Document:

exv4w3

 

Exhibit 4.3

CONFORMED COPY

U.S. $350,000,000

364-DAY CREDIT AGREEMENT

Dated as of August 14, 2002

Among

THE WASHINGTON POST COMPANY

as Borrower

and

THE INITIAL LENDERS NAMED HEREIN

as Initial Lenders

and

CITIBANK, N.A.

as Administrative Agent

and

WACHOVIA BANK, NATIONAL ASSOCIATION

SUNTRUST BANK

as Syndication Agents

and

JPMORGAN CHASE BANK

BANK ONE, N.A.

as Documentation Agents

_____________________________

SALOMON SMITH BARNEY INC.

Lead Arranger and Book Manager

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 	 	 	 	ARTICLE I
	 	 	 	 
	 
	 	 	 	DEFINITIONS AND ACCOUNTING TERMS
	 	 	 	 
	 
	SECTION 1.01. Certain Defined Terms
	 	 	1	 
	SECTION 1.02. Computation of Time Periods
	 	 	14	 
	SECTION 1.03. Accounting Terms
	 	 	14	 
	 
	 	 	 	 	ARTICLE II
	 	 	 	 
	 
	 	 	 	AMOUNTS AND TERMS OF THE ADVANCES
	 	 	 	 
	 
	SECTION 2.01. The Revolving Credit Advances
	 	 	14	 
	SECTION 2.02. Making the Revolving Credit Advances
	 	 	14	 
	SECTION 2.03. The Competitive Bid Advances
	 	 	16	 
	SECTION 2.04. Fees
	 	 	19	 
	SECTION 2.05. Termination, Reduction or Increase of the Commitments
	 	 	20	 
	SECTION 2.06. Repayment of Revolving Credit Advances; Term Loan Election
	 	 	22	 
	SECTION 2.07. Interest on Revolving Credit Advances
	 	 	22	 
	SECTION 2.08. Interest Rate Determination
	 	 	23	 
	SECTION 2.09. Optional Conversion of Revolving Credit Advances
	 	 	24	 
	SECTION 2.10. Optional Prepayments of Revolving Credit Advances
	 	 	24	 
	SECTION 2.11. Increased Costs
	 	 	25	 
	SECTION 2.12. Illegality
	 	 	26	 
	SECTION 2.13. Payments and Computations
	 	 	27	 
	SECTION 2.14. Taxes
	 	 	28	 
	SECTION 2.15. Sharing of Payments, Etc
	 	 	30	 
	SECTION 2.16. Use of Proceeds
	 	 	30	 
	SECTION 2.17. Extension of Termination Date
	 	 	30	 
	 
	 	 	 	 	ARTICLE III
	 	 	 	 
	 
	 	 	 	CONDITIONS TO EFFECTIVENESS AND LENDING
	 	 	 	 
	 
	SECTION 3.01. Conditions Precedent to Effectiveness of Sections 2.01 and 2.03
	 	 	32	 
	SECTION 3.02. Conditions Precedent to Each Revolving Credit
Borrowing, Increase Date and Extension
                             Date
	 	 	33	 
	SECTION 3.03. Conditions Precedent to Each Competitive Bid Borrowing
	 	 	34	 
	SECTION 3.04. Determinations Under Section 3.01
	 	 	34	 

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	 	 	 	 	ARTICLE IV
	 	 	 	 
	 
	 	 	 	REPRESENTATIONS AND WARRANTIES
	 	 	 	 
	 
	SECTION 4.01. Representations and Warranties of the Borrower
	 	 	35	 
	 
	 	 	 	 	ARTICLE V 
	 	 	 	 
	 
	 	 	 	COVENANTS OF THE BORROWER
	 	 	 	 
	 
	SECTION 5.01. Affirmative Covenants
	 	 	36	 
	SECTION 5.02. Negative Covenants
	 	 	38	 
	SECTION 5.03. Financial Covenant
	 	 	39	 
	 
	 	 	 	 	ARTICLE VI
	 	 	 	 
	 
	 	 	 	EVENTS OF DEFAULT
	 	 	 	 
	 
	SECTION 6.01. Events of Default
	 	 	40	 
	 
	 	 	 	 	ARTICLE VII
	 	 	 	 
	 
	 	 	 	THE AGENT
	 	 	 	 
	 
	SECTION 7.01. Authorization and Action
	 	 	42	 
	SECTION 7.02. Agent’s Reliance, Etc
	 	 	42	 
	SECTION 7.03. Citibank and Affiliates
	 	 	43	 
	SECTION 7.04. Lender Credit Decision
	 	 	43	 
	SECTION 7.05. Indemnification
	 	 	43	 
	SECTION 7.06. Successor Agent
	 	 	43	 
	SECTION 7.07. Documentation Agent and Syndication Agent
	 	 	44	 
	 
	 	 	 	 	ARTICLE VIII
	 	 	 	 
	 
	 	 	 	MISCELLANEOUS
	 	 	 	 
	 
	SECTION 8.01. Amendments, Etc
	 	 	44	 
	SECTION 8.02. Notices, Etc
	 	 	44	 
	SECTION 8.03. No Waiver; Remedies
	 	 	45	 
	SECTION 8.04. Costs and Expenses
	 	 	45	 
	SECTION 8.05. Right of Set-off
	 	 	46	 
	SECTION 8.06. Binding Effect
	 	 	46	 
	SECTION 8.07. Assignments and Participations
	 	 	46	 
	SECTION 8.08. Confidentiality
	 	 	49	 
	SECTION 8.09. Governing Law
	 	 	49	 
	SECTION 8.10. Execution in Counterparts
	 	 	49	 

ii

 

	 	 	 	 	 	 	 	 	 
	SECTION 8.11. Jurisdiction, Etc
	 	 	49	 
	SECTION 8.12. Waiver of Jury Trial
	 	 	50	 

iii

 

Schedules

Schedule I — List of Applicable Lending Offices

Schedule 5.02(a) — Existing Liens

	 	 	 	 	 
	Exhibits	 	 	 	 
	 
	Exhibit A-1	 	
-
	 	Form of Revolving Credit Note
	 
	Exhibit A-2	 	
-
	 	Form of Competitive Bid Note
	 
	Exhibit B-1	 	
-
	 	Form of Notice of Revolving Credit Borrowing
	 
	Exhibit B-2	 	
-
	 	Form of Notice of Competitive Bid Borrowing
	 
	Exhibit C	 	
-
	 	Form of Assignment and Acceptance
	 
	Exhibit D	 	
-
	 	Form of Assumption Agreement
	 
	Exhibit E	 	
-
	 	Form of Opinion of Counsel for the Borrower

iv

 

364-DAY CREDIT AGREEMENT

Dated as of August 14, 2002

               The Washington Post Company, a Delaware corporation (the “Borrower”), the
banks, financial institutions and other institutional lenders (the “Initial
Lenders”) listed on the signature pages hereof, and Citibank, N.A.
(“Citibank”), as administrative agent (the “Agent”) for the Lenders (as
hereinafter defined), agree as follows:

ARTICLE I

DEFINITIONS AND ACCOUNTING TERMS

               SECTION 1.01. Certain Defined Terms. As used in this Agreement, the
following terms shall have the following meanings (such meanings to be equally
applicable to both the singular and plural forms of the terms defined):

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

		
	 	        “Affiliate” means, as to any Person, any other Person that, directly
or indirectly, controls, is controlled by or is under common control with
such Person or is a director or executive officer of such Person. For
purposes of this definition, the term “control” (including the terms
“controlling”, “controlled by” and “under common control with”) of a
Person means the possession, direct or indirect, of the power to vote 10%
or more of the Voting Stock of such Person or to direct or cause the
direction of the management and policies of such Person, whether through
the ownership of Voting Stock, by contract or otherwise.

		
	 	        “Agent’s Account” means the account of the Agent maintained by the
Agent at Citibank with its office at 388 Greenwich Street, New York, New
York 10013, Account No. 36852248, Attention: Bank Loans Syndications.
	 
	 	        “Applicable Lending Office” means, with respect to each Lender, such
Lender’s Domestic Lending Office in the case of a Base Rate Advance and
such Lender’s Eurodollar Lending Office in the case of a Eurodollar Rate
Advance and, in the case of a Competitive Bid Advance, the office of such
Lender notified by such Lender to the Agent as its Applicable Lending
Office with respect to such Competitive Bid Advance.
	 
	 	        “Applicable Margin” means as of any date, (a) for Base Rate
Advances, 0% per annum and (b) for Eurodollar Rate Advances, a percentage
per annum determined by reference to the Performance Level in effect on
such date as set forth below:

 

 

	 	 	 	 	 	 	 	 	 	 
	 	 	 	Applicable Margin for	 	Applicable Margin for
	 	 	 	Eurodollar Rate Advances	 	Eurodollar Rate Advances
	 	 	 	Prior to Term Loan	 	On and After Term Loan
	Performance Level	 	Conversion Date	 	Conversion Date
	
	 	
	 	

	I
	 	 	0.200	%	 	 	0.375	%
	II
	 	 	0.240	%	 	 	0.425	%
	III
	 	 	0.280	%	 	 	0.475	%
	IV
	 	 	0.320	%	 	 	0.525	%
	V
	 	 	0.500	%	 	 	0.750	%

		
	 	        “Applicable Percentage” means, as of any date, a percentage per
annum determined by reference to the Performance Level in effect on such
date as set forth below:

	 	 	 	 	 	 
	Performance Level	 	Applicable Percentage
	
	 	

	I
	 	 	0.050	%
	II
	 	 	0.060	%
	III
	 	 	0.070	%
	IV
	 	 	0.080	%
	V
	 	 	0.125	%

		
	 	        “Applicable Utilization Fee” means, as of any date on which the
aggregate Advances exceed 50% of the Commitments, a percentage per annum
determined by reference to the Performance Level in effect on such date
as set forth below:

	 	 	 	 	 	 
	Performance Level	 	Applicable Utilization Fee
	
	 	

	I
	 	 	0.050	%
	II
	 	 	0.050	%
	III
	 	 	0.050	%
	IV
	 	 	0.050	%
	V
	 	 	0.125	%

		
	 	        “Assignment and Acceptance” means an assignment and acceptance
entered into by a Lender and an Eligible Assignee, accepted and approved
by the Agent and approved by the Borrower, in substantially the form of
Exhibit C hereto.

2

 

		
	 	        “Assuming Lender” means an Eligible Assignee not previously a Lender
that becomes a Lender hereunder pursuant to either Section 2.05(b) or
Section 2.17.
	 
	 	        “Assumption Agreement” means an agreement in substantially the form
of Exhibit D hereto by which an Eligible Assignee agrees to become a
Lender hereunder pursuant to either Section 2.05(b) or Section 2.17, in
each case agreeing to be bound by all obligations of a Lender hereunder.
	 
	 	        “Base Rate” means a fluctuating interest rate per annum in effect
from time to time, which rate per annum shall at all times be equal to
the higher of:

		
	 	        (a)     the rate of interest announced publicly by Citibank in New
York, New York, from time to time, as Citibank’s base rate; and
	 
	 	        (b)     1/2 of one percent per annum above the Federal Funds Rate.

		
	 	        “Base Rate Advance” means a Revolving Credit Advance that bears
interest as provided in Section 2.07(a)(i).
	 
	 	        “Borrowing” means a Revolving Credit Borrowing or a Competitive Bid
Borrowing.
	 
	 	        “Business Day” means a day of the year on which banks are not
required or authorized by law to close in New York City and, if the
applicable Business Day relates to any Eurodollar Rate Advances, on which
dealings are carried on in the London interbank market.
	 
	 	        “Commitment” means, with respect to any Lender at any time (i) the
amount set forth opposite such Lender’s name on the signature pages
hereof, (ii) if such Lender has become a Lender hereunder pursuant to an
Assumption Agreement, the amount set forth as its Commitment in such
Assumption Agreement or (iii) if such Lender has entered into one or more
Assignments and Acceptances, the amount set forth for such Lender in the
Register maintained by the Agent pursuant to Section 8.07(d), as such
amount may be increased, terminated or reduced, as the case may be, at or
prior to such time pursuant to Section 2.05.
	 
	 	        “Commitment Date” has the meaning specified in Section 2.05(b)(i).
	 
	 	        “Commitment Increase” has the meaning specified in Section
2.05(b)(i).
	 
	 	        “Competitive Bid Advance” means an advance by a Lender to the
Borrower as part of a Competitive Bid Borrowing resulting from the
competitive bidding procedure described in Section 2.03 and refers to a
Fixed Rate Advance or a LIBO Rate Advance.
	 
	 	        “Competitive Bid Borrowing” means a borrowing consisting of
simultaneous Competitive Bid Advances from each of the Lenders whose
offer to make one or more Competitive Bid Advances as part of such
borrowing has been accepted under the competitive bidding procedure
described in Section 2.03.

3

 

		
	 	        “Competitive Bid Note” means a promissory note of the Borrower
(bearing an original or facsimile signature) payable to the order of any
Lender, in substantially the form of Exhibit A-2 hereto, evidencing the
indebtedness of the Borrower to such Lender resulting from a Competitive
Bid Advance made by such Lender.
	 
	 	        “Confidential Information” means information that the Borrower
furnishes to the Agent or any Lender in a writing designated as
confidential, but does not include any such information that is or
becomes generally available to the public or that is or becomes available
to the Agent or such Lender from a source other than the Borrower that is
not, to the best of the Agent’s or such Lender’s knowledge, acting in
violation of a confidentiality agreement with or for the benefit of the
Borrower.
	 
	 	        “Consenting Lender” has the meaning specified in Section 2.17(b).
	 
	 	        “Consolidated” refers to the consolidation of accounts in accordance
with GAAP.
	 
	 	        “Continuing Directors” means individuals who at the date hereof are
directors of the Borrower and any other director (a) whose election or
nomination was approved by a majority of the then Continuing Directors or
(b) who was nominated by management at a time when Continuing Directors
constituted a majority of the board of directors of the Borrower.
	 
	 	        “Convert”, “Conversion” and “Converted” each refers to a conversion
of Revolving Credit Advances of one Type into Revolving Credit Advances
of the other Type pursuant to Section 2.08 or 2.09.
	 
	 	        “Debt” of any Person means, without duplication, (a) all
indebtedness of such Person for borrowed money, (b) all obligations of
such Person for the deferred purchase price of property or services
(other than trade payables not overdue by more than 120 days 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 obligations of such Person created or arising under
any conditional sale or other title retention agreement with respect to
property acquired by such Person (even though the rights and remedies of
the seller or lender under such agreement in the event of default are
limited to repossession or sale of such property), (e) all obligations of
such Person as lessee under leases that have been or should be, in
accordance with GAAP, recorded as capital leases, (f) all obligations,
contingent or otherwise, of such Person in respect of acceptances,
letters of credit or similar extensions of credit, (g) all Debt of others
referred to in clauses (a) through (f) above or clause (h) below
guaranteed directly or indirectly in any manner by such Person, or in
effect guaranteed directly or indirectly by such Person through an
agreement (1) to pay or purchase such Debt or to advance or supply funds
for the payment or purchase of such Debt, (2) to purchase, sell or lease
(as lessee or lessor) property, or to purchase or sell services,
primarily for the purpose of enabling the debtor to make payment of such
Debt or to assure the holder of such Debt against loss, (3) to supply
funds to or in any other manner invest in the debtor (including any
agreement to pay for property or services irrespective of whether such
property is received or such services are rendered) or (4) otherwise to
assure a creditor against loss, and (h) all Debt

4

 

		
	 	referred to in clauses (a) through (g) above secured by (or for
which the holder of such Debt has an existing right, contingent or
otherwise, to be secured by) any Lien on property (including, without
limitation, accounts and contract rights) owned by such Person, even
though such Person has not assumed or become liable for the payment of
such Debt.
	 
	 	        “Default” means any Event of Default or any event that would
constitute an Event of Default but for the requirement that notice be
given or time elapse or both.
	 
	 	        “Domestic Lending Office” means, with respect to any Initial Lender,
the office of such Lender specified as its “Domestic Lending Office”
opposite its name on Schedule I hereto and, with respect to any other
Lender, the office of such Lender specified as its “Domestic Lending
Office” in the Assumption Agreement or in the Assignment and Acceptance
pursuant to which it became a Lender, or such other office of such Lender
as such Lender may from time to time specify to the Borrower and the
Agent.
	 
	 	        “Downgrade” means, with respect to any Lender, the lowest rating
that has been most recently announced for any class of non-credit
enhanced long-term senior unsecured debt issued by such Lender is lower
than BBB- by S&P or Baa3 by Moody’s.
	 
	 	        “Effective Date” has the meaning specified in Section 3.01.
	 
	 	        “Eligible Assignee” means (a) a Lender; (b) an Affiliate of a
Lender; (c) a commercial bank organized under the laws of the United
States, or any State thereof, and having total assets in excess of
$5,000,000,000; (d) a savings and loan association or savings bank
organized under the laws of the United States, or any State thereof, and
having total assets in excess of $5,000,000,000; (e) a commercial bank
organized under the laws of any other country that is a member of the
Organization for Economic Cooperation and Development or has concluded
special lending arrangements with the International Monetary Fund
associated with its General Arrangements to Borrow or of the Cayman
Islands, or a political subdivision of any such country, and having total
assets in excess of $5,000,000,000 so long as such bank is acting through
a branch or agency located in the United States or in the country in
which it is organized or another country that is described in this clause
(e); (f) the central bank of any country that is a member of the
Organization for Economic Cooperation and Development; and (g) any other
Person approved by the Agent and the Borrower, such approval not to be
unreasonably withheld or delayed; provided, however, that neither the
Borrower nor an Affiliate of the Borrower shall qualify as an Eligible
Assignee.
	 
	 	        “Environmental Action” means any action, suit, demand, demand
letter, claim, notice of non-compliance or violation, notice of liability
or potential liability, consent order or consent agreement relating in
any way to any Environmental Law, Environmental Permit or Hazardous
Materials or arising from alleged injury or threat of injury to health,
safety or the environment, including, without limitation, (a) by any
governmental or regulatory authority for enforcement, cleanup, removal,
response, remedial or other actions or damages and (b) by any
governmental or regulatory authority

5

 

		
	 	or any third party for damages, contribution, indemnification, cost
recovery, compensation or injunctive relief.
	 
	 	        “Environmental Law” means any federal, state, local or foreign
statute, law, ordinance, rule, regulation, code, order, judgment or
decree relating to pollution or protection of the environment, health,
safety or natural resources, including, without limitation, those
relating to the use, handling, transportation, treatment, storage,
disposal, release or discharge of Hazardous Materials.
	 
	 	        “Environmental Permit” means any permit, approval, identification
number, license or other authorization required under any Environmental
Law.
	 
	 	        “ERISA” means the Employee Retirement Income Security Act of 1974,
as amended from time to time, and the regulations promulgated and rulings
issued thereunder.
	 
	 	        “ERISA Affiliate” means any Person that for purposes of Title IV of
ERISA is a member of the Borrower’s controlled group, or under common
control with the Borrower, within the meaning of Section 414(b) or (c) of
the Internal Revenue Code or, solely for purposes of Sections 302 and 303
of ERISA and Section 412 of the Internal Revenue Code, is treated as a
single employer under Section 414(b), (c), (m) and (o) of the Internal
Revenue Code.
	 
	 	        “ERISA Event” means (a) (i) the occurrence of a reportable event,
within the meaning of Section 4043 of ERISA, with respect to any Plan
unless the 30-day notice requirement with respect to such event has been
waived by the PBGC, or (ii) the requirements of subsection (1) of Section
4043(b) of ERISA (without regard to subsection (2) of such Section) are
met with a contributing sponsor, as defined in Section 4001(a)(13) of
ERISA, of a Plan, and an event described in paragraph (9), (10), (11),
(12) or (13) of Section 4043(c) of ERISA is reasonably expected to occur
with respect to such Plan within the following 30 days; (b) the
application for a minimum funding waiver with respect to a Plan; (c) the
provision by the administrator of any Plan of a notice of intent to
terminate such Plan pursuant to Section 4041(a)(2) of ERISA (including
any such notice with respect to a plan amendment referred to in Section
4041(e) of ERISA); (d) the cessation of operations at a facility of the
Borrower or any ERISA Affiliate in the circumstances described in Section
4062(e) of ERISA; (e) the withdrawal by the Borrower or any ERISA
Affiliate from a Multiple Employer Plan during a plan year for which it
was a substantial employer, as defined in Section 4001(a)(2) of ERISA;
(f) the conditions for the imposition of a lien under Section 302(f) of
ERISA shall have been met with respect to any Plan; (g) the adoption of
an amendment to a Plan requiring the provision of security to such Plan
pursuant to Section 307 of ERISA; or (h) the institution by the PBGC of
proceedings to terminate a Plan pursuant to Section 4042 of ERISA, or the
occurrence of any event or condition described in Section 4042 of ERISA
that constitutes grounds for the termination of, or the appointment of a
trustee to administer, a Plan.

6

 

		
	 	        “Eurocurrency Liabilities” has the meaning assigned to that term in
Regulation D of the Board of Governors of the Federal Reserve System, as
in effect from time to time.
	 
	 	        “Eurocurrency Reserve Requirements” means the aggregate of the
maximum reserve percentages (including any marginal, special, emergency
or supplemental reserves) expressed as a decimal established by the Board
of Governors of the Federal Reserve System and any other banking
authority to which any Lender is subject and applicable to Eurocurrency
Liabilities, or any similar category of assets or liabilities relating to
eurocurrency fundings. Eurocurrency Reserve Requirements shall be
adjusted automatically on and as of the effective date of any change in
any reserve percentage.
	 
	 	        “Eurodollar Lending Office” means, with respect to any Initial
Lender, the office of such Lender specified as its “Eurodollar Lending
Office” opposite its name on Schedule I hereto and, with respect to any
other Lender, the office of such Lender specified as its “Eurodollar
Lending Office” in the Assumption Agreement or in the Assignment and
Acceptance pursuant to which it became a Lender (or, if no such office is
specified, its Domestic Lending Office), or such other office of such
Lender as such Lender may from time to time specify to the Borrower and
the Agent.
	 
	 	        “Eurodollar Rate” means, for any Interest Period for each Eurodollar
Rate Advance comprising part of the same Revolving Credit Borrowing, an
interest rate per annum equal to the average (rounded upward to the
nearest whole multiple of 1/16 of 1% per annum, if such average is not
such a multiple) of the rate per annum at which deposits in U.S. dollars
are offered to the principal office of each of the Reference Banks in
London, England by prime banks in the London interbank market at 11:00
A.M. (London time) two Business Days before the first day of such
Interest Period in an amount substantially equal to such Reference Bank’s
Eurodollar Rate Advance comprising part of such Revolving Credit
Borrowing to be outstanding during such Interest Period and for a period
equal to such Interest Period. The Eurodollar Rate for any Interest
Period for each Eurodollar Rate Advance comprising part of the same
Revolving Credit Borrowing shall be determined by the Agent on the basis
of applicable rates furnished to and received by the Agent from the
Reference Banks two Business Days before the first day of such Interest
Period, subject, however, to the provisions of Section 2.08.
	 
	 	        “Eurodollar Rate Advance” means a Revolving Credit Advance that
bears interest as provided in Section 2.07(a)(ii).
	 
	 	        “Events of Default” has the meaning specified in Section 6.01.
	 
	 	        “Extension Date” has the meaning specified in Section 2.17(b).
	 
	 	        “Federal Funds Rate” means, for any period, a fluctuating interest
rate per annum equal for each day during such period to the weighted
average of the rates on overnight Federal funds transactions with members
of the Federal Reserve System arranged by Federal funds brokers, as
published for such day (or, if such day is not a Business Day, for the
next preceding Business Day) by the Federal Reserve Bank of New York, or,
if such rate is not so published for any day that is a Business Day, the
average of the

7

 

		
	 	quotations for such day on such transactions received by the Agent
from three Federal funds brokers of recognized standing selected by it
with the consent of the Borrower.
	 
	 	        “Fixed Rate Advances” has the meaning specified in Section
2.03(a)(i).
	 
	 	        “GAAP” has the meaning specified in Section 1.03.
	 
	 	        “Graham Interests” shall mean Donald E. Graham and his siblings,
their descendants and any relative by marriage of the foregoing, and any
trust for the benefit of any of the foregoing whether as an income or
residual beneficiary.
	 
	 	        “Hazardous Materials” means (a) petroleum and petroleum products,
byproducts or breakdown products, radioactive materials,
asbestos-containing materials, polychlorinated biphenyls and radon gas
and (b) any other chemicals, materials or substances designated,
classified or regulated as hazardous or toxic under any Environmental Law
and any pollutant or contaminant regulated under the Clean Water Act, 33
U.S.C. Sections 1251 et seq., or the Clean Air Act, 42 U.S.C. Sections
7401 et seq.
	 
	 	        “Increase Date” has the meaning specified in Section 2.05(b)(i).
	 
	 	        “Increasing Lender” has the meaning specified in Section 2.05(b)(i).
	 
	 	        “Interest Period” means, for each Eurodollar Rate Advance comprising
part of the same Revolving Credit Borrowing and each LIBO Rate Advance
comprising part of the same Competitive Bid Borrowing, the period
commencing on the date of such Eurodollar Rate Advance or LIBO Rate
Advance or the date of the Conversion of any Base Rate Advance into such
Eurodollar Rate Advance and ending on the last day of the period selected
by the Borrower pursuant to the provisions below and, thereafter, with
respect to Eurodollar Rate Advances, each subsequent period commencing on
the last day of the immediately preceding Interest Period and ending on
the last day of the period selected by the Borrower pursuant to the
provisions below. The duration of each such Interest Period shall be
one, two, three or six months or, if available to all the Lenders, nine
or twelve months, as the Borrower may, upon notice received by the Agent
not later than 11:00 A.M. (New York City time) on the third Business Day
prior to the first day of such Interest Period, select; provided,
however, that:

		
	 	        (i)     the Borrower may not select any Interest Period that ends
after the Termination Date in effect at the time of such selection
or, if the Revolving Credit Advances have been converted to a term
loan pursuant to Section 2.06 prior to such selection, that ends
after the Maturity Date;
	 
	 	        (ii)     Interest Periods commencing on the same date for
Eurodollar Rate Advances comprising part of the same Revolving
Credit Borrowing or for LIBO Rate Advances comprising part of the
same Competitive Bid Borrowing shall be of the same duration;

8

 

		
	 	        (iii)    whenever the last day of any Interest Period would
otherwise occur on a day other than a Business Day, the last day of
such Interest Period shall be extended to occur on the next
succeeding Business Day, provided, however, that, if such extension
would cause the last day of such Interest Period to occur in the
next following calendar month, the last day of such Interest Period
shall occur on the next preceding Business Day; and
	 
	 	        (iv)     whenever the first day of any Interest Period occurs on a
day of an initial calendar month for which there is no numerically
corresponding day in the calendar month that succeeds such initial
calendar month by the number of months equal to the number of
months in such Interest Period, such Interest Period shall end on
the last Business Day of such succeeding calendar month.

		
	 	        “Internal Revenue Code” means the Internal Revenue Code of 1986, as
amended from time to time, and the regulations promulgated and rulings
issued thereunder.
	 
	 	        “Lenders” means the Initial Lenders, each Assuming Lender that shall
become a party hereto pursuant to either Section 2.05(b) or Section 2.17
and each Person that shall become a party hereto pursuant to Section
8.07.
	 
	 	        “LIBO Rate” means, for any Interest Period for all LIBO Rate
Advances comprising part of the same Competitive Bid Borrowing, an
interest rate per annum equal to the average (rounded upward to the
nearest whole multiple of 1/16 of 1% per annum, if such average is not
such a multiple) of the rate per annum at which deposits in U.S. dollars
are offered to the principal office of each of the Reference Banks in
London, England by prime banks in the London interbank market at 11:00
A.M. (London time) two Business Days before the first day of such
Interest Period in an amount substantially equal to the amount that would
be the Reference Banks’ respective ratable shares of such Borrowing if
such Borrowing were to be a Revolving Credit Borrowing to be outstanding
during such Interest Period and for a period equal to such Interest
Period. The LIBO Rate for any Interest Period for each LIBO Rate Advance
comprising part of the same Competitive Bid Borrowing shall be determined
by the Agent on the basis of applicable rates furnished to and received
by the Agent from the Reference Banks two Business Days before the first
day of such Interest Period, subject, however, to the provisions of
Section 2.08.
	 
	 	        “LIBO Rate Advances” has the meaning specified in Section
2.03(a)(i).
	 
	 	        “Lien” means any lien, security interest or other charge or
encumbrance of any kind, or any other type of preferential arrangement,
including, without limitation, the lien or retained security title of a
conditional vendor and any easement, right of way or other encumbrance on
title to real property.
	 
	 	        “Margin Stock” has the meaning assigned to such term under
Regulation U of the Board of Governors of the Federal Reserve System of
the United States as from time to time in effect and all official rulings
and interpretations thereunder or thereof.

9

 

		
	 	        “Material Adverse Change” means any material adverse change in the
business, financial condition or results of operations of the Borrower
and its Subsidiaries taken as a whole.
	 
	 	        “Material Adverse Effect” means a material adverse effect on (a) the
business, financial condition or results of operations of the Borrower
and its Subsidiaries taken as a whole, (b) the rights and remedies of the
Agent or any Lender under this Agreement or any Note or (c) the ability
of the Borrower to perform its obligations under this Agreement or any
Note.
	 
	 	        “Maturity Date” means the earlier of (a) the first anniversary of
the Termination Date and (b) the date of termination in whole of the
aggregate Commitments pursuant to Section 2.05 or 6.01.
	 
	 	        “Moody’s” means Moody’s Investors Service, Inc.
	 
	 	        “Multiemployer Plan” means a multiemployer plan, as defined in
Section 4001(a)(3) of ERISA, to which the Borrower or any ERISA Affiliate
is making or accruing an obligation to make contributions, or has within
any of the preceding five plan years made or accrued an obligation to
make contributions.
	 
	 	        “Multiple Employer Plan” means a single employer plan, as defined in
Section 4001(a)(15) of ERISA, that (a) is maintained for employees of the
Borrower or any ERISA Affiliate and at least one Person other than the
Borrower and the ERISA Affiliates or (b) was so maintained and in respect
of which the Borrower or any ERISA Affiliate could have liability under
Section 4064 or 4069 of ERISA in the event such plan has been or were to
be terminated.
	 
	 	        “Non-Consenting Lender” has the meaning specified in Section
2.17(b).
	 
	 	        “Non-Recourse Debt” shall mean Debt of the Borrower or its
Subsidiaries incurred (a) as to which neither the Borrower nor any of its
Subsidiaries (i) provides credit support (including any undertaking,
agreement or instrument which would constitute Debt) or has given or made
other written assurances regarding repayment or the maintenance of
capital or liquidity except such assurances as may be approved by the
Required Lenders (such approval not to be unreasonably withheld or
delayed), (ii) is directly or indirectly liable or (iii) constitutes the
lender and (b) the obligees of which will have recourse solely to certain
identified assets (the loss of which would not reasonably be expected to
have a Material Adverse Effect) for repayment of the principal of and
interest on such Debt and any fees, indemnities, expenses, reimbursements
or other amounts of whatever nature accrued or payable in connection with
such Debt.
	 
	 	        “Note” means a Revolving Credit Note or a Competitive Bid Note.
	 
	 	        “Notice of Competitive Bid Borrowing” has the meaning specified in
Section 2.03(a).

10

 

		
	 	        “Notice of Revolving Credit Borrowing” has the meaning specified in
Section 2.02(a).
	 
	 	        “PBGC” means the Pension Benefit Guaranty Corporation (or any
successor).
	 
	 	        “Performance Level” means, as of any date of the determination, the
level set forth below as then in effect, as determined in accordance with
the following provisions of this definition:

	 	 	 
	Level I:	 	
Public Debt Rating of not lower than AA- by S&P or not lower than Aa3 by Moody’s.
 
	Level II:	 	
Public Debt Rating of lower than Level I but not lower than A+ by S&P or A1 by Moody’s.
 
	Level III:	 	
Public Debt Rating of lower than Level II but not lower than A by S&P or A2 by Moody’s.
 
	Level IV:	 	
Public Debt Rating of lower than Level III but not lower than A- by S&P and A3 by Moody’s.
 
	Level V:	 	
Public Debt Rating of lower than Level IV.

		
	 	For purposes of the foregoing, (a) if only one of S&P and Moody’s shall
have in effect a Public Debt Rating, the Performance Level shall be
determined by reference to the available rating and (b) if the Public
Debt Ratings established by S&P and Moody’s shall fall within different
Performance Levels, the Performance Level shall be based upon the higher
rating, provided that if the lower of such ratings is more than one level
below the higher of such ratings, the Performance Level shall be based on
the level immediately above such lower rating.
	 
	 	        “Permitted Liens” means any of the following:
	 
	 	        (a)     Liens for taxes, assessments and governmental charges or levies
to the extent not required to be paid under Section 5.01(b) hereof;
	 
	 	        (b)     Liens imposed by law, such as materialmen’s, mechanics’,
carriers’, workmen’s and repairmen’s Liens and other similar Liens
arising in the ordinary course of business securing obligations (other
than Debt) that (i) are not overdue for a period of more than 120 days or
(ii) are being contested in good faith and by proper proceedings and as
to which appropriate reserves are being maintained in accordance with
GAAP;
	 
	 	        (c)     Pledges or deposits to secure obligations under workers’
compensation laws or similar legislation or to secure public or statutory
obligations;
	 
	 	        (d)     Liens securing the performance of or payment in respect of,
bids, tenders, government contracts (other than for the repayment of
Debt), surety and appeal bonds and other obligations of a similar nature
incurred in the ordinary course of business; and

11

 

		
	 	        (e)     Easements, rights of way and other encumbrances on title to real
property that do not materially adversely affect the use of such property
for its present purposes.
	 
	 	        “Person” means an individual, partnership, corporation (including a
business trust), joint stock company, trust, unincorporated association,
joint venture, limited liability company or other entity, or a government
or any political subdivision or agency thereof.
	 
	 	        “Plan” means a Single Employer Plan or a Multiple Employer Plan
subject to the provisions of Title IV of ERISA or Section 412 of the
Internal Revenue Code or Section 302 of ERISA.
	 
	 	        “Pro Rata Share” of any amount means, with respect to any Lender at
any time, the product of such amount times a fraction the numerator of
which is the amount of such Lender’s Commitment at such time and the
denominator of which is the aggregate of the Commitments of the Lenders
at such time.
	 
	 	        “Public Debt Rating” means, as of any date, the lowest rating that
has been most recently announced by either S&P or Moody’s, as the case
may be, for any class of non-credit enhanced long-term senior unsecured
debt issued by the Borrower. For purposes of the foregoing, (a) if any
rating established by S&P or Moody’s shall be changed, such change shall
be effective as of the date on which such change is first announced
publicly by the rating agency making such change; and (b) if S&P or
Moody’s shall change the basis on which ratings are established, each
reference to the Public Debt Rating announced by S&P or Moody’s, as the
case may be, shall refer to the then equivalent rating by S&P or Moody’s,
as the case may be.
	 
	 	        “Reference Banks” means Citibank, SunTrust Bank and JPMorgan Chase
Bank.
	 
	 	        “Register” has the meaning specified in Section 8.07(d).
	 
	 	        “Required Lenders” means at any time Lenders owed at least a
majority in interest of the then aggregate unpaid principal amount of the
Revolving Credit Advances owing to Lenders or, if no such principal
amount is then outstanding, Lenders having at least a majority in
interest of the Commitments.
	 
	 	        “Revolving Credit Advance” means an advance by a Lender to the
Borrower as part of a Revolving Credit Borrowing and refers to a Base
Rate Advance or a Eurodollar Rate Advance (each of which shall be a
“Type” of Revolving Credit Advance).
	 
	 	        “Revolving Credit Borrowing” means a borrowing consisting of
simultaneous Revolving Credit Advances of the same Type made by each of
the Lenders pursuant to Section 2.01.
	 
	 	        “Revolving Credit Note” means a promissory note of the Borrower
(bearing an original or facsimile signature) payable to the order of any
Lender, in substantially the form of Exhibit A-1 hereto, evidencing the
aggregate indebtedness of the Borrower to such Lender resulting from the
Revolving Credit Advances made by such Lender.

12

 

		
	 	        “S&P” means Standard & Poor’s Ratings Group, a division of The
McGraw-Hill Companies, Inc.
	 
	 	        “Shareholders’ Equity” means “shareholders’ equity” as such term is
construed in accordance with GAAP and as reported in the Borrower’s
reports and registration statements filed with the Securities and
Exchange Commission or any national securities exchange.
	 
	 	        “Significant Subsidiary” shall mean any Subsidiary that would be a
“significant subsidiary” within the meaning of Rule 1-02 of the SEC’s
Regulation S-X.
	 
	 	        “Single Employer Plan” means a single employer plan, as defined in
Section 4001(a)(15) of ERISA, that (a) is maintained for employees of the
Borrower or any ERISA Affiliate and no Person other than the Borrower
and the ERISA Affiliates or (b) was so maintained and in respect of which
the Borrower or any ERISA Affiliate could have liability under Section
4069 of ERISA in the event such plan has been or were to be terminated.
	 
	 	        “Subsidiary” of any Person means any corporation, partnership, joint
venture, limited liability company, trust or estate of which (or in
which) more than 50% of (a) the issued and outstanding capital stock
having ordinary voting power to elect a majority of the Board of
Directors of such corporation (irrespective of whether at the time
capital stock of any other class or classes of such corporation shall or
might have voting power upon the occurrence of any contingency), (b) the
interest in the capital or profits of such limited liability company,
partnership or joint venture or (c) the beneficial interest in such trust
or estate is at the time directly or indirectly owned or controlled by
such Person, by such Person and one or more of its other Subsidiaries or
by one or more of such Person’s other Subsidiaries.
	 
	 	        “Term Loan Conversion Date” means the Termination Date on which all
Revolving Credit Advances outstanding on such date are converted into a
term loan pursuant to Section 2.06.
	 
	 	        “Term Loan Election” has the meaning specified in Section 2.06.
	 
	 	        “Termination Date” means the earlier of (a) August 13, 2003, subject
to the extension thereof pursuant to Section 2.17 and (b) the date of
termination in whole of the Commitments pursuant to Section 2.05 or 6.01;
provided, however, that the Termination Date of any Lender that is a
Non-Consenting Lender to any requested extension pursuant to Section 2.17
shall be the Termination Date in effect immediately prior to the
applicable Extension Date for all purposes of this Agreement.
	 
	 	        “Unused Commitment” means, with respect to any Lender at any time,
(a) such Lender’s Commitment at such time minus (b) the sum of (i) the
aggregate principal amount of all Revolving Credit Advances made by such
Lender and outstanding at such time, plus (ii) such Lender’s Pro Rata
Share of the aggregate principal amount of the Competitive Bid Advances
then outstanding.

13

 

		
	 	        “Voting Stock” means capital stock issued by a corporation, or
equivalent interests in any other Person, the holders of which are
ordinarily, in the absence of contingencies, entitled to vote for the
election of not less than a majority of the directors (or persons
performing similar functions) of such Person, even if the right so to
vote has been suspended by the happening of such a contingency.

               SECTION 1.02. Computation of Time Periods. In this Agreement in the
computation of periods of time from a specified date to a later specified date,
the word “from” means “from and including” and the words “to” and “until” each
mean “to but excluding”.

               SECTION 1.03. Accounting Terms. All terms of an accounting or financial nature
shall be construed in accordance with generally accepted accounting principles
(“GAAP”), as in effect from time to time; provided, however, that if the
Borrower notifies the Agent that the Borrower wishes to amend any covenant in
Article V or any related definition to eliminate the effect of any change in
GAAP occurring after the date of this Agreement on the operation of such
covenant, or if the Agent notifies the Borrower that the Required Lenders wish
to amend Article V or any related definition for such purpose, then the
Borrower’s compliance with such covenant shall be determined on the basis of
GAAP in effect immediately before the relevant change in GAAP became effective,
until either such notice is withdrawn or such covenant is amended in a manner
satisfactory to the Borrower and the Required Lenders.

ARTICLE II

AMOUNTS AND TERMS OF THE ADVANCES

               SECTION 2.01. The Revolving Credit Advances. Each Lender severally
agrees, on the terms and conditions hereinafter set forth, to make Revolving
Credit Advances to the Borrower from time to time on any Business Day during
the period from the Effective Date until the Termination Date in an amount for
each such Advance not to exceed such Lender’s Unused Commitment. Each
Revolving Credit Borrowing shall be in an aggregate amount of $5,000,000 or an
integral multiple of $1,000,000 in excess thereof (or, if less, an aggregate
amount equal to the amount by which the aggregate amount of a proposed
Competitive Bid Borrowing requested by the Borrower exceeds the aggregate
amount of Competitive Bid Advances offered to be made by the Lenders and
accepted by the Borrower in respect of such Competitive Bid Borrowing, if such
Competitive Bid Borrowing is made on the same date as such Revolving Credit
Borrowing) and shall consist of Revolving Credit Advances of the same Type made
on the same day by the Lenders ratably according to their respective
Commitments. Within the limits of each Lender’s Unused Commitment in effect
from time to time, the Borrower may borrow under this Section 2.01, prepay
pursuant to Section 2.10 and reborrow under this Section 2.01.

               SECTION 2.02. Making the Revolving Credit Advances. (a) Each Revolving
Credit Borrowing shall be made on notice, given not later than 11:00 A.M. (New
York City time) on the third Business Day prior to the date of the proposed
Revolving Credit Borrowing in the case of a Revolving Credit Borrowing
consisting of Eurodollar Rate Advances, or the date of the proposed Revolving
Credit Borrowing in the case of a Revolving Credit Borrowing consisting of Base
Rate Advances, by the Borrower to the Agent, which shall give to each

14

 

 Lender prompt notice thereof by telecopier or telex. Each such notice of
a Revolving Credit Borrowing (a “Notice of Revolving Credit Borrowing”) shall
be by telephone, confirmed at once in writing, or telecopier or telex in
substantially the form of Exhibit B-1 hereto, specifying therein the requested
(i) date of such Revolving Credit Borrowing, (ii) Type of Advances comprising
such Revolving Credit Borrowing, (iii) aggregate amount of such Revolving
Credit Borrowing, and (iv) in the case of a Revolving Credit Borrowing
consisting of Eurodollar Rate Advances, initial Interest Period for each such
Revolving Credit Advance. Each Lender shall, before 1:00 P.M. (New York City
time) on the date of such Revolving Credit Borrowing, make available for the
account of its Applicable Lending Office to the Agent at the Agent’s Account,
in same day funds, such Lender’s ratable portion of such Revolving Credit
Borrowing. After the Agent’s receipt of such funds and upon fulfillment of the
applicable conditions set forth in Article III, the Agent will make such funds
available to the Borrower at the Agent’s address referred to in Section 8.02.

               (b)     Anything in subsection (a) above to the contrary notwithstanding, (i)
the Borrower may not select Eurodollar Rate Advances for any Revolving Credit
Borrowing if the aggregate amount of such Revolving Credit Borrowing is less
than $10,000,000 or if the obligation of the Lenders to make Eurodollar Rate
Advances shall then be suspended pursuant to Section 2.08 or 2.12 and (ii) the
Eurodollar Rate Advances may not be outstanding as part of more than fifteen
separate Revolving Credit Borrowings.

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

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

15

 

 Lender’s Revolving Credit Advance as part of such Revolving Credit
Borrowing for purposes of this Agreement.

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

               SECTION 2.03. The Competitive Bid Advances. (a) Each Lender severally
agrees that the Borrower may make Competitive Bid Borrowings under this Section
2.03 from time to time on any Business Day during the period from the date
hereof until the date occurring 30 days prior to the Termination Date in the
manner set forth below; provided that the amount of each Competitive Bid
Borrowing shall not exceed the aggregate amount of the Unused Commitments of
the Lenders on such Business Day.

		
	 	        (i)     The Borrower may request a Competitive Bid Borrowing under this
Section 2.03 by delivering to the Agent, by telecopier or telex, a notice
of a Competitive Bid Borrowing (a “Notice of Competitive Bid Borrowing”),
in substantially the form of Exhibit B-2 hereto, specifying therein the
requested (u) date of such proposed Competitive Bid Borrowing, (v)
aggregate amount of such proposed Competitive Bid Borrowing, (w) maturity
date for repayment of each Advance to be made as part of such Competitive
Bid Borrowing (which maturity date may not be earlier than the date
occurring 30 days after the date of such Competitive Bid Borrowing or
later than the earlier of (I) 360 days after the date of such Competitive
Bid Borrowing and (II) the Termination Date), (x) in the case of a
Competitive Bid Advance consisting of LIBO Rate Advances, the Interest
Period thereof, (y) interest payment date or dates relating thereto, and
(z) other terms (if any) to be applicable to such Competitive Bid
Borrowing, not later than 10:00 A.M. (New York City time) (A) at least
one Business Day prior to the date of the proposed Competitive Bid
Borrowing, if the Borrower shall specify in the Notice of Competitive Bid
Borrowing that the rates of interest to be offered by the Lenders shall
be fixed rates per annum (the Advances comprising any such Competitive
Bid Borrowing being referred to herein as “Fixed Rate Advances”) and (B)
at least four Business Days prior to the date of the proposed Competitive
Bid Borrowing, if the Borrower shall instead specify in the Notice of
Competitive Bid Borrowing that the rates of interest be offered by the
Lenders are to be based on the LIBO Rate (the Advances comprising such
Competitive Bid Borrowing being referred to herein as “LIBO Rate
Advances”). Each Notice of Competitive Bid Borrowing shall be
irrevocable and binding on the Borrower. The Agent shall in turn
promptly notify each Lender of each request for a Competitive Bid
Borrowing received by it from the Borrower by sending such Lender a copy
of the related Notice of Competitive Bid Borrowing.
	 
	 	        (ii)     Each Lender may, if, in its sole discretion, it elects to do
so, irrevocably offer to make one or more Competitive Bid Advances to the
Borrower as part of such proposed Competitive Bid Borrowing at a rate or
rates of interest specified by such Lender in its sole discretion, by
notifying the Agent (which shall give prompt notice

16

 

		
	 	thereof to the Borrower), before 9:30 A.M. (New York City time) on
the date of such proposed Competitive Bid Borrowing, in the case of a
Competitive Bid Borrowing consisting of Fixed Rate Advances and before
10:00 A.M. (New York City time) three Business Days before the date of
such proposed Competitive Bid Borrowing, in the case of a Competitive Bid
Borrowing consisting of LIBO Rate Advances, of the minimum amount and
maximum amount of each Competitive Bid Advance which such Lender would be
willing to make as part of such proposed Competitive Bid Borrowing (which
amounts may, subject to the proviso to the first sentence of this Section
2.03(a), exceed such Lender’s Commitment), the rate or rates of interest
therefor and such Lender’s Applicable Lending Office with respect to such
Competitive Bid Advance; provided that if the Agent in its capacity as a
Lender shall, in its sole discretion, elect to make any such offer, it
shall notify the Borrower of such offer at least 30 minutes before the
time and on the date on which notice of such election is to be given to
the Agent by the other Lenders. If any Lender shall elect not to make
such an offer, such Lender shall so notify the Agent, before 10:00 A.M.
(New York City time) on the date on which notice of such election is to
be given to the Agent by the other Lenders, and such Lender shall not be
obligated to, and shall not, make any Competitive Bid Advance as part of
such Competitive Bid Borrowing; provided that the failure by any Lender
to give such notice shall not cause such Lender to be obligated to make
any Competitive Bid Advance as part of such proposed Competitive Bid
Borrowing.
	 
	 	        (iii)     The Borrower shall, in turn, before 10:30 A.M. (New York City
time) on the date of such proposed Competitive Bid Borrowing, in the case
of a Competitive Bid Borrowing consisting of Fixed Rate Advances and
before 11:00 A.M. (New York City time) three Business Days before the
date of such proposed Competitive Bid Borrowing, in the case of a
Competitive Bid Borrowing consisting of LIBO Rate Advances, either:

		
	 	             (x)     cancel such Competitive Bid Borrowing by giving the Agent
notice to that effect, or
	 
	 	             (y)     accept one or more of the offers made by any Lender or
Lenders pursuant to paragraph (ii) above, in its sole discretion,
by giving notice to the Agent of the amount of each Competitive Bid
Advance (which amount shall be equal to or greater than the minimum
amount, and equal to or less than the maximum amount, notified to
the Borrower by the Agent on behalf of such Lender for such
Competitive Bid Advance pursuant to paragraph (ii) above) to be
made by each Lender as part of such Competitive Bid Borrowing, and
reject any remaining offers made by Lenders pursuant to paragraph
(ii) above by giving the Agent notice to that effect. The Borrower
shall accept the offers made by any Lender or Lenders to make
Competitive Bid Advances in order of the lowest to the highest
rates of interest offered by such Lenders. If two or more Lenders
have offered the same interest rate, the amount to be borrowed at
such interest rate will be allocated among such Lenders in
proportion to the amount that each such Lender offered at such
interest rate.

17

 

		
	 	        (iv)     If the Borrower notifies the Agent that such Competitive Bid
Borrowing is cancelled pursuant to paragraph (iii)(x) above, the Agent
shall give prompt notice thereof to the Lenders and such Competitive Bid
Borrowing shall not be made.
	 
	 	        (v)     If the Borrower accepts one or more of the offers made by any
Lender or Lenders pursuant to paragraph (iii)(y) above, the Agent shall
in turn promptly notify (A) each Lender that has made an offer as
described in paragraph (ii) above, of the date and aggregate amount of
such Competitive Bid Borrowing and whether or not any offer or offers
made by such Lender pursuant to paragraph (ii) above have been accepted
by the Borrower, (B) each Lender that is to make a Competitive Bid
Advance as part of such Competitive Bid Borrowing, of the amount of each
Competitive Bid Advance to be made by such Lender as part of such
Competitive Bid Borrowing, and (C) each Lender that is to make a
Competitive Bid Advance as part of such Competitive Bid Borrowing, upon
receipt, that the Agent has received forms of documents appearing to
fulfill the applicable conditions set forth in Article III. Each Lender
that is to make a Competitive Bid Advance as part of such Competitive Bid
Borrowing shall, before 12:00 noon (New York City time) on the date of
such Competitive Bid Borrowing specified in the notice received from the
Agent pursuant to clause (A) of the preceding sentence or any later time
when such Lender shall have received notice from the Agent pursuant to
clause (C) of the preceding sentence, make available for the account of
its Applicable Lending Office to the Agent at the Agent’s Account, in
same day funds, such Lender’s portion of such Competitive Bid Borrowing.
Upon fulfillment of the applicable conditions set forth in Article III
and after receipt by the Agent of such funds, the Agent will make such
funds available to the Borrower at the Agent’s address referred to in
Section 8.02. Promptly after each Competitive Bid Borrowing the Agent
will notify each Lender of the amount of the Competitive Bid Borrowing.
	 
	 	        (vi)     If the Borrower notifies the Agent that it accepts one or more
of the offers made by any Lender or Lenders pursuant to paragraph
(iii)(y) above, such notice of acceptance shall be irrevocable and
binding on the Borrower. The Borrower shall indemnify each Lender
against any loss, cost or expense incurred by such Lender as a result of
any failure to fulfill on or before the date specified in the related
Notice of Competitive Bid Borrowing for such Competitive Bid Borrowing
the applicable conditions set forth in Article III, including, without
limitation, any loss (excluding loss of anticipated profits), cost or
expense incurred by reason of the liquidation or reemployment of deposits
or other funds acquired by such Lender to fund the Competitive Bid
Advance to be made by such Lender as part of such Competitive Bid
Borrowing when such Competitive Bid Advance, as a result of such failure,
is not made on such date.

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

               (c)     Within the limits and on the conditions set forth in this Section
2.03, the Borrower may from time to time borrow under this Section 2.03, repay
or prepay pursuant to

18

 

 subsection (d) below, and reborrow under this Section 2.03, provided that
a Competitive Bid Borrowing shall not be made within one Business Day of the
date of any other Competitive Bid Borrowing.

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

               (e)     The Borrower shall pay interest on the unpaid principal amount of each
Competitive Bid Advance from the date of such Competitive Bid Advance to the
date the principal amount of such Competitive Bid Advance is repaid in full, at
the rate of interest for such Competitive Bid Advance specified by the Lender
making such Competitive Bid Advance in its notice with respect thereto
delivered pursuant to subsection (a)(ii) above, payable on the interest payment
date or dates specified by the Borrower for such Competitive Bid Advance in the
related Notice of Competitive Bid Borrowing delivered pursuant to subsection
(a)(i) above, as provided in the Competitive Bid Note evidencing such
Competitive Bid Advance. The Borrower shall pay interest on the amount of
overdue principal and, to the fullest extent permitted by law, interest in
respect of each Competitive Bid Advance owing to a Lender, payable in arrears
on the date or dates interest is payable thereon, at a rate per annum equal at
all times to 1% per annum above the rate per annum required to be paid on such
Competitive Bid Advance under the terms of the Competitive Bid Note evidencing
such Competitive Bid Advance unless otherwise agreed in such Competitive Bid
Note.

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

               SECTION 2.04. Fees. (a) Facility Fee. The Borrower agrees to pay to the
Agent for the account of each Lender a facility fee on the aggregate amount of
such Lender’s Commitment in effect from time to time from the Effective Date in
the case of each Initial Lender and from the later of the Effective Date and
the effective date specified in the Assumption Agreement or in the Assignment
and Acceptance, as the case may be, pursuant to which it became a Lender in the
case of each other Lender until the Termination Date at a rate per annum equal
to the Applicable Percentage in effect from time to time, payable in arrears
quarterly on the last day of each March, June, September and December,
commencing September 30, 2002, and on the Termination Date.

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

19

 

               SECTION 2.05. Termination, Reduction or Increase of the Commitments. (a)
Termination or Reduction. (i) Optional. The Borrower shall have the right,
upon at least three Business Days’ notice to the Agent, to terminate in whole
or reduce ratably in part the respective Unused Commitments of the Lenders,
provided that each partial reduction shall be in the aggregate amount of
$10,000,000 or an integral multiple of $1,000,000 in excess thereof. The
aggregate amount of the Commitments once reduced as provided in this Section
2.05(a)(i), may not be reinstated, except as provided in Section 2.05(b) below.

		
	 	        (ii)     Mandatory. On the Termination Date, if the Borrower has made
the Term Loan Election in accordance with Section 2.06 prior to such
date, and from time to time thereafter upon each prepayment of the
Revolving Credit Advances, the Commitments of the Lenders shall be
automatically and permanently reduced on a pro rata basis by an amount
equal to the amount by which (A) the aggregate Commitments immediately
prior to such reduction exceed (B) the aggregate unpaid principal amount
of all Revolving Credit Advances outstanding at such time.

               (b)     Increase in Aggregate of the Commitments. (i) The Borrower may at
any time, by notice to the Agent, propose that the aggregate amount of the
Commitments be increased (such aggregate amount being, a “Commitment
Increase”), effective as at a date prior to the Termination Date (an “Increase
Date”) as to which agreement is to be reached by an earlier date specified in
such notice (a “Commitment Date”); provided, however, that (A) the Borrower may
not propose more than two Commitment Increases in any calendar year, (B) the
minimum proposed Commitment Increase per notice shall be $25,000,000, (C) in no
event shall the aggregate amount of the Commitments at any time exceed
$450,000,000, (D) the applicable Performance Level on such Increase Date shall
be Level I, Level II or Level III and (E) no Default shall have occurred and be
continuing on such Increase Date. The Agent shall notify the Lenders thereof
promptly upon its receipt of any such notice. The Agent agrees that it will
cooperate with the Borrower in discussions with the Lenders and other Eligible
Assignees with a view to arranging the proposed Commitment Increase through the
increase of the Commitments of one or more of the Lenders (each such Lender
that is willing to increase its Commitment hereunder being an “Increasing
Lender”) and the addition of one or more other Eligible Assignees as Assuming
Lenders and as parties to this Agreement; provided, however, that it shall be
in each Lender’s sole discretion whether to increase its Commitment hereunder
in connection with the proposed Commitment Increase; and provided further that
the minimum Commitment of each such Assuming Lender that becomes a party to
this Agreement pursuant to this Section 2.05(b), shall be at least equal to
$10,000,000. If any of the Lenders agree to increase their respective
Commitments by an aggregate amount in excess of the proposed Commitment
Increase, the proposed Commitment Increase shall be allocated among such
Lenders in proportion to their respective Commitments immediately prior to the
Increase Date. If agreement is reached on or prior to the applicable
Commitment Date with any Increasing Lenders and Assuming Lenders as to a
Commitment Increase (which may be less than but not greater than specified in
the applicable notice from the Borrower), such agreement to be evidenced by a
notice in reasonable detail from the Borrower to the Agent on or prior to the
applicable Commitment Date, such Assuming Lenders, if any, shall become Lenders
hereunder as of the applicable Increase Date and the Commitments of such
Increasing Lenders and such Assuming Lenders shall become or be, as the case
may be, as of the Increase Date, the amounts specified in such notice; provided
that:

20

 

		
	 	             (x)     the Agent shall have received (with copies for each Lender,
including each such Assuming Lender) by no later than 10:00 A.M. (New
York City time) on the applicable Increase Date (1) certified copies of
resolutions of the Board of Directors of the Borrower approving the
Commitment Increase and (2) an opinion of counsel for the Borrower (which
may be in-house counsel), in substantially the form of Exhibit E hereto;
	 
	 	             (y)     each such Assuming Lender shall have delivered to the Agent, by
no later than 10:00 A.M. (New York City time) on such Increase Date, an
appropriate Assumption Agreement in substantially the form of Exhibit D
hereto, duly executed by such Assuming Lender and the Borrower; and
	 
	 	             (z)     each such Increasing Lender shall have delivered to the Agent
by, no later than 10:00 A.M. (New York City time) on such Increase Date,
(A) its existing Revolving Credit Note and (B) confirmation in writing
satisfactory to the Agent as to its increased Commitment.
	 
	 	             (ii)     In the event that the Agent shall have received notice from the
Borrower as to its agreement to a Commitment Increase on or prior to the
applicable Commitment Date and each of the actions provided for in
clauses (x) through (z) above shall have occurred prior to 10:00 A.M.
(New York City time) on the applicable Increase Date to the satisfaction
of the Agent, the Agent shall notify the Lenders (including any Assuming
Lenders) and the Borrower of the occurrence of such Commitment Increase
by telephone, confirmed at once in writing, telecopier, telex or cable
and in any event no later than 1:00 P.M. (New York City time) on such
Increase Date and shall record in the Register the relevant information
with respect to each Increasing Lender and Assuming Lender. Each
Increasing Lender and each Assuming Lender shall, before 2:00 P.M. (New
York City time) on the applicable Increase Date, make available for the
account of its Applicable Lending Office to the Agent at the Agent’s
Account, in same day funds, in the case of such Assuming Lender, an
amount equal to such Assuming Lender’s ratable portion of the Revolving
Credit Borrowings then outstanding (calculated based on its Commitment as
a percentage of the aggregate Commitments outstanding after giving effect
to the relevant Commitment Increase) and, in the case of such Increasing
Lender, an amount equal to the excess of (i) such Increasing Lender’s
ratable portion of the Revolving Credit Borrowings then outstanding
(calculated based on its Commitment as a percentage of the aggregate
Commitments outstanding after giving effect to the relevant Commitment
Increase) over (ii) such Increasing Lender’s Pro Rata Share of the
Revolving Credit Borrowings then outstanding (calculated based on its
Commitment (without giving effect to the relevant Commitment Increase) as
a percentage of the aggregate Commitments (without giving effect to the
relevant Commitment Increase). After the Agent’s receipt of such funds
from each such Increasing Lender and each such Assuming Lender, the Agent
will promptly thereafter cause to be distributed like funds to the other
Lenders for the account of their respective Applicable Lending Offices in
an amount to each other Lender such that the aggregate amount of the
outstanding Revolving Credit Advances owing to each Lender after giving
effect to such distribution equals such Lender’s Pro Rata Share of the
Revolving Credit Borrowings then outstanding (calculated based on its
Commitment as a percentage of the aggregate Commitments outstanding after
giving effect to the relevant Commitment Increase). Within five Business
Days after the

21

 

		
	 	Borrower receives notice from the Agent, the Borrower, at its own
expense, shall execute and deliver to the Agent, Revolving Credit Notes
payable to the order of each Assuming Lender, if any, and, each
Increasing Lender, dated as of the applicable Increase Date, in a
principal amount equal to such Lender’s Commitment after giving effect to
the relevant Commitment Increase, and substantially in the form of
Exhibit A-1 hereto. The Agent, upon receipt of such Revolving Credit
Notes, shall promptly deliver such Revolving Credit Notes to the
respective Assuming Lenders and Increasing Lenders.
	 
	 	             (iii)     In the event that the Agent shall not have received notice from
the Borrower as to such agreement on or prior to the applicable
Commitment Date or the Borrower shall, by notice to the Agent prior to
the applicable Increase Date, withdraw its proposal for a Commitment
Increase or any of the actions provided for above in clauses (i)(x)
through (i)(z) shall not have occurred by 10:00 A.M. (New York City time)
on the such Increase Date, such proposal by the Borrower shall be deemed
not to have been made. In such event, any actions theretofore taken
under clauses (i)(x) through (i)(z) above shall be deemed to be of no
effect and all the rights and obligations of the parties shall continue
as if no such proposal had been made.

               SECTION 2.06. Repayment of Revolving Credit Advances; Term Loan Election.
The Borrower shall, subject to the next succeeding sentence, repay to the Agent
for the ratable account of the Lenders on the Termination Date the aggregate
principal amount of the Revolving Credit Advances then outstanding. The
Borrower may, upon not less than 15 days’ notice to the Agent, elect (the “Term
Loan Election”) to convert a portion or all of the Revolving Credit Advances
outstanding on the Termination Date in effect at such time into a term loan
which the Borrower shall repay in full ratably to the Lenders on the Maturity
Date; provided that (i) the Term Loan Election may not be exercised if a
Default has occurred and is continuing on the date of notice of the Term Loan
Election or on the date on which the Term Loan Election is to be effected and
(ii) the aggregate principal amount of any portion of the outstanding Revolving
Credit Advances not converted pursuant to the Term Loan Election shall be
repaid on the Termination Date. All Revolving Credit Advances converted into a
term loan pursuant to this Section 2.06 shall continue to constitute Revolving
Credit Advances except that the Borrower may not reborrow pursuant to Section
2.01 after all or any portion of such Revolving Credit Advances have been
prepaid pursuant to Section 2.10.

               SECTION 2.07. Interest on Revolving Credit Advances. (a) Scheduled
Interest. The Borrower shall pay interest on the unpaid principal amount of
each Revolving Credit Advance owing to each Lender from the date of such
Revolving Credit Advance until such principal amount shall be paid in full, at
the following rates per annum:

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

22

 

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

               (b)     Default Interest. The Borrower shall pay interest on (i) overdue
principal of each Revolving Credit Advance owing to each Lender, payable in
arrears on the dates referred to in clause (a)(i) or (a)(ii) above, at a rate
per annum equal at all times to 1% per annum above the rate per annum required
to be paid on such Revolving Credit Advance pursuant to clause (a)(i) or
(a)(ii) above and (ii) to the fullest extent permitted by law, the amount of
any overdue interest, fee or other amount payable hereunder, from the date such
amount shall be due until such amount shall be paid in full, payable in arrears
on the date such amount shall be paid in full and on demand, at a rate per
annum equal at all times to 1% per annum above the rate per annum required to
be paid on Base Rate Advances pursuant to clause (a)(i) above.

               SECTION 2.08. Interest Rate Determination. (a) Each Reference Bank
agrees to furnish to the Agent timely information for the purpose of
determining each Eurodollar Rate and each LIBO Rate. If any one or more of the
Reference Banks shall not furnish such timely information to the Agent for the
purpose of determining any such interest rate, the Agent shall determine such
interest rate on the basis of timely information furnished by the remaining
Reference Banks. The Agent shall give prompt notice to the Borrower and the
Lenders of the applicable interest rate determined by the Agent for purposes of
Section 2.07(a)(i) or (ii), and the rate, if any, furnished by each Reference
Bank for the purpose of determining the interest rate under Section
2.07(a)(ii).

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

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

               (d)     Upon the occurrence and during the continuance of any Event of Default
under Section 6.01(a), (i) each Eurodollar Rate Advance will automatically, on
the last day of the

23

 

 then existing Interest Period therefor, Convert into a Base Rate Advance
and (ii) the obligation of the Lenders to make, or to Convert Advances into,
Eurodollar Rate Advances shall be suspended.

               (e)     If fewer than two Reference Banks furnish timely information to the
Agent for determining the Eurodollar Rate or LIBO Rate for any Eurodollar Rate
Advances or LIBO Rate Advances, as the case may be, the Eurodollar Rate or the
LIBO Rate for such Eurodollar Rate Advance or LIBO Rate Advance, as the case
may be, shall be an interest rate per annum determined by the Agent to be the
offered rate per annum at which deposits in U.S. dollars appears on the
Telerate Markets Page 3750 (or any successor page) as of 11:00 A.M. (London
time), or in the event such offered rate is not available from the Telerate
Markets Page 3750,

		
	 	        (i)     the Agent shall forthwith notify the Borrower and the Lenders
that the interest rate cannot be determined for such Eurodollar Rate
Advances or LIBO Rate Advances, as the case may be,
	 
	 	        (ii)     with respect to Eurodollar Rate Advances, each such Advance
will automatically, on the last day of the then existing Interest Period
therefor, Convert into a Base Rate Advance (or if such Advance is then a
Base Rate Advance, will continue as a Base Rate Advance), and
	 
	 	        (iii)     the obligation of the Lenders to make Eurodollar Rate Advances
or LIBO Rate Advances or to Convert Revolving Credit Advances into
Eurodollar Rate Advances shall be suspended until the Agent shall notify
the Borrower and the Lenders that the circumstances causing such
suspension no longer exist.

               SECTION 2.09. Optional Conversion of Revolving Credit Advances. The
Borrower may on any Business Day, upon notice given to the Agent not later than
11:00 A.M. (New York City time) on the third Business Day prior to the date of
the proposed Conversion and subject to the provisions of Sections 2.08 and
2.12, Convert all Revolving Credit Advances of one Type comprising the same
Borrowing into Revolving Credit Advances of the other Type; provided, however,
that any Conversion of Base Rate Advances into Eurodollar Rate Advances shall
be in an amount not less than the minimum amount specified in Section 2.02(b)
and no Conversion of any Revolving Credit Advances shall result in more
separate Revolving Credit Borrowings than permitted under Section 2.02(b).
Each such notice of a Conversion shall, within the restrictions specified
above, specify (i) the date of such Conversion, (ii) the Revolving Credit
Advances to be Converted, and (iii) if such Conversion is into Eurodollar Rate
Advances, the duration of the initial Interest Period for each such Advance.
Each notice of Conversion shall be irrevocable and binding on the Borrower.

               SECTION 2.10. Optional Prepayments of Revolving Credit Advances. The
Borrower may, in the case of Eurodollar Rate Advances, upon at least two
Business Days’ notice to the Agent, and in the case of Base Rate Advances, upon
notice to the Agent not later than 11:00 A.M. on the date of such proposed
prepayment, stating in each case the proposed date and aggregate principal
amount of the prepayment, and if such notice is given the Borrower shall,
prepay the outstanding principal amount of the Revolving Credit Advances
comprising part of

24

 

the same Revolving Credit Borrowing in whole or ratably in
part, together with accrued interest
to the date of such prepayment on the principal amount prepaid; provided,
however, that (x) each partial prepayment shall be in an aggregate principal
amount of $5,000,000 for any Base Rate Advance or $10,000,000 for any
Eurodollar Rate Advance or, in each case, an integral multiple of $1,000,000 in
excess thereof and (y) in the event of any such prepayment of a Eurodollar Rate
Advance, the Borrower shall be obligated to reimburse the Lenders in respect
thereof pursuant to Section 8.04(c).

               SECTION 2.11. Increased Costs. (a) If, after the date hereof, due to
either (i) the introduction of or any change in or in the interpretation of any
law or regulation or (ii) the compliance with any guideline or request from any
central bank or other governmental authority (whether or not having the force
of law), there shall be any increase in the cost to any Lender (other than in
respect of Eurocurrency Liabilities) of agreeing to make or making, funding or
maintaining Eurodollar Rate Advances (excluding for purposes of this Section
2.11 any such increased costs resulting from (i) Taxes or Other Taxes (as to
which Section 2.14 shall govern) and (ii) changes in the basis of taxation of
overall net income or overall gross income by the United States or by the
foreign jurisdiction or state under the laws of which such Lender is organized
or has its Applicable Lending Office or any political subdivision thereof),
then the Borrower shall from time to time, upon demand by such Lender (with a
copy of such demand to the Agent), pay to the Agent for the account of such
Lender additional amounts sufficient to compensate such Lender for such
increased cost. A certificate as to the amount of such increased cost, setting
forth in reasonable detail the basis therefor and the computation thereof,
submitted to the Borrower and the Agent by such Lender, shall be conclusive and
binding for all purposes, absent manifest error. Notwithstanding the
foregoing, none of the Lenders shall deliver the notice and certificate
described in this Section 2.11(a) to the Borrower in respect of any increased
costs except in accordance with the internal policy of such Lender as to the
exercise of similar rights and remedies in similar circumstances.

               (b)     If any Lender determines that compliance with any law or regulation or
any guideline or request from any central bank or other governmental authority
(whether or not having the force of law) in either case enacted, adopted or
made after the date hereof, affects or would affect the amount of capital
required or expected to be maintained by such Lender or any corporation
controlling such Lender and that the amount of such capital is increased by or
based upon the existence of such Lender’s commitment to lend hereunder and
other commitments of this type, then, upon demand by such Lender (with a copy
of such demand to the Agent), the Borrower shall pay to the Agent for the
account of such Lender, from time to time as specified by such Lender,
additional amounts sufficient to compensate such Lender or such corporation for
the reduction of the rate of return on such Lender’s capital or on the capital
of such corporation, to the extent that such Lender reasonably determines such
increase in capital to be allocable to the existence of such Lender’s
commitment to lend hereunder. A certificate as to such amounts, setting forth
in reasonable detail the basis therefor and the computation thereof, submitted
to the Borrower and the Agent by such Lender shall be conclusive and binding
for all purposes, absent manifest error. Notwithstanding the foregoing, none
of the Lenders shall deliver the notice and certificate described in this
Section 2.11(b) to the Borrower in respect of any requirements of additional
capital except in accordance with the internal policy of such Lender as to the
exercise of similar rights and remedies in similar circumstances.

25

 

               (c)     If any Lender shall give notice to the Agent and the Borrower at any
time to the effect that Eurocurrency Reserve Requirements are, or are scheduled
to become, effective and that such Lender is or will be generally subject to
such Eurocurrency Reserve Requirements (without regard to whether such Lender
will be able to benefit from proration or offsets that may be available from
time to time under Regulation D) as a result of which such Lender will incur
additional costs, then such Lender shall, for each day from the later of the
date of such notice and the date on which such Eurocurrency Reserve
Requirements become effective, be entitled to additional interest on each
Eurodollar Rate Advance made by it at a rate per annum determined for such day
(rounded upward to the nearest 100th of 1%) equal to the remainder obtained by
subtracting (i) the Eurodollar Rate for such Eurodollar Rate Advance from (ii)
the rate obtained by dividing such Eurodollar Rate by a percentage equal to
100% minus the then applicable Eurocurrency Reserve Requirements. Such
additional interest will be payable in arrears to the Agent, for the account of
such Lender, on each date that interest is payable on such Eurodollar Rate
Advance. Any Lender which gives a notice under this paragraph (c) shall
promptly withdraw such notice (by written notice of withdrawal given to the
Agent and the Borrower) in the event Eurocurrency Reserve Requirements cease to
apply to it or the circumstances giving rise to such notice otherwise cease to
exist.

               (d)     Notwithstanding anything to the contrary herein contained, no Lender
shall be entitled to claim any additional amounts pursuant to this Section 2.11
arising with respect to any period of time prior to the date that is 60 days
prior to the date on which notice of such claim and the basis therefor is first
given to the Borrower pursuant to this Section 2.11.

               SECTION 2.12. Illegality. (a) Notwithstanding any other provision of
this Agreement, if any Lender shall notify the Agent that the introduction of
or any change in or in the interpretation of any law or regulation makes it
unlawful, or any central bank or other governmental authority asserts that it
is unlawful, for any Lender or its Eurodollar Lending Office to perform its
obligations hereunder to make Eurodollar Rate Advances or LIBO Rate Advances or
to fund or maintain Eurodollar Rate Advances or LIBO Rate Advances hereunder,
(i) each Eurodollar Rate Advance or LIBO Rate Advance, as the case may be, of
such Lender will automatically, upon such demand, Convert into a Base Rate
Advance or an Advance that bears interest at the rate set forth in Section
2.07(a)(i), as the case may be, and (ii) the obligation of such Lender to make
Eurodollar Rate Advances or LIBO Rate Advances or to Convert Revolving Credit
Advances into Eurodollar Rate Advances shall be suspended until the Agent shall
notify the Borrower and the Lenders that the circumstances causing such
suspension no longer exist. If any Lender shall exercise its rights under this
Section 2.12(a), all payments and prepayments of principal which would
otherwise have been applied to repay the Eurodollar Rate Advances or LIBO Rate
Advances that would have been made by such Lender or the converted Eurodollar
Rate Advances or LIBO Rate Advances of such Lender shall instead be applied to
repay the Base Rate Advances or Advances bearing interest at the rate set forth
in Section 2.07(a)(i), as the case may be, made by such Lender in lieu of, or
resulting from the conversion of, such Eurodollar Rate Advances or LIBO Rate
Advances, and all distributions of payments in respect of interest shall be
made to the Lenders ratably based on the interest rates applicable to their
respective Advances.

               (b)     For purposes of this Section 2.12, a notice to the Borrower by any
Lender shall be effective as to each Eurodollar Rate Advance or LIBO Rate
Advance, if lawful, on the

26

 

 last day of the Interest Period currently applicable to such Eurodollar
Rate Advance or LIBO Rate Advance; in all other cases such notice shall be
effective on the date of receipt by the Borrower.

               SECTION 2.13. Payments and Computations. (a) The Borrower shall make
each payment hereunder and under the Notes not later than 12:00 noon (New York
City time) on the day when due in U.S. dollars to the Agent at the Agent’s
Account in same day funds. The Agent will promptly thereafter cause to be
distributed like funds relating to the payment of principal or interest or
facility fees ratably (other than amounts payable pursuant to Section 2.03,
2.11, 2.14 or 8.04(c)) to the Lenders for the account of their respective
Applicable Lending Offices, and like funds relating to the payment of any other
amount payable to any Lender to such Lender for the account of its Applicable
Lending Office, in each case to be applied in accordance with the terms of this
Agreement. Upon its acceptance of an Assignment and Acceptance and recording
of the information contained therein in the Register pursuant to Section
8.07(c), from and after the effective date specified in such Assignment and
Acceptance, the Agent shall make all payments hereunder and under the Notes in
respect of the interest assigned thereby to the Lender assignee thereunder, and
the parties to such Assignment and Acceptance shall make all appropriate
adjustments in such payments for periods prior to such effective date directly
between themselves. Upon any Assuming Lender becoming a Lender hereunder as a
result of the effectiveness of a Commitment Increase pursuant to Section
2.05(b) or an extension of the Termination Date pursuant to Section 2.17 and
upon the Agent’s receipt of such Lender’s Assumption Agreement and recording of
the information contained therein in the Register, from and after the
applicable Increase Date or Extension Date, as the case may be, the Agent shall
make all payments hereunder and under any Notes issued in connection therewith
in respect of the interest assumed thereby to the Assuming Lender.

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

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

               (d)     Unless the Agent shall have received notice from the Borrower prior to
the date on which any payment is due to the Lenders hereunder that the Borrower
will not make such payment in full, the Agent may assume that the Borrower has
made such payment in full to the Agent on such date and the Agent may, in
reliance upon such assumption, cause to be distributed to each Lender on such
due date an amount equal to the amount then due such Lender. If and to

27

 

 the extent the Borrower shall not have so made such payment in full to the
Agent, each Lender shall repay to the Agent forthwith on demand such amount
distributed to such Lender together with interest thereon, for each day from
the date such amount is distributed to such Lender until the date such Lender
repays such amount to the Agent, at the Federal Funds Rate.

               SECTION 2.14. Taxes. (a) Any and all payments by the Borrower hereunder
or under the Notes shall be made, in accordance with Section 2.13, free and
clear of and without deduction for any and all present or future taxes, levies,
imposts, deductions, charges or withholdings, and all liabilities with respect
thereto, excluding, in the case of each Lender and the Agent, taxes imposed on
its overall net income, and franchise taxes imposed on it in lieu of net income
taxes, by the jurisdiction under the laws of which such Lender or the Agent (as
the case may be) is organized or any political subdivision thereof and, in the
case of each Lender, taxes imposed on its overall net income, and franchise
taxes imposed on it in lieu of net income taxes, by the jurisdiction of such
Lender’s Applicable Lending Office or any political subdivision thereof, and
further excluding, if any Lender is found as the result of a determination (as
defined in Section 1313(a) of the Internal Revenue Code) to be a conduit entity
participating in a conduit financing arrangement as defined in Treasury
Regulations promulgated under Section 7701(1) of the Internal Revenue Code, the
excess of the United States taxes imposed with respect to such Lender over the
amount of United States taxes that would have been imposed with respect to such
Lender if such determination had not been made with respect to such Lender (all
such non-excluded taxes, levies, imposts, deductions, charges, withholdings and
liabilities in respect of payments hereunder or under the Notes being
hereinafter referred to as “Taxes”). If the Borrower shall be required by law
to deduct any Taxes from or in respect of any sum payable hereunder or under
any Note to any Lender or the Agent, (i) the sum payable shall be increased as
may be necessary so that after making all required deductions (including
deductions applicable to additional sums payable under this Section 2.14) such
Lender or the Agent (as the case may be) receives an amount equal to the sum it
would have received had no such deductions been made, (ii) the Borrower shall
make such deductions and (iii) the Borrower shall pay the full amount deducted
to the relevant taxation authority or other authority in accordance with
applicable law.

               (b)     In addition, the Borrower agrees to pay any present or future stamp or
documentary taxes or any other excise or property taxes, charges or similar
levies that arise from any payment made hereunder or under the Notes or from
the execution, delivery or registration of, performing under, or otherwise with
respect to, this Agreement or the Notes (hereinafter referred to as “Other
Taxes”).

               (c)     The Borrower shall indemnify each Lender and the Agent for the full
amount of Taxes or Other Taxes (including, without limitation, any taxes
imposed by any jurisdiction on amounts payable under this Section 2.14) imposed
on or paid by such Lender or the Agent (as the case may be) and any liability
(including penalties, interest and expenses) arising therefrom or with respect
thereto. This indemnification shall be made within 30 days from the date such
Lender or the Agent (as the case may be) makes written demand therefor.

               (d)     Within 30 days after the date of any payment of Taxes, the Borrower
shall furnish to the Agent, at its address referred to in Section 8.02, the
original or a certified copy of a receipt evidencing payment thereof. In the
case of any payment hereunder or under the Notes by

28

 

 or on behalf of the Borrower through an account or branch outside the
United States or by or on behalf of the Borrower by a payor that is not a
United States person, if the Borrower determines that no Taxes are payable in
respect thereof, the Borrower shall furnish, or shall cause such payor to
furnish, to the Agent, at such address, an opinion of counsel acceptable to the
Agent stating that such payment is exempt from Taxes. For purposes of this
subsection (d) and subsection (e), the terms “United States” and “United States
person” shall have the meanings specified in Section 7701 of the Internal
Revenue Code.

               (e)     Each Lender organized under the laws of a jurisdiction outside the
United States, on or prior to the date of its execution and delivery of this
Agreement in the case of each Initial Lender and on the date of the Assumption
Agreement or the Assignment and Acceptance, as the case may be, pursuant to
which it becomes a Lender in the case of each other Lender, and from time to
time thereafter as requested in writing by the Borrower (but only so long as
such Lender remains lawfully able to do so), shall provide each of the Agent
and the Borrower with two original Internal Revenue Service forms W-8BEN or
W-8ECI, as appropriate, or any successor or other form prescribed by the
Internal Revenue Service, certifying that such Lender is exempt from or
entitled to a reduced rate of United States withholding tax on payments
pursuant to this Agreement or the Notes. If the forms provided by a Lender at
the time such Lender first becomes a party to this Agreement indicate a United
States interest withholding tax rate in excess of zero, withholding tax at such
rate shall be considered excluded from Taxes unless and until such Lender
provides the appropriate forms certifying that a lesser rate applies, whereupon
withholding tax at such lesser rate only shall be considered excluded from
Taxes for periods governed by such forms; provided, however, that, if at the
date of the Assumption Agreement or the Assignment and Acceptance, as the case
may be, pursuant to which a Lender assignee becomes a party to this Agreement,
the Lender assignor was entitled to payments under subsection (a) in respect of
United States withholding tax with respect to interest paid at such date, then,
to such extent, the term Taxes shall include (in addition to withholding taxes
that may be imposed in the future or other amounts otherwise includable in
Taxes) United States withholding tax, if any, applicable with respect to the
Lender assignee on such date. If any form or document referred to in this
subsection (e) requires the disclosure of information, other than information
necessary to compute the tax payable and information required on the date
hereof by Internal Revenue Service form W-8BEN or W-8ECI, that the Lender
reasonably considers to be confidential, the Lender shall give notice thereof
to the Borrower and shall not be obligated to include in such form or document
such confidential information.

               (f)     For any period with respect to which a Lender has failed to provide
the Borrower with the appropriate form described in Section 2.14(e) (other than
if such failure is due to a change in law occurring subsequent to the date on
which a form originally was required to be provided, or if such form otherwise
is not required under the first sentence of subsection (e) above), such Lender
shall not be entitled to indemnification under Section 2.14(a) or (c) with
respect to Taxes imposed by the United States by reason of such failure;
provided, however, that should a Lender become subject to Taxes because of its
failure to deliver a form required hereunder, the Borrower shall take such
steps as the Lender shall reasonably request to assist the Lender to recover
such Taxes.

               (g)     Any Lender claiming any additional amounts payable pursuant to this
Section 2.14 agrees to use reasonable efforts (consistent with its internal
policy and legal and

29

 

regulatory
restrictions) to change the jurisdiction of its Eurodollar Lending Office
if the making of such a change would avoid the need for, or reduce the amount
of, any additional amounts that may thereafter accrue and would not, in the
reasonable judgment of such Lender, be otherwise disadvantageous to such
Lender.

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

               SECTION 2.16. Use of Proceeds. The proceeds of the Advances shall be
available (and the Borrower agrees that it shall use such proceeds) for general
corporate purposes of the Borrower and its Subsidiaries, including
acquisitions, stock repurchases and commercial paper backstop.

               SECTION 2.17. Extension of Termination Date. (a) At least 30 days but
not more than 45 days prior to the Termination Date, the Borrower, by written
notice to the Agent, may request an extension of the Termination Date in effect
at such time by 364 days from its then scheduled expiration. The Agent shall
promptly notify each Lender of such request, and each Lender shall in turn, in
its sole discretion, not later than 20 days prior to the Termination Date,
notify the Borrower and the Agent in writing as to whether such Lender will
consent to such extension. If any Lender shall fail to notify the Agent and
the Borrower in writing of its consent to any such request for extension of the
Termination Date at least 20 days prior to the Termination Date, such Lender
shall be deemed to be a Non-Consenting Lender with respect to such request.
The Agent shall notify the Borrower not later than 15 days prior to the
Termination Date of the decision of the Lenders regarding the Borrower’s
request for an extension of the Termination Date.

               (b)     If all the Lenders consent in writing to any such request in
accordance with subsection (a) of this Section 2.17, the Termination Date in
effect at such time shall, effective as at the Termination Date (the “Extension
Date”), be extended for 364 days; provided that on each Extension Date the
applicable conditions set forth in Article III shall be satisfied. If less
than all of the Lenders consent in writing to any such request in accordance
with subsection

30

 

(a) of this
Section 2.17, the Termination Date in effect at such time shall, effective
as at the applicable Extension Date and subject to subsection (d) of this
Section 2.17, be extended as to those Lenders that so consented (each a
“Consenting Lender”) but shall not be extended as to any other Lender (each a
“Non-Consenting Lender”). To the extent that the Termination Date is not
extended as to any Lender pursuant to this Section 2.17 and the Commitment of
such Lender is not assumed in accordance with subsection (c) of this Section
2.17 on or prior to the applicable Extension Date, the Commitment of such
Non-Consenting Lender shall automatically terminate in whole on such unextended
Termination Date without any further notice or other action by the Borrower,
such Lender or any other Person; provided that such Non-Consenting Lender’s
rights under Sections 2.11, 2.14 and 8.04, and its obligations under Section
7.05, shall survive the Termination Date for such Lender as to matters
occurring prior to such date. It is understood and agreed that no Lender shall
have any obligation whatsoever to agree to any request made by the Borrower for
any requested extension of the Termination Date.

               (c)     If less than all of the Lenders consent to any such request pursuant
to subsection (a) of this Section 2.17, the Agent shall promptly so notify the
Consenting Lenders, and each Consenting Lender may, in its sole discretion,
give written notice to the Agent not later than 10 days prior to the
Termination Date of the amount of the Non-Consenting Lenders’ Commitments for
which it is willing to accept an assignment. If the Consenting Lenders notify
the Agent that they are willing to accept assignments of Commitments in an
aggregate amount that exceeds the amount of the Commitments of the
Non-Consenting Lenders, such Commitments shall be allocated among the
Consenting Lenders willing to accept such assignments in such amounts as are
agreed between the Borrower and the Agent. If after giving effect to the
assignments of Commitments described above there remains any Commitments of
Non-Consenting Lenders, the Borrower may arrange for one or more Consenting
Lenders or other Eligible Assignees as Assuming Lenders to assume, effective as
of the Extension Date, any Non-Consenting Lender’s Commitment and all of the
obligations of such Non-Consenting Lender under this Agreement thereafter
arising, without recourse to or warranty by, or expense to, such Non-Consenting
Lender; provided, however, that the amount of the Commitment of any such
Assuming Lender as a result of such substitution shall in no event be less than
$10,000,000 unless the amount of the Commitment of such Non-Consenting Lender
is less than $10,000,000, in which case such Assuming Lender shall assume all
of such lesser amount; and provided further that:

		
	 	        (i)     any such Consenting Lender or Assuming Lender shall have paid to
such Non-Consenting Lender (A) the aggregate principal amount of, and any
interest accrued and unpaid to the effective date of the assignment on,
the outstanding Advances, if any, of such Non-Consenting Lender plus (B)
any accrued but unpaid facility fees owing to such Non-Consenting Lender
as of the effective date of such assignment;
	 
	 	        (ii)     all additional costs reimbursements, expense reimbursements and
indemnities payable to such Non-Consenting Lender, and all other accrued
and unpaid amounts owing to such Non-Consenting Lender hereunder, as of
the effective date of such assignment shall have been paid to such
Non-Consenting Lender; and
	 
	 	        (iii)     with respect to any such Assuming Lender, the applicable
processing and recordation fee required under Section 8.07(a) for such
assignment shall have been paid;

31

 

provided further that such Non-Consenting Lender’s rights under Sections 2.11,
2.14 and 8.04, and its obligations under Section 7.05, shall survive such
substitution as to matters occurring prior to the date of substitution. At
least three Business Days prior to any Extension Date, (A) each such Assuming
Lender, if any, shall have delivered to the Borrower and the Agent an
Assumption Agreement, duly executed by such Assuming Lender, such
Non-Consenting Lender, the Borrower and the Agent, (B) any such Consenting
Lender shall have delivered confirmation in writing satisfactory to the
Borrower and the Agent as to the increase in the amount of its Commitment and
(C) each Non-Consenting Lender being replaced pursuant to this Section 2.17
shall have delivered to the Agent any Note or Notes held by such Non-Consenting
Lender. Upon the payment or prepayment of all amounts referred to in clauses
(i), (ii) and (iii) of the immediately preceding sentence, each such Consenting
Lender or Assuming Lender, as of the Extension Date, will be substituted for
such Non-Consenting Lender under this Agreement and shall be a Lender for all
purposes of this Agreement, without any further acknowledgment by or the
consent of the other Lenders, and the obligations of each such Non-Consenting
Lender hereunder shall, by the provisions hereof, be released and discharged.

               (d)     If (after giving effect to any assignments or assumptions pursuant to
subsection (c) of this Section 2.17) Lenders having Commitments equal to at
least 50% of the Commitments in effect immediately prior to the Extension Date
consent in writing to a requested extension (whether by execution or delivery
of an Assumption Agreement or otherwise) not later than one Business Day prior
to such Extension Date, the Agent shall so notify the Borrower, and, subject to
the satisfaction to the applicable conditions in Article III, the Termination
Date then in effect shall be extended for the additional 364-day period as
described in subsection (a) of this Section 2.17, and all references in this
Agreement, and in the Notes, if any, to the “Termination Date” shall, with
respect to each Consenting Lender and each Assuming Lender for such Extension
Date, refer to the Termination Date as so extended. Promptly following each
Extension Date, the Agent shall notify the Lenders (including, without
limitation, each Assuming Lender) of the extension of the scheduled Termination
Date in effect immediately prior thereto and shall thereupon record in the
Register the relevant information with respect to each such Consenting Lender
and each such Assuming Lender.

ARTICLE III

CONDITIONS TO EFFECTIVENESS AND LENDING

               SECTION 3.01. Conditions Precedent to Effectiveness of Sections 2.01 and
2.03. Sections 2.01 and 2.03 of this Agreement shall become effective on and
as of the first date (the “Effective Date”) on which the following conditions
precedent have been satisfied:

		
	 	        (a)     The Borrower shall have paid all accrued fees and expenses of
the Agent and the Lenders (including the accrued fees and expenses of
counsel to the Agent).
	 
	 	        (b)     On the Effective Date, the following statements shall be true
and the Agent shall have received for the account of each Lender a
certificate signed by a duly authorized officer of the Borrower, dated
the Effective Date, stating that:

32

 

		
	 	             (i)     The representations and warranties contained in Section
4.01 are correct in all material respects on and as of the
Effective Date, and
	 
	 	             (ii)     No event has occurred and is continuing that constitutes
a Default.

		
	 	        (c)     The Agent shall have received on or before the Effective Date
the following, each dated such day, in form and substance satisfactory to
the Agent and (except for the Revolving Credit Notes) in sufficient
copies for each Lender:

		
	 	             (i)     The Revolving Credit Notes to the order of the Lenders,
respectively.
	 
	 	             (ii)     Certified copies of the resolutions of the Board of
Directors of the Borrower approving this Agreement and the Notes,
and of all documents evidencing other necessary corporate action
and governmental approvals, if any, with respect to this Agreement
and the Notes.
	 
	 	             (iii)     A certificate of the Secretary or an Assistant Secretary
of the Borrower certifying the names and true signatures of the
officers of the Borrower authorized to sign this Agreement and the
Notes and the other documents to be delivered hereunder.
	 
	 	             (iv)     A favorable opinion of Diana M. Daniels, general counsel
for the Borrower, substantially in the form of Exhibit E hereto and
as to such other matters as any Lender through the Agent may
reasonably request.
	 
	 	             (v)     A favorable opinion of Shearman & Sterling, counsel for
the Agent, in form and substance satisfactory to the Agent.

		
	 	        (d)     The Borrower shall have terminated the commitments, and paid in
full all Debt, interest, fees and other amounts outstanding, under (i)
the 364-Day Credit Agreement dated as of September 20, 2000, as amended
and restated as of September 19, 2001, among the Borrower, the lenders
parties thereto, SunTrust Bank, as syndication agent, The Chase Manhattan
Bank, as documentation agent, and Citibank, as administrative agent for
the lenders, and (ii) the Credit Agreement dated as of March 17, 1998
among the Borrower, the lenders parties thereto, Wachovia Bank, N.A., as
documentation agent, and Citibank, as administrative agent for the
lenders, and each of the Lenders that is a party to either such credit
agreement hereby waives, upon execution of this Agreement, the
requirement of prior notice under such credit agreement relating to the
termination of commitments thereunder.

               SECTION 3.02. Conditions Precedent to Each Revolving Credit Borrowing,
Increase Date and Extension Date. The obligation of each Lender to make a
Revolving Credit Advance on the occasion of each Revolving Credit Borrowing
(other than a Competitive Bid Advance), each Commitment Increase and each
extension of Commitments pursuant to Section 2.17 shall be subject to the
conditions precedent that the Effective Date shall have occurred and on the
date of such Revolving Credit Borrowing, such Increase Date or such Extension
Date the following statements shall be true (and each of the giving of the
applicable Notice of Revolving

33

 

 Credit Borrowing, request for Commitment Increase, request for Commitment
Extension and the acceptance by the Borrower of the proceeds of such Revolving
Credit Borrowing shall constitute a representation and warranty by the Borrower
that on the date of such Revolving Credit Borrowing, such Increase Date or such
Extension Date such statements are true):

		
	 	        (a)     the representations and warranties contained in Section 4.01 are
correct in all material respects on and as of date of such Revolving
Credit Borrowing, such Increase Date or such Extension Date, before and
after giving effect to such Revolving Credit Borrowing, such Increase
Date or such Extension Date and to the application of the proceeds
therefrom, as though made on and as of such date except to the extent
such representations and warranties expressly relate to an earlier date,
and
	 
	 	        (b)     no event has occurred and is continuing, or would result from
such Revolving Credit Borrowing, such Increase Date or such Extension
Date or from the application of the proceeds therefrom, that constitutes
a Default.

               SECTION 3.03. Conditions Precedent to Each Competitive Bid Borrowing. The
obligation of each Lender that is to make a Competitive Bid Advance on the
occasion of a Competitive Bid Borrowing to make such Competitive Bid Advance as
part of such Competitive Bid Borrowing is subject to the conditions precedent
that (i) the Agent shall have received the written confirmatory Notice of
Competitive Bid Borrowing with respect thereto, (ii) on or before the date of
such Competitive Bid Borrowing, but prior to such Competitive Bid Borrowing,
the Agent shall have received a Competitive Bid Note payable to the order of
such Lender for each of the one or more Competitive Bid Advances to be made by
such Lender as part of such Competitive Bid Borrowing, in a principal amount
equal to the principal amount of the Competitive Bid Advance to be evidenced
thereby and otherwise on such terms as were agreed to for such Competitive Bid
Advance in accordance with Section 2.03, and (iii) on the date of such
Competitive Bid Borrowing the following statements shall be true (and each of
the giving of the applicable Notice of Competitive Bid Borrowing and the
acceptance by the Borrower of the proceeds of such Competitive Bid Borrowing
shall constitute a representation and warranty by the Borrower that on the date
of such Competitive Bid Borrowing such statements are true):

		
	 	        (a)     the representations and warranties contained in Section 4.01 are
correct in all material respects on and as of the date of such
Competitive Bid Borrowing, before and after giving effect to such
Competitive Bid Borrowing and to the application of the proceeds
therefrom, as though made on and as of such date, and
	 
	 	        (b)     no event has occurred and is continuing, or would result from
such Competitive Bid Borrowing or from the application of the proceeds
therefrom, that constitutes a Default.

               SECTION 3.04. Determinations Under Section 3.01. For purposes of
determining compliance with the conditions specified in Section 3.01, each
Lender shall be deemed to have consented to, approved or accepted or to be
satisfied with each document or other matter required thereunder to be
consented to or approved by or acceptable or satisfactory to the Lenders unless
an officer of the Agent responsible for the transactions contemplated by this
Agreement shall have received notice from such Lender prior to the date that
the Borrower,

34

 

 by notice to the Lenders, designates as the proposed Effective Date,
specifying its objection thereto. The Agent shall promptly notify the Lenders
and the Borrower of the occurrence of the Effective Date.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

               SECTION 4.01. Representations and Warranties of the Borrower. The
Borrower represents and warrants as follows:

		
	 	        (a)     The Borrower is a corporation duly organized, validly existing
and in good standing under the laws of the State of Delaware.
	 
	 	        (b)     The execution, delivery and performance by the Borrower of this
Agreement and the Notes, and the consummation of the transactions
contemplated hereby, are within the Borrower’s corporate powers, have
been duly authorized by all necessary corporate action, and do not
contravene (i) the Borrower’s charter or by-laws or (ii) law or any
contractual restriction binding on or affecting the Borrower.
	 
	 	        (c)     No authorization or approval or other action by, and no notice
to or filing with, any governmental authority or regulatory body or any
other third party is required for the due execution, delivery and
performance by the Borrower of this Agreement or the Notes.
	 
	 	        (d)     This Agreement has been, and each of the Notes when delivered
hereunder will have been, duly executed and delivered by the Borrower.
This Agreement is, and each of the Notes when delivered hereunder will
be, the legal, valid and binding obligation of the Borrower enforceable
against the Borrower in accordance with their respective terms.
	 
	 	        (e)     The Consolidated balance sheet of the Borrower and its
Subsidiaries as at December 30, 2001, and the related Consolidated
statements of income and cash flows of the Borrower and its Subsidiaries
for the fiscal year then ended, accompanied by an opinion of
PricewaterhouseCoopers LLP, independent public accountants, and the
condensed Consolidated balance sheet of the Borrower and its Subsidiaries
as at March 31, 2002, and the related condensed Consolidated statements
of income and cash flows of the Borrower and its Subsidiaries for the
three months then ended, duly certified by the chief financial officer of
the Borrower, copies of which have been furnished to each Lender, fairly
present, subject in the case of said balance sheet as at March 31, 2002,
and said statements of income and cash flows for the three months then
ended, to year-end audit adjustments and to the absence of footnote
disclosure, the Consolidated financial condition of the Borrower and its
Subsidiaries as at such dates and the Consolidated results of the
operations of the Borrower and its Subsidiaries for the periods ended on
such dates, all in accordance with generally accepted accounting
principles consistently

35

 

		
	 	applied. Between December 30, 2001 and the date hereof, there has
been no Material Adverse Change.
	 
	 	        (f)     There is no pending or threatened action, suit, investigation,
litigation or proceeding, including, without limitation, any
Environmental Action, affecting the Borrower or any of its Subsidiaries
before any court, governmental agency or arbitrator that (i) is pending
or threatened on the date hereof and is reasonably likely to have a
Material Adverse Effect or (ii) purports to affect the legality, validity
or enforceability of this Agreement or any Note or the consummation of
the transactions contemplated hereby.
	 
	 	        (g)     The Borrower is not, and immediately after the application by
the Borrower of the proceeds of each Advance will not be an “investment
company” within the meaning of the Investment Company Act of 1940, as
amended.
	 
	 	        (h)     After giving effect to the application of the proceeds of each
Advance, not more than 25% of the value of the assets of the Borrower and
its Subsidiaries (as determined in good faith by the Borrower) subject to
the provisions of Section 5.02(a) or subject to any restriction contained
in any agreement or instrument between the Borrower and any Lender or any
Affiliate of any Lender relating to Debt and within the scope of Section
6.01(d) will consist of or be represented by Margin Stock.

ARTICLE V

COVENANTS OF THE BORROWER

               SECTION 5.01. Affirmative Covenants. So long as any Advance shall remain
unpaid or any Lender shall have any Commitment hereunder, the Borrower will:

		
	 	        (a)     Compliance with Laws, Etc. Comply, and cause each of its
Subsidiaries to comply, in all material respects, with all applicable
laws, rules, regulations and orders, such compliance to include, without
limitation, compliance with ERISA and Environmental Laws, except to the
extent that any failures to so comply, individually or in the aggregate,
would not be reasonably likely to have a Material Adverse Effect;
provided, however, that neither the Borrower nor any of its Subsidiaries
shall be required to comply with any law, rule, regulation or order to
the extent it is being contested in good faith and by proper proceedings
and as to which appropriate reserves are being maintained.
	 
	 	        (b)     Payment of Taxes, Etc. Pay and discharge, and cause each of its
Subsidiaries to pay and discharge, before the same shall become
delinquent, all material taxes, assessments and governmental charges or
levies imposed upon it or upon its property; provided, however, that
neither the Borrower nor any of its Subsidiaries shall be required to pay
or discharge any such tax, assessment, charge or claim that is being
contested in good faith and by proper proceedings and as to which
appropriate reserves are being maintained.

36

 

		
	 	        (c)     Maintenance of Insurance. Maintain, and cause each of its
Significant Subsidiaries to maintain, insurance with responsible and
reputable insurance companies or associations in such amounts and
covering such risks as is usually carried by companies engaged in similar
businesses and owning similar properties in the same general areas in
which the Borrower or such Significant Subsidiary operates.
	 
	 	        (d)     Preservation of Corporate Existence, Etc. Preserve and maintain
its corporate existence, rights (charter and statutory) and franchises if
the loss or failure to maintain the same could, individually or in the
aggregate, be reasonably likely to have a Material Adverse Effect;
provided, however, that the Borrower may consummate any merger or
consolidation permitted under Section 5.02(b).
	 
	 	        (e)     Visitation Rights. At any reasonable time and from time to time
on reasonable notice and at reasonable intervals, permit the Agent or any
of the Lenders, or any agents or representatives thereof, to visit the
properties of the Borrower and any of its Subsidiaries and to discuss the
affairs, finances and accounts of the Borrower and any of its
Subsidiaries with any of their officers or directors and, during the
continuance of any Default, to examine and make copies of and abstracts
from the records and books of account of the Borrower and any of its
Subsidiaries and to discuss the affairs, finances and accounts of the
Borrower and any of its Subsidiaries with their independent certified
public accountants.
	 
	 	        (f)     Keeping of Books. Keep, and cause each of its Subsidiaries to
keep, proper books of record and account, in which entries shall be made
of all financial transactions and the assets and business of the Borrower
and each such Subsidiary in accordance with generally accepted accounting
principles in effect from time to time.
	 
	 	        (g)     Maintenance of Properties, Etc. Maintain and preserve, and
cause each of its Significant Subsidiaries to maintain and preserve, all
of its properties that are used or useful in the conduct of its business
in good working order and condition, ordinary wear and tear excepted,
except to the extent that any failure to do so, individually or in the
aggregate, would not be reasonably likely to have a Material Adverse
Effect.
	 
	 	        (h)     Primary Business. The Borrower shall continue to be engaged
primarily in lines of business as carried on at the date hereof or lines
of business related thereto.
	 
	 	        (i)     Reporting Requirements. Furnish to the Lenders:

		
	 	             (i)     as soon as available and in any event within 55 days after
the end of each of the first three quarters of each fiscal year of
the Borrower, the Consolidated balance sheet of the Borrower and
its Subsidiaries as of the end of such quarter and Consolidated
statements of income and cash flows of the Borrower and its
Subsidiaries for the period commencing at the end of the previous
fiscal year and ending with the end of such quarter, duly certified
(subject to year-end audit adjustments) by the chief financial
officer of the Borrower as having been prepared in accordance with
generally accepted accounting principles and certificates of the
chief financial officer of the

37

 

		
	 	Borrower as to compliance with the terms of this Agreement,
provided that in the event of any change in GAAP used in the
preparation of such financial statements, the Borrower shall also
provide, if necessary for the determination of compliance with
Section 5.03, a statement of reconciliation conforming such
financial statements to GAAP;
	 
	 	             (ii)     as soon as available and in any event within 105 days
after the end of each fiscal year of the Borrower, a copy of the
annual audit report for such year for the Borrower and its
Subsidiaries, containing the Consolidated balance sheet of the
Borrower and its Subsidiaries as of the end of such fiscal year and
Consolidated statements of income and cash flows of the Borrower
and its Subsidiaries for such fiscal year, in each case accompanied
by an opinion by PricewaterhouseCoopers LLP or other independent
public accountants of recognized national standing, provided that
in the event of any change in GAAP used in the preparation of such
financial statements, the Borrower shall also provide, if necessary
for the determination of compliance with Section 5.03, a statement
of reconciliation conforming such financial statements to GAAP;
	 
	 	             (iii)     as soon as possible and in any event within seven days
after the occurrence of each Default continuing on the date of such
statement, a statement of the chief financial officer of the
Borrower setting forth details of such Default and the action that
the Borrower has taken and proposes to take with respect thereto;
	 
	 	             (iv)     promptly after the sending or filing thereof, copies of
all quarterly and annual reports and proxy solicitations that the
Borrower sends to its public securityholders generally, and copies
of all reports on Form 8-K and registration statements for the
public offering (other than pursuant to employee Plans) of
securities that the Borrower files with the Securities and Exchange
Commission or any national securities exchange;
	 
	 	             (v)     promptly after the commencement thereof, notice of all
actions and proceedings before any court, governmental agency or
arbitrator affecting the Borrower or any of its Subsidiaries of the
type described in Section 4.01(f); and
	 
	 	             (vi)     such other information respecting the Borrower or any of
its Subsidiaries as any Lender through the Agent may from time to
time reasonably request.

               SECTION 5.02. Negative Covenants. So long as any Advance shall remain
unpaid or any Lender shall have any Commitment hereunder, the Borrower will
not:

		
	 	        (a)     Liens, Etc. Create or suffer to exist, or permit any of its
Subsidiaries to create or suffer to exist, any Lien on or with respect to
any of its properties (which for purposes of this subsection (a) shall be
deemed not to include shares of the Borrower’s capital stock), whether
now owned or hereafter acquired, or assign, or permit any of its
Subsidiaries to assign, any right to receive income, other than:

38

 

		
	 	             (i)     Permitted Liens,
	 
	 	             (ii)     purchase money Liens upon or in any real property or
equipment acquired or held by the Borrower or any Subsidiary in the
ordinary course of business to secure the purchase price of such
property or equipment or to secure Debt incurred solely for the
purpose of financing the acquisition of such property or equipment,
or Liens existing on such property or equipment at the time of its
acquisition (other than any such Liens created in contemplation of
such acquisition that were not incurred to finance the acquisition
of such property) or extensions, renewals or replacements of any of
the foregoing for the same or a lesser amount, provided, however,
that no such Lien shall extend to or cover any properties of any
character other than the real property or equipment being acquired
(or, in the case of improvements to real property, the real
property being improved), and no such extension, renewal or
replacement shall extend to or cover any properties not theretofore
subject to the Lien being extended, renewed or replaced,
	 
	 	             (iii)     the Liens existing on the Effective Date and described
on Schedule 5.02(a) hereto,
	 
	 	             (iv)     Liens securing Debt payable to the Borrower,
	 
	 	             (v)     other Liens securing Debt in an aggregate principal amount
not to exceed at any time outstanding an amount equal to 20% of
Consolidated Shareholders’ Equity, and
	 
	 	             (vi)     the replacement, extension or renewal of any Lien
permitted by clause (iii) above upon or in the same property
theretofore subject thereto or the replacement, extension or
renewal (without increase in the amount) of the Debt secured
thereby.

		
	 	        (b)     Mergers, Etc. Merge or consolidate with or into, or convey,
transfer, lease or otherwise 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, any Person, provided that the
Borrower may merge or consolidate with any other Person so long as the
Borrower is the surviving corporation and provided further that no
Default shall have occurred and be continuing at the time of such
proposed transaction or would result therefrom.
	 
	 	        (c)     Accounting Changes. Make or permit, or permit any of its
Subsidiaries to make or permit, any change in accounting policies or
reporting practices, except as permitted by generally accepted accounting
principles and, in the case of any significant change, concurred with by
the Borrower’s independent public accountants.

               SECTION 5.03. Financial Covenant. So long as any Advance shall remain
unpaid or any Lender shall have any Commitment hereunder, the Borrower will
maintain Consolidated Shareholders’ Equity of not less than $1,000,000,000.

39

 

ARTICLE VI

EVENTS OF DEFAULT

               SECTION 6.01. Events of Default. If any of the following events (“Events
of Default”) shall occur and be continuing:

		
	 	        (a)     The Borrower shall fail to pay any principal of any Advance when
the same becomes due and payable (or, if any such failure is due solely
to technical or administrative difficulties relating to the transfer of
such principal payment, within two Business Days after the same becomes
due and payable); or the Borrower shall fail to pay any interest on any
Advance or make any other payment of fees or other amounts payable under
this Agreement or any Note within three Business Days after the same
becomes due and payable; or
	 
	 	        (b)     Any representation or warranty made by the Borrower herein or by
the Borrower (or any of its officers) in connection with this Agreement
shall prove to have been incorrect in any material respect when made; or
	 
	 	        (c)     (i) The Borrower shall fail to perform or observe any term,
covenant or agreement contained in Section 5.01(d) or (i)(iii), 5.02 or
5.03, or (ii) the Borrower shall fail to perform or observe any other
term, covenant or agreement contained in this Agreement on its part to be
performed or observed if such failure shall remain unremedied for 20 days
after written notice thereof shall have been given to the Borrower by the
Agent or any Lender; or
	 
	 	        (d)     The Borrower or any of its Subsidiaries shall fail to pay any
principal of or premium or interest on any Debt (other than Non-Recourse
Debt) that is outstanding in a principal amount of at least $40,000,000
in the aggregate (but excluding Debt outstanding hereunder) of the
Borrower or such Subsidiary (as the case may be), when the same becomes
due and payable (whether by scheduled maturity, required prepayment,
acceleration, demand or otherwise), and such failure shall continue after
the applicable grace period, if any, specified in the agreement or
instrument relating to such Debt; or any other event shall occur or
condition shall exist under any agreement or instrument relating to any
such Debt and shall continue after the applicable grace period, if any,
specified in such agreement or instrument, if the effect of such event or
condition is to accelerate, or to permit the acceleration of, the
maturity of such Debt; or
	 
	 	        (e)     The Borrower or any of its Significant Subsidiaries shall
generally not pay its debts as such debts become due, or shall admit in
writing its inability to pay its debts generally, or shall make a general
assignment for the benefit of creditors; or any proceeding shall be
instituted by or against the Borrower or any of its Significant
Subsidiaries seeking to adjudicate it a bankrupt or insolvent, or seeking
liquidation, winding up, reorganization, arrangement, adjustment,
protection, relief, or composition of it or its debts under any law
relating to bankruptcy, insolvency or reorganization or relief of
debtors, or seeking the entry of an order for relief or the appointment
of a receiver, trustee, custodian or other similar official for it or for
any substantial part of its property

40

 

		
	 	and, in the case of any such proceeding instituted against it (but
not instituted by it), either such proceeding shall remain undismissed or
unstayed for a period of 60 days, or in such proceeding the entry of an
order for relief against, or the appointment of a receiver, trustee,
custodian or other similar official for, it or for any substantial part
of its property shall occur; or the Borrower or any of its Significant
Subsidiaries shall take any corporate action to authorize any of the
actions set forth above in this subsection (e); or
	 
	 	        (f)     Any judgment or order of a court of competent jurisdiction for
the payment of money in excess of $20,000,000 shall be rendered against
the Borrower or any of its Significant Subsidiaries and either (i)
enforcement proceedings shall have been legally commenced by any creditor
upon such judgment or order or (ii) there shall be any period of 60
consecutive days during which a stay of enforcement of such judgment or
order, by reason of a pending appeal or otherwise, shall not be in effect
provided, however, that any such judgment or order shall not be an Event
of Default under this Section 6.01(f) if and for so long as (x) the
amount of such judgment or order is covered by a valid and binding policy
of insurance between the defendant and the insurer covering payment
thereof and (y) such insurer, which shall be rated at least “A-” by A.M.
Best Company, has been notified of, and has not disputed the claim made
for payment of, the amount of such judgment or order; or
	 
	 	        (g)     (i) Any Person or two or more Persons acting in concert (other
than the Graham Interests) shall have acquired beneficial ownership
(within the meaning of Rule 13d-3 of the Securities and Exchange
Commission under the Securities Exchange Act of 1934), directly or
indirectly, of Voting Stock of the Borrower (or other securities
convertible into such Voting Stock) representing 30% or more of the
combined voting power of all Voting Stock of the Borrower and such
combined voting power exceeds the then current voting power of the Voting
Stock of the Borrower (or other securities convertible into such Voting
Stock) controlled by the Graham Interests; or (ii) Continuing Directors
of the Borrower shall cease for any reason to constitute a majority of
the board of directors of the Borrower; or
	 
	 	        (h)     The Borrower or any of its ERISA Affiliates shall incur
liability as a result of one or more of the following: (i) the
occurrence of any ERISA Event; (ii) the partial or complete withdrawal of
the Borrower or any of its ERISA Affiliates from a Multiemployer Plan; or
(iii) the reorganization or termination of a Multiemployer Plan; and, in
the reasonable opinion of the Required Lenders, such incurrence would be
likely to result in a Material Adverse Effect, provided that any such
liability in an amount not to exceed $20,000,000 shall be deemed not to
be likely to result in a Material Adverse Effect;

then, and in any such event, the Agent (i) shall at the request, or may with
the consent, of the Required Lenders, by notice to the Borrower, declare the
obligation of each Lender to make Advances to be terminated, whereupon the same
shall forthwith terminate, and (ii) shall at the request, or may with the
consent, of the Required Lenders, by notice to the Borrower, declare the Notes,
all interest thereon and all other amounts payable under this Agreement to be
forthwith due and payable, whereupon the Notes, all such interest and all such
amounts shall become and be forthwith due and payable, without presentment,
demand, protest or further notice of any

41

 

kind, all of which are hereby expressly waived by the Borrower; provided,
however, that in the event of an actual or deemed entry of an order for relief
with respect to the Borrower under the Federal Bankruptcy Code, (A) the
obligation of each Lender to make Advances shall automatically be terminated
and (B) the Notes, all such interest and all such amounts shall automatically
become and be due and payable, without presentment, demand, protest or any
notice of any kind, all of which are hereby expressly waived by the Borrower.

ARTICLE VII

THE AGENT

               SECTION 7.01. Authorization and Action. Each Lender hereby appoints and
authorizes the Agent to take such action as agent on its behalf and to exercise
such powers and discretion under this Agreement as are delegated to the Agent
by the terms hereof, together with such powers and discretion as are reasonably
incidental thereto. As to any matters not expressly provided for by this
Agreement (including, without limitation, enforcement or collection of the
Notes), the Agent shall not be required to exercise any discretion or take any
action, but shall be required to act or to refrain from acting (and shall be
fully protected in so acting or refraining from acting) upon the instructions
of the Required Lenders, and such instructions shall be binding upon all
Lenders and all holders of Notes; provided, however, that the Agent shall not
be required to take any action that exposes the Agent to personal liability or
that is contrary to this Agreement or applicable law. The Agent agrees to give
to each Lender prompt notice of each notice given to it by the Borrower
pursuant to the terms of this Agreement.

               SECTION 7.02. Agent’s Reliance, Etc. Neither the Agent nor any of its
directors, officers, agents or employees shall be liable for any action taken
or omitted to be taken by it or them under or in connection with this
Agreement, except for its or their own gross negligence or willful misconduct.
Without limitation of the generality of the foregoing, the Agent: (i) may
treat the payee of any Note as the holder thereof until the Agent receives and
accepts an Assumption Agreement entered into by an Assuming Lender as provided
in Section 2.05(b) or 2.17, as the case may be, or an Assignment and Acceptance
entered into by the Lender that is the payee of such Note, as assignor, and an
Eligible Assignee, as assignee, as provided in Section 8.07; (ii) may consult
with legal counsel (including counsel for the Borrower), independent public
accountants and other experts selected by it and shall not be liable for any
action taken or omitted to be taken in good faith by it in accordance with the
advice of such counsel, accountants or experts; (iii) makes no warranty or
representation to any Lender and shall not be responsible to any Lender for any
statements, warranties or representations (whether written or oral) made in or
in connection with this Agreement; (iv) shall not have any duty to ascertain or
to inquire as to the performance or observance of any of the terms, covenants
or conditions of this Agreement on the part of the Borrower or to inspect the
property (including the books and records) of the Borrower; (v) shall not be
responsible to any Lender for the due execution, legality, validity,
enforceability, genuineness, sufficiency or value of this Agreement or any
other instrument or document furnished pursuant hereto; and (vi) shall incur no
liability under or in respect of this Agreement by acting upon any notice,
consent, certificate or other instrument or writing (which may be by
telecopier, telegram or telex) reasonably believed by it to be genuine and
signed or sent by the proper party or parties.

42

 

               SECTION 7.03. Citibank and Affiliates. With respect to its Commitment,
the Advances made by it and the Note issued to it, Citibank shall have the same
rights and powers under this Agreement as any other Lender and may exercise the
same as though it were not the Agent; and the term “Lender” or “Lenders” shall,
unless otherwise expressly indicated, include Citibank in its individual
capacity. Citibank and its Affiliates may accept deposits from, lend money to,
act as trustee under indentures of, accept investment banking engagements from
and generally engage in any kind of business with, the Borrower, any of its
Subsidiaries and any Person who may do business with or own securities of the
Borrower or any such Subsidiary, all as if Citibank were not the Agent and
without any duty to account therefor to the Lenders.

               SECTION 7.04. Lender Credit Decision. Each Lender acknowledges that it
has, independently and without reliance upon the Agent or any other Lender and
based on the financial statements referred to in Section 4.01 and such other
documents and information as it has deemed appropriate, made its own credit
analysis and decision to enter into this Agreement. Each Lender also
acknowledges that it will, independently and without reliance upon the Agent or
any other Lender and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or
not taking action under this Agreement.

               SECTION 7.05. Indemnification. The Lenders agree to indemnify the Agent
(to the extent not reimbursed by the Borrower), ratably according to the
respective principal amounts of the Revolving Credit Notes then held by each of
them (or if no Revolving Credit Notes are at the time outstanding or if any
Revolving Credit Notes are held by Persons that are not Lenders, ratably
according to the respective amounts of their Commitments), from and against any
and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind or nature
whatsoever that may be imposed on, incurred by, or asserted against the Agent
in any way relating to or arising out of this Agreement or any action taken or
omitted by the Agent under this Agreement, provided that no Lender shall be
liable for any portion of such liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements
resulting from the Agent’s gross negligence or willful misconduct. Without
limitation of the foregoing, each Lender agrees to reimburse the Agent promptly
upon demand for its ratable share of any out-of-pocket expenses (including
counsel fees) incurred by the Agent in connection with the preparation,
execution, delivery, administration, modification, amendment or enforcement
(whether through negotiations, legal proceedings or otherwise) of, or legal
advice in respect of rights or responsibilities under, this Agreement, to the
extent that the Agent is not reimbursed for such expenses by the Borrower.

               SECTION 7.06. Successor Agent. The Agent may resign at any time by giving
written notice thereof to the Lenders and the Borrower and may be removed at
any time with or without cause by the Required Lenders. Upon any such
resignation or removal, the Required Lenders shall have the right to appoint a
successor Agent. If no successor Agent shall have been so appointed by the
Required Lenders, and shall have accepted such appointment, within 30 days
after the retiring Agent’s giving of notice of resignation or the Required
Lenders’ removal of the retiring Agent, then the retiring Agent may, on behalf
of the Lenders, appoint a successor Agent, which shall be a commercial bank
organized under the laws of the United States of America or of any State
thereof and having a combined capital and surplus of at least $500,000,000.
Upon the acceptance of any appointment as Agent hereunder by a successor Agent,
such successor

43

 

 Agent shall thereupon succeed to and become vested with all the rights,
powers, discretion, privileges and duties of the retiring Agent, and the
retiring Agent shall be discharged from its duties and obligations under this
Agreement. After any retiring Agent’s resignation or removal hereunder as
Agent, the provisions of this Article VII shall inure to its benefit as to any
actions taken or omitted to be taken by it while it was Agent under this
Agreement.

               SECTION 7.07. Documentation Agents and Syndication Agents. Wachovia Bank,
National Association and SunTrust Bank have been designated as syndication
agents and JPMorgan Chase Bank and Bank One, N.A. have been designated as
documentation agents in recognition of their respective Commitments, and the
use of such title does not impose on such Lender any duties or obligations
greater than those of any other Lender.

ARTICLE VIII

MISCELLANEOUS

               SECTION 8.01. Amendments, Etc. No amendment or waiver of any provision of
this Agreement or the Revolving Credit Notes, nor consent to any departure by
the Borrower therefrom, shall in any event be effective unless the same shall
be in writing and signed by the Required Lenders, and then such waiver or
consent shall be effective only in the specific instance and for the specific
purpose for which given; provided, however, that no amendment, waiver or
consent shall, unless in writing and signed by all the Lenders, do any of the
following: (a) waive any of the conditions specified in Section 3.01, (b)
increase the Commitments of the Lenders other than as provided in Section
2.05(b), (c) reduce the principal of, or interest on, the Revolving Credit
Notes or any fees or other amounts payable hereunder, (d) postpone any date
fixed for any payment of principal of, or interest on, the Revolving Credit
Notes or any fees or other amounts payable hereunder, (e) change the percentage
of the Commitments or of the aggregate unpaid principal amount of the Revolving
Credit Notes that shall be required for the Lenders or any of them to take any
action hereunder or (f) amend this Section 8.01; provided further that no
amendment, waiver or consent shall, unless in writing and signed by the Agent
in addition to the Lenders required above to take such action, affect the
rights or duties of the Agent under this Agreement or any Note.

               SECTION 8.02. Notices, Etc. All notices and other communications provided
for hereunder shall be in writing (including telecopier, telegraphic or telex
communication) and telecopied, telegraphed, telexed or delivered, if to the
Borrower, at its address at 1150 15th Street, N.W., Washington, D.C. 20071,
Attention: Treasurer; if to any Initial Lender, at its Domestic Lending Office
specified opposite its name on Schedule I hereto; if to any other Lender, at
its Domestic Lending Office specified in the Assumption Agreement or the
Assignment and Acceptance pursuant to which it became a Lender; and if to the
Agent, at its address at Two Penns Way, Suite 200, New Castle, Delaware 19720,
Attention: Cristian Garcia; or, as to the Borrower or the Agent, at such other
address as shall be designated by such party in a written notice to the other
parties and, as to each other party, at such other address as shall be
designated by such party in a written notice to the Borrower and the Agent.
All such notices and communications shall, when hand delivered, telecopied,
telegraphed or telexed, be effective when received. Delivery by telecopier of
an executed counterpart of any amendment or waiver

44

 

 of any provision of this Agreement or the Notes or of any Exhibit hereto
to be executed and delivered hereunder shall be effective as delivery of a
manually executed counterpart thereof.

               SECTION 8.03. No Waiver; Remedies. No failure on the part of any Lender
or the Agent to exercise, and no delay in exercising, any right hereunder or
under any Note shall operate as a waiver thereof; nor shall any single or
partial exercise of any such right preclude any other or further exercise
thereof or the exercise of any other right. The remedies herein provided are
cumulative and not exclusive of any remedies provided by law.

               SECTION 8.04. Costs and Expenses. (a) The Borrower agrees to pay on
demand all reasonable out-of-pocket costs and expenses of the Agent in
connection with the preparation, execution, delivery, administration,
modification and amendment of this Agreement, the Notes and the other documents
to be delivered hereunder, including, without limitation, (A) all due
diligence, syndication (including printing, distribution and bank meetings),
transportation and duplication expenses, and (B) the reasonable fees and
expenses of counsel for the Agent with respect thereto and with respect to
advising the Agent as to its rights and responsibilities under this Agreement.
The Borrower further agrees to pay on demand all reasonable out-of-pocket costs
and expenses of the Agent and the Lenders, if any (including, without
limitation, reasonable counsel fees and expenses), in connection with the
enforcement (whether through negotiations, legal proceedings or otherwise) of
this Agreement, the Notes and the other documents to be delivered hereunder,
including, without limitation, reasonable fees and expenses of counsel for the
Agent and each Lender in connection with the enforcement of rights under this
Section 8.04(a).

               (b)     The Borrower agrees to indemnify and hold harmless the Agent and each
Lender and each of their Affiliates and their officers, directors, employees,
agents and advisors (each, an “Indemnified Party”) from and against any and all
claims, damages, losses, liabilities and expenses (including, without
limitation, reasonable fees and expenses of counsel) that may be incurred by or
asserted or awarded against any Indemnified Party, in each case arising out of
or in connection with or by reason of, or in connection with the preparation
for a defense of, any investigation, litigation or proceeding arising out of,
related to or in connection with the Notes, this Agreement, any of the
transactions contemplated herein or the actual or proposed use of the proceeds
of the Advances, whether or not such investigation, litigation or proceeding is
brought by the Borrower, its directors, shareholders or creditors or an
Indemnified Party or any other Person or any Indemnified Party is otherwise a
party thereto and whether or not the transactions contemplated hereby are
consummated, except to the extent such claim, damage, loss, liability or
expense is found in a final, non-appealable judgment by a court of competent
jurisdiction to have resulted from such Indemnified Party’s gross negligence or
willful misconduct or breach of its obligations under this Agreement.

               (c)     If any payment of principal of, or Conversion of, any Eurodollar Rate
Advance or LIBO Rate Advance is made by the Borrower to or for the account of a
Lender other than on the last day of the Interest Period for such Advance, as a
result of a payment or Conversion pursuant to Section 2.08(d) or (e), 2.09,
2.10 or 2.12, acceleration of the maturity of the Notes pursuant to Section
6.01 or for any other reason, or by an Eligible Assignee to a Lender other than
on the last day of an Interest Period for such Advance upon an assignment of
rights and obligations under this Agreement pursuant to Section 8.07 as a
result of a demand by

45

 

 the Borrower pursuant to Section 8.07(a), the Borrower shall, upon demand
by such Lender (with a copy of such demand to the Agent), pay to the Agent for
the account of such Lender any amounts required to compensate such Lender for
any additional losses, costs or expenses that it may reasonably incur as a
result of such payment or Conversion, including, without limitation, any loss
(excluding loss of anticipated profits), cost or expense incurred by reason of
the liquidation or reemployment of deposits or other funds acquired by any
Lender to fund or maintain such Advance.

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

               SECTION 8.05. Right of Set-off. Upon (i) the occurrence and during the
continuance of any Event of Default and (ii) the making of the request or the
granting of the consent specified by Section 6.01 to authorize the Agent to
declare the Notes due and payable pursuant to the provisions of Section 6.01,
each Lender and each of its Affiliates is hereby authorized at any time and
from time to time, to the fullest extent permitted by law, to set off and apply
any and all deposits (general or special, time or demand, provisional or final)
at any time held and other indebtedness at any time owing by such Lender or
such Affiliate to or for the credit or the account of the Borrower against any
and all of the obligations of the Borrower now or hereafter existing under this
Agreement and the Note held by such Lender, whether or not such Lender shall
have made any demand under this Agreement or such Note and although such
obligations may be unmatured. Each Lender agrees promptly to notify the
Borrower after any such set-off and application, provided that the failure to
give such notice shall not affect the validity of such set-off and application.
The rights of each Lender and its Affiliates under this Section are in
addition to other rights and remedies (including, without limitation, other
rights of set-off) that such Lender and its Affiliates may have.

               SECTION 8.06. Binding Effect. This Agreement shall become effective
(other than Sections 2.01 and 2.03, which shall only become effective upon
satisfaction of the conditions precedent set forth in Section 3.01) when it
shall have been executed by the Borrower and the Agent and when the Agent shall
have been notified by each Initial Lender that such Initial Lender has executed
it and thereafter shall be binding upon and inure to the benefit of the
Borrower, the Agent and each Lender and their respective successors and
assigns, except that the Borrower shall not have the right to assign its rights
hereunder or any interest herein without the prior written consent of the
Lenders.

               SECTION 8.07. Assignments and Participations. (a) Each Lender may with
the consent of the Agent and the Borrower (which consent shall not be
unreasonably withheld or delayed) and, if demanded by the Borrower (following a
demand by such Lender pursuant to Section 2.11 or 2.14 or following such
Lender’s Downgrade) at a time when no Default has occurred and is continuing
upon at least five Business Days’ notice to such Lender and the Agent, will
assign to one or more Persons all or a portion of its rights and obligations
under this Agreement (including, without limitation, all or a portion of its
Commitment, the Revolving Credit Advances owing to it and the Revolving Credit
Note or Notes held by it); provided, however, that (i) each such assignment
shall be of a constant, and not a varying, percentage of all

46

 

 rights and obligations under this Agreement (other than any right to make
Competitive Bid Advances, Competitive Bid Advances owing to it and Competitive
Bid Notes), (ii) except in the case of an assignment to a Person that,
immediately prior to such assignment, was a Lender or an assignment of all of a
Lender’s rights and obligations under this Agreement, the amount of the
Commitment of the assigning Lender being assigned pursuant to each such
assignment (determined as of the date of the Assignment and Acceptance with
respect to such assignment) shall in no event be less than $10,000,000 or an
integral multiple of $1,000,000 in excess thereof and the amount of the
Commitment of such Lender remaining after such assignment shall not be less
than $10,000,000 or shall be zero, (iii) each such assignment shall be to an
Eligible Assignee, (iv) each such assignment made as a result of a demand by
the Borrower pursuant to this Section 8.07(a) shall be arranged by the Borrower
after consultation with the Agent and shall be either an assignment of all of
the rights and obligations of the assigning Lender under this Agreement or an
assignment of a portion of such rights and obligations made concurrently with
another such assignment or other such assignments that together cover all of
the rights and obligations of the assigning Lender under this Agreement, (v) no
Lender shall be obligated to make any such assignment as a result of a demand
by the Borrower pursuant to this Section 8.07(a) unless and until such Lender
shall have received one or more payments from either the Borrower or one or
more Eligible Assignees in an aggregate amount at least equal to the aggregate
outstanding principal amount of the Advances owing to such Lender, together
with accrued interest thereon to the date of payment of such principal amount
and all other amounts payable to such Lender under this Agreement, and (vi)
unless such assignment is demanded by the Borrower, the parties to each such
assignment shall execute and deliver to the Agent, for its acceptance and
recording in the Register, an Assignment and Acceptance, together with any
Revolving Credit Note subject to such assignment and a processing and
recordation fee of $3,500. Upon such execution, delivery, acceptance and
recording, from and after the effective date specified in each Assignment and
Acceptance, (x) the assignee thereunder shall be a party hereto and, to the
extent that rights and obligations hereunder have been assigned to it pursuant
to such Assignment and Acceptance, have the rights and obligations of a Lender
hereunder and (y) the Lender assignor thereunder shall, to the extent that
rights and obligations hereunder have been assigned by it pursuant to such
Assignment and Acceptance, relinquish its rights and be released from its
obligations under this Agreement (and, in the case of an Assignment and
Acceptance covering all or the remaining portion of an assigning Lender’s
rights and obligations under this Agreement, such Lender shall cease to be a
party hereto).

               (b)     By executing and delivering an Assignment and Acceptance, the Lender
assignor thereunder and the assignee thereunder confirm to and agree with each
other and the other parties hereto as follows: (i) other than as provided in
such Assignment and Acceptance, such assigning Lender makes no representation
or warranty and assumes no responsibility with respect to any statements,
warranties or representations made in or in connection with this Agreement or
the execution, legality, validity, enforceability, genuineness, sufficiency or
value of this Agreement or any other instrument or document furnished pursuant
hereto; (ii) such assigning Lender makes no representation or warranty and
assumes no responsibility with respect to the financial condition of the
Borrower or the performance or observance by the Borrower of any of its
obligations under this Agreement or any other instrument or document furnished
pursuant hereto; (iii) such assignee confirms that it has received a copy of
this Agreement, together with copies of the financial statements referred to in
Section 4.01 and such other documents and information as it has deemed
appropriate to make its own credit analysis

47

 

 and decision to enter into such Assignment and Acceptance; (iv) such
assignee will, independently and without reliance upon the Agent, such
assigning Lender or any other Lender and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking action under this Agreement; (v) such
assignee confirms that it is an Eligible Assignee; (vi) such assignee appoints
and authorizes the Agent to take such action as agent on its behalf and to
exercise such powers and discretion under this Agreement as are delegated to
the Agent by the terms hereof, together with such powers and discretion as are
reasonably incidental thereto; and (vii) such assignee agrees that it will
perform in accordance with their terms all of the obligations that by the terms
of this Agreement are required to be performed by it as a Lender.

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

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

               (e)     Each Lender may sell participations to one or more banks or other
entities (other than the Borrower or any of its Affiliates) in or to all or a
portion of its rights and obligations under this Agreement (including, without
limitation, all or a portion of its Commitment, the Advances owing to it and
the Note or Notes held by it) with the consent of the Borrower (which consent
shall not be unreasonably withheld or delayed); provided, however, that (i)
such Lender’s obligations under this Agreement (including, without limitation,
its Commitment to the Borrower hereunder) shall remain unchanged, (ii) such
Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations, (iii) such Lender shall remain the holder of
any such Note for all purposes of this Agreement, (iv) the Borrower, the Agent
and the other Lenders shall continue to deal solely and directly with such

48

 

Lender
in connection with such Lender’s rights and obligations under this
Agreement and (v) no participant under any such participation shall have any
right to approve any amendment or waiver of any provision of this Agreement or
any Note, or any consent to any departure by the Borrower therefrom, except to
the extent that such amendment, waiver or consent would reduce the principal
of, or interest on, the Notes or any fees or other amounts payable hereunder,
in each case to the extent subject to such participation, or postpone any date
fixed for any payment of principal of, or interest on, the Notes or any fees or
other amounts payable hereunder, in each case to the extent subject to such
participation.

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

               (g)     Notwithstanding any other provision set forth in this Agreement, any
Lender may at any time create a security interest in all or any portion of its
rights under this Agreement (including, without limitation, the Advances owing
to it and the Note or Notes held by it) in favor of any Federal Reserve Bank in
accordance with Regulation A of the Board of Governors of the Federal Reserve
System.

               SECTION 8.08. Confidentiality. Neither the Agent nor any Lender shall
disclose any Confidential Information to any other Person without the consent
of the Borrower, other than (a) to the Agent’s or such Lender’s Affiliates and
their officers, directors, employees, accountants, auditors, counsel, agents
and advisors and, as contemplated by Section 8.07(f), to actual or prospective
assignees and participants, and then only on a confidential basis, (b) as
required by any law, rule or regulation or judicial process, (c) to any rating
agency when required by it, provided that, prior to any such disclosure, such
rating agency shall undertake to preserve the confidentiality of any
Confidential Information relating to the Borrower received by it from such
Lender and (d) as requested or required by any state, federal or foreign
authority or examiner regulating banks or banking.

               SECTION 8.09. Governing Law. This Agreement and the Notes shall be
governed by, and construed in accordance with, the laws of the State of New
York.

               SECTION 8.10. Execution in Counterparts. This Agreement may be executed
in any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same agreement.
Delivery of an executed counterpart of a signature page to this Agreement by
telecopier shall be effective as delivery of a manually executed counterpart of
this Agreement.

               SECTION 8.11. Jurisdiction, Etc. (a) Each of the parties hereto hereby
irrevocably and unconditionally submits, for itself and its property, to the
nonexclusive jurisdiction of any New York State court or federal court of the
United States of America sitting

49

 

 in New York City, and any appellate court from any thereof, in any action
or proceeding arising out of or relating to this Agreement or the Notes, or for
recognition or enforcement of any judgment, and each of the parties hereto
hereby irrevocably and unconditionally agrees that all claims in respect of any
such action or proceeding may be heard and determined in any such New York
State court or, to the extent permitted by law, in such federal court. Each of
the parties hereto agrees that a final judgment in any such action or
proceeding shall be conclusive and may be enforced in other jurisdictions by
suit on the judgment or in any other manner provided by law. Nothing in this
Agreement shall affect any right that any party may otherwise have to bring any
action or proceeding relating to this Agreement or the Notes in the courts of
any jurisdiction.

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

               SECTION 8.12. Waiver of Jury Trial. Each of the Borrower, the Agent and
the Lenders hereby irrevocably waives all right to trial by jury in any action,
proceeding or counterclaim (whether based on contract, tort or otherwise)
arising out of or relating to this Agreement or the Notes or the actions of the
Agent or any Lender in the negotiation, administration, performance or
enforcement thereof.

50

 

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

	 	 	 
		 	
THE WASHINGTON POST COMPANY
	 
	 
	 	 	
By /s/ John B. Morse, Jr.

Title:  Vice President - Finance
	 
	 
	 	 	
CITIBANK, N.A.

  as Agent
	 
	 
	 	 	
By /s/ Steven Victorin

Name:  Steven Victorin

Title:    Vice President

51

 

	 	 	 
		 	
Initial Lenders

	 
	Commitment	 	

	 
	$100,000,000	 	
CITIBANK, N.A.
	 
	 
	 	 	
By  /s/ Steven Victorin

Name:  Steven Victorin

Title:    Vice President
	 
	 
	$75,000,000	 	
WACHOVIA BANK, NATIONAL ASSOCIATION
	 
	 
	 	 	
By /s/ Barbara K. Angel

Name:  Barbara K. Angel

Title:    Vice President
	 
	 
	$62,500,000	 	
SUNTRUST BANK
	 
	 
	 	 	
By /s/ Nancy R. Petrash

Name:  Nancy R. Petrash

Title:    Director
	 
	 
	$37,500,000	 	
BANK ONE, N.A.
	 
	 
	 	 	
By /s/ Daniel E. Casey

Name:  Daniel E. Casey

Title:    Director
	 
	 
	$37,500,000	 	
JPMORGAN CHASE BANK
	 
	 
	 	 	
By /s/ Charles Swarns

Name:  Charles Swarns, Jr.

Title:    Vice President

 

 

	 	 	 
	 
	$25,000,000	 	
THE BANK OF NEW YORK
	 
	 
	 	 	
By  /s/ Michael E. Masters

Name:  Michael E. Masters

Title:    Assistant Vice President
	 
	 
	$12,500,000	 	
RIGGS BANK N.A.
	 
	 
	 	 	
By/s/ Douglas H. Klamfoth

Name:  Douglas H. Klamfoth

Title:    Vice President
	 
	 
	$350,000,000	 	
Total of the Commitments

 

 

 

SCHEDULE I

The Washington Post Company

364-Day Credit Agreement

APPLICABLE LENDING OFFICES

	 	 	 	 	 
	Name of Initial Lender	 	
Domestic Lending Office
	 	Eurodollar Lending Office
	
	 	

	 	

	 	 	 	 	 
	BankOne, N.A	 	
One BankOne Plaza
	 	One BankOne Plaza
	 	 	
Suite IL1-0636
	 	Suite IL1-0636
	 	 	
Chicago, IL 60670
	 	Chicago, IL 60670
	 	 	
Attn: Ronald J. Cromey
	 	Attn: Ronald J. Cromey
	 	 	
Tel: (312) 732-7494
	 	Tel: (312) 732-7494
	 	 	
Fax: (312) 732-4849
	 	Fax: (312) 732-4849
	 	 	 	 	 
	The Bank of New York	 	
One Wall Street
	 	One Wall Street
	 	 	
New York, NY 10286
	 	New York, NY 10286
	 	 	 	 	 
	Citibank, N.A	 	
Two Penns Way
	 	Two Penns Way
	 	 	
New Castle, DE 19720
	 	New Castle, DE 19720
	 	 	
Attn: Cristian Garcia
	 	Attn: Cristian Garcia
	 	 	
Tel: (302) 894-6054
	 	Tel: (302) 894-6054
	 	 	
Fax: (302) 894-6120
	 	Fax: (302) 894-6120
	 	 	 	 	 
	JPMorgan Chase Bank	 	
4 Metrotech Center, 22nd Floor
	 	4 Metrotech Center, 22nd Floor
	 	 	
Brooklyn, NY 11245
	 	Brooklyn, NY 11245
	 	 	
Attn: Charles Swarns
	 	Attn: Charles Swarns
	 	 	
Tel: (718) 242-3792
	 	Tel: (718) 242-3792
	 	 	
Fax: (718) 242-3846
	 	Fax: (718) 242-3846
	 	 	 	 	 
	Riggs Bank N.A	 	
5700 Rivertech Center
	 	5700 Rivertech Center
	 	 	
Riverdale, MD 20727
	 	Riverdale, MD 20727
	 	 	
Attn: Katie Alston
	 	Attn: Katie Alston
	 	 	
T: 301 887-8966
	 	T: 301 887-8966
	 	 	
F: 301 887-8010
	 	F: 301 887-8010
	 	 	 	 	 
	SunTrust Bank	 	
1445 New York Avenue, NW
	 	1445 New York Avenue, NW
	 	 	
Washington, DC 20005
	 	Washington, DC 20005
	 	 	
Attn: Nancy Petrash
	 	Attn: Nancy Petrash
	 	 	
T: 202 879-6432
	 	T: 202 879-6432
	 	 	
F: 202 879-6137
	 	F: 202 879-6137
	 	 	 	 	 
	Wachovia Bank, National	 	
1970 Chain Bridge Rd
	 	1970 Chain Bridge Rd
	Association	 	
3rd Floor VA 1993
	 	3rd Floor VA 1993
	 	 	
McLean, VA 22102
	 	McLean, VA 22102
	 	 	
Attn: Barbara Angel
	 	Attn: Barbara Angel
	 	 	
Tel: (703) 760-6369
	 	Tel: (703) 760-6369
	 	 	
Fax: (703) 760-6172
	 	Fax: (703) 760-6172

 

 

SCHEDULE 5.02(a)

EXISTING LIENS

 

[None]

 

 

EXHIBIT A-1 — FORM OF

REVOLVING CREDIT

PROMISSORY NOTE

	 	 	 	 	 
	U.S.$__________________	 	
 
	 	Dated: __________________, 200_

          FOR VALUE RECEIVED, the undersigned, THE WASHINGTON POST COMPANY, a
Delaware corporation (the “Borrower”), HEREBY PROMISES TO PAY to the order of
______ (the “Lender”) for the account of its Applicable
Lending Office on the later of the Termination Date and the date designated
pursuant to Section 2.06 of the Credit Agreement (each as defined in the Credit
Agreement referred to below) the principal sum of U.S.$[amount of the Lender’s
Commitment in figures] or, if less, the aggregate principal amount of the
Revolving Credit Advances made by the Lender to the Borrower pursuant to the
364-Day Credit Agreement dated as of August 14, 2002 among the Borrower, the
Lender and certain other lenders parties thereto, Citibank, N.A., as Agent for
the Lender and such other lenders (as amended or modified from time to time,
the “Credit Agreement”; the terms defined therein being used herein as therein
defined), outstanding on such date.

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

          Both principal and interest are payable in lawful money of the United
States of America to Citibank, N.A., as Agent, at 388 Greenwich Street, New
York, New York 10013, in same day funds. Each Revolving Credit Advance owing
to the Lender by the Borrower pursuant to the Credit Agreement, and all
payments made on account of principal thereof, shall be recorded by the Lender
and, prior to any transfer hereof, endorsed on the grid attached hereto which
is part of this Promissory Note.

 

 

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

	 
	THE WASHINGTON POST COMPANY
	 
	By                                                                                           
	      Title:

2

 

ADVANCES AND PAYMENTS OF PRINCIPAL

	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	Amount of	 	Unpaid	 	 
	 	 	Amount of	 	Principal Paid	 	Principal	 	 
	Date	 	Advance	 	or Prepaid	 	Balance	 	Notation Made By
	

	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	 	 
	

3

 

EXHIBIT A-2 — FORM OF

COMPETITIVE BID

PROMISSORY NOTE

	 	 	 	 	 
	U.S.$__________________	 	
 
	 	Dated: __________________, 200_

          FOR VALUE RECEIVED, the undersigned, THE WASHINGTON POST COMPANY, a
Delaware corporation (the “Borrower”), HEREBY PROMISES TO PAY to the order of
______ (the “Lender”) for the account of its Applicable
Lending Office (as defined in the 364-Day Credit Agreement dated as of August
14, 2002 among the Borrower, the Lender and certain other lenders parties
thereto, Citibank, N.A., as Agent for the Lender and such other lenders (as
amended or modified from time to time, the “Credit Agreement”; the terms
defined therein being used herein as therein defined)), on ______,
200_, the principal amount of U.S.$______.

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

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

          Both principal and interest are payable in lawful money of the United
States of America to Citibank, N.A. for the account of the Lender at the office
of Citibank, N.A., at 388 Greenwich Street, New York, New York 10013 in same
day funds.

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

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

 

 

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

	 
	THE WASHINGTON POST COMPANY
	 
	By                                                                                           
	      Title

2

 

EXHIBIT B-1 — FORM OF NOTICE OF

REVOLVING CREDIT BORROWING

	 	 	 
	Citibank, N.A., as Agent

  for the Lenders parties

  to the Credit Agreement

  referred to below

Two Penns Way

New Castle, Delaware 19720	 	
[Date]

     Attention: Cristian Garcia

Ladies and Gentlemen:

          The undersigned, The Washington Post Company, refers to the 364-Day Credit
Agreement, dated as of August 14, 2002 (as amended or modified from time to
time, the “Credit Agreement”, the terms defined therein being used herein as
therein defined), among the undersigned, certain Lenders parties thereto,
Citibank, N.A., as Agent for said Lenders, and hereby gives you notice,
irrevocably, pursuant to Section 2.02 of the Credit Agreement that the
undersigned hereby requests a Revolving Credit Borrowing under the Credit
Agreement, and in that connection sets forth below the information relating to
such Revolving Credit Borrowing (the “Proposed Revolving Credit Borrowing”) as
required by Section 2.02(a) of the Credit Agreement:

		
	 	        (i)     The Business Day of the Proposed Revolving Credit Borrowing is
__________________, 200_.
	 
	 	        (ii)     The Type of Advances comprising the Proposed Revolving Credit
Borrowing is [Base Rate Advances] [Eurodollar Rate Advances].
	 
	 	        (iii)     The aggregate amount of the Proposed Revolving Credit
Borrowing is $__________________.
	 
	 	        (iv)     [The initial Interest Period for each Eurodollar Rate Advance
made as part of the Proposed Revolving Credit Borrowing is ______
month[s].]

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

		
	 	        (A)     the representations and warranties contained in Section 4.01 of
the Credit Agreement are correct in all material respects, before and
after giving effect to the Proposed Revolving Credit Borrowing and to the
application of the proceeds therefrom, as though made on and as of such
date, except to the extent they expressly relate to an earlier date; and

 

 

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

	 
	Very truly yours,THE WASHINGTON POST COMPANY

	 
	By                                                                                           
	      Title:

2

 

EXHIBIT B-2 — FORM OF NOTICE OF

COMPETITIVE BID BORROWING

	 	 	 
	Citibank, N.A., as Agent

  for the Lenders parties

  to the Credit Agreement

  referred to below

Two Penns Way

New Castle, Delaware 19720	 	
[Date]

Attention: Cristian Garcia

Ladies and Gentlemen:

          The undersigned, The Washington Post Company, refers to the 364-Day Credit
Agreement, dated as of August 14, 2002 (as amended or modified from time to
time, the “Credit Agreement”, the terms defined therein being used herein as
therein defined), among the undersigned, certain Lenders parties thereto,
Citibank, N.A., as Agent for said Lenders, and hereby gives you notice,
irrevocably, pursuant to Section 2.03 of the Credit Agreement that the
undersigned hereby requests a Competitive Bid Borrowing under the Credit
Agreement, and in that connection sets forth the terms on which such
Competitive Bid Borrowing (the “Proposed Competitive Bid Borrowing”) is
requested to be made:

	 	 	 	 	 
	(A)	 	
Date of Competitive Bid Borrowing
	 	__________________
	(B)	 	
Amount of Competitive Bid Borrowing
	 	__________________
	(C)	 	
[Maturity Date] [Interest Period]
	 	__________________
	(D)	 	
Interest Rate Basis
	 	__________________
	(E)	 	
Interest Payment Date(s)
	 	__________________
	(F)	 	
__________________
	 	__________________
	(G)	 	
__________________
	 	__________________
	(H)	 	
__________________
	 	__________________

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

		
	 	        (a)     the representations and warranties contained in Section 4.01 of
the Credit Agreement are correct in all material respects, before and
after giving effect to the Proposed Competitive Bid Borrowing and to the
application of the proceeds therefrom, as though made on and as of such
date, except to the extent they expressly relate to an earlier date;
	 
	 	        (b)     no event has occurred and is continuing, or would result from
the Proposed Competitive Bid Borrowing or from the application of the
proceeds therefrom, that constitutes a Default; and

 

 

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

          The undersigned hereby confirms that the Proposed Competitive Bid
Borrowing is to be made available to it in accordance with Section 2.03(a)(v)
of the Credit Agreement.

	 
	Very truly yours,THE WASHINGTON POST COMPANY

	 
	By                                                                                           
	      Title:

2

 

EXHIBIT C — FORM OF

ASSIGNMENT AND ACCEPTANCE

          Reference is made to the 364-Day Credit Agreement dated as of August 14,
2002 (as amended or modified from time to time, the “Credit Agreement”) among
The Washington Post Company, a Delaware corporation (the “Borrower”), the
Lenders (as defined in the Credit Agreement), Citibank, N.A., as agent for the
Lenders (the “Agent”). Terms defined in the Credit Agreement are used herein
with the same meaning.

          The “Assignor” and the “Assignee” referred to on Schedule 1 hereto agree
as follows:

          1.     The Assignor hereby sells and assigns to the Assignee, and the Assignee
hereby purchases and assumes from the Assignor, an interest in and to the
Assignor’s rights and obligations under the Credit Agreement as of the date
hereof (other than in respect of Competitive Bid Advances and Competitive Bid
Notes) equal to the percentage interest specified on Schedule 1 hereto of all
outstanding rights and obligations under the Credit Agreement (other than in
respect of Competitive Bid Advances and Competitive Bid Notes). After giving
effect to such sale and assignment, the Assignee’s Commitment and the amount of
the Revolving Credit Advances owing to the Assignee will be as set forth on
Schedule 1 hereto.

          2.     The Assignor (i) represents and warrants that it is the legal and
beneficial owner of the interest being assigned by it hereunder and that such
interest is free and clear of any adverse claim; (ii) makes no representation
or warranty and assumes no responsibility with respect to any statements,
warranties or representations made in or in connection with the Credit
Agreement or the execution, legality, validity, enforceability, genuineness,
sufficiency or value of the Credit Agreement or any other instrument or
document furnished pursuant thereto; (iii) makes no representation or warranty
and assumes no responsibility with respect to the financial condition of the
Borrower or the performance or observance by the Borrower of any of its
obligations under the Credit Agreement or any other instrument or document
furnished pursuant thereto; and (iv) attaches the Revolving Credit Note held by
the Assignor and requests that the Agent exchange such Revolving Credit Note
for a new Revolving Credit Note payable to the order of the Assignee in an
amount equal to the Commitment assumed by the Assignee pursuant hereto or new
Revolving Credit Notes payable to the order of the Assignee in an amount equal
to the Commitment assumed by the Assignee pursuant hereto and the Assignor in
an amount equal to the Commitment retained by the Assignor under the Credit
Agreement, respectively, as specified on Schedule 1 hereto.

          3.     The Assignee (i) confirms that it has received a copy of the Credit
Agreement, together with copies of the financial statements referred to in
Section 4.01 thereof and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into this
Assignment and Acceptance; (ii) agrees that it will, independently and without
reliance upon the Agent, the Assignor or any other Lender and based on such
documents and information as it shall deem appropriate at the time, continue to
make its own credit decisions in taking or not taking action under the Credit
Agreement; (iii) confirms that it is an Eligible Assignee; (iv) appoints and
authorizes the Agent to take such action as agent

1

 

on its behalf and to exercise such powers and discretion under the Credit
Agreement as are delegated to the Agent by the terms thereof, together with
such powers and discretion as are reasonably incidental thereto; (v) agrees
that it will perform in accordance with their terms all of the obligations that
by the terms of the Credit Agreement are required to be performed by it as a
Lender; and (vi) attaches any U.S. Internal Revenue Service forms required
under Section 2.14 of the Credit Agreement.

          4.     Following the execution of this Assignment and Acceptance, it will be
delivered to the Agent for acceptance and recording by the Agent. The
effective date for this Assignment and Acceptance (the “Effective Date”) shall
be the date of acceptance hereof by the Agent, unless otherwise specified on
Schedule 1 hereto.

          5.     Upon such acceptance and recording by the Agent, as of the Effective
Date, (i) the Assignee shall be a party to the Credit Agreement and, to the
extent provided in this Assignment and Acceptance, have the rights and
obligations of a Lender thereunder and (ii) the Assignor shall, to the extent
provided in this Assignment and Acceptance, relinquish its rights and be
released from its obligations under the Credit Agreement.

          6.     Upon such acceptance and recording by the Agent, from and after the
Effective Date, the Agent shall make all payments under the Credit Agreement
and the Revolving Credit Notes in respect of the interest assigned hereby
(including, without limitation, all payments of principal, interest and
facility fees with respect thereto) to the Assignee. The Assignor and Assignee
shall make all appropriate adjustments in payments under the Credit Agreement
and the Revolving Credit Notes for periods prior to the Effective Date directly
between themselves.

          7.     This Assignment and Acceptance shall be governed by, and construed in
accordance with, the laws of the State of New York.

          8.     This Assignment and Acceptance may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement. Delivery of an executed
counterpart of Schedule 1 to this Assignment and Acceptance by telecopier shall
be effective as delivery of a manually executed counterpart of this Assignment
and Acceptance.

          IN WITNESS WHEREOF, the Assignor and the Assignee have caused Schedule 1
to this Assignment and Acceptance to be executed by their officers thereunto
duly authorized as of the date specified thereon.

2

 

Schedule 1

to

Assignment and Acceptance

	 	 	 
	Percentage interest assigned:
	 	
______%
	 	 	 
	Assignee’s Commitment:	 	
$______
	 	 	 
	Aggregate outstanding principal amount of Revolving
Credit Advances assigned:	 	
$______
	 	 	 
	Principal amount of Revolving Credit Note payable to Assignee:	 	
$______
	 	 	 
	Principal amount of Revolving Credit Note payable to Assignor:	 	
$______
	 	 	 
	Effective Date:* ______, 200_	 	 

	 
	[NAME OF ASSIGNOR], as Assignor
	 
	By                                                                                           
	      Title:
	 
	Dated: ______, 200______
	 
	[NAME OF ASSIGNEE], as Assignee
	 
	By                                                                                           
	      Title:
	 
	Dated: ______, 200______

	*	 	This date should be no earlier than five Business Days after the delivery of
this Assignment and Acceptance to the Agent.

3

 

	 
	Domestic Lending Office:
	[Address]
	 
	Eurodollar Lending Office:
	[Address]

	 	 	 
	Accepted and Approved this	 	 
	 	 	 
	______ day of ______, 200____	 	 
	 	 	 
	CITIBANK, N.A., as Agent	 	 
	 	 	 
	By                                                                                           
	      Title:
	 	 	 
	Approved this
______ day	 	 
	of ______, 200____	 	 
	 	 	 
	THE WASHINGTON POST COMPANY	 	 
	 	 	 
	By                                                                                           
	      Title:

4

 

EXHIBIT D — FORM OF

ASSUMPTION AGREEMENT

	 	Dated: ______

The Washington Post Company

1150 15th Street, N.W.

Washington, D.C. 20071

Citibank, N.A., as Agent

Two Penns Way

New Castle, Delaware 19720

     Attention: Cristian Garcia

Ladies and Gentlemen:

          Reference is made to the 364-Day Credit Agreement dated as of August 14,
2002 among The Washington Post Company (the “Borrower”), the Lenders parties
thereto, Citibank, N.A., as Agent (the “Credit Agreement”; terms defined
therein being used herein as therein defined), for such Lenders.

          The undersigned (the “Assuming Lender”) proposes to become an Assuming
Lender pursuant to Section [2.05(b)] [2.17] of the Credit Agreement and, in
that connection, hereby agrees that it shall become a Lender for purposes of
the Credit Agreement on [applicable Increase Date/Extension Date] and that its
Commitment shall as of such date be $______.

          The undersigned (i) confirms that it has received a copy of the Credit
Agreement, together with copies of the financial statements referred to in
Section 4.01(e) thereof, the most recent financial statements referred to in
Section 5.01(i) thereof and such other documents and information as it has
deemed appropriate to make its own credit analysis and decision to enter into
this Assumption Agreement; (ii) agrees that it will, independently and without
reliance upon the Agent or any other Lender and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking action under the Credit Agreement;
(iii) appoints and authorizes the Agent to take such action as agent on its
behalf and to exercise such powers under the Credit Agreement as are delegated
to the Agent by the terms thereof, together with such powers as are reasonably
incidental thereto; (iv) agrees that it will perform in accordance with their
terms all of the obligations which by the terms of the Credit Agreement are
required to be performed by it as a Lender; (v) confirms that it is an Eligible
Assignee; (vi) specifies as its Lending Office (and address for notices) the
offices set forth beneath its name on the signature pages hereof; and (vii)
attaches the forms prescribed by the Internal Revenue Service of the United
States required under Section 2.14 of the Credit Agreement.

          The Assuming Lender requests that the Borrower deliver to the Agent (to be
promptly delivered to the Assuming Lender) a Revolving Credit Note payable to
the order of the Assuming Lender, dated as of the [applicable Increase
Date/Extension Date] and substantially in the form of Exhibit A-1 to the Credit
Agreement.

 

 

          The effective date for this Assumption Agreement shall be [applicable
Increase Date/Extension Date]. Upon delivery of this Assumption Agreement to
the Borrower and the Agent, and satisfaction of all conditions imposed under
Section 2.05(b) as of [date specified above], the undersigned shall be a party
to the Credit Agreement and have the rights and obligations of a Lender
thereunder. As of [date specified above], the Agent shall make all payments
under the Credit Agreement in respect of the interest assumed hereby
(including, without limitation, all payments of principal, interest and
commitment fees) to the Assuming Lender.

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

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

	 
	Very truly yours,
	 
	[NAME OF ASSUMING LENDER]
	 
	By ______________________________
	      Name:
	      Title:
	 
	Domestic Lending Office
	(and address for notices):
	 
	[Address]
	 
	Eurodollar Lending Office:
	 
	[Address]

2

 

Acknowledged and Agreed to:

THE WASHINGTON POST COMPANY

	 	 	 
	By ______________________________
	      Name:
	      Title:

3

 

EXHIBIT E — FORM OF

OPINION OF COUNSEL

FOR THE BORROWER

	 	August 14, 2002

To each of the Lenders parties

to the Credit Agreement dated

as of August 14, 2002 among

The Washington Post Company,

said Lenders, Citibank, N.A., as

Agent for said Lenders

The Washington Post Company

Ladies and Gentlemen:

          This opinion is furnished to you pursuant to Section 3.01(c)(iv) of the
364-Day Credit Agreement, dated as of August 14, 2002 (the “Credit Agreement”),
among The Washington Post Company (the “Borrower”), the Lenders parties
thereto, Citibank, N.A., as Agent for said Lenders. Terms defined in the
Credit Agreement are used herein as therein defined.

          I am the General Counsel of the Borrower and as such I am familiar with
the Credit Agreement and the corporate proceedings taken by the Borrower to
authorize the execution and delivery of the Credit Agreement.

          For purposes of this opinion, I have examined:

          (1)     The Credit Agreement.

          (2)     The documents furnished by the Borrower pursuant to Section
3.01(c) of the Credit Agreement.

          (3)     The Certificate of Incorporation of the Borrower and all
amendments thereto (the “Charter”).

          (4)     The by-laws of the Borrower and all amendments thereto (the
“By-laws”).

          (5)     A certificate of the Secretary of State of Delaware, dated
August ______, 2002, attesting to the continued corporate existence and good
standing of the Borrower in that State.

          In addition, I have examined the originals, or copies certified to my
satisfaction, of such other corporate records of the Borrower, certificates of
public officials and of officers of the Borrower, and agreements, instruments
and other documents, as I have deemed necessary as a basis for the opinions
expressed below. As to questions of fact material to such opinions, I have,
when relevant facts were not independently established by me, relied upon
certificates of

 

 

the Borrower or its officers or of public officials. I have assumed the
due execution and delivery, pursuant to due authorization, of the Credit
Agreement by the Initial Lenders and the Agent.

          My opinions expressed below are limited to the law of the State of New
York, the General Corporation Law of the State of Delaware and the Federal law
of the United States of America.

          Based upon the foregoing and upon such investigation as I have deemed
necessary, I am of the following opinion:

		
	 	        1.     The Borrower is a corporation validly existing and in good
standing under the laws of the State of Delaware.
	 
	 	        2.     The execution, delivery and performance by the Borrower of the
Credit Agreement and the Notes, and the consummation of the transactions
contemplated thereby, are within the Borrower’s corporate powers, and
have been duly authorized by all necessary corporate action, and do not
contravene (i) the Charter or the By-laws or (ii) any law, rule or
regulation applicable to the Borrower (including, without limitation,
Regulation X of the Board of Governors of the Federal Reserve System) or
(iii) to the best of my knowledge after appropriate inquiry, (x) any
contractual restriction or (y) any legal restriction contained in orders,
writs, judgments, awards, injunctions or decrees applicable to the
Borrower or its assets, in each case that affects or purports to affect
the Borrower’s right to borrow money or the Borrower’s obligations under
the Credit Agreement or Notes. The Credit Agreement and the Notes
delivered on the date hereof have been duly executed and delivered on
behalf of the Borrower.
	 
	 	        3.     No authorization, approval or other action by, and no notice to
or filing with, any United States Federal, New York or, to the extent
required under the General Corporation Law of the State of Delaware,
Delaware governmental authority or regulatory body is required for the
due execution, delivery and performance by the Borrower of the Credit
Agreement and the Notes.
	 
	 	        4.     The Credit Agreement is, and when executed and delivered in
connection with Borrowings, the Notes will be, legal, valid and binding
obligations of the Borrower enforceable against the Borrower in
accordance with their respective terms.
	 
	 	        5.     To the best of my knowledge after appropriate inquiry, there are
no pending or overtly threatened actions or proceedings against the
Borrower or any of its Subsidiaries before any court, governmental agency
or arbitrator that purport to affect the legality, validity, binding
effect or enforceability of the Credit Agreement or any of the Notes or
the consummation of the transactions contemplated thereby or that are
likely to have a materially adverse effect upon the financial condition
or operations of the Borrower and its Subsidiaries taken as a whole.

The opinions set forth above are subject to the following qualifications:

2

 

		
	 	        (a)     My opinion in paragraph 4 above as to enforceability is subject
to the effect of any applicable bankruptcy, insolvency (including,
without limitation, all laws relating to fraudulent transfers),
reorganization, moratorium or similar law affecting creditors’ rights
generally.
	 
	 	        (b)     My opinion in paragraph 4 above as to enforceability is subject
to the effect of general principles of equity, including, without
limitation, concepts of materiality, reasonableness, good faith and fair
dealing (regardless of whether considered in a proceeding in equity or at
law).
	 
	 	        (c)     Insofar as provisions contained in the Credit Agreement provide
for indemnification, the enforceability thereof may be limited by public
policy considerations.
	 
	 	        (d)     I express no opinion as to (i) Section 2.15 of the Credit
Agreement insofar as it provides that any Lender purchasing a
participation from another Lender pursuant thereto may exercise set-off
of similar rights with respect to such participation and (ii) the effect
of the law of any jurisdiction other than the State of New York wherein
any Lender may be located or wherein enforcement of the Credit Agreement
or the Notes may be sought that limits the rates of interest legally
chargeable or collectible.

	 	Very truly yours,

3exv4w4

 

Exhibit 4.4

CONFORMED COPY

U.S. $350,000,000

5-YEAR CREDIT AGREEMENT

Dated as of August 14, 2002

Among

THE WASHINGTON POST COMPANY

as Borrower

and

THE INITIAL LENDERS NAMED HEREIN

as Initial Lenders

and

CITIBANK, N.A.

as Administrative Agent

and

WACHOVIA BANK, NATIONAL ASSOCIATION

SUNTRUST BANK

as Syndication Agents

and

JPMORGAN CHASE BANK

BANK ONE, N.A.

as Documentation Agents

SALOMON SMITH BARNEY INC.

Lead Arranger and Book Manager

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	 	 	Page
	 	 	 	 	
	 	 	
ARTICLE I	 	 
	 
	 	 	
DEFINITIONS AND ACCOUNTING TERMS	 	 
	SECTION 1.01.	 	
Certain Defined Terms
	 	1
	SECTION 1.02.	 	
Computation of Time Periods
	 	13
	SECTION 1.03.	 	
Accounting Terms
	 	13
	 
	 	 	
ARTICLE II	 	 
	 
	 	 	
AMOUNTS AND TERMS OF THE ADVANCES	 	 
	 
	SECTION 2.01.	 	
The Revolving Credit Advances
	 	14
	SECTION 2.02.	 	
Making the Revolving Credit Advances
	 	14
	SECTION 2.03.	 	
The Competitive Bid Advances
	 	15
	SECTION 2.04.	 	
Fees
	 	19
	SECTION 2.05.	 	
Termination, Reduction or Increase of the Commitments
	 	19
	SECTION 2.06.	 	
Repayment of Revolving Credit Advances
	 	21
	SECTION 2.07.	 	
Interest on Revolving Credit Advances
	 	21
	SECTION 2.08.	 	
Interest Rate Determination
	 	22
	SECTION 2.09.	 	
Optional Conversion of Revolving Credit Advances
	 	23
	SECTION 2.10.	 	
Optional Prepayments of Revolving Credit Advances
	 	24
	SECTION 2.11.	 	
Increased Costs
	 	24
	SECTION 2.12.	 	
Illegality
	 	25
	SECTION 2.13.	 	
Payments and Computations
	 	26
	SECTION 2.14.	 	
Taxes
	 	27
	SECTION 2.15.	 	
Sharing of Payments, Etc
	 	29
	SECTION 2.16.	 	
Use of Proceeds
	 	29
	 
	 	 	
ARTICLE III	 	 
	 
	 	 	
CONDITIONS TO EFFECTIVENESS AND LENDING	 	 
	 
	SECTION 3.01.	 	
Conditions Precedent to Effectiveness of Sections 2.01
and 2.03
	 	29
	SECTION 3.02.	 	
Conditions Precedent to Each Revolving Credit Borrowing
and Increase Date
	 	30
	SECTION 3.03.	 	
Conditions Precedent to Each Competitive Bid Borrowing
	 	31
	SECTION 3.04.	 	
Determinations Under Section 3.01
	 	31

i

 

	 	 	 	 	 
	 	 	
ARTICLE IV	 	 
	 
	 	 	
REPRESENTATIONS AND WARRANTIES	 	 
	 
	SECTION 4.01.	 	
Representations and Warranties of the Borrower
	 	32
	 
	 	 	
ARTICLE V

COVENANTS OF THE BORROWER	 	 
	 
	SECTION 5.01.	 	
Affirmative Covenants
	 	33
	SECTION 5.02.	 	
Negative Covenants
	 	35
	SECTION 5.03.	 	
Financial Covenant
	 	37
	 
	 	 	
ARTICLE VI	 	 
	 
	 	 	
EVENTS OF DEFAULT	 	 
	 
	SECTION 6.01.	 	
Events of Default
	 	37
	 
	 	 	
ARTICLE VII	 	 
	 
	 	 	
THE AGENT	 	 
	 
	SECTION 7.01.	 	
Authorization and Action
	 	39
	SECTION 7.02.	 	
Agent’s Reliance, Etc
	 	39
	SECTION 7.03.	 	
Citibank and Affiliates
	 	40
	SECTION 7.04.	 	
Lender Credit Decision
	 	40
	SECTION 7.05.	 	
Indemnification
	 	40
	SECTION 7.06.	 	
Successor Agent
	 	40
	SECTION 7.07.	 	
Documentation Agent and Syndication Agent
	 	41
	 
	 	 	
ARTICLE VIII	 	 
	 
	 	 	
MISCELLANEOUS	 	 
	 
	SECTION 8.01.	 	
Amendments, Etc
	 	41
	SECTION 8.02.	 	
Notices, Etc
	 	41
	SECTION 8.03.	 	
No Waiver; Remedies
	 	42
	SECTION 8.04.	 	
Costs and Expenses
	 	42
	SECTION 8.05.	 	
Right of Set-off
	 	43
	SECTION 8.06.	 	
Binding Effect
	 	43
	SECTION 8.07.	 	
Assignments and Participations
	 	43
	SECTION 8.08.	 	
Confidentiality
	 	46
	SECTION 8.09.	 	
Governing Law
	 	46
	SECTION 8.10.	 	
Execution in Counterparts
	 	46

ii

 

	 	 	 	 	 
	SECTION 8.11.	 	
Jurisdiction, Etc
	 	47
	SECTION 8.12.	 	
Waiver of Jury Trial
	 	47

iii

 

Schedules

Schedule I – List of Applicable Lending Offices

Schedule 5.02(a) – Existing Liens

	 
	

Exhibits
	 
	Exhibit A-1 – Form of Revolving Credit Note
	 
	Exhibit A-2 – Form of Competitive Bid Note
	 
	Exhibit B-1 – Form of Notice of Revolving Credit Borrowing
	 
	Exhibit B-2 – Form of Notice of Competitive Bid Borrowing
	 
	Exhibit C – Form of Assignment and Acceptance
	 
	Exhibit D – Form of Assumption Agreement
	 
	Exhibit E – Form of Opinion of Counsel for the Borrower

iv

 

5-YEAR CREDIT AGREEMENT

Dated as of August 14, 2002

               The Washington Post Company, a Delaware corporation (the “Borrower”), the
banks, financial institutions and other institutional lenders (the “Initial
Lenders”) listed on the signature pages hereof, and Citibank, N.A.
(“Citibank”), as administrative agent (the “Agent”) for the Lenders (as
hereinafter defined), agree as follows:

ARTICLE I

DEFINITIONS AND ACCOUNTING TERMS

               SECTION 1.01. Certain Defined Terms. As used in this Agreement, the
following terms shall have the following meanings (such meanings to be equally
applicable to both the singular and plural forms of the terms defined):

		
	 	     “Advance” means a Revolving Credit Advance or a Competitive Bid
Advance.
	 
	 	     “Affiliate” means, as to any Person, any other Person that, directly
or indirectly, controls, is controlled by or is under common control with
such Person or is a director or executive officer of such Person. For
purposes of this definition, the term “control” (including the terms
“controlling”, “controlled by” and “under common control with”) of a
Person means the possession, direct or indirect, of the power to vote 10%
or more of the Voting Stock of such Person or to direct or cause the
direction of the management and policies of such Person, whether through
the ownership of Voting Stock, by contract or otherwise.
	 
	 	     “Agent’s Account” means the account of the Agent maintained by the
Agent at Citibank with its office at 388 Greenwich Street, New York, New
York 10013, Account No. 36852248, Attention: Bank Loans Syndications.
	 
	 	     “Applicable Lending Office” means, with respect to each Lender, such
Lender’s Domestic Lending Office in the case of a Base Rate Advance and
such Lender’s Eurodollar Lending Office in the case of a Eurodollar Rate
Advance and, in the case of a Competitive Bid Advance, the office of such
Lender notified by such Lender to the Agent as its Applicable Lending
Office with respect to such Competitive Bid Advance.
	 
	 	     “Applicable Margin” means as of any date, (a) for Base Rate
Advances, 0% per annum and (b) for Eurodollar Rate Advances, a percentage
per annum determined by reference to the Performance Level in effect on
such date as set forth below:

 

 

	 	 	 	 	 
	 	 	Applicable Margin for
	 	 	Eurodollar Rate
	Performance Level	 	Advances
	
	 	

	I	 	 	0.180	%
	II	 	 	0.220	%
	III	 	 	0.260	%
	IV	 	 	0.300	%
	V	 	 	0.475	%

		
	 	     “Applicable Percentage” means, as of any date, a percentage per
annum determined by reference to the Performance Level in effect on such
date as set forth below:

	 	 	 	 	 
	Performance Level	 	Applicable Percentage
	
	 	

	I	 	 	0.070	%
	II	 	 	0.080	%
	III	 	 	0.090	%
	IV	 	 	0.100	%
	V	 	 	0.150	%

		
	 	     “Applicable Utilization Fee” means, as of any date on which the
aggregate Advances exceed 50% of the Commitments, a percentage per annum
determined by reference to the Performance Level in effect on such date
as set forth below:

	 	 	 	 	 
	Performance Level	 	Applicable Utilization Fee
	
	 	

	I	 	 	0.050	%
	II	 	 	0.050	%
	III	 	 	0.050	%
	IV	 	 	0.050	%
	V	 	 	0.125	%

		
	 	     “Assignment and Acceptance” means an assignment and acceptance
entered into by a Lender and an Eligible Assignee, accepted and approved
by the Agent and approved by the Borrower, in substantially the form of
Exhibit C hereto.

2

 

		
	 	     “Assuming Lender” means an Eligible Assignee not previously a Lender
that becomes a Lender hereunder pursuant to Section 2.05(b).
	 
	 	     “Assumption Agreement” means an agreement in substantially the form
of Exhibit D hereto by which an Eligible Assignee agrees to become a
Lender hereunder pursuant to Section 2.05(b) agreeing to be bound by all
obligations of a Lender hereunder.
	 
	 	     “Base Rate” means a fluctuating interest rate per annum in effect
from time to time, which rate per annum shall at all times be equal to
the higher of:

		
	 	     (a)     the rate of interest announced publicly by Citibank in New
York, New York, from time to time, as Citibank’s base rate; and
	 
	 	     (b)     1/2 of one percent per annum above the Federal Funds Rate.

		
	 	     “Base Rate Advance” means a Revolving Credit Advance that bears
interest as provided in Section 2.07(a)(i).
	 
	 	     “Borrowing” means a Revolving Credit Borrowing or a Competitive Bid
Borrowing.
	 
	 	     “Business Day” means a day of the year on which banks are not
required or authorized by law to close in New York City and, if the
applicable Business Day relates to any Eurodollar Rate Advances, on which
dealings are carried on in the London interbank market.
	 
	 	     “Commitment” means, with respect to any Lender at any time (i) the
amount set forth opposite such Lender’s name on the signature pages
hereof, (ii) if such Lender has become a Lender hereunder pursuant to an
Assumption Agreement, the amount set forth as its Commitment in such
Assumption Agreement or (iii) if such Lender has entered into one or more
Assignments and Acceptances, the amount set forth for such Lender in the
Register maintained by the Agent pursuant to Section 8.07(d), as such
amount may be increased, terminated or reduced, as the case may be, at or
prior to such time pursuant to Section 2.05.
	 
	 	     “Commitment Date” has the meaning specified in Section 2.05(b)(i).
	 
	 	     “Commitment Increase” has the meaning specified in Section
2.05(b)(i).
	 
	 	     “Competitive Bid Advance” means an advance by a Lender to the
Borrower as part of a Competitive Bid Borrowing resulting from the
competitive bidding procedure described in Section 2.03 and refers to a
Fixed Rate Advance or a LIBO Rate Advance.
	 
	 	     “Competitive Bid Borrowing” means a borrowing consisting of
simultaneous Competitive Bid Advances from each of the Lenders whose
offer to make one or more Competitive Bid Advances as part of such
borrowing has been accepted under the competitive bidding procedure
described in Section 2.03.

3

 

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

		
	 	     “Confidential Information” means information that the Borrower
furnishes to the Agent or any Lender in a writing designated as
confidential, but does not include any such information that is or
becomes generally available to the public or that is or becomes available
to the Agent or such Lender from a source other than the Borrower that is
not, to the best of the Agent’s or such Lender’s knowledge, acting in
violation of a confidentiality agreement with or for the benefit of the
Borrower.
	 
	 	     “Consolidated” refers to the consolidation of accounts in accordance
with GAAP.
	 
	 	     “Continuing Directors” means individuals who at the date hereof are
directors of the Borrower and any other director (a) whose election or
nomination was approved by a majority of the then Continuing Directors or
(b) who was nominated by management at a time when Continuing Directors
constituted a majority of the board of directors of the Borrower.
	 
	 	     “Convert”, “Conversion” and “Converted” each refers to a conversion
of Revolving Credit Advances of one Type into Revolving Credit Advances
of the other Type pursuant to Section 2.08 or 2.09.
	 
	 	     “Debt” of any Person means, without duplication, (a) all
indebtedness of such Person for borrowed money, (b) all obligations of
such Person for the deferred purchase price of property or services
(other than trade payables not overdue by more than 120 days 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 obligations of such Person created or arising under
any conditional sale or other title retention agreement with respect to
property acquired by such Person (even though the rights and remedies of
the seller or lender under such agreement in the event of default are
limited to repossession or sale of such property), (e) all obligations of
such Person as lessee under leases that have been or should be, in
accordance with GAAP, recorded as capital leases, (f) all obligations,
contingent or otherwise, of such Person in respect of acceptances,
letters of credit or similar extensions of credit, (g) all Debt of others
referred to in clauses (a) through (f) above or clause (h) below
guaranteed directly or indirectly in any manner by such Person, or in
effect guaranteed directly or indirectly by such Person through an
agreement (1) to pay or purchase such Debt or to advance or supply funds
for the payment or purchase of such Debt, (2) to purchase, sell or lease
(as lessee or lessor) property, or to purchase or sell services,
primarily for the purpose of enabling the debtor to make payment of such
Debt or to assure the holder of such Debt against loss, (3) to supply
funds to or in any other manner invest in the debtor (including any
agreement to pay for property or services irrespective of whether such
property is received or such services are rendered) or (4) otherwise to
assure a creditor against loss, and (h) all Debt referred to in clauses
(a) through (g) above secured by (or for which the holder of such Debt
has an existing right, contingent or otherwise, to be secured by) any
Lien on

4

 

		
	 	property (including, without limitation, accounts and contract
rights) owned by such Person, even though such Person has not assumed or
become liable for the payment of such Debt.

		
	 	     “Default” means any Event of Default or any event that would
constitute an Event of Default but for the requirement that notice be
given or time elapse or both.
	 
	 	     “Domestic Lending Office” means, with respect to any Initial Lender,
the office of such Lender specified as its “Domestic Lending Office”
opposite its name on Schedule I hereto and, with respect to any other
Lender, the office of such Lender specified as its “Domestic Lending
Office” in the Assumption Agreement or in the Assignment and Acceptance
pursuant to which it became a Lender, or such other office of such Lender
as such Lender may from time to time specify to the Borrower and the
Agent.
	 
	 	     “Downgrade” means, with respect to any Lender, the lowest rating
that has been most recently announced for any class of non-credit
enhanced long-term senior unsecured debt issued by such Lender is lower
than BBB- by S&P or Baa3 by Moody’s.
	 
	 	     “Effective Date” has the meaning specified in Section 3.01.
	 
	 	     “Eligible Assignee” means (a) a Lender; (b) an Affiliate of a
Lender; (c) a commercial bank organized under the laws of the United
States, or any State thereof, and having total assets in excess of
$5,000,000,000; (d) a savings and loan association or savings bank
organized under the laws of the United States, or any State thereof, and
having total assets in excess of $5,000,000,000; (e) a commercial bank
organized under the laws of any other country that is a member of the
Organization for Economic Cooperation and Development or has concluded
special lending arrangements with the International Monetary Fund
associated with its General Arrangements to Borrow or of the Cayman
Islands, or a political subdivision of any such country, and having total
assets in excess of $5,000,000,000 so long as such bank is acting through
a branch or agency located in the United States or in the country in
which it is organized or another country that is described in this clause
(e); (f) the central bank of any country that is a member of the
Organization for Economic Cooperation and Development; and (g) any other
Person approved by the Agent and the Borrower, such approval not to be
unreasonably withheld or delayed; provided, however, that neither the
Borrower nor an Affiliate of the Borrower shall qualify as an Eligible
Assignee.
	 
	 	     “Environmental Action” means any action, suit, demand, demand
letter, claim, notice of non-compliance or violation, notice of liability
or potential liability, consent order or consent agreement relating in
any way to any Environmental Law, Environmental Permit or Hazardous
Materials or arising from alleged injury or threat of injury to health,
safety or the environment, including, without limitation, (a) by any
governmental or regulatory authority for enforcement, cleanup, removal,
response, remedial or other actions or damages and (b) by any
governmental or regulatory authority or any third party for damages,
contribution, indemnification, cost recovery, compensation or injunctive
relief.

5

 

		
	 	     “Environmental Law” means any federal, state, local or foreign
statute, law, ordinance, rule, regulation, code, order, judgment or
decree relating to pollution or protection of the environment, health,
safety or natural resources, including, without limitation, those
relating to the use, handling, transportation, treatment, storage,
disposal, release or discharge of Hazardous Materials.
	 
	 	     “Environmental Permit” means any permit, approval, identification
number, license or other authorization required under any Environmental
Law.
	 
	 	     “ERISA” means the Employee Retirement Income Security Act of 1974,
as amended from time to time, and the regulations promulgated and rulings
issued thereunder.
	 
	 	     “ERISA Affiliate” means any Person that for purposes of Title IV of
ERISA is a member of the Borrower’s controlled group, or under common
control with the Borrower, within the meaning of Section 414(b) or (c) of
the Internal Revenue Code or, solely for purposes of Sections 302 and 303
of ERISA and Section 412 of the Internal Revenue Code, is treated as a
single employer under Section 414(b), (c), (m) and (o) of the Internal
Revenue Code.
	 
	 	     “ERISA Event” means (a) (i) the occurrence of a reportable event,
within the meaning of Section 4043 of ERISA, with respect to any Plan
unless the 30-day notice requirement with respect to such event has been
waived by the PBGC, or (ii) the requirements of subsection (1) of Section
4043(b) of ERISA (without regard to subsection (2) of such Section) are
met with a contributing sponsor, as defined in Section 4001(a)(13) of
ERISA, of a Plan, and an event described in paragraph (9), (10), (11),
(12) or (13) of Section 4043(c) of ERISA is reasonably expected to occur
with respect to such Plan within the following 30 days; (b) the
application for a minimum funding waiver with respect to a Plan; (c) the
provision by the administrator of any Plan of a notice of intent to
terminate such Plan pursuant to Section 4041(a)(2) of ERISA (including
any such notice with respect to a plan amendment referred to in Section
4041(e) of ERISA); (d) the cessation of operations at a facility of the
Borrower or any ERISA Affiliate in the circumstances described in Section
4062(e) of ERISA; (e) the withdrawal by the Borrower or any ERISA
Affiliate from a Multiple Employer Plan during a plan year for which it
was a substantial employer, as defined in Section 4001(a)(2) of ERISA;
(f) the conditions for the imposition of a lien under Section 302(f) of
ERISA shall have been met with respect to any Plan; (g) the adoption of
an amendment to a Plan requiring the provision of security to such Plan
pursuant to Section 307 of ERISA; or (h) the institution by the PBGC of
proceedings to terminate a Plan pursuant to Section 4042 of ERISA, or the
occurrence of any event or condition described in Section 4042 of ERISA
that constitutes grounds for the termination of, or the appointment of a
trustee to administer, a Plan.
	 
	 	     “Eurocurrency Liabilities” has the meaning assigned to that term in
Regulation D of the Board of Governors of the Federal Reserve System, as
in effect from time to time.

6

 

		
	 	     “Eurocurrency Reserve Requirements” means the aggregate of the
maximum reserve percentages (including any marginal, special, emergency
or supplemental reserves) expressed as a decimal established by the Board
of Governors of the Federal Reserve System and any other banking
authority to which any Lender is subject and applicable to Eurocurrency
Liabilities, or any similar category of assets or liabilities relating to
eurocurrency fundings. Eurocurrency Reserve Requirements shall be
adjusted automatically on and as of the effective date of any change in
any reserve percentage.

		
	 	     “Eurodollar Lending Office” means, with respect to any Initial
Lender, the office of such Lender specified as its “Eurodollar Lending
Office” opposite its name on Schedule I hereto and, with respect to any
other Lender, the office of such Lender specified as its “Eurodollar
Lending Office” in the Assumption Agreement or in the Assignment and
Acceptance pursuant to which it became a Lender (or, if no such office is
specified, its Domestic Lending Office), or such other office of such
Lender as such Lender may from time to time specify to the Borrower and
the Agent.
	 
	 	     “Eurodollar Rate” means, for any Interest Period for each Eurodollar
Rate Advance comprising part of the same Revolving Credit Borrowing, an
interest rate per annum equal to the average (rounded upward to the
nearest whole multiple of 1/16 of 1% per annum, if such average is not
such a multiple) of the rate per annum at which deposits in U.S. dollars
are offered to the principal office of each of the Reference Banks in
London, England by prime banks in the London interbank market at 11:00
A.M. (London time) two Business Days before the first day of such
Interest Period in an amount substantially equal to such Reference Bank’s
Eurodollar Rate Advance comprising part of such Revolving Credit
Borrowing to be outstanding during such Interest Period and for a period
equal to such Interest Period. The Eurodollar Rate for any Interest
Period for each Eurodollar Rate Advance comprising part of the same
Revolving Credit Borrowing shall be determined by the Agent on the basis
of applicable rates furnished to and received by the Agent from the
Reference Banks two Business Days before the first day of such Interest
Period, subject, however, to the provisions of Section 2.08.
	 
	 	     “Eurodollar Rate Advance” means a Revolving Credit Advance that
bears interest as provided in Section 2.07(a)(ii).
	 
	 	     “Events of Default” has the meaning specified in Section 6.01.
	 
	 	     “Federal Funds Rate” means, for any period, a fluctuating interest
rate per annum equal for each day during such period to the weighted
average of the rates on overnight Federal funds transactions with members
of the Federal Reserve System arranged by Federal funds brokers, as
published for such day (or, if such day is not a Business Day, for the
next preceding Business Day) by the Federal Reserve Bank of New York, or,
if such rate is not so published for any day that is a Business Day, the
average of the quotations for such day on such transactions received by
the Agent from three Federal funds brokers of recognized standing
selected by it with the consent of the Borrower.
	 
	 	     “Fixed Rate Advances” has the meaning specified in Section
2.03(a)(i).

7

 

		
	 	     “GAAP” has the meaning specified in Section 1.03.

		
	 	     “Graham Interests” shall mean Donald E. Graham and his siblings,
their descendants and any relative by marriage of the foregoing, and any
trust for the benefit of any of the foregoing whether as an income or
residual beneficiary.
	 
	 	     “Hazardous Materials” means (a) petroleum and petroleum products,
byproducts or breakdown products, radioactive materials,
asbestos-containing materials, polychlorinated biphenyls and radon gas
and (b) any other chemicals, materials or substances designated,
classified or regulated as hazardous or toxic under any Environmental Law
and any pollutant or contaminant regulated under the Clean Water Act, 33
U.S.C. Sections 1251 et seq., or the Clean Air Act, 42 U.S.C. Sections
7401 et seq.
	 
	 	     “Increase Date” has the meaning specified in Section 2.05(b)(i).
	 
	 	     “Increasing Lender” has the meaning specified in Section 2.05(b)(i).
	 
	 	     “Interest Period” means, for each Eurodollar Rate Advance comprising
part of the same Revolving Credit Borrowing and each LIBO Rate Advance
comprising part of the same Competitive Bid Borrowing, the period
commencing on the date of such Eurodollar Rate Advance or LIBO Rate
Advance or the date of the Conversion of any Base Rate Advance into such
Eurodollar Rate Advance and ending on the last day of the period selected
by the Borrower pursuant to the provisions below and, thereafter, with
respect to Eurodollar Rate Advances, each subsequent period commencing on
the last day of the immediately preceding Interest Period and ending on
the last day of the period selected by the Borrower pursuant to the
provisions below. The duration of each such Interest Period shall be
one, two, three or six months or, if available to all the Lenders, nine
or twelve months, as the Borrower may, upon notice received by the Agent
not later than 11:00 A.M. (New York City time) on the third Business Day
prior to the first day of such Interest Period, select; provided,
however, that:

		
	 	     (i)     the Borrower may not select any Interest Period that ends
after the Termination Date in effect at the time of such selection;
	 
	 	     (ii)     Interest Periods commencing on the same date for
Eurodollar Rate Advances comprising part of the same Revolving
Credit Borrowing or for LIBO Rate Advances comprising part of the
same Competitive Bid Borrowing shall be of the same duration;
	 
	 	     (iii)     whenever the last day of any Interest Period would
otherwise occur on a day other than a Business Day, the last day of
such Interest Period shall be extended to occur on the next
succeeding Business Day, provided, however, that, if such extension
would cause the last day of such Interest Period to occur in the
next following calendar month, the last day of such Interest Period
shall occur on the next preceding Business Day; and

8

 

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

		
	 	     “Internal Revenue Code” means the Internal Revenue Code of 1986, as
amended from time to time, and the regulations promulgated and rulings
issued thereunder.
	 
	 	     “Lenders” means the Initial Lenders, each Assuming Lender that shall
become a party hereto pursuant to Section 2.05(b) and each Person that
shall become a party hereto pursuant to Section 8.07.
	 
	 	     “LIBO Rate” means, for any Interest Period for all LIBO Rate
Advances comprising part of the same Competitive Bid Borrowing, an
interest rate per annum equal to the average (rounded upward to the
nearest whole multiple of 1/16 of 1% per annum, if such average is not
such a multiple) of the rate per annum at which deposits in U.S. dollars
are offered to the principal office of each of the Reference Banks in
London, England by prime banks in the London interbank market at 11:00
A.M. (London time) two Business Days before the first day of such
Interest Period in an amount substantially equal to the amount that would
be the Reference Banks’ respective ratable shares of such Borrowing if
such Borrowing were to be a Revolving Credit Borrowing to be outstanding
during such Interest Period and for a period equal to such Interest
Period. The LIBO Rate for any Interest Period for each LIBO Rate Advance
comprising part of the same Competitive Bid Borrowing shall be determined
by the Agent on the basis of applicable rates furnished to and received
by the Agent from the Reference Banks two Business Days before the first
day of such Interest Period, subject, however, to the provisions of
Section 2.08.
	 
	 	     “LIBO Rate Advances” has the meaning specified in Section
2.03(a)(i).
	 
	 	     “Lien” means any lien, security interest or other charge or
encumbrance of any kind, or any other type of preferential arrangement,
including, without limitation, the lien or retained security title of a
conditional vendor and any easement, right of way or other encumbrance on
title to real property.
	 
	 	     “Margin Stock” has the meaning assigned to such term under
Regulation U of the Board of Governors of the Federal Reserve System of
the United States as from time to time in effect and all official rulings
and interpretations thereunder or thereof.
	 
	 	     “Material Adverse Change” means any material adverse change in the
business, financial condition or results of operations of the Borrower
and its Subsidiaries taken as a whole.
	 
	 	     “Material Adverse Effect” means a material adverse effect on (a) the
business, financial condition or results of operations of the Borrower
and its Subsidiaries taken as a whole, (b) the rights and remedies of the
Agent or any Lender under this Agreement or

9

 

		
	 	any Note or (c) the ability of the Borrower to perform its
obligations under this Agreement or any Note.

		
	 	     “Moody’s” means Moody’s Investors Service, Inc.
	 
	 	     “Multiemployer Plan” means a multiemployer plan, as defined in
Section 4001(a)(3) of ERISA, to which the Borrower or any ERISA Affiliate
is making or accruing an obligation to make contributions, or has within
any of the preceding five plan years made or accrued an obligation to
make contributions.
	 
	 	     “Multiple Employer Plan” means a single employer plan, as defined in
Section 4001(a)(15) of ERISA, that (a) is maintained for employees of the
Borrower or any ERISA Affiliate and at least one Person other than the
Borrower and the ERISA Affiliates or (b) was so maintained and in respect
of which the Borrower or any ERISA Affiliate could have liability under
Section 4064 or 4069 of ERISA in the event such plan has been or were to
be terminated.
	 
	 	     “Non-Recourse Debt” shall mean Debt of the Borrower or its
Subsidiaries incurred (a) as to which neither the Borrower nor any of its
Subsidiaries (i) provides credit support (including any undertaking,
agreement or instrument which would constitute Debt) or has given or made
other written assurances regarding repayment or the maintenance of
capital or liquidity except such assurances as may be approved by the
Required Lenders (such approval not to be unreasonably withheld or
delayed), (ii) is directly or indirectly liable or (iii) constitutes the
lender and (b) the obligees of which will have recourse solely to certain
identified assets (the loss of which would not reasonably be expected to
have a Material Adverse Effect) for repayment of the principal of and
interest on such Debt and any fees, indemnities, expenses, reimbursements
or other amounts of whatever nature accrued or payable in connection with
such Debt.
	 
	 	     “Note” means a Revolving Credit Note or a Competitive Bid Note.
	 
	 	     “Notice of Competitive Bid Borrowing” has the meaning specified in
Section 2.03(a).
	 
	 	     “Notice of Revolving Credit Borrowing” has the meaning specified in
Section 2.02(a).
	 
	 	     “PBGC” means the Pension Benefit Guaranty Corporation (or any
successor).
	 
	 	     “Performance Level” means, as of any date of the determination, the
level set forth below as then in effect, as determined in accordance with
the following provisions of this definition:

	 	 	 
	Level I:	 	
Public Debt Rating of not lower than AA- by
S&P or not lower than Aa3 by Moody’s.
	 
	Level II:	 	
Public Debt Rating of lower than Level I but
not lower than A+ by S&P or A1 by Moody’s.

10

 

	 	 	 
	Level III:	 	
Public Debt Rating of lower than Level II
but not lower than A by S&P or A2 by Moody’s.
	 
	Level IV:	 	
Public Debt Rating of lower than Level III
but not lower than A- by S&P and A3 by Moody’s.
	 
	Level V:	 	
Public Debt Rating of lower than Level IV.

		
	 	For purposes of the foregoing, (a) if only one of S&P and Moody’s shall
have in effect a Public Debt Rating, the Performance Level shall be
determined by reference to the available rating and (b) if the Public
Debt Ratings established by S&P and Moody’s shall fall within different
Performance Levels, the Performance Level shall be based upon the higher
rating, provided that if the lower of such ratings is more than one level
below the higher of such ratings, the Performance Level shall be based on
the level immediately above such lower rating.

		
	 	     “Permitted Liens” means any of the following:
	 
	 	     (a)     Liens for taxes, assessments and governmental charges or levies
to the extent not required to be paid under Section 5.01(b) hereof;
	 
	 	     (b)     Liens imposed by law, such as materialmen’s, mechanics’,
carriers’, workmen’s and repairmen’s Liens and other similar Liens
arising in the ordinary course of business securing obligations (other
than Debt) that (i) are not overdue for a period of more than 120 days or
(ii) are being contested in good faith and by proper proceedings and as
to which appropriate reserves are being maintained in accordance with
GAAP;
	 
	 	     (c)     Pledges or deposits to secure obligations under workers’
compensation laws or similar legislation or to secure public or statutory
obligations;
	 
	 	     (d)     Liens securing the performance of or payment in respect of,
bids, tenders, government contracts (other than for the repayment of
Debt), surety and appeal bonds and other obligations of a similar nature
incurred in the ordinary course of business; and
	 
	 	     (e)     Easements, rights of way and other encumbrances on title to real
property that do not materially adversely affect the use of such property
for its present purposes.
	 
	 	     “Person” means an individual, partnership, corporation (including a
business trust), joint stock company, trust, unincorporated association,
joint venture, limited liability company or other entity, or a government
or any political subdivision or agency thereof.
	 
	 	     “Plan” means a Single Employer Plan or a Multiple Employer Plan
subject to the provisions of Title IV of ERISA or Section 412 of the
Internal Revenue Code or Section 302 of ERISA.
	 
	 	     “Pro Rata Share” of any amount means, with respect to any Lender at
any time, the product of such amount times a fraction the numerator of
which is the amount of such

11

 

		
	 	Lender’s Commitment at such time and the denominator of which is the
aggregate of the Commitments of the Lenders at such time.

		
	 	     “Public Debt Rating” means, as of any date, the lowest rating that
has been most recently announced by either S&P or Moody’s, as the case
may be, for any class of non-credit enhanced long-term senior unsecured
debt issued by the Borrower. For purposes of the foregoing, (a) if any
rating established by S&P or Moody’s shall be changed, such change shall
be effective as of the date on which such change is first announced
publicly by the rating agency making such change; and (b) if S&P or
Moody’s shall change the basis on which ratings are established, each
reference to the Public Debt Rating announced by S&P or Moody’s, as the
case may be, shall refer to the then equivalent rating by S&P or Moody’s,
as the case may be.
	 
	 	     “Reference Banks” means Citibank, SunTrust Bank and JPMorgan Chase
Bank.
	 
	 	     “Register” has the meaning specified in Section 8.07(d).
	 
	 	     “Required Lenders” means at any time Lenders owed at least a
majority in interest of the then aggregate unpaid principal amount of the
Revolving Credit Advances owing to Lenders or, if no such principal
amount is then outstanding, Lenders having at least a majority in
interest of the Commitments.
	 
	 	     “Revolving Credit Advance” means an advance by a Lender to the
Borrower as part of a Revolving Credit Borrowing and refers to a Base
Rate Advance or a Eurodollar Rate Advance (each of which shall be a
“Type” of Revolving Credit Advance).
	 
	 	     “Revolving Credit Borrowing” means a borrowing consisting of
simultaneous Revolving Credit Advances of the same Type made by each of
the Lenders pursuant to Section 2.01.
	 
	 	     “Revolving Credit Note” means a promissory note of the Borrower
(bearing an original or facsimile signature) payable to the order of any
Lender, in substantially the form of Exhibit A-1 hereto, evidencing the
aggregate indebtedness of the Borrower to such Lender resulting from the
Revolving Credit Advances made by such Lender.
	 
	 	     “S&P” means Standard & Poor’s Ratings Group, a division of The
McGraw-Hill Companies, Inc.
	 
	 	     “Shareholders’ Equity” means “shareholders’ equity” as such term is
construed in accordance with GAAP and as reported in the Borrower’s
reports and registration statements filed with the Securities and
Exchange Commission or any national securities exchange.
	 
	 	     “Significant Subsidiary” shall mean any Subsidiary that would be a
“significant subsidiary” within the meaning of Rule 1-02 of the SEC’s
Regulation S-X.
	 
	 	     “Single Employer Plan” means a single employer plan, as defined in
Section 4001(a)(15) of ERISA, that (a) is maintained for employees of the
Borrower or

12

 

		
	 	any ERISA Affiliate and no Person other than the Borrower and the
ERISA Affiliates or (b) was so maintained and in respect of which the
Borrower or any ERISA Affiliate could have liability under Section 4069
of ERISA in the event such plan has been or were to be terminated.
	 
	 	     “Subsidiary” of any Person means any corporation, partnership, joint
venture, limited liability company, trust or estate of which (or in
which) more than 50% of (a) the issued and outstanding capital stock
having ordinary voting power to elect a majority of the Board of
Directors of such corporation (irrespective of whether at the time
capital stock of any other class or classes of such corporation shall or
might have voting power upon the occurrence of any contingency), (b) the
interest in the capital or profits of such limited liability company,
partnership or joint venture or (c) the beneficial interest in such trust
or estate is at the time directly or indirectly owned or controlled by
such Person, by such Person and one or more of its other Subsidiaries or
by one or more of such Person’s other Subsidiaries.
	 
	 	     “Termination Date” means the earlier of (a) August 14, 2007 and (b)
the date of termination in whole of the Commitments pursuant to Section
2.05 or 6.01.
	 
	 	     “Unused Commitment” means, with respect to any Lender at any time,
(a) such Lender’s Commitment at such time minus (b) the sum of (i) the
aggregate principal amount of all Revolving Credit Advances made by such
Lender and outstanding at such time, plus (ii) such Lender’s Pro Rata
Share of the aggregate principal amount of the Competitive Bid Advances
then outstanding.
	 
	 	     “Voting Stock” means capital stock issued by a corporation, or
equivalent interests in any other Person, the holders of which are
ordinarily, in the absence of contingencies, entitled to vote for the
election of not less than a majority of the directors (or persons
performing similar functions) of such Person, even if the right so to
vote has been suspended by the happening of such a contingency.

          SECTION 1.02. Computation of Time Periods. In this Agreement in the
computation of periods of time from a specified date to a later specified date,
the word “from” means “from and including” and the words “to” and “until” each
mean “to but excluding”.

          SECTION 1.03. Accounting Terms. All terms of an accounting or financial nature
shall be construed in accordance with generally accepted accounting principles
(“GAAP”), as in effect from time to time; provided, however, that if the
Borrower notifies the Agent that the Borrower wishes to amend any covenant in
Article V or any related definition to eliminate the effect of any change in
GAAP occurring after the date of this Agreement on the operation of such
covenant, or if the Agent notifies the Borrower that the Required Lenders wish
to amend Article V or any related definition for such purpose, then the
Borrower’s compliance with such covenant shall be determined on the basis of
GAAP in effect immediately before the relevant change in GAAP became effective,
until either such notice is withdrawn or such covenant is amended in a manner
satisfactory to the Borrower and the Required Lenders.

13

 

ARTICLE II

AMOUNTS AND TERMS OF THE ADVANCES

               SECTION 2.01. The Revolving Credit Advances. Each Lender severally
agrees, on the terms and conditions hereinafter set forth, to make Revolving
Credit Advances to the Borrower from time to time on any Business Day during
the period from the Effective Date until the Termination Date in an amount for
each such Advance not to exceed such Lender’s Unused Commitment. Each
Revolving Credit Borrowing shall be in an aggregate amount of $5,000,000 or an
integral multiple of $1,000,000 in excess thereof (or, if less, an aggregate
amount equal to the amount by which the aggregate amount of a proposed
Competitive Bid Borrowing requested by the Borrower exceeds the aggregate
amount of Competitive Bid Advances offered to be made by the Lenders and
accepted by the Borrower in respect of such Competitive Bid Borrowing, if such
Competitive Bid Borrowing is made on the same date as such Revolving Credit
Borrowing) and shall consist of Revolving Credit Advances of the same Type made
on the same day by the Lenders ratably according to their respective
Commitments. Within the limits of each Lender’s Unused Commitment in effect
from time to time, the Borrower may borrow under this Section 2.01, prepay
pursuant to Section 2.10 and reborrow under this Section 2.01.

               SECTION 2.02. Making the Revolving Credit Advances. (a) Each Revolving
Credit Borrowing shall be made on notice, given not later than 11:00 A.M. (New
York City time) on the third Business Day prior to the date of the proposed
Revolving Credit Borrowing in the case of a Revolving Credit Borrowing
consisting of Eurodollar Rate Advances, or the date of the proposed Revolving
Credit Borrowing in the case of a Revolving Credit Borrowing consisting of Base
Rate Advances, by the Borrower to the Agent, which shall give to each Lender
prompt notice thereof by telecopier or telex. Each such notice of a Revolving
Credit Borrowing (a “Notice of Revolving Credit Borrowing”) shall be by
telephone, confirmed at once in writing, or telecopier or telex in
substantially the form of Exhibit B-1 hereto, specifying therein the requested
(i) date of such Revolving Credit Borrowing, (ii) Type of Advances comprising
such Revolving Credit Borrowing, (iii) aggregate amount of such Revolving
Credit Borrowing, and (iv) in the case of a Revolving Credit Borrowing
consisting of Eurodollar Rate Advances, initial Interest Period for each such
Revolving Credit Advance. Each Lender shall, before 1:00 P.M. (New York City
time) on the date of such Revolving Credit Borrowing, make available for the
account of its Applicable Lending Office to the Agent at the Agent’s Account,
in same day funds, such Lender’s ratable portion of such Revolving Credit
Borrowing. After the Agent’s receipt of such funds and upon fulfillment of the
applicable conditions set forth in Article III, the Agent will make such funds
available to the Borrower at the Agent’s address referred to in Section 8.02.

               (b)     Anything in subsection (a) above to the contrary notwithstanding, (i)
the Borrower may not select Eurodollar Rate Advances for any Revolving Credit
Borrowing if the aggregate amount of such Revolving Credit Borrowing is less
than $10,000,000 or if the obligation of the Lenders to make Eurodollar Rate
Advances shall then be suspended pursuant to Section 2.08 or 2.12 and (ii) the
Eurodollar Rate Advances may not be outstanding as part of more than fifteen
separate Revolving Credit Borrowings.

14

 

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

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

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

               SECTION 2.03. The Competitive Bid Advances. (a) Each Lender severally
agrees that the Borrower may make Competitive Bid Borrowings under this Section
2.03 from time to time on any Business Day during the period from the date
hereof until the date occurring 30 days prior to the Termination Date in the
manner set forth below; provided that the amount of each Competitive Bid
Borrowing shall not exceed the aggregate amount of the Unused Commitments of
the Lenders on such Business Day.

		
	 	     (i)     The Borrower may request a Competitive Bid Borrowing under this
Section 2.03 by delivering to the Agent, by telecopier or telex, a notice
of a Competitive Bid Borrowing (a “Notice of Competitive Bid Borrowing”),
in substantially the form of Exhibit B-2 hereto, specifying therein the
requested (u) date of such proposed Competitive Bid Borrowing, (v)
aggregate amount of such proposed Competitive Bid

15

 

		
	 	Borrowing, (w) maturity date for repayment of each Advance to be
made as part of such Competitive Bid Borrowing (which maturity date may
not be earlier than the date occurring 30 days after the date of such
Competitive Bid Borrowing or later than the earlier of (I) 360 days after
the date of such Competitive Bid Borrowing and (II) the Termination
Date), (x) in the case of a Competitive Bid Advance consisting of LIBO
Rate Advances, the Interest Period thereof, (y) interest payment date or
dates relating thereto, and (z) other terms (if any) to be applicable to
such Competitive Bid Borrowing, not later than 10:00 A.M. (New York City
time) (A) at least one Business Day prior to the date of the proposed
Competitive Bid Borrowing, if the Borrower shall specify in the Notice of
Competitive Bid Borrowing that the rates of interest to be offered by the
Lenders shall be fixed rates per annum (the Advances comprising any such
Competitive Bid Borrowing being referred to herein as “Fixed Rate
Advances”) and (B) at least four Business Days prior to the date of the
proposed Competitive Bid Borrowing, if the Borrower shall instead specify
in the Notice of Competitive Bid Borrowing that the rates of interest be
offered by the Lenders are to be based on the LIBO Rate (the Advances
comprising such Competitive Bid Borrowing being referred to herein as
“LIBO Rate Advances”). Each Notice of Competitive Bid Borrowing shall be
irrevocable and binding on the Borrower. The Agent shall in turn
promptly notify each Lender of each request for a Competitive Bid
Borrowing received by it from the Borrower by sending such Lender a copy
of the related Notice of Competitive Bid Borrowing.
	 
	 	     (ii)     Each Lender may, if, in its sole discretion, it elects to do
so, irrevocably offer to make one or more Competitive Bid Advances to the
Borrower as part of such proposed Competitive Bid Borrowing at a rate or
rates of interest specified by such Lender in its sole discretion, by
notifying the Agent (which shall give prompt notice thereof to the
Borrower), before 9:30 A.M. (New York City time) on the date of such
proposed Competitive Bid Borrowing, in the case of a Competitive Bid
Borrowing consisting of Fixed Rate Advances and before 10:00 A.M. (New
York City time) three Business Days before the date of such proposed
Competitive Bid Borrowing, in the case of a Competitive Bid Borrowing
consisting of LIBO Rate Advances, of the minimum amount and maximum
amount of each Competitive Bid Advance which such Lender would be willing
to make as part of such proposed Competitive Bid Borrowing (which amounts
may, subject to the proviso to the first sentence of this Section
2.03(a), exceed such Lender’s Commitment), the rate or rates of interest
therefor and such Lender’s Applicable Lending Office with respect to such
Competitive Bid Advance; provided that if the Agent in its capacity as a
Lender shall, in its sole discretion, elect to make any such offer, it
shall notify the Borrower of such offer at least 30 minutes before the
time and on the date on which notice of such election is to be given to
the Agent by the other Lenders. If any Lender shall elect not to make
such an offer, such Lender shall so notify the Agent, before 10:00 A.M.
(New York City time) on the date on which notice of such election is to
be given to the Agent by the other Lenders, and such Lender shall not be
obligated to, and shall not, make any Competitive Bid Advance as part of
such Competitive Bid Borrowing; provided that the failure by any Lender
to give such notice shall not cause such Lender to be obligated to make
any Competitive Bid Advance as part of such proposed Competitive Bid
Borrowing.

16

 

		
	 	     (iii)     The Borrower shall, in turn, before 10:30 A.M. (New York City
time) on the date of such proposed Competitive Bid Borrowing, in the case
of a Competitive Bid Borrowing consisting of Fixed Rate Advances and
before 11:00 A.M. (New York City time) three Business Days before the
date of such proposed Competitive Bid Borrowing, in the case of a
Competitive Bid Borrowing consisting of LIBO Rate Advances, either:

		
	 	     (x)     cancel such Competitive Bid Borrowing by giving the Agent
notice to that effect, or
	 
	 	     (y)     accept one or more of the offers made by any Lender or
Lenders pursuant to paragraph (ii) above, in its sole discretion,
by giving notice to the Agent of the amount of each Competitive Bid
Advance (which amount shall be equal to or greater than the minimum
amount, and equal to or less than the maximum amount, notified to
the Borrower by the Agent on behalf of such Lender for such
Competitive Bid Advance pursuant to paragraph (ii) above) to be
made by each Lender as part of such Competitive Bid Borrowing, and
reject any remaining offers made by Lenders pursuant to paragraph
(ii) above by giving the Agent notice to that effect. The Borrower
shall accept the offers made by any Lender or Lenders to make
Competitive Bid Advances in order of the lowest to the highest
rates of interest offered by such Lenders. If two or more Lenders
have offered the same interest rate, the amount to be borrowed at
such interest rate will be allocated among such Lenders in
proportion to the amount that each such Lender offered at such
interest rate.

		
	 	     (iv)     If the Borrower notifies the Agent that such Competitive Bid
Borrowing is cancelled pursuant to paragraph (iii)(x) above, the Agent
shall give prompt notice thereof to the Lenders and such Competitive Bid
Borrowing shall not be made.
	 
	 	     (v)     If the Borrower accepts one or more of the offers made by any
Lender or Lenders pursuant to paragraph (iii)(y) above, the Agent shall
in turn promptly notify (A) each Lender that has made an offer as
described in paragraph (ii) above, of the date and aggregate amount of
such Competitive Bid Borrowing and whether or not any offer or offers
made by such Lender pursuant to paragraph (ii) above have been accepted
by the Borrower, (B) each Lender that is to make a Competitive Bid
Advance as part of such Competitive Bid Borrowing, of the amount of each
Competitive Bid Advance to be made by such Lender as part of such
Competitive Bid Borrowing, and (C) each Lender that is to make a
Competitive Bid Advance as part of such Competitive Bid Borrowing, upon
receipt, that the Agent has received forms of documents appearing to
fulfill the applicable conditions set forth in Article III. Each Lender
that is to make a Competitive Bid Advance as part of such Competitive Bid
Borrowing shall, before 12:00 noon (New York City time) on the date of
such Competitive Bid Borrowing specified in the notice received from the
Agent pursuant to clause (A) of the preceding sentence or any later time
when such Lender shall have received notice from the Agent pursuant to
clause (C) of the preceding sentence, make available for the account of
its Applicable Lending Office to the Agent at the Agent’s Account, in
same day funds, such Lender’s portion of such Competitive Bid Borrowing.
Upon fulfillment of the applicable conditions set forth in Article III
and after receipt by the Agent of such funds, the Agent will make such

17

 

		
	 	funds available to the Borrower at the Agent’s address referred to
in Section 8.02. Promptly after each Competitive Bid Borrowing the Agent
will notify each Lender of the amount of the Competitive Bid Borrowing.
	 
	 	     (vi)     If the Borrower notifies the Agent that it accepts one or more
of the offers made by any Lender or Lenders pursuant to paragraph
(iii)(y) above, such notice of acceptance shall be irrevocable and
binding on the Borrower. The Borrower shall indemnify each Lender
against any loss, cost or expense incurred by such Lender as a result of
any failure to fulfill on or before the date specified in the related
Notice of Competitive Bid Borrowing for such Competitive Bid Borrowing
the applicable conditions set forth in Article III, including, without
limitation, any loss (excluding loss of anticipated profits), cost or
expense incurred by reason of the liquidation or reemployment of deposits
or other funds acquired by such Lender to fund the Competitive Bid
Advance to be made by such Lender as part of such Competitive Bid
Borrowing when such Competitive Bid Advance, as a result of such failure,
is not made on such date.

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

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

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

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

18

 

Borrower shall pay interest on the amount of overdue principal and, to the
fullest extent permitted by law, interest in respect of each Competitive Bid
Advance owing to a Lender, payable in arrears on the date or dates interest is
payable thereon, at a rate per annum equal at all times to 1% per annum above
the rate per annum required to be paid on such Competitive Bid Advance under
the terms of the Competitive Bid Note evidencing such Competitive Bid Advance
unless otherwise agreed in such Competitive Bid Note.

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

               SECTION 2.04. Fees. (a) Facility Fee. The Borrower agrees to pay to the
Agent for the account of each Lender a facility fee on the aggregate amount of
such Lender’s Commitment in effect from time to time from the Effective Date in
the case of each Initial Lender and from the later of the Effective Date and
the effective date specified in the Assumption Agreement or in the Assignment
and Acceptance, as the case may be, pursuant to which it became a Lender in the
case of each other Lender until the Termination Date at a rate per annum equal
to the Applicable Percentage in effect from time to time, payable in arrears
quarterly on the last day of each March, June, September and December,
commencing September 30, 2002, and on the Termination Date.

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

               SECTION 2.05. Termination, Reduction or Increase of the Commitments. (a)
Termination or Reduction. The Borrower shall have the right, upon at least
three Business Days’ notice to the Agent, to terminate in whole or reduce
ratably in part the respective Unused Commitments of the Lenders, provided that
each partial reduction shall be in the aggregate amount of $10,000,000 or an
integral multiple of $1,000,000 in excess thereof. The aggregate amount of the
Commitments once reduced as provided in this Section 2.05(a), may not be
reinstated, except as provided in Section 2.05(b) below.

               (b)     Increase in Aggregate of the Commitments. (i) The Borrower may at
any time, by notice to the Agent, propose that the aggregate amount of the
Commitments be increased (such aggregate amount being, a “Commitment
Increase”), effective as at a date prior to the Termination Date (an “Increase
Date”) as to which agreement is to be reached by an earlier date specified in
such notice (a “Commitment Date”); provided, however, that (A) the Borrower may
not propose more than two Commitment Increases in any calendar year, (B) the
minimum proposed Commitment Increase per notice shall be $25,000,000, (C) in no
event shall the aggregate amount of the Commitments at any time exceed
$450,000,000, (D) the applicable Performance Level on such Increase Date shall
be Level I, Level II or Level III and (E) no Default shall have occurred and be
continuing on such Increase Date. The Agent shall notify the Lenders thereof
promptly upon its receipt of any such notice. The Agent agrees that it will
cooperate with the Borrower in discussions with the Lenders and other Eligible
Assignees with a view to arranging the proposed Commitment Increase through the
increase of the Commitments of one or more of the Lenders (each such Lender
that is willing to increase its Commitment

19

 

hereunder being an “Increasing Lender”) and the addition of one or more
other Eligible Assignees as Assuming Lenders and as parties to this Agreement;
provided, however, that it shall be in each Lender’s sole discretion whether to
increase its Commitment hereunder in connection with the proposed Commitment
Increase; and provided further that the minimum Commitment of each such
Assuming Lender that becomes a party to this Agreement pursuant to this Section
2.05(b), shall be at least equal to $10,000,000. If any of the Lenders agree
to increase their respective Commitments by an aggregate amount in excess of
the proposed Commitment Increase, the proposed Commitment Increase shall be
allocated among such Lenders in proportion to their respective Commitments
immediately prior to the Increase Date. If agreement is reached on or prior to
the applicable Commitment Date with any Increasing Lenders and Assuming Lenders
as to a Commitment Increase (which may be less than but not greater than
specified in the applicable notice from the Borrower), such agreement to be
evidenced by a notice in reasonable detail from the Borrower to the Agent on or
prior to the applicable Commitment Date, such Assuming Lenders, if any, shall
become Lenders hereunder as of the applicable Increase Date and the Commitments
of such Increasing Lenders and such Assuming Lenders shall become or be, as the
case may be, as of the Increase Date, the amounts specified in such notice;
provided that:

		
	 	     (x)     the Agent shall have received (with copies for each Lender,
including each such Assuming Lender) by no later than 10:00 A.M. (New
York City time) on the applicable Increase Date (1) certified copies of
resolutions of the Board of Directors of the Borrower approving the
Commitment Increase and (2) an opinion of counsel for the Borrower (which
may be in-house counsel), in substantially the form of Exhibit E hereto;
	 
	 	     (y)     each such Assuming Lender shall have delivered to the Agent, by
no later than 10:00 A.M. (New York City time) on such Increase Date, an
appropriate Assumption Agreement in substantially the form of Exhibit D
hereto, duly executed by such Assuming Lender and the Borrower; and
	 
	 	     (z)     each such Increasing Lender shall have delivered to the Agent
by, no later than 10:00 A.M. (New York City time) on such Increase Date,
(A) its existing Revolving Credit Note and (B) confirmation in writing
satisfactory to the Agent as to its increased Commitment.
	 
	 	     (ii)     In the event that the Agent shall have received notice from the
Borrower as to its agreement to a Commitment Increase on or prior to the
applicable Commitment Date and each of the actions provided for in
clauses (x) through (z) above shall have occurred prior to 10:00 A.M.
(New York City time) on the applicable Increase Date to the satisfaction
of the Agent, the Agent shall notify the Lenders (including any Assuming
Lenders) and the Borrower of the occurrence of such Commitment Increase
by telephone, confirmed at once in writing, telecopier, telex or cable
and in any event no later than 1:00 P.M. (New York City time) on such
Increase Date and shall record in the Register the relevant information
with respect to each Increasing Lender and Assuming Lender. Each
Increasing Lender and each Assuming Lender shall, before 2:00 P.M. (New
York City time) on the applicable Increase Date, make available for the
account of its Applicable Lending Office to the Agent at the Agent’s
Account, in same day funds, in the case of such Assuming Lender, an
amount equal to such Assuming Lender’s ratable portion of

20

 

		
	 	the Revolving Credit Borrowings then outstanding (calculated based
on its Commitment as a percentage of the aggregate Commitments
outstanding after giving effect to the relevant Commitment Increase) and,
in the case of such Increasing Lender, an amount equal to the excess of
(i) such Increasing Lender’s ratable portion of the Revolving Credit
Borrowings then outstanding (calculated based on its Commitment as a
percentage of the aggregate Commitments outstanding after giving effect
to the relevant Commitment Increase) over (ii) such Increasing Lender’s
Pro Rata Share of the Revolving Credit Borrowings then outstanding
(calculated based on its Commitment (without giving effect to the
relevant Commitment Increase) as a percentage of the aggregate
Commitments (without giving effect to the relevant Commitment Increase).
After the Agent’s receipt of such funds from each such Increasing Lender
and each such Assuming Lender, the Agent will promptly thereafter cause
to be distributed like funds to the other Lenders for the account of
their respective Applicable Lending Offices in an amount to each other
Lender such that the aggregate amount of the outstanding Revolving Credit
Advances owing to each Lender after giving effect to such distribution
equals such Lender’s Pro Rata Share of the Revolving Credit Borrowings
then outstanding (calculated based on its Commitment as a percentage of
the aggregate Commitments outstanding after giving effect to the relevant
Commitment Increase). Within five Business Days after the Borrower
receives notice from the Agent, the Borrower, at its own expense, shall
execute and deliver to the Agent, Revolving Credit Notes payable to the
order of each Assuming Lender, if any, and, each Increasing Lender, dated
as of the applicable Increase Date, in a principal amount equal to such
Lender’s Commitment after giving effect to the relevant Commitment
Increase, and substantially in the form of Exhibit A-1 hereto. The
Agent, upon receipt of such Revolving Credit Notes, shall promptly
deliver such Revolving Credit Notes to the respective Assuming Lenders
and Increasing Lenders.
	 
	 	     (iii)     In the event that the Agent shall not have received notice from
the Borrower as to such agreement on or prior to the applicable
Commitment Date or the Borrower shall, by notice to the Agent prior to
the applicable Increase Date, withdraw its proposal for a Commitment
Increase or any of the actions provided for above in clauses (i)(x)
through (i)(z) shall not have occurred by 10:00 A.M. (New York City time)
on the such Increase Date, such proposal by the Borrower shall be deemed
not to have been made. In such event, any actions theretofore taken
under clauses (i)(x) through (i)(z) above shall be deemed to be of no
effect and all the rights and obligations of the parties shall continue
as if no such proposal had been made.

               SECTION 2.06. Repayment of Revolving Credit Advances. The Borrower shall
repay to the Agent for the ratable account of the Lenders on the Termination
Date the aggregate principal amount of the Revolving Credit Advances then
outstanding.

               SECTION 2.07. Interest on Revolving Credit Advances. (a) Scheduled
Interest. The Borrower shall pay interest on the unpaid principal amount of
each Revolving Credit Advance owing to each Lender from the date of such
Revolving Credit Advance until such principal amount shall be paid in full, at
the following rates per annum:

		
	 	     (i)     Base Rate Advances. During such periods as such Revolving
Credit Advance is a Base Rate Advance a rate per annum equal at all times
to the sum of (x) the

21

 

		
	 	Base Rate in effect from time to time plus (y) the Applicable Margin
in effect from time to time plus (z) the Applicable Utilization Fee, if
any, in effect from time to time, payable in arrears quarterly on the
last day of each March, June, September and December during such periods
and on the date such Base Rate Advance shall be Converted or paid in
full.
	 
	 	     (ii)     Eurodollar Rate Advances. During such periods as such
Revolving Credit Advance is a Eurodollar Rate Advance, a rate per annum
equal at all times during each Interest Period for such Revolving Credit
Advance to the sum of (x) the Eurodollar Rate for such Interest Period
for such Revolving Credit Advance plus (y) the Applicable Margin in
effect from time to time plus (z) the Applicable Utilization Fee, if any,
in effect from time to time, payable in arrears on the last day of such
Interest Period and, if such Interest Period has a duration of more than
three months, on each day that occurs during such Interest Period every
three months from the first day of such Interest Period and on the date
such Eurodollar Rate Advance shall be Converted or paid in full.

               (b)     Default Interest. The Borrower shall pay interest on (i) overdue
principal of each Revolving Credit Advance owing to each Lender, payable in
arrears on the dates referred to in clause (a)(i) or (a)(ii) above, at a rate
per annum equal at all times to 1% per annum above the rate per annum required
to be paid on such Revolving Credit Advance pursuant to clause (a)(i) or
(a)(ii) above and (ii) to the fullest extent permitted by law, the amount of
any overdue interest, fee or other amount payable hereunder, from the date such
amount shall be due until such amount shall be paid in full, payable in arrears
on the date such amount shall be paid in full and on demand, at a rate per
annum equal at all times to 1% per annum above the rate per annum required to
be paid on Base Rate Advances pursuant to clause (a)(i) above.

               SECTION 2.08. Interest Rate Determination. (a) Each Reference Bank
agrees to furnish to the Agent timely information for the purpose of
determining each Eurodollar Rate and each LIBO Rate. If any one or more of the
Reference Banks shall not furnish such timely information to the Agent for the
purpose of determining any such interest rate, the Agent shall determine such
interest rate on the basis of timely information furnished by the remaining
Reference Banks. The Agent shall give prompt notice to the Borrower and the
Lenders of the applicable interest rate determined by the Agent for purposes of
Section 2.07(a)(i) or (ii), and the rate, if any, furnished by each Reference
Bank for the purpose of determining the interest rate under Section
2.07(a)(ii).

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

               (c)     If the Borrower shall fail to select the duration of any Interest
Period for any Eurodollar Rate Advances in accordance with the provisions
contained in the definition of

22

 

“Interest Period” in Section 1.01, the Agent will forthwith so notify the
Borrower and the Lenders and the Borrower shall be deemed to have selected an
Interest Period of one month.

               (d)     Upon the occurrence and during the continuance of any Event of Default
under Section 6.01(a), (i) each Eurodollar Rate Advance will automatically, on
the last day of the then existing Interest Period therefor, Convert into a Base
Rate Advance and (ii) the obligation of the Lenders to make, or to Convert
Advances into, Eurodollar Rate Advances shall be suspended.

               (e)     If fewer than two Reference Banks furnish timely information to the
Agent for determining the Eurodollar Rate or LIBO Rate for any Eurodollar Rate
Advances or LIBO Rate Advances, as the case may be, the Eurodollar Rate or the
LIBO Rate for such Eurodollar Rate Advance or LIBO Rate Advance, as the case
may be, shall be an interest rate per annum determined by the Agent to be the
offered rate per annum at which deposits in U.S. dollars appears on the
Telerate Markets Page 3750 (or any successor page) as of 11:00 A.M. (London
time), or in the event such offered rate is not available from the Telerate
Markets Page 3750,

		
	 	        (i)     the Agent shall forthwith notify the Borrower and the Lenders
that the interest rate cannot be determined for such Eurodollar Rate
Advances or LIBO Rate Advances, as the case may be,
	 
	 	        (ii)     with respect to Eurodollar Rate Advances, each such Advance
will automatically, on the last day of the then existing Interest Period
therefor, Convert into a Base Rate Advance (or if such Advance is then a
Base Rate Advance, will continue as a Base Rate Advance), and
	 
	 	        (iii)     the obligation of the Lenders to make Eurodollar Rate Advances
or LIBO Rate Advances or to Convert Revolving Credit Advances into
Eurodollar Rate Advances shall be suspended until the Agent shall notify
the Borrower and the Lenders that the circumstances causing such
suspension no longer exist.

               SECTION 2.09. Optional Conversion of Revolving Credit Advances. The
Borrower may on any Business Day, upon notice given to the Agent not later than
11:00 A.M. (New York City time) on the third Business Day prior to the date of
the proposed Conversion and subject to the provisions of Sections 2.08 and
2.12, Convert all Revolving Credit Advances of one Type comprising the same
Borrowing into Revolving Credit Advances of the other Type; provided, however,
that any Conversion of Base Rate Advances into Eurodollar Rate Advances shall
be in an amount not less than the minimum amount specified in Section 2.02(b)
and no Conversion of any Revolving Credit Advances shall result in more
separate Revolving Credit Borrowings than permitted under Section 2.02(b).
Each such notice of a Conversion shall, within the restrictions specified
above, specify (i) the date of such Conversion, (ii) the Revolving Credit
Advances to be Converted, and (iii) if such Conversion is into Eurodollar Rate
Advances, the duration of the initial Interest Period for each such Advance.
Each notice of Conversion shall be irrevocable and binding on the Borrower.

23

 

               SECTION 2.10. Optional Prepayments of Revolving Credit Advances. The
Borrower may, in the case of Eurodollar Rate Advances, upon at least two
Business Days’ notice to the Agent, and in the case of Base Rate Advances, upon
notice to the Agent not later than 11:00 A.M. on the date of such proposed
prepayment, stating in each case the proposed date and aggregate principal
amount of the prepayment, and if such notice is given the Borrower shall,
prepay the outstanding principal amount of the Revolving Credit Advances
comprising part of the same Revolving Credit Borrowing in whole or ratably in
part, together with accrued interest to the date of such prepayment on the
principal amount prepaid; provided, however, that (x) each partial prepayment
shall be in an aggregate principal amount of $5,000,000 for any Base Rate
Advance or $10,000,000 for any Eurodollar Rate Advance or, in each case, an
integral multiple of $1,000,000 in excess thereof and (y) in the event of any
such prepayment of a Eurodollar Rate Advance, the Borrower shall be obligated
to reimburse the Lenders in respect thereof pursuant to Section 8.04(c).

               SECTION 2.11. Increased Costs. (a) If, after the date hereof, due to
either (i) the introduction of or any change in or in the interpretation of any
law or regulation or (ii) the compliance with any guideline or request from any
central bank or other governmental authority (whether or not having the force
of law), there shall be any increase in the cost to any Lender (other than in
respect of Eurocurrency Liabilities) of agreeing to make or making, funding or
maintaining Eurodollar Rate Advances (excluding for purposes of this Section
2.11 any such increased costs resulting from (i) Taxes or Other Taxes (as to
which Section 2.14 shall govern) and (ii) changes in the basis of taxation of
overall net income or overall gross income by the United States or by the
foreign jurisdiction or state under the laws of which such Lender is organized
or has its Applicable Lending Office or any political subdivision thereof),
then the Borrower shall from time to time, upon demand by such Lender (with a
copy of such demand to the Agent), pay to the Agent for the account of such
Lender additional amounts sufficient to compensate such Lender for such
increased cost. A certificate as to the amount of such increased cost, setting
forth in reasonable detail the basis therefor and the computation thereof,
submitted to the Borrower and the Agent by such Lender, shall be conclusive and
binding for all purposes, absent manifest error. Notwithstanding the
foregoing, none of the Lenders shall deliver the notice and certificate
described in this Section 2.11(a) to the Borrower in respect of any increased
costs except in accordance with the internal policy of such Lender as to the
exercise of similar rights and remedies in similar circumstances.

               (b)     If any Lender determines that compliance with any law or regulation or
any guideline or request from any central bank or other governmental authority
(whether or not having the force of law) in either case enacted, adopted or
made after the date hereof, affects or would affect the amount of capital
required or expected to be maintained by such Lender or any corporation
controlling such Lender and that the amount of such capital is increased by or
based upon the existence of such Lender’s commitment to lend hereunder and
other commitments of this type, then, upon demand by such Lender (with a copy
of such demand to the Agent), the Borrower shall pay to the Agent for the
account of such Lender, from time to time as specified by such Lender,
additional amounts sufficient to compensate such Lender or such corporation for
the reduction of the rate of return on such Lender’s capital or on the capital
of such corporation, to the extent that such Lender reasonably determines such
increase in capital to be allocable to the existence of such Lender’s
commitment to lend hereunder. A certificate as to such amounts, setting forth
in reasonable detail the basis therefor and the computation thereof, submitted
to the

24

 

Borrower and the Agent by such Lender shall be conclusive and binding for
all purposes, absent manifest error. Notwithstanding the foregoing, none of
the Lenders shall deliver the notice and certificate described in this Section
2.11(b) to the Borrower in respect of any requirements of additional capital
except in accordance with the internal policy of such Lender as to the exercise
of similar rights and remedies in similar circumstances.

               (c)     If any Lender shall give notice to the Agent and the Borrower at any
time to the effect that Eurocurrency Reserve Requirements are, or are scheduled
to become, effective and that such Lender is or will be generally subject to
such Eurocurrency Reserve Requirements (without regard to whether such Lender
will be able to benefit from proration or offsets that may be available from
time to time under Regulation D) as a result of which such Lender will incur
additional costs, then such Lender shall, for each day from the later of the
date of such notice and the date on which such Eurocurrency Reserve
Requirements become effective, be entitled to additional interest on each
Eurodollar Rate Advance made by it at a rate per annum determined for such day
(rounded upward to the nearest 100th of 1%) equal to the remainder obtained by
subtracting (i) the Eurodollar Rate for such Eurodollar Rate Advance from (ii)
the rate obtained by dividing such Eurodollar Rate by a percentage equal to
100% minus the then applicable Eurocurrency Reserve Requirements. Such
additional interest will be payable in arrears to the Agent, for the account of
such Lender, on each date that interest is payable on such Eurodollar Rate
Advance. Any Lender which gives a notice under this paragraph (c) shall
promptly withdraw such notice (by written notice of withdrawal given to the
Agent and the Borrower) in the event Eurocurrency Reserve Requirements cease to
apply to it or the circumstances giving rise to such notice otherwise cease to
exist.

               (d)     Notwithstanding anything to the contrary herein contained, no Lender
shall be entitled to claim any additional amounts pursuant to this Section 2.11
arising with respect to any period of time prior to the date that is 60 days
prior to the date on which notice of such claim and the basis therefor is first
given to the Borrower pursuant to this Section 2.11.

               SECTION 2.12. Illegality. (a) Notwithstanding any other provision of
this Agreement, if any Lender shall notify the Agent that the introduction of
or any change in or in the interpretation of any law or regulation makes it
unlawful, or any central bank or other governmental authority asserts that it
is unlawful, for any Lender or its Eurodollar Lending Office to perform its
obligations hereunder to make Eurodollar Rate Advances or LIBO Rate Advances or
to fund or maintain Eurodollar Rate Advances or LIBO Rate Advances hereunder,
(i) each Eurodollar Rate Advance or LIBO Rate Advance, as the case may be, of
such Lender will automatically, upon such demand, Convert into a Base Rate
Advance or an Advance that bears interest at the rate set forth in Section
2.07(a)(i), as the case may be, and (ii) the obligation of such Lender to make
Eurodollar Rate Advances or LIBO Rate Advances or to Convert Revolving Credit
Advances into Eurodollar Rate Advances shall be suspended until the Agent shall
notify the Borrower and the Lenders that the circumstances causing such
suspension no longer exist. If any Lender shall exercise its rights under this
Section 2.12(a), all payments and prepayments of principal which would
otherwise have been applied to repay the Eurodollar Rate Advances or LIBO Rate
Advances that would have been made by such Lender or the converted Eurodollar
Rate Advances or LIBO Rate Advances of such Lender shall instead be applied to
repay the Base Rate Advances or Advances bearing interest at the rate set forth
in Section 2.07(a)(i), as the case may be, made by such Lender in lieu of, or
resulting from the conversion

25

 

of, such Eurodollar Rate Advances or LIBO Rate Advances, and all
distributions of payments in respect of interest shall be made to the Lenders
ratably based on the interest rates applicable to their respective Advances.

               (b)     For purposes of this Section 2.12, a notice to the Borrower by any
Lender shall be effective as to each Eurodollar Rate Advance or LIBO Rate
Advance, if lawful, on the last day of the Interest Period currently applicable
to such Eurodollar Rate Advance or LIBO Rate Advance; in all other cases such
notice shall be effective on the date of receipt by the Borrower.

               SECTION 2.13. Payments and Computations. (a) The Borrower shall make
each payment hereunder and under the Notes not later than 12:00 noon (New York
City time) on the day when due in U.S. dollars to the Agent at the Agent’s
Account in same day funds. The Agent will promptly thereafter cause to be
distributed like funds relating to the payment of principal or interest or
facility fees ratably (other than amounts payable pursuant to Section 2.03,
2.11, 2.14 or 8.04(c)) to the Lenders for the account of their respective
Applicable Lending Offices, and like funds relating to the payment of any other
amount payable to any Lender to such Lender for the account of its Applicable
Lending Office, in each case to be applied in accordance with the terms of this
Agreement. Upon its acceptance of an Assignment and Acceptance and recording
of the information contained therein in the Register pursuant to Section
8.07(c), from and after the effective date specified in such Assignment and
Acceptance, the Agent shall make all payments hereunder and under the Notes in
respect of the interest assigned thereby to the Lender assignee thereunder, and
the parties to such Assignment and Acceptance shall make all appropriate
adjustments in such payments for periods prior to such effective date directly
between themselves. Upon any Assuming Lender becoming a Lender hereunder as a
result of the effectiveness of a Commitment Increase pursuant to Section
2.05(b) and upon the Agent’s receipt of such Lender’s Assumption Agreement and
recording of the information contained therein in the Register, from and after
the applicable Increase Date, the Agent shall make all payments hereunder and
under any Notes issued in connection therewith in respect of the interest
assumed thereby to the Assuming Lender.

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

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

26

 

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

               SECTION 2.14. Taxes. (a) Any and all payments by the Borrower hereunder
or under the Notes shall be made, in accordance with Section 2.13, free and
clear of and without deduction for any and all present or future taxes, levies,
imposts, deductions, charges or withholdings, and all liabilities with respect
thereto, excluding, in the case of each Lender and the Agent, taxes imposed on
its overall net income, and franchise taxes imposed on it in lieu of net income
taxes, by the jurisdiction under the laws of which such Lender or the Agent (as
the case may be) is organized or any political subdivision thereof and, in the
case of each Lender, taxes imposed on its overall net income, and franchise
taxes imposed on it in lieu of net income taxes, by the jurisdiction of such
Lender’s Applicable Lending Office or any political subdivision thereof, and
further excluding, if any Lender is found as the result of a determination (as
defined in Section 1313(a) of the Internal Revenue Code) to be a conduit entity
participating in a conduit financing arrangement as defined in Treasury
Regulations promulgated under Section 7701(1) of the Internal Revenue Code, the
excess of the United States taxes imposed with respect to such Lender over the
amount of United States taxes that would have been imposed with respect to such
Lender if such determination had not been made with respect to such Lender (all
such non-excluded taxes, levies, imposts, deductions, charges, withholdings and
liabilities in respect of payments hereunder or under the Notes being
hereinafter referred to as “Taxes”). If the Borrower shall be required by law
to deduct any Taxes from or in respect of any sum payable hereunder or under
any Note to any Lender or the Agent, (i) the sum payable shall be increased as
may be necessary so that after making all required deductions (including
deductions applicable to additional sums payable under this Section 2.14) such
Lender or the Agent (as the case may be) receives an amount equal to the sum it
would have received had no such deductions been made, (ii) the Borrower shall
make such deductions and (iii) the Borrower shall pay the full amount deducted
to the relevant taxation authority or other authority in accordance with
applicable law.

               (b)     In addition, the Borrower agrees to pay any present or future stamp or
documentary taxes or any other excise or property taxes, charges or similar
levies that arise from any payment made hereunder or under the Notes or from
the execution, delivery or registration of, performing under, or otherwise with
respect to, this Agreement or the Notes (hereinafter referred to as “Other
Taxes”).

               (c)     The Borrower shall indemnify each Lender and the Agent for the full
amount of Taxes or Other Taxes (including, without limitation, any taxes
imposed by any jurisdiction on amounts payable under this Section 2.14) imposed
on or paid by such Lender or the Agent (as the case may be) and any liability
(including penalties, interest and expenses)

27

 

arising therefrom or with respect thereto. This indemnification shall be
made within 30 days from the date such Lender or the Agent (as the case may be)
makes written demand therefor.

               (d)     Within 30 days after the date of any payment of Taxes, the Borrower
shall furnish to the Agent, at its address referred to in Section 8.02, the
original or a certified copy of a receipt evidencing payment thereof. In the
case of any payment hereunder or under the Notes by or on behalf of the
Borrower through an account or branch outside the United States or by or on
behalf of the Borrower by a payor that is not a United States person, if the
Borrower determines that no Taxes are payable in respect thereof, the Borrower
shall furnish, or shall cause such payor to furnish, to the Agent, at such
address, an opinion of counsel acceptable to the Agent stating that such
payment is exempt from Taxes. For purposes of this subsection (d) and
subsection (e), the terms “United States” and “United States person” shall have
the meanings specified in Section 7701 of the Internal Revenue Code.

               (e)     Each Lender organized under the laws of a jurisdiction outside the
United States, on or prior to the date of its execution and delivery of this
Agreement in the case of each Initial Lender and on the date of the Assumption
Agreement or the Assignment and Acceptance, as the case may be, pursuant to
which it becomes a Lender in the case of each other Lender, and from time to
time thereafter as requested in writing by the Borrower (but only so long as
such Lender remains lawfully able to do so), shall provide each of the Agent
and the Borrower with two original Internal Revenue Service forms W-8BEN or
W-8ECI, as appropriate, or any successor or other form prescribed by the
Internal Revenue Service, certifying that such Lender is exempt from or
entitled to a reduced rate of United States withholding tax on payments
pursuant to this Agreement or the Notes. If the forms provided by a Lender at
the time such Lender first becomes a party to this Agreement indicate a United
States interest withholding tax rate in excess of zero, withholding tax at such
rate shall be considered excluded from Taxes unless and until such Lender
provides the appropriate forms certifying that a lesser rate applies, whereupon
withholding tax at such lesser rate only shall be considered excluded from
Taxes for periods governed by such forms; provided, however, that, if at the
date of the Assumption Agreement or the Assignment and Acceptance, as the case
may be, pursuant to which a Lender assignee becomes a party to this Agreement,
the Lender assignor was entitled to payments under subsection (a) in respect of
United States withholding tax with respect to interest paid at such date, then,
to such extent, the term Taxes shall include (in addition to withholding taxes
that may be imposed in the future or other amounts otherwise includable in
Taxes) United States withholding tax, if any, applicable with respect to the
Lender assignee on such date. If any form or document referred to in this
subsection (e) requires the disclosure of information, other than information
necessary to compute the tax payable and information required on the date
hereof by Internal Revenue Service form W-8BEN or W-8ECI, that the Lender
reasonably considers to be confidential, the Lender shall give notice thereof
to the Borrower and shall not be obligated to include in such form or document
such confidential information.

               (f)     For any period with respect to which a Lender has failed to provide
the Borrower with the appropriate form described in Section 2.14(e) (other than
if such failure is due to a change in law occurring subsequent to the date on
which a form originally was required to be provided, or if such form otherwise
is not required under the first sentence of subsection (e) above), such Lender
shall not be entitled to indemnification under Section 2.14(a) or (c) with
respect to Taxes imposed by the United States by reason of such failure;
provided, however, that

28

 

should a Lender become subject to Taxes because of its failure to deliver
a form required hereunder, the Borrower shall take such steps as the Lender
shall reasonably request to assist the Lender to recover such Taxes.

               (g)     Any Lender claiming any additional amounts payable pursuant to this
Section 2.14 agrees to use reasonable efforts (consistent with its internal
policy and legal and regulatory restrictions) to change the jurisdiction of its
Eurodollar Lending Office if the making of such a change would avoid the need
for, or reduce the amount of, any additional amounts that may thereafter accrue
and would not, in the reasonable judgment of such Lender, be otherwise
disadvantageous to such Lender.

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

               SECTION 2.16. Use of Proceeds. The proceeds of the Advances shall be
available (and the Borrower agrees that it shall use such proceeds) for general
corporate purposes of the Borrower and its Subsidiaries, including
acquisitions, stock repurchases and commercial paper backstop.

ARTICLE III

CONDITIONS TO EFFECTIVENESS AND LENDING

               SECTION 3.01. Conditions Precedent to Effectiveness of Sections 2.01 and
2.03. Sections 2.01 and 2.03 of this Agreement shall become effective on and
as of the first date (the “Effective Date”) on which the following conditions
precedent have been satisfied:

		
	 	     (a)     The Borrower shall have paid all accrued fees and expenses of
the Agent and the Lenders (including the accrued fees and expenses of
counsel to the Agent).

29

 

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

		
	 	     (i)     The representations and warranties contained in Section
4.01 are correct in all material respects on and as of the
Effective Date, and
	 
	 	     (ii)     No event has occurred and is continuing that constitutes
a Default.

		
	 	          (c)     The Agent shall have received on or before the Effective Date
the following, each dated such day, in form and substance satisfactory to
the Agent and (except for the Revolving Credit Notes) in sufficient
copies for each Lender:

		
	 	     (i)     The Revolving Credit Notes to the order of the Lenders,
respectively.
	 
	 	     (ii)     Certified copies of the resolutions of the Board of
Directors of the Borrower approving this Agreement and the Notes,
and of all documents evidencing other necessary corporate action
and governmental approvals, if any, with respect to this Agreement
and the Notes.
	 
	 	     (iii)     A certificate of the Secretary or an Assistant Secretary
of the Borrower certifying the names and true signatures of the
officers of the Borrower authorized to sign this Agreement and the
Notes and the other documents to be delivered hereunder.
	 
	 	     (iv)     A favorable opinion of Diana M. Daniels, general counsel
for the Borrower, substantially in the form of Exhibit E hereto and
as to such other matters as any Lender through the Agent may
reasonably request.
	 
	 	     (v)     A favorable opinion of Shearman & Sterling, counsel for
the Agent, in form and substance satisfactory to the Agent.

		
	 	          (d)     The Borrower shall have terminated the commitments, and paid in
full all Debt, interest, fees and other amounts outstanding, under (i)
the 364-Day Credit Agreement dated as of September 20, 2000, as amended
and restated as of September 19, 2001, among the Borrower, the lenders
parties thereto, SunTrust Bank, as syndication agent, The Chase Manhattan
Bank, as documentation agent, and Citibank, as administrative agent for
the lenders, and (ii) the Credit Agreement dated as of March 17, 1998
among the Borrower, the lenders parties thereto, Wachovia Bank, N.A., as
documentation agent, and Citibank, as administrative agent for the
lenders, and each of the Lenders that is a party to either such credit
agreement hereby waives, upon execution of this Agreement, the
requirement of prior notice under such credit agreement relating to the
termination of commitments thereunder.

               SECTION 3.02. Conditions Precedent to Each Revolving Credit Borrowing,
Increase Date. The obligation of each Lender to make a Revolving Credit
Advance on the occasion of each Revolving Credit Borrowing (other than a
Competitive Bid Advance) and each

30

 

Commitment Increase shall be subject to the conditions precedent that the
Effective Date shall have occurred and on the date of such Revolving Credit
Borrowing or such Increase Date the following statements shall be true (and
each of the giving of the applicable Notice of Revolving Credit Borrowing,
request for Commitment Increase and the acceptance by the Borrower of the
proceeds of such Revolving Credit Borrowing shall constitute a representation
and warranty by the Borrower that on the date of such Revolving Credit
Borrowing or such Increase Date such statements are true):

		
	 	          (a)     the representations and warranties contained in Section 4.01 are
correct in all material respects on and as of date of such Revolving
Credit Borrowing or such Increase Date, before and after giving effect to
such Revolving Credit Borrowing or such Increase Date and to the
application of the proceeds therefrom, as though made on and as of such
date except to the extent such representations and warranties expressly
relate to an earlier date, and
	 
	 	          (b)     no event has occurred and is continuing, or would result from
such Revolving Credit Borrowing or such Increase Date or from the
application of the proceeds therefrom, that constitutes a Default.

               SECTION 3.03. Conditions Precedent to Each Competitive Bid Borrowing. The
obligation of each Lender that is to make a Competitive Bid Advance on the
occasion of a Competitive Bid Borrowing to make such Competitive Bid Advance as
part of such Competitive Bid Borrowing is subject to the conditions precedent
that (i) the Agent shall have received the written confirmatory Notice of
Competitive Bid Borrowing with respect thereto, (ii) on or before the date of
such Competitive Bid Borrowing, but prior to such Competitive Bid Borrowing,
the Agent shall have received a Competitive Bid Note payable to the order of
such Lender for each of the one or more Competitive Bid Advances to be made by
such Lender as part of such Competitive Bid Borrowing, in a principal amount
equal to the principal amount of the Competitive Bid Advance to be evidenced
thereby and otherwise on such terms as were agreed to for such Competitive Bid
Advance in accordance with Section 2.03, and (iii) on the date of such
Competitive Bid Borrowing the following statements shall be true (and each of
the giving of the applicable Notice of Competitive Bid Borrowing and the
acceptance by the Borrower of the proceeds of such Competitive Bid Borrowing
shall constitute a representation and warranty by the Borrower that on the date
of such Competitive Bid Borrowing such statements are true):

		
	 	          (a)     the representations and warranties contained in Section 4.01 are
correct in all material respects on and as of the date of such
Competitive Bid Borrowing, before and after giving effect to such
Competitive Bid Borrowing and to the application of the proceeds
therefrom, as though made on and as of such date, and
	 
	 	          (b)     no event has occurred and is continuing, or would result from
such Competitive Bid Borrowing or from the application of the proceeds
therefrom, that constitutes a Default.

               SECTION 3.04. Determinations Under Section 3.01. For purposes of
determining compliance with the conditions specified in Section 3.01, each
Lender shall be deemed to have consented to, approved or accepted or to be
satisfied with each document or

31

 

other matter required thereunder to be consented to or approved by or
acceptable or satisfactory to the Lenders unless an officer of the Agent
responsible for the transactions contemplated by this Agreement shall have
received notice from such Lender prior to the date that the Borrower, by notice
to the Lenders, designates as the proposed Effective Date, specifying its
objection thereto. The Agent shall promptly notify the Lenders and the
Borrower of the occurrence of the Effective Date.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

               SECTION 4.01. Representations and Warranties of the Borrower. The
Borrower represents and warrants as follows:

		
	 	          (a)     The Borrower is a corporation duly organized, validly existing
and in good standing under the laws of the State of Delaware.
	 
	 	          (b)     The execution, delivery and performance by the Borrower of this
Agreement and the Notes, and the consummation of the transactions
contemplated hereby, are within the Borrower’s corporate powers, have
been duly authorized by all necessary corporate action, and do not
contravene (i) the Borrower’s charter or by-laws or (ii) law or any
contractual restriction binding on or affecting the Borrower.
	 
	 	          (c)     No authorization or approval or other action by, and no notice
to or filing with, any governmental authority or regulatory body or any
other third party is required for the due execution, delivery and
performance by the Borrower of this Agreement or the Notes.
	 
	 	          (d)     This Agreement has been, and each of the Notes when delivered
hereunder will have been, duly executed and delivered by the Borrower.
This Agreement is, and each of the Notes when delivered hereunder will
be, the legal, valid and binding obligation of the Borrower enforceable
against the Borrower in accordance with their respective terms.
	 
	 	          (e)     The Consolidated balance sheet of the Borrower and its
Subsidiaries as at December 30, 2001, and the related Consolidated
statements of income and cash flows of the Borrower and its Subsidiaries
for the fiscal year then ended, accompanied by an opinion of
PricewaterhouseCoopers LLP, independent public accountants, and the
condensed Consolidated balance sheet of the Borrower and its Subsidiaries
as at March 31, 2002, and the related condensed Consolidated statements
of income and cash flows of the Borrower and its Subsidiaries for the
three months then ended, duly certified by the chief financial officer of
the Borrower, copies of which have been furnished to each Lender, fairly
present, subject in the case of said balance sheet as at March 31, 2002,
and said statements of income and cash flows for the three months then
ended, to year-end audit adjustments and to the absence of footnote
disclosure, the Consolidated financial condition of the Borrower and its
Subsidiaries as at such dates and the Consolidated

32

 

		
	 	results of the operations of the Borrower and its Subsidiaries for
the periods ended on such dates, all in accordance with generally
accepted accounting principles consistently applied. Between December
30, 2001 and the date hereof, there has been no Material Adverse Change.

		
	 	     (f)     There is no pending or threatened action, suit, investigation,
litigation or proceeding, including, without limitation, any
Environmental Action, affecting the Borrower or any of its Subsidiaries
before any court, governmental agency or arbitrator that (i) is pending
or threatened on the date hereof and is reasonably likely to have a
Material Adverse Effect or (ii) purports to affect the legality, validity
or enforceability of this Agreement or any Note or the consummation of
the transactions contemplated hereby.
	 
	 	     (g)     The Borrower is not, and immediately after the application by
the Borrower of the proceeds of each Advance will not be an “investment
company” within the meaning of the Investment Company Act of 1940, as
amended.
	 
	 	     (h)     After giving effect to the application of the proceeds of each
Advance, not more than 25% of the value of the assets of the Borrower and
its Subsidiaries (as determined in good faith by the Borrower) subject to
the provisions of Section 5.02(a) or subject to any restriction contained
in any agreement or instrument between the Borrower and any Lender or any
Affiliate of any Lender relating to Debt and within the scope of Section
6.01(d) will consist of or be represented by Margin Stock.

ARTICLE V

COVENANTS OF THE BORROWER

          SECTION 5.01. Affirmative Covenants. So long as any Advance shall remain
unpaid or any Lender shall have any Commitment hereunder, the Borrower will:

		
	 	     (a)     Compliance with Laws, Etc. Comply, and cause each of its
Subsidiaries to comply, in all material respects, with all applicable
laws, rules, regulations and orders, such compliance to include, without
limitation, compliance with ERISA and Environmental Laws, except to the
extent that any failures to so comply, individually or in the aggregate,
would not be reasonably likely to have a Material Adverse Effect;
provided, however, that neither the Borrower nor any of its Subsidiaries
shall be required to comply with any law, rule, regulation or order to
the extent it is being contested in good faith and by proper proceedings
and as to which appropriate reserves are being maintained.
	 
	 	     (b)     Payment of Taxes, Etc. Pay and discharge, and cause each of its
Subsidiaries to pay and discharge, before the same shall become
delinquent, all material taxes, assessments and governmental charges or
levies imposed upon it or upon its property; provided, however, that
neither the Borrower nor any of its Subsidiaries shall be required to pay
or discharge any such tax, assessment, charge or claim that is being

33

 

		
	 	contested in good faith and by proper proceedings and as to which
appropriate reserves are being maintained.

		
	 	     (c)     Maintenance of Insurance. Maintain, and cause each of its
Significant Subsidiaries to maintain, insurance with responsible and
reputable insurance companies or associations in such amounts and
covering such risks as is usually carried by companies engaged in similar
businesses and owning similar properties in the same general areas in
which the Borrower or such Significant Subsidiary operates.
	 
	 	     (d)     Preservation of Corporate Existence, Etc. Preserve and maintain
its corporate existence, rights (charter and statutory) and franchises if
the loss or failure to maintain the same could, individually or in the
aggregate, be reasonably likely to have a Material Adverse Effect;
provided, however, that the Borrower may consummate any merger or
consolidation permitted under Section 5.02(b).
	 
	 	     (e)     Visitation Rights. At any reasonable time and from time to time
on reasonable notice and at reasonable intervals, permit the Agent or any
of the Lenders, or any agents or representatives thereof, to visit the
properties of the Borrower and any of its Subsidiaries and to discuss the
affairs, finances and accounts of the Borrower and any of its
Subsidiaries with any of their officers or directors and, during the
continuance of any Default, to examine and make copies of and abstracts
from the records and books of account of the Borrower and any of its
Subsidiaries and to discuss the affairs, finances and accounts of the
Borrower and any of its Subsidiaries with their independent certified
public accountants.
	 
	 	     (f)     Keeping of Books. Keep, and cause each of its Subsidiaries to
keep, proper books of record and account, in which entries shall be made
of all financial transactions and the assets and business of the Borrower
and each such Subsidiary in accordance with generally accepted accounting
principles in effect from time to time.
	 
	 	     (g)     Maintenance of Properties, Etc. Maintain and preserve, and
cause each of its Significant Subsidiaries to maintain and preserve, all
of its properties that are used or useful in the conduct of its business
in good working order and condition, ordinary wear and tear excepted,
except to the extent that any failure to do so, individually or in the
aggregate, would not be reasonably likely to have a Material Adverse
Effect.
	 
	 	     (h)     Primary Business. The Borrower shall continue to be engaged
primarily in lines of business as carried on at the date hereof or lines
of business related thereto.
	 
	 	     (i)     Reporting Requirements. Furnish to the Lenders:

		
	 	     (i)     as soon as available and in any event within 55 days after
the end of each of the first three quarters of each fiscal year of
the Borrower, the Consolidated balance sheet of the Borrower and
its Subsidiaries as of the end of such quarter and Consolidated
statements of income and cash flows of the Borrower and its
Subsidiaries for the period commencing at the end of the previous
fiscal year and ending with the end of such quarter, duly certified
(subject to year-end audit adjustments) by the chief financial
officer of the

34

 

		
	 	Borrower as having been prepared in accordance with generally
accepted accounting principles and certificates of the chief
financial officer of the Borrower as to compliance with the terms
of this Agreement, provided that in the event of any change in GAAP
used in the preparation of such financial statements, the Borrower
shall also provide, if necessary for the determination of
compliance with Section 5.03, a statement of reconciliation
conforming such financial statements to GAAP;

		
	 	     (ii)     as soon as available and in any event within 105 days
after the end of each fiscal year of the Borrower, a copy of the
annual audit report for such year for the Borrower and its
Subsidiaries, containing the Consolidated balance sheet of the
Borrower and its Subsidiaries as of the end of such fiscal year and
Consolidated statements of income and cash flows of the Borrower
and its Subsidiaries for such fiscal year, in each case accompanied
by an opinion by PricewaterhouseCoopers LLP or other independent
public accountants of recognized national standing, provided that
in the event of any change in GAAP used in the preparation of such
financial statements, the Borrower shall also provide, if necessary
for the determination of compliance with Section 5.03, a statement
of reconciliation conforming such financial statements to GAAP;
	 
	 	     (iii)     as soon as possible and in any event within seven days
after the occurrence of each Default continuing on the date of such
statement, a statement of the chief financial officer of the
Borrower setting forth details of such Default and the action that
the Borrower has taken and proposes to take with respect thereto;
	 
	 	     (iv)     promptly after the sending or filing thereof, copies of
all quarterly and annual reports and proxy solicitations that the
Borrower sends to its public securityholders generally, and copies
of all reports on Form 8-K and registration statements for the
public offering (other than pursuant to employee Plans) of
securities that the Borrower files with the Securities and Exchange
Commission or any national securities exchange;
	 
	 	     (v)     promptly after the commencement thereof, notice of all
actions and proceedings before any court, governmental agency or
arbitrator affecting the Borrower or any of its Subsidiaries of the
type described in Section 4.01(f); and
	 
	 	     (vi)     such other information respecting the Borrower or any of
its Subsidiaries as any Lender through the Agent may from time to
time reasonably request.

               SECTION 5.02. Negative Covenants. So long as any Advance shall remain
unpaid or any Lender shall have any Commitment hereunder, the Borrower will
not:

		
	 	     (a)     Liens, Etc. Create or suffer to exist, or permit any of its
Subsidiaries to create or suffer to exist, any Lien on or with respect to
any of its properties (which for purposes of this subsection (a) shall be
deemed not to include shares of the Borrower’s

35

 

		
	 	capital stock), whether now owned or hereafter acquired, or assign,
or permit any of its Subsidiaries to assign, any right to receive income,
other than:

		
	 	     (i)     Permitted Liens,
	 
	 	     (ii)     purchase money Liens upon or in any real property or
equipment acquired or held by the Borrower or any Subsidiary in the
ordinary course of business to secure the purchase price of such
property or equipment or to secure Debt incurred solely for the
purpose of financing the acquisition of such property or equipment,
or Liens existing on such property or equipment at the time of its
acquisition (other than any such Liens created in contemplation of
such acquisition that were not incurred to finance the acquisition
of such property) or extensions, renewals or replacements of any of
the foregoing for the same or a lesser amount, provided, however,
that no such Lien shall extend to or cover any properties of any
character other than the real property or equipment being acquired
(or, in the case of improvements to real property, the real
property being improved), and no such extension, renewal or
replacement shall extend to or cover any properties not theretofore
subject to the Lien being extended, renewed or replaced,
	 
	 	     (iii)     the Liens existing on the Effective Date and described
on Schedule 5.02(a) hereto,
	 
	 	     (iv)     Liens securing Debt payable to the Borrower,
	 
	 	     (v)     other Liens securing Debt in an aggregate principal amount
not to exceed at any time outstanding an amount equal to 20% of
Consolidated Shareholders’ Equity, and
	 
	 	     (vi)     the replacement, extension or renewal of any Lien
permitted by clause (iii) above upon or in the same property
theretofore subject thereto or the replacement, extension or
renewal (without increase in the amount) of the Debt secured
thereby.

		
	 	     (b)     Mergers, Etc. Merge or consolidate with or into, or convey,
transfer, lease or otherwise 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, any Person, provided that the
Borrower may merge or consolidate with any other Person so long as the
Borrower is the surviving corporation and provided further that no
Default shall have occurred and be continuing at the time of such
proposed transaction or would result therefrom.
	 
	 	     (c)     Accounting Changes. Make or permit, or permit any of its
Subsidiaries to make or permit, any change in accounting policies or
reporting practices, except as permitted by generally accepted accounting
principles and, in the case of any significant change, concurred with by
the Borrower’s independent public accountants.

36

 

               SECTION 5.03. Financial Covenant. So long as any Advance shall remain
unpaid or any Lender shall have any Commitment hereunder, the Borrower will
maintain Consolidated Shareholders’ Equity of not less than $1,000,000,000.

ARTICLE VI

EVENTS OF DEFAULT

               SECTION 6.01. Events of Default. If any of the following events (“Events
of Default”) shall occur and be continuing:

		
	 	     (a)     The Borrower shall fail to pay any principal of any Advance when
the same becomes due and payable (or, if any such failure is due solely
to technical or administrative difficulties relating to the transfer of
such principal payment, within two Business Days after the same becomes
due and payable); or the Borrower shall fail to pay any interest on any
Advance or make any other payment of fees or other amounts payable under
this Agreement or any Note within three Business Days after the same
becomes due and payable; or
	 
	 	     (b)     Any representation or warranty made by the Borrower herein or by
the Borrower (or any of its officers) in connection with this Agreement
shall prove to have been incorrect in any material respect when made; or
	 
	 	     (c)     (i) The Borrower shall fail to perform or observe any term,
covenant or agreement contained in Section 5.01(d) or (i)(iii), 5.02 or
5.03, or (ii) the Borrower shall fail to perform or observe any other
term, covenant or agreement contained in this Agreement on its part to be
performed or observed if such failure shall remain unremedied for 20 days
after written notice thereof shall have been given to the Borrower by the
Agent or any Lender; or
	 
	 	     (d)     The Borrower or any of its Subsidiaries shall fail to pay any
principal of or premium or interest on any Debt (other than Non-Recourse
Debt) that is outstanding in a principal amount of at least $40,000,000
in the aggregate (but excluding Debt outstanding hereunder) of the
Borrower or such Subsidiary (as the case may be), when the same becomes
due and payable (whether by scheduled maturity, required prepayment,
acceleration, demand or otherwise), and such failure shall continue after
the applicable grace period, if any, specified in the agreement or
instrument relating to such Debt; or any other event shall occur or
condition shall exist under any agreement or instrument relating to any
such Debt and shall continue after the applicable grace period, if any,
specified in such agreement or instrument, if the effect of such event or
condition is to accelerate, or to permit the acceleration of, the
maturity of such Debt; or
	 
	 	     (e)     The Borrower or any of its Significant Subsidiaries shall
generally not pay its debts as such debts become due, or shall admit in
writing its inability to pay its debts generally, or shall make a general
assignment for the benefit of creditors; or any proceeding shall be
instituted by or against the Borrower or any of its Significant

37

 

		
	 	Subsidiaries seeking to adjudicate it a bankrupt or insolvent, or
seeking liquidation, winding up, reorganization, arrangement, adjustment,
protection, relief, or composition of it or its debts under any law
relating to bankruptcy, insolvency or reorganization or relief of
debtors, or seeking the entry of an order for relief or the appointment
of a receiver, trustee, custodian or other similar official for it or for
any substantial part of its property and, in the case of any such
proceeding instituted against it (but not instituted by it), either such
proceeding shall remain undismissed or unstayed for a period of 60 days,
or in such proceeding the entry of an order for relief against, or the
appointment of a receiver, trustee, custodian or other similar official
for, it or for any substantial part of its property shall occur; or the
Borrower or any of its Significant Subsidiaries shall take any corporate
action to authorize any of the actions set forth above in this subsection
(e); or
	 
	 	     (f)     Any judgment or order of a court of competent jurisdiction for
the payment of money in excess of $20,000,000 shall be rendered against
the Borrower or any of its Significant Subsidiaries and either (i)
enforcement proceedings shall have been legally commenced by any creditor
upon such judgment or order or (ii) there shall be any period of 60
consecutive days during which a stay of enforcement of such judgment or
order, by reason of a pending appeal or otherwise, shall not be in effect
provided, however, that any such judgment or order shall not be an Event
of Default under this Section 6.01(f) if and for so long as (x) the
amount of such judgment or order is covered by a valid and binding policy
of insurance between the defendant and the insurer covering payment
thereof and (y) such insurer, which shall be rated at least “A-” by A.M.
Best Company, has been notified of, and has not disputed the claim made
for payment of, the amount of such judgment or order; or
	 
	 	     (g)     (i) Any Person or two or more Persons acting in concert (other
than the Graham Interests) shall have acquired beneficial ownership
(within the meaning of Rule 13d-3 of the Securities and Exchange
Commission under the Securities Exchange Act of 1934), directly or
indirectly, of Voting Stock of the Borrower (or other securities
convertible into such Voting Stock) representing 30% or more of the
combined voting power of all Voting Stock of the Borrower and such
combined voting power exceeds the then current voting power of the Voting
Stock of the Borrower (or other securities convertible into such Voting
Stock) controlled by the Graham Interests; or (ii) Continuing Directors
of the Borrower shall cease for any reason to constitute a majority of
the board of directors of the Borrower; or
	 
	 	     (h)     The Borrower or any of its ERISA Affiliates shall incur
liability as a result of one or more of the following: (i) the
occurrence of any ERISA Event; (ii) the partial or complete withdrawal of
the Borrower or any of its ERISA Affiliates from a Multiemployer Plan; or
(iii) the reorganization or termination of a Multiemployer Plan; and, in
the reasonable opinion of the Required Lenders, such incurrence would be
likely to result in a Material Adverse Effect, provided that any such
liability in an amount not to exceed $20,000,000 shall be deemed not to
be likely to result in a Material Adverse Effect;

then, and in any such event, the Agent (i) shall at the request, or may with
the consent, of the Required Lenders, by notice to the Borrower, declare the
obligation of each Lender to make

38

 

Advances to be terminated, whereupon the same shall forthwith terminate, and
(ii) shall at the request, or may with the consent, of the Required Lenders, by
notice to the Borrower, declare the Notes, all interest thereon and all other
amounts payable under this Agreement to be forthwith due and payable, whereupon
the Notes, all such interest and all such amounts shall become and be forthwith
due and payable, without presentment, demand, protest or further notice of any
kind, all of which are hereby expressly waived by the Borrower; provided,
however, that in the event of an actual or deemed entry of an order for relief
with respect to the Borrower under the Federal Bankruptcy Code, (A) the
obligation of each Lender to make Advances shall automatically be terminated
and (B) the Notes, all such interest and all such amounts shall automatically
become and be due and payable, without presentment, demand, protest or any
notice of any kind, all of which are hereby expressly waived by the Borrower.

ARTICLE VII

THE AGENT

               SECTION 7.01. Authorization and Action. Each Lender hereby appoints and
authorizes the Agent to take such action as agent on its behalf and to exercise
such powers and discretion under this Agreement as are delegated to the Agent
by the terms hereof, together with such powers and discretion as are reasonably
incidental thereto. As to any matters not expressly provided for by this
Agreement (including, without limitation, enforcement or collection of the
Notes), the Agent shall not be required to exercise any discretion or take any
action, but shall be required to act or to refrain from acting (and shall be
fully protected in so acting or refraining from acting) upon the instructions
of the Required Lenders, and such instructions shall be binding upon all
Lenders and all holders of Notes; provided, however, that the Agent shall not
be required to take any action that exposes the Agent to personal liability or
that is contrary to this Agreement or applicable law. The Agent agrees to give
to each Lender prompt notice of each notice given to it by the Borrower
pursuant to the terms of this Agreement.

               SECTION 7.02. Agent’s Reliance, Etc. Neither the Agent nor any of its
directors, officers, agents or employees shall be liable for any action taken
or omitted to be taken by it or them under or in connection with this
Agreement, except for its or their own gross negligence or willful misconduct.
Without limitation of the generality of the foregoing, the Agent: (i) may
treat the payee of any Note as the holder thereof until the Agent receives and
accepts an Assumption Agreement entered into by an Assuming Lender as provided
in Section 2.05(b) or an Assignment and Acceptance entered into by the Lender
that is the payee of such Note, as assignor, and an Eligible Assignee, as
assignee, as provided in Section 8.07; (ii) may consult with legal counsel
(including counsel for the Borrower), independent public accountants and other
experts selected by it and shall not be liable for any action taken or omitted
to be taken in good faith by it in accordance with the advice of such counsel,
accountants or experts; (iii) makes no warranty or representation to any Lender
and shall not be responsible to any Lender for any statements, warranties or
representations (whether written or oral) made in or in connection with this
Agreement; (iv) shall not have any duty to ascertain or to inquire as to the
performance or observance of any of the terms, covenants or conditions of this
Agreement on the part of the Borrower or to inspect the property (including the
books and records) of the Borrower; (v) shall not be responsible to any Lender
for the due execution, legality, validity,

39

 

enforceability, genuineness, sufficiency or value of this Agreement or any
other instrument or document furnished pursuant hereto; and (vi) shall incur no
liability under or in respect of this Agreement by acting upon any notice,
consent, certificate or other instrument or writing (which may be by
telecopier, telegram or telex) reasonably believed by it to be genuine and
signed or sent by the proper party or parties.

               SECTION 7.03. Citibank and Affiliates. With respect to its Commitment,
the Advances made by it and the Note issued to it, Citibank shall have the same
rights and powers under this Agreement as any other Lender and may exercise the
same as though it were not the Agent; and the term “Lender” or “Lenders” shall,
unless otherwise expressly indicated, include Citibank in its individual
capacity. Citibank and its Affiliates may accept deposits from, lend money to,
act as trustee under indentures of, accept investment banking engagements from
and generally engage in any kind of business with, the Borrower, any of its
Subsidiaries and any Person who may do business with or own securities of the
Borrower or any such Subsidiary, all as if Citibank were not the Agent and
without any duty to account therefor to the Lenders.

               SECTION 7.04. Lender Credit Decision. Each Lender acknowledges that it
has, independently and without reliance upon the Agent or any other Lender and
based on the financial statements referred to in Section 4.01 and such other
documents and information as it has deemed appropriate, made its own credit
analysis and decision to enter into this Agreement. Each Lender also
acknowledges that it will, independently and without reliance upon the Agent or
any other Lender and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or
not taking action under this Agreement.

               SECTION 7.05. Indemnification. The Lenders agree to indemnify the Agent
(to the extent not reimbursed by the Borrower), ratably according to the
respective principal amounts of the Revolving Credit Notes then held by each of
them (or if no Revolving Credit Notes are at the time outstanding or if any
Revolving Credit Notes are held by Persons that are not Lenders, ratably
according to the respective amounts of their Commitments), from and against any
and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind or nature
whatsoever that may be imposed on, incurred by, or asserted against the Agent
in any way relating to or arising out of this Agreement or any action taken or
omitted by the Agent under this Agreement, provided that no Lender shall be
liable for any portion of such liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements
resulting from the Agent’s gross negligence or willful misconduct. Without
limitation of the foregoing, each Lender agrees to reimburse the Agent promptly
upon demand for its ratable share of any out-of-pocket expenses (including
counsel fees) incurred by the Agent in connection with the preparation,
execution, delivery, administration, modification, amendment or enforcement
(whether through negotiations, legal proceedings or otherwise) of, or legal
advice in respect of rights or responsibilities under, this Agreement, to the
extent that the Agent is not reimbursed for such expenses by the Borrower.

               SECTION 7.06. Successor Agent. The Agent may resign at any time by giving
written notice thereof to the Lenders and the Borrower and may be removed at
any time with or without cause by the Required Lenders. Upon any such
resignation or removal, the Required Lenders shall have the right to appoint a
successor Agent. If no successor Agent shall have been

40

 

so appointed by the Required Lenders, and shall have accepted such
appointment, within 30 days after the retiring Agent’s giving of notice of
resignation or the Required Lenders’ removal of the retiring Agent, then the
retiring Agent may, on behalf of the Lenders, appoint a successor Agent, which
shall be a commercial bank organized under the laws of the United States of
America or of any State thereof and having a combined capital and surplus of at
least $500,000,000. Upon the acceptance of any appointment as Agent hereunder
by a successor Agent, such successor Agent shall thereupon succeed to and
become vested with all the rights, powers, discretion, privileges and duties of
the retiring Agent, and the retiring Agent shall be discharged from its duties
and obligations under this Agreement. After any retiring Agent’s resignation
or removal hereunder as Agent, the provisions of this Article VII shall inure
to its benefit as to any actions taken or omitted to be taken by it while it
was Agent under this Agreement.

               SECTION 7.07. Documentation Agents and Syndication Agents. Wachovia Bank,
National Association and SunTrust Bank have been designated as syndication
agents and JPMorgan Chase Bank and Bank One, N.A. have been designated as
documentation agents in recognition of their respective Commitments, and the
use of such title does not impose on such Lender any duties or obligations
greater than those of any other Lender.

ARTICLE VIII

MISCELLANEOUS

               SECTION 8.01. Amendments, Etc. No amendment or waiver of any provision of
this Agreement or the Revolving Credit Notes, nor consent to any departure by
the Borrower therefrom, shall in any event be effective unless the same shall
be in writing and signed by the Required Lenders, and then such waiver or
consent shall be effective only in the specific instance and for the specific
purpose for which given; provided, however, that no amendment, waiver or
consent shall, unless in writing and signed by all the Lenders, do any of the
following: (a) waive any of the conditions specified in Section 3.01, (b)
increase the Commitments of the Lenders other than as provided in Section
2.05(b), (c) reduce the principal of, or interest on, the Revolving Credit
Notes or any fees or other amounts payable hereunder, (d) postpone any date
fixed for any payment of principal of, or interest on, the Revolving Credit
Notes or any fees or other amounts payable hereunder, (e) change the percentage
of the Commitments or of the aggregate unpaid principal amount of the Revolving
Credit Notes that shall be required for the Lenders or any of them to take any
action hereunder or (f) amend this Section 8.01; provided further that no
amendment, waiver or consent shall, unless in writing and signed by the Agent
in addition to the Lenders required above to take such action, affect the
rights or duties of the Agent under this Agreement or any Note.

               SECTION 8.02. Notices, Etc. All notices and other communications provided
for hereunder shall be in writing (including telecopier, telegraphic or telex
communication) and telecopied, telegraphed, telexed or delivered, if to the
Borrower, at its address at 1150 15th Street, N.W., Washington, D.C. 20071,
Attention: Treasurer; if to any Initial Lender, at its Domestic Lending Office
specified opposite its name on Schedule I hereto; if to any other Lender, at
its Domestic Lending Office specified in the Assumption Agreement or the
Assignment and Acceptance pursuant to which it became a Lender; and if to the
Agent, at its

41

 

address at Two Penns Way, Suite 200, New Castle, Delaware 19720,
Attention: Cristian Garcia; or, as to the Borrower or the Agent, at such other
address as shall be designated by such party in a written notice to the other
parties and, as to each other party, at such other address as shall be
designated by such party in a written notice to the Borrower and the Agent.
All such notices and communications shall, when hand delivered, telecopied,
telegraphed or telexed, be effective when received. Delivery by telecopier of
an executed counterpart of any amendment or waiver of any provision of this
Agreement or the Notes or of any Exhibit hereto to be executed and delivered
hereunder shall be effective as delivery of a manually executed counterpart
thereof.

               SECTION 8.03. No Waiver; Remedies. No failure on the part of any Lender
or the Agent to exercise, and no delay in exercising, any right hereunder or
under any Note shall operate as a waiver thereof; nor shall any single or
partial exercise of any such right preclude any other or further exercise
thereof or the exercise of any other right. The remedies herein provided are
cumulative and not exclusive of any remedies provided by law.

               SECTION 8.04. Costs and Expenses. (a) The Borrower agrees to pay on
demand all reasonable out-of-pocket costs and expenses of the Agent in
connection with the preparation, execution, delivery, administration,
modification and amendment of this Agreement, the Notes and the other documents
to be delivered hereunder, including, without limitation, (A) all due
diligence, syndication (including printing, distribution and bank meetings),
transportation and duplication expenses, and (B) the reasonable fees and
expenses of counsel for the Agent with respect thereto and with respect to
advising the Agent as to its rights and responsibilities under this Agreement.
The Borrower further agrees to pay on demand all reasonable out-of-pocket costs
and expenses of the Agent and the Lenders, if any (including, without
limitation, reasonable counsel fees and expenses), in connection with the
enforcement (whether through negotiations, legal proceedings or otherwise) of
this Agreement, the Notes and the other documents to be delivered hereunder,
including, without limitation, reasonable fees and expenses of counsel for the
Agent and each Lender in connection with the enforcement of rights under this
Section 8.04(a).

               (b)     The Borrower agrees to indemnify and hold harmless the Agent and each
Lender and each of their Affiliates and their officers, directors, employees,
agents and advisors (each, an “Indemnified Party”) from and against any and all
claims, damages, losses, liabilities and expenses (including, without
limitation, reasonable fees and expenses of counsel) that may be incurred by or
asserted or awarded against any Indemnified Party, in each case arising out of
or in connection with or by reason of, or in connection with the preparation
for a defense of, any investigation, litigation or proceeding arising out of,
related to or in connection with the Notes, this Agreement, any of the
transactions contemplated herein or the actual or proposed use of the proceeds
of the Advances, whether or not such investigation, litigation or proceeding is
brought by the Borrower, its directors, shareholders or creditors or an
Indemnified Party or any other Person or any Indemnified Party is otherwise a
party thereto and whether or not the transactions contemplated hereby are
consummated, except to the extent such claim, damage, loss, liability or
expense is found in a final, non-appealable judgment by a court of competent
jurisdiction to have resulted from such Indemnified Party’s gross negligence or
willful misconduct or breach of its obligations under this Agreement.

42

 

               (c)     If any payment of principal of, or Conversion of, any Eurodollar Rate
Advance or LIBO Rate Advance is made by the Borrower to or for the account of a
Lender other than on the last day of the Interest Period for such Advance, as a
result of a payment or Conversion pursuant to Section 2.08(d) or (e), 2.09,
2.10 or 2.12, acceleration of the maturity of the Notes pursuant to Section
6.01 or for any other reason, or by an Eligible Assignee to a Lender other than
on the last day of an Interest Period for such Advance upon an assignment of
rights and obligations under this Agreement pursuant to Section 8.07 as a
result of a demand by the Borrower pursuant to Section 8.07(a), the Borrower
shall, upon demand by such Lender (with a copy of such demand to the Agent),
pay to the Agent for the account of such Lender any amounts required to
compensate such Lender for any additional losses, costs or expenses that it may
reasonably incur as a result of such payment or Conversion, including, without
limitation, any loss (excluding loss of anticipated profits), cost or expense
incurred by reason of the liquidation or reemployment of deposits or other
funds acquired by any Lender to fund or maintain such Advance.

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

               SECTION 8.05. Right of Set-off. Upon (i) the occurrence and during the
continuance of any Event of Default and (ii) the making of the request or the
granting of the consent specified by Section 6.01 to authorize the Agent to
declare the Notes due and payable pursuant to the provisions of Section 6.01,
each Lender and each of its Affiliates is hereby authorized at any time and
from time to time, to the fullest extent permitted by law, to set off and apply
any and all deposits (general or special, time or demand, provisional or final)
at any time held and other indebtedness at any time owing by such Lender or
such Affiliate to or for the credit or the account of the Borrower against any
and all of the obligations of the Borrower now or hereafter existing under this
Agreement and the Note held by such Lender, whether or not such Lender shall
have made any demand under this Agreement or such Note and although such
obligations may be unmatured. Each Lender agrees promptly to notify the
Borrower after any such set-off and application, provided that the failure to
give such notice shall not affect the validity of such set-off and application.
The rights of each Lender and its Affiliates under this Section are in
addition to other rights and remedies (including, without limitation, other
rights of set-off) that such Lender and its Affiliates may have.

               SECTION 8.06. Binding Effect. This Agreement shall become effective
(other than Sections 2.01 and 2.03, which shall only become effective upon
satisfaction of the conditions precedent set forth in Section 3.01) when it
shall have been executed by the Borrower and the Agent and when the Agent shall
have been notified by each Initial Lender that such Initial Lender has executed
it and thereafter shall be binding upon and inure to the benefit of the
Borrower, the Agent and each Lender and their respective successors and
assigns, except that the Borrower shall not have the right to assign its rights
hereunder or any interest herein without the prior written consent of the
Lenders.

               SECTION 8.07. Assignments and Participations. (a) Each Lender may with
the consent of the Agent and the Borrower (which consent shall not be
unreasonably withheld or

43

 

delayed) and, if demanded by the Borrower (following a demand by such
Lender pursuant to Section 2.11 or 2.14 or following such Lender’s Downgrade)
at a time when no Default has occurred and is continuing upon at least five
Business Days’ notice to such Lender and the Agent, will assign to one or more
Persons all or a portion of its rights and obligations under this Agreement
(including, without limitation, all or a portion of its Commitment, the
Revolving Credit Advances owing to it and the Revolving Credit Note or Notes
held by it); provided, however, that (i) each such assignment shall be of a
constant, and not a varying, percentage of all rights and obligations under
this Agreement (other than any right to make Competitive Bid Advances,
Competitive Bid Advances owing to it and Competitive Bid Notes), (ii) except in
the case of an assignment to a Person that, immediately prior to such
assignment, was a Lender or an assignment of all of a Lender’s rights and
obligations under this Agreement, the amount of the Commitment of the assigning
Lender being assigned pursuant to each such assignment (determined as of the
date of the Assignment and Acceptance with respect to such assignment) shall in
no event be less than $10,000,000 or an integral multiple of $1,000,000 in
excess thereof and the amount of the Commitment of such Lender remaining after
such assignment shall not be less than $10,000,000 or shall be zero, (iii) each
such assignment shall be to an Eligible Assignee, (iv) each such assignment
made as a result of a demand by the Borrower pursuant to this Section 8.07(a)
shall be arranged by the Borrower after consultation with the Agent and shall
be either an assignment of all of the rights and obligations of the assigning
Lender under this Agreement or an assignment of a portion of such rights and
obligations made concurrently with another such assignment or other such
assignments that together cover all of the rights and obligations of the
assigning Lender under this Agreement, (v) no Lender shall be obligated to make
any such assignment as a result of a demand by the Borrower pursuant to this
Section 8.07(a) unless and until such Lender shall have received one or more
payments from either the Borrower or one or more Eligible Assignees in an
aggregate amount at least equal to the aggregate outstanding principal amount
of the Advances owing to such Lender, together with accrued interest thereon to
the date of payment of such principal amount and all other amounts payable to
such Lender under this Agreement, and (vi) unless such assignment is demanded
by the Borrower, the parties to each such assignment shall execute and deliver
to the Agent, for its acceptance and recording in the Register, an Assignment
and Acceptance, together with any Revolving Credit Note subject to such
assignment and a processing and recordation fee of $3,500. Upon such
execution, delivery, acceptance and recording, from and after the effective
date specified in each Assignment and Acceptance, (x) the assignee thereunder
shall be a party hereto and, to the extent that rights and obligations
hereunder have been assigned to it pursuant to such Assignment and Acceptance,
have the rights and obligations of a Lender hereunder and (y) the Lender
assignor thereunder shall, to the extent that rights and obligations hereunder
have been assigned by it pursuant to such Assignment and Acceptance, relinquish
its rights and be released from its obligations under this Agreement (and, in
the case of an Assignment and Acceptance covering all or the remaining portion
of an assigning Lender’s rights and obligations under this Agreement, such
Lender shall cease to be a party hereto).

               (b)     By executing and delivering an Assignment and Acceptance, the Lender
assignor thereunder and the assignee thereunder confirm to and agree with each
other and the other parties hereto as follows: (i) other than as provided in
such Assignment and Acceptance, such assigning Lender makes no representation
or warranty and assumes no responsibility with respect to any statements,
warranties or representations made in or in connection with this Agreement or
the execution, legality, validity, enforceability, genuineness, sufficiency or
value

44

 

of this Agreement or any other instrument or document furnished pursuant
hereto; (ii) such assigning Lender makes no representation or warranty and
assumes no responsibility with respect to the financial condition of the
Borrower or the performance or observance by the Borrower of any of its
obligations under this Agreement or any other instrument or document furnished
pursuant hereto; (iii) such assignee confirms that it has received a copy of
this Agreement, together with copies of the financial statements referred to in
Section 4.01 and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into such
Assignment and Acceptance; (iv) such assignee will, independently and without
reliance upon the Agent, such assigning Lender or any other Lender and based on
such documents and information as it shall deem appropriate at the time,
continue to make its own credit decisions in taking or not taking action under
this Agreement; (v) such assignee confirms that it is an Eligible Assignee;
(vi) such assignee appoints and authorizes the Agent to take such action as
agent on its behalf and to exercise such powers and discretion under this
Agreement as are delegated to the Agent by the terms hereof, together with such
powers and discretion as are reasonably incidental thereto; and (vii) such
assignee agrees that it will perform in accordance with their terms all of the
obligations that by the terms of this Agreement are required to be performed by
it as a Lender.

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

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

               (e)     Each Lender may sell participations to one or more banks or other
entities (other than the Borrower or any of its Affiliates) in or to all or a
portion of its rights and obligations under this Agreement (including, without
limitation, all or a portion of its

45

 

Commitment, the Advances owing to it and the Note or Notes held by it)
with the consent of the Borrower (which consent shall not be unreasonably
withheld or delayed); provided, however, that (i) such Lender’s obligations
under this Agreement (including, without limitation, its Commitment to the
Borrower hereunder) shall remain unchanged, (ii) such Lender shall remain
solely responsible to the other parties hereto for the performance of such
obligations, (iii) such Lender shall remain the holder of any such Note for all
purposes of this Agreement, (iv) the Borrower, the Agent and the other Lenders
shall continue to deal solely and directly with such Lender in connection with
such Lender’s rights and obligations under this Agreement and (v) no
participant under any such participation shall have any right to approve any
amendment or waiver of any provision of this Agreement or any Note, or any
consent to any departure by the Borrower therefrom, except to the extent that
such amendment, waiver or consent would reduce the principal of, or interest
on, the Notes or any fees or other amounts payable hereunder, in each case to
the extent subject to such participation, or postpone any date fixed for any
payment of principal of, or interest on, the Notes or any fees or other amounts
payable hereunder, in each case to the extent subject to such participation.

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

               (g)     Notwithstanding any other provision set forth in this Agreement, any
Lender may at any time create a security interest in all or any portion of its
rights under this Agreement (including, without limitation, the Advances owing
to it and the Note or Notes held by it) in favor of any Federal Reserve Bank in
accordance with Regulation A of the Board of Governors of the Federal Reserve
System.

               SECTION 8.08. Confidentiality. Neither the Agent nor any Lender shall
disclose any Confidential Information to any other Person without the consent
of the Borrower, other than (a) to the Agent’s or such Lender’s Affiliates and
their officers, directors, employees, accountants, auditors, counsel, agents
and advisors and, as contemplated by Section 8.07(f), to actual or prospective
assignees and participants, and then only on a confidential basis, (b) as
required by any law, rule or regulation or judicial process, (c) to any rating
agency when required by it, provided that, prior to any such disclosure, such
rating agency shall undertake to preserve the confidentiality of any
Confidential Information relating to the Borrower received by it from such
Lender and (d) as requested or required by any state, federal or foreign
authority or examiner regulating banks or banking.

               SECTION 8.09. Governing Law. This Agreement and the Notes shall be
governed by, and construed in accordance with, the laws of the State of New
York.

               SECTION 8.10. Execution in Counterparts. This Agreement may be executed
in any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall

46

 

constitute one and the same agreement. Delivery of an executed
counterpart of a signature page to this Agreement by telecopier shall be
effective as delivery of a manually executed counterpart of this Agreement.

               SECTION 8.11. Jurisdiction, Etc. (a) Each of the parties hereto hereby
irrevocably and unconditionally submits, for itself and its property, to the
nonexclusive jurisdiction of any New York State court or federal court of the
United States of America sitting in New York City, and any appellate court from
any thereof, in any action or proceeding arising out of or relating to this
Agreement or the Notes, or for recognition or enforcement of any judgment, and
each of the parties hereto hereby irrevocably and unconditionally agrees that
all claims in respect of any such action or proceeding may be heard and
determined in any such New York State court or, to the extent permitted by law,
in such federal court. Each of the parties hereto agrees that a final judgment
in any such action or proceeding shall be conclusive and may be enforced in
other jurisdictions by suit on the judgment or in any other manner provided by
law. Nothing in this Agreement shall affect any right that any party may
otherwise have to bring any action or proceeding relating to this Agreement or
the Notes in the courts of any jurisdiction.

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

               SECTION 8.12. Waiver of Jury Trial. Each of the Borrower, the Agent and
the Lenders hereby irrevocably waives all right to trial by jury in any action,
proceeding or counterclaim (whether based on contract, tort or otherwise)
arising out of or relating to this Agreement or the Notes or the actions of the
Agent or any Lender in the negotiation, administration, performance or
enforcement thereof.

47

 

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

	 	 	 
	THE WASHINGTON
POST COMPANY
	 
	By	 	
     
/s/ John B. Morse, Jr.

Title: Vice President - Finance
	 
	CITIBANK, N.A.

     as Agent
	 
	By	 	
     /s/ Steven Victorin

Name: Steven Victorin

Title: Vice President

48

 

	 	 	 	 	 
	 	 	
Initial Lenders
	 
	Commitment	 	 	 	 
	 
	$100,000,000	 	
CITIBANK, N.A.
	 
	 	 	
By
	 	/s/ Steven Victorin

Name:  Steven Victorin

Title:    Vice President
	 
	$75,000,000	 	
WACHOVIA BANK, NATIONAL

ASSOCIATION
	 
	 	 	
By
	 	/s/ Barbara Angel

Name:  Barbara Angel

Title:    Vice President
	 
	$62,500,000	 	
SUNTRUST BANK
	 
	 	 	
By
	 	/s/ Nancy Petrash

Name:  Nancy Petrash

Title:    Director
	 
	$37,500,000	 	
BANK ONE, N.A.
	 
	 	 	
By
	 	/s/ Dan Casey

Name:  Dan Casey

Title:    Director
	 
	$37,500,000	 	
JPMORGAN CHASE
BANK
	 
	 	 	
By
	 	/s/ Charles Swarns

Name:  Charles Swarns

Title:    Vice President

49

 

	 	 	 	 	 
	 
	$25,000,000	 	
THE BANK
OF NEW YORK
	 
	 	 	
By
	 	/s/ Michael Masters

Name:  Michael Masters

Title:  Assistant Vice President
	 
	$12,500,000	 	
RIGGS BANK N.A.
	 
	 	 	
By
	 	/s/ Douglas Klamfoth

Name:  Douglas Klamfoth

Title:    Vice President
	 
	$350,000,000	 	
Total of the Commitments

 

SCHEDULE I

The Washington Post Company

5-Year Credit Agreement

APPLICABLE LENDING OFFICES

	 	 	 	 	 
	Name of Initial Lender	 	Domestic Lending Office	
           Eurodollar Lending Office
	 
	Bank One, N.A	 	
One Bank One Plaza
	 	One Bank One Plaza
	 	 	
Suite IL1-0636
	 	Suite IL1-0636
	 	 	
Chicago, IL 60670
	 	Chicago, IL 60670
	 	 	
Attn: Ronald J. Cromey
	 	Attn: Ronald J. Cromey
	 	 	
Tel: (312) 732-7494
	 	Tel: (312) 732-7494
	 	 	
Fax: (312) 732-4849
	 	Fax: (312) 732-4849
 
	The Bank of New York	 	
One Wall Street
	 	One Wall Street
	 	 	
New York, NY 10286
	 	New York, NY 10286
 
	Citibank, N.A	 	
Two Penns Way
	 	Two Penns Way
	 	 	
New Castle, DE 19720
	 	New Castle, DE 19720
	 	 	
Attn: Cristian Garcia
	 	Attn: Cristian Garcia
	 	 	
Tel: (302) 894-6054
	 	Tel: (302) 894-6054
	 	 	
Fax: (302) 894-6120
	 	Fax: (302) 894-6120
 
	JPMorgan Chase Bank	 	
4 Metrotech Center, 22nd Floor
	 	4 Metrotech Center, 22nd Floor
	 	 	
Brooklyn, NY 11245
	 	Brooklyn, NY 11245
	 	 	
Attn: Charles Swarns
	 	Attn: Charles Swarns
	 	 	
Tel: (718) 242-3792
	 	Tel: (718) 242-3792
	 	 	
Fax: (718) 242-3846
	 	Fax: (718) 242-3846
 
	Riggs Bank N.A	 	
5700 Rivertech Center
	 	5700 Rivertech Center
	 	 	
Riverdale, MD 20727
	 	Riverdale, MD 20727
	 	 	
Attn: Katie Alston
	 	Attn: Katie Alston
	 	 	
T: 301 887-8966
	 	T: 301 887-8966
	 	 	
F: 301 887-8010
	 	F: 301 887-8010
 
	SunTrust Bank	 	
1445 New York Avenue, NW
	 	1445 New York Avenue, NW
	 	 	
Washington, DC 20005
	 	Washington, DC 20005
	 	 	
Attn: Nancy Petrash
	 	Attn: Nancy Petrash
	 	 	
T: 202 879-6432
	 	T: 202 879-6432
	 	 	
F: 202 879-6137
	 	F: 202 879-6137
 
	Wachovia Bank, National	 	
1970 Chain Bridge Rd
	 	1970 Chain Bridge Rd
	Association	 	
3rd Floor VA 1993
	 	3rd Floor VA 1993
	 	 	
McLean, VA 22102
	 	McLean, VA 22102
	 	 	
Attn: Barbara Angel
	 	Attn: Barbara Angel
	 	 	
Tel: (703) 760-6369
	 	Tel: (703) 760-6369
	 	 	
Fax: (703) 760-6172
	 	Fax: (703) 760-6172

 

 

SCHEDULE 5.02(a)

EXISTING LIENS

[None]

 

 

EXHIBIT A-1 — FORM OF

REVOLVING CREDIT

PROMISSORY NOTE

	 	 	 	 	 
	U.S.$____________	 	
	 	Dated: __________, 200_
 

               FOR VALUE RECEIVED, the undersigned, THE WASHINGTON POST COMPANY, a
Delaware corporation (the “Borrower”), HEREBY PROMISES TO PAY to the order of
______________________ (the “Lender”) for the account of its Applicable
Lending Office on the Termination Date (as defined in the Credit Agreement
referred to below) the principal sum of U.S.$[amount of the Lender’s Commitment
in figures] or, if less, the aggregate principal amount of the Revolving Credit
Advances made by the Lender to the Borrower pursuant to the 5-Year Credit
Agreement dated as of August 14, 2002 among the Borrower, the Lender and
certain other lenders parties thereto, Citibank, N.A., as Agent for the Lender
and such other lenders (as amended or modified from time to time, the “Credit
Agreement”; the terms defined therein being used herein as therein defined),
outstanding on such date.

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

               Both principal and interest are payable in lawful money of the United
States of America to Citibank, N.A., as Agent, at 388 Greenwich Street, New
York, New York 10013, in same day funds. Each Revolving Credit Advance owing
to the Lender by the Borrower pursuant to the Credit Agreement, and all
payments made on account of principal thereof, shall be recorded by the Lender
and, prior to any transfer hereof, endorsed on the grid attached hereto which
is part of this Promissory Note.

 

 

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

	 	THE WASHINGTON POST COMPANY

	 	By __________________________

       Title:

2

 

ADVANCES AND PAYMENTS OF PRINCIPAL

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	Amount of	 	Unpaid	 	 
	 	 	 	Amount of	 	Principal Paid	 	Principal	 	 
	Date	 	 	Advance	 	or Prepaid	 	Balance	 	Notation Made By
	

	 
	

	 
	

	 
	

	 
	

	 
	

	 
	

	 
	

	 
	

	 
	

	 
	

	 
	

	 
	

	 
	

	 
	

	 
	

	 
	

	 
	

	 
	

	 
	

	 
	

	 
	

	 
	

	 
	

	 
	

	 
	

3

 

EXHIBIT A-2 — FORM OF

COMPETITIVE BID

PROMISSORY NOTE

	 	 	 	 	 
	U.S.$_______________	 	

	 	Dated: _____________, 200_

               FOR VALUE RECEIVED, the undersigned, THE WASHINGTON POST COMPANY, a
Delaware corporation (the “Borrower”), HEREBY PROMISES TO PAY to the order of
________________________ (the “Lender”) for the account of its Applicable
Lending Office (as defined in the 5-Year Credit Agreement dated as of August
14, 2002 among the Borrower, the Lender and certain other lenders parties
thereto, Citibank, N.A., as Agent for the Lender and such other lenders (as
amended or modified from time to time, the “Credit Agreement”; the terms
defined therein being used herein as therein defined)), on ___________________,
200_, the principal amount of U.S.$____________________.

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

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

               Both principal and interest are payable in lawful money of the United
States of America to Citibank, N.A. for the account of the Lender at the office
of Citibank, N.A., at 388 Greenwich Street, New York, New York 10013 in same
day funds.

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

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

 

 

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

	 	THE WASHINGTON POST COMPANY

	 	By ____________________________

       Title

2

 

EXHIBIT B-1 — FORM OF NOTICE OF

REVOLVING CREDIT BORROWING

Citibank, N.A., as Agent
  for
the Lenders parties
  to
the Credit Agreement
  referred
to below

Two Penns Way

New Castle, Delaware 19720
                 
                 
                 
 [Date]

     Attention: Cristian Garcia

Ladies and Gentlemen:

               The undersigned, The Washington Post Company, refers to the 5-Year Credit
Agreement, dated as of August 14, 2002 (as amended or modified from time to
time, the “Credit Agreement”, the terms defined therein being used herein as
therein defined), among the undersigned, certain Lenders parties thereto,
Citibank, N.A., as Agent for said Lenders, and hereby gives you notice,
irrevocably, pursuant to Section 2.02 of the Credit Agreement that the
undersigned hereby requests a Revolving Credit Borrowing under the Credit
Agreement, and in that connection sets forth below the information relating to
such Revolving Credit Borrowing (the “Proposed Revolving Credit Borrowing”) as
required by Section 2.02(a) of the Credit Agreement:

		
	 	     (i)     The Business Day of the Proposed Revolving Credit Borrowing is
____________, 200_.
	 
	 	     (ii)     The Type of Advances comprising the Proposed Revolving Credit
Borrowing is [Base Rate Advances] [Eurodollar Rate Advances].
	 
	 	     (iii)     The aggregate amount of the Proposed Revolving Credit
Borrowing is $_________.
	 
	 	     (iv)     [The initial Interest Period for each Eurodollar Rate Advance
made as part of the Proposed Revolving Credit Borrowing is _____
month[s].]

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

		
	 	     (A)     the representations and warranties contained in Section 4.01 of
the Credit Agreement are correct in all material respects, before and
after giving effect to the Proposed Revolving Credit Borrowing and to the
application of the proceeds therefrom, as though made on and as of such
date, except to the extent they expressly relate to an earlier date; and

 

 

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

	 	Very truly yours,

	 	THE WASHINGTON POST COMPANY

	 	By ______________________________

      Title:

2

 

EXHIBIT B-2 — FORM OF NOTICE OF

COMPETITIVE BID BORROWING

Citibank, N.A., as Agent
  for
the Lenders parties
  to
the Credit Agreement
  referred
to below

Two Penns Way

New Castle, Delaware 19720                                                                           [Date]

Attention: Cristian Garcia

Ladies and Gentlemen:

               The undersigned, The Washington Post Company, refers to the 5-Year Credit
Agreement, dated as of August 14, 2002 (as amended or modified from time to
time, the “Credit Agreement”, the terms defined therein being used herein as
therein defined), among the undersigned, certain Lenders parties thereto,
Citibank, N.A., as Agent for said Lenders, and hereby gives you notice,
irrevocably, pursuant to Section 2.03 of the Credit Agreement that the
undersigned hereby requests a Competitive Bid Borrowing under the Credit
Agreement, and in that connection sets forth the terms on which such
Competitive Bid Borrowing (the “Proposed Competitive Bid Borrowing”) is
requested to be made:

	 	 	 	 	 
	(A)	 	
Date of Competitive Bid Borrowing
	 	_________________________
	(B)	 	
Amount of Competitive Bid Borrowing
	 	_________________________
	(C)	 	
Interest Period
	 	_________________________
	(D)	 	
Interest Rate Basis
	 	_________________________
	(E)	 	
Interest Payment Date(s)
	 	_________________________
	(F)	 	
__________________________
	 	_________________________
	(G)	 	
__________________________
	 	_________________________
	(H)	 	
__________________________
	 	_________________________

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

		
	 	     (a)     the representations and warranties contained in Section 4.01 of
the Credit Agreement are correct in all material respects, before and
after giving effect to the Proposed Competitive Bid Borrowing and to the
application of the proceeds therefrom, as though made on and as of such
date, except to the extent they expressly relate to an earlier date;
	 
	 	     (b)     no event has occurred and is continuing, or would result from
the Proposed Competitive Bid Borrowing or from the application of the
proceeds therefrom, that constitutes a Default; and

 

 

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

               The undersigned hereby confirms that the Proposed Competitive Bid
Borrowing is to be made available to it in accordance with Section 2.03(a)(v)
of the Credit Agreement.

	 	Very truly yours,

	 	THE WASHINGTON POST COMPANY

	 	By __________________________

       Title:

2

 

EXHIBIT C — FORM OF

ASSIGNMENT AND ACCEPTANCE

               Reference is made to the 5-Year Credit Agreement dated as of August 14,
2002 (as amended or modified from time to time, the “Credit Agreement”) among
The Washington Post Company, a Delaware corporation (the “Borrower”), the
Lenders (as defined in the Credit Agreement), Citibank, N.A., as agent for the
Lenders (the “Agent”). Terms defined in the Credit Agreement are used herein
with the same meaning.

               The “Assignor” and the “Assignee” referred to on Schedule 1 hereto agree
as follows:

               1.     The Assignor hereby sells and assigns to the Assignee, and the Assignee
hereby purchases and assumes from the Assignor, an interest in and to the
Assignor’s rights and obligations under the Credit Agreement as of the date
hereof (other than in respect of Competitive Bid Advances and Competitive Bid
Notes) equal to the percentage interest specified on Schedule 1 hereto of all
outstanding rights and obligations under the Credit Agreement (other than in
respect of Competitive Bid Advances and Competitive Bid Notes). After giving
effect to such sale and assignment, the Assignee’s Commitment and the amount of
the Revolving Credit Advances owing to the Assignee will be as set forth on
Schedule 1 hereto.

               2.     The Assignor (i) represents and warrants that it is the legal and
beneficial owner of the interest being assigned by it hereunder and that such
interest is free and clear of any adverse claim; (ii) makes no representation
or warranty and assumes no responsibility with respect to any statements,
warranties or representations made in or in connection with the Credit
Agreement or the execution, legality, validity, enforceability, genuineness,
sufficiency or value of the Credit Agreement or any other instrument or
document furnished pursuant thereto; (iii) makes no representation or warranty
and assumes no responsibility with respect to the financial condition of the
Borrower or the performance or observance by the Borrower of any of its
obligations under the Credit Agreement or any other instrument or document
furnished pursuant thereto; and (iv) attaches the Revolving Credit Note held by
the Assignor and requests that the Agent exchange such Revolving Credit Note
for a new Revolving Credit Note payable to the order of the Assignee in an
amount equal to the Commitment assumed by the Assignee pursuant hereto or new
Revolving Credit Notes payable to the order of the Assignee in an amount equal
to the Commitment assumed by the Assignee pursuant hereto and the Assignor in
an amount equal to the Commitment retained by the Assignor under the Credit
Agreement, respectively, as specified on Schedule 1 hereto.

               3.     The Assignee (i) confirms that it has received a copy of the Credit
Agreement, together with copies of the financial statements referred to in
Section 4.01 thereof and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into this
Assignment and Acceptance; (ii) agrees that it will, independently and without
reliance upon the Agent, the Assignor or any other Lender and based on such
documents and information as it shall deem appropriate at the time, continue to
make its own credit decisions in taking or not taking action under the Credit
Agreement; (iii) confirms that it is an Eligible Assignee; (iv) appoints and
authorizes the Agent to take such action as agent

1

 

 on its behalf and to exercise such powers and discretion under the Credit
Agreement as are delegated to the Agent by the terms thereof, together with
such powers and discretion as are reasonably incidental thereto; (v) agrees
that it will perform in accordance with their terms all of the obligations that
by the terms of the Credit Agreement are required to be performed by it as a
Lender; and (vi) attaches any U.S. Internal Revenue Service forms required
under Section 2.14 of the Credit Agreement.

               4.     Following the execution of this Assignment and Acceptance, it will be
delivered to the Agent for acceptance and recording by the Agent. The
effective date for this Assignment and Acceptance (the “Effective Date”) shall
be the date of acceptance hereof by the Agent, unless otherwise specified on
Schedule 1 hereto.

               5.     Upon such acceptance and recording by the Agent, as of the Effective
Date, (i) the Assignee shall be a party to the Credit Agreement and, to the
extent provided in this Assignment and Acceptance, have the rights and
obligations of a Lender thereunder and (ii) the Assignor shall, to the extent
provided in this Assignment and Acceptance, relinquish its rights and be
released from its obligations under the Credit Agreement.

               6.     Upon such acceptance and recording by the Agent, from and after the
Effective Date, the Agent shall make all payments under the Credit Agreement
and the Revolving Credit Notes in respect of the interest assigned hereby
(including, without limitation, all payments of principal, interest and
facility fees with respect thereto) to the Assignee. The Assignor and Assignee
shall make all appropriate adjustments in payments under the Credit Agreement
and the Revolving Credit Notes for periods prior to the Effective Date directly
between themselves.

               7.     This Assignment and Acceptance shall be governed by, and construed in
accordance with, the laws of the State of New York.

               8.     This Assignment and Acceptance may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement. Delivery of an executed
counterpart of Schedule 1 to this Assignment and Acceptance by telecopier shall
be effective as delivery of a manually executed counterpart of this Assignment
and Acceptance.

               IN WITNESS WHEREOF, the Assignor and the Assignee have caused Schedule 1
to this Assignment and Acceptance to be executed by their officers thereunto
duly authorized as of the date specified thereon.

2

 

Schedule 1

to

Assignment and Acceptance

	 	 	 
	Percentage interest assigned:	 	
 _______%

	 
	Assignee’s Commitment:	 	
$__________
	 
	Aggregate outstanding principal amount of Revolving
     Credit
Advances assigned:	 	
$__________
	 
	Principal amount of Revolving Credit Note payable to Assignee:	 	
$__________
	 
	Principal amount of Revolving Credit Note payable to Assignor:	 	
$__________
	 
	Effective Date:*  _______________, 200_	 	 

	 	[NAME OF ASSIGNOR], as Assignor

	 	By_____________________________

       Title:

	 	Dated: _________________, 200__

	 	[NAME OF ASSIGNEE], as Assignee

	 	By_____________________________

       Title:

	 	Dated: _________________, 200__

	*	 	This date should be no earlier than five Business Days after the delivery of
this Assignment and Acceptance to the Agent.

3

 

	 	Domestic Lending Office:

[Address]

	 	Eurodollar Lending Office:

[Address]

Accepted and Approved this

_________ day of __________________, 200__

CITIBANK, N.A., as Agent

By ______________________

       Title:

Approved this __________  day

of _____________, 200__

THE WASHINGTON POST COMPANY

By ______________________

       Title:

4

 

EXHIBIT D — FORM OF

ASSUMPTION AGREEMENT

Dated: ________

The Washington Post Company

1150 15th Street, N.W.

Washington, D.C. 20071

Citibank, N.A., as Agent

Two Penns Way

New Castle, Delaware 19720

     Attention: Cristian Garcia

Ladies and Gentlemen:

               Reference is made to the 5-Year Credit Agreement dated as of August 14,
2002 among The Washington Post Company (the “Borrower”), the Lenders parties
thereto, Citibank, N.A., as Agent (the “Credit Agreement”; terms defined
therein being used herein as therein defined), for such Lenders.

               The undersigned (the “Assuming Lender”) proposes to become an Assuming
Lender pursuant to Section 2.05(b) of the Credit Agreement and, in that
connection, hereby agrees that it shall become a Lender for purposes of the
Credit Agreement on the applicable Increase Date and that its Commitment shall
as of such date be $_____________.

               The undersigned (i) confirms that it has received a copy of the Credit
Agreement, together with copies of the financial statements referred to in
Section 4.01(e) thereof, the most recent financial statements referred to in
Section 5.01(i) thereof and such other documents and information as it has
deemed appropriate to make its own credit analysis and decision to enter into
this Assumption Agreement; (ii) agrees that it will, independently and without
reliance upon the Agent or any other Lender and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking action under the Credit Agreement;
(iii) appoints and authorizes the Agent to take such action as agent on its
behalf and to exercise such powers under the Credit Agreement as are delegated
to the Agent by the terms thereof, together with such powers as are reasonably
incidental thereto; (iv) agrees that it will perform in accordance with their
terms all of the obligations which by the terms of the Credit Agreement are
required to be performed by it as a Lender; (v) confirms that it is an Eligible
Assignee; (vi) specifies as its Lending Office (and address for notices) the
offices set forth beneath its name on the signature pages hereof; and (vii)
attaches the forms prescribed by the Internal Revenue Service of the United
States required under Section 2.14 of the Credit Agreement.

               The Assuming Lender requests that the Borrower deliver to the Agent (to be
promptly delivered to the Assuming Lender) a Revolving Credit Note payable to
the order of the Assuming Lender, dated as of the applicable Increase Date and
substantially in the form of Exhibit A-1 to the Credit Agreement.

 

 

               The effective date for this Assumption Agreement shall be the applicable
Increase Date. Upon delivery of this Assumption Agreement to the Borrower and
the Agent, and satisfaction of all conditions imposed under Section 2.05(b) as
of [date specified above], the undersigned shall be a party to the Credit
Agreement and have the rights and obligations of a Lender thereunder. As of
[date specified above], the Agent shall make all payments under the Credit
Agreement in respect of the interest assumed hereby (including, without
limitation, all payments of principal, interest and commitment fees) to the
Assuming Lender.

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

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

	 	Very truly yours,

	 	[NAME OF ASSUMING LENDER]

	 	By __________________________

       Name:

       Title:

	 	Domestic Lending Office

(and address for notices):

	 	[Address]

	 	Eurodollar Lending Office:

	 	[Address]

2

 

Acknowledged and Agreed to:

THE WASHINGTON POST COMPANY

By ___________________________

       Name:

       Title

3

 

EXHIBIT E — FORM OF

OPINION OF COUNSEL

FOR THE BORROWER

August 14, 2002

To each of the Lenders parties

to the Credit Agreement dated

as of August 14, 2002 among

The Washington Post Company,

said Lenders, Citibank, N.A., as

Agent for said Lenders

The Washington Post Company

Ladies and Gentlemen:

               This opinion is furnished to you pursuant to Section 3.01(c)(iv) of the
5-Year Credit Agreement, dated as of August 14, 2002 (the “Credit Agreement”),
among The Washington Post Company (the “Borrower”), the Lenders parties
thereto, Citibank, N.A., as Agent for said Lenders. Terms defined in the
Credit Agreement are used herein as therein defined.

               I am the General Counsel of the Borrower and as such I am familiar with
the Credit Agreement and the corporate proceedings taken by the Borrower to
authorize the execution and delivery of the Credit Agreement.

               For purposes of this opinion, I have examined:

		
	 	     (1)     The Credit Agreement.
	 
	 	     (2)     The documents furnished by the Borrower pursuant to Section
3.01(c) of the Credit Agreement.
	 
	 	     (3)     The Certificate of Incorporation of the Borrower and all
amendments thereto (the “Charter”).
	 
	 	     (4)     The by-laws of the Borrower and all amendments thereto (the
“By-laws”).
	 
	 	     (5)     A certificate of the Secretary of State of Delaware, dated
August __, 2002, attesting to the continued corporate existence and good
standing of the Borrower in that State.

               In addition, I have examined the originals, or copies certified to my
satisfaction, of such other corporate records of the Borrower, certificates of
public officials and of officers of the Borrower, and agreements, instruments
and other documents, as I have deemed necessary as a basis for the opinions
expressed below. As to questions of fact material to such opinions, I have,
when relevant facts were not independently established by me, relied upon
certificates of

 

 

 the Borrower or its officers or of public officials. I have assumed the
due execution and delivery, pursuant to due authorization, of the Credit
Agreement by the Initial Lenders and the Agent.

               My opinions expressed below are limited to the law of the State of New
York, the General Corporation Law of the State of Delaware and the Federal law
of the United States of America.

               Based upon the foregoing and upon such investigation as I have deemed
necessary, I am of the following opinion:

		
	 	     1.     The Borrower is a corporation validly existing and in good
standing under the laws of the State of Delaware.
	 
	 	     2.     The execution, delivery and performance by the Borrower of the
Credit Agreement and the Notes, and the consummation of the transactions
contemplated thereby, are within the Borrower’s corporate powers, and
have been duly authorized by all necessary corporate action, and do not
contravene (i) the Charter or the By-laws or (ii) any law, rule or
regulation applicable to the Borrower (including, without limitation,
Regulation X of the Board of Governors of the Federal Reserve System) or
(iii) to the best of my knowledge after appropriate inquiry, (x) any
contractual restriction or (y) any legal restriction contained in orders,
writs, judgments, awards, injunctions or decrees applicable to the
Borrower or its assets, in each case that affects or purports to affect
the Borrower’s right to borrow money or the Borrower’s obligations under
the Credit Agreement or Notes. The Credit Agreement and the Notes
delivered on the date hereof have been duly executed and delivered on
behalf of the Borrower.
	 
	 	     3.     No authorization, approval or other action by, and no notice to
or filing with, any United States Federal, New York or, to the extent
required under the General Corporation Law of the State of Delaware,
Delaware governmental authority or regulatory body is required for the
due execution, delivery and performance by the Borrower of the Credit
Agreement and the Notes.
	 
	 	     4.     The Credit Agreement is, and when executed and delivered in
connection with Borrowings, the Notes will be, legal, valid and binding
obligations of the Borrower enforceable against the Borrower in
accordance with their respective terms.
	 
	 	     5.     To the best of my knowledge after appropriate inquiry, there are
no pending or overtly threatened actions or proceedings against the
Borrower or any of its Subsidiaries before any court, governmental agency
or arbitrator that purport to affect the legality, validity, binding
effect or enforceability of the Credit Agreement or any of the Notes or
the consummation of the transactions contemplated thereby or that are
likely to have a materially adverse effect upon the financial condition
or operations of the Borrower and its Subsidiaries taken as a whole.

The opinions set forth above are subject to the following qualifications:

2

 

		
	 	     (a)     My opinion in paragraph 4 above as to enforceability is subject
to the effect of any applicable bankruptcy, insolvency (including,
without limitation, all laws relating to fraudulent transfers),
reorganization, moratorium or similar law affecting creditors’ rights
generally.
	 
	 	     (b)     My opinion in paragraph 4 above as to enforceability is subject
to the effect of general principles of equity, including, without
limitation, concepts of materiality, reasonableness, good faith and fair
dealing (regardless of whether considered in a proceeding in equity or at
law).
	 
	 	     (c)     Insofar as provisions contained in the Credit Agreement provide
for indemnification, the enforceability thereof may be limited by public
policy considerations.
	 
	 	     (d)     I express no opinion as to (i) Section 2.15 of the Credit
Agreement insofar as it provides that any Lender purchasing a
participation from another Lender pursuant thereto may exercise set-off
of similar rights with respect to such participation and (ii) the effect
of the law of any jurisdiction other than the State of New York wherein
any Lender may be located or wherein enforcement of the Credit Agreement
or the Notes may be sought that limits the rates of interest legally
chargeable or collectible.

Very truly yours,

3

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