operations or financial condition of the
Parent, the Borrower and their Subsidiaries, taken as a whole, since
December 31, 2006 or (ii) in the facts and information regarding such
entities as represented by the Parent, the Borrower or any of their
Subsidiaries, or any representatives of any of them, to date.

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(f)           The absence of any action, suit,
investigation or proceeding pending or, to the actual knowledge of a member of
the executive management of the Parent, the Borrower or any of their Restricted
Subsidiaries, threatened, in any court or before any arbitrator or Governmental
Authority that could reasonably be expected to (i) have a material adverse
effect on the business, assets, properties, liabilities (actual and
contingent), operations or financial condition of the Parent, the Borrower and
their Subsidiaries, taken as a whole, (ii) materially and adversely affect
the ability of the Borrower or any Guarantor to perform its obligations under
any material provision of the Loan Documents or (iii) materially and
adversely affect the rights and remedies of the Agents or the Lenders under the
Loan Documents.

Without limiting the generality of the provisions of Section 9.04,
for purposes of determining compliance with the conditions specified in this Section 4.01,
each Lender that has signed this Agreement shall be deemed to have consented
to, approved or accepted or to be satisfied with, each document or other matter
required thereunder to be consented to or approved by or acceptable or
satisfactory to a Lender unless the Administrative Agent shall have received
notice from such Lender prior to the proposed Closing Date specifying its
objection thereto.

4.02         Conditions to all Credit Extensions.  The obligation of each Lender to honor any
Request for Credit Extension (other than a Loan Notice requesting only a
conversion of Loans to the other Type, or a continuation of Eurodollar Rate
Loans) is subject to the satisfaction of each of the following conditions
precedent:

(a)           The representations and warranties of
the Borrower and each other Loan Party contained in Article V or
any other Loan Document, or which are contained in any document furnished at
any time under or in connection herewith or therewith, shall be true and
correct in all material respects on and as of the date of such Credit
Extension, except to the extent that such representations and warranties
specifically refer to an earlier date, in which case they shall be true and
correct in all material respects as of such earlier date, and except that for
purposes of this Section 4.02, the representations and warranties
contained in subsections (a) and (b) of Section 5.05 shall be
deemed to refer to the most recent statements furnished pursuant to clauses (a)
and (b), respectively, of Section 6.01.

(b)          No Default shall exist, or would
result from such proposed Credit Extension or from the application of the
proceeds thereof.

(c)           The Administrative Agent and, if
applicable, the L/C Issuer shall have received a Request for Credit Extension
in accordance with the requirements hereof.

(d)          If the Indenture is then in effect and
the Total Outstandings are in excess of $650,000,000.00, such proposed Credit
Extension would be permitted under Section 4.05 of the Indenture.

Each Request for Credit Extension (other than a Loan
Notice requesting only a conversion of Loans to the other Type or a
continuation of Eurodollar Rate Loans) submitted by the Borrower shall be
deemed to be a representation and warranty that the conditions specified in Sections
4.02(a) and (b) have been satisfied on and as of the date of the
applicable Credit Extension.

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ARTICLE
V.

REPRESENTATIONS AND WARRANTIES

The Borrower represents and warrants to the
Administrative Agent and the Lenders that:

5.01         Existence, Qualification and Power; Compliance with
Laws.  Each Loan Party and
each Restricted Subsidiary thereof (a) is duly organized or formed,
validly existing and in good standing under the Laws of the jurisdiction of its
incorporation or organization, (b) has all requisite power and authority and
all requisite governmental licenses, authorizations, consents and approvals to
(i) own its assets and carry on its business and (ii) execute, deliver and
perform its obligations under the Loan Documents to which it is a party,
(c) is duly qualified and is licensed and in good standing under the Laws
of each jurisdiction where its ownership, lease or operation of properties or
the conduct of its business requires such qualification or license, and (d) is
in compliance with all Laws; except in each case referred to in clause (b)(i),
(c) or (d), to the extent that failure to do so could not reasonably be
expected to have a Material Adverse Effect.

5.02         Authorization; No Contravention.  The execution, delivery and performance by
each Loan Party of each Loan Document to which such Person is party, have been
duly authorized by all necessary corporate or other organizational action, and
do not and will not (a) contravene the terms of any of such Person’s Organization
Documents; (b) conflict with or result in any breach or contravention of, or
the creation of any Lien under, or require any payment to be made under any
Material Contractual Obligation, Material Operating Agreement or Senior
Subordinated Notes Document, (c) conflict with or result in any breach or
contravention of, any order, injunction, writ or decree of any Governmental
Authority or any arbitral award to which such Person or its property is
subject; or (d) except as would not have a Material Adverse Effect,
violate any Law.  On the Closing Date,
each Loan Party and each Subsidiary thereof is in compliance in all material
respects with all Material Contractual Obligations, Material Operating
Agreements and all Senior Subordinated Notes Documents.

5.03         Governmental Authorization; Other Consents.  Subject to Section 10.16, no
approval, consent, exemption, authorization, or other action by, or notice to,
or filing with, the FCC or any other Governmental Authority or any other Person
is necessary or required in connection with the execution, delivery or
performance by, or enforcement against, any Loan Party of this Agreement or any
other Loan Document, including, in connection with the granting of Liens in the
Equity Interests of the Borrower and the Subsidiaries, except the routine
filing of this Agreement with the FCC and the SEC.

5.04         Binding Effect.  This Agreement has been, and each other Loan
Document, when delivered hereunder, will have been, duly executed and delivered
by each Loan Party that is party thereto. 
This Agreement constitutes, and each other Loan Document when so
delivered will constitute, a legal, valid and binding obligation of such Loan
Party, enforceable against each Loan Party that is party thereto in accordance
with its terms, except to the extent that the enforceability hereof and thereof
may be limited by bankruptcy, insolvency or like laws affecting creditors
rights generally and by the application of general equitable principles
(whether such enforcement is sought by proceedings in equity or law).

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5.05         Financial Statements; No Material Adverse Effect.

(a)           The Audited Financial Statements (i)
were prepared in accordance with GAAP consistently applied throughout the
period covered thereby, except as otherwise expressly noted therein; (ii)
fairly present in all material respects the financial condition of the Parent,
the Borrower and their Subsidiaries as of the date thereof and their results of
operations for the period covered thereby in accordance with GAAP consistently
applied throughout the period covered thereby, except as otherwise expressly
noted therein; and (iii) show all material indebtedness and other liabilities,
direct or contingent, of the Parent, the Borrower and their Subsidiaries as of
the date thereof, including liabilities for taxes, material commitments and
Indebtedness to the extent required by GAAP to be shown therein.

(b)          The unaudited consolidated balance
sheet of the Borrower and its Subsidiaries dated March 31, 2007, and the
related consolidated statements of income or operations, shareholders’ equity
and cash flows for the fiscal quarter ended on that date (i) were prepared
in accordance with GAAP consistently applied throughout the period covered
thereby, except as otherwise expressly noted therein, and (ii) fairly present
the financial condition of the Borrower and its Subsidiaries as of the date
thereof and their results of operations for the period covered thereby,
subject, in the case of clauses (i) and (ii), to condensed footnotes, the use
of GAAP for interim financial statements and to normal year-end audit
adjustments.  Schedule 5.05
sets forth all material indebtedness and other liabilities, direct or
contingent, of the Parent, the Borrower and their consolidated Subsidiaries as
of the date of such financial statements, including liabilities for taxes,
material commitments and Indebtedness, in each case only to the extent each
such indebtedness or each such liability exceeds $20,000,000.

(c)           Since the date of the Audited
Financial Statements, there has been no event or circumstance, either
individually or in the aggregate, that has had or could reasonably be expected
to have a Material Adverse Effect.

5.06         Litigation. 
Except for regulatory issues affecting the industry as a whole, there is
no action, suit, complaint, proceeding, inquiry or investigation at law or in
equity, or by or before any court or governmental instrumentality or agency,
nor any order (including, any order to show cause or order of forfeiture),
decree or judgment in effect, pending or, to the best of the Parent’s and the
Borrower’s knowledge, threatened against or affecting any Loan Party, any
Station or any of the properties or rights relating to any Station which could
reasonably be expected to have a Material Adverse Effect.  Except for regulatory issues affecting the
industry as a whole and except for repeat filers that are nuisance filers and
their affiliates, agents and representatives, no Person has filed or, to the
best of the Borrower’s knowledge, threatened to file, any competing
application, petition to deny, petition for reconsideration or other opposition
against any application, including any renewal application, filed or to be
filed by any Loan Party, that could in any such case reasonably be expected to
have a Material Adverse Effect.

5.07         No Default. 
No Default has occurred and is continuing or would result from the
execution and/or delivery of any of the Loan Documents.

5.08         Ownership of Property; Liens.  Each of the Parent, the Borrower and each
Restricted Subsidiary has good title in fee simple to, or valid leasehold
interests in, all real

 59
 

property
necessary or used in the ordinary conduct of its business, except for such
defects in title as could not reasonably be expected to have a Material Adverse
Effect.  The property of the Parent, the
Borrower and their Restricted Subsidiaries is subject to no Liens, except Liens
permitted by Section 7.01.

5.09         Environmental Compliance.  The Parent, the Borrower and their
Subsidiaries have obtained all material permits, licenses and other
authorizations which are required under applicable Environmental Laws and are
in compliance with such Environmental Laws, except for such failures to obtain
and such non compliance as could not, individually or in the aggregate,
reasonably be expected to nave a Material Adverse Effect.

5.10         Insurance. 
The properties of the Parent, the Borrower and their Restricted
Subsidiaries are insured with financially sound and reputable insurance
companies not Affiliates of the Borrower, in such amounts (after giving effect
to any self-insurance), with such deductibles and covering such risks as comply
with Section 6.07.

5.11         Taxes. 
The Parent, the Borrower and their Restricted Subsidiaries have filed
all Federal income tax and all other material federal and state tax returns and
reports required to be filed, and have paid all Federal, state and other
material taxes, assessments, fees and other governmental charges shown thereon
to be owing by them, except those which are being contested in good faith by appropriate
proceedings diligently conducted and for which adequate reserves have been
provided if and to the extent required in accordance with GAAP.  On the Closing Date, there is no proposed tax
assessment against the Parent, the Borrower or any Restricted Subsidiary that
would, if made, have a Material Adverse Effect. 
On the Closing Date, no Loan Party is party to any tax sharing
agreement.

5.12         ERISA Compliance.

(a)           Except as could not reasonably be
expected to have a Material Adverse Effect, each Plan is in compliance with the
applicable provisions of ERISA, the Code and other Federal or state Laws.  Each Plan that is intended to qualify under
Section 401(a) of the Code has received a favorable determination letter
from the IRS or an application for such a letter is currently being processed
by the IRS with respect thereto and, to the best knowledge of the Parent and
the Borrower, nothing has occurred which would prevent, or cause the loss of,
such qualification.  The Parent, the
Borrower and each ERISA Affiliate have made all required contributions to each
Plan subject to Section 412 of the Code, and no application for a funding
waiver or an extension of any amortization period pursuant to Section 412
of the Code has been made with respect to any Plan.

(b)          There are no pending or, to the best
knowledge of the Parent and the Borrower, threatened claims, actions or
lawsuits, or action by any Governmental Authority, with respect to any Plan
that could be reasonably be expected to have a Material Adverse Effect.  There has been no prohibited transaction or
violation of the fiduciary responsibility rules with respect to any Plan that
has resulted or could reasonably be expected to result in a Material Adverse
Effect.

(c)           Except as could not reasonably be
expected to have a Material Adverse Effect, (i) No ERISA Event has
occurred within the past six years or is reasonably expected to occur;

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(ii) no Pension Plan has any Unfunded
Pension Liability; (iii) neither the Parent, the Borrower nor any ERISA
Affiliate has incurred, or reasonably expects to incur, any liability (and no
event has occurred which, with the giving of notice under Section 4219 of
ERISA, would result in such liability) under Sections 4201 or 4243 of ERISA
with respect to a Multiemployer Plan; and (iv) neither the Parent, the
Borrower nor any ERISA Affiliate has engaged in a transaction that could be
subject to Sections 4069 or 4212(c) of ERISA.

5.13         Subsidiaries; Equity Interests.  As of the Closing Date, the Parent and the
Borrower have no Subsidiaries other than those specifically disclosed in
Part (a) of Schedule 5.13, and all of the outstanding Equity
Interests in the Restricted Subsidiaries have been validly issued, are fully
paid and nonassessable and are owned by a Loan Party in the amounts specified
on Part (a) of Schedule 5.13 free and clear of all Liens, except
Liens securing the Obligations.  As of
the Closing Date, the Borrower has no equity Investments in any other
corporation or entity other than those specifically disclosed in Part (b)
of Schedule 5.13.  As of the
Closing Date, all of the outstanding Equity Interests in the Borrower have been
validly issued, and are fully paid and nonassessable and are owned by the Loan
Parties reflected on such Schedule in the amounts specified on Part (c) of
Schedule 5.13 free and clear of all Liens, except Liens securing
the Obligations.

5.14         Margin Regulations; Investment Company Act.

(a)           The Borrower is not engaged and will
not engage, principally or as one of its important activities, in the business
of purchasing or carrying margin stock (within the meaning of Regulation U
issued by the FRB), or extending credit for the purpose of purchasing or
carrying margin stock.  Following the
application of the proceeds of each Borrowing or drawing under each Letter of
Credit, not more than 25% of the value of the assets (either of the Borrower
only or of the Parent, the Borrower and their Subsidiaries on a consolidated
basis) will be margin stock.

(b)          None of the Parent, the Borrower, any
Person Controlling the Parent, the Borrower, or any Subsidiary is or is
required to be registered as an “investment company” under the Investment
Company Act of 1940.

5.15         Disclosure. 
The Borrower has disclosed to the Administrative Agent all agreements,
instruments and corporate or other contractual restrictions to which it, the
Parent or any of their Subsidiaries is subject, in each case that would
reasonably be expected to result in a Material Adverse Effect.  No report, financial statement, certificate
or other written information furnished by any Loan Party to the Administrative
Agent or any Lender in connection with the syndication of this transaction,
negotiation of this Agreement or delivered hereunder or under any other Loan
Document (in each case, as modified or supplemented by other information so
furnished) when taken as a whole contains any material misstatement of fact or
omits to state any material fact necessary to make the statements therein, in
the light of the circumstances under which they were made, not misleading; provided
that, with respect to projected financial information, the Borrower represents
only that such information was prepared in good faith based upon assumptions
believed to be reasonable at the time in light of the circumstances when made.

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5.16         Compliance with Laws.  Each of the Parent, the Borrower and each
Subsidiary is in compliance in all material respects with the requirements of
all Laws and all orders, writs, injunctions and decrees applicable to it or to
its properties, except in such instances in which (a) such requirement of
Law or order, writ, injunction or decree is being contested in good faith by
appropriate proceedings diligently conducted or (b) the failure to comply
therewith, either individually or in the aggregate, could not reasonably be
expected to have a Material Adverse Effect. 
Each of the Parent, the Borrower and each Subsidiary is in compliance
with the rules and regulations of the FCC relating to the operation of
television and radio stations, except to the extent that any failure to file or
failure to comply could not reasonably be expected to have a Material Adverse
Effect.

5.17         License Subsidiaries.  Except (i) for Licenses for the States of
Pennsylvania, Louisiana and such other States as agreed to in writing by the
Administrative Agent from time to time, (ii) as consented to by the Agents in
connection with a Permitted Acquisition (for a period of not longer than 45
days or such longer time agreed to by the Administrative Agent), (iii) as
held by an Unrestricted Subsidiary in accordance with the terms hereof, no Loan
Party (other than a License Subsidiary) holds any License issued by the
FCC.  No License Subsidiary (a) has
any Indebtedness (other than the Obligations and Indebtedness owing by a
License Subsidiary to another Loan Party), (b) has any assets other than
FCC Licenses, (c) is a party to or bound by any contract or agreement
other than agreements pursuant to which Loan Parties that are not License
Subsidiaries manage and operate the Stations, (d) conducts any business or
(e) has any employees, and there are no Liens of any nature whatsoever on
any of the property or assets of any License Subsidiary except in favor of the
Administrative Agent, for the benefit of the Lenders.  Each License Subsidiary is a Restricted
Subsidiary, unless designated an Unrestricted Subsidiary in accordance with the
terms of this Agreement and in accordance with the provisions of Section
7.17.

5.18         The Parent.

(a)           Except as otherwise set forth in this
Section 5.18, the Parent has no Indebtedness (other than (i)
pursuant hereto, (ii) certain trade payables reasonably incurred in the
ordinary course of the operation of the Stations and of the Parent’s corporate
headquarters, (iii) pursuant to the Indentures and (iv) pursuant to Section 7.03);

(b)          The Parent has no assets other than
furniture, fixtures, intellectual property and equipment located in its
corporate office and certain other non-material assets not used in the
operation of any Station and the Equity Interests in its Subsidiaries and
contractual rights under contracts described in subsection (c) below;

(c)           Except as otherwise set forth in this
Section 5.18, the Parent is not a party to or bound by any contract
or agreement other than the Station Contracts and other contractual
arrangements entered into in the ordinary course of business consistent with
the restrictions set forth in subsection (d)(iii) below; and

(d)          Except as otherwise set forth in this Section 5.18,
the Parent does not conduct any business other than

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(i)            holding the Equity Interests in the
Borrower,

(ii)           entering into and performing
contracts on behalf of the Borrower and the Subsidiaries in connection with the
ordinary course of operation of the Stations and the Business (the “Station
Contracts”), and

(iii)          entering into and performing contracts
in connection with the corporate office and other corporate overhead items
consistent with past practices.

There are no Liens of any
nature whatsoever on any of the property or assets of the Parent except Liens
permitted by Section 7.01.

5.19         Solvent. 
The Borrower is, and the Parent, the Borrower and their Subsidiaries are
on a GAAP consolidated basis, Solvent.

ARTICLE
VI.

AFFIRMATIVE COVENANTS

So long as any Lender shall have any Commitment
hereunder, any Loan or other Obligation hereunder shall remain unpaid or
unsatisfied, or any Letter of Credit shall remain outstanding, the Borrower and
the Parent shall, and shall (except in the case of the covenants set forth in Sections 6.01,
6.02 and 6.03) cause each Restricted Subsidiary to:

6.01         Financial Statements.  Deliver to the Administrative Agent, in form
and detail satisfactory to the Administrative Agent:

(a)           as soon as available, but in any
event within 90 days after the end of each fiscal year of the Borrower, a consolidated
balance sheet of the Parent (including the accounts of the Borrower and their
Subsidiaries) as at the end of such fiscal year, and the related consolidated
statements of income or operations, shareholders’ equity and cash flows for
such fiscal year, setting forth in each case in comparative form the figures
for the previous fiscal year, all in reasonable detail and prepared in
accordance with GAAP, such consolidated statements to be audited and
accompanied by a report and opinion of one of the “Big Four” certified
accounting firms or another independent certified public accountant of
nationally recognized standing or otherwise reasonably acceptable to the
Agents, which report and opinion (as to the financial statements) shall be
prepared in accordance with generally accepted auditing standards and shall not
be subject to any qualification or exception not reasonably acceptable to the
Administrative Agent; and

(b)          as soon as available, but in any event
within 45 days after the end of each of the first three fiscal quarters of each
fiscal year of the Parent, the following financial statements as of the end of
such fiscal quarter: (i) condensed consolidated balance sheet as of the
fiscal quarter then ended with a comparison to the balance sheet as of the most
recently ended fiscal year; (ii) condensed consolidated statements of
income or operations for the most recently ended quarterly period for such
fiscal year and for the portion of the fiscal year then ended, in comparative
form; and (iii) condensed consolidated statements of cash flows for the
portion of the fiscal year then ended, in comparative form.  The condensed consolidated interim unaudited
financial statements shall be prepared in accordance with GAAP for interim
financial

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information and shall be accompanied by the
certifications required by the rules and regulations of the SEC.

Notwithstanding the foregoing, (i) in the event that
the Parent timely files an Annual Report on Form 10-K for such fiscal year with
the SEC that is made publicly available through EDGAR that meets all the
requirements set forth in Section 6.01(a) preceding other than the
delivery requirement to the Administrative Agent, such filing shall be deemed
to have satisfied such delivery requirement of Section 6.01(a);
(ii) in the event that the Parent timely files a Quarterly Report on Form
10-Q for such fiscal quarter with the SEC that is made publicly available
through EDGAR that meets all the requirements set forth in Section 6.01(b)
preceding other than the delivery requirement to the Administrative Agent, such
filing shall be deemed to have satisfied such delivery requirement of Section
6.01(b); and (iii) so long as the Parent has made filings that satisfy
subsections (i) and (ii) preceding, the Parent and the Borrower shall not have
to satisfy the requirement that such information be in form and detail
satisfactory to the Administrative Agent and the Required Lenders.

6.02         Certificates; Other Information.  Deliver to the Administrative Agent:

(a)           concurrently with the delivery of the
financial statements referred to in Sections 6.01(a) and (b),
a duly completed Compliance Certificate signed by a Responsible Officer of the
Borrower, certifying among other things, as to the Net Investments in each
Unrestricted Subsidiary and the compliance by the Borrower with the financial
covenants described in Section 7.13;

(b)          promptly after any request by either
Agent, copies of any detailed audit reports, management letters or
recommendations submitted to the board of directors (or the audit committee of
the board of directors) of the Parent and the Borrower by independent
accountants in connection with the accounts or books of the Parent, the
Borrower or any Restricted Subsidiary, or any audit of any of them;

(c)           promptly after the same are
available, notice of copies of each annual report, proxy or financial statement
or other report or communication sent to the stockholders of the Parent, and
copies of all annual, regular, periodic and special reports and registration
statements which the Parent or the Borrower may file or be required to file
with the SEC under Section 13 or 15(d) of the Securities Exchange Act of 1934,
and not otherwise required to be delivered to the Administrative Agent pursuant
hereto.  Notwithstanding the foregoing,
in the event that the Parent or the Borrower timely files such filings in
accordance with the requirements of the SEC and such filings are made publicly
available through EDGAR, the Parent and the Borrower shall have no delivery
requirement under this Section 6.02(c);

(d)          promptly after the furnishing thereof,
copies of any notice of default or breach under any of the Senior Subordinated
Notes, other Senior Subordinated Notes Documents or other material debt
securities of any Loan Party or any Subsidiary thereof pursuant to the terms of
any indenture, loan or credit or similar agreement;

(e)           promptly, and in any event within
five Business Days after receipt thereof by any Loan Party or any Subsidiary
thereof, copies of each notice or other correspondence received

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from the SEC (or comparable agency in any
applicable non-U.S. jurisdiction) concerning any investigation or possible
investigation or other inquiry by such agency regarding financial or other
operational results of any Loan Party or any Subsidiary thereof.  Notwithstanding the foregoing, in the event
that such notice or other correspondence is made publicly available through
EDGAR, the Parent and the Borrower shall have no  delivery requirement under this Section 6.02(e);

(f)           promptly upon their becoming
available, the Borrower shall furnish (i) copies of any periodic or
special reports filed by any Loan Party with the FCC or any other federal,
state or local Governmental Authority if such reports indicate any material
change in the ownership of such Loan Party, or any materially adverse change in
the business, operations, affairs or condition of any Loan Party, and
(ii) copies of any material notices and other material communications from
the FCC or any other federal, state or local Governmental Authority which
specifically relate to any Loan Party, any Station or any material License, and
the substance of which relates to a matter that could reasonably be expected to
have a Material Adverse Effect; and

(g)          promptly, such additional information
regarding the business, financial or corporate affairs of the Parent, the
Borrower or any Restricted Subsidiary, or compliance with the terms of the Loan
Documents, as the Administrative Agent or any Lender through the Administrative
Agent may from time to time reasonably request.

Unless made publicly
available as set forth in Section 6.01, documents required to be
delivered pursuant to Section 6.01(a) or (b) or Section 6.02
(to the extent any such documents are included in materials otherwise filed
with the SEC) may be delivered electronically and if so delivered, shall be
deemed to have been delivered on the date (i) on which the Borrower posts such
documents, or provides a link thereto on the Borrower’s website on the
Internet; or (ii) on which such documents are posted on the Borrower’s behalf
on an Internet or intranet website, if any, to which each Lender and the
Administrative Agent have access (whether a commercial, third-party website or
whether sponsored by the Administrative Agent); provided that:  the Borrower shall notify the Administrative
Agent and each Lender (by telecopier or electronic mail) of the posting of any
such documents and provide to the Administrative Agent by electronic mail electronic
versions (i.e., soft copies) of such documents. 
Notwithstanding anything contained herein, in every instance the
Borrower shall be required to provide paper copies of the Compliance
Certificates required by Section 6.02(a) to the Administrative
Agent.  Except for such Compliance
Certificates, the Administrative Agent shall have no obligation to request the
delivery or to maintain copies of the documents referred to above, and in any
event shall have no responsibility to monitor compliance by the Borrower, and
each Lender shall be solely responsible for maintaining its copies of such
documents.

The Borrower and the Parent hereby acknowledge that
(a) the Agents and/or the Arrangers will make available to the Lenders and the
L/C Issuer materials and/or information provided by or at the direction of the
Borrower or the Parent hereunder (collectively, “Borrower Materials”) by
posting the Borrower Materials on IntraLinks or another similar electronic
system (the “Platform”) and (b) certain of the Lenders (each, a “Public Lender”)
may have personnel who do not wish to receive material non-public information
with respect to the Parent, the Borrower or their Affiliates, or the respective
securities of any of the foregoing, and who may be

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engaged in investment and
other market-related activities with respect to such Persons’ securities.  The Borrower hereby agrees that so long as
the Borrower or the Parent is the issuer of any outstanding debt or equity
securities that are registered or issued pursuant to a private offering or is
actively contemplating issuing any such securities it will use commercially
reasonable efforts to identify that portion of the Borrower Materials that may
be distributed to the Public Lenders and that (w) all such Borrower Materials
shall be clearly and conspicuously marked “PUBLIC” which, at a minimum, shall
mean that the word “PUBLIC” shall appear prominently on the first page thereof;
(x) by marking Borrower Materials “PUBLIC,” the Borrower shall be deemed to
have authorized the Agents, the Arrangers, the L/C Issuer and the Lenders to
treat such Borrower Materials as not containing any material non-public
information (although it may be sensitive and proprietary) with respect to the
Borrower, the Parent or any of their securities for purposes of United States
Federal and state securities laws (provided, however, that to the extent such
Borrower Materials constitute Information, they shall be treated as set forth
in Section 10.07); (y) all Borrower Materials marked “PUBLIC” are
permitted to be made available through a portion of the Platform designated “Public
Investor;” and (z) the Agents and the Arrangers shall be entitled to treat any
Borrower Materials that are not marked “PUBLIC” as being suitable only for
posting on a portion of the Platform not designated “Public Investor.”  Notwithstanding anything in this paragraph,
the Borrower shall be under no obligation to mark any Borrower Materials “PUBLIC”.

6.03         Notices. 
Promptly notify the Administrative Agent:

(a)           of the occurrence of any Default;

(b)          of any matter that has resulted or is
reasonably expected to result in a Material Adverse Effect,

(c)           of (i) any dispute, litigation,
investigation, proceeding or suspension between the Parent, the Borrower or any
Subsidiary and any Governmental Authority that could reasonably be expected to
result in a Material Adverse Effect; (ii) the commencement of, or any
material development in, any litigation or proceeding affecting the Parent, the
Borrower or any Subsidiary, including pursuant to any applicable Environmental
Laws, that could reasonably be expected to result in a Material Adverse Effect;
(iii) any material admonition, censure or adverse citation or order by the
FCC or any other Governmental Authority or regulatory agency that could
reasonably be expected to result in a Material Adverse Effect; or (iv) any
competing application, petition to deny or other opposition to any license
renewal application filed by the Borrower or any of its Subsidiaries with the
FCC that would reasonably be expected to result in a Material Adverse Effect,
it being understood that, no notice will be required in connection with any
litigation, proceeding or filing instituted, requested or made by a repeat
nuisance filer and their affiliates, agents and representatives; and

(d)          of the occurrence of any ERISA Event
that could reasonably be expected to result in a Material Adverse Effect.

Each notice pursuant to this Section shall be
accompanied by a statement of the Borrower setting forth details of the
occurrence referred to therein and stating what action the Borrower has taken
and proposes to take with respect thereto. 
Each notice pursuant to Section 6.03(a) shall

 66
 

describe each material
provision of this Agreement and the Loan Documents that may be materially
implicated by the occurrence referred to therein (if any) to the knowledge of
the Responsible Officers of the Borrower.

6.04         Payment of Certain Obligations.  Pay and discharge or otherwise satisfy at or
before maturity or before they become delinquent, as the case may be, all
material tax liabilities, assessments and governmental charges (other than
Indebtedness) or levies upon it or its properties or assets, unless the same
are being contested in good faith by appropriate proceedings diligently
conducted and adequate reserves if and to the extent required in accordance
with GAAP are being maintained by the Parent, the Borrower or such Subsidiary.

6.05         Preservation of Existence, Etc.  (a) Preserve, renew and maintain in full
force and effect the Borrower’s, the Parent’s and each Restricted Subsidiary’s
legal existence and good standing under the Laws of the jurisdiction of its
organization except in a transaction permitted by Section 7.04 or 7.05;
and (b) preserve or renew all of its registered patents, trademarks, trade
names and service marks, the non-preservation of which could reasonably be
expected to have a Material Adverse Effect.

6.06         Maintenance of Properties.  (a) Maintain, preserve and protect all of its
material properties and equipment necessary in the operation of its business in
good working order and condition, ordinary wear and tear excepted; and (b) make
all necessary repairs thereto and renewals and replacements thereof, except in
each case of (a) and (b) preceding where the failure to do so could not
reasonably be expected to have a Material Adverse Effect.

6.07         Maintenance of Insurance.  Maintain with financially sound and reputable
insurance companies not Affiliates of the Parent or the Borrower, insurance
with respect to their properties against loss or damage of the kinds and in the
amounts consistent with prudent business practice, and carry such other
insurance as is consistent with prudent business practice (it being understood
that self-insurance shall be permitted to the extent consistent with prudent
business practice).

6.08         Compliance with Laws.  Comply in all material respects with the
requirements of all Laws and all orders, writs, injunctions and decrees
applicable to it or to its business or property, except in such instances in
which (a) such requirement of Law or order, writ, injunction or decree is being
contested in good faith by appropriate proceedings diligently conducted; or
(b) the failure to comply therewith could not reasonably be expected to
have a Material Adverse Effect.

6.09         Books and Records.  (a) 
Maintain proper books of record and account, in which entries in
conformity with GAAP consistently applied shall be made of all financial
transactions and matters involving the assets and business of the Parent
(including the accounts of the Borrower or such Subsidiary, as the case may
be); and (b) maintain such books of record and account in conformity with all
applicable requirements of any Governmental Authority having regulatory
jurisdiction over the Parent (including the accounts of the Borrower or such
Subsidiary, as the case may be), in each case of (a) and (b) preceding, except
to the extent that noncompliance therewith could reasonably be expected to have
Material Adverse Effect.

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6.10         Inspection Rights.  Permit representatives and independent
contractors of the Administrative Agent and each Lender at such parties’ own
expense (coordinated through the Administrative Agent) to visit and inspect any
of its properties, to examine its corporate, financial and operating records,
and make copies thereof or abstracts therefrom, and to discuss its affairs,
finances and accounts with its directors, officers, and independent public
accountants, all at reasonable times during normal business hours, upon
reasonable advance notice to the Borrower; provided, however,
notwithstanding the foregoing, that when an Event of Default exists the
Administrative Agent or any Lender (or any of their respective representatives
or independent contractors) may do any of the foregoing at the expense of the
Borrower at any time during normal business hours and without advance notice.

6.11         Use of Proceeds.  Use the proceeds of the Credit Extensions
(i) to refinance existing indebtedness under the Existing Credit Agreement
and under the Senior Subordinated Notes, (ii) for capital expenditures, (iii) for
working capital; (iv) for repurchases of Equity Interests and to make
dividends as permitted by the terms of this Agreement, (v) to finance
Permitted Acquisitions and Investments, (vi) to pay fees and expenses
related to the transactions contemplated hereby, and (vii) for other
general corporate purposes not in contravention of any Law or of any Loan
Document.

6.12         Additional Guarantors.  Notify the Administrative Agent at the time
that any Person becomes a Domestic Subsidiary and whether such Subsidiary is an
Unrestricted Subsidiary, and promptly thereafter (and in any event within 30
days or such longer period as the Administrative Agent may agree), cause such
Person that is not designated an Unrestricted Subsidiary to (a) become a
Guarantor by executing and delivering to the Administrative Agent a counterpart
of the Guaranty or such other document as the Administrative Agent shall deem
appropriate for such purpose, and (b) deliver to the Administrative Agent
documents of the types referred to in clauses (iii) and (iv) of Section 4.01(a)
and, if requested by the Administrative Agent (provided that no such request
shall be made with respect to any additional Guarantor (and its related License
Subsidiary, if any) if such additional Guarantor (together with its related
License Subsidiary) would not have been a Material Subsidiary if it had been
owned by the Borrower for the most recently completed 12 month period preceding
the date it became a Subsidiary of the Borrower) favorable opinions of counsel
to such Person (which shall cover, among other things, the legality, validity,
binding effect and enforceability of the documentation referred to in clause
(a)), all in form, content and scope substantially similar to the corporate and
FCC opinions (if appropriate) delivered on the Closing Date or otherwise
reasonably satisfactory to the Administrative Agent, provided  that,
in each case, to the extent such new Subsidiary is created solely for the
purpose of consummating a merger transaction pursuant to an Acquisition
permitted by this Agreement, and such new Subsidiary at no time holds any
material assets or liabilities (other than liabilities under the merger
agreement, and other than any merger consideration contributed to it
contemporaneously with the closing of such merger transaction), such new
Subsidiary shall not be required to take the actions set forth above until the
respective Acquisition is consummated (at which time the surviving entity of
the respective merger transaction shall be required to so comply within seven
Business Days) and, a new Domestic Subsidiary shall not be subject to the
provisions of this Section 6.12 if substantially all of the assets of such
new Subsidiary consist of stock of one or more Subsidiaries that are not
Domestic Subsidiaries.

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6.13         FCC Consents.  The Parent and the Borrower acknowledge that
certain transactions contemplated by this Agreement or the Loan Documents, and
certain actions which may be taken by the Administrative Agent or the Lenders
in the exercise of their rights under this Agreement or the Loan Documents, may
require the consent of the FCC.  If
counsel to the Administrative Agent reasonably determines that the consent of
the FCC is required in connection with the execution, delivery and performance
of any of the aforesaid documents or any documents delivered to the
Administrative Agent or the Lenders in connection therewith or as a result of
any action which may be taken pursuant thereto, then during the continuance of
an Event of Default the Parent and the Borrower, at their sole cost and
expense, shall use their commercially reasonable efforts, and shall cause the
Restricted Subsidiaries to use their commercially reasonable efforts, to secure
such consent and to cooperate with the Administrative Agent and the Lenders in
any action commenced by the Administrative Agent or the Lenders to secure such
consent.  Neither the Parent nor the
Borrower shall take any action, and they shall not permit any of the
Subsidiaries to take any action, that interferes with the exercise or
completion of the efforts to obtain the consent of the FCC as set forth above, provided
that, notwithstanding the foregoing, the Borrower, the Parent and each
of their Subsidiaries shall at all times comply with the Communications Act and
all FCC Regulations.

6.14         Collateral. 
The Parent and the Borrower shall, and shall cause each Restricted
Subsidiary to, do all things necessary or reasonably requested by the
Administrative Agent to preserve and perfect the Liens of the Administrative Agent,
for the benefit of the Lenders, arising pursuant hereto and pursuant to the
Pledge Agreements as first Liens, and to insure that the Administrative Agent,
for the benefit of the Lenders, has a perfected prior and first Lien on all of
the Equity Interests of the Borrower and each of its direct and indirect
Domestic Subsidiaries and the direct and indirect Domestic Subsidiaries of the
Borrower and the Parent; provided however that only 65% of the Equity Interests
of any Domestic Subsidiary substantially all of the assets of which consist of
stock of one or more Subsidiaries that are not Domestic Subsidiaries shall be
required to be pledged as collateral under this Section 6.14.

6.15         Further Assurances.  Promptly upon request by the Administrative
Agent, (a) correct any material defect or error that may be discovered in
any Loan Document or in the execution, acknowledgment, filing or recordation
thereof, and (b) do, execute, acknowledge, deliver, record, re-record, file,
re-file, register and re-register any and all such further acts, deeds,
certificates, assurances and other instruments as the Administrative Agent may
reasonably require from time to time in order to (i) carry out more effectively
the purposes of the Loan Documents, (ii) to the fullest extent permitted by
applicable law, subject any Loan Party’s properties, assets, rights or
interests to the Liens now or hereafter intended to be Collateral, (iii)
perfect and maintain the validity, effectiveness and priority of any of the
security interests, Loan Documents and any of the Liens intended to be created
thereunder and (iv) assure, convey, grant, assign, transfer, preserve,
protect and confirm more effectively unto the Administrative Agent on behalf of
the Lenders the rights granted or now or hereafter intended to be granted to
the Administrative Agent on behalf of the Lenders under any Loan Document or
under any other instrument executed in connection with any Loan Document to
which any Loan Party or any of its Restricted Subsidiaries is or is to be a party,
and cause each of its Subsidiaries to do so.

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ARTICLE
VII.

NEGATIVE COVENANTS

So long as any Lender shall have any Commitment
hereunder, any Loan or other Obligation hereunder shall remain unpaid or
unsatisfied, or any Letter of Credit shall remain outstanding, the Borrower and
the Parent shall not, nor shall they permit any Restricted Subsidiary to,
directly or indirectly:

7.01         Liens.  Create, incur,
assume or suffer to exist any Lien upon any of its property, assets or
revenues, whether now owned or hereafter acquired, other than the following:

(a)           Liens
pursuant to any Loan Document;

(b)           Liens
existing on the date hereof and listed on Schedule 7.01 and any
renewals or extensions thereof, provided that (i) the property covered
thereby is not changed, (ii) the amount secured or benefited thereby is not
increased, (iii) the direct or any contingent obligor with respect thereto is
not changed, and (iv) any renewal or extension of the obligations secured or
benefited thereby is permitted by Section 7.03(b),  or Liens
to which the Required Lenders have consented in writing;

(c)           Liens
for taxes or assessments and similar charges, which are either not delinquent
or being contested diligently and in good faith by appropriate proceedings, and
as to which the applicable Loan Party has set aside any reserves required in
accordance with GAAP on its books;

(d)           statutory
Liens, such as mechanic’s, materialmen’s, warehouseman’s, landlord’s,
artisan’s, worker’s, contractor’s, carrier’s or other like Liens,
(i) incurred in good faith in the ordinary course of business,
(ii) which are either not delinquent or are being contested diligently and
in good faith by appropriate proceedings and (iii) as to which the
applicable Loan Party has set aside any reserves on its books required in
accordance with GAAP or bonded satisfactorily to the Administrative Agent;

(e)           encumbrances
consisting of zoning restrictions, easements, licenses, reservations,
provisions, covenants, conditions, waivers, restrictions on the use of real
property or minor irregularities of title, provided that none of such
encumbrances materially impairs the operation of the applicable Loan Party’s
business;

(f)            Liens
in respect of judgments or awards with respect to which any Loan Party is, in
good faith, prosecuting an appeal or proceeding for review and with respect to
which a stay of execution upon such appeal or proceeding for review has been
secured, and as to which judgments or awards such Loan Party has established
any reserves on its books required in accordance with GAAP or has bonded in a
manner satisfactory to the Administrative Agent;

(g)           pledges
or deposits made in the ordinary course of business to secure payment of
worker’s compensation, or to participate in any fund in connection with
worker’s compensation, unemployment insurance, old-age pensions or other social
security programs;

(h)           Liens
granted to secure the performance of bids, tenders, contracts, leases, public
or statutory obligations, surety, customs, appeal and performance bonds and
other similar obligations and not incurred in connection with the borrowing of
money, the obtaining of advances or the payment of the deferred purchase price
of any property; and

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(i)            so
long as there exists no Default both before and after giving effect to each such
incurrence, Liens in the aggregate securing up to an aggregate outstanding
amount of $50,000,000 of Indebtedness of the Borrower, the Parent and the
Restricted Subsidiaries (except License Subsidiaries); provided that
(i) such Liens may only secure Indebtedness of the Parent, the Borrower
and the Restricted Subsidiaries in respect of capital leases and similar
obligations, and purchase money obligations for fixed or capital assets, and
(ii) such Liens do not at any time encumber any property other than the
property financed by such Indebtedness.

7.02         Investments.  Make any Investments, except:

(a)           Investments held by the Parent, the
Borrower or such Subsidiary in the form of cash or cash equivalents;

(b)          advances to officers, directors and
employees of the Parent, the Borrower and their Subsidiaries in an aggregate
amount not to exceed $5,000,000 at any time outstanding, for travel,
entertainment, relocation and analogous ordinary business purposes in
accordance with past practices and as permitted by applicable Law;

(c)           Investments of the Parent and the
Borrower in any Guarantors and Investments of any Subsidiary in the Borrower or
in another Restricted Subsidiary;

(d)          Investments consisting of extensions
of credit in the nature of accounts receivable or notes receivable arising from
the grant of trade credit in the ordinary course of business, and Investments
received in satisfaction or partial satisfaction thereof from financially
troubled account debtors to the extent reasonably necessary in order to prevent
or limit loss;

(e)           Guarantees permitted by Section
7.03;

(f)           so long as there exists no Default
both before and after giving effect to each such Investment as demonstrated in
the most recently completed compliance certificate previously delivered, the
Borrower may make Investments, including Investments in Unrestricted
Subsidiaries, provided  that Investments in Unrestricted
Subsidiaries must only be made in accordance with the provisions of Section
7.17; and

(g)          Investments permitted by Section
7.17.

7.03         Indebtedness.  Create, incur, assume or suffer to exist any
Indebtedness, except:

(a)           Indebtedness under the Loan
Documents;

(b)          Indebtedness outstanding on the date
hereof and listed on Schedule 7.03 and any refinancings,
refundings, renewals or extensions thereof; provided that the amount of
such Indebtedness is not increased at the time of such refinancing, refunding,
renewal or extension except by an amount equal to a reasonable premium or other
reasonable amount paid, and fees and expenses reasonably incurred, in
connection with such refinancing and by an amount equal to any existing
commitments unutilized thereunder;

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(c)           Guarantees of (i) the Guarantors in
respect of Indebtedness otherwise permitted hereunder subordinated to the
Obligations on terms substantially similar to the subordination terms of the
guarantees in the Indenture and the Senior Subordinated Notes Documents, and
(ii) the Borrower in respect of Indebtedness otherwise permitted hereunder
of the Borrower or any other Guarantor;

(d)          obligations (contingent or otherwise)
of the Parent, the Borrower or any Subsidiary (other than License Subsidiaries)
existing or arising under any Swap Contract, provided that such
obligations are (or were) entered into by such Person in the ordinary course of
business for the purpose of directly mitigating risks associated with
liabilities, commitments, investments, assets, or property held or reasonably
anticipated by such Person, or changes in the value of securities issued by
such Person, and not for purposes of speculation or taking a “market view;”

(e)           so long as there exists no Event of
Default or payment Default under Section 8.01(a) both before and
after giving effect to each such incurrence the Borrower, the Parent and the
Restricted Subsidiaries (except License Subsidiaries) may incur Indebtedness in
respect of capital leases and similar obligations, and purchase money
obligations for fixed or capital assets in an aggregate amount not to exceed
$50,000,000 at any one time outstanding (so long as such Indebtedness is only
secured to the extent provided in Section 7.01(i));

(f)           so long as there exists no Event of
Default or payment Default under Section 8.01(a) both before and
after giving effect to each such incurrence, the Borrower and the Parent may
incur additional unsecured Indebtedness from time to time provided that,
(A) no such additional Indebtedness has a maturity earlier than six months
after the later of the Maturity Date or any maturity of any Incremental
Facility, (B) no such additional Indebtedness has any scheduled principal
payments, prepayments, redemptions, retirements, acquisition of principal,
cancellations, repurchases, sinking funds or other principal payments prior to
the later of the Maturity Date or any maturity of any Incremental Facility and
(C) if the principal amount of such Indebtedness is in excess of
$20,000,000, the Borrower shall have delivered to the Administrative Agent
evidence in form reasonably satisfactory to the Administrative Agent of pro
forma compliance both before and after giving effect to the incurrence of such
additional Indebtedness;

(g)          so long as there exists no Event of
Default or payment Default under Section 8.01(a) both before and
after giving effect to each such incurrence, the Restricted Subsidiaries may
incur additional unsecured Indebtedness up to an aggregate amount at any one
time outstanding of $50,000,000 for all Restricted Subsidiaries minus the
aggregate amount of secured debt incurred by any of the Restricted Subsidiaries
permitted by subsection (e) preceding; provided that, (A) no
such additional Indebtedness has a maturity earlier than six months after the
later of the Maturity Date or any maturity of any Incremental Facility,
(B) no such additional Indebtedness has any scheduled principal payments,
prepayments, redemptions, retirements, acquisition of principal, cancellations,
repurchases, sinking funds or other principal payments prior to the later of
the Maturity Date or any maturity of any Incremental Facility and (C) if
the principal amount of such Indebtedness is in excess of $20,000,000, the
Borrower shall have delivered to the Administrative Agent evidence in form
reasonably satisfactory to the

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Administrative Agent of pro forma compliance
both before and after giving effect to the incurrence of such additional
Indebtedness; and

(h)          Indebtedness incurred by the Borrower
in the ordinary course of business in an amount not to exceed $25,000,000
outstanding at any one time.

7.04         Fundamental Changes.  Merge, dissolve, liquidate, consolidate with
or into another Person, or Dispose of (whether in one transaction or in a
series of transactions) all or substantially all of its assets (whether now
owned or hereafter acquired) to or in favor of any Person, except that, so long
as no Default exists or would result therefrom:

(a)           any Subsidiary may merge with (i) the
Borrower, provided that the Borrower shall be the continuing or
surviving Person, or (ii) any one or more other Restricted Subsidiaries, provided
that when any Guarantor is merging with another Subsidiary, the Guarantor shall
be the continuing or surviving Person;

(b)          any Restricted Subsidiary may Dispose
of all or substantially all of its assets (upon voluntary liquidation or
otherwise) to the Borrower or to another Restricted Subsidiary; provided
that if the transferor in such a transaction is a Guarantor, then the
transferee must either be the Borrower or a Guarantor;

(c)           Dispositions under Section 7.05
may be consummated; and

(d)          any Acquisition permitted by Section
7.07 may be structured as a merger, consolidated or amalgamation.

7.05         Dispositions.  Make any Disposition of any material portion
of the assets of the Parent, the Borrower or any of their Restricted
Subsidiaries, except:

(a)           Dispositions of obsolete or worn out
property, whether now owned or hereafter acquired, in the ordinary course of
business;

(b)          Dispositions of inventory in the
ordinary course of business;

(c)           Dispositions of equipment or real
property to the extent that (i) such property is exchanged for credit against
the purchase price of similar replacement property or (ii) the proceeds of such
Disposition are reasonably promptly applied to the purchase price of such
replacement property;

(d)          Dispositions of property by any
Restricted Subsidiary to the Borrower or to a Restricted Subsidiary; provided
that if the transferor of such property is a Guarantor, the transferee thereof
must either be the Borrower or a Guarantor;

(e)           Dispositions permitted by Section 7.04;

(f)           in addition to subsection (g)
following, so long as no Default shall exist or would result from each such
Disposition, (i) Dispositions of property in connection with Like Kind
Exchanges for a Station acquired in connection with a Permitted Acquisition in
accordance with

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the terms of Section 7.07 and
(ii) Dispositions of property in connection with Station swaps or exchanges, in
each case of Stations acquired in connection with a Permitted Acquisition in
accordance with the terms of Section 7.07, provided that,
notwithstanding the foregoing, if at any time in connection with a (A) Like
Kind Exchange after a property has been Acquired or Disposed of by the Borrower
or any of its Subsidiaries in connection with such Like Kind Exchange there
shall exist a Default, such Loan Party shall be permitted to consummate the
Like Kind Exchange despite the existence of such Default, and (B) swap or
exchange described in subsection (ii) preceding, after a property has been
Acquired or Disposed of by the Borrower or any of its Subsidiaries in
connection with such swap or exchange there shall exist a Default, and such
Loan Party has entered into a contractual arrangement binding such Loan Party
to consummate such swap or exchange with an unaffiliated third party prior to
the existence of such Default, such Loan Party shall be permitted to consummate
such swap or exchange despite the existence of such Default; and

(g)          in addition to subsection (f)
preceding, so long as (i) no Default shall exist or would result from each such
Disposition, (ii) the Borrower has complied with the provisions of Section 2.04(b)(ii)
with respect to each such Disposition and (iii) after giving effect to
each such Disposition, at least 80% of Consolidated Operating Cash Flow, on a
pro forma basis, will be derived from the Business, the Borrower may make
Dispositions of assets representing not more than 25% of Consolidated Operating
Cash Flow (measured for the most recently completed four fiscal quarters) in
the aggregate for all such asset Dispositions over the term of this Agreement.  For the avoidance of doubt, operating cash
flow from assets sold shall be calculated based on the operating cash flow for
the four fiscal quarters preceding the date of sale of the assets sold for all
assets sold cumulatively from the Closing Date through the date of
determination, measured against Consolidated Operating Cash Flow for the most
recently completed four fiscal quarters of the Parent.

7.06         Restricted Payments.  Declare or make, directly or indirectly, any
Restricted Payment, provided  that,

(a)           each Subsidiary may make Restricted
Payments to the Borrower, the Guarantors and any other Person that owns an
Equity Interest in such Subsidiary, ratably according to their respective
holdings of the type of Equity Interest in respect of which such Restricted
Payment is being made;

(b)          the Borrower and each Restricted
Subsidiary may declare and make dividend payments or other distributions
payable to the Parent, the Borrower or another Restricted Subsidiary that is a
Guarantor solely in the common stock or other common Equity Interests of such
Person;

(c)           so long as there exists no Default
both before and after giving effect to each such payment as demonstrated in the
most recently completed Compliance Certificate previously delivered in
accordance with the terms of Section 6.02(a), the Borrower and the
Parent may declare and pay cash dividends and make stock redemptions,
repurchases and capital distributions to Parent, or Parent’s stockholders;

(d)

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(i)            Borrower may declare and pay
dividends up to the Parent in an aggregate amount over the term of this
Agreement not to exceed $10,000,000, provided that, such dividends may only be
declared and paid so that such funds can be used to make payments relating to
the settlement of and expenses relating to, legal or administrative proceedings
of the Parent, the Borrower or the Restricted Subsidiaries that are uninsured,
and

(ii)           in addition to the amount permitted
by subsection (i) preceding, so long as there exists no Default both before and
after giving effect to each such payment as demonstrated in the most recently
completed Compliance Certificate previously delivered in accordance with the
terms of Section 6.02(a), the Borrower may declare and pay dividends up
to the Parent; provided that, such dividends may only be declared and paid
(A) so that such funds can be used to make payments relating to the
settlement of and expenses relating to, legal or administrative proceedings of
the Parent, the Borrower or the Restricted Subsidiaries that are uninsured and
(B) with five Business Days prior written notice to the Administrative
Agent (or such lesser notice as may be agreed to among the Borrower and the
Administrative Agent); and

(e)           the Borrower may declare and pay
dividends to Parent to permit Parent to (i) pay actual cash taxes payable by
the Parent, (ii) purchase Parent’s common stock or common stock options
from present or former officers or employees of Parent, the Borrower or any
Subsidiary upon the death, disability or termination of employment of such
officer or employee, (iii) pay other corporate overhead expenses in an
amount not to exceed $50,000,000 per fiscal year of the Parent, and (iv) pay
amounts owed under Station Contracts.

7.07         Acquisitions.  Make any Acquisitions, except so long as
there exists no Default both before and after giving effect to each such
Acquisition, make Permitted Acquisitions, so long as

(a)           the Borrower shall be in pro forma
compliance with the financial covenants set forth in Section 7.13
both before and after giving effect to each such Permitted Acquisition, and
each consummation of a Permitted Acquisition by the Borrower shall constitute a
representation by the Borrower that it is in such pro forma compliance with the
financial covenants set forth in Section 7.13;

(b)          except with respect to Acquisitions of
an Unrestricted Subsidiary, the Borrower shall have given the Administrative
Agent prior written notice regarding each Permitted Acquisition with a cash
consideration of $50,000,000 or more;

(c)           except with respect to Acquisitions
of an Unrestricted Subsidiary, with respect to each Permitted Acquisition with
a cash consideration of $200,000,000 or more, the Borrower shall have delivered
to the Administrative Agent:

(i)            within five days prior to the
consummation of such Acquisition (or such lesser time as agreed to by the
Agents), calculations demonstrating on a pro forma basis the Borrower’s pro
forma compliance with the financial covenants set

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forth in Section 7.13, all in
such detail and in such form as is reasonably acceptable to the Agents; and

(ii)           within five days prior to the
consummation of such Acquisition (or such lesser time as agreed to by the
Agents), projections for the Borrower for a period of the lesser of five years
and the maturity of the Loans hereunder after the closing of such Acquisition
(giving effect to such Acquisition) and showing the source of financing for
such Acquisition, all in such detail and in such form as is reasonably
acceptable to the Agents; and

(d)          except with respect to Acquisitions of
an Unrestricted Subsidiary, with respect to each Permitted Acquisition
consummated under this Section 7.07, the Borrower shall have
complied with each of the following:

(i)            except as permitted by Section 5.17,
all FCC Licenses acquired in connection with each such Acquisition shall be
transferred promptly upon consummation of such Acquisition to a License
Subsidiary;

(ii)           with respect to Permitted
Acquisitions with a cash consideration in excess of $100,000,000, unless the
Borrower reasonably expects that the Final Order will be granted
notwithstanding the filing of such objection or filing described below, the FCC
consent to the assignment of the FCC Licenses relating to the Stations being
acquired pursuant to such Permitted Acquisition at such time (the “FCC Consent”)
shall have become a Final Order unless (i) no filing shall have been made
with the FCC that pertains to or becomes associated with any request for
consent to the assignment of any of the FCC Licenses being acquired pursuant to
such Permitted Acquisition, except for filings made by repeat nuisance filers
(or their affiliates, agents or representatives) that have made a filing on
multiple occasions against the Borrower or the Parent, or any Subsidiary of
either of them, which such filing would not reasonably be expected to prevail (“Nuisance
Filing”), or (ii) if any such filing shall have been made other than a
Nuisance Filing, the Borrower shall have delivered to the Administrative Agent
and the Lenders an opinion of the Borrower’s FCC counsel in form and substance
reasonably satisfactory to the Administrative Agent with respect to the effect
of such filing;

(iii)          the Parent, the Borrower or the
applicable Subsidiary shall have granted a prior and first Lien priority
interest in, and pledged to the Administrative Agent on behalf of the Lenders,
all of the Equity Interests of each such new Domestic Subsidiary acquired in
connection with a Permitted Acquisition hereunder as additional collateral for
the Obligations to be held by the Administrative Agent in accordance with the
terms of the Parent/Borrower Pledge Agreement or the Subsidiary Pledge
Agreement, and executed and delivered to the Administrative Agent all such
documentation for such pledge (including, a supplement to the Subsidiary Pledge
Agreement, original stock certificates and duly executed stock powers, as
applicable) as, in the reasonable opinion of the

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Administrative Agent, is required to perfect
or protect such Lien and grant a prior and first Lien; and

(iv)          the Borrower shall have delivered to
the Administrative Agent evidence reasonably satisfactory to the Administrative
Agent to the effect that all material approvals, consents or authorizations
required in connection with such Acquisition (including the formation of any
License Subsidiary and the transfer of FCC Licenses to a License Subsidiary)
from any Licensing Authority or other Governmental Authority shall have been
obtained, and such opinions as the Administrative Agent may reasonably request
as to the Liens granted to the Administrative Agent, for the benefit of the
Lenders in the Equity Interest, as required pursuant to this Section, as to any
required regulatory approvals for such Acquisition and as to such other matters
as the Administrative Agent may reasonably request.

7.08         Change in Nature of Business.  Engage in any material line of business
substantially different from the Business.

7.09         Transactions with Affiliates.  Enter into any transaction of any kind with
any Affiliate of the Parent or the Borrower, whether or not in the ordinary course
of business, other than on fair and reasonable terms substantially as favorable
to the Parent, the Borrower or such Restricted Subsidiary as would be
obtainable by the Parent, the Borrower or such Restricted Subsidiary at the
time in a comparable arm’s length transaction with a Person other than an
Affiliate, provided that the foregoing restriction shall not apply to
(a) transactions between or among the Borrower and any of the Restricted
Subsidiaries that are Guarantors, or (b) between and among Restricted
Subsidiaries that are Guarantors, (c) Investments permitted by Section 7.17,
and (c) Restricted Payments permitted by Section 7.06.  For the avoidance of doubt, this Section
7.09 shall not apply to employment arrangements with, and payments of
compensation or benefits to or for the benefit of, management.

7.10         Negative Pledge Clauses.  Enter into any new contractual agreement,
arrangement or License containing a negative pledge clause or otherwise
restricting or prohibiting the Parent, the Borrower and/or their Restricted
Subsidiaries from creating or granting Liens on their property and/or assets
(other than on or in any such contractual agreement, arrangement or License),
except (a) in connection with Indebtedness permitted to be issued and secured
under Section 7.01(i) and 7.01(j), and (b) to the
extent the Obligations are expressly permitted to be fully secured
notwithstanding such restriction or prohibition (either senior to or ratably
with such other Indebtedness related to such restriction or prohibition, if
such restriction or prohibition is related to the issuance of Indebtedness).

7.11         Use of Proceeds.  Use the proceeds of any Credit Extension,
whether directly or indirectly to purchase or carry margin stock (within the
meaning of Regulation U of the FRB) or to extend credit to others for the
purpose of purchasing or carrying margin stock or to refund indebtedness
originally incurred for such purpose.

7.12         Amendment of Material Documents and Agreements.  Amend, modify or supplement (a) Organization
Documents of the Parent, the Borrower or any Material Subsidiary,

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unless
required by law, in any manner that is materially adverse to the interests of
the Lenders (as may be reasonably determined by the Agents) or (b) the
Indenture and the other Subordinated Notes Documents, in any manner that is
materially adverse to the interests of the Lenders (as may be reasonably
determined by the Agents).  The Parent
and the Borrower shall promptly provide copies of any such amendments,
modifications or supplements to the Administrative Agent.

7.13         Financial Covenants.

(a)           Consolidated Interest Coverage
Ratio.  Permit the Consolidated
Interest Coverage Ratio as of the last day of any fiscal quarter of the
Borrower to be less than 2.00 to 1.00.

(b)           Consolidated Leverage Ratio.  Permit the Consolidated Leverage Ratio as of
the last day of any fiscal quarter to be greater than 6.00 to 1.00.

7.14         License
Subsidiaries.  Except as set
forth on Schedule 5.17 or permitted by the terms of Section 5.17,
permit any Subsidiary (other than a License Subsidiary) to hold any FCC
Licenses, or permit any License Subsidiary to be an Unrestricted Subsidiary,
except strictly in accordance with the terms hereof.  The Borrower shall not permit any License
Subsidiary to (a) incur, create, assume or permit to exist any
Indebtedness other than the Obligations and Indebtedness owing by a License
Subsidiary to any other Loan Party, (b) incur, create, assume or permit to
exist any Lien of any nature whatsoever on any property or assets now owned or
hereafter acquired by it except (i) in favor of the Administrative Agent, for
the benefit of the Lenders and (ii) subordinated guaranties permitted by Section
7.03, (c) make any capital expenditures, (d) acquire any assets
other than the Licenses, (e) conduct any business, or (f) hire or engage
any employees.  No License Subsidiary
shall be an Unrestricted Subsidiary unless all entities (i) operating and (ii)
owning a substantial amount or the related Station’s assets are also
Unrestricted Subsidiaries.

7.15         Senior Subordinated Notes.  Make any interest or principal
payment on the Senior Subordinated Notes or other subordinated Indebtedness
during the existence of a payment Default or Event of Default.  Upon the occurrence of an Event of Default, the
Borrower and the Parent shall immediately, upon the written request of the
Administrative Agent, notify the Trustee under the Indenture of such
occurrence.  Upon the occurrence of any
breach default or event of default under the Indenture or any other Senior
Subordinated Notes Documents, the Parent and the Borrower shall promptly notify
the Administrative Agent.  The Parent and
the Borrower shall take all actions necessary under the Indenture to cause the
Obligations to be Designated Senior Indebtedness (as that term is defined in
the Indenture) at all times and for all purposes of the Indenture and the
Senior Subordinated Notes.

7.16         Sale and Leaseback Transactions.  Enter into any arrangement whereby the
Parent, the Borrower, or any Restricted Subsidiary sells or transfers any of
its assets, and thereafter rents or leases such assets, provided that,
so long as the there exists no Default both before and after giving effect to
this transaction and the Borrower is otherwise in compliance with the
provisions of Section 7.05, the Borrower, the Parent and their
Restricted Subsidiaries

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may consummate
sales and leasebacks aggregating not more than $15,000,000 in gross sales
proceeds for all such transactions over the term of this Agreement.

7.17         Unrestricted Subsidiaries.  Invest (whether in cash, contribution of
assets or equity interests or otherwise, provided that the value of the assets
and equity interests shall be determined to be the fair market value of such
assets and equity interests on the date of each such Investment) in any
Unrestricted Subsidiary or to create any Unrestricted Subsidiary, or do any of
the foregoing with respect to any direct or indirect subsidiary of any
Unrestricted Subsidiary, in an amount which, in the aggregate at any one time
outstanding for all Unrestricted Subsidiaries, exceeds $250,000,000 in the
amount of the Net Investments by the Parent, the Borrower and their Restricted
Subsidiaries, provided that, to the extent that any such Unrestricted
Subsidiary becomes a Restricted Subsidiary and (i) becomes a Guarantor and (ii)
has 100% of its Equity Interests pledged to secure the Obligations and
otherwise complies with the requirements for becoming Restricted Subsidiaries
at the time, then the preceding $250,000,000 limitation (as adjusted through
the date of determination) shall be reinstated to the extent of the Investment
by the applicable Loan Party in such Unrestricted Subsidiary, and such
Unrestricted Subsidiary shall thereafter no longer be included in the
definition of Unrestricted Subsidiaries. 
For the avoidance of doubt, the only manner in which any portion of the
$250,000,000 limitation for Unrestricted Subsidiaries may be reinstated is (x)
for an Unrestricted Subsidiary to become a Restricted Subsidiary, execute a
Guaranty and have 100% of the Equity Interests in such Unrestricted Subsidiary
pledged to secure the Obligations and (y) partial replenishment from time to
time as cash is received by the Borrower or its Restricted Subsidiaries in
accordance with the definition of Net Investments.  The Parent, the Borrower and the Restricted
Subsidiaries will (A) not conduct any business with the Unrestricted
Subsidiaries, other than on fair and reasonable terms substantially as
favorable (or more favorable) to the Parent, the Borrower or such Restricted
Subsidiary as would be obtainable by the Parent, the Borrower or such
Restricted Subsidiary at the time in a comparable arm’s length transaction with
a Person other than an Unrestricted Subsidiary or an Affiliate, (B) keep
all deposit accounts, investment accounts and other accounts of the
Unrestricted Subsidiaries segregated and apart from the accounts of the
Borrower, the Parent and the Restricted Subsidiaries, (C) use reasonable
methods to (I) not commingle the business, employees and assets of the
Parent, the Borrower and the Restricted Subsidiaries (other than servicing
arrangements on fair and reasonable terms substantially as favorable (or more
favorable) to the Parent, the Borrower or such Restricted Subsidiary as would
be obtainable by the Parent, the Borrower or such Restricted Subsidiary at the
time in a comparable arm’s length transaction with a Person other than an
Unrestricted Subsidiary or an Affiliate), and (II) keep the Business of the
Parent, the Borrower and the Restricted Subsidiaries separate and apart from
the Unrestricted Subsidiaries.

ARTICLE
VIII.

EVENTS OF DEFAULT AND REMEDIES

8.01         Events of Default.  Any of the following shall constitute an
Event of Default:

(a)           Non-Payment.  The Borrower or any other Loan Party fails to
pay (i) when and as required to be paid herein, any amount of principal of any
Loan or any L/C Obligation, or (ii) within three Business Days after the
same becomes due, any interest on any Loan or on any

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L/C Obligation, or any fee due hereunder, or
(iii) within five Business Days after the same becomes due, any other amount
payable hereunder or under any other Loan Document; or

(b)                               Specific
Covenants.  The Parent, the Borrower
or any Subsidiary fails to perform or observe any term, covenant or agreement
contained in any of Section 6.03, 6.05(a) or Article VII;
or

(c)                                Other
Defaults.  (i) The Parent, the
Borrower or any Subsidiary fails to perform or observe any term, covenant or
agreement contained in either Section 6.10 or 6.11 on its
part to be performed or observed and such failure continues for 10 days after
the earlier of actual notice by the Borrower or the Parent of such Default or
receipt by such Loan Party of written notice of the existence of such Default
from any Lender, or (ii) any Loan Party fails to perform or observe any other
covenant or agreement (not specified in subsection (a), (b) or (c)(i)
above) contained in any Loan Document on its part to be performed or observed
and such failure continues for 30 days after the earlier of actual notice by
the Borrower or the Parent of such Default or receipt by such Loan Party of
written notice of the existence of such Default from any Lender; or

(d)                               Representations
and Warranties.  Any representation, warranty,
certification or statement of fact made or deemed made by or on behalf of the
Borrower or any other Loan Party herein, in any other Loan Document, or in any
document delivered in connection herewith or therewith shall be incorrect or
misleading in any material respect when made or deemed made; or

(e)                                Cross-Default.  (i) The Parent, the Borrower or any
Restricted Subsidiary (A) fails to make any payment when due (whether by
scheduled maturity, required prepayment, acceleration, demand, or otherwise) in
respect of the Senior Subordinated Notes or any other Consolidated Funded
Indebtedness (other than Indebtedness hereunder and Indebtedness under Swap
Contracts) having an aggregate principal amount (including undrawn committed or
available amounts and including amounts owing to all creditors under any
combined or syndicated credit arrangement) of more than $50,000,000, or
(B) fails to observe or perform any other agreement or condition relating
to the Senior Subordinated Notes or any other such Consolidated Funded
Indebtedness, or contained in any instrument or agreement evidencing, securing
or relating thereto, or any other event occurs, the effect of which default or
other event is to cause, or to permit the holder or holders of the Senior
Subordinated Notes or such Consolidated Funded Indebtedness, (or a trustee or
agent on behalf of such holder or holders) to cause, with the giving of notice
if required, such Consolidated Funded Indebtedness to be demanded or to become
due or to be repurchased, prepaid, defeased or redeemed (automatically or
otherwise), or an offer to repurchase, prepay, defease or redeem such
Consolidated Funded Indebtedness to be made, prior to its stated maturity, to
become payable or cash collateral in respect thereof to be demanded; or
(ii) there occurs under any Swap Contract an Early Termination Date (as
defined in such Swap Contract) resulting from (A) any event of default under
such Swap Contract as to which the Parent, the Borrower or any Restricted
Subsidiary is the Defaulting Party (as defined in such Swap Contract) or
(B) any Termination Event (as so defined) under such Swap Contract as to
which the Parent, the Borrower or any Restricted Subsidiary is an Affected
Party (as so defined) and, in either event, the Swap Termination Value owed by
the Parent, the Borrower or such Restricted Subsidiary as a result thereof is
greater than $50,000,000; or

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(f)                                  Insolvency
Proceedings, Etc.  The Parent, the
Borrower or any Material Subsidiary institutes or consents to the institution
of any proceeding under any Debtor Relief Law, or makes an assignment for the
benefit of creditors; or applies for or consents to the appointment of any
receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar
officer for it or for all or any material part of its property; or any
receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar
officer is appointed without the application or consent of such Person and the
appointment continues undischarged or unstayed for 90 calendar days, or the
Parent, the Borrower or such Material Subsidiary has consented in writing to
any of the foregoing; or any proceeding under any Debtor Relief Law relating to
any such Person or to all or any material part of its property is instituted
without the consent of such Person and continues undismissed or unstayed for 90
calendar days, or an order for relief is entered in any such proceeding; or

(g)                               Inability
to Pay Debts; Attachment.  (i) The
Parent, the Borrower or any Material Subsidiary admits in writing its inability
to pay its debts as they become due, or (ii) any writ or warrant of attachment
or execution or similar process is issued or levied against all or any material
part of the property of any such Person and is not released, vacated or fully
bonded within 30 days after its issue or levy; or

(h)                               Judgments.  There is entered against the Parent, the
Borrower or any Restricted Subsidiary (i) a final judgment or order for the
payment of money in an aggregate amount exceeding $50,000,000 (to the extent
not covered by independent third-party insurance or indemnity), or (ii) any one
or more non-monetary final judgments that have, or is reasonably expected to
have, individually or in the aggregate, a Material Adverse Effect and, in
either case, (A) enforcement proceedings are commenced by any creditor
upon such judgment or order, or (B) there is a period of 30 consecutive days
during which such judgment remains unpaid and a stay of enforcement of such
judgment, by reason of a pending appeal or otherwise, is not in effect; or

(i)                                   ERISA.  (i) An ERISA Event occurs with respect to a
Pension Plan or Multiemployer Plan which has resulted or is reasonably expected
to result in liability of the Parent, the Borrower or any Subsidiary under
Title IV of ERISA to the Pension Plan, Multiemployer Plan or the PBGC in
an aggregate amount in excess of $20,000,000, or (ii) the Parent, the Borrower
or any ERISA Affiliate fails to pay when due, after the expiration of any
applicable grace period, any installment payment with respect to its withdrawal
liability under Section 4201 of ERISA under a Multiemployer Plan which has
resulted or is reasonably expected to result in liability of the Parent, the
Borrower or any Subsidiary in an aggregate amount in excess of $20,000,000; or

(j)                                   Invalidity
of Loan Documents.  Any material
provision of any Loan Document, at any time after its execution and delivery
and for any reason other than as expressly permitted hereunder or thereunder or
satisfaction in full of all the Obligations, ceases to be in full force and
effect; or any Loan Party or any other Person contests in any manner the
validity or enforceability of any material provision of any Loan Document; or
any Loan Party denies that it has any or further liability or obligation under
any Loan Document, or purports to revoke, terminate or rescind any material
provision of any Loan Document; or

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(k)                                Failure
to Comply with FCC.  (i) The FCC or
any other Licensing Authority shall revoke, terminate, substantially and
adversely modify or refuse by final order to renew any License relating to a
Station or Stations or (ii) the Borrower or any License Subsidiary shall be
required pursuant to a final non-appealable order to sell or otherwise dispose
of any Station; so long as in each case of (i) and (ii) preceding such event or
failure is reasonably expected to have a Material Adverse Effect; or

(l)                                   Change
of Control.  There occurs any Change
of Control.

(m)                             Unrestricted
Subsidiaries.  Any event or
circumstance described in the preceding subsections (e), (f), (h) and (k) shall
have occurred with respect to any Unrestricted Subsidiary, and such event or
circumstance would reasonably be expected to result in an Material Adverse
Effect.

8.02                           Remedies Upon Event of Default.  If any Event of Default occurs and is
continuing, the Administrative Agent shall, at the request of, or may, with the
consent of, the Required Lenders, take any or all of the following actions:

(a)                                declare
the commitment of each Lender to make Loans and any obligation of the L/C
Issuer to make L/C Credit Extensions to be terminated, whereupon such
commitments and obligation shall be terminated;

(b)                               declare
the unpaid principal amount of all outstanding Loans, all interest accrued and
unpaid thereon, and all other amounts owing or payable hereunder or under any
other Loan Document to be immediately due and payable, without presentment,
demand, protest or other notice of any kind, all of which are hereby expressly
waived by the Parent, the Borrower and each Subsidiary;

(c)                                require
that the Borrower Cash Collateralize the L/C Obligations (in an amount equal to
the then Outstanding Amount thereof); and

(d)                               exercise
on behalf of itself and the Lenders all rights and remedies available to it and
the Lenders under the Loan Documents;

provided, however, that upon
the occurrence of an actual or deemed entry of an order for relief with respect
to the Borrower or the Parent under the Bankruptcy Code of the United States,
the obligation of each Lender to make Committed Loans and any obligation of the
L/C Issuer to make L/C Credit Extensions shall automatically terminate, the
unpaid principal amount of all outstanding Loans and all interest and other
amounts as aforesaid shall automatically become due and payable, and the
obligation of the Borrower to Cash Collateralize the L/C Obligations as
aforesaid shall automatically become effective, in each case without further
act of the Administrative Agent or any Lender.

8.03                           Application of Funds.  After the exercise of remedies provided for
in Section 8.02 (or after the Loans have automatically become
immediately due and payable and the L/C Obligations have automatically been
required to be Cash Collateralized as set forth in the proviso to Section 8.02),
any amounts received on account of the Obligations shall be applied by the
Administrative Agent in the following order:

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First, to payment of that portion of
the Obligations constituting fees, indemnities, expenses and other amounts
(including fees, charges and disbursements of counsel to the Agents and amounts
payable under Article III) payable to the Agents in their capacity as
such;

Second, to payment of that portion
of the Obligations constituting fees, indemnities and other amounts (other than
principal and interest) payable to the Lenders and the L/C Issuer (including
fees, charges and disbursements of counsel to the respective Lenders and the
L/C Issuer and amounts payable under Article III), ratably among them in
proportion to the amounts described in this clause Second payable to
them;

Third, to payment of that portion of
the Obligations constituting accrued and unpaid interest on the Loans, L/C
Borrowings and other Obligations, except Obligations relating to Swap
Contracts, ratably among the Lenders and the L/C Issuer in proportion to the
respective amounts described in this clause Third payable to them;

Fourth, to payment of that portion
of the Obligations constituting unpaid principal of the Loans and L/C
Borrowings, and to the Administrative Agent for the account of each Lender and
Affiliate of each Lender party to a Swap Contract in the amount of the Swap
Termination Value of each such Swap Contract, ratably among the Lenders,
Affiliates of such Lenders and the L/C Issuer in proportion to the respective
amounts described in this clause Fourth held by them;

Fifth, to the Administrative Agent
for the account of the L/C Issuer, to Cash Collateralize that portion of L/C
Obligations comprised of the aggregate undrawn amount of Letters of Credit;

Sixth, to payment of remaining
portion of the Obligations, ratably among the Lenders in proportion to the
respective amounts described in this clause Sixth held by them; and

Last, the balance, if any, after all
of the Obligations have been indefeasibly paid in full, to the Borrower or as
otherwise required by Law.

Subject to Section 2.03(c), amounts used
to Cash Collateralize the aggregate undrawn amount of Letters of Credit
pursuant to clause Fifth above shall be applied to satisfy drawings under such
Letters of Credit as they occur.  If any
amount remains on deposit as Cash Collateral after all Letters of Credit have
either been fully drawn or expired, such remaining amount shall be applied to
the other Obligations, if any, in the order set forth above.

ARTICLE
IX.

ADMINISTRATIVE AGENT

9.01                           Appointment and Authority.  Each of the Lenders and the L/C Issuer hereby
irrevocably appoints Bank of America to act on its behalf as the Administrative
Agent hereunder and under the other Loan Documents and authorizes the
Administrative Agent to take such actions on its behalf and to exercise such
powers as are delegated to the Administrative Agent by

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the terms
hereof or thereof, together with such actions and powers as are reasonably
incidental thereto.

9.02                           Rights as a Lender.  The Person serving as the Administrative
Agent hereunder shall have the same rights and powers in its capacity as a
Lender as any other Lender and may exercise the same as though it were not the
Administrative Agent and the term “Lender” or “Lenders” shall, unless otherwise
expressly indicated or unless the context otherwise requires, include the
Person serving as the Administrative Agent hereunder in its individual
capacity.  Such Person and its Affiliates
may accept deposits from, lend money to, act as the financial advisor or in any
other advisory capacity for and generally engage in any kind of business with
the Parent, the Borrower or any Subsidiary or other Affiliate thereof as if
such Person were not the Administrative Agent hereunder and without any duty to
account therefor to the Lenders.

9.03                           Exculpatory Provisions.  The Agents shall not have any duties or
obligations except those expressly set forth herein and in the other Loan
Documents.  Without limiting the
generality of the foregoing, the Agents:

(a)                                shall
not be subject to any fiduciary or other implied duties, regardless of whether
a Default has occurred and is continuing;

(b)                               shall
not have any duty to take any discretionary action or exercise any
discretionary powers (except discretionary rights and powers expressly contemplated
hereby or by the other Loan Documents that the Administrative Agent is required
to exercise as directed in writing by the Required Lenders (or such other
number or percentage of the Lenders as shall be expressly provided for herein
or in the other Loan Documents), provided that the Administrative Agent
shall not be required to take any action that, in its opinion or the opinion of
its counsel, may expose the Administrative Agent to liability or that is
contrary to any Loan Document or applicable law); and

(c)                                shall
not, except as expressly set forth herein and in the other Loan Documents, have
any duty to disclose, and shall not be liable for the failure to disclose, any
information relating to the Parent, the Borrower, their Subsidiaries or any of
their Affiliates that is communicated to or obtained by the Person serving as
any Agent or any of their Affiliates in any capacity.

Neither Agent shall be liable for any action taken or
not taken by it, IN ALL CASES, WHETHER OR NOT CAUSED BY OR
ARISING, IN WHOLE OR IN PART, OUT OF THE COMPARATIVE, CONTRIBUTORY OR SOLE
NEGLIGENCE OF ANY SUCH AGENT (i) with the consent or at the
request of the Required Lenders (or such other number or percentage of the
Lenders as shall be necessary, or as such Agent shall believe in good faith
shall be necessary), under the circumstances as provided in Sections 10.01
and 8.02 or (ii) in the absence of its own gross negligence, bad faith
or willful misconduct.  The Agents shall
be deemed not to have knowledge of any Default unless and until notice
describing such Default is given to such Agent by the Borrower, a Lender or the
L/C Issuer.

The Agents shall not be responsible for or have any
duty to ascertain or inquire into (i) any statement, warranty or
representation made in or in connection with this Agreement or

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any other Loan Document,
(ii) the contents of any certificate, report or other document delivered
hereunder or thereunder or in connection herewith or therewith, (iii) the
performance or observance of any of the covenants, agreements or other terms or
conditions set forth herein or therein or the occurrence of any Default, (iv)
the validity, enforceability, effectiveness or genuineness of this Agreement,
any other Loan Document or any other agreement, instrument or document or (v)
the satisfaction of any condition set forth in Article IV or elsewhere herein,
other than the Administrative Agent’s duty to confirm receipt of items
expressly required to be delivered to the Administrative Agent.

9.04                           Reliance by Agents.

The Agents shall be entitled to rely upon, and shall
not incur any liability for relying upon, any notice, request, certificate,
consent, statement, instrument, document or other writing (including any
electronic message, Internet or intranet website posting or other distribution)
believed by it to be genuine and to have been signed, sent or otherwise
authenticated by the proper Person.  Each
Agent also may rely upon any statement made to it orally or by telephone and
believed by it to have been made by the proper Person, and shall not incur any
liability for relying thereon.  In
determining compliance with any condition hereunder to the making of a Loan, or
the issuance of a Letter of Credit, that by its terms must be fulfilled to the
satisfaction of a Lender or the L/C Issuer, the Administrative Agent may
presume that such condition is satisfactory to such Lender or the L/C Issuer
unless the Administrative Agent shall have received notice to the contrary from
such Lender or the L/C Issuer prior to the making of such Loan or the issuance
of such Letter of Credit.  Each Agent may
consult with legal counsel (who may be counsel for the Borrower), independent
accountants and other experts selected by it, and shall not be liable for any
action taken or not taken by it in accordance with the advice of any such
counsel, accountants or experts.

9.05                           Delegation of Duties.  The Administrative Agent may perform any and
all of its duties and exercise its rights and powers hereunder or under any
other Loan Document by or through any one or more sub-agents appointed by
the Administrative Agent.  The
Administrative Agent and any such sub-agent may perform any and all of
its duties and exercise its rights and powers by or through their respective
Related Parties.  The exculpatory provisions
of this Article shall apply to any such sub-agent and to the Related
Parties of each Agent and any sub-agent, and shall apply to their
respective activities in connection with the syndication of the credit
facilities provided for herein as well as activities as Administrative Agent.

9.06                           Resignation of Administrative Agent.  The Administrative Agent may at any time give
notice of its resignation to the Lenders, the L/C Issuer and the Borrower.  Upon receipt of any such notice of
resignation, the Required Lenders shall have the right, with the consent of the
Borrower so long as there exists no Event of Default (such consent not to be
unreasonably withheld), to appoint a successor, which shall be a bank with an
office in the United States, or an Affiliate of any such bank with an office in
the United States.  If no such successor
shall have been so appointed by the Required Lenders and shall have accepted
such appointment within 30 days after the retiring Administrative Agent
gives notice of its resignation, then the retiring Administrative Agent may on
behalf of the Lenders and the L/C Issuer, appoint a successor Administrative
Agent meeting the qualifications set forth above (including the consent of the
Borrower, if applicable); provided that if the Administrative Agent
shall notify the Borrower and

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the Lenders
that no qualifying Person has accepted such appointment within 30 days, then
the Syndication Agent may on behalf of the Lenders and the L/C Issuer, appoint
a successor Administrative Agent meeting the qualifications set forth above; provided
further that if the Administrative Agent shall notify the Borrower and
the Lenders that no qualifying Person has accepted such appointment and the
Agents in their reasonable determination have determined that no successor
Administrative Agent meeting the qualifications set forth above will accept
such appointment, the Agents may engage a commercial servicing company to act
in the role of Administrative Agent, at the expense of the Borrower (with the
consent of the Borrower so long as there exists no Event of Default, such
consent not to be unreasonably withheld). 
If no successor Administrative Agent has been appointed, and no
servicing agent has been engaged by the Agents within 30 days after
commercially reasonable efforts have been made by the Agents to engage such
servicing agent, the Administrative Agent and the Borrower will negotiate in
good faith (the Borrower’s consent not to be unreasonably withheld) a new
agency fee for the Administrative Agent based on the market rate under the
circumstances of the Loan, such fee to compensate the Administrative Agent for
the administrative duties to be conducted by the Administrative Agent in
connection with this Agreement and the other Loan Documents and to supersede
any such agency fee payable to the Administrative Agent under any Fee
Letter.  Upon the acceptance of the
appointment by a successor Administrative Agent or the engagement of a
servicing agent, (a) the resignation of the Administrative Agent shall
become effective in accordance with such notice and the retiring Administrative
Agent shall be discharged from its duties and obligations hereunder and under
the other Loan Documents, (b) such successor or servicing agent shall succeed
to and become vested with all of the rights, powers, privileges and duties of
the retiring (or retired) Administrative Agent, and (c) the retiring
Administrative Agent shall be discharged from all of its duties and obligations
hereunder or under the other Loan Documents (if not already discharged
therefrom as provided above in this Section). 
The fees payable by the Borrower to a successor Administrative Agent
shall be the same as those payable to its predecessor unless otherwise agreed
between the Borrower and such successor. 
After the retiring Administrative Agent’s resignation hereunder and
under the other Loan Documents, the provisions of this Article and Section 10.04
shall continue in effect for the benefit of such retiring Administrative Agent,
its sub-agents and their respective Related Parties in respect of any
actions taken or omitted to be taken by any of them while the retiring
Administrative Agent was acting as Administrative Agent.

Any resignation by Bank of America as Administrative
Agent pursuant to this Section shall also constitute its resignation as L/C
Issuer.  Upon the acceptance of a
successor’s appointment as Administrative Agent hereunder, (a) such successor
shall succeed to and become vested with all of the rights, powers, privileges
and duties of the retiring L/C Issuer, (b) the retiring L/C Issuer shall be
discharged from all of its duties and obligations hereunder or under the other
Loan Documents, and (c) the successor L/C Issuer shall issue letters of credit
in substitution for the Letters of Credit, if any, outstanding at the time of
such succession or make other arrangement satisfactory to the retiring L/C
Issuer to effectively assume the obligations of the retiring L/C Issuer with
respect to such Letters of Credit.  No
servicing agent engaged pursuant to the preceding paragraph shall become L/C
Issuer under this Agreement.  The
Borrower and each Lender agree to the appointment of the servicing agent as
Administrative Agent, if necessary under the terms of, and in accordance with
the provisions of, this paragraph and the preceding paragraph.

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9.07                           Non-Reliance on Agents and Other Lenders.  Each Lender and the L/C Issuer acknowledges
that it has, independently and without reliance upon the Agents or any other
Lender or any of their Related Parties and based on such documents and
information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Agreement. 
Each Lender and the L/C Issuer also acknowledges that it will,
independently and without reliance upon the Agents or any other Lender or any
of their Related Parties and based on such documents and information as it
shall from time to time deem appropriate, continue to make its own decisions in
taking or not taking action under or based upon this Agreement, any other Loan
Document or any related agreement or any document furnished hereunder or
thereunder.

9.08                           No Other Duties, Etc.  Anything herein to the contrary
notwithstanding, none of the book managers, Arrangers, Syndication Agent or
Co-Documentation Agents listed on the cover page hereof shall have any powers,
duties or responsibilities under this Agreement or any of the other Loan
Documents, except in its capacity, as applicable, as the Administrative Agent,
a Lender or the L/C Issuer hereunder.

9.09                           Administrative Agent May File Proofs of Claim.  In case of the pendency of any receivership,
insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment,
composition or other judicial proceeding relative to any Loan Party, the
Administrative Agent (irrespective of whether the principal of any Loan or L/C
Obligation shall then be due and payable as herein expressed or by declaration
or otherwise and irrespective of whether the Administrative Agent shall have
made any demand on the Borrower) shall be entitled and empowered to, and if
requested by the Required Lenders shall, by intervention in such proceeding or
otherwise

(a)                                file
and prove a claim for the whole amount of the principal and interest owing and
unpaid in respect of the Loans, L/C Obligations and all other Obligations that
are due and owing and unpaid and to file such other documents as may be
necessary or advisable in order to have the claims of the Lenders, the L/C
Issuer and the Administrative Agent (including any claim for the reasonable
compensation, expenses, disbursements and advances of the Lenders, the L/C
Issuer and the Administrative Agent and their respective agents and counsel and
all other amounts due the Lenders, the L/C Issuer and the Administrative Agent
under Sections 2.03(i) and (j), 2.08 and 10.04)
allowed in such judicial proceeding; and

(b)                               collect
and receive any monies or other property payable or deliverable on any such
claims and to distribute the same;

and any custodian, receiver, assignee, trustee,
liquidator, sequestrator or other similar official in any such judicial
proceeding is hereby authorized by each Lender and the L/C Issuer to make such
payments to the Administrative Agent and, in the event that the Administrative
Agent shall consent to the making of such payments directly to the Lenders and
the L/C Issuer, to pay to the Administrative Agent any amount due for the
reasonable compensation, expenses, disbursements and advances of the
Administrative Agent and its agents and counsel, and any other amounts due the
Administrative Agent under Sections 2.08 and 10.04.

Nothing contained herein shall be deemed to authorize
the Administrative Agent to authorize or consent to or accept or adopt on
behalf of any Lender or the L/C Issuer any plan of

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reorganization,
arrangement, adjustment or composition affecting the Obligations or the rights
of any Lender or to authorize the Administrative Agent to vote in respect of
the claim of any Lender in any such proceeding.

9.10                           Collateral and Guaranty Matters.  The Lenders and the L/C Issuer irrevocably
authorize the Administrative Agent, at its option and in its discretion,

(a)                                to
release any Lien on any property granted to or held by the Administrative Agent
under any Loan Document (i) upon termination of the Aggregate Commitments and
payment in full of all Obligations (other than contingent indemnification
obligations) and the expiration or termination of all Letters of Credit,
(ii) that is sold, assigned or conveyed or to be sold, assigned or
conveyed as part of or in connection with any sale permitted hereunder or under
any other Loan Document, or (iii) subject to Section 10.01, if
approved, authorized or ratified in writing by the Required Lenders; and

(b)                               to
release any Guarantor from its obligations under the Guaranty if such Person ceases
to be a Subsidiary or ceases to be a Restricted Subsidiary as a result of a
transaction permitted hereunder.

Upon request by the
Administrative Agent at any time, the Required Lenders will confirm in writing
the Administrative Agent’s authority to release or subordinate its interest in
particular types or items of property, or to release any Guarantor from its
obligations under the Guaranty pursuant to this Section 9.10.  In each case as specified in this Section
9.10, the Administrative Agent will, at the Borrower’s expense, execute and
deliver to the applicable Loan Party such documents as such Loan Party may
reasonably request to evidence the release of such item of Collateral from the
assignment and security interest granted under the Loan Documents, or to
release such Guarantor from its obligations under the Guaranty, in each case in
accordance with the terms of the Loan Documents and this Section 9.10.

ARTICLE
X.

MISCELLANEOUS

10.01                     Amendments, Etc.  No amendment or waiver of any provision of
this Agreement or any other Loan Document, and no consent to any departure by
the Borrower or any other Loan Party therefrom, shall be effective unless in
writing signed by the Required Lenders and the Borrower or the applicable Loan
Party, as the case may be, and acknowledged by the Administrative Agent, and
each such waiver or consent shall be effective only in the specific instance
and for the specific purpose for which given; provided, however,
that no such amendment, waiver or consent shall:

(a)                                extend
or increase the Commitment of any Lender (or reinstate any Commitment
terminated pursuant to Section 8.02) without the written consent of
each such Lender directly and adversely affected thereby;

(b)                               postpone
any date fixed by this Agreement or any other Loan Document for any payment
(excluding mandatory prepayments) of principal, interest, fees or other amounts
due to the Lenders (or any of them) or any scheduled or mandatory reduction of
the Aggregate

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Commitments hereunder or under any other Loan
Document without the written consent of each Lender directly and adversely
affected thereby;

(c)                                reduce
the principal of, or the rate of interest specified herein on, any Loan or L/C
Borrowing, or (subject to clause (iv) of the second proviso to this Section 10.01)
any fees or other amounts payable hereunder or under any other Loan Document,
in each case without the written consent of each Lender directly and adversely
affected thereby; provided, however, that only the consent of the
Required Lenders shall be necessary (i) to amend the definition of “Default
Rate” or to waive any obligation of the Borrower to pay interest or Letter of
Credit Fees at the Default Rate or (ii) to amend any financial covenant
hereunder (or any defined term used therein) even if the effect of such
amendment would be to reduce the rate of interest on any Loan or L/C Borrowing
or to reduce any fee payable hereunder;

(d)                               change
Section 2.12 or Section 8.03 in a manner that would
alter the pro rata sharing of payments required thereby, without the written
consent of each Lender directly and adversely affected thereby;

(e)                                change
any provision of this Section or the definition of “Required Lenders” or any
other provision hereof specifying the number or percentage of Lenders required
to amend, waive or otherwise modify any rights hereunder or make any
determination or grant any consent hereunder, without the written consent of
each Lender directly and adversely affected thereby, except as specifically set
forth in Section 2.13;

(f)                                  release
all of, or substantially all of, the value of the guaranties of the Obligations
made by the Guarantors without the written consent of each Lender, or release
the Parent from the Guaranty without the written consent of each Lender; or

(g)                               release
all of, or substantially all of, the Collateral without the written consent of
each Lender;

and, provided further, that (i) no amendment, waiver
or consent shall, unless in writing and signed by the L/C Issuer in addition to
the Lenders required above, affect the rights or duties of the L/C Issuer under
this Agreement or any Issuer Document relating to any Letter of Credit issued
or to be issued by it; (ii) no amendment, waiver or consent shall, unless in
writing and signed by the Administrative Agent in addition to the Lenders
required above, affect the rights or duties of the Administrative Agent under
this Agreement or any other Loan Document; and (iii) Section 10.06(h)
may not be amended, waived or otherwise modified without the consent of each
Granting Lender all or any part of whose Loans are being funded by an SPC at
the time of such amendment, waiver or other modification; (iv) the Fee Letters
may be amended, or rights or privileges thereunder waived, in a writing
executed only by the parties thereto, (v) the Letter of Credit
Applications may be amended, or rights or privileges thereunder waived, in a
writing executed only by the parties thereto, and (vi) notwithstanding anything in this Section
10.01 or elsewhere in this Agreement to the contrary, except to the extent there
shall then exist an Event of Default, any waiver, consent or other amendment to
any term or provision of this Agreement necessary or advisable to effectuate
the intent of Section 2.13 to provide an Incremental Facility or an
increase in the Aggregate Commitment shall be effective when executed by the
Borrower, the Agents and each Lender or other approved financial institution
making such Incremental

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Facility or increase in the
Aggregate Commitment.  Notwithstanding
anything to the contrary herein, no Defaulting Lender shall have any right to
approve or disapprove any amendment, waiver or consent hereunder, except that
the Commitment of such Lender may not be increased or extended without the
consent of such Lender.

10.02                     Notices; Effectiveness; Electronic Communication.

(a)                                Notices
Generally.  Except in the case of
notices and other communications expressly permitted to be given by telephone
(and except as provided in subsection (b) below), all notices and other
communications provided for herein shall be in writing and shall be delivered
by hand or overnight courier service, mailed by certified or registered mail or
sent by telecopier as follows, and all notices and other communications
expressly permitted hereunder to be given by telephone shall be made to the
applicable telephone number, as follows:

(i)                                     if
to the Borrower, either Agent or the L/C Issuer, to the address, telecopier
number, electronic mail address or telephone number specified for such Person
on Schedule 10.02 or as otherwise noticed to the Administrative
Agent; and

(ii)                                  if
to any other Lender, to the address, telecopier number, electronic mail address
or telephone number specified in its Administrative Questionnaire.

Notices sent by hand or overnight courier service, or
mailed by certified or registered mail, shall be deemed to have been given when
received; notices sent by telecopier shall be deemed to have been given when
sent if a confirmation from the sender’s telecopier has been generated (except
that, if not given during normal business hours for the recipient, shall be
deemed to have been given at the opening of business on the next business day
for the recipient).  Notices delivered
through electronic communications to the extent provided in subsection (b)
below, shall be effective as provided in such subsection (b).

(b)                               Electronic
Communications.  Notices and other
communications to the Lenders and the L/C Issuer hereunder may be delivered or
furnished by electronic communication (including e-mail and Internet or
intranet websites) pursuant to procedures approved by the Administrative Agent,
provided that the foregoing shall not apply to notices to any Lender or
the L/C Issuer pursuant to Article II if such Lender or the L/C Issuer,
as applicable, has notified the Administrative Agent that it is incapable of
receiving notices under such Article by electronic communication.  The Administrative Agent or the Borrower may,
in its discretion, agree to accept notices and other communications to it hereunder
by electronic communications pursuant to procedures approved by it, provided
that approval of such procedures may be limited to particular notices or
communications.

Unless the
Administrative Agent otherwise prescribes, (i) notices and other
communications sent to an e-mail address shall be deemed received upon the
sender’s receipt of an acknowledgement from the intended recipient (such as by
the “return receipt requested” function, as available, return e-mail or other
written acknowledgement), provided that if such notice or other communication
is not sent during the normal business hours of the recipient, such notice or
communication shall be deemed to have been sent at the opening of business on
the

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next business day
for the recipient, and (ii) notices or communications posted to an Internet
or intranet website shall be deemed received upon the deemed receipt by the
intended recipient at its e-mail address as described in the foregoing
clause (i) of notification that such notice or communication is available
and identifying the website address therefor.

(c)                                  The
Platform.  THE PLATFORM IS PROVIDED “AS
IS” AND “AS AVAILABLE.”  THE AGENT
PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE
BORROWER MATERIALS OR THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY
FOR ERRORS IN OR OMISSIONS FROM THE BORROWER MATERIALS.  NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR
STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR
PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR
OTHER CODE DEFECTS, IS MADE BY ANY AGENT PARTY IN CONNECTION WITH THE BORROWER
MATERIALS OR THE PLATFORM.  In no event
shall the Administrative Agent or Syndication Agent, or any of their Related
Parties (collectively, the “Agent Parties”) have any liability to
Parent, the Borrower, any Lender, the L/C Issuer or any other Person for
losses, claims, damages, liabilities or expenses of any kind (whether in tort,
contract or otherwise) arising out of the Borrower’s or the Administrative
Agent’s transmission of Borrower Materials through the Internet, IN ALL CASES, WHETHER OR NOT CAUSED BY OR ARISING, IN WHOLE OR IN PART,
OUT OF THE COMPARATIVE, CONTRIBUTORY OR SOLE NEGLIGENCE OF ANY SUCH AGENT
PARTY, except to the extent that such losses, claims, damages,
liabilities or expenses are determined by a court of competent jurisdiction by
a final and nonappealable judgment to have resulted from the gross negligence,
bad faith or willful misconduct of such Agent Party; provided, however,
that in no event shall any Agent Party have any liability to Parent or the
Borrower, any Lender, the L/C Issuer or any other Person for indirect, special,
incidental, consequential or punitive damages (as opposed to direct or actual
damages).

(d)                                 Change
of Address, Etc.  Each of the Parent,
the Borrower, the Administrative Agent and the L/C Issuer may change its
address, telecopier or telephone number for notices and other communications
hereunder by notice to the other parties hereto.  Each other Lender may change its address, telecopier
or telephone number for notices and other communications hereunder by notice to
the Borrower, the Administrative Agent and the L/C Issuer.  In addition, each Lender agrees to notify the
Administrative Agent from time to time to ensure that the Administrative Agent
has on record (i) an effective address, contact name, telephone number,
telecopier number and electronic mail address to which notices and other
communications may be sent and (ii) accurate wire instructions for such Lender.  Furthermore, each Public Lender agrees to
cause at least one individual at or on behalf of such Public Lender to at all
times have selected the “Private Side Information” or similar designation on
the content declaration screen of the Platform in order to enable such Public
Lender or its delegate, in accordance with such Public Lender’s compliance
procedures and applicable Law, including United States Federal and state
securities Laws, to make reference to Borrower Materials that are not made
available through the “Public Side Information” portion of the Platform and
that may contain material non-public information with respect to the Borrower
or its securities for purposes of United States Federal or state securities
laws.

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(e)                                Reliance
by Administrative Agent, L/C Issuer and Lenders.  The Administrative
Agent, the L/C Issuer and the Lenders shall be entitled to rely and act upon
any notices (including telephonic Committed Loan Notices and Term Loan Notices)
purportedly given by or on behalf of the Borrower even if (i) such notices were
not made in a manner specified herein, were incomplete or were not preceded or
followed by any other form of notice specified herein, or (ii) the terms
thereof, as understood by the recipient, varied from any confirmation thereof.  The Borrower shall indemnify the
Administrative Agent, the L/C Issuer, each Lender and the Related Parties of
each of them from all reasonable out-of-pocket losses, costs, expenses and
liabilities resulting from the reliance by such Person on each notice purportedly
given by or on behalf of the Borrower, IN ALL
CASES, WHETHER OR NOT CAUSED BY OR ARISING, IN WHOLE OR IN PART, OUT OF THE
COMPARATIVE, CONTRIBUTORY OR SOLE NEGLIGENCE OF SUCH PERSON, absent
gross negligence, bad faith or willful misconduct of such Person.  All telephonic notices to and other
telephonic communications with the Administrative Agent may be recorded by the
Administrative Agent, and each of the parties hereto hereby consents to such
recording.

10.03                     No Waiver; Cumulative Remedies.  No failure by any Lender, the L/C Issuer or
any Agent to exercise, and no delay by any such Person in exercising, any
right, remedy, power or privilege hereunder shall operate as a waiver thereof;
nor shall any single or partial exercise of any right, remedy, power or
privilege hereunder preclude any other or further exercise thereof or the
exercise of any other right, remedy, power or privilege.  The rights, remedies, powers and privileges
herein provided are cumulative and not exclusive of any rights, remedies,
powers and privileges provided by law.

10.04                     Expenses; Indemnity; Damage Waiver.

(a)                                Costs
and Expenses.  The Borrower shall pay
(i) (A) all reasonable out-of-pocket expenses incurred by each Agent and its
Affiliates (but only including the reasonable fees, charges and disbursements
of one counsel for the Agents), in connection with the syndication of the
credit facilities provided for herein, the preparation, negotiation, execution,
delivery and administration of this Agreement and the other Loan Documents
through the Effective Date, and 
(B) all reasonable out-of-pocket expenses incurred by the
Administrative Agent and its Affiliates (including the reasonable fees, charges
and disbursements of one counsel for the Administrative Agent), in connection
with the syndication of the credit facilities provided for herein, the
preparation, negotiation, execution, delivery and administration of this
Agreement and the other Loan Documents or any amendments, modifications or
waivers of the provisions hereof or thereof (whether or not the transactions
contemplated hereby or thereby shall be consummated), (ii) all reasonable
out-of-pocket expenses incurred by the L/C Issuer in connection with the
issuance, amendment, renewal or extension of any Letter of Credit or any demand
for payment thereunder, provided that, notwithstanding the foregoing,
the Borrower will not be required to reimburse the Administrative Agent for
legal fees incurred on behalf of an Eligible Assignee in connection with any
assignment as set forth in Section 12.06(b)(v), and (iii) all
out-of-pocket expenses incurred by each Agent, any Lender or the L/C Issuer
(including the fees, charges and disbursements of any counsel for each Agent,
any Lender or the L/C Issuer), in connection with the enforcement of its rights
after the occurrence of an Event of Default (or, during the continuance of an
Event of Default, protection of its rights) (A) in connection with this
Agreement and the other Loan Documents, including its rights under this
Section, or (B) in

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connection with the Loans made or Letters of
Credit issued hereunder, including all such out-of-pocket expenses incurred
during any workout, restructuring or negotiations in respect of such Loans or
Letters of Credit.

(b)                               Indemnification
by the Borrower.  The Borrower shall
indemnify each Agent (and any sub-agent thereof), each Lender and the L/C
Issuer, and each Related Party of any of the foregoing Persons (each such
Person being called an “Indemnitee”) against, and hold each Indemnitee
harmless from, any and all losses, claims, damages, liabilities and related
expenses, and shall indemnify and hold harmless each Indemnitee from all fees
and time charges and disbursements for attorneys who may be employees of any
Indemnitee, incurred by any Indemnitee or asserted against any Indemnitee by
any third party or by the Borrower or any other Loan Party arising out of any
actual or prospective claim, litigation, actions, judgments, litigation,
lawsuits, investigation or proceedings arising out of, in connection with, or
as a result of (i) the execution or delivery of this Agreement, any other Loan
Document or any agreement or instrument contemplated hereby or thereby, the
performance by the parties hereto of their respective obligations hereunder or
thereunder or the consummation of the transactions contemplated hereby or
thereby, (ii) any Loan or Letter of Credit or the use or proposed use of the
proceeds therefrom (including any refusal by the L/C Issuer 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), (iii) any actual or alleged presence or release of Hazardous Materials
on or from any property owned or operated by the Borrower or any of its
Subsidiaries, or any Environmental Liability related in any way to the Borrower
or any of its Subsidiaries, or (iv) any actual or prospective claim,
litigation, investigation or proceeding relating to any of the foregoing, in
each case whether based on contract, tort or any other theory, whether brought
by a third party or by the Borrower or any other Loan Party, and regardless of
whether any Indemnitee is a party thereto, IN
ALL CASES, WHETHER OR NOT CAUSED BY OR ARISING, IN WHOLE OR IN PART, OUT OF THE
COMPARATIVE, CONTRIBUTORY OR SOLE NEGLIGENCE OF ANY SUCH INDEMNITEE,
provided that such indemnity shall not, as to any Indemnitee, be
available to the extent that such losses, claims, damages, liabilities or
related expenses (x) are resulting from the gross negligence, bad faith or
willful misconduct of such Indemnitee or any Related Party of such Indemnitee
or (y) result from a claim brought by the Borrower or any other Loan Party
against an Indemnitee for breach in bad faith of such Indemnitee’s obligations
hereunder or under any other Loan Document, if the Borrower or such Loan Party
has obtained a final and nonappealable judgment in its favor on such claim. as
determined by a court of competent jurisdiction.

(c)                                Reimbursement
by Lenders.  To the extent that the
Borrower for any reason fails to indefeasibly pay any amount required under
subsection (a) or (b) of this Section to be paid by it to an Agent
(or any sub-agent thereof), the L/C Issuer or any Related Party of any of the
foregoing but without affecting the Borrower’s obligations to pay such amounts,
each Lender severally agrees to pay to such Agent (or any such sub-agent), the
L/C Issuer or such Related Party, as the case may be, such Lender’s Applicable
Percentage (determined as of the time that the applicable unreimbursed expense
or indemnity payment is sought) of such unpaid amount (except unpaid amounts
relating to upfront closing fees provided in the Fee Letters), provided
that the unreimbursed expense or indemnified loss, claim, damage, liability or
related expense, as the case may be, was incurred by or asserted against such
Agent (or any such sub-agent) or the L/C Issuer in its capacity as such, or
against any Related Party of any of the foregoing acting

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for such Agent (or any such sub-agent) or L/C
Issuer in connection with such capacity. 
The obligations of the Lenders under this subsection (c) are
subject to the provisions of Section 2.11(d).

(d)                               Waiver
of Consequential Damages, Etc.  To
the fullest extent permitted by applicable law, the parties hereto shall not
assert, and hereby waives, any claim against any Indemnitee, on any theory of
liability, for special, indirect, consequential or punitive damages (as opposed
to direct or actual damages) arising out of, in connection with, or as a result
of, this Agreement, any other Loan Document or any agreement or instrument
contemplated hereby, the transactions contemplated hereby or thereby, any Loan
or Letter of Credit or the use of the proceeds thereof.  No Indemnitee referred to in subsection (b)
above shall be liable for any damages arising from the use by unintended
recipients of any information or other materials distributed by it through
telecommunications, electronic or other information transmission systems in
connection with this Agreement or the other Loan Documents or the transactions
contemplated hereby or thereby.

(e)                                Payments.  All amounts due under this Section shall be
payable not later than 30 Business Days after demand therefor after receipt of
a reasonably detailed written invoice therefor.

(f)                                  Survival.  The agreements in this Section shall survive
the resignation of the Administrative Agent and the L/C Issuer, the replacement
of any Lender or Agent, the termination of the Aggregate Commitments and the
repayment, satisfaction or discharge of all the other Obligations.

10.05                     Payments Set Aside.  To the extent that any payment by or on
behalf of the Borrower is made to the Administrative Agent, the L/C Issuer or
any Lender, or the Administrative Agent, the L/C Issuer or any Lender exercises
its right of setoff, and such payment or the proceeds of such setoff or any
part thereof is subsequently invalidated, declared to be fraudulent or
preferential, set aside or required (including pursuant to any settlement
entered into by the Administrative Agent, the L/C Issuer or such Lender in its
discretion) to be repaid to a trustee, receiver or any other party, in
connection with any proceeding under any Debtor Relief Law or otherwise, then
(a) to the extent of such recovery, the obligation or part thereof originally
intended to be satisfied shall be revived and continued in full force and
effect as if such payment had not been made or such setoff had not occurred,
and (b) each Lender and the L/C Issuer severally agrees to pay to the Administrative
Agent upon demand its applicable share (without duplication) of any amount so
recovered from or repaid by the Administrative Agent, plus interest thereon
from the date of such demand to the date such payment is made at a rate per
annum equal to the Federal Funds Rate from time to time in effect.  The obligations of the Lenders and the L/C
Issuer under clause (b) of the preceding sentence shall survive the payment in
full of the Obligations and the termination of this Agreement.

10.06                     Successors and Assigns.

(a)                                Successors
and Assigns Generally.  The
provisions of this Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns permitted
hereby, except the Borrower and the Parent may not, nor may any other Loan

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Party (except to the extent such Loan Party
is permitted in a transaction permitted by the terms of this Agreement), assign
or otherwise transfer any of its rights or obligations hereunder without the
prior written consent of the Administrative Agent and each Lender and no Lender
may assign or otherwise transfer any of its rights or obligations hereunder
except (i) to an Eligible Assignee in accordance with the provisions of
subsection (b) of this Section, (ii) by way of participation in accordance
with the provisions of subsection (d) of this Section, (iii) by way
of pledge or assignment of a security interest subject to the restrictions of
subsection (f) of this Section, or (iv) to an SPC in accordance with
the provisions of subsection (h) of this Section (and any other attempted
assignment or transfer by any party hereto shall be null and void).  Nothing in this Agreement, expressed or
implied, shall be construed to confer upon any Person (other than the parties
hereto, their respective successors and assigns permitted hereby, Participants
to the extent provided in subsection (d) of this Section and, to the
extent expressly contemplated hereby, the Related Parties of each of the
Administrative Agent, the L/C Issuer and the Lenders) any legal or equitable
right, remedy or claim under or by reason of this Agreement.

(b)                               Assignments
by Lenders.  Any Lender may at any
time assign to one or more Eligible Assignees all or a portion of its rights
and obligations under this Agreement (including all or a portion of its
Commitment and the Loans (including for purposes of this subsection (b),
participations in L/C Obligations) at the time owing to it); provided
that any such assignment shall be subject to the following conditions:

(i)                                    Minimum
Amounts.

(A)                               in
the case of an assignment of the entire remaining amount of the assigning
Lender’s Commitment and the Loans at the time owing to it, or in the case of an
assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no
minimum amount need be assigned; and

(B)                                 in
any case not described in subsection (b)(i)(A) of this Section, the aggregate
amount of the Commitment (which for this purpose includes Loans outstanding
thereunder) or, if the Commitment is not then in effect, the principal outstanding
balance of the Loans of the assigning Lender subject to each such assignment,
determined as of the date the Assignment and Assumption with respect to such
assignment is delivered to the Administrative Agent or, if “Trade Date” is
specified in the Assignment and Assumption, as of the Trade Date, shall not be
less than $5,000,000, unless each of the Administrative Agent and, so long as
no Event of Default under Section 8.01(a) or Section 8.01(f) has
occurred and is continuing, the Borrower otherwise consents (each such consent
not to be unreasonably withheld or delayed); provided, however,
that concurrent assignments to members of an Assignee Group and concurrent
assignments from members of an Assignee Group to a single Eligible Assignee (or
to an Eligible Assignee and members of its Assignee Group) will be treated as a
single assignment for purposes of determining whether such minimum amount has
been met;

(ii)                                 Proportionate
Amounts.  Each partial assignment
shall be made as an assignment of a proportionate part of all the assigning
Lender’s rights and obligations

 95

under this Agreement with respect to the
Loans or the Commitment assigned, except that this clause (ii) shall not
prohibit any Lender from assigning all or a portion of its rights and
obligations among the Committed Loans and Term Loans on a non-pro rata basis;

(iii)                              Required
Consents.  No consent shall be
required for any assignment except to the extent required by subsection
(b)(i)(B) of this Section and, in addition:

(A)                               the
consent of the Borrower (such consent not to be unreasonably withheld or
delayed) shall be required unless (1) an Event of Default under Section
8.01(a) or Section 8.01(f) has occurred and is continuing at the
time of such assignment or (2) such assignment is to a Lender, an Affiliate of
a Lender or an Approved Fund;

(B)                                 the
consent of the Administrative Agent (such consent not to be unreasonably
withheld or delayed) shall be required for assignments in respect of
(1) any Commitment if such assignment is to a Person that is not a Lender
with a Commitment, an Affiliate of such Lender or an Approved Fund with respect
to such Lender or (2) any Term Loan to a Person that is not a Lender, an
Affiliate of a Lender or an Approved Fund; and

(C)                                 the
consent of the L/C Issuer (such consent not to be unreasonably withheld or
delayed) shall be required for any assignment that increases the obligation of
the assignee to participate in exposure under one or more Letters of Credit
(whether or not then outstanding).

(iv)                             Assignment
and Assumption.  The parties to each
assignment shall execute and deliver to the Administrative Agent an Assignment
and Assumption, together with a processing and recordation fee in the amount of
$3,500; provided, however, that the Administrative Agent may, in
its sole discretion, elect to waive such processing and recordation fee.  The assignee, if it is not a Lender, shall
deliver to the Administrative Agent an Administrative Questionnaire.

(v)                                No
Assignment to Borrower.  No such
assignment shall be made to the Borrower or any of the Borrower’s Affiliates or
Subsidiaries.

(vi)                             No
Assignment to Natural Persons.  No
such assignment shall be made to a natural person.

Subject to acceptance and
recording thereof by the Administrative Agent pursuant to subsection (c)
of this Section, from and after the effective date specified in each Assignment
and Assumption, the assignee thereunder shall be a party to this Agreement 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 3.01, 3.04, 3.05 and 10.04
with respect to facts and circumstances occurring prior to the effective date
of such assignment.

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Upon request, the
Borrower (at its expense) shall execute and deliver a Note to the assignee
Lender.  Any assignment or transfer by a
Lender of rights or obligations under this Agreement that does not comply with
this subsection 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 10.06(d).

(c)                                Register.  The Administrative Agent, acting solely for
this purpose as an agent of the Borrower, shall maintain at the Administrative
Agent’s Office 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
Commitments of, and principal amounts of the Loans and L/C Obligations owing to,
each Lender pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be
presumptively correct absent manifest error, and the Borrower, the
Administrative Agent and the Lenders may treat each Person whose name is
recorded in the Register pursuant to the terms hereof as a Lender hereunder for
all purposes of this Agreement, notwithstanding notice to the contrary.  The Register shall be available for
inspection by each of the Borrower and the L/C Issuer at any reasonable time
and from time to time upon reasonable prior notice.

(d)                               Participations.  Any Lender may at any time, without the
consent of, or notice to, the Borrower or the Administrative Agent, sell
participations to any Person (other than a natural person or the Borrower or
any of the Borrower’s Affiliates or Subsidiaries) (each, a “Participant”)
in all or a portion of such Lender’s rights and/or obligations under this
Agreement (including all or a portion of its Commitment and/or the Loans
(including such Lender’s participations in L/C Obligations) owing to it); provided
that (i) such Lender’s obligations under this Agreement shall remain
unchanged, (ii) such Lender shall remain solely responsible to the other
parties hereto for the performance of such obligations and (iii) the
Borrower, the Administrative Agent, the Lenders and the L/C Issuer 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, waiver or other modification described in the first proviso to Section 10.01
that directly affects such Participant. 
Subject to subsection (e) of this Section, the Borrower agrees that
each Participant shall be entitled to the benefits of Sections 3.01, 3.04
and 3.05  to the same extent as if it were
a Lender and had acquired its interest by assignment pursuant to
subsection (b) of this Section.  To
the extent permitted by law, each Participant also shall be entitled to the
benefits of Section 10.08  as though it
were a Lender, provided such Participant agrees to be subject to Section 2.12
as though it were a Lender.

(e)                                  Limitations
upon Participant Rights.  A
Participant shall not be entitled to receive any greater payment under Section 3.01
or 3.04  than the applicable Lender would
have been entitled to receive with respect to the participation sold to such
Participant, unless the sale of the participation to such Participant is made
with the Borrower’s prior written consent. 
A Participant that would be a Foreign Lender if it were a Lender shall
not be entitled to the benefits of Section 3.01 unless the Borrower
is notified of the participation sold to such Participant and such

 97
 

Participant agrees, for
the benefit of the Borrower, to comply with Section 3.01(e) as
though it were a Lender.

(f)                                  Certain
Pledges.  Any Lender may at any time
pledge or assign a security interest in all or any portion of its rights under
this Agreement (including under its Note, if any) to secure obligations of such
Lender, including any pledge or assignment to secure obligations to a Federal
Reserve Bank; provided that no such pledge or assignment shall release
such Lender from any of its obligations hereunder or substitute any such
pledgee or assignee for such Lender as a party hereto.

(g)                               Electronic
Execution of Assignments.  The words “execution,”
“signed,” “signature,” and words of like import in any Assignment and
Assumption shall be deemed to include electronic signatures or the keeping of
records in electronic form, each of which shall be of the same legal effect,
validity or enforceability as a manually executed signature or the use of a
paper-based recordkeeping system, as the case may be, to the extent and as
provided for in any applicable law, including the Federal Electronic Signatures
in Global and National Commerce Act, the New York State Electronic Signatures
and Records Act, or any other similar state laws based on the Uniform
Electronic Transactions Act.

(h)                               Special
Purpose Funding Vehicles. 
Notwithstanding anything to the contrary contained herein, any Lender (a
“Granting Lender”) may grant to a special purpose funding vehicle
identified as such in writing from time to time by the Granting Lender to the
Administrative Agent and the Borrower (an “SPC”) the option to provide
all or any part of any Loan that such Granting Lender would otherwise be
obligated to make pursuant to this Agreement; provided that (i) nothing
herein shall constitute a commitment by any SPC to fund any Committed Loan, and
(ii) if an SPC elects not to exercise such option or otherwise fails to make
all or any part of such Committed Loan, the Granting Lender shall be obligated
to make such Committed Loan pursuant to the terms hereof or, if it fails to do
so, to make such payment to the Administrative Agent as is required under Section 2.11(b)(ii).  Each party hereto hereby agrees that (i)
neither the grant to any SPC nor the exercise by any SPC of such option shall
increase the costs or expenses or otherwise increase or change the obligations
of the Borrower under this Agreement (including its obligations under Section 3.04),
(ii) no SPC shall be liable for any indemnity or similar payment obligation
under this Agreement for which a Lender would be liable, and (iii) the Granting
Lender shall for all purposes, including the approval of any amendment, waiver
or other modification of any provision of any Loan Document, remain the lender
of record hereunder.  The making of a
Committed Loan by an SPC hereunder shall utilize the Commitment of the Granting
Lender to the same extent, and as if, such Committed Loan were made by such
Granting Lender.  In furtherance of the
foregoing, each party hereto hereby agrees (which agreement shall survive the
termination of this Agreement) that, prior to the date that is one year and one
day after the payment in full of all outstanding commercial paper or other
senior debt of any SPC, it will not institute against, or join any other Person
in instituting against, such SPC any bankruptcy, reorganization, arrangement,
insolvency, or liquidation proceeding under the laws of the United States or
any State thereof.  Notwithstanding
anything to the contrary contained herein, any SPC may with notice to, but
without prior consent of the Borrower and the Administrative Agent and with the
payment of a processing fee of $1,000.00, assign all or any portion of its
right to receive payment with respect to any Loan to the Granting Lender, and
subject to Section 10.07, such SPC may disclose on a confidential basis
any non-

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public information relating to its funding of
Loans to any rating agency, commercial paper dealer or provider of any surety
or Guarantee or credit or liquidity enhancement to such SPC.

10.07                     Treatment of Certain Information; Confidentiality.  Each of the Administrative Agent, the Lenders
and the L/C Issuer agrees to maintain the confidentiality of the Information
(as defined below), except that Information may be disclosed (a) to its
Affiliates’ and to its Affiliates’ respective directors, officers, employees,
agents, advisors and representatives (it being understood that the Persons to
whom such disclosure is made will be informed of the confidential nature of
such Information and instructed to keep such Information confidential), (b) to
the extent requested by any regulatory authority purporting to have
jurisdiction over it (including any self-regulatory authority, such as the
National Association of Insurance Commissioners), (c) to the extent required by
applicable laws or regulations or by any subpoena or similar legal process, (d)
to any other party hereto, (e) in connection with the exercise of any remedies
hereunder or under any other Loan Document or any action or proceeding relating
to this Agreement or any other Loan Document or the enforcement of rights
hereunder or thereunder, (f) subject to an agreement containing provisions
substantially the same as those of this Section, to (i) any assignee of or Participant
in, or any prospective assignee of or Participant in, any of its rights or
obligations under this Agreement or any proposed lender invited to be a Lender
pursuant to Section 2.13; or (ii) any actual or prospective counterparty
(or its advisors) to any swap or derivative transaction relating to the
Borrower and its obligations, (g) with the consent of the Borrower or (h) to
the extent such Information (x) becomes publicly available other than as a
result of a breach of this Section or (y) becomes available to the
Administrative Agent, any Lender, the L/C Issuer or any of their respective
Affiliates on a nonconfidential basis from a source other than the a Loan
Party.

For purposes of this Section, “Information”
means all information received from the Parent, the Borrower or any Subsidiary
relating to the Parent, the Borrower or any Subsidiary or any of their
respective businesses, other than any such information that is available to the
Administrative Agent, any Lender or the L/C Issuer on a nonconfidential basis
prior to disclosure by the Parent, the Borrower or any Subsidiary, provided
that, in the case of information received from the Parent, the Borrower or any
Subsidiary after the date hereof, such information is clearly identified at the
time of delivery as confidential.  Any
Person required to maintain the confidentiality of Information as provided in
this Section shall be considered to have complied with its obligation to do so
if such Person has exercised the same degree of care to maintain the
confidentiality of such Information as such Person would accord to its own
confidential information.

Each of the Administrative Agent, the Lenders and the
L/C Issuer acknowledges that (a) the Information may include material
non-public information concerning the Borrower, Parent or any Subsidiary of
either thereof, as the case may be, (b) it has developed compliance
procedures regarding the use of material non-public information and (c) it will
handle such material non-public information in accordance with applicable Law,
including United States Federal and state securities Laws.

10.08                     Right of
Setoff.  If an Event of
Default shall have occurred and be continuing, each Lender, the L/C Issuer and
each of their respective Affiliates is hereby authorized at any time and from
time to time, after obtaining the prior written consent of the Administrative
Agent,

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to the fullest extent
permitted by applicable law, to set off and apply any and all deposits (general
or special, time or demand, provisional or final, in whatever currency (but not
trust accounts)) at any time held and other obligations (in whatever currency)
at any time owing by such Lender, the L/C Issuer or any such Affiliate to or
for the credit or the account of the Borrower or any other Loan Party against
any and all of the obligations of the Borrower or such Loan Party now or
hereafter existing under this Agreement or any other Loan Document to such
Lender or the L/C Issuer, irrespective of whether or not such Lender or the L/C
Issuer shall have made any demand under this Agreement or any other Loan
Document and although such obligations of the Borrower or such Loan Party may
be contingent or unmatured or are owed to a branch or office of such Lender or
the L/C Issuer different from the branch or office holding such deposit or
obligated on such indebtedness.  The
rights of each Lender, the L/C Issuer and their respective Affiliates under
this Section are in addition to other rights and remedies (including other rights
of setoff) that such Lender, the L/C Issuer or their respective Affiliates may
have.  Each Lender and the L/C Issuer
agrees to notify the Borrower and the Administrative Agent promptly after any
such setoff and application, provided that the failure to give such
notice shall not affect the validity of such setoff and application.

10.09                     Interest Rate Limitation.  Notwithstanding anything to the contrary
contained in any Loan Document, the interest paid or agreed to be paid under
the Loan Documents shall not exceed the maximum rate of non-usurious interest
permitted by applicable Law (the “Maximum Rate”).  If the Administrative Agent or any Lender
shall receive interest in an amount that exceeds the Maximum Rate, the excess
interest shall be applied to the principal of the Loans or, if it exceeds such
unpaid principal, refunded to the Borrower. 
In determining whether the interest contracted for, charged, or received
by the Administrative Agent or a Lender exceeds the Maximum Rate, such Person
may, to the extent permitted by applicable Law, (a) characterize any payment
that is not principal as an expense, fee, or premium rather than interest, (b)
exclude voluntary prepayments and the effects thereof, and (c) amortize,
prorate, allocate, and spread in equal or unequal parts the total amount of interest
throughout the contemplated term of the Obligations hereunder.

10.10                     Counterparts; Integration; Effectiveness.  This Agreement may be executed in
counterparts (and by different parties hereto in different counterparts), each
of which shall constitute an original, but all of which when taken together
shall constitute a single contract.  This
Agreement and the other Loan Documents constitute the entire contract among the
parties relating to the subject matter hereof and supersede any and all
previous agreements and understandings, oral or written, relating to the
subject matter hereof.  Except as
provided in Section 4.01, this Agreement shall become effective
when it shall have been executed by the Administrative Agent and when the
Administrative Agent shall have received counterparts hereof that, when taken
together, bear the signatures of each of the other parties hereto.  Delivery of an executed counterpart of a
signature page of this Agreement by telecopy shall be effective as delivery of
a manually executed counterpart of this Agreement.

10.11                     Survival of Representations and Warranties.  All representations and warranties made
hereunder and in any other Loan Document or other document delivered pursuant
hereto or thereto or in connection herewith or therewith shall survive the
execution and delivery hereof and thereof. 
Such representations and warranties have been or will be relied upon by
the Administrative Agent and each Lender, regardless of any investigation made
by the

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Administrative
Agent or any Lender or on their behalf, and shall continue in full force and
effect as long as any Loan or any other Obligation hereunder shall remain
unpaid or unsatisfied or any Letter of Credit shall remain outstanding.

10.12                     Severability.  If any provision of this Agreement or the
other Loan Documents is held to be illegal, invalid or unenforceable, (a) the
legality, validity and enforceability of the remaining provisions of this
Agreement and the other Loan Documents shall not be affected or impaired
thereby and (b) the parties shall endeavor in good faith negotiations to
replace the illegal, invalid or unenforceable provisions with valid provisions
the economic effect of which comes as close as possible to that of the illegal,
invalid or unenforceable provisions.  The
invalidity of a provision in a particular jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.

10.13                     Replacement of Lenders.  If any of the following shall occur:

(a)                                any
Lender requests compensation under Section 3.04,

(b)                               any
Lender is unable to fund under Section 3.02,

(c)                                any
Lender is a Defaulting Lender,

(d)                               the
Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 3.01,

(e)                                any
Lender does not vote in favor of an amendment or waiver that requires the
consent or vote of each of the Lenders and is approved by the Required Lenders,

(f)                                  any
Lender does not vote in favor of an amendment or waiver described in Section 10.01(c)(ii),
or

(g)                               or
if any other circumstance exists hereunder that gives the Borrower the right to
replace a Lender as a party hereto,

then the Borrower may, at its sole expense and effort,
upon notice to such Lender and with the consent of the Agents, require such
Lender to assign and delegate, without recourse (in accordance with and subject
to the restrictions contained in, and consents required by, Section 10.06),
all of its interests, rights and obligations under this Agreement and the
related Loan Documents to an assignee that shall assume such obligations (which
assignee may be another Lender, if a Lender accepts such assignment), provided
that:

(i)                                     the
Borrower or the new assignee Lender shall have paid to the Administrative Agent
the assignment fee specified in Section 10.06(b);

(ii)                                  such
Lender shall have received payment of an amount equal to the outstanding
principal of its Loans and L/C Advances, accrued interest thereon, accrued fees
and all other amounts payable to it hereunder and under the other Loan
Documents (including any amounts under Section 3.05) from the
assignee

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(to the extent of such outstanding principal
and accrued interest and fees) or the Borrower (in the case of all other
amounts);

(iii)                               in
the case of any such assignment resulting from a claim for compensation under Section 3.04
or payments required to be made pursuant to Section 3.01, such
assignment will result in a reduction in such compensation or payments
thereafter; and

(iv)                              such
assignment does not conflict with applicable Laws.

A Lender shall not be required to make any such
assignment or delegation if, prior thereto, as a result of a waiver by such
Lender or otherwise, the circumstances entitling the Borrower to require such
assignment and delegation cease to apply.

10.14                     Governing Law; Jurisdiction; Etc.

(a)                                GOVERNING
LAW.  THIS AGREEMENT SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW
YORK.

(b)                               SUBMISSION
TO JURISDICTION.  THE BORROWER, EACH
OTHER LOAN PARTY AND EACH OTHER PARTY HERETO IRREVOCABLY AND UNCONDITIONALLY
SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE
COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK CITY AND OF THE UNITED
STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE
COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING
TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT
OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY
AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD
AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW, IN SUCH FEDERAL COURT. 
EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH
ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER
JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.

(c)                                WAIVER
OF VENUE.  THE BORROWER AND EACH
OTHER PARTY HERETO IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER
HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO
IN PARAGRAPH (B) OF THIS SECTION. 
EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE
MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.

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(d)                               SERVICE
OF PROCESS.  EACH PARTY HERETO
IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES
IN SECTION 10.02.  NOTHING IN
THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN
ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

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

10.16                     FCC Compliance.

(a)                                Notwithstanding
anything herein or in any of the Loan Documents to the contrary, but without
limiting or waiving any Loan Party’s obligations hereunder or under any of the
Loan Documents, the Administrative Agent’s and the Lenders’ remedies hereunder
and under the Loan Documents are subject to compliance with the Communications
Act of 1934, as amended, and to all applicable rules, regulations and policies
of the FCC, and neither the Administrative Agent nor the Lenders will take any
action pursuant to this Agreement or any of the Loan Documents that will
constitute or result in any assignment of a License issued by the FCC or any
change of control of the Borrower or any of its Subsidiaries which owns any FCC
License if such assignment of License or change of control would require under
then existing law (including the written rules and regulations promulgated by
the FCC), the prior approval of the FCC, without first obtaining such approval
of the FCC.  This Agreement, the Loan
Documents and the transactions contemplated hereby and thereby do not and will
not constitute, create, or have the effect of constituting or creating,
directly or indirectly, actual or practical ownership of any Loan Party by the
Administrative Agent or the Lenders or control, affirmative or negative, direct
or indirect, of any Loan Party by the Administrative Agent or the Lenders, over
the management or any other aspect of the operation of any Loan Party, which
ownership and control remain exclusively and at all times in the members,
stockholders and directors of the Loan Parties until such time as the
Administrative Agent and the Lenders have complied with such law, rules,
regulations and policies.

(b)                               Furthermore,
the parties acknowledge their intent that, upon the occurrence of an Event of
Default, the Lenders shall receive, to the fullest extent permitted by
applicable law and governmental policy (including, the rules, regulations and policies
of the FCC), all rights necessary or desirable to obtain, use or sell the
Licenses and the Collateral securing the

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Obligations, and to exercise all remedies
available to them under this Agreement, the Loan Documents, the Uniform
Commercial Code or other applicable law. 
Therefore, the parties agree that, in the event of changes in law or
governmental policy occurring after the date hereof that affect in any manner
the Administrative Agent’s or the Lenders’ rights of access to, or use or sale
of, the Licenses or such Collateral, or the procedures necessary to enable the
Administrative Agent or the Lenders to obtain such rights of access, use or
sale, the Administrative Agent, the Lenders, the Parent and the Borrower shall
amend this Agreement and the Loan Documents in such manner as the
Administrative Agent shall reasonably request, in order to provide the
Administrative Agent and the Lenders such rights to the greatest extent
possible consistent with then applicable Law and governmental policy.

10.17                     USA PATRIOT Act Notice.  Each Lender that is subject to the Act (as
hereinafter defined) and the Administrative Agent (for itself and not on behalf
of any Lender) hereby notifies the Borrower that pursuant to the requirements
of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law
October 26, 2001)) (the “Act”), it is required to obtain, verify
and record information that identifies the Borrower, which information includes
the name and address of the Borrower and other information that will allow such
Lender or the Administrative Agent, as applicable, to identify the Borrower in
accordance with the Act.

10.18                     Time of the Essence.  Time is of the essence of the Loan Documents.

10.19                     Designation as Senior Indebtedness.  All Obligations shall (i) be “Designated
Senior Indebtedness” for purposes of and as defined in that certain Indenture,
and all supplemental indentures thereto, and (ii) be treated as senior
indebtedness at least pari passu with respect to all other indentures and other
Indebtedness of the Parent, the Borrower and their Restricted Subsidiaries.

10.20                     Commitment Letter.  The provisions of that certain Commitment
Letter, dated as of May 10, 2007, among the Borrower, Bank of America, the
Arrangers and Chase relating to the indemnification by the Borrower and the
payment by the Borrower of costs and expenses of the parties thereto will be
superseded in full by the provisions of this Agreement, notwithstanding the
survival provisions in such letter.

10.21                     No Advisory or Fiduciary Responsibility.  In connection with all aspects of each
transaction contemplated hereby (including in connection with any amendment,
waiver or other modification hereof or of any other Loan Document), each of the
Borrower and Parent acknowledges and agrees,
and acknowledges its Affiliates’ understanding, that: (i) (A) the arranging and
other services regarding this Agreement provided by the Administrative Agent,
the Syndication Agent and the Arrangers are arm’s-length commercial
transactions between the Borrower, Parent and their respective Affiliates, on
the one hand, and the Administrative Agent, the Syndication Agent and the
Arrangers, on the other hand, (B) each of the Borrower and Parent has consulted
its own legal, accounting, regulatory and tax advisors to the extent it has
deemed appropriate, and (C) each of the Borrower and Parent is capable of
evaluating, and understands and accepts, the terms, risks and conditions of the
transactions contemplated hereby and by the other Loan Documents; (ii) (A) each
of the Administrative Agent, the Syndication Agent and the Arrangers is and has
been acting solely as a principal and, except as expressly agreed in writing by
the relevant parties, has not been, is not, and will not be acting as an
advisor, agent or

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fiduciary for
the Borrower, Parent or any of their respective Affiliates, or any other Person
and (B) none of the Administrative Agent, the Syndication Agent or any Arranger
has any obligation to the Borrower, Parent, or any of their respective
Affiliates with respect to the transactions contemplated hereby except those
obligations expressly set forth herein and in the other Loan Documents; and
(iii) the Administrative Agent, the Syndication Agent and the Arrangers and
their respective Affiliates may be engaged in a broad range of transactions
that involve interests that differ from those of the Borrower, the Parent and
their respective Affiliates, and none of the Administrative Agent, the
Syndication Agent and the Arrangers has any obligation to disclose any of such interests
to the Borrower, Parent or any of their respective Affiliates.  To the fullest extent permitted by law, each
of  the Borrower and Parent hereby
waives and releases any claims that it may have against the Administrative
Agent, the Syndication Agent and the Arrangers with respect to any breach or
alleged breach of agency or fiduciary duty in connection with any aspect of any
transaction contemplated hereby.

10.22                     ENTIRE AGREEMENT. 
THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT
AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG
THE PARTIES.

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

	
  

  	
  ENTERCOM
  RADIO, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
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  Title:

  	
   

  	
   

  
					

 

 

	
  Acknowledged and Agreed:

  	
   

  
	
   

  	
   

  
	
  ENTERCOM
  COMMUNICATIONS CORP.

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
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  BANK OF
  AMERICA, N.A., as Administrative

  Agent, L/C  Issuer and Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
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  Title:

  	
   

  	
   

  
					

 

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  JPMORGAN
  CHASE BANK, as Syndication

  Agent and  Lender

  	 

	
   

  	
   

  	 

	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
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  Name:

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  Title:

  	
   

  	
   

  	 

								

 

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