Document:

exv10w1

 

Exhibit 10.01

MANAGEMENT SERVICES AGREEMENT

This MANAGEMENT SERVICES AGREEMENT (“Agreement") is dated as of May 27, 2004,
between RESOLUTION PERFORMANCE PRODUCTS LLC, a Delaware limited liability
company (“RPP”), and RESOLUTION SPECIALTY MATERIALS INC., a Delaware
corporation (“RSM”). RPP and RSM may each be referred to herein individually
as a “Party” and together as the “Parties.” As used herein, RSM shall include
RSM’s affiliated companies receiving Services pursuant to this Agreement, and
RPP shall include RPP’s affiliated companies providing Services pursuant to
this Agreement.

WHEREAS, Eastman Chemical Company, a Delaware corporation (“Eastman”), and RSM
have entered into (i) that certain Acquisition Agreement dated the date hereof
(the “Acquisition Agreement”), pursuant to which certain assets related to
Eastman’s Resins, Inks, and Monomers business will be sold to RSM (the
"Acquired Business”), and (ii) that certain Transition Services Agreement dated
the date hereof (the “Transition Services Agreement”), pursuant to which
Eastman is to provide certain services in support of the Acquired Business to
RSM;

WHEREAS, RSM desires that RPP (i) provide RSM with certain services in support
of the Acquired Business and (ii) assist RSM in the monitoring and utilization
of the services being provided to RSM under the Transition Services Agreement,
and RPP desires to provide such services for the time periods set forth herein;
and

WHEREAS, the Parties desire this Agreement to become automatically effective
concurrently with the Closing (as such term is defined in the Acquisition
Agreement) (the “Effective Date”).

IT IS HEREBY AGREED:

ARTICLE 1. SERVICES AND SCOPE OF SERVICES

          1.1 During the Term (as defined in Article 2.1 below), RSM hereby engages
RPP to provide, and RPP hereby agrees to provide or cause to be provided to RSM
for the Acquired Business, services in the categories identified in Exhibit A
hereof (as from time to time added to or deleted therefrom pursuant to this
Agreement, collectively referred to hereinafter as the “Services”) as
determined by the Steering Committee in accordance with Article 1.9 below.
Except with respect to those Services that are currently outsourced by RPP, RPP
shall provide the Services by and through RPP employees.

          1.2 With respect to Services that are currently outsourced by RPP to third
parties, RPP shall use commercially reasonable efforts to cause such third
parties to provide Services to the Acquired Business, but in each case, only in
accordance with the terms and conditions of this Agreement. In the event RPP
is not able to secure the agreement of any third parties to provide Services to
the Acquired Business, the Parties will mutually cooperate to try to obtain
similar services from another source.

          1.3 The Parties shall use commercially reasonable efforts to obtain all
third party consents necessary to provide and receive the Services.
Notwithstanding the foregoing, RPP shall not be obligated to provide any
Service for which such consents have not been obtained or have been refused,
and may (so long as commercially reasonable efforts were used in accordance
herewith) without liability, suspend and/or terminate the provision of any
Service with immediate effect in the event of any claim that the provision of
such Service requires the consent of a third party. In the event any third
party consent cannot reasonably be obtained, the Parties agree to cooperate in
any appropriate and economically feasible arrangement (a “Work-around") to
provide RPP or RSM, as applicable, with the other Party’s interest in the
benefit under the contract, agreement or permit to which such unobtainable
third party consent relates. This Agreement shall not constitute an agreement
or attempted agreement to transfer, sublease or assign any contract or
agreement, or any proceeding or right with respect to any benefit arising
thereunder or resulting therefrom, or any permit, if an attempted transfer,
sublease or assignment thereof, without the required consent of any other party
thereto, would constitute a breach thereof or in any way affect the rights of
either Party thereunder. RSM shall be liable for all costs and expenses
associated with obtaining any third party consent or arranging any Work-around
in connection with RPP providing or RSM receiving the Services.

          1.4 RPP (or outsourced provider) shall provide or cause to be provided the
personnel, facilities, equipment, systems and management reasonably required to
perform the Services and unless otherwise

 

 

specified on any Exhibit hereto or as determined by the Steering
Committee, RPP (or outsourced provider) shall provide the Services with at
least the same standard of care that RPP provides its own businesses.

          1.5 Neither RPP nor or any of its affiliated companies will be required to
stay in business, replace employees who voluntarily terminate their employment
with RPP or the provider of the Services or take other measures (including any
measures which would cause a default or require a waiver of the documents
evidencing indebtedness of RPP or its subsidiaries) solely to provide the
Services to RSM for the Acquired Business. Notwithstanding the foregoing,
without the prior written consent of RSM, (a) RPP shall not be entitled to
terminate a Service to RSM if RPP otherwise provides a comparable service to
one or more businesses of RPP that would not be terminated, and (b) in the
event a Service is reduced, such reduction shall not disproportionately affect
the Service provided to RSM as compared to a similar service otherwise provided
to RPP.

          1.6 In the event RPP terminates or reduces a Service, RSM shall have the
right to immediately terminate its further obligations with regard to such
Service or related component Services without cost or penalty to RSM.

          1.7 RSM shall at its own expense cooperate fully with RPP by promptly
providing reasonable assistance, resources and access (including, without
limitation, the provision of access to its personnel, computer systems, data,
equipment and other information) to enable RPP to provide the Services.

          1.8 Special Services and Projects. During the Term, RSM may from time to
time request that RPP provide special services or projects in addition to the
Services, and RPP shall make commercially reasonable efforts to provide such
additional services or projects. If RPP agrees to provide such additional
services or projects, the Parties shall negotiate in good faith to establish
the terms (including, without limitation, price) for providing such additional
services or projects and, following agreement on such terms, the Exhibits and
Annexes hereto shall be amended to include such additions. If RPP is unable to
provide such additional services or projects, RPP will promptly inform RSM and
shall use commercially reasonable efforts to work with RSM in finding an
equivalent replacement for such services or project.

          1.9 Steering Committee. In order to monitor, coordinate and facilitate
implementation of the terms and conditions of this Agreement, the Parties shall
establish a “Steering Committee” consisting of at least one (1) representative
from each Party and whereby each Party is equally represented. The initial
Steering Committee representatives shall be Jeff Nodland for RSM and Mark
Antonvich for RPP. The initial Steering Committee representatives shall not be
changed by either Party on less than thirty (30) days’ prior written notice to
the other Party. The Steering Committee representatives shall meet at least
monthly (or more frequently if needed or reasonably requested by a
representative) during the Term to determine the Services to be provided. Such
determination shall include the scope, manner, level, and place or places where
such Services shall be provided. The Steering Committee representative for
each Party shall stay reasonably apprised of the activities of the employees,
agents and contractors of such Party who are providing or receiving the
Services in order to maximize efficiency in the provision and receipt of the
Services.

ARTICLE 2. TERM AND TERMINATION

          2.1 Term. This Agreement shall be effective as of the Effective Date, and
shall continue for a three-year period and shall be automatically renewed for
one-year periods thereafter unless written notice is given by either Party to
the other of its intent not to renew the Agreement at least ninety (90) days
prior to the end of such period (the “Term”), or unless earlier terminated
pursuant to Article 2.2, below. The provision of financial Services shall
survive expiration of the Term as required to enable provision of information
for applicable financial reporting purposes.

          2.2 Termination.

(a) Except as otherwise provided herein, RSM may terminate this
Agreement or one or more of the Services in whole or in part by
geographic region as of the end of any calendar month upon at least
thirty (30) days advance written notice to RPP. Upon termination
of this Agreement, or

 

 

upon termination of one or more of the Services provided pursuant
to this Agreement, RPP shall cease and shall cause its affiliates
to cease providing the terminated Service(s). RSM’s obligation to
pay monies owed to RPP for Services provided prior to the effective
date of such termination notice(s) shall survive the termination or
expiration of this Agreement.

(b) RPP may terminate this Agreement immediately upon a Change in
Control of RSM. As used herein, a “Change in Control” means any of
(i) a sale (in one or a series of related transactions) of all or
substantially all of RSM’s assets, (ii) the sale or transfer (in
one or a series of related transactions) of a majority of the
outstanding equity securities of RSM, or (iii) the merger or
consolidation of RSM with or into another entity that is not an
affiliate of RSM, in each case in clauses (ii) and (iii) above
under circumstances in which the holders of a majority in voting
power of the outstanding equity securities of RSM, immediately
prior to such transaction, own less than a majority in voting power
of the outstanding equity securities of RSM, or voting equity
securities of the surviving or resulting corporation or acquirer,
as the case may be, immediately following such transaction.

(c) Notwithstanding anything to the contrary contained herein, if
either Party fails to fulfill any of its material obligations
hereunder (including without limitation the failure to pay any
amounts due), unless such failure is otherwise excused by or
subject to other provisions of this Agreement, the other Party may
give notice to the defaulting Party of such default. If the
defaulting Party does not cure the default within fifteen (15) days
of the date of this notice, or if the default is curable but the
default is of such a nature that it cannot be cured within fifteen
(15) days, and the defaulting Party has not taken reasonable steps
to commence to cure the default (or does not proceed with due
diligence to complete the cure), the Party not in default, upon
written notice, may terminate its further obligations hereunder
directly related to the subject matter of the default effective on
the expiration of such fifteen (15) day period; provided, however,
that if the Party claimed to be in default disputes such claim, the
dispute resolution procedures contained herein shall apply.

(d) In the event that RSM terminates any or all Services hereunder
or elects not to renew this Agreement, RSM agrees to pay all out of
pocket costs incurred by RPP in connection with such termination or
non-renewal including, without limitation, employee severance and
termination costs to third party service providers.

ARTICLE 3. SERVICES FEE

          3.1 RSM agrees to pay to RPP on a monthly basis during the Term, in
consideration for the Services rendered to RSM and the Acquired Business as
provided, the fees set forth below (“Service Fees”):

(a) 33 1/3% of the total salary, bonus, travel reimbursement,
benefits and other costs payable by RPP to its Chief Financial
Officer, General Counsel, Vice President of Human Resources, Chief
Information Officer, Chief Administrative Officer – Europe and Vice
President of Environmental, Health & Safety.

(b) An amount equal to any incremental increase in costs incurred
by RPP in connection with the provision of Services hereunder
(including without limitation costs incurred by RPP in connection
with increasing or modifying its infrastructure and support
services or hiring additional personnel) multiplied by 1.075.

(c) An amount equal to all out of pocket expenses incurred by RPP
in providing the Services; provided, however, that RPP agrees to
use commercially reasonable efforts to have such out of pocket
expenses billed directly to RSM.

          Annex I hereto contains the initial annual estimated costs by category for
Services to be provided hereunder. To the extent that during the Term the
Parties mutually agree to modify, amend, delete or add to the

 

 

Services, the
Parties shall cooperate to determine in good faith an equitable adjustment to
the Service Fees. Notwithstanding the foregoing, the Parties agree that the Service Fees set
forth in Article 3.1(a) above may only be changed on January 1 of each year.

          3.2 In addition to the foregoing, RSM agrees to grant to RPP options to
purchase common stock of RSM’s corporate parent (“RSM Parent”) which will be
transferred to the management, employees or independent contractors of RPP who
are involved in the provision or oversight of Services hereunder as determined
by RPP. Such options shall (i) be granted in accordance with the applicable
stock incentive plan of RSM Parent as in place at the time of such grant
pursuant to which RSM grants options, securities or other arrangements to its
employees generally, (ii) be exercisable at a price that is equal to the fair
market value of such common stock on the date of such grant, and (iii)
represent 2% of the outstanding common stock of RSM Parent on the date of such
grant.

          3.3 If either Party believes that there has been a material change in the
quantity or quality of Services being delivered, they may request a review by
the Steering Committee of the monthly Service Fee to revise Article 3.1 and/or
Annex I in accordance with such change.

ARTICLE 4. BILLING AND PAYMENT

          4.1 Each month, RPP shall submit to RSM for payment an invoice reasonably
detailing the amounts due under this Agreement for the immediately preceding
month. Such invoice shall be payable by RSM within thirty (30) days from the
date of such invoice unless RSM contests in good faith the amounts set forth in
such invoice by giving written notice to RPP of such dispute within the payment
period, in which case RSM shall pay all amounts not in dispute within such 30
day period.

          4.2 Within fifteen (15) days of the end of any month, RSM may request that
RPP provide to RSM an accounting of all Service Fees, all collections, receipts
and other remittances to RPP on account of the Services, and all expenses for
the Services paid by RPP on behalf of RSM, in each case since the last
accounting in accordance with this Article, if any. In the event that the
results of any review conducted in accordance with this Article 4.2 indicates
an underpayment by RSM or an overpayment to RPP, such Party will, within ten
(10) days after completion of such review, reimburse the other Party for the
full amount of any such underpayment or overpayment (without interest).

          4.3 RPP’s preparation of Acquired Business financial reports along with
other detailed closing schedules and reports, cash flow, net amounts due RPP,
net amounts due RSM, and other information relating thereto may be reviewed by
RSM from time to time for consistency and accuracy during normal business hours
at RSM’s cost by RSM or by an independent certified public accounting firm
selected by RSM and reasonably acceptable to RPP; provided any such accounting
firm reviewing the books and records subject to a review shall enter into a
confidentiality agreement with RPP.

          4.4 Any audit dispute between the Parties will be conclusively determined
by an internationally recognized firm of certified public accountants mutually
acceptable to the parties, and such determination will be final and binding
upon the parties. Each Party will pay fifty-percent (50%) of the costs of any
such firm associated with the audit dispute.

          4.5 Notwithstanding the expiration or earlier termination of this
Agreement, the Parties’ obligations to each other under this Article 4
regarding events or obligations occurring or arising during the Term shall
survive such expiration or earlier termination until fulfilled.

ARTICLE 5. RIGHT OF FIRST NEGOTIATION

Before entering into an agreement which may result in a Change in Control, RSM
agrees to discuss the terms of such transaction with RPP and, should it decide
to enter into such agreement, provide RPP with twenty (20) days prior written
notice.

 

 

ARTICLE 6. NOTICES

     Any notice, request, instruction or other document to be given hereunder
by any Party to any other Party shall be in writing and delivered personally,
by facsimile (with electronic confirmation of receipt and with a confirmed copy
sent by first class mail or by overnight courier), or sent by registered or
certified mail, postage prepaid, or sent by a recognized overnight courier
(e.g., Federal Express, Airborne or UPS) (a “Notice”) as follows:

If to RPP to:

      Resolution Performance Products LLC

      1600 Smith Street, 24th Floor
      Houston,
Texas 77002
      Attn:
President
      Fax:
(832) 366-2584

      with a copy to:

      Apollo Management, L.P.
      
1301 Avenue of the Americas
      
New York, NY 10019
      
Attention: Mr. Scott Kleinman
      
Facsimile: (212) 515-3288

If to RSM to:

      
Resolution Specialty Materials Inc.
      
c/o Apollo Management, L.P.
      
1301 Avenue of the Americas
      
New York, NY 10019
      
Attention: Mr. Scott Kleinman
      
Facsimile: (212) 515-3288

      with a copy to:

      Resolution Specialty Materials Inc.
      
c/o Resolution Performance Products LLC
      
1600 Smith Street, 24th Floor
      
Houston, Texas 77002
      
Attn: President
      
Fax: (832) 366-2584

or to such other address or to such other person for a Party as shall be
specified by like Notice. Any Notice which is delivered in the manner provided
herein shall be deemed to have been duly given to the Party to whom it is
directed upon actual receipt by such Party.

ARTICLE 7. DELEGATION AND ASSIGNMENT

Neither Party may assign or delegate any of its rights, interests, liabilities
or obligations under this Agreement without the prior written consent of the
other Party except that either Party may assign and/or charge all or any of its
rights under this Agreement by way of security to any bank(s) and/or holders of
any debt securities and/or financial institution(s) and/or hedge counterparties
and/or any other person (together, the “Financiers”) lending money or making
other banking facilities available to such Party or to any Financiers who
provide funds on or in connection with any subsequent refinancing of any such
funding or to any person from time to time appointed by any Financier to act as
a security trustee on behalf of such Financier; without limitation to the
foregoing, any such person or Financier may assign such rights on any
enforcement of the security under such finance arrangement; provided further,
however, that no assignment under this Article 7 shall relieve a Party of its
obligations hereunder. Notwithstanding the foregoing, the Parties agree and
acknowledge that certain of RPP’s affiliated companies may be providing
Services hereunder and certain of RSM’s affiliated companies may be receiving
Services hereunder, and each Party consents to the foregoing and agrees that
such affiliated companies shall have the right to provide or receive Services,
as

 

 

applicable. Subject to the foregoing, this Agreement shall inure to the benefit of and be binding upon
the respective successors and permitted assigns of the Parties.

ARTICLE 8. LIMITED WARRANTY

In performing the Services, RPP shall employ methods, procedures and utilities
of a quality at least equal to those employed by it with respect to its own
business and affairs. Except as otherwise provided in this Agreement, RPP
EXPRESSLY DISCLAIMS (i) ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING
WITHOUT LIMITATION, THOSE OF MERCHANTABILITY, WORKMANSHIP, DESIGN, FITNESS FOR
A PARTICULAR PURPOSE AND INFRINGEMENT; AND (ii) THAT THE SERVICES PROVIDED
HEREUNDER WILL YIELD ANY GIVEN OR STATED ECONOMIC, FINANCIAL, PROFIT OR
BUSINESS RESULT TO RSM OR WILL RESULT IN RSM HAVING ANY GIVEN STANDING OR
POSITION IN ANY BUSINESS, MARKET OR PRODUCT. NEITHER PARTY SHALL HAVE LIABILITY
TO THE OTHER FOR ANY PUNITIVE DAMAGES OF ANY TYPE OR KIND.
BOOKS AND RECORDS

          8.1 RPP shall keep, and make available to RSM and its representatives,
complete and accurate records and accounts, in accordance with RPP’s normal
practices, of all material transactions pertaining to the Services, and shall
preserve them for the longer of (a) a period of two (2) years following the end
of the fiscal year to which they pertain, (b) the period consistent with RPP’s
retention policies or (c) upon prior written notice by RSM to RPP, such period
indicated in such notice as may be necessary to enable RSM to comply with
provisions of applicable law. After the expiration of such period referred to
in this Article 9.1, RPP shall have no further duty to retain any of such books
and records or to notify RSM before the disposition or destruction thereof.
RSM may review these books and records upon reasonable advance notice during
normal business hours.

          8.2 RPP shall provide a list of any such books and records which have
become eligible for destruction to RSM for review before disposal takes place.
RSM shall provide the name of the reviewing party to RPP and reviews shall
occur and be completed within sixty (60) days of presenting the list of records
eligible for destruction. If RSM does not respond to RPP within 60 days, such
books and records may be destroyed or shipped to RSM for disposition.

          8.3 Notwithstanding the expiration or earlier termination of this
Agreement, the Parties’ obligations to each other under this Article 9
regarding events or obligations occurring or arising during the Term shall
survive such expiration or earlier termination until fulfilled.

ARTICLE 9. CONFIDENTIAL INFORMATION

          9.1 For purposes hereof, “Confidential Information” means any and all
information of either Party that might reasonably be considered confidential,
secret, sensitive, proprietary or private.” To the extent practicable,
Confidential Information shall be marked “proprietary” or “confidential.”
Confidential Information shall include the following:

(a) data, know-how, formulae, processes, designs, sketches,
photographs, plans, drawings, specifications, samples, reports,
lists, financial information, studies, findings, inventions and
ideas, or proprietary information specifically relating to either
Party or the methods or techniques used by either Party;

(b) data, documents or proprietary information employed in
connection with the marketing and implementation of each Party’s
products, including cost information, business policies and
procedures, revenues and markets, distributor and customer lists,
and similar items of information;

(c) any other data or information obtained by either Party during
the Term which is not generally known to and not readily
ascertainable by proper means by third persons who could obtain
economic value from its use or disclosure;

 

 

(d) as to RSM’s confidentiality obligations hereunder, any data
obtained from the use of RPP’s computer systems by RSM’s employees
or agents, except data pertaining solely to the Acquired Business;
and

(e) as to RPP’s confidentiality obligations hereunder, any data,
information, or documents pertaining to the Acquired Business.

          9.2 The receiving Party shall treat as confidential all Confidential
Information of the other Party, or of any subsidiaries or affiliates of such
other Party, that comes to the receiving Party’s knowledge through this
Agreement. The receiving Party shall take such steps to prevent disclosure of
such Confidential Information to any third person as it would take in
protecting its own proprietary or confidential information, and shall not use
any portion of such Confidential Information for any purpose not authorized
herein; it being understood and agreed that RPP may use RSM’s Confidential
Information in furtherance of providing the Services to RSM.

          9.3 No person receiving Confidential Information shall be under any
obligations with respect to any Confidential Information:

(a) which is, at the time of disclosure, available to the general
public;

(b) which becomes at a later date available to the general public
through no fault on its part and then only after said later date;

(c) which it can demonstrate was in its possession before receipt
from the disclosing party;

(d) which is disclosed to it without restriction on disclosure by a
third party who has the lawful right to disclose such information;

(e) which it can demonstrate was independently developed by it; or

(f) after five (5) years from the date of disclosure.

          9.4 Either Party may disclose information of the other Party which would
otherwise be confidential if and to the extent:

(a) required by any securities exchange or agency to which either
Party is subject, wherever situated, whether or not the requirement
has the force of law;

(b) disclosed by such Party on a strictly confidential basis to the
professional advisers, auditors or other representatives of the
Party or to any actual or potential bankers or financiers of that
Party;

(c) disclosed by such Party on a strictly confidential basis to
other members of RPP’s affiliated companies or RSM’s affiliated
companies;

(d) disclosed by such Party on a strictly confidential basis to the
corporate shareholders or other equity owners of the Parties;

(e) that the information is lawfully known to the Party (without
binder of secrecy) at the time of disclosure;

(f) that the other Party has given prior written approval to such
disclosure;

 

 

(g) disclosed by such Party to the extent necessary to seek
enforcement of, or to defend, the contractual rights or obligations
of such Party under this Agreement or to satisfy an obligation or
duty under this Agreement; or

(h) disclosed by such Party on a confidential basis to bona fide
potential or actual purchasers of a proprietary interest in or
potential or actual operators of the Acquired Business or
particular assets of the Acquired Business.

          9.5 In the event that any Party is requested or required (by oral
questions, interrogatories, requests for information or documents, or other
similar process utilized in connection with legal proceedings, or in connection
with compliance with a subpoena, civil investigative demand or other similar
process) to disclose any such Confidential Information, such Party shall
provide the other Party with prompt written notice of any such requests or
requirement so that the other Party may seek a protective order or other
appropriate remedy and/or waive compliance with the provisions of Article 10 of
this Agreement.

          9.6 In order to protect the interests of both Parties with respect to
Confidential Information contained within the information technology systems
(both hardware and software) which will be utilized by the Parties during the
Term, both Parties shall use reasonable best efforts to implement and effect
security procedures intended to protect such Confidential Information.

          9.7 SUBJECT TO ARTICLES 10.3 AND 10.4 ABOVE, THE CONFIDENTIALITY AND
NONDISCLOSURE OBLIGATIONS OF THIS ARTICLE SHALL SURVIVE THE EXPIRATION OR
TERMINATION OF THIS AGREEMENT.

ARTICLE 10. INDEPENDENT CONTRACTOR

RPP is and shall remain at all times an independent contractor of RSM in the
performance of all Services hereunder; and all persons employed by RPP or under
contract or agreement with RPP to perform such Services shall be and remain
employees or contractors solely of RPP and subject only to the supervision and
control of RPP supervisory personnel.

ARTICLE 11. COMPLIANCE WITH LAWS AND REGULATIONS

          11.1 Each Party shall give all notices and obtain all licenses and permits
required by applicable laws, rules, ordinances, codes or regulations and shall
comply with all applicable laws, rules, ordinances, codes and regulations of
any governmental entity or regulatory agency governing the Services to be
provided hereunder.

          11.2 If it is found that a service or report results in either Party being
given notice that it is in violation of a law or regulation by a third-party
regulatory or governmental agency, the Parties will mutually cooperate to
provide the service in a way that is not in violation. Failing such best
efforts, either Party may cancel such service.

ARTICLE 12. INDEMNITY AND LIMITED LIABILITY

          12.1 For purposes of Articles 13, 15 and 19 of this Agreement, the
following defined terms shall apply:

   “DOEA” means the directors, officers, employees and agents of the relevant
entity (in their capacities as such).

   “Liabilities” means any and all indebtedness, liabilities and obligations,
whether accrued or fixed, determined or determinable.

   “Losses” means any and all claims, judgments, causes of action,
Liabilities, damages, losses, deficiencies, costs, penalties, interest and
expenses (including the reasonable fees and expenses of counsel).

          12.2 In no event shall any Party, its DOEA, its affiliates and/or their
respective DOEA be liable for damages for “lost profits” or loss of business
opportunity, or consequential, special, punitive or exempting

 

 

Losses under or
in connection with this Agreement. RPP’s maximum liability in the event of any
and all breaches of this Agreement and for any and all Losses and Liabilities
shall be limited to a payment equal to the Service Fees.

          12.3 RSM agrees to release, discharge, defend, indemnify, save and hold
harmless RPP, its DOEA, its controlled affiliates and their respective DOEA,
from and against any and all Liabilities and Losses to the extent arising out of any negligence or willful misconduct of RSM, its
DOEA, its controlled affiliates and their respective DOEA, and any and all
Liabilities and Losses arising from or related to the performance of this
Agreement by RSM and RPP, except to the extent caused by the grossly negligent
act or omission or willful misconduct of RPP, its DOEA, its affiliates or their
respective DOEA. Subject to the limitations set forth in Article 13.2, RPP
agrees to release, discharge, defend, indemnify, save and hold harmless RSM,
its DOEA, its controlled affiliates and their respective DOEA, from and against
any and all Liabilities and Losses arising out of any gross negligence or
willful misconduct of RPP, its DOEA, its controlled affiliates and their
respective DOEA, arising from or related to the performance of this Agreement
by RPP.

          12.4 Any claim for indemnification or defense under this Agreement shall
be made in accordance with the procedures set forth in Article 15 of this
Agreement. This provision will survive any expiration or termination of this
Agreement.

ARTICLE 13. FORCE MAJEURE

          13.1 Neither Party shall be liable to the other Party for any loss, cost
or damage for delay or non-performance of any of its obligations hereunder
resulting from any requirement or intervention of civil or military authorities
or other agencies of the government, or by reason of any other causes
whatsoever not reasonably within the control of such Party, including, but not
limited to, acts of God, war, riot, insurrection, civil violence or
disobedience, blockages, embargoes, sabotage, epidemics, fire, strikes,
lock-outs or other industrial or labor disturbances occurring with respect to
those sites for which the Services are being provided hereunder, lightning,
hurricanes, explosions and delay of carriers (all of the foregoing referred to
hereinafter as a “Force Majeure”). Upon the occurrence of a Force Majeure, the
Party whose performance is so prevented (the “Declaring Party”) shall notify
the other Party promptly of the cause of the Force Majeure, and the estimated
time that such Force Majeure shall continue. The Declaring Party shall
thereafter use its reasonable efforts to overcome the Force Majeure; provided,
however, that the settlement of strikes, lock-outs and other industrial or
labor disturbances shall be entirely within the discretion of the Declaring
Party, and the Declaring Party shall not be required to make settlement of
strikes, lock-outs and other industrial or labor disturbances by acceding to
the demands of any opposing third party or parties when such course is
unfavorable in the Declaring Party’s judgment. RSM shall not be required to
pay for any disrupted Services during the period in which they are not being
provided to RSM. RPP agrees that if it experiences any shortage, interruption,
delay, inadequacy or limitation in the availability of any of the Services (by
reason of Force Majeure or otherwise) and is unable to fulfill RSM’s
requirements for those Services, RPP shall ensure that RSM is treated no less
favorably than any business of RPP in the allocation by RPP between such
businesses and RSM of such affected Services.

          13.2 If RPP’s performance under this Agreement is suspended or rendered
impractical by reason of Force Majeure for a period in excess of thirty (30)
days during the Term, RSM shall have the right to terminate this Agreement with
respect to the disrupted Services immediately upon written notice to RPP. An
event of Force Majeure shall not operate to extend the Term or to limit amounts
payable for Services rendered on or prior to the actual date of the event of
Force Majeure.

ARTICLE 14. DISPUTES

          14.1 Resolution Procedure. Each Party agrees to use its reasonable best
efforts to resolve disputes under this Agreement by a negotiated resolution
between the Parties or as provided for in this Article 15.

          14.2 Exchange Of Written Statements. In the event of a dispute under this
Agreement, either Party may give a notice to the other Party requesting that
the Steering Committee in good faith try to resolve (but without any obligation
to resolve) such dispute. Not later than fifteen (15) days after said notice,
each Party shall submit to the other Party a written statement setting forth
such Party’s description of the dispute and of the respective

 

 

positions of the
Parties on such dispute and such Party’s recommended resolution and the reasons
why such Party feels its recommended resolution is fair and equitable in light
of the terms and spirit of this Agreement. Such statements represent part of a
good-faith effort to resolve a dispute and as such, no statements prepared by a
Party pursuant to this Article 15 may be introduced as evidence or used as an
admission against interest in any arbitral or judicial resolution of such
dispute.

          14.3 Good Faith Negotiations. If the dispute continues unresolved for a
period of seven (7) days (or such longer period as the Steering Committee may
otherwise agree upon) after the simultaneous exchange of such written
statements, then the Steering Committee shall promptly commence good-faith
negotiations to resolve such dispute but without any obligation to resolve it.
The initial negotiating meeting may be conducted by teleconference.

          14.4 Determination Of Steering Committee. Not later than thirty (30) days
after the commencement of good-faith negotiations: (i) if the Steering
Committee renders an agreed resolution on the matter in dispute, then both
Parties shall be bound thereby; and (ii) if the Steering Committee does not
render an agreed resolution, then either Party may submit the dispute to
arbitration in accordance with Article 15.5 hereof.

          14.5 Arbitration. A matter in dispute hereunder submitted for resolution
by arbitration shall be arbitrated in accordance with the then existing
commercial arbitration rules of the American Arbitration Association, and
judgment upon the award rendered by the arbitrator(s) may be entered in any
court having jurisdiction thereof, subject to (a) through (h) below.

(a) Upon the request of either Party, the Arbitration shall be
conducted under the expedited rules of the American Arbitration
Association for commercial arbitrations.

(b) In the case the amount of any matter in dispute is less than or
equal to $250,000, the number of arbitrators shall be one (1)
independent arbitrator appointed by the American Arbitration
Association.

(c) In the case the amount of any matter in dispute is greater than
$250,000, the number of arbitrators shall be three (3) independent
arbitrators, with one appointed by each Party, and the two
appointees selecting the third arbitrator in accordance with the
said Rules. If either Party fails to select an arbitrator within
ten (10) days after notice of such failure from the other Party or
the American Arbitration Association, then the American Arbitration
Association shall appoint such arbitrator. If the two appointees
are unable to agree on the third arbitrator, then the American
Arbitration Association shall select the same using the foregoing
qualification. Each arbitrator shall be a competent and reputable
individual with experience as a judge, a chief executive officer or
chief financial officer.

(d) The arbitration hearing shall be held in New York, N.Y., at
such date, time and place as established by the Arbitrators.

(e) The arbitrators shall have power to rule on their own
competency and on the validity of this Agreement to make reference
to arbitration.

(f) Not later than fifteen (15) days after the conclusion of the
arbitration hearing, but prior to the rendering of any arbitral
decision and award, each Party may submit to the Arbitrators a
written statement of such Party’s (i) understanding and view of the
Parties’ respective positions on the dispute, and (ii)
recommendation as to an appropriate resolution of the dispute and
the reasons why it believes such resolution is appropriate. In
reaching a decision on any dispute hereunder, the arbitrators may
take into account such statement.

(g) The Arbitrators must render their arbitral decision and award
and give a written opinion setting forth the basis of their
decision, all not later than forty-five (45) days after the
conclusion of the arbitration.

 

 

(h) Each Party shall take or cause to be taken all reasonable
action to facilitate the conduct of the arbitration and the
rendering of the arbitral award at the earliest possible date.

(i) The costs of the arbitration shall be borne and paid equally by
the Parties.

          14.6 Injunctive Relief. The Parties recognize and acknowledge that in the
event of a potential, anticipatory or actual breach of this Agreement, it may
be necessary or appropriate for the non-breaching Party to seek injunctive
relief, if and to the extent legally available, in order to avoid harm or
further harm to the non-breaching Party. If a Party desires injunctive relief,
it may pursue the same in any court of competent jurisdiction; provided,
however, that, if granted, such injunctive relief shall apply only to prevent a
breach or further breaches and shall remain in effect only so long as the court
deems necessary or appropriate to permit resolution of the underlying disputes
in accordance with this Article 15. Neither the seeking of injunctive relief
nor the granting thereof is intended or shall result in the application of a
substantive or procedural law other than the applicable governing law pursuant
to this Article 15.

          14.7 Notwithstanding the expiration or earlier termination of this
Agreement, the Parties’ obligations to each other under this Article 15
regarding events or obligations occurring or arising during the Term shall
survive such expiration or earlier termination until fulfilled.

ARTICLE 15. WORK PRODUCT

     All Work Product (as defined below) conceived, originated, devised or
developed by RPP in the provision of the Services shall be the sole and
absolute property of RPP, unless such Work Product arises solely from Services
provided to RSM (and not in connection with any other services performed by
RPP), in which event such Work Product shall be the sole and absolute property
of RSM. Each Party agrees to take all such actions and to execute all such
documents as may be desirable or as may be necessary to give full effect to
this Article 16.1. For purposes hereof, “Work Product” means all inventions,
innovations, improvements, technical information, systems, software
developments, methods, designs, analyses, drawings, reports, service marks,
trademarks, trade names, trade dress, logos and all similar or related
information (whether patentable or unpatentable) which relates to RSM’s actual
or anticipated business, operations, research and development or existing or
future products or services and which are conceived, developed or made by RPP
(whether or not during usual business hours and whether or not alone or in
conjunction with any other person) during the Term, together with all patent
applications, letters patent, trademark, trade name and service mark
applications or registrations, copyrights and reissues thereof that may be
granted for or upon any of the foregoing

ARTICLE 16. USE OF “RESOLUTION”

     RSM hereby acknowledges and agrees that Resolution Performance Products
Inc. and its subsidiaries have certain intellectual property and common law
rights associated with the word “Resolution” and all related trademarks,
service marks, brand names, logos, certification marks, assumed names and trade
names, including the Resolution stylized logo, colors, and other indicia as
used in connection with the name and business of RPP and its controlled
affiliates, and the use of such word in connection with the name and business
of Resolution Performance Products Inc. and its subsidiaries has developed a
secondary meaning in favor of such entities in the markets in which their
business is conducted. Notwithstanding the foregoing, until the first
anniversary of the later of such date as (x) Resolution Performance Products
Inc. or its subsidiaries no longer own any equity securities in RSM (or its
subsidiaries), (y) the expiration of the Term without renewal and (z) the
termination of this Agreement pursuant to Article 2.2 (the latest such date
referred to in clauses (x), (y) and (z), the “Name Use End Date”), each of RPP
and RSM hereby agrees not to, and to cause its respective controlled affiliates
not to, assert any claims against the other party hereto and its controlled
affiliates with respect to the use of the word “Resolution” in their respective
names and businesses (except in connection with a violation of this Article).
After the Name Use End Date (if requested in writing by RPP) RSM shall, and
shall cause its controlled affiliates, to cease using the name “Resolution” and
other indicia referenced above (or any variant thereof which would likely cause
confusion in the minds of individuals in the chemical industry in which RPP,
RSM and/or their respective affiliates operate; a “Variant Name”) in their
respective names and businesses as soon as is reasonably practicable and, in
any case, by the first anniversary of the Name Use End Date. In connection
with ceasing to use the word “Resolution” in its business, RSM shall, and shall
cause its controlled affiliates, to remove any and all exterior and interior
signs or identifiers that include such word in

 

 

such entities’ names, and shall
cease using any stationery or other written or electronic material (including
labels and packaging) that include such word in such entities’ names (provided
that RSM shall not be required to re-label any products or other inventory
produced prior to the first anniversary of the Name Use End Date).
Notwithstanding the forgoing, RSM acknowledges and agrees, on behalf of itself
and its controlled affiliates, that they shall not have the right or power to
license, assign, sell or otherwise dispose of their respective names to the
extent they include the word “Resolution” or any Variant Name. As a condition precedent to the
consummation of any Change in Control of RSM or its controlled affiliates
occurring after the date hereof whereby RSM or any such controlled affiliates,
as the case may be, is not the surviving entity or such entities’ business is
transferred, RSM shall cause the successor entity to assume and agree to the
terms and conditions set forth in this Article. If requested by RPP, RSM
agrees to provide RPP with reasonable assistance prior to the first anniversary
of the Name Use End Date, at RPP’s expense, in prosecuting and defending the
name “Resolution Performance Products” in connection with the business of RPP
and its controlled affiliates.

ARTICLE 17. INSURANCE

RSM shall furnish and keep in full force and effect at all times during the
Term general liability insurance and Directors and Officers coverage. The
policy shall name RPP as an additional insured to the extent that RPP’s
personnel are providing the Services.

ARTICLE 18. TAXES

The amounts to be paid by RSM to RPP herein do not include any U.S., foreign,
federal, state, local, municipal or other governmental taxes, duties, levies,
fees, excises or tariffs, arising as a result of or in connection with the
transactions contemplated under this Agreement, including (without limitation)
any state or local sales or use taxes or any value, stamp or business transfer
tax now or hereafter imposed on the provisions of Services to RSM by RPP under
this Agreement, regardless of whether the same are separately stated by RPP.
All such taxes (and any penalties, interest or other additions to any such
taxes), with the exception of taxes imposed on RPP’s net income or with respect
to RPP’s property ownership, shall be the financial responsibility of RSM. RSM
shall indemnify and defend RPP and hold RPP harmless from any such taxes or
causes of action, costs (including reasonable attorneys fees) and any other
Liabilities of any nature whatsoever relating to such matters.

ARTICLE 19. MISCELLANEOUS

          19.1 If any provision of this Agreement or the application of any such
provision to any person(s) or circumstance(s) shall be held invalid, illegal or
unenforceable in any respect by a court of competent jurisdiction, such
invalidity, illegality or unenforceability shall not affect any other provision
hereof, and the Agreement shall remain in full force and be effectuated as if
such illegal, invalid or unenforceable provision is not part hereof; provided,
however, that (i) if the deletion of any provision of this Agreement frustrates
an essential purpose(s) of the Agreement or material right(s) of a Party, then
such Party may terminate this Agreement without further liability or
obligation, and (ii) absent such frustration and to the extent legally
possible, the Parties shall seek in good faith agree upon alternate provisions
or arrangements to achieve the same purposes as the invalid, illegal or
unenforceable provision.

          19.2 This Agreement may be executed in one or more counterparts, each of
which shall be deemed to be an original and all of which shall constitute one
and the same instrument.

          19.3 The headings for the articles, sections and paragraphs in this
Agreement are for convenience and reference only and shall not limit in any way
or otherwise affect any of the terms or provisions hereof.

          19.4 This Agreement may not be changed, altered, modified or amended
except in writing signed by the Parties.

          19.5 The failure of either Party to demand strict performance of the terms
hereof, or to exercise any right conferred herein shall not be construed as a
waiver or relinquishment of its right to assert or rely on any such term or
right in the future. Waiver by either Party of any term, provision or
condition of this Agreement shall not be construed to be a waiver of any other
term, provision or condition nor shall such waiver be deemed to be a

 

 

waiver of
a subsequent breach of the same term, provision or condition. Failure or delay
by either Party to require performance of any provision of this Agreement will
not affect or impair such Party’s right to require full performance with such
provision at any time thereafter. Any review or approval by a Party required or
permitted pursuant to this Agreement shall not be deemed to be a waiver of any
provision of this Agreement nor shall it excuse any non-conforming performance
by the other Party.

          19.6 Except as otherwise expressly provided in this Agreement, the
provisions of this Agreement are for the benefit of the Parties hereto and not
for any other person. This Agreement shall not provide any third person with
any remedy, claim, reimbursement, claim of action or other right in excess of
those existing without reference to this Agreement.

          19.7 The validity, interpretation and performance of this Agreement and
any dispute connected with this Agreement will be governed by and determined in
accordance with the statutory, regulatory and decisional law of the State of
Delaware (exclusive of such state’s choice or conflicts of laws rules).

          19.8 To the extent a Party’s consent is required under this Agreement,
each Party agrees to act in good faith and not unreasonably withhold or delay
such consent.

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

	 	 	 
	RESOLUTION PERFORMANCE

	 	RESOLUTION SPECIALTY MATERIALS
	PRODUCTS LLC

	 	INC.
	 
	 	 
	By:    /s/ Marvin O. Schlanger

	 	By:    /s/
Scott Kleinman
	

	 	

	 
	 	 
	Name:    Marvin
O. Schlanger

	 	Name:    Scott
Kleinman
	

	 	

	 
	 	 
	Title:    Chairman
and Chief Executive Officer

	 	Title:    Presidentexv10w1

 

Exhibit 10.1

EXECUTION VERSION

CREDIT AGREEMENT

DATED AS OF JULY 29, 2004

among

BURLINGTON RESOURCES INC.

BURLINGTON RESOURCES CANADA LTD.

and

BURLINGTON RESOURCES CANADA (HUNTER) LTD.,

as Borrowers and Guarantors

JPMORGAN CHASE BANK,

as Administrative Agent, US Swing Line Lender and a US L/C Issuer

JPMORGAN CHASE BANK, TORONTO BRANCH,

as Canadian Swing Line Lender and a Canadian L/C Issuer

and

THE OTHER LENDERS PARTY HERETO

BANK OF AMERICA, N.A.,

as Syndication Agent

BARCLAYS BANK PLC

CITIBANK, N.A.

and

THE BANK OF TOKYO-MITSUBISHI, LTD.,

as Co-Documentation Agents

J.P. MORGAN SECURITIES INC.

and

BANC OF AMERICA SECURITIES LLC,

as Co-Lead Arrangers and Bookrunners

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE I. DEFINITIONS AND ACCOUNTING TERMS
	 	 	1	 
	1.01 Defined Terms
	 	 	1	 
	1.02 Terms Generally
	 	 	30	 
	1.03 Accounting Terms; GAAP
	 	 	30	 
	1.04 Rounding
	 	 	31	 
	1.05 US Dollar Equivalent
	 	 	31	 
	1.06 Letter of Credit Amounts
	 	 	31	 
	1.07 Time of Day
	 	 	31	 
	1.08 Determinations Made in Good Faith
	 	 	31	 
	ARTICLE II. US FACILITY
	 	 	31	 
	2.01 US Committed Loans
	 	 	31	 
	2.02 US Committed Borrowings; Conversions and Continuations of US Committed Loans
	 	 	32	 
	2.03 US Bid Loans
	 	 	33	 
	2.04 US Letters of Credit
	 	 	36	 
	2.05 US Swing Line Loans
	 	 	45	 
	2.06 Prepayments
	 	 	48	 
	2.07 Repayment of US Loans
	 	 	49	 
	ARTICLE III. CANADIAN FACILITY
	 	 	49	 
	3.01 Canadian Committed Loans
	 	 	49	 
	3.02 Canadian Committed Borrowings; Conversions and Continuations of Canadian Committed Loans
	 	 	49	 
	3.03 Canadian Bid Loans
	 	 	51	 
	3.04 Canadian Letters of Credit
	 	 	55	 
	3.05 Canadian Swing Line Loans
	 	 	64	 
	3.06 Prepayments
	 	 	67	 
	3.07 Repayment of Canadian Loans
	 	 	68	 
	3.08 Bankers’ Acceptances
	 	 	68	 
	3.09 Currency Fluctuations
	 	 	73	 
	3.10 Currency Conversion and Currency Indemnity
	 	 	73	 
	ARTICLE IV. GENERAL PROVISIONS APPLICABLE TO BOTH FACILITIES
	 	 	74	 
	4.01 Interest on Loans
	 	 	74	 

-i-

 

TABLE OF CONTENTS
Continued

	 	 	 	 	 
	 	 	Page
	4.02 Fees
	 	 	76	 
	4.03 Computation of Interest and Fees
	 	 	78	 
	4.04 Evidence of Debt
	 	 	78	 
	4.05 Payments Generally
	 	 	79	 
	4.06 Sharing of Payments
	 	 	81	 
	4.07 Extension of Maturity Date
	 	 	82	 
	4.08 Increase in Commitments
	 	 	83	 
	4.09 Termination or Reduction of Commitments
	 	 	85	 
	ARTICLE V. TAXES, YIELD PROTECTION AND ILLEGALITY
	 	 	85	 
	5.01 Taxes
	 	 	85	 
	5.02 Illegality
	 	 	88	 
	5.03 Inability to Determine Rates
	 	 	89	 
	5.04 Increased Cost And Reduced Return; Capital Adequacy; Reserves On US Dollar Eurodollar Rate Loans, Canadian C$ Eurodollar Rate Loans, and Canadian US$ Eurodollar Rate Committed Loans
	 	 	90	 
	5.05 Compensation for Losses
	 	 	91	 
	5.06 Matters Applicable to All Requests for Compensation
	 	 	91	 
	5.07 Survival
	 	 	91	 
	ARTICLE VI. CONDITIONS PRECEDENT TO EFFECTIVENESS AND CREDIT EXTENSIONS
	 	 	92	 
	6.01 Conditions Precedent to Effectiveness of this Agreement
	 	 	92	 
	6.02 Conditions Precedent to Each Credit Extension
	 	 	93	 
	ARTICLE VII. REPRESENTATIONS AND WARRANTIES
	 	 	94	 
	7.01 Representations and Warranties of the Borrowers
	 	 	94	 
	ARTICLE VIII. COVENANTS
	 	 	96	 
	8.01 Affirmative Covenants
	 	 	96	 
	8.02 Negative Covenants
	 	 	97	 
	8.03 Reporting Requirements
	 	 	101	 
	8.04 Financial Statement Comparative Information
	 	 	103	 
	ARTICLE IX. EVENTS OF DEFAULT
	 	 	103	 
	9.01 Events of Default
	 	 	103	 
	9.02 Remedies Upon an Event of Default
	 	 	106	 

-ii-

 

TABLE OF CONTENTS
Continued

	 	 	 	 	 
	 	 	Page
	9.03 Application of Funds Received from the Canadian Facility Borrowers on Account of Canadian Obligations
	 	 	107	 
	9.04 Application of Funds Received from the US Facility Borrower
	 	 	108	 
	9.05 Separate Obligations
	 	 	109	 
	ARTICLE X. GUARANTEE
	 	 	109	 
	ARTICLE XI. ADMINISTRATIVE AGENT
	 	 	111	 
	11.01 Authorization and Action
	 	 	111	 
	11.02
Administrative Agent’s Reliance, Etc.
	 	 	111	 
	11.03 Administrative Agent and Affiliates; Agents
	 	 	112	 
	11.04 Lender Credit Decision
	 	 	112	 
	11.05 Indemnification
	 	 	112	 
	11.06 Successor Administrative Agent
	 	 	113	 
	ARTICLE XII. MISCELLANEOUS
	 	 	114	 
	12.01
Amendments, Etc.
	 	 	114	 
	12.02
Notices, Etc.
	 	 	115	 
	12.03 No Waiver; Remedies
	 	 	116	 
	12.04 Costs and Expenses; Indemnity
	 	 	116	 
	12.05 Right of Set-off
	 	 	117	 
	12.06 Binding Effect
	 	 	117	 
	12.07 Assignments and Participations
	 	 	117	 
	12.08 Confidentiality
	 	 	121	 
	12.09 Interest Rate Limitation
	 	 	121	 
	12.10 Consent to Jurisdiction
	 	 	122	 
	12.11 Replacement of Lenders
	 	 	123	 
	12.12 Governing Law
	 	 	124	 
	12.13 Execution in Counterparts
	 	 	124	 
	12.14 Waiver of Jury Trial
	 	 	124	 
	12.15 USA Patriot Act Notice
	 	 	124	 
	12.16 Amendment and Restatement; Certain Waivers
	 	 	124	 
	12.17 Entire
Agreement, Etc.
	 	 	124	 
	12.18 Waiver of Notice of Termination
	 	 	125	 

-iii-

 

	 	 	 
	SCHEDULES
	 	 
	 
	 	 
	1.01

	 	Pricing Grid
	2.01

	 	Commitments
	7.01

	 	Material Subsidiaries
	12.02

	 	Administrative Agent’s Office and Certain Addresses for Notices
	 
	 	 
	EXHIBITS
	 	 
	 
	 	 
	

	 	FORM OF
	A(US)

	 	US Committed Borrowing Notice
	A(C)

	 	Canadian Committed Borrowing Notice
	B(US)-1

	 	US Bid Request
	B(C)-1

	 	Canadian Bid Request
	B(US)-2

	 	US Competitive Bid
	B(C)-2

	 	Canadian Competitive Bid
	C(US)

	 	US Swing Line Borrowing Notice
	C(C)

	 	Canadian Swing Line Borrowing Notice
	D-1

	 	US Note
	D-2

	 	Canadian Note
	E-1

	 	Standby US Letter of Credit Application
	E-2

	 	Commercial US Letter of Credit Application
	F

	 	Assignment and Assumption
	G-1

	 	Opinion of Parent’s General Counsel
	G-2

	 	Opinion of Counsel for BRCL and Canadian Hunter
	G-3

	 	Opinion of Jones Day
	G-4

	 	Opinion of Bennett Jones LLP

iv

 

CREDIT AGREEMENT

     This CREDIT AGREEMENT (this “Agreement”) is entered into as of July 29,
2004, among Burlington Resources Inc., a Delaware corporation (“Parent” or the
“US Facility Borrower”); Burlington Resources Canada Ltd. (“BRCL”), an Alberta
corporation; Burlington Resources Canada (Hunter) Ltd. (“Canadian Hunter”), an
Alberta corporation (BRCL and Canadian Hunter, collectively, the “Canadian
Borrowers,” and, together with Parent as a borrower under the Canadian
Facility, the “Canadian Facility Borrowers”; and the Canadian Facility
Borrowers together with the US Facility Borrower, the “Borrowers”); each Lender
from time to time party hereto; JPMorgan Chase Bank, as Administrative Agent,
US Swing Line Lender and a US L/C Issuer; and JPMorgan Chase Bank, Toronto
Branch, as Canadian Swing Line Lender and a Canadian L/C Issuer.

     Parent is a party to the Existing US Short-Term Revolving Credit Agreement
and the Existing US Long-Term Revolving Credit Agreement, and Parent, BRCL and
Canadian Hunter are parties to the Existing Canadian Credit Agreement. Parent,
BRCL and Canadian Hunter wish to replace such existing agreements and the
credit facilities provided therein with this Agreement and the credit
facilities provided herein, and the Lenders are willing to do so on the terms
and conditions set forth herein. In furtherance thereof, upon the Effective
Date, this Agreement amends, restates and replaces the US Short-Term Revolving
Credit Agreement, and the commitments under the Existing US Long-Term Revolving
Credit Agreement and the Existing Canadian Credit Agreement shall terminate,
and all amounts outstanding or accrued under each such existing agreement shall
be paid in full.

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

ARTICLE I.

DEFINITIONS AND ACCOUNTING TERMS

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

     “Absolute Rate” means a fixed rate of interest expressed in multiples of
1/100th of one Basis Point.

     “Administrative Agent” means JPMCB, in its capacity as administrative
agent for the Lenders hereunder, or any successor administrative agent.

     “Administrative Agent’s Office” means the Administrative Agent’s address
and, as appropriate, account set forth on Schedule 12.02, or such other address
or account as the Administrative Agent may from time to time designate by
notice to the Borrowers and the Lenders.

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

 

 

     “Affiliate” means, as to any Person, any other Person that, directly or
indirectly, controls, is controlled by or is under common control with such
Person or is a director or officer of such Person. The term “control”
(including the terms “controls”, “controlled by” or “under common control
with”) means, with respect to any Person, the possession, direct or indirect,
of the power to vote 10% or more (or in the case of an “Affiliate” of any
Lender, 5% or more) of the securities having ordinary voting power for the
election of directors of such Person or to direct or cause the direction of the
management and policies of such Person, whether through ownership of voting
securities or by contract or otherwise. Neither a director nor an officer of a
Loan Party shall be deemed, in such capacity, an Affiliate for purposes of this
Agreement.

     “Aggregate Canadian Commitments” means, at any time, the sum of the
Canadian Commitments of all the Canadian Lenders at such time, which shall not
exceed an amount in US Dollars equal to, or an amount in Canadian Dollars the
US Dollar Equivalent of which is, US $500,000,000 in the aggregate, except as
otherwise provided in Section 4.08.

     “Aggregate Commitments” means, at any time, the sum of the Commitments of
all the Lenders at such time.

     “Aggregate US Commitments” means, at any time, the sum of the US
Commitments of all the US Lenders at such time, which shall not exceed US
$1,000,000,000 in the aggregate, except as otherwise provided in Section 4.08.

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

     “Applicable Currency” means (i) when used with respect to any US Credit
Extension or the US Commitments, US Dollars, (ii) when used with respect to any
Canadian Prime Rate Committed Loan, Canadian C$ Eurodollar Rate Loan, Canadian
L/C Obligations, Bankers’ Acceptance or Canadian C$ Bid Loan, or the Canadian
Commitments, insofar as they relate to the foregoing, Canadian Dollars, and
(iii) when used with respect to any Canadian Base Rate Committed Loan, Canadian
US$ Eurodollar Rate Committed Loan or Canadian US$ Bid Loan, or the Canadian
Commitments, insofar as they relate to the foregoing, US Dollars.

     “Applicable Margin” means, from time to time, the number of Basis Points
per annum, based upon the applicable Debt Rating set forth on the row
designated “Applicable Margin” on Schedule 1.01. Initially, the Applicable
Margin shall be at Level III (as set forth on Schedule 1.01). Thereafter, each
change in the Applicable Margin resulting from a publicly announced change in
the Debt Rating shall be effective during the period commencing on the date of
the public announcement thereof and ending on the date immediately preceding
the effective date of the next such change.

     “Assignment and Assumption” means an Assignment and Assumption
substantially in the form of Exhibit F.

     “Attorney Costs” means and includes all fees, expenses and disbursements
of one US law firm and one Canadian law firm.

     “Availability Period” means the period from and including the Effective
Date to the earliest of (a) the Maturity Date, (b) (i) with respect to US
Loans, the date of termination of the

2

 

Aggregate US Commitments and (ii) with respect to Canadian Loans, the date
of termination of the Aggregate Canadian Commitments, in each case, pursuant to
Section 4.09, and (c) the date of termination pursuant to Section 9.02 of the
commitment of each Lender to make Loans and of the obligation of each L/C
Issuer to make L/C Credit Extensions.

     “BA Discount Rate” means, in respect of a BA being accepted by a Canadian
Lender on any date, (i) for a Canadian Lender that is listed in Schedule I to
the Bank Act (Canada), the average bankers’ acceptance rate as quoted on
Reuters CDOR page (or such other page as may, from time to time, replace such
page on that service for the purpose of displaying quotations for bankers’
acceptances accepted by banks listed in Schedule I to the Bank Act (Canada)) at
approximately 10:00 a.m. on such drawdown date for bankers’ acceptances having
a comparable maturity date as the maturity date of such BA (the “CDOR Rate”);
or, if such rate is not available at or about such time, the average of the
bankers’ acceptance rates (expressed to five decimal places) as quoted to the
Administrative Agent by the Canadian Schedule I BA Reference Banks as of 10:00
a.m. on such drawdown date for bankers’ acceptances having a comparable
maturity date as the maturity date of such BA; (ii) for a Canadian Lender that
is listed in Schedule II to the Bank Act (Canada), the rate established by the
Administrative Agent to be the lesser of (A) the CDOR Rate plus 10 Basis
Points; and (B) the average of the bankers’ acceptance rates (expressed to five
decimal places) as quoted to the Administrative Agent by the Canadian Schedule
II BA Reference Banks as of 10:00 a.m. on such drawdown date for bankers’
acceptances having a comparable maturity date as the maturity date of such BA;
and (iii) for a Canadian Lender that is listed in Schedule III to the Bank Act
(Canada), the rate established by the Administrative Agent to be the lesser of
(A) the CDOR Rate plus 10 Basis Points; and (B) the average of the bankers’
acceptance rates (expressed to five decimal places) as quoted to the
Administrative Agent by the Canadian Schedule III BA Reference Banks as of
10:00 a.m. on such drawdown date for bankers’ acceptances having a comparable
maturity date as the maturity date of such BA.

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

     “Bankers’ Acceptance” or “BA” means a Canadian Dollar draft of either
Canadian Borrower, in a form acceptable to each accepting Canadian Lender and
payable in Canada, for a term of either 7 to 29, 30, 60, 90 or 180 days, as
selected, subject to the availability of a market for Bankers’ Acceptances of
such term, by either Canadian Borrower (as such term may be reduced or extended
by the Administrative Agent, acting reasonably, to allow the maturity thereof
to fall on a Business Day).

     “BAS” means Banc of America Securities LLC.

     “Basis Point” or “bp” means one one-hundredth of one percent (0.01%).

     “Bid Request” means a US Bid Request or a Canadian Bid Request, as
applicable.

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

     “Borrowing” means a US Borrowing or a Canadian Borrowing.

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

3

 

     “Business Day” means any day other than a Saturday, Sunday or other day on
which commercial banks are authorized to close under the Laws of, or are in
fact closed in, New York or the state where the Administrative Agent’s Office
is located and, with respect to the Canadian Facility, other than a day on
which commercial banks are authorized to close under the Laws of, or are in
fact closed in, the province where the Administrative Agent’s Office is
located; provided that, if such day relates to any US Dollar Eurodollar Rate
Loan or Canadian US$ Eurodollar Rate Loan, such day is also a day on which
dealings in US Dollar deposits are conducted by and between banks in the London
interbank eurodollar market and, if such day relates to any Canadian C$
Eurodollar Rate Loan, such day is also a day on which dealings in Canadian
Dollar deposits are conducted by and between banks in the London interbank
eurodollar market.

     “Business Entity” means a partnership, limited partnership, limited
liability partnership, corporation (including a business trust), limited
liability company, unlimited liability company, joint stock company, trust,
unincorporated association, joint venture or other entity.

     “Canadian Absolute Rate Loan” means a Canadian Bid Loan that bears
interest at a rate determined with reference to an Absolute Rate.

     “Canadian Base Rate Committed Loan” means a Canadian Committed Loan
denominated in US Dollars that bears interest based on the US Base Rate and is
funded in the United States.

     “Canadian Bid Borrowing” means a borrowing consisting of simultaneous
Canadian Bid Loans of the same Type in the same Applicable Currency from each
of the Canadian Lenders or, if applicable, their respective Lender Funding
Affiliates, whose offer to make one or more Canadian Bid Loans as part of such
borrowing has been accepted under the auction bidding procedures described in
Section 3.03.

     “Canadian Bid Loan” has the meaning specified in Section 3.03(a).

     “Canadian Bid Loan Lender” means, in respect of any Canadian Bid Loan made
to a Canadian Borrower, the Canadian Lender making such Canadian Bid Loan and,
in respect of any Canadian Bid Loan made to Parent as a Canadian Facility
Borrower, the Canadian Lender making, or causing its Lender Funding Affiliate
to make, such Canadian Bid Loan.

     “Canadian Bid Request” means a written request for one or more Canadian
Bid Loans substantially in the form of Exhibit B(C)-1.

     “Canadian Borrowers” has the meaning specified in the introductory
paragraph hereto.

     “Canadian Borrowing” means a Canadian Committed Borrowing, a Canadian Bid
Borrowing or a Canadian Swing Line Borrowing, as the context may require.

     “Canadian C$ Absolute Rate Loan” means a Canadian Absolute Rate Loan
denominated in Canadian Dollars and funded to a Canadian Borrower in Canada.

     “Canadian C$ Bid Loan” means a Canadian C$ Absolute Rate Loan or a
Canadian C$ Eurodollar Margin Bid Loan.

4

 

     “Canadian C$ Eurodollar Margin Bid Loan” means a Canadian Bid Loan
denominated in Canadian Dollars that bears interest at a rate based on the
Canadian Dollar Eurodollar Rate and is funded to a Canadian Borrower in Canada.

     “Canadian C$ Eurodollar Rate Committed Loan” means a Canadian Committed
Loan denominated in Canadian Dollars that bears interest at a rate based on the
Canadian Dollar Eurodollar Rate and is funded to a Canadian Borrower in Canada.

     “Canadian C$ Eurodollar Rate Loan” means a Canadian C$ Eurodollar Rate
Committed Loan or a Canadian C$ Eurodollar Margin Bid Loan.

     “Canadian Commitment” means, as to each Lender, its obligation to (a)
make, or cause its Lender Funding Affiliate to make, Canadian Committed Loans
to the Canadian Facility Borrowers pursuant to Section 3.01, (b) purchase
participations in Canadian L/C Obligations and (c) purchase participations in
Canadian Swing Line Loans, in an aggregate principal amount at any one time
outstanding not to exceed the amount set forth on Schedule 2.01 (or in the
Assignment and Assumption pursuant to which such Lender assumed its Canadian
Commitment) and designated as such Lender’s “Canadian Commitment”, as such
amount may be adjusted from time to time in accordance with this Agreement.

     “Canadian Committed Borrowing” means a borrowing consisting of
simultaneous Canadian Committed Loans of the same Type in the Applicable
Currency or, in the case of Canadian Committed Loans by way of Bankers’
Acceptances, the simultaneous acceptance or purchase of Bankers’ Acceptances
having the same term and, in the case of Canadian C$ Eurodollar Rate Committed
Loans and Canadian US$ Eurodollar Rate Committed Loans, having the same
Interest Period, made by each of the Canadian Lenders, directly or through its
Lender Funding Affiliate, pursuant to Section 3.01, 3.04(c) or 3.05(c).

     “Canadian Committed Borrowing Notice” means a notice of (a) a Canadian
Committed Borrowing, (b) a conversion of Canadian Committed Loans from one Type
to another, or (c) a continuation of Canadian C$ Eurodollar Rate Committed
Loans or Canadian US$ Eurodollar Rate Committed Loans, in each case, pursuant
to Section 3.02(a), which notice, if in writing, shall be substantially in the
form of Exhibit A(C).

     “Canadian Committed Loan” has the meaning specified in Section 3.01.

     “Canadian Competitive Bid” means a written offer by a Canadian Lender to
make, directly or through a Lender Funding Affiliate, one or more Canadian Bid
Loans, substantially in the form of Exhibit B(C)-2, duly completed and signed
by a Canadian Lender.

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

     “Canadian Defaulting Lender” means any Canadian Lender that (a) has failed
to fund, or cause to be funded, any portion of a Canadian Committed Loan
(including by way of accepting and purchasing any Bankers’ Acceptance) or fund
any portion of a participation in a Canadian L/C Obligation or a Canadian Swing
Line Loan required to be funded or purchased by it hereunder within one
Business Day of the date required to be funded or purchased by it

5

 

hereunder, if such failure has not been cured, (b) has otherwise failed to
pay over to the Administrative Agent or any other Canadian Lender any other
amount required to be paid by it hereunder (unless such amount is the subject
of a good faith dispute) within one Business Day of the date when due, if such
failure has not been cured, or (c) has been deemed insolvent or has become the
subject of a bankruptcy or insolvency proceeding.

     “Canadian Discount Proceeds” means, in respect of each Bankers’
Acceptance, funds in an amount which is equal to:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	

	 	Face Amount divided by the sum of 1
	 	+
	 	(Rate x Term
	)	 	 	 
	

	 	 	 	 	 	 	
 	 	 	 	 
	

	 	 	 	 	 	 	365	 	 	 	 

(where “Face Amount” is the principal amount of the Bankers’ Acceptance being
purchased, “Rate” is the BA Discount Rate divided by 100 and “Term” is the
number of days in the term of the Bankers’ Acceptance.)

     “Canadian Dollar” and “C$” mean lawful money of Canada.

     “Canadian Dollar Eurodollar Rate” means for any Interest Period with
respect to a Canadian C$ Eurodollar Rate Loan:

          (a) the rate per annum equal to the rate determined by the
Administrative Agent to be the offered rate (carried to the fifth decimal
place) that appears on the page of the Telerate screen (or any successor
thereto) that displays an average British Bankers Association Interest
Settlement Rate for deposits in Canadian Dollars (for delivery on the
first day of such Interest Period) with a term equivalent to such
Interest Period, determined as of approximately 11:00 a.m. (London time)
two Business Days prior to the first day of such Interest Period, or

          (b) if the rate referenced in the preceding clause (a) does not
appear on such page or service or such page or service shall not be
available, the rate per annum equal to the rate determined by the
Administrative Agent to be the offered rate (carried to the fifth decimal
place) on such other page or other service that displays an average
British Bankers Association Interest Settlement Rate for deposits in
Canadian Dollars (for delivery on the first day of such Interest Period)
with a term equivalent to such Interest Period, determined as of
approximately 11:00 a.m. (London time) two Business Days prior to the
first day of such Interest Period, or

          (c) if the rates referenced in the preceding clauses (a) and (b) are
not available, the rate per annum determined by the Administrative Agent
as the rate of interest at which deposits in Canadian Dollars for
delivery on the first day of such Interest Period in same day funds in
the approximate amount of the Canadian C$ Eurodollar Rate Loan being
made, continued or converted by the Administrative Agent (or, in the case
of a Canadian Bid Loan, the applicable Canadian Bid Loan Lender) and with
a term equivalent to such Interest Period would be offered by the
Administrative Agent’s London Branch to major banks in the London
interbank eurodollar market at their request at approximately 4:00 p.m.
(London time) two Business Days prior to the first day of such Interest
Period.

6

 

     “Canadian Escrow Funds” has the meaning specified in Section 3.08(e).

     “Canadian Eurodollar Bid Margin” means the margin above or below the
Canadian Dollar Eurodollar Rate or the US Dollar Eurodollar Rate, as
applicable, to be added to or subtracted from the Canadian Dollar Eurodollar
Rate or the US Dollar Eurodollar Rate, as applicable, which margin shall be
expressed in multiples of 1/100th of one Basis Point.

     “Canadian Eurodollar Margin Bid Loan” means a Canadian Bid Loan that bears
interest at a rate based on the Canadian Dollar Eurodollar Rate or the US
Dollar Eurodollar Rate.

     “Canadian Eurodollar Rate Committed Loan” means a Canadian C$ Eurodollar
Rate Committed Loan or a Canadian US$ Eurodollar Rate Committed Loan.

     “Canadian Facility” means, collectively, the financing facilities provided
for under Article III.

     “Canadian Facility Fee” has the meaning specified in Section 4.02(a)(ii).

     “Canadian Facility Borrowers” has the meaning specified in the
introductory paragraph hereto.

     “Canadian Hunter” has the meaning specified in the introductory paragraph
hereto.

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

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

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

     “Canadian L/C Issuer” means any of (i) JPMCB Canada, (ii) Bank of America,
through its Canada branch, and (iii) any other Canadian Lender that may issue
Canadian Letters of Credit hereunder, as mutually agreed to by Administrative
Agent, the Canadian Borrowers and such Lender, in such Person’s capacity as
issuer of Canadian Letters of Credit hereunder, or any successor issuer of
Canadian Letters of Credit hereunder.

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

7

 

     “Canadian Lender” means a Lender with a Canadian Commitment or with
outstanding Canadian Loans, Canadian L/C Advances or participations in Canadian
Swing Line Loans.

     “Canadian Letter of Credit” means any Letter of Credit issued by the
Canadian L/C Issuer for the account of a Canadian Borrower under Article III
hereof. A Letter of Credit may be a commercial letter of credit or a standby
letter of credit.

     “Canadian Letter of Credit Application” means an application and agreement
for the issuance or amendment of a Canadian Letter of Credit in the form
acceptable to the applicable Canadian Borrower and the applicable Canadian L/C
Issuer, which may be in the standard form of such Canadian L/C Issuer, such
form to be modified as agreed is appropriate in the context of a request for a
Canadian Letter of Credit and as further agreed to by the applicable Canadian
Borrower and such Canadian L/C Issuer to conform the nature, scope and extent
of the rights and obligations of the parties thereto set forth herein (and as
generally reflected in Exhibit E-1, in the case of a standby Canadian Letter of
Credit, and Exhibit E-2, in the case of a commercial Canadian Letter of Credit)
and otherwise to conform the provisions thereof to the provisions hereof.
Without prejudice to Section 3.04(k), the forms of the standby and commercial
Letter of Credit applications attached hereto as Exhibit E-1 and E-2, as
applicable, shall be deemed to satisfy the foregoing requirements as to
conformity.

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

     “Canadian Letter of Credit Sublimit” means an amount in Canadian Dollars
the US Dollar Equivalent of which is US $250,000,000, as such amount may be
increased pursuant to Section 4.08 or reduced pursuant to Section 4.09. The
Canadian Letter of Credit Sublimit is part of, and not in addition to, the
Aggregate Canadian Commitments.

     “Canadian Loan” means an extension of credit by a Lender or its Lender
Funding Affiliate, if applicable, to any Canadian Facility Borrower pursuant to
Article III in the form of a Canadian Committed Loan, a Canadian Bid Loan or a
Canadian Swing Line Loan.

     “Canadian Net Proceeds” means, with respect to any Bankers’ Acceptance,
the Canadian Discount Proceeds less the amount equal to the applicable Canadian
stamping fee payable with respect thereto pursuant to Section 4.02(c).

     “Canadian Note” means a promissory note made by a Canadian Facility
Borrower in favor of any Canadian Lender, or its Lender Funding Affiliate, as
applicable, requesting such a note, evidencing Canadian Loans made by such
Canadian Lender or its Lender Funding Affiliate, substantially in the form of
Exhibit D-2.

     “Canadian Obligations” means all Obligations arising under or with respect
to the Canadian Facility.

     “Canadian Prime Rate” means for any day a fluctuating rate per annum equal
to the higher of (a) the 30-Day CDOR Rate plus 50 Basis Points, and (b) the
rate of interest in effect for such day as publicly announced from time to time
by the Administrative Agent as its “prime” or “reference rate” for Canadian
Dollar commercial loans made to a Person in Canada. The “prime” or “reference
rate” is a rate set by the Administrative Agent in Canada based upon various

8

 

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

     “Canadian Prime Rate Committed Loan” means a Canadian Committed Loan
denominated in Canadian Dollars that bears interest at the Canadian Prime Rate
and is funded in Canada.

     “Canadian Required Lenders” means, as of any date of determination,
Canadian Lenders having more than 50% of the Aggregate Canadian Commitments or,
if the commitment of each Canadian Lender to make Canadian Committed Loans
(including the obligation to purchase or accept Bankers’ Acceptances) and the
obligation of each Canadian L/C Issuer to make Canadian L/C Credit Extensions
have been terminated, Canadian Lenders holding in the aggregate more than 50%
of the Total Canadian Outstandings (with the aggregate amount of each Canadian
Lender’s risk participation and funded participation in Canadian L/C
Obligations and Canadian Swing Line Loans being deemed “held” by such Canadian
Lender for purposes of this definition); provided that the Canadian Commitment
of, and the portion of the Total Canadian Outstandings held or deemed held by,
any Canadian Defaulting Lender shall be excluded for purposes of making a
determination of Canadian Required Lenders.

     “Canadian Resident Lender” means a Person that (i) is not a non-resident
of Canada for the purposes of the Income Tax Act (Canada) or (ii) is an
“authorized foreign bank” as defined in subsection 248(1) of the Income Tax Act
(Canada) that will receive all amounts paid or credited to it with respect to
Canadian Credit Extensions and other Canadian Obligations and fees and other
amounts payable in connection therewith in respect of its “Canadian banking
business” for the purposes of paragraph 212(13.3)(a) of the Income Tax Act
(Canada).

     “Canadian Schedule I BA Reference Banks” means the Canadian Lenders listed
in Schedule I to the Bank Act (Canada) as are, at such time, designated by
Administrative Agent, with the prior consent of the Canadian Borrowers (acting
reasonably), as the Schedule I BA Reference Banks.

     “Canadian Schedule II BA Reference Banks” means the Canadian Lenders
listed in Schedule II to the Bank Act (Canada) as are, at such time, designated
by Administrative Agent, with the prior consent of the Canadian Borrowers
(acting reasonably), as the Canadian Schedule II BA Reference Banks.

     “Canadian Schedule III BA Reference Banks” means the Canadian Lenders
listed in Schedule III to the Bank Act (Canada) as are, at such time,
designated by Administrative Agent, with the prior consent of the Canadian
Borrowers (acting reasonably), as the Canadian Schedule III BA Reference Banks.

     “Canadian Stamping Fee Rate” means, with respect to any Bankers’
Acceptance accepted by any Canadian Lender at any time, a percentage per annum
equal to the Applicable

9

 

Margin then in effect; provided that if an Event of Default has occurred
and is continuing, the Canadian Stamping Fee Rate shall be increased by 1% per
annum.

     “Canadian Swing Line” means the revolving credit facility made available
by the Canadian Swing Line Lender pursuant to Section 3.05.

     “Canadian Swing Line Borrowing” means a borrowing of a Canadian Swing Line
Loan pursuant to Section 3.05.

     “Canadian Swing Line Borrowing Notice” means a notice of a Canadian Swing
Line Borrowing pursuant to Section 3.05(b), which, if in writing, shall be
substantially in the form of Exhibit C(C).

     “Canadian Swing Line Lender” means JPMCB Canada, or any other Canadian
Lender that may provide Canadian Swing Line Loans hereunder, as mutually agreed
to by the Administrative Agent and the Canadian Facility Borrowers, in such
Person’s capacity as provider of Canadian Swing Line Loans hereunder, or any
successor swing line lender hereunder.

     “Canadian Swing Line Loan” has the meaning specified in Section 3.05(a).

     “Canadian Swing Line Rate” means on any day a fluctuating rate of interest
per annum equal to the sum of the 30-day CDOR rate on such day, plus the
Applicable Margin plus, only in the case of Canadian Lenders listed in Schedule
II or Schedule III to the Bank Act (Canada), 10 Basis Points.

     “Canadian Swing Line Sublimit” means an amount in Canadian Dollars the US
Dollar Equivalent of which is US $20,000,000, as such amount may be increased
pursuant to Section 4.08 or reduced pursuant to Section 4.09. The Canadian
Swing Line Sublimit is part of, and not in addition to, the Aggregate Canadian
Commitments.

     “Canadian Unreimbursed Amount” has the meaning specified in Section
3.04(c)(ii).

     “Canadian US$ Absolute Rate Loan” means a Canadian Absolute Rate Loan
denominated in US Dollars and funded in the United States.

     “Canadian US$ Bid Loan” means a Canadian US$ Absolute Rate Loan or a
Canadian US$ Eurodollar Margin Bid Loan.

     “Canadian US$ Eurodollar Margin Bid Loan” means a Canadian Bid Loan
denominated in US Dollars that bears interest at a rate based on the US Dollar
Eurodollar Rate and is funded in the United States.

     “Canadian US$ Eurodollar Rate Committed Loan” means a Canadian Committed
Loan denominated in US Dollars that bears interest at a rate based on the US
Dollar Eurodollar Rate and is funded in the United States.

     “Canadian US$ Eurodollar Rate Loan” means a Canadian US$ Eurodollar Rate
Committed Loan or a Canadian US$ Eurodollar Margin Bid Loan.

10

 

     “Capitalization” means the amount equal to (without duplication) (i)
consolidated Debt of Parent and its consolidated Subsidiaries, plus (ii) the
aggregate amount of Guarantees by Parent or its consolidated Subsidiaries, plus
(iii) the sum of the preferred stock and common stockholders’ equity of Parent,
plus (iv) the cumulative amount by which the common stockholders’ equity of
Parent shall have been reduced by reason of non-cash write-downs of long-term
assets subsequent to December 31, 1997 (but excluding any such amount with
respect to assets of Project Financing Subsidiaries), minus (v) to the extent
otherwise included in determining the amounts computed under clause (iii)
above, the aggregate investment (net of any Project Financing) of Parent and
its consolidated Subsidiaries in Project Financing Subsidiaries.

     “Cash Collateralize” means (i) with respect to US Letters of Credit, that
the US Facility Borrower shall pledge and deposit with or deliver to the
Administrative Agent, for the benefit of the applicable US L/C Issuer and the
US Lenders, as collateral for the US L/C Obligations, cash or deposit account
balances pursuant to documentation in form and substance reasonably
satisfactory to the Administrative Agent and the applicable US L/C Issuer
(which documents are hereby consented to by the US Lenders), (ii) with respect
to Canadian Letters of Credit, that the applicable Canadian Borrower shall
pledge and deposit with or deliver to the Administrative Agent, for the benefit
of the applicable Canadian L/C Issuer and the Canadian Lenders, as collateral
for the Canadian L/C Obligations, cash or deposit account balances pursuant to
documentation in form and substance reasonably satisfactory to the
Administrative Agent and the applicable Canadian L/C Issuer (which documents
are hereby consented to by the Canadian Lenders), and (iii) with respect to
Bankers’ Acceptances, that the applicable Canadian Borrower shall pledge and
deposit with or deliver to the Administrative Agent for the benefit of the
applicable Canadian Lenders, as collateral for the Outstanding Amount of
Bankers’ Acceptances, cash or deposit account balances pursuant to
documentation in form and substance reasonably satisfactory to the
Administrative Agent (which documents are hereby consented to by the Canadian
Lenders). “Cash Collateralization” has the meaning correlative thereto.

     “CDOR Rate” has the meaning specified in the definition of “BA Discount
Rate.”

     “Change in Law” means, with respect to any Lender, the adoption of any law
or change in any existing Law or interpretation thereof after the date of this
Agreement or, if such Lender became a Lender hereunder after the date of this
Agreement, after the date it became a Lender hereunder.

     “Charges” has the meaning specified in Section 5.01(a).

     “Code” means the Internal Revenue Code of 1986.

     “Committed Borrowing Notice” means a US Committed Borrowing Notice or a
Canadian Committed Borrowing Notice, as applicable.

     “Committed Loans” means, collectively, the US Committed Loans and the
Canadian Committed Loans.

     “Commitment” means a US Commitment or a Canadian Commitment.

     “Compensation Period” has the meaning specified in Section 4.05(c)(ii).

11

 

     “Consenting Lenders” has the meaning specified in Section 4.07(b).

     “Consolidated Tangible Net Worth” means, on a consolidated basis, the
excess of (i) the sum of (x) the preferred stock and common stockholders’
equity of Parent and (y) the cumulative amount by which Consolidated Tangible
Net Worth shall have been reduced by reason of non-cash write-downs of
long-term assets subsequent to December 31, 1997, over (ii) the intangible
assets of Parent and its consolidated Subsidiaries.

     “Contingent Guaranty” has the meaning specified in the definition of the
term “Guaranty” contained in this Section 1.01.

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

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

     “Debt” of any Person means, without duplication (i) indebtedness of such
Person for borrowed money or in respect of bankers’ acceptances, (ii)
obligations of such Person (other than any portion of any trade payable
obligation of such Person which shall not have remained unpaid for 91 days or
more from the later of (A) the original due date of such portion and (B) the
customary payment date in the industry and relevant market for such portion) to
pay the deferred purchase price of property or services, (iii) obligations of
such Person as lessee under leases which shall have been or should be, in
accordance with GAAP, recorded as capital leases, and (iv) Overdue
Reimbursement Obligations; provided, however, that, with respect to Parent and
its Subsidiaries, where any such indebtedness or obligation of such Person is
made jointly, or jointly and severally, with any third party or parties, which
are not Parent or any of its Subsidiaries, the amount thereof for the purposes
of this definition only shall be the pro rata portion thereof payable by Parent
or such Subsidiary, so long as such third party or parties have not defaulted
on its or their joint and several portions thereof; and provided further that
the following shall not at any time constitute Debt: (1) obligations of such
Person to reimburse a bank or other Person in respect of amounts paid under a
letter of credit or similar instrument that are not Overdue Reimbursement
Obligations, (2) Project Financing, and (3) amounts borrowed by Parent or its
consolidated Subsidiaries under life insurance policies issued to one or more
of the foregoing and covering employees or former employees of one or more of
the foregoing not in excess of the cash surrender value of such policies.

     “Debt Rating” means, as of any date of determination, the rating as
determined by either S&P or Moody’s (collectively, the “Debt Ratings”) of
Parent’s non-credit-enhanced, senior unsecured long-term debt; provided that if
a Debt Rating is issued by each of the foregoing rating agencies, then the
higher of such Debt Ratings shall apply (with the Debt Rating for Pricing Level
I (as set forth on Schedule 1.01) being the highest and the Debt Rating for
Pricing Level VI (as set forth on Schedule 1.01) being the lowest), unless
there is a split in Debt Ratings of more than one level, in which case the
pricing level that is one level lower than the pricing level of the higher Debt
Rating shall apply.

12

 

     “Debtor Relief Laws” means the Bankruptcy Code of the United States, and
all other liquidation, conservatorship, bankruptcy, assignment for the benefit
of creditors, moratorium, rearrangement, receivership, insolvency,
reorganization, or similar debtor relief Laws of the United States or other
applicable jurisdictions from time to time in effect and affecting the rights
of creditors generally and with respect to the Canadian Borrowers, the
Bankruptcy and Insolvency Act (Canada), the Companies’ Creditors Arrangement
Act (Canada), the Winding-up Act (Canada) and all other liquidation,
conservatorship, bankruptcy, assignment for the benefit of creditors,
moratorium, rearrangement, receivership, insolvency, reorganization, or similar
debtor relief Laws of Canada or other applicable jurisdictions from time to
time in effect and affecting the rights of creditors generally.

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

     “Defaulting Lender” means a Canadian Defaulting Lender or a US Defaulting
Lender.

     “Direct Credit Substitute” has the meaning contemplated within (i) the
Guideline No. A. dated October 1995 and issued by the Office of the
Superintendent of Financial Institutions Canada on Capital Adequacy
Requirements, as amended or replaced by any successor guidelines from time to
time, when used with respect to any Canadian Letter of Credit, or (ii) Appendix
A to 12 CFR 208, when used with respect to any US Letter of Credit.

     “Effective Date” means the first date on which all the conditions to
effectiveness of this Agreement set forth in Section 6.01 shall have been
satisfied or waived in accordance with Section 12.01.

     “Eligible Assignee” means, with respect to any particular assignment under
Section 12.07, any bank or other entity approved in writing, expressly with
respect to such assignment, by, in the case of an assignment under the US
Facility, the US Swing Line Lender and each US L/C Issuer, and, in the case of
an assignment under the Canadian Facility, the Canadian Swing Line Lender and
each Canadian L/C Issuer, and in each case above, by Parent, and, except as to
such an assignment by JPMCB so long as JPMCB is the Administrative Agent
hereunder, by the Administrative Agent, provided that approval by Parent, the
Administrative Agent, the US Swing Line Lender, the Canadian Swing Line Lender
and the L/C Issuers shall not be unreasonably withheld, and provided further
that no such approval by Parent shall be necessary if (i) the assignee is a
Lender Affiliate, (ii) the assignee was a Lender immediately prior to such
assignment, or (iii) an Event of Default shall then be continuing.

     “Equity Interests” means any capital stock, partnership, joint venture,
member or limited liability or unlimited liability company interest, beneficial
interest in a trust or similar entity or other equity interest or investment of
whatever nature.

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

13

 

     “ERISA Affiliate” means any Person who is a member of Parent’s controlled
group within the meaning of Section 4001(a)(14)(A) of ERISA.

     “Event of Default” has the meaning specified in Section 9.01.

     “Existing Canadian Credit Agreement” means the Canadian Credit Agreement
dated as of March 31, 2000, as amended and restated through the Effective Date,
among the Canadian Borrowers, Parent, the financial institutions party thereto
and JPMorgan Chase Bank, Toronto branch, as administrative agent for such
financial institutions.

     “Existing US Long-Term Revolving Credit Agreement” means the Long-Term
Revolving Credit Agreement dated as of February 25, 1998, as amended and
restated through the Effective Date, among Parent, the financial institutions
party thereto and JPMorgan Chase Bank, as administrative agent for such
financial institutions.

     “Existing US Short-Term Revolving Credit Agreement” means the Short-Term
Revolving Credit Agreement dated as of February 25, 1998, as amended and
restated through the Effective Date, among Parent, the financial institutions
party thereto and JPMorgan Chase Bank, as administrative agent for such
financial institutions.

     “Extension Effective Date” has the meaning specified in Section 4.07(b).

     “Extension Required Lenders” means Lenders constituting the Required
Lenders, prior to giving effect to any replacements of Lenders permitted
herein, and provided that the Commitment of, and the portion of Total
Outstandings held or deemed held by, Lenders that have failed to consent to any
prior request for an extension of the Maturity Date pursuant to this Agreement
shall be excluded for purposes of making a determination of Extension Required
Lenders.

     “Facilities” means the US Facility and the Canadian Facility,
collectively.

     “Facility Fee” means the US Facility Fee and the Canadian Facility Fee,
collectively.

     “Federal Funds Rate” means, for any day, the rate per annum equal to the
weighted average of the rates on overnight Federal funds transactions with
members of the Federal Reserve System arranged by Federal funds brokers on such
day, as published by the Federal Reserve Bank of New York on the Business Day
next succeeding such day; provided that (a) if such day is not a Business Day,
the Federal Funds Rate for such day shall be such rate on such transactions on
the next preceding Business Day as so published on the next succeeding Business
Day, and (b) if no such rate is so published on such next succeeding Business
Day, the Federal Funds Rate for such day shall be the average rate (rounded
upward, if necessary, to a whole multiple of 1/100 of 1%) charged to the
Administrative Agent on such day on such transactions as determined by the
Administrative Agent.

     “Fee Letter” means (i) with respect to the Administrative Agent fee and
the arrangement fees of JPMS, the letter agreement, dated June 14, 2004, among
the Borrowers, JPMCB and JPMS, (ii) with respect to the arrangement fees of
Bank of America, the letter agreement, dated June 14, 2004, between the
Borrowers and Bank of America, and (iii) with respect to

14

 

participation fees, the Joint Fee Letter, dated June 14, 2004, among the
Borrowers, JPMCB, Bank of America and the Joint Lead Arrangers.

     “Financing Documents” means this Agreement, each Note, if any, each Issuer
Document, each Fee Letter and the BAs.

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

     “GAAP” means generally accepted accounting principles in the United States
set forth in the opinions and pronouncements of the Accounting Principles Board
and the American Institute of Certified Public Accountants and statements and
pronouncements of the Financial Accounting Standards Board or such other
principles as may be approved by a significant segment of the accounting
profession in the United States, that are applicable to the circumstances as of
the date of determination, consistently applied.

     “Governmental Authority” means the government of the United States of
America, any other nation or any political subdivision thereof, whether state
or local, and any agency, authority, instrumentality, regulatory body, court,
central bank or other entity exercising executive, legislative, judicial,
taxing, regulatory or administrative powers or functions of or pertaining to
government.

     “Guaranteed Parties” means the Administrative Agent, the Joint Lead
Arrangers, the Lenders and each other Person to whom any of the Obligations are
or shall be owed.

     “Guarantor” means each of (i) Parent, in its capacity as guarantor of the
Obligations of BRCL and Canadian Hunter, (ii) BRCL, in its capacity as
guarantor of the Obligations of Canadian Hunter, and (iii) Canadian Hunter, in
its capacity as guarantor of the Obligations of BRCL, and “Guarantors” means,
collectively, all of the foregoing.

     “Guaranty”, means any act by which a Person assumes, guarantees, endorses
or otherwise incurs direct or contingent liability in connection with, or
agrees to purchase or otherwise acquire or otherwise assures a creditor against
loss in respect of, any Debt or Project Financing of any Person other than
Parent or any of its consolidated Subsidiaries (excluding (i) any liability by
endorsement of negotiable instruments for deposit or collection or similar
transactions in the ordinary course of business, (ii) any liability in
connection with obligations of the Parent or any of its consolidated
Subsidiaries, including obligations under any conditional sales agreement,
equipment trust financing or equipment lease, (iii) any liability or other act
of Parent or any of its consolidated Subsidiaries under arrangements entered
into in connection with this Agreement, and (iv) any such act in connection
with a Project Financing that either (A) guarantees to the provider of such
Project Financing or any other Person performance of the acquisition,
improvement, installation, design, engineering, construction, development,
completion, maintenance or operation of, or otherwise affects any such act in
respect of, all or any portion of the project that is financed by such Project
Financing or performance by a Project Financing Subsidiary of certain
obligations to Persons other than the provider of such Project Financing,
except during any period, and then only to the extent, that such guaranty is a
direct guaranty of payment of such Project Financing (other than a guaranty of
payment of the type

15

 

referred to in subclause (B) below) or (B) is contingent upon, or the
obligation to pay or perform under which is contingent upon, the occurrence or
existence of any event or condition other than or in addition to (1) the
passage of time, (2) any Project Financing becoming due, (3) the commencement
of bankruptcy, insolvency or similar proceedings by the obligor on any Project
Financing or (4) the failure of the obligor on any Project Financing to satisfy
a financial ratio, covenant or other similar financial measurement test, but
only during such period as such act is not by its terms presently enforceable,
or if so enforceable, there is not a reasonable probability that the guarantor
will be called upon to perform thereunder (or to make capital contributions in
lieu of performance thereunder) (any such act referred to in this clause (iv)
being a “Contingent Guaranty”)); provided, however, that for the purposes of
this definition the liability of the Borrowers, Parent or any of their
Subsidiaries with respect to any obligation as to which a third party or
parties are jointly, or jointly and severally, liable as a guarantor or
otherwise as contemplated hereby and have not defaulted on its or their
portions thereof, shall be only its pro rata portion of such obligation.
“Guaranteed” and “Guaranteeing” have meanings correlative thereto.

     “Indemnified Parties” has the meaning specified in Section 12.04(b).

     “Initial Fee” has the meaning specified in Section 3.08(b)(vi)(B).

     “Insufficiency” means, with respect to any Plan, the amount, if any, of
its unfunded benefit liabilities, as defined in Section 4001(a)(18) of ERISA.

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

     “Interest Period” means (a) as to each US Dollar Eurodollar Rate Loan,
each Canadian C$ Eurodollar Rate Loan and each Canadian US$ Eurodollar Rate
Loan, the period commencing on the date such Loan is disbursed or (in the case
of any US Eurodollar Rate Committed Loan or Canadian Eurodollar Rate Committed
Loan) converted to or continued as a US Eurodollar Rate Committed Loan or a
Canadian Eurodollar Rate Committed Loan, respectively, and ending on the date
one, two, three, six or, if available to each US Lender or each Canadian
Lender, as applicable, nine or twelve months thereafter, as selected by the
applicable Borrower in its Committed Borrowing Notice or Bid Request, as the
case may be; and (b) as to each US Absolute Rate Loan and each Canadian
Absolute Rate Loan, a period of not less than 14 days and not more than 180
days, as selected by the applicable Borrower in its Bid Request; provided that:

16

 

          (i) any Interest Period that would otherwise end on a day that
is not a Business Day shall be extended to the next succeeding
Business Day unless, in the case of a US Dollar Eurodollar Rate
Loan, Canadian C$ Eurodollar Rate Loan or a Canadian US$ Eurodollar
Rate Loan, such Business Day falls in another calendar month, in
which case such Interest Period shall end on the next preceding
Business Day;

          (ii) any Interest Period pertaining to a US Dollar Eurodollar
Rate Loan, Canadian C$ Eurodollar Rate Loan or a Canadian US$
Eurodollar Rate Loan that begins on the last Business Day of a
calendar month (or on a day for which there is no numerically
corresponding day in the calendar month at the end of such Interest
Period) shall end on the last Business Day of the calendar month at
the end of such Interest Period; and

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

     “IRS” means the United States Internal Revenue Service.

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

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

     “Joinder Agreement” has the meaning specified in Section 4.08(a).

     “Joint Lead Arrangers” means JPMS and BAS, in their capacities as co-lead
arrangers and bookrunners for the Facilities.

     “JPMCB” means JPMorgan Chase Bank.

     “JPMCB Canada” means JPMorgan Chase Bank, Toronto Branch.

     “JPMS” means J.P. Morgan Securities Inc.

     “Judgment Currency” has the meaning specified in Section 3.10(b).

     “L/C Credit Extension” means a US L/C Credit Extension or a Canadian L/C
Credit Extension.

     “L/C Obligations” means, collectively, the US L/C Obligations and the
Canadian L/C Obligations.

17

 

     “L/C Issuer” means a US L/C Issuer or a Canadian L/C Issuer.

     “Laws” means, collectively, all international, foreign, federal, state,
provincial and local statutes, treaties, rules, guidelines, regulations,
ordinances, codes and administrative or judicial precedents or authorities,
including the interpretation or administration thereof by any Governmental
Authority charged with the enforcement, interpretation or administration
thereof, and all applicable administrative orders, directed duties, requests,
licenses, authorizations and permits of, and agreements with, any Governmental
Authority.

     “Lender Affiliate” means, with respect to any Lender, (a) an Affiliate of
such Lender or (b) any entity (whether a corporation, partnership, trust or
otherwise) that is engaged in making, purchasing, holding or otherwise
investing in bank loans and similar extensions of credit in the ordinary course
of its business and is administered or managed by a Lender or an Affiliate of
such Lender (with such Lender or Affiliate having the sole right and
responsibility with respect to the approval of amendments and waivers to this
Agreement, the Notes, and to the extent applicable, each other Financing
Document, and all related agreements and instruments entered into from time to
time).

     “Lender Funding Affiliate” means, with respect to any Canadian Lender and
the funding of a Canadian Loan in the United States pursuant to such Lender’s
Canadian Commitment, a branch or an Affiliate of such Canadian Lender through
which such Canadian Loan will be so funded in the United States.

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

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

     “Letter of Credit” means a US Letter of Credit or a Canadian Letter of
Credit.

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

     “Lien” means any lien, security interest or other charge or encumbrance,
or any assignment of the right to receive income, or any other type of
preferential arrangement, in each case to secure any Debt or any Guaranty of
any Person; provided that (i) the creation of interests in property of the
character commonly referred to as a “royalty interest” or “overriding royalty
interest”, farmouts, joint operating or unitization agreements, or other
similar transactions in the ordinary course of business and (ii) borrowings
under life insurance policies as described in clause (4) of the proviso to the
definition of “Debt” shall not be deemed to create a Lien.

     “LL&E” means The Louisiana Land and Exploration Company, a Maryland
corporation and a wholly-owned Subsidiary of Parent.

18

 

     “Loan” means a US Loan or a Canadian Loan.

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

     “Margin Stock” means “margin stock” as defined in Regulation U of the
Board of Governors of the United States Federal Reserve System, as in effect
from time to time.

     “Material Adverse Effect” means a material adverse effect on the financial
condition or operations of Parent and its consolidated Subsidiaries on a
consolidated basis.

     “Material Plan” means any Plan the assets of which exceed US $50,000,000
or the liabilities of which for unfunded vested benefits determined on a plan
termination basis (in accordance with Title IV of ERISA) exceed US $10,000,000.

     “Material Subsidiary” means, from time to time, any Subsidiary of Parent
(other than a Project Financing Subsidiary) then owning assets (determined on a
consolidated basis) that equal or exceed 10% of the book value of the
consolidated assets of Parent and its consolidated Subsidiaries at such time;
provided that the term “Material Subsidiary” shall always include each of the
Canadian Borrowers and their successors.

     “Maturity Date” means the later of (a) July 29, 2009, and (b) if maturity
is extended pursuant to Section 4.07, such extended maturity date as determined
pursuant to Section 4.07 (it being understood and agreed that any such maturity
shall not be deemed extended for any Lender that has not consented to such
extension).

     “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 Parent 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,
such plan being maintained pursuant to one or more collective bargaining
agreements.

     “Multiple Employer Plan” means a single employer plan, as defined in
Section 4001(a)(15) of ERISA, which (i) is maintained for employees of Parent
or an ERISA Affiliate and at least one Person other than the Borrowers, Parent
and its ERISA Affiliates or (ii) was so maintained and in respect of which
Parent or an ERISA Affiliate could have liability under Section 4064 or 4069 of
ERISA in the event such plan has been or were to be terminated.

     “Note” means a US Note or a Canadian Note.

     “Obligations” means all advances to, and debts, liabilities, obligations,
covenants and duties of, any Loan Party arising under any Financing Document or
otherwise with respect to any Loan or Letter of Credit, whether direct or
indirect (including those acquired by assumption), absolute or contingent, due
or to become due, now existing or hereafter arising, including the due and
punctual payment by the Borrowers of the principal of and interest on the
Loans, each payment required to be made by the Borrowers under this Agreement
in respect of any Letter of Credit, including payments in respect of
reimbursement of disbursements, interest thereon and

19

 

obligations to provide cash collateral, and all other monetary obligations
of the Loan Parties (including monetary obligations that accrue after the
commencement by or against any Loan Party or any Affiliate thereof of any
proceeding under any Debtor Relief Laws naming such Person as the debtor in
such proceeding, regardless of whether such obligations are allowed claims in
such proceeding).

     “Old System Issuers” has the meaning specified in Section 3.08(b)(iv).

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

     “Original Effective Date” means February 25, 1998.

     “Other Currency” has the meaning specified in Section 3.10(a).

     “Other Taxes” has the meaning specified in Section 5.01(b).

     “Outstanding Amount” means (i) with respect to US Committed Loans, US Bid
Loans, and US Swing Line Loans on any date, the aggregate outstanding principal
amount thereof after giving effect to any borrowings and prepayments or
repayments of US Committed Loans, US Bid Loans and US Swing Line Loans, as the
case may be, occurring on such date; (ii) with respect to any US L/C
Obligations on any date, the amount of such US L/C Obligations on such date
after giving effect to any US L/C Credit Extension occurring on such date and
any other changes in the aggregate amount of the US L/C Obligations as of such
date, including as a result of any reimbursements of outstanding unpaid
drawings under any US Letters of Credit or any reductions in the maximum amount
available for drawing under US Letters of Credit taking effect on such date;
(iii) with respect to Canadian Committed Loans (including Bankers’
Acceptances), Canadian Bid Loans, and Canadian Swing Line Loans on any date,
the aggregate outstanding principal amount (or, in the case of Bankers’
Acceptances, the aggregate outstanding face amount) thereof after giving effect
to any borrowings and prepayments or repayments of Canadian Committed Loans,
Canadian Bid Loans, and Canadian Swing Line Loans, as the case may be, and all
acceptances, maturities and rollovers of Bankers’ Acceptances, occurring on
such date; and (iv) with respect to any Canadian L/C Obligations on any date,
the amount of such Canadian L/C Obligations on such date after giving effect to
any Canadian L/C Credit Extension occurring on such date and any other changes
in the aggregate amount of the Canadian L/C Obligations as of such date,
including as a result of any reimbursements of outstanding unpaid drawings
under any Canadian Letters of Credit or any reductions in the maximum amount
available for drawing under Canadian Letters of Credit taking effect on such
date.

20

 

     “Overdue Reimbursement Obligations” means, with respect to any Person,
non-contingent obligations of such Person to reimburse a bank or other Person
in respect of amounts paid under a letter of credit or similar instrument that
are not paid on or prior to the fifth Business Day after the due date therefor.

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

     “PBGC” means the Pension Benefit Guaranty Corporation (or any successor).

     “Permitted Assets” means (i) hydrocarbon or other reserves (including
proved, probable, possible or speculative reserves), (ii) properties, assets,
rights or business related to reserves (including real property, gathering
systems, plants, pipelines, equipment and processing and treatment facilities),
(iii) other fixed or operating assets and (iv) Equity Interests in any and all
Business Entities that are or become Subsidiaries of a Canadian Borrower or
Parent owning assets referred to in any of the foregoing clauses.

     “Permitted Claims” has the meaning specified in Section 12.10.

     “Permitted Liens” means:

     (i) inchoate Liens and charges imposed by law and incidental to
construction, maintenance, development or operation of properties, or the
operation of business, in the ordinary course of business if payment of the
obligation secured thereby is not yet overdue or if the validity or amount
thereof is being contested in good faith by Parent or any of its Subsidiaries;

     (ii) Liens for taxes, assessments, obligations under workers’ compensation
or other social security legislation or other governmental requirements,
charges or levies, in each case not yet overdue or if the validity or amount
thereof is being contested in good faith by Parent or any of its Subsidiaries;

     (iii) Liens reserved in any oil, gas or other mineral lease entered into
in the ordinary course of business for rent, royalty or delay rental under such
lease and for compliance with the terms of such lease;

     (iv) easements, servitudes, rights-of-way and other rights, exceptions,
reservations, conditions, limitations, covenants and other restrictions which
do not materially interfere with the operation, value or use of the properties
affected thereby;

     (v) conventional provisions contained in any contracts or agreements
affecting properties under which Parent or any of its Subsidiaries is required
immediately before the expiration, termination or abandonment of a particular
property to reassign to such Person’s predecessor in title all or a portion of
such Person’s rights, titles and interests in and to all or a portion of such
property;

     (vi) any Lien reserved in a grant or conveyance in the nature of a
farm-out or conditional assignment to Parent or any of its Subsidiaries entered
into in the ordinary course of

21

 

business on reasonable terms to secure undertakings of Parent or any such
Subsidiary in such grant or conveyance;

     (vii) any Lien consisting of (A) statutory landlord’s liens under leases
to which Parent or any of its Subsidiaries is a party or other Liens on leased
property reserved in leases thereof for rent or for compliance with the terms
of such leases, (B) rights reserved to or vested in any municipality or
governmental, statutory or public authority to control or regulate any property
of Parent or any of its Subsidiaries, or to use such property in any manner
which does not materially impair the use of such property for the purposes for
which it is held by Parent or any such Subsidiary, (C) obligations or duties to
any municipality or public authority with respect to any franchise, grant,
license, lease or permit and the rights reserved or vested in any governmental
authority or public utility to terminate any such franchise, grant, license,
lease or permit or to condemn or expropriate any property, and (D) zoning laws
and ordinances and municipal regulations;

     (viii) Liens securing payment of the Obligations; and

     (ix) any Lien on any assets (including Equity Interests and other
obligations) securing Debt incurred or assumed for the purpose of financing all
or any part of the cost of acquiring, improving, installing, designing,
engineering, developing (including drilling) or constructing such assets,
provided that such Lien attaches to such assets concurrently with or within 360
days after the acquisition or completion of development, construction or
installation thereof or improvement thereto.

     “Person” means a natural person, a Business Entity, a Governmental
Authority or any other entity.

     “Plan” means a Single Employer Plan or a Multiple Employer Plan.

     “Pro Rata Share” means, (a) with respect to each Lender and the Credit
Extensions at any time, a fraction (expressed as a percentage and carried to
the ninth decimal place) the numerator of which is the amount of the Commitment
of such Lender at such time and the denominator of which is the Aggregate
Commitment at such time, (b) with respect to the US Credit Extensions of each
US Lender at any time, a fraction (expressed as a percentage and carried to the
ninth decimal place), the numerator of which is the amount of the US Commitment
of such Lender at such time and the denominator of which is the amount of the
Aggregate US Commitments at such time, and (c) with respect to the Canadian
Credit Extensions of each Canadian Lender at any time, a fraction (expressed as
a percentage and carried to the ninth decimal place), the numerator of which is
the amount of the Canadian Commitment of such Canadian Lender at such time and
the denominator of which is the amount of the Aggregate Canadian Commitments at
such time; provided that if the commitment of each Lender to make Loans
(including the obligation to accept and purchase BAs) and the obligation of
each L/C Issuer to make L/C Credit Extensions have been terminated pursuant to
Section 9.02, then the Pro Rata Share of each Lender shall be determined based
on the Pro Rata Share of such Lender immediately prior to such termination and
after giving effect to any subsequent assignments made pursuant to the terms
hereof.

22

 

     “Project Financing” means any indebtedness or other obligation that, but
for clause (2) of the second proviso to the definition of term “Debt”, would
constitute Debt and is incurred to finance or refinance the acquisition,
improvement, installation, design, engineering, construction, development,
completion, maintenance or operation of, or otherwise in respect of, all or any
portion of any project, or any asset related thereto, and any Guaranty with
respect thereto, other than any portion of such indebtedness or other
obligation, or such Guaranty, permitting or providing for recourse against
Parent or any of its Subsidiaries other than (i) recourse to the Equity
Interests in, Debt or other obligations of, or assets of, one or more Project
Financing Subsidiaries and (ii) such recourse as exists under any Contingent
Guaranty.

     “Project Financing Subsidiary” means any Subsidiary of Parent whose
principal purpose is to incur Project Financing, or to become a direct or
indirect partner, member or other equity participant or owner in a Business
Entity with such principal purpose, and substantially all the assets of which
Subsidiary or Business Entity are limited to those assets being financed (or to
be financed), or the operation of which is being financed (or to be financed),
in whole or in part by a Project Financing or to Equity Interests in, or Debt
or other obligations of, one or more other such Subsidiaries or Business
Entities.

     “Register” has the meaning specified in Section 12.07(c).

     “Related Person” means, with respect to any member of the group comprised
of a particular Business Entity and its Affiliates and the respective
directors, officers, employees or agents of such Business Entity and its
Affiliates, each other member of such group.

     “Relevant Period” has the meaning specified in Section 4.01(e).

     “Request for Canadian Credit Extension” means (a) with respect to a
Canadian Committed Borrowing, or conversion or continuation of Canadian
Committed Loans (including Bankers’ Acceptances), a Canadian Committed
Borrowing Notice, (b) with respect to a Canadian Bid Loan, a Canadian Bid
Request, (c) with respect to a Canadian L/C Credit Extension, a Canadian Letter
of Credit Application, and (d) with respect to a Canadian Swing Line Loan, a
Canadian Swing Line Borrowing Notice.

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

     “Required Lenders” means, as of any date of determination, (i) for
purposes of voting with respect to the exercise of remedies under Section
9.02(b), Lenders holding in the aggregate more than 50% of the Total
Outstandings (with the aggregate amount of each Lender’s risk participation and
funded participation in L/C Obligations and Swing Line Loans being deemed
“held” by such Lender for purposes of this definition), and (ii) for all other
purposes, Lenders having more than 50% of the Aggregate Commitments or, if the
commitment of each Lender to make Committed Loans and the obligation of each
L/C Issuer to make L/C Credit Extensions have been terminated pursuant to
Section 9.02, Lenders holding in the aggregate more than 50%

23

 

of the Total Outstandings (with the aggregate amount of each Lender’s risk
participation and funded participation in L/C Obligations and Swing Line Loans
being deemed “held” by such Lender for purposes of this definition); provided
that for purposes of clauses (i) and (ii) above, the Commitment of, and the
portion of the Total Outstandings held or deemed held by, any Defaulting Lender
shall be excluded for purposes of making a determination of Required Lenders.

     “Responsible Officer” means the chief executive officer, president, chief
financial officer, vice president-corporate finance, vice president-finance, or
treasurer of a Loan Party.

     “S&P” means Standard & Poor’s, a division of The McGraw-Hill Companies,
Inc.

     “Single Employer Plan” means a single employer plan, as defined in Section
4001(a)(15) of ERISA, that (i) is maintained for employees of Parent or an
ERISA Affiliate and no Person other than Parent and its ERISA Affiliates or
(ii) was so maintained and in respect of which Parent or an ERISA Affiliate
could have liability under Section 4069 of ERISA in the event such plan has
been or were to be terminated.

     “Subsidiary” means, as to any Person, any Business Entity of which shares
of stock or other Equity Interests having ordinary voting power (other than
stock or such other Equity Interests having such power only by reason of the
happening of a contingency) to elect a majority of the board of directors or
other managers of such Business Entity are at the time owned, directly or
indirectly through one or more Subsidiaries, or both, by such Person. Unless
otherwise qualified, all references to a “Subsidiary” or to “Subsidiaries” in
this Agreement shall refer to a Subsidiary or Subsidiaries of Parent.

     “Swing Line Loans” means, collectively, the US Swing Line Loans and the
Canadian Swing Line Loans.

     “Taxes” has the meaning specified in Section 5.01(a).

     “Termination Event” means (i) a “reportable event,” as such term is
described in Section 4043 of ERISA (other than a “reportable event” not subject
to the provision for 30-day notice to the PBGC), or an event described in
Section 4062(e) of ERISA, or (ii) the withdrawal of Parent or any ERISA
Affiliate from a Multiple Employer Plan during a plan year in which it was a
“substantial employer,” as such term is defined in Section 4001(a)(2) of ERISA,
or the incurrence of liability by Parent or any ERISA Affiliate under Section
4064 of ERISA upon the termination of a Multiple Employer Plan, or (iii) the
filing of a notice of intent to terminate a Plan or the treatment of a Plan
amendment as a termination under Section 4041 of ERISA, or (iv) the institution
of proceedings to terminate a Plan by the PBGC under Section 4042 of ERISA, or
(v) the conditions set forth in Section 302(f)(1)(A) and (B) of ERISA to the
creation of a lien upon property or rights to property of Parent or any ERISA
Affiliate for failure to make a required payment to a Plan are satisfied, or
(vi) the adoption of an amendment to a Plan requiring the provision of security
to such Plan, pursuant to Section 307 of ERISA, or (vii) any other event or
condition which might constitute grounds under Section 4042 of ERISA for the
termination of, or the appointment of a trustee to administer, any Plan.

24

 

     “Total Canadian Outstandings” means the aggregate Outstanding Amount of
all Canadian Loans (including all Bankers’ Acceptances) and all Canadian L/C
Obligations.

     “Total Outstandings” means the aggregate amount of all Total US
Outstandings and all Total Canadian Outstandings.

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

     “Transactions” means the execution, delivery and performance by the
Canadian Borrowers and Parent (as applicable) of this Agreement and the other
Financing Documents and the Credit Extensions contemplated hereby and the
guaranties provided for under Article X.

     “Type” means (i) with respect to a US Committed Loan, its character as a
US Base Rate Committed Loan or a US Eurodollar Rate Committed Loan, (ii) with
respect to a US Bid Loan, its character as a US Absolute Rate Loan or a US
Eurodollar Margin Bid Loan, (iii) with respect to a Canadian Committed Loan,
its character as a Canadian Prime Rate Committed Loan, a Canadian Base Rate
Committed Loan, a Canadian C$ Eurodollar Rate Committed Loan, a Canadian US$
Eurodollar Rate Committed Loan or a BA, (iv) with respect to a Canadian Bid
Loan, its character as a Canadian C$ Absolute Rate Loan, a Canadian US$
Absolute Rate Loan, a Canadian C$ Eurodollar Margin Bid Loan or a Canadian US$
Eurodollar Margin Bid Loan.

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

     “US Absolute Rate Loan” means a US Bid Loan that bears interest at a rate
determined with reference to an Absolute Rate.

     “US Base Rate” means for any day a fluctuating rate per annum equal to the
higher of (a) the Federal Funds Rate plus 50 Basis Points and (b) the rate of
interest in effect for such day as publicly announced from time to time by the
Administrative Agent as its “base rate” or “prime rate.” The “base rate” or
“prime rate” is a rate set by the Administrative Agent based upon various
factors including the Administrative Agent’s costs and desired return, general
economic conditions and other factors, and is used as a reference point for
pricing some loans, which may be priced at, above, or below such announced
rate. Any change in such rate announced by the Administrative Agent shall take
effect at the opening of business on the day specified in the public
announcement of such change.

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

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

     “US Bid Borrowing” means a borrowing consisting of simultaneous US Bid
Loans of the same Type in US Dollars from each of the US Lenders whose offer to
make one or more US Bid Loans as part of such borrowing has been accepted under
the auction bidding procedures described in Section 2.03.

     “US Bid Loan” has the meaning specified in Section 2.03(a).

25

 

     “US Bid Loan Lender” means, in respect of any US Bid Loan, the US Lender
making such US Bid Loan to the US Facility Borrower.

     “US Bid Request” means a written request for one or more US Bid Loans
substantially in the form of Exhibit B(US)-1.

     “US Borrowing” means a US Committed Borrowing, a US Bid Borrowing or a US
Swing Line Borrowing, as the context may require.

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

     “US Committed Borrowing” means a borrowing consisting of simultaneous US
Committed Loans of the same Type and, in the case of US Eurodollar Rate
Committed Loans, having the same Interest Period, made by each of the US
Lenders pursuant to Section 2.01.

     “US Committed Borrowing Notice” means a notice of (a) a US Committed
Borrowing, (b) a conversion of US Committed Loans from one Type to another, or
(c) a continuation of US Eurodollar Rate Committed Loans, in each case,
pursuant to Section 2.02(a), which notice, if in writing, shall be
substantially in the form of Exhibit A(US).

     “US Committed Loan” has the meaning specified in Section 2.01.

     “US Competitive Bid” means a written offer by a Lender to make one or more
US Bid Loans, substantially in the form of Exhibit B(US)-2, duly completed and
signed by a Lender.

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

     “US Defaulting Lender” means any US Lender that (a) has failed to fund any
portion of a US Committed Loan, a participation in a US L/C Obligation or a
participation in a US Swing Line Loan required to be funded or purchased by it
hereunder within one Business Day of the date required to be funded or
purchased by it hereunder, if such failure has not been cured, (b) has
otherwise failed to pay over to the Administrative Agent or any other Lender
any other amount required to be paid by it hereunder (unless such failure is
the subject of a good faith dispute) within one Business Day of the date when
due, if such failure has not been cured, or (c) has been deemed insolvent or
has become the subject of a bankruptcy or insolvency proceeding.

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

     “US Dollar Equivalent” means, on any date of determination, the equivalent
in US Dollars of any value or sum denominated in Canadian Dollars using the
rate of exchange quoted by Bank of Canada on the Business Day preceding the day
as of which any determination of

26

 

such rate is required to be made under the terms hereof as the noon
mid-market spot rate for conversions of Canadian Dollars into US Dollars.

     “US Dollar Eurodollar Rate” means for any Interest Period with respect to
a US Dollar Eurodollar Rate Loan or a Canadian US$ Eurodollar Rate Loan:

          (a) the rate per annum equal to the rate (carried to the fifth
decimal place) determined by the Administrative Agent to be the offered
rate that appears on the page of the Telerate screen (or any successor
thereto) that displays an average British Bankers Association Interest
Settlement Rate for deposits in US Dollars (for delivery on the first day
of such Interest Period) with a term equivalent to such Interest Period,
determined as of approximately 11:00 a.m. (London time) two Business Days
prior to the first day of such Interest Period, or

          (b) if the rate referenced in the preceding clause (a) does not
appear on such page or service or such page or service shall not be
available, the rate per annum (carried to the fifth decimal place) equal
to the rate determined by the Administrative Agent to be the offered rate
on such other page or other service that displays an average British
Bankers Association Interest Settlement Rate for deposits in US Dollars
(for delivery on the first day of such Interest Period) with a term
equivalent to such Interest Period, determined as of approximately 11:00
a.m. (London time) two Business Days prior to the first day of such
Interest Period, or

          (c) if the rates referenced in the preceding clauses (a) and (b) are
not available, the rate per annum determined by the Administrative Agent
as the rate of interest at which deposits in US Dollars for delivery on
the first day of such Interest Period in same day funds in the
approximate amount of the US Dollar Eurodollar Rate Loan or Canadian US$
Eurodollar Rate Loan being made, continued or converted by the
Administrative Agent (or, in the case of a US Eurodollar Margin Bid Loan,
the applicable US Bid Loan Lender, or, in the case of a Canadian US$
Eurodollar Margin Bid Loan, the applicable Canadian Bid Loan Lender) and
with a term equivalent to such Interest Period would be offered by the
Administrative Agent’s London branch to major banks in the London
interbank eurodollar market at their request at approximately 4:00 p.m.
(London time) two Business Days prior to the first day of such Interest
Period.

     “US Dollar Eurodollar Rate Loan” means a US Eurodollar Rate Committed Loan
or a US Eurodollar Margin Bid Loan.

     “US Eurodollar Bid Margin” means the margin above or below the US Dollar
Eurodollar Rate to be added to or subtracted from the US Dollar Eurodollar
Rate, which margin shall be expressed in multiples of 1/100th of one Basis
Point.

     “US Eurodollar Margin Bid Loan” means a US Bid Loan that bears interest at
a rate based upon the US Dollar Eurodollar Rate.

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

27

 

     “US Facility” means, collectively, the financing facilities provided for
under Article II.

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

     “US Facility Fee” has the meaning specified in Section 4.02(a)(i).

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

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

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

     “US L/C Issuer” means any of (i) JPMCB, (ii) Bank of America and (iii) any
other US Lender that may issue US Letters of Credit hereunder, as mutually
agreed to by Administrative Agent, US Facility Borrower and such Lender, in
such Person’s capacity as issuer of US Letters of Credit hereunder, or any
successor issuer of US Letters of Credit hereunder.

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

     “US Lender” means a Lender with a US Commitment or outstanding US Loans,
US L/C Advances or participations in US Swing Line Loans.

     “US Letter of Credit” means any letter of credit issued by a US L/C Issuer
for the account of the US Facility Borrower under Article III hereof. A US
Letter of Credit may be a commercial letter of credit or a standby letter of
credit.

     “US Letter of Credit Application” means an application and agreement for
the issuance or amendment of a US Letter of Credit in the form acceptable to
the US Facility Borrower and the applicable US L/C Issuer, which may be in the
standard form of such US L/C Issuer, such form to be modified as agreed to by
the US Facility Borrower and such US L/C Issuer to conform the nature, scope
and extent of the rights and obligations of the parties thereto set forth
herein (and as generally reflected in Exhibit E-1, in the case of a standby US
Letter of Credit, and Exhibit E-2, in the case of a commercial US Letter of
Credit) and otherwise to conform the provisions thereof to the provisions
hereof. Without prejudice to Section 2.04(k), the forms of the standby and
commercial Letter of Credit applications attached hereto as Exhibit E-1 and
E-2, as applicable, shall be deemed to satisfy the foregoing requirements as to
conformity.

     “US Letter of Credit Fee” has the meaning specified in Section 2.04(i).

28

 

     “US Letter of Credit Sublimit” means, as at any date of determination, an
amount equal to US $750,000,000 (as such amount may be increased pursuant to
Section 4.08 or reduced pursuant to Section 4.09) minus the aggregate amount of
Canadian L/C Obligations then outstanding. The US Letter of Credit Sublimit is
part of, and not in addition to, the Aggregate US Commitments.

     “US Loan” means an extension of credit by a Lender to the US Facility
Borrower pursuant to Article II in the form of a US Committed Loan, a US Bid
Loan or a US Swing Line Loan.

     “US Note” means a promissory note made by the US Facility Borrower in
favor of any US Lender requesting such a note evidencing US Loans made by such
Lender, substantially in the form of Exhibit D-1.

     “US Obligations” means all Obligations other than Canadian Obligations.

     “US Required Lenders” means, as of any date of determination, US Lenders
having more than 50% of the Aggregate US Commitments or, if the commitment of
each US Lender to make US Committed Loans and the obligation of each US L/C
Issuer to make US L/C Credit Extensions have been terminated pursuant to
Section 9.02, US Lenders holding in the aggregate more than 50% of the Total US
Outstandings (with the aggregate amount of each US Lender’s risk participation
and funded participation in US L/C Obligations and US Swing Line Loans being
deemed “held” by such Lender for purposes of this definition); provided that
the US Commitment of, and the portion of the Total US Outstandings held or
deemed held by, any Defaulting Lender shall be excluded for purposes of making
a determination of US Required Lenders.

     “US Swing Line” means the revolving credit facility made available by the
US Swing Line Lender pursuant to Section 2.05.

     “US Swing Line Borrowing” means a borrowing of a US Swing Line Loan
pursuant to Section 2.05.

     “US Swing Line Borrowing Notice” means a notice of a US Swing Line
Borrowing pursuant to Section 2.05(b), which, if in writing, shall be
substantially in the form of Exhibit C(US).

     “US Swing Line Lender” means JPMCB or any other US Lender that may provide
US Swing Line Loans hereunder, as mutually agreed to by the Administrative
Agent and the US Facility Borrower, in such Person’s capacity as provider of US
Swing Line Loans hereunder, or any successor swing line lender hereunder.

     “US Swing Line Loan” has the meaning specified in Section 2.05(a).

     “US Swing Line Rate” means on any day a fluctuating rate of interest per
annum equal to the US Base Rate.

29

 

     “US Swing Line Sublimit” means an amount equal to US $40,000,000, as such
amount may be increased pursuant to Section 4.08 or reduced pursuant to Section
4.09. The US Swing Line Sublimit is part of, and not in addition to, the
Aggregate US Commitments.

     “US Unreimbursed Amount” has the meaning specified in Section 2.04(c)(ii).

     “Utilization Fee” has the meaning specified in Section 4.02(b).

     “Withdrawal Liability” shall have the meaning given such term under Part I
of Subtitle E of Title IV of ERISA.

     1.02 Terms Generally. The definitions of terms herein shall apply equally
to the singular and plural forms of the terms defined. Whenever the context
may require, any pronoun shall include the corresponding masculine, feminine
and neuter forms. The words “include”, “includes” and “including” shall be
deemed to be followed by the phrase “without limitation”. The word “will”
shall be construed to have the same meaning and effect as the word “shall”.
Unless the context requires otherwise (a) the term “document” includes any and
all instruments, documents, agreements, certificates, notices, reports,
financial statements and other writings, whether in physical or electronic
form, and any definition of or reference to a particular document shall be
construed as referring to such document as from time to time amended,
supplemented or otherwise modified (subject to any restrictions on such
amendments, supplements or modifications set forth herein), (b) any reference
herein to any Person shall be construed to include such Person’s successors and
assigns, (c) the words “herein”, “hereof” and “hereunder”, and words of similar
import, shall be construed to refer to this Agreement in its entirety and not
to any particular provision hereof, (d) all references herein to Articles,
Sections, Exhibits and Schedules shall be construed to refer to Articles and
Sections of, and Exhibits and Schedules to, this Agreement, (e) the words
“asset” and “property” shall be construed to have the same meaning and effect,
(f) all references herein to any Law shall include all statutory and regulatory
provisions consolidating, amending, replacing, supplementing or interpreting
such law and (g) in the computation of periods of time from a specified date to
a later specified date, the word “from” means “from and including;” the words
“to” and “until” each mean “to but excluding;” and the word “through” means “to
and including.” References herein to the taking of any action hereunder of an
administrative nature by any Borrower shall be deemed to include references to
Parent taking such action on such Borrower’s behalf, and the Administrative
Agent and the Lenders are expressly authorized to accept any such action taken
by Parent as having the same effect as if taken by such Borrower. Each
reference herein to the “knowledge” of Parent or any other Borrower shall be
deemed to be a reference to the knowledge of any Responsible Officer of Parent
or such other Borrower.

     1.03 Accounting Terms; GAAP. Except as otherwise expressly provided
herein, all terms of an accounting or financial nature and all financial data
(including financial ratios and calculations) shall be construed in accordance
with GAAP, as in effect from time to time; provided that, if any change in
GAAP, or in the application thereof, occurring after December 31, 2003, would
result in any provision hereof (including any covenant contained in Article
VIII and related definitions) being calculated or construed in a different
manner or with different results than if such provision were calculated or
construed in accordance with GAAP as in effect on December 31, 2003, the
Administrative Agent, the Lenders and the Borrowers agree,

30

 

upon request by Parent to the Administrative Agent or by the
Administrative Agent to Parent, to amend such provision (including the
covenants contained in Article VIII and related definitions) so that the
relative protection afforded thereby to the Lenders and the relative
flexibility afforded thereby to Parent and each other Borrower will in
substance be retained after such amendment; provided, however, that until such
amendment becomes effective hereunder, such provision (including the covenants
as set forth herein and related definitions) shall remain in full force and
effect, and those terms and accounting principles applicable to Parent and its
consolidated Subsidiaries in accordance with GAAP as in effect on December 31,
2003, shall be applied to determine whether or not Parent and each other
Borrower and their respective Subsidiaries are in compliance with such
covenants and other provisions.

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

     1.05 US Dollar Equivalent. Except for the purposes of determining any
amounts under Section 3.10, for the purpose of determining any amount relating
to any Commitment or any Obligation or any amount referred to in any
representation or warranty, covenant or Event of Default, where such amount is
the result of any mathematical calculation or equation or other determination
that includes amounts denominated in US Dollars, all relevant amounts included
in such calculation or equation that are denominated in Canadian Dollars shall
be calculated, as of such time of determination, at the US Dollar Equivalent
thereof.

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

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

     1.08 Determinations Made in Good Faith. All determinations hereunder made
by any party hereto shall be made in good faith.

ARTICLE II.

US FACILITY

     2.01 US Committed Loans. Subject to the terms and conditions set forth
herein, each US Lender severally agrees to make loans to the US Facility
Borrower from time to time (each such loan, a “US Committed Loan”), on any
Business Day during the Availability Period, provided, however, that after
giving effect to any US Committed Borrowing, (i) the Total US Outstandings
shall not exceed the Aggregate US Commitments and (ii) the aggregate
Outstanding Amount of the US Committed Loans of any US Lender, plus such
Lender’s Pro Rata Share of the Outstanding Amount of all US L/C Obligations,
plus such Lender’s Pro Rata Share

31

 

of the Outstanding Amount of all US Swing Line Loans shall not exceed the
US Commitment of such Lender. Within the limits of the US Commitment of each
US Lender, and subject to the other terms and conditions hereof, the US
Facility Borrower may borrow under this Section 2.01, prepay under Section
2.06, and reborrow under this Section 2.01. US Committed Loans may be US Base
Rate Committed Loans or US Eurodollar Rate Committed Loans, as further provided
herein.

     2.02 US Committed Borrowings; Conversions and Continuations of US
Committed Loans.

     (a) Each US Committed Borrowing, each conversion of US Committed Loans
from one Type to the other, and each continuation of US Eurodollar Rate
Committed Loans shall be made upon the US Facility Borrower’s irrevocable
(except as provided in Section 5.03(a)) notice to the Administrative Agent,
which may be given by telephone. Each such notice must be received by the
Administrative Agent not later than (i) 12:00 noon on the third Business Day
prior to the requested date of any borrowing of, conversion to or continuation
of US Eurodollar Rate Committed Loans or of any conversion of US Eurodollar
Rate Committed Loans to US Base Rate Committed Loans, and (ii) 10:00 a.m. on
the requested date of any borrowing of US Base Rate Committed Loans. Each
telephonic notice by the US Facility Borrower pursuant to this Section 2.02(a)
must be confirmed promptly by delivery to the Administrative Agent of a written
US Committed Borrowing Notice, appropriately completed and signed by a
Responsible Officer of the US Facility Borrower. Each borrowing of, conversion
to or continuation of US Eurodollar Rate Committed Loans shall be in a
principal amount of US $5,000,000 or a whole multiple of US $1,000,000 in
excess thereof. Except as provided in Sections 2.04(c) and 2.05(c), each
borrowing of or conversion to US Base Rate Committed Loans shall be in a
principal amount of US $1,000,000 or a whole multiple of US $1,000,000 in
excess thereof. Each US Committed Borrowing Notice (whether telephonic or
written) shall specify (i) whether the US Facility Borrower is requesting a US
Committed Borrowing, a conversion of US Committed Loans from one Type to
another, or a continuation of US Eurodollar Rate Committed Loans, (ii) the
requested date of the US Committed Borrowing, conversion or continuation, as
the case may be (which shall be a Business Day), (iii) the principal amount of
US Committed Loans to be borrowed, converted or continued, (iv) the Type of US
Committed Loans to be borrowed or to which existing US Committed Loans are to
be converted and (v) if applicable, the duration of the Interest Period with
respect thereto. If the US Facility Borrower fails to specify a Type of US
Committed Loan in a US Committed Borrowing Notice or if the US Facility
Borrower fails to give a timely notice requesting a conversion or continuation,
then the applicable US Committed Loans shall be made as, or converted to, US
Base Rate Committed Loans. Any such automatic conversion to US Base Rate
Committed Loans shall be effective as of the last day of the Interest Period
then in effect with respect to the applicable US Eurodollar Rate Committed
Loans. If the US Facility Borrower requests a borrowing of, conversion to, or
continuation of US Eurodollar Rate Committed Loans in any such US Committed
Borrowing Notice, but fails to specify an Interest Period, it will be deemed to
have specified an Interest Period of one month.

     (b) Following receipt of a US Committed Borrowing Notice, the
Administrative Agent shall promptly notify each US Lender of the amount of its
Pro Rata Share of the applicable US Committed Borrowing, and if no timely
notice of a conversion or continuation is provided by the US Facility Borrower,
the Administrative Agent shall notify each US Lender of

32

 

the details of any automatic conversion to US Base Rate Committed Loans
described in the preceding subsection. In the case of a US Committed
Borrowing, each US Lender shall make the amount of its US Committed Loan
available to the Administrative Agent in immediately available funds at the
Administrative Agent’s Office not later than 1:00 p.m. on the requested date of
the US Committed Borrowing specified in the applicable US Committed Borrowing
Notice. Upon satisfaction of the conditions set forth in Section 6.02, the
Administrative Agent shall make all funds so received available to the US
Facility Borrower in like funds as received by the Administrative Agent either
by (i) crediting the account of the US Facility Borrower on the books of the
Administrative Agent with the amount of such funds or (ii) wire transfer of
such funds, in each case in accordance with instructions provided to (and
reasonably acceptable to) the Administrative Agent by the US Facility Borrower;
provided, however, that if, on the requested or deemed requested date of any US
Committed Borrowing, there are US L/C Borrowings outstanding, then the proceeds
of such US Committed Borrowing shall be applied first to the payment in full of
any such US L/C Borrowings, and second, shall be made available to the US
Facility Borrower as provided above.

     (c) Except as otherwise provided herein, a US Eurodollar Rate Committed
Loan may be continued or converted only on the last day of an Interest Period
for such US Eurodollar Rate Committed Loan.

     2.03 US Bid Loans.

     (a) General. Subject to the terms and conditions set forth herein, each
US Lender agrees that the US Facility Borrower may from time to time request
the US Lenders to submit offers to make loans in US Dollars (each such loan, a
“US Bid Loan”), prior to the Maturity Date, pursuant to this Section 2.03 for
requested maturities and interest periods of (i) 14 to 180 days, in the case of
US Absolute Rate Loans, or (ii) 1, 2, 3 or 6 months, and to the extent
available to all US Lenders, 9 or 12 months, in the case of US Eurodollar
Margin Bid Loans, to the US Facility Borrower in US Dollars; provided, however,
that after giving effect to any US Bid Borrowing, the Total US Outstandings
shall not exceed the Aggregate US Commitments. US Bid Loans can be US Absolute
Rate Loans or US Eurodollar Margin Bid Loans. There shall not be more than
seven different Interest Periods in effect with respect to US Bid Loans at any
time.

     (b) Requesting US Competitive Bids. The US Facility Borrower may request
the submission of US Competitive Bids by delivering a US Bid Request to the
Administrative Agent not later than 12:00 noon (i) one Business Day prior to
the requested date of any US Bid Borrowing that is to consist of US Absolute
Rate Loans or (ii) four Business Days prior to the requested date of any US Bid
Borrowing that is to consist of US Eurodollar Margin Bid Loans. Each US Bid
Request shall specify (i) the requested date of the US Bid Borrowing (which
shall be a Business Day), (ii) the aggregate principal amount of US Bid Loans
requested (which must be US $5,000,000 or a whole multiple of US $1,000,000 in
excess thereof), (iii) the Type of US Bid Loans requested and (iv) the duration
of the Interest Period with respect thereto, and shall be signed by a
Responsible Officer of the US Facility Borrower. No US Bid Request shall
contain a request for (i) more than one Type of US Bid Loan or (ii) US Bid
Loans having more than three different Interest Periods.

33

 

     (c) Submitting US Competitive Bids.

          (i) The Administrative Agent shall promptly notify each US
Lender of each US Bid Request received by it from the US Facility
Borrower and the contents of such US Bid Request.

          (ii) Each US Lender may (but shall have no obligation to)
submit a US Competitive Bid containing an offer to make one or more
US Bid Loans in response to such US Bid Request. Such US
Competitive Bid must be delivered to the Administrative Agent not
later than 10:30 a.m. (A) on the requested date of any US Bid
Borrowing that is to consist of US Absolute Rate Loans, and (B)
three Business Days prior to the requested date of any US Bid
Borrowing that is to consist of US Eurodollar Margin Bid Loans;
provided, however, that any US Competitive Bid submitted by the
Administrative Agent in its capacity as a Lender in response to any
US Bid Request must be submitted directly to the US Facility
Borrower not later than 10:15 a.m. on the date on which US
Competitive Bids are required to be delivered by the other US
Lenders in response to such US Bid Request. Each US Competitive
Bid shall specify (A) the proposed date of the US Bid Borrowing;
(B) the principal amount of each US Bid Loan for which such US
Competitive Bid is being made, which principal amount (x) may be
equal to, greater than or less than the US Commitment of the
bidding Lender, (y) must be US $5,000,000 or a whole multiple of US
$1,000,000 in excess thereof, and (z) may not exceed the principal
amount of US Bid Loans for which US Competitive Bids were
requested; (C) if the proposed US Bid Borrowing is to consist of US
Absolute Rate Loans, the Absolute Rate offered for each such US Bid
Loan and the Interest Period applicable thereto; (D) if the
proposed US Bid Borrowing is to consist of US Eurodollar Margin Bid
Loans, the US Eurodollar Bid Margin with respect to each such US
Eurodollar Margin Bid Loan and the Interest Period applicable
thereto; and (E) the identity of the bidding Lender.

          (iii) Any US Competitive Bid shall be disregarded if it (A) is
received after the applicable time specified in clause (ii) above,
(B) is not substantially in the form of a US Competitive Bid as
specified herein, (C) contains qualifying, conditional or similar
language, (D) proposes terms other than or in addition to those set
forth in the applicable US Bid Request, or (E) is otherwise not
responsive to such US Bid Request. Any Lender may correct its US
Competitive Bid containing a manifest error by submitting a
corrected US Competitive Bid (identified as such) not later than
the applicable time required for submission of US Competitive Bids.
Any such submission of a corrected US Competitive Bid shall
constitute a revocation of the US Competitive Bid that contained
the manifest error. The Administrative Agent may, but shall not be
required to, notify any Lender of any manifest error it detects in
such Lender’s US Competitive Bid.

          (iv) Subject only to the provisions of Sections 5.02, 5.03 and
6.02 and clause (iii) above, each US Competitive Bid shall be
irrevocable.

34

 

     (d) Notice to US Facility Borrower of US Competitive Bids. Not later than
11:00 a.m. (i) on the requested date of any US Bid Borrowing that is to consist
of US Absolute Rate Loans, or (ii) three Business Days prior to the requested
date of any US Bid Borrowing that is to consist of US Eurodollar Margin Bid
Loans, the Administrative Agent shall notify the US Facility Borrower of the
identity of each Lender that has submitted a US Competitive Bid that complies
with Section 2.03(c) and of the terms of the offers contained in each such US
Competitive Bid.

     (e) Acceptance of US Competitive Bids. Not later than 11:30 a.m. (i) on
the requested date of any US Bid Borrowing that is to consist of US Absolute
Rate Loans, and (ii) three Business Days prior to the requested date of any US
Bid Borrowing that is to consist of US Eurodollar Margin Bid Loans, the US
Facility Borrower shall notify the Administrative Agent of its acceptance or
rejection of the offers notified to it pursuant to Section 2.03(d). The US
Facility Borrower shall be under no obligation to accept any US Competitive Bid
and may choose to reject all US Competitive Bids. In the case of acceptance,
such notice shall specify the aggregate principal amount of US Competitive Bids
for each Interest Period that is accepted. The US Facility Borrower may accept
any US Competitive Bid in whole or in part; provided that:

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

          (ii) the principal amount of each US Bid Loan must be US
$5,000,000 or a whole multiple of US $1,000,000 in excess thereof;

          (iii) the acceptance of offers may be made only on the basis
of ascending Absolute Rates or US Eurodollar Bid Margins within
each Interest Period; and

          (iv) the US Facility Borrower may not accept any offer that is
described in Section 2.03(c)(iii) or that otherwise fails to comply
with the requirements hereof.

     (f) Procedure for Identical US Bids. If two or more Lenders have
submitted US Competitive Bids at the same Absolute Rate or US Eurodollar Bid
Margin, as the case may be, for the same Interest Period, and the result of
accepting all of such US Competitive Bids in whole (together with any other US
Competitive Bids at lower Absolute Rates or US Eurodollar Bid Margins, as the
case may be, accepted for such Interest Period in conformity with the
requirements of Section 2.03(e)(iii)) would be to cause the aggregate
outstanding principal amount of the applicable US Bid Borrowing to exceed the
amount specified therefor in the related US Bid Request, then, unless otherwise
agreed by the US Facility Borrower, the Administrative Agent and such Lenders,
such US Competitive Bids shall be accepted as nearly as possible in proportion
to the amount offered by each such Lender in its US Competitive Bid in respect
of such Interest Period, with such accepted amounts being rounded to the
nearest whole multiple of US $100,000.

35

 

     (g) Notice to Lenders of Acceptance or Rejection of US Bids. The
Administrative Agent shall promptly notify each Lender having submitted a US
Competitive Bid whether or not its offer has been accepted and, if its offer
has been accepted, of the amount of the US Bid Loan or US Bid Loans to be made
by it on the date of the applicable US Bid Borrowing. Any US Competitive Bid
or portion thereof that is not accepted by the US Facility Borrower by the
applicable time specified in Section 2.03(e) shall be deemed rejected.

     (h) Notice of US Dollar Eurodollar Rate. If any US Bid Borrowing is to
consist of US Eurodollar Margin Bid Loans, the Administrative Agent shall
determine the US Dollar Eurodollar Rate for the relevant Interest Period, and
promptly after making such determination, shall notify the US Facility Borrower
and the Lenders that will be participating in such US Bid Borrowing of such US
Dollar Eurodollar Rate.

     (i) Funding of US Bid Loans. Each Lender that has received notice
pursuant to Section 2.03(g) that all or a portion of its US Competitive Bid has
been accepted by the US Facility Borrower shall make the amount of its US Bid
Loan(s) available to the Administrative Agent in immediately available funds at
the Administrative Agent’s Office not later than 1:00 p.m. on the date of the
requested US Bid Borrowing. Upon satisfaction of the applicable conditions set
forth in Section 6.02, the Administrative Agent shall make all funds so
received available to the US Facility Borrower in like funds as received by the
Administrative Agent.

     (j) Notice of Range of US Bids. After each US Competitive Bid auction
pursuant to this Section 2.03, the Administrative Agent shall notify each
Lender that submitted a US Competitive Bid in such auction of the ranges of
bids submitted (without the bidder’s name) and accepted for each US Bid Loan
and the aggregate amount of each US Bid Borrowing.

     (k) For greater certainty, no Lender shall be obligated to acquire a
participation or otherwise share the risk of any US Bid Loan provided by
another Lender and no US Bid Loan Lender shall be obligated to share or
otherwise pay to any other Lender any portion of interest or principal received
in respect of any US Bid Loan made by it.

     2.04 US Letters of Credit.

     (a) The US Letter of Credit Commitment.

          (i) Subject to the terms and conditions set forth herein, (A)
each US L/C Issuer agrees, in reliance upon the agreements of the
other US Lenders set forth in this Section 2.04, (1) from time to
time on any Business Day during the period from the Effective Date
until the Letter of Credit Expiration Date, to issue US Letters of
Credit for the account of the US Facility Borrower, and to amend or
renew US Letters of Credit previously issued by it, in accordance
with subsection (b) below, and (2) to honor drawings under the US
Letters of Credit issued by it; and (B) the US Lenders severally
agree to participate in US Letters of Credit issued for the account
of the US Facility Borrower and any drawings thereunder; provided
that after giving effect to any US L/C Credit Extension with
respect to any US Letter of Credit, (x) the Total US Outstandings
shall not exceed the Aggregate US Commitments, (y) the aggregate
Outstanding Amount of the

36

 

US Committed Loans of any US Lender, plus such Lender’s Pro
Rata Share of the Outstanding Amount of all US L/C Obligations,
plus such Lender’s Pro Rata Share of the Outstanding Amount of all
US Swing Line Loans shall not exceed such Lender’s US Commitment,
and (z) the Outstanding Amount of the US L/C Obligations shall not
exceed the US Letter of Credit Sublimit. Each request by the US
Facility Borrower for the issuance or amendment of a US Letter of
Credit shall be deemed to be a representation by the US Facility
Borrower that the US L/C Credit Extension so requested complies
with the conditions set forth in the proviso to the preceding
sentence. Within the foregoing limits, and subject to the terms
and conditions hereof, the US Facility Borrower’s ability to obtain
US Letters of Credit shall be fully revolving, and accordingly the
US Facility Borrower may, during the foregoing period, obtain US
Letters of Credit to replace US Letters of Credit that have expired
or that have been drawn upon and reimbursed.

          (ii) A US L/C Issuer shall not issue any US Letter of Credit
if the expiry date of such requested US Letter of Credit would
occur after the Letter of Credit Expiration Date, unless all the US
Lenders have approved such expiry date.

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

	 	 	 	(A) any order, judgment or decree of any Governmental
Authority or arbitrator shall by its terms purport to enjoin
or restrain such US L/C Issuer from issuing such US Letter of
Credit, or any Law applicable to such US L/C Issuer or any
request or directive (whether or not having the force of law)
from any Governmental Authority with jurisdiction over such
US L/C Issuer shall prohibit, or request that such US L/C
Issuer refrain from, the issuance of letters of credit
generally or such US Letter of Credit in particular or shall
impose upon such US L/C Issuer with respect to such US Letter
of Credit any restriction, reserve or capital requirement
(for which such US L/C Issuer is not otherwise compensated
hereunder) not in effect on the date hereof, or shall impose
upon such US L/C Issuer any unreimbursed loss, cost or
expense that was not applicable on the date hereof and that
such US L/C Issuer in good faith deems material to it, unless
the US Facility Borrower confirms that it will pay the
foregoing;
	 
	 	 	 	(B) the issuance of such US Letter of Credit would violate
any Laws;
	 
	 	 	 	(C) except as otherwise agreed by the Administrative Agent
and such US L/C Issuer, such US Letter of Credit is in an
initial face amount less than US $10,000; or
	 
	 	 	 	(D) such US Letter of Credit is to be denominated in a
currency other than US Dollars.

37

 

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

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

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

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

          (ii) Promptly after receipt of any US Letter of Credit
Application, the applicable US L/C Issuer will confirm with the
Administrative Agent (by telephone or in writing) that the

Administrative Agent has received a copy of such US Letter of
Credit Application from the US Facility Borrower and, if not, the
applicable US L/C Issuer will provide the Administrative Agent with
a copy thereof. Unless the applicable US L/C Issuer has received
written notice from any

38

 

Lender, the Administrative Agent or any Loan Party, at least
one Business Day prior to the requested date of issuance or
amendment of the applicable US Letter of Credit, that one or more
applicable conditions contained in Article VI shall not then be
satisfied, then, subject to the terms and conditions hereof, such
US L/C Issuer shall, on the requested date, issue a US Letter of
Credit for the account of the US Facility Borrower or enter into
the applicable amendment, as the case may be, in each case in
accordance with such US L/C Issuer’s usual and customary business
practices. Immediately upon the issuance of each US Letter of
Credit, each US Lender shall be deemed to, and hereby irrevocably
and unconditionally agrees to, purchase from the applicable US L/C
Issuer a risk participation in such US Letter of Credit in an
amount equal to the product of such Lender’s Pro Rata Share and the
amount of such US Letter of Credit.

          (iii) Promptly after its delivery of any US Letter of Credit
or any amendment to a US Letter of Credit to an advising bank with
respect thereto or to the beneficiary thereof, the applicable US
L/C Issuer will also deliver to the US Facility Borrower and the
Administrative Agent a true and complete copy of such US Letter of
Credit or amendment. Upon the request of any US Lender, the
Administrative Agent will notify such US Lender of the amount of
the US LC Obligations as of the date of such request.

     (c) Drawings and Reimbursements; Funding of Participations.

          (i) If a US L/C Issuer shall make any payment pursuant to a
Letter of Credit, it shall promptly notify the US Facility Borrower
and the Administrative Agent thereof, and the US Facility Borrower
shall, not later than 2:00 p.m. on the Business Day immediately
following the day that the US Facility Borrower receives notice of
such payment, reimburse the applicable US L/C Issuer through the
Administrative Agent in an amount equal to the amount of such
payment; provided that, if prior to 10:00 a.m. on the date such
reimbursement is due, the Administrative Agent shall not have
received notice from the US Facility Borrower that the US Facility
Borrower shall reimburse such payment when due, the US Facility
Borrower shall be deemed, without notice or any further action, to
have irrevocably requested, at such time and in accordance with
Section 2.02 (but without regard to the minimum and multiples for
the principal amount of US Committed Borrowings specified therein),
that, subject to the first proviso set forth in Section 2.01 and
the conditions set forth in Section 6.02, the US Lenders make, on
the date such reimbursement is due, US Base Rate Committed Loans in
the amount of such reimbursement, and that the Administrative Agent
make the proceeds thereof available to the applicable US L/C
Issuer. The US Facility Borrower’s obligation to reimburse such
payment shall, to the extent such reimbursement is so financed, be
discharged and replaced by the resulting US Base Rate Committed
Loans.

          (ii) If the US Facility Borrower fails (including as a result
of the nonsatisfaction of the conditions set forth in Section 6.02)
to reimburse all or any portion of the amount drawn under any US
Letter of Credit when due (any such

39

 

unreimbursed amount, the “US Unreimbursed Amount”), the
Administrative Agent shall promptly notify each US Lender of such
US Unreimbursed Amount, such Lender’s Pro Rata Share thereof and
the time (which shall be reasonably proximate to the time of such
notice) by which such Lender must fund such share, and each US
Lender (including any Lender acting as a US L/C Issuer) shall, upon
any such notice, make funds available to the Administrative Agent
for the account of the applicable US L/C Issuer at the
Administrative Agent’s Office in an amount equal to its Pro Rata
Share of the US Unreimbursed Amount not later than the time
specified in such notice. The Administrative Agent shall remit the
funds so received to the applicable US L/C Issuer. Each US
Lender’s payment to the Administrative Agent for the account of the
applicable US L/C Issuer pursuant to this paragraph shall be deemed
payment in respect of its participation in such US L/C Borrowing
and shall constitute a US L/C Advance from such Lender in
satisfaction of its participation obligation under this Section
2.04.

          (iii) Any notice given by a US L/C Issuer or the
Administrative Agent pursuant to Section 2.04(c)(i) or 2.04(c)(ii)
may be given by telephone if promptly confirmed in writing;
provided that the lack of such a prompt confirmation shall not
affect the conclusiveness or binding effect of such notice.

          (iv) Each US L/C Borrowing shall bear interest at a per annum
rate equal to the US Base Rate; provided that if the US Facility
Borrower fails to reimburse or otherwise discharge such US L/C
Borrowing when due pursuant to Section 2.04(c)(i), then Section
4.01(c) shall apply. Interest accrued pursuant to this paragraph
shall be for the account of the applicable US L/C Issuer, except
that interest accrued on and after the date of funding of a US L/C
Advance by any US Lender pursuant to Section 2.04(c)(ii) to
reimburse the US L/C Issuer shall be for the account of such Lender
to the extent of such payment.

          (v) Each US Lender’s obligation to make US L/C Advances to
reimburse the applicable US L/C Issuer for amounts drawn under US
Letters of Credit issued by it, as contemplated by this Section
2.04(c), shall be absolute and unconditional and shall not be
affected by any circumstance, including (A) any set-off,
counterclaim, recoupment, defense or other right that such Lender
may have against the applicable US L/C Issuer, the US Facility
Borrower or any other Person for any reason whatsoever, (B) the
occurrence or continuance of a Default, or (C) any other
occurrence, event or condition, whether or not similar to any of
the foregoing. No such making of a US L/C Advance shall relieve or
otherwise impair the obligation of the US Facility Borrower to
reimburse the applicable US L/C Issuer for the amount of any
payment made by such US L/C Issuer under any US Letter of Credit
issued by it, together with interest as provided herein.

          (vi) If any US Lender fails to make available to the
Administrative Agent for the account of the applicable US L/C
Issuer any US L/C Advance required to be made by such Lender
pursuant to the foregoing provisions of this Section 2.04(c) by the
time specified in Section 2.04(c)(ii), the applicable US L/C Issuer
shall be entitled to recover from such Lender (acting through the

40

 

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

     (d) Repayment of Participations.

          (i) At any time after a US L/C Issuer has made a payment under
any US Letter of Credit issued by it and has received from any US
Lender such Lender’s US L/C Advance in respect of such payment in
accordance with Section 2.04(c), if the Administrative Agent
receives for the account of the applicable US L/C Issuer any
payment in respect of the related US Unreimbursed Amount or
interest thereon (whether directly from the US Facility Borrower or
otherwise, including proceeds of cash collateral applied thereto by
the Administrative Agent), the Administrative Agent will distribute
to such Lender its Pro Rata Share thereof (appropriately adjusted,
in the case of interest payments, to reflect the period of time
during which such Lender’s US L/C Advance was outstanding) in the
same funds as those received by the Administrative Agent.

          (ii) If any payment received by the Administrative Agent for
the account of a US L/C Issuer pursuant to Section 2.04(c)(i) is
invalidated, declared to be fraudulent or preferential, set aside
or required (including pursuant to any settlement entered into by
the applicable US L/C Issuer in its discretion) to be paid to a
trustee, receiver or any other party, in connection with any
proceeding under any Debtor Relief Law or otherwise, each US Lender
shall pay to the Administrative Agent for the account of the
applicable US L/C Issuer its Pro Rata Share thereof on demand of
the Administrative Agent, plus interest thereon from the date of
such demand to the date such amount is funded by such Lender, at a
rate per annum equal to the Federal Funds Rate from time to time in
effect. The Administrative Agent will make such demand upon the
request of the applicable US L/C Issuer.

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

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

          (ii) the existence of any claim, counterclaim, set-off,
defense or other right that the US Facility Borrower or any
Subsidiary may have at any time against any beneficiary or any
transferee of such US Letter of Credit (or any Person for whom any
such beneficiary or any such transferee may be acting), such

41

 

US L/C Issuer or any other Person, whether in connection with
this Agreement, the transactions contemplated hereby or by such US
Letter of Credit or any agreement or instrument relating thereto,
or any unrelated transaction;

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

          (iv) any payment by the applicable US L/C Issuer under such US
Letter of Credit (A) against presentation of a draft or certificate
that does not strictly comply with the terms of such US Letter of
Credit provided that, notwithstanding such failure to present a
draft or certificate that strictly complies with the terms of such
US Letter of Credit, either (1) the amount paid under such US
Letter of Credit discharges a debt or other obligation otherwise
then due and payable from the US Facility Borrower or any of its
Subsidiaries to the beneficiary of such US Letter of Credit or (2)
the draft or certificate substantially complies with the terms of
such US Letter of Credit or (B) to any Person purporting to be a
trustee in bankruptcy, debtor-in-possession, assignee for the
benefit of creditors, liquidator, receiver or other representative
of or successor to any beneficiary or any transferee of such US
Letter of Credit, including any arising in connection with any
proceeding under any Debtor Relief Law; or

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

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

     (f) Role of US L/C Issuer. Each Lender and the US Facility Borrower agree
that, in paying any drawing under a US Letter of Credit, the applicable US L/C
Issuer shall not have any responsibility to obtain any document (other than any
sight draft, certificates and documents expressly required by the US Letter of
Credit) or to ascertain or inquire as to the validity or accuracy of any such
document or the authority of the Person executing or delivering any such
document. None of the US L/C Issuers or any of the respective Related Persons
or correspondents, participants or assignees of any of the US L/C Issuers shall
be liable to any Lender for (i) any action taken or omitted in connection
herewith at the request or with the approval of the Lenders or the US Required
Lenders, as applicable; (ii) any action taken or omitted in the absence of
gross negligence or willful misconduct; or (iii) the due execution,
effectiveness, validity or enforceability of any document or instrument related
to any US Letter

42

 

of Credit or US Letter of Credit Application. The US Facility Borrower
hereby assumes all risks of the acts or omissions of any beneficiary or
transferee with respect to its use of any US Letter of Credit; provided,
however, that this assumption is not intended to, and shall not, preclude the
US Facility Borrower from pursuing such rights and remedies as it may have
against the beneficiary or transferee at law or under any other agreement.
None of the US L/C Issuers or any of the respective Related Persons or
correspondents, participants or assignees of any US L/C Issuer, shall be liable
or responsible for any of the matters described in clauses (i) through (v) of
Section 2.04(e); provided, however, that anything in such clauses to the
contrary notwithstanding, the US Facility Borrower may have a claim against a
US L/C Issuer, and a US L/C Issuer may be liable to the US Facility Borrower,
to the extent, but only to the extent, of any direct, as opposed to
consequential or exemplary, damages suffered by the US Facility Borrower that
the US Facility Borrower proves were caused by such US L/C Issuer’s willful
misconduct or gross negligence or such US L/C Issuer’s willful failure to pay
under any US Letter of Credit after the presentation to it by the beneficiary
of a sight draft and certificate(s), as applicable, strictly complying with the
terms and conditions of a US Letter of Credit issued by it. In furtherance and
not in limitation of the foregoing, a US L/C Issuer may accept documents that
appear on their face to be in order, without responsibility for further
investigation, regardless of any notice or information to the contrary, and a
US L/C Issuer shall not be responsible for the validity or sufficiency of any
instrument transferring or assigning or purporting to transfer or assign a US
Letter of Credit or the rights or benefits thereunder or proceeds thereof, in
whole or in part, that may prove to be invalid or ineffective for any reason.

     (g) Cash Collateral. With respect to any Cash Collateralization of US L/C
Obligations required pursuant to Section 9.02(c) or 2.06(d), the US Facility
Borrower hereby grants to the Administrative Agent, for the benefit of the US
L/C Issuers and the US Lenders, a security interest in all such cash, deposit
accounts and balances therein constituting or containing cash delivered by the
US Facility Borrower expressly in satisfaction of its obligation to Cash
Collateralize pursuant hereto, and designated by the US Facility Borrower as
such, and all proceeds of the foregoing. Such cash collateral shall be
maintained in blocked deposit accounts at the Administrative Agent and the
Administrative Agent shall have exclusive dominion and control, including the
exclusive right of withdrawal, over such account. Pending application thereof,
such cash collateral shall be invested by the Administrative Agent, at the US
Facility Borrower’s risk and expense, in such short-term interest bearing
investments as the Administrative Agent may choose after consultation with the
US Facility Borrower. Interest or profits, if any, on such investments shall
accumulate in such account and upon request of the US Facility Borrower shall,
unless an Event of Default shall have occurred and is continuing or, after
giving effect to such distribution, the Outstanding Amount of US L/C
Obligations shall exceed the amount of cash collateral, be distributed to the
US Facility Borrower. Moneys in such account (i) prior to the acceleration of
maturity of Loans, shall be applied by the Administrative Agent to reimburse
the US L/C Issuers for drawings under US Letters of Credit for which such US
L/C Issuers have not been reimbursed and, to the extent not so applied, shall
be held for the satisfaction of the reimbursement obligations of the US
Facility Borrower for the drawings under the US Letters of Credit and (ii)
after the acceleration of maturity of Loans, shall be applied by the
Administrative Agent in accordance with Section 9.04.

     (h) Applicability of ISP and UCP. Unless otherwise expressly agreed by
the applicable US L/C Issuer and the US Facility Borrower, when a US Letter of
Credit is issued,

43

 

(i) the rules of the ISP shall apply to each standby US Letter of Credit,
and (ii) the rules of the Uniform Customs and Practice for Documentary Credits,
as most recently published by the International Chamber of Commerce at the time
of issuance, shall apply to each commercial US Letter of Credit.

     (i) US Letter of Credit Fees. The US Facility Borrower shall pay to the
Administrative Agent for the account of each US Lender in accordance with its
Pro Rata Share a US Letter of Credit fee (the “US Letter of Credit Fee”) for
each US Letter of Credit equal to (i) in the case of US Letters of Credit that
are Direct Credit Substitutes, 100% of the Applicable Margin times the daily
maximum amount available to be drawn under such US Letter of Credit, and (ii)
in the case of US Letters of Credit that are not Direct Credit Substitutes, 50%
of the Applicable Margin times the daily maximum amount available to be drawn
under such US Letter of Credit. US Letter of Credit Fees shall be (i) computed
on a quarterly basis in arrears and (ii) due and payable on the first Business
Day after the end of each March, June, September and December, commencing with
the first such date to occur after the issuance of such US Letter of Credit, on
the Letter of Credit Expiration Date and thereafter on demand. If there is any
change in the Applicable Margin during any quarter, the daily maximum amount of
each standby US Letter of Credit shall be computed and multiplied by the
applicable percentage specified above of the Applicable Margin separately for
each period during such quarter that such Applicable Margin was in effect.

     (j) Fronting Fee and Documentary and Processing Charges Payable to US L/C
Issuers. The US Facility Borrower shall pay directly to each US L/C Issuer for
its own account a fronting fee, with respect to each US Letter of Credit issued
by it, at a rate of 12.5 Basis Points per annum, payable on the actual daily
maximum amount available to be drawn under such US Letter of Credit. Such
fronting fee shall be computed on a quarterly basis in arrears. Such fronting
fee shall be due and payable on the first Business Day after the end of each
March, June, September and December, commencing with the first such date to
occur after the issuance of such US Letter of Credit, on the Letter of Credit
Expiration Date and thereafter on demand. In addition, the US Facility
Borrower shall pay directly to each US L/C Issuer for its own account the
customary issuance, presentation, amendment and other processing fees, and
other standard costs and charges, of such US L/C Issuer relating to letters of
credit issued by it as agreed to by the US Facility Borrower and the applicable
US L/C Issuer. Such customary fees and standard costs and charges are due and
payable on demand and are nonrefundable.

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

     (l) Designation of Subsidiaries as Account Parties. Notwithstanding
anything to the contrary set forth in this Agreement, including without
limitation Section 2.04(a), a US Letter of Credit issued hereunder shall, upon
the request of the US Facility Borrower, be issued for the account of any
Subsidiary of the US Facility Borrower, provided that notwithstanding such
request, the US Facility Borrower shall be the actual account party for all
purposes of this Agreement for such US Letter of Credit, and such request shall
not affect the US Facility Borrower’s reimbursement obligations hereunder with
respect to such US Letter of Credit.

44

 

     2.05 US Swing Line Loans.

     (a) The US Swing Line. Subject to the terms and conditions set forth
herein, the US Swing Line Lender agrees to make loans (each such loan, a “US
Swing Line Loan”) to the US Facility Borrower from time to time on any Business
Day during the Availability Period in an aggregate amount not to exceed at any
time outstanding the amount of the US Swing Line Sublimit, notwithstanding the
fact that such US Swing Line Loans, when aggregated with the Pro Rata Share of
the Outstanding Amount of US Committed Borrowings and US L/C Obligations of the
Lender acting as US Swing Line Lender, may exceed the amount of such Lender’s
US Commitment; provided, however, that after giving effect to any US Swing Line
Loan, (i) the Total US Outstandings shall not exceed the Aggregate US
Commitments and (ii) the aggregate Outstanding Amount of the US Committed Loans
of any US Lender, plus such Lender’s Pro Rata Share of the Outstanding Amount
of all US L/C Obligations, plus such Lender’s Pro Rata Share of the Outstanding
Amount of all US Swing Line Loans shall not exceed such Lender’s US Commitment;
and provided, further, that the US Facility Borrower shall not use the proceeds
of any US Swing Line Loan to refinance any outstanding US Swing Line Loan.
Within the foregoing limits, and subject to the other terms and conditions
hereof, the US Facility Borrower may borrow under this Section 2.05, prepay
under Section 2.06, and reborrow under this Section 2.05. Each US Swing Line
Loan shall be a US Base Rate Loan. Immediately upon the making of a US Swing
Line Loan, each US Lender shall be deemed to, and hereby irrevocably and
unconditionally agrees to, purchase from the US Swing Line Lender a risk
participation in such US Swing Line Loan in an amount equal to the product of
such Lender’s Pro Rata Share times the amount of such US Swing Line Loan.

     (b) US Swing Line Borrowing Procedures. Each US Swing Line Borrowing
shall be made upon the US Facility Borrower’s irrevocable notice to the US
Swing Line Lender and the Administrative Agent, which may be given by
telephone. Each such notice must be received by the US Swing Line Lender and
the Administrative Agent not later than 3:00 p.m. on the requested borrowing
date, and shall specify (i) the amount to be borrowed, which shall be a minimum
of US $1,000,000, and (ii) the requested borrowing date, which shall be a
Business Day. Each such telephonic notice must be confirmed promptly by
delivery to the US Swing Line Lender and the Administrative Agent of a written
US Swing Line Borrowing Notice, appropriately completed and signed by a
Responsible Officer of the US Facility Borrower. Promptly after receipt by the
US Swing Line Lender of any telephonic US Swing Line Borrowing Notice, the US
Swing Line Lender will confirm with the Administrative Agent (by telephone or
in writing) that the Administrative Agent has also received such US Swing Line
Borrowing Notice and, if not, the US Swing Line Lender will notify the
Administrative Agent (by telephone or in writing) of the contents thereof.
Unless the US Swing Line Lender has received notice (by telephone or in
writing) from the Administrative Agent (including at the request of any Lender)
prior to 3:00 p.m. on the date of the proposed US Swing Line Borrowing (A)
directing the US Swing Line Lender not to make such US Swing Line Loan as a
result of the limitations set forth in the proviso to the first sentence of
Section 2.05(a), or (B) that one or more of the applicable conditions specified
in Article VI is not then satisfied, then, subject to the terms and conditions
hereof, the US Swing Line Lender will, not later than 5:00 p.m. on the
borrowing date specified in such US Swing Line Borrowing Notice, make the
amount of its US Swing Line Loan available to the US Facility Borrower at its
office, at the option of the US Facility Borrower either by (i) crediting the
account of the US Facility Borrower on the books of the US

45

 

Swing Line Lender in immediately available funds or (ii) wire transfer of
such funds, in each case in accordance with instructions provided to (and
reasonably acceptable to) the US Swing Line Lender by the US Facility Borrower.

     (c) Refinancing of US Swing Line Loans.

     (i) The US Swing Line Lender at any time in its sole and
absolute discretion may request, on behalf of the US Facility
Borrower (which hereby irrevocably authorizes the US Swing Line
Lender to so request on its behalf), that each US Lender make a US
Base Rate Committed Loan in an amount equal to such Lender’s Pro
Rata Share of the amount of the US Swing Line Loans then
outstanding. Such request shall be made in writing (which written
request shall be deemed to be a US Committed Borrowing Notice for
purposes hereof) and in accordance with the requirements of Section
2.02, without regard to the minimum and multiples specified therein
for the principal amount of US Base Rate Committed Loans, but
subject to the proviso set forth in Section 2.01 and the conditions
set forth in Section 6.02. The US Swing Line Lender shall furnish
the US Facility Borrower with a copy of the applicable US Committed
Borrowing Notice promptly after delivering such notice to the
Administrative Agent. Each US Lender shall make an amount equal to
its Pro Rata Share of the amount specified in such US Committed
Borrowing Notice available to the Administrative Agent in
immediately available funds for the account of the US Swing Line
Lender at the Administrative Agent’s Office not later than 1:00
p.m. on the day specified in such US Committed Borrowing Notice,
whereupon, subject to Section 2.05(c)(ii), each Lender that so
makes funds available shall be deemed to have made a US Base Rate
Committed Loan to the US Facility Borrower in such amount. The
Administrative Agent shall remit the funds so received to the US
Swing Line Lender.

     (ii) If for any reason (including the nonsatisfaction of the
conditions set forth in Section 6.02) any US Swing Line Loan cannot
be refinanced by US Base Rate Committed Loans in accordance with
Section 2.05(c)(i), the request for US Base Rate Committed Loans
submitted by the US Swing Line Lender as set forth in such Section
shall be deemed to be a request by the US Swing Line Lender that
each of the US Lenders fund its risk participation in the relevant
US Swing Line Loan, and each US Lender’s payment to the
Administrative Agent for the account of the US Swing Line Lender
pursuant to Section 2.05(c)(i) shall be deemed payment in respect
of such participation. No such funding of a risk participation in
a US Swing Line Loan shall relieve the US Facility Borrower of any
default in the payment thereof.

     (iii) If any US Lender fails to make available to the
Administrative Agent for the account of the US Swing Line Lender
any amount required to be paid by such Lender pursuant to the
foregoing provisions of this Section 2.05(c) by the time specified
in Section 2.05(c)(i), the US Swing Line Lender shall be entitled
to recover from such Lender (acting through the Administrative
Agent), on demand, such amount with interest thereon for the period
from the date such

46

 

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

     (iv) Each US Lender’s obligation to purchase and fund risk
participations in US Swing Line Loans pursuant to this Section
2.05(c) shall be absolute and unconditional and shall not be
affected by any circumstance, including (A) any set-off,
counterclaim, recoupment, defense or other right that such Lender
may have against the US Swing Line Lender, the US Facility Borrower
or any other Person for any reason whatsoever, (B) the occurrence
or continuance of a Default, or (C) any other occurrence, event or
condition, whether or not similar to any of the foregoing. No such
funding of risk participations shall relieve or otherwise impair
the obligation of the US Facility Borrower to repay US Swing Line
Loans, together with interest thereon, as provided herein.

     (d) Repayment of Participations.

     (i) At any time after any US Lender has purchased and funded a
risk participation in a US Swing Line Loan, if the US Swing Line
Lender receives any payment on account of such US Swing Line Loan,
the US Swing Line Lender will distribute to such Lender its Pro
Rata Share of such payment (appropriately adjusted, in the case of
interest payments, to reflect the period of time during which such
Lender’s risk participation was funded) in the same funds as those
received by the US Swing Line Lender.

     (ii) If any payment received by the US Swing Line Lender in
respect of principal or interest on any US Swing Line Loan is
invalidated, declared to be fraudulent or preferential, set aside
or required (including pursuant to any settlement entered into by
the US Swing Line Lender in its discretion) to be paid to a
trustee, receiver or any other party, in connection with any
proceeding under any Debtor Relief Law or otherwise, each US Lender
shall pay to the US Swing Line Lender its Pro Rata Share thereof on
demand of the Administrative Agent, plus interest thereon from the
date of such demand to the date such amount is funded by such
Lender, at a rate per annum equal to the Federal Funds Rate. The
Administrative Agent will make such demand upon the request of the
US Swing Line Lender.

     (e) Interest for Account of US Swing Line Lender. The US Swing Line
Lender shall be responsible for invoicing the US Facility Borrower for interest
on the US Swing Line Loans. Until each US Lender funds its US Base Rate
Committed Loan or risk participation pursuant to this Section 2.05 to refinance
such Lender’s Pro Rata Share of any US Swing Line Loan, interest in respect of
such Lender’s Pro Rata Share shall be solely for the account of the US Swing
Line Lender.

47

 

     (f) Payments Directly to US Swing Line Lender. The US Facility Borrower
shall make all payments of principal and interest in respect of the US Swing
Line Loans directly to the US Swing Line Lender.

     2.06 Prepayments.

     (a) The US Facility Borrower may, upon notice to the Administrative Agent,
at any time or from time to time voluntarily prepay US Committed Loans in whole
or in part without premium or penalty; provided that (i) such notice must be
received by the Administrative Agent not later than 11:00 a.m. (A) three
Business Days prior to any date of prepayment of US Eurodollar Rate Committed
Loans and (B) on the date of prepayment of US Base Rate Committed Loans; (ii)
any prepayment of US Eurodollar Rate Committed Loans shall be in a principal
amount of US $5,000,000 or a whole multiple of US $1,000,000 in excess thereof;
and (iii) any prepayment of US Base Rate Committed Loans shall be in a
principal amount of US $1,000,000 or a whole multiple of US $100,000 in excess
thereof or, in each case, if less, the entire principal amount thereof then
outstanding. Each such notice shall specify the date and amount of such
prepayment and the Type(s) of US Committed Loans to be prepaid, and the payment
amount specified in such notice shall be due and payable on the date specified
therein. The Administrative Agent will promptly notify each US Lender of its
receipt of each such notice, and of the amount of such Lender’s Pro Rata Share
of such prepayment. Any prepayment of a US Committed Loan shall be accompanied
by all accrued interest thereon, together with any additional amounts required
pursuant to Section 5.05. Each such prepayment shall be applied to the US
Committed Loans of the US Lenders in accordance with their respective Pro Rata
Shares.

     (b) No US Bid Loan may be prepaid without the prior consent of the
applicable US Bid Loan Lender.

     (c) The US Facility Borrower may, upon notice to the US Swing Line Lender
(with a copy to the Administrative Agent), at any time or from time to time,
voluntarily prepay US Swing Line Loans in whole or in part without premium or
penalty; provided that (i) such notice must be received by the US Swing Line
Lender and the Administrative Agent not later than 1:00 p.m. on the date of the
prepayment, and (ii) any such prepayment shall be in a minimum principal amount
of US $ 1,000,000. Each such notice shall specify the date and amount of such
prepayment, and the payment amount specified in such notice shall be due and
payable on the date specified therein.

     (d) If for any reason the Total US Outstandings (other than any portion
thereof that is Cash Collateralized) at any time exceed the Aggregate US
Commitments then in effect, the US Facility Borrower shall immediately prepay
US Committed Loans and/or Cash Collateralize the US L/C Obligations in an
aggregate amount equal to such excess; provided, however, that the US Facility
Borrower shall not be required to Cash Collateralize the US L/C Obligations
pursuant to this Section 2.06(d) unless, after the prepayment in full of the US
Committed Loans and US Swing Line Loans, the Total US Outstandings exceed the
Aggregate US Commitments then in effect.

48

 

     2.07 Repayment of US Loans.

     (a) The US Facility Borrower shall repay to each US Lender on the Maturity
Date the aggregate principal amount of its US Committed Loans and all other US
Obligations owing to such Lender outstanding on such date.

     (b) The US Facility Borrower shall repay each US Bid Loan on the last day
of the Interest Period in respect thereof.

ARTICLE III.

CANADIAN FACILITY

     3.01 Canadian Committed Loans. Subject to the terms and conditions set
forth herein, each Canadian Lender severally agrees to make loans to, and
accept or purchase Bankers’ Acceptances from, each Canadian Facility Borrower
from time to time (each such loan, acceptance or purchase, a “Canadian
Committed Loan”) on any Business Day during the Availability Period, provided,
however, that after giving effect to any Canadian Committed Borrowing, (i) the
Total Canadian Outstandings (calculated, as necessary, at the US Dollar
Equivalent thereof) shall not exceed the Aggregate Canadian Commitments and
(ii) the aggregate Outstanding Amount of the Canadian Committed Loans of any
Canadian Lender, plus such Canadian Lender’s Pro Rata Share of the Outstanding
Amount of all Canadian L/C Obligations, plus such Canadian Lender’s Pro Rata
Share of the Outstanding Amount of all Canadian Swing Line Loans (in each case,
calculated, as necessary, at the US Dollar Equivalent thereof) shall not exceed
the Canadian Commitment of such Canadian Lender. Within the limits of the
Canadian Commitment of each Canadian Lender, and subject to the other terms and
conditions hereof, each Canadian Facility Borrower may borrow under this
Section 3.01, prepay under Section 3.06, and reborrow under this Section 3.01.
Canadian Committed Loans may be (i) Canadian Prime Rate Committed Loans,
Canadian C$ Eurodollar Rate Committed Loans or Bankers’ Acceptances, in each
case available to either Canadian Borrower, or (ii) Canadian Base Rate
Committed Loans or Canadian US$ Eurodollar Rate Committed Loans, in each case
available to Parent and funded in the United States by Affiliate of the
Canadian Lenders in the United States, as further provided herein.

     3.02 Canadian Committed Borrowings; Conversions and Continuations of
Canadian Committed Loans.

     (a) Each Canadian Committed Borrowing, each conversion of Canadian
Committed Loans from one Type to another, and each continuation of Canadian C$
Eurodollar Rate Committed Loans or Canadian US$ Eurodollar Rate Committed Loans
shall be made upon the applicable Canadian Facility Borrower’s irrevocable
(except as provided in Section 5.03(a)) notice to the Administrative Agent,
which may be given by telephone. Each such notice must be received by the
Administrative Agent not later than (i) 12:00 noon on the third Business Day
prior to the requested date of any borrowing of, conversion to or continuation
of Canadian C$ Eurodollar Rate Committed Loans or Canadian US$ Eurodollar Rate
Committed Loans or of any conversion of Canadian C$ Eurodollar Rate Committed
Loans or Canadian US$ Eurodollar Rate Committed Loans to Canadian Prime Rate
Committed Loans or Canadian Base Rate Committed Loans, as applicable, (ii) 1:00
p.m. one Business Day prior to the requested date of any

49

 

borrowing of Canadian Prime Rate Committed Loans, (iii) 11:00 a.m. on the
requested date of any borrowing of Canadian Base Rate Committed Loans and (iv)
the time specified in Section 3.08(c)(i), in the case of borrowing by way of
Bankers’ Acceptances. Each telephonic notice by a Canadian Facility Borrower
pursuant to this Section 3.02(a) must be confirmed promptly by delivery to the
Administrative Agent of a written Canadian Committed Borrowing Notice,
appropriately completed and signed by a Responsible Officer of the applicable
Canadian Facility Borrower. Each borrowing of, conversion to or continuation
of Canadian C$ Eurodollar Rate Committed Loans or Canadian US$ Eurodollar Rate
Committed Loans shall be in a principal amount of $5,000,000 in the Applicable
Currency or a whole multiple of $1,000,000 in the Applicable Currency in excess
thereof. Except as provided in Sections 3.04(c) and 3.05(c), each borrowing of
or conversion to Canadian Prime Rate Committed Loans or Canadian Base Rate
Committed Loans shall be in a principal amount of $1,000,000 in the Applicable
Currency or a whole multiple of $1,000,000 in the Applicable Currency in excess
thereof. Each borrowing of, conversion to or continuation of Bankers’
Acceptances of the same term shall be in an aggregate principal amount of
C$5,000,000 or a whole multiple of C$1,000,000 in excess thereof, and the face
amount of any Bankers’ Acceptance shall be C$100,000 or any whole multiple
thereof. Each Canadian Committed Borrowing Notice (whether telephonic or
written) shall specify (i) whether the applicable Canadian Facility Borrower is
requesting a Canadian Committed Borrowing, a conversion of Canadian Committed
Loans from one Type to another or a continuation of Canadian C$ Eurodollar Rate
Committed Loans or Canadian US$ Eurodollar Rate Committed Loans, (ii) the
requested date of the Canadian Committed Borrowing, conversion or continuation,
as the case may be (which shall be a Business Day), (iii) the principal amount
of Canadian Committed Loans to be borrowed, converted or continued, (iv) the
Type of Canadian Committed Loans to be borrowed or to which existing Canadian
Committed Loans are to be converted, (v) if applicable, the duration of the
Interest Period with respect thereto and (vi) in the case of Bankers’
Acceptances, the term applicable thereto. If the applicable Canadian Facility
Borrower fails to specify a Type of Canadian Committed Loan in a Canadian
Committed Borrowing Notice or if the applicable Canadian Facility Borrower
fails to give a timely notice requesting a conversion or continuation, then the
applicable Canadian Committed Loans (including Bankers’ Acceptances)
denominated in Canadian Dollars shall be made as, or converted to, Canadian
Prime Rate Committed Loans and the applicable Canadian Committed Loans
denominated in US Dollars shall be made as, or converted to, Canadian Base Rate
Committed Loans. Any such automatic conversion shall be effective, with
respect to the applicable Canadian C$ Eurodollar Rate Committed Loans or the
applicable Canadian US$ Eurodollar Rate Committed Loans, as of the last day of
the Interest Period then in effect and, with respect to the applicable Bankers’
Acceptances, as of the last day of the term thereof. If a Canadian Facility
Borrower requests a Canadian Committed Borrowing of, conversion to, or
continuation of Canadian Eurodollar Rate Committed Loans in any such Canadian
Committed Borrowing Notice, but fails to specify an Interest Period, it will be
deemed to have specified an Interest Period of one month. If a Canadian
Borrower requests a borrowing of, conversion to or continuation of Bankers’
Acceptances in any such Canadian Committed Borrowing Notice, but fails to
specify a term therefor, it will be deemed to have specified a term of 30 days.
A Canadian Borrowing in one currency may not be converted into a Canadian
Borrowing in another currency.

     (b) Following receipt of a Canadian Committed Borrowing Notice, the
Administrative Agent shall promptly notify each Canadian Lender of the amount
of its Pro Rata

50

 

Share of the applicable Canadian Committed Borrowing, and if no timely
notice of a conversion or continuation is provided by the applicable Canadian
Facility Borrower, the Administrative Agent shall notify each Canadian Lender
of the details of any automatic conversion to Canadian Prime Rate Committed
Loans or Canadian Base Rate Committed Loans described in the preceding
subsection. In the case of a Canadian Committed Borrowing, each Canadian
Lender shall make the amount of its Canadian Committed Loan available to the
Administrative Agent in immediately available funds at the Administrative
Agent’s Office not later than 1:00 p.m. on the requested date of the Canadian
Committed Borrowing specified in the applicable Canadian Committed Borrowing
Notice. Upon satisfaction of the conditions set forth in Section 6.02, the
Administrative Agent shall make all funds so received available to the
applicable Canadian Facility Borrower in like funds as received by the
Administrative Agent by wire transfer of such funds in accordance with
instructions provided to (and reasonably acceptable to) the Administrative
Agent by the applicable Canadian Facility Borrower; provided, however, that if,
on the requested or deemed requested date of any Canadian Committed Borrowing,
there are Canadian L/C Borrowings by such Canadian Facility Borrower
outstanding, then the proceeds of such Canadian Borrowing shall be applied
first to the payment in full of any such Canadian L/C Borrowings by such
Canadian Facility Borrower, and second, shall be made available to the
applicable Canadian Facility Borrower as provided above.

     (c) Except as otherwise provided herein, a Canadian Eurodollar Rate
Committed Loan may be continued or converted only on the last day of an
Interest Period for such Canadian Eurodollar Rate Committed Loan.

     (d) Except as otherwise provided herein, a Bankers’ Acceptance may be
converted or continued only on the last day of the term thereof. During the
existence of a Default, no Canadian Committed Borrowings may be requested as,
converted to or continued as Bankers’ Acceptances without the consent of the
Canadian Required Lenders.

     3.03 Canadian Bid Loans.

     (a) General. Subject to the terms and conditions set forth herein, each
Canadian Lender agrees that each Canadian Facility Borrower may from time to
time request the Canadian Lenders to submit offers to make or, in the case of
Canadian Bid Loans to Parent, request their respective Lender Funding
Affiliates to submit offers to make, loans (each such loan, a “Canadian Bid
Loan”), prior to the Maturity Date, pursuant to this Section 3.03 for requested
maturities and interest periods of (i) 14 to 180 days, in the case of Canadian
Absolute Rate Loans, or (ii) 1, 2, 3 or 6 months, and to the extent available
to all Canadian Lenders, 9 or 12 months, in the case of Canadian Eurodollar
Margin Bid Loans, to (x) the Canadian Borrowers in Canadian Dollars or (y)
Parent in US Dollars (funded in the United States through a Lender Funding
Affiliate in a manner not subject to withholding taxes); provided, however,
that after giving effect to any Canadian Bid Borrowing, the Total Canadian
Outstandings shall not exceed the Aggregate Canadian Commitments. Canadian Bid
Loans can be (i) in the case of Canadian Bid Loans made to the Canadian
Borrowers, Canadian C$ Absolute Rate Loans or Canadian C$ Eurodollar Margin Bid
Loans, and (ii) in the case of Canadian Bid Loans made to Parent, Canadian US$
Absolute Rate Loans or Canadian US$ Eurodollar Margin Bid Loans. There shall
not be more than seven different Interest Periods in effect with respect to
Canadian Bid Loans at any time.

51

 

     (b) Requesting Canadian Competitive Bids. A Canadian Facility Borrower
may request the submission of Canadian Competitive Bids by delivering a
Canadian Bid Request to the Administrative Agent not later than 12:00 noon (i)
one Business Day prior to the requested date of any Canadian Bid Borrowing that
is to consist of Canadian Absolute Rate Loans or (ii) four Business Days prior
to the requested date of any Canadian Bid Borrowing that is to consist of
Canadian Eurodollar Margin Bid Loans. Each Canadian Bid Request shall specify
(i) the requested date of the Canadian Bid Borrowing (which shall be a Business
Day), (ii) the aggregate principal amount of Canadian Bid Loans requested in
the Applicable Currency (which must be $5,000,000 in the Applicable Currency or
a whole multiple of $1,000,000 in the Applicable Currency in excess thereof),
(iii) the Type of Canadian Bid Loans requested and (iv) the duration of the
Interest Period with respect thereto, and shall be signed by a Responsible
Officer of the applicable Canadian Facility Borrower. No Canadian Bid Request
shall contain a request for (i) more than one Type of Canadian Bid Loan or (ii)
Canadian Bid Loans having more than three different Interest Periods.

     (c) Submitting Canadian Competitive Bids.

     (i) The Administrative Agent shall promptly notify each
Canadian Lender of each Canadian Bid Request received by it from a
Canadian Facility Borrower and the contents of such Canadian Bid
Request.

     (ii) Each Canadian Lender may (but shall have no obligation
to) submit a Canadian Competitive Bid containing an offer to make
one or more Canadian Bid Loans in response to such Canadian Bid
Request. Such Canadian Competitive Bid must be delivered to the
Administrative Agent not later than 10:30 a.m. (A) on the requested
date of any Canadian Bid Borrowing that is to consist of Canadian
Absolute Rate Loans, and (B) three Business Days prior to the
requested date of any Canadian Bid Borrowing that is to consist of
Canadian Eurodollar Margin Bid Loans; provided, however, that any
Canadian Competitive Bid submitted by the Administrative Agent (or
its Lender Funding Affiliate) in its capacity as a Canadian Lender
in response to any Canadian Bid Request must be submitted directly
to the applicable Canadian Facility Borrower not later than 10:15
a.m. on the date on which Canadian Competitive Bids are required to
be delivered by the other Canadian Lenders in response to such
Canadian Bid Request. Each Canadian Competitive Bid shall specify
(A) the proposed date of the Canadian Bid Borrowing; (B) the
principal amount of each Canadian Bid Loan for which such Canadian
Competitive Bid is being made, which principal amount (x) may be
equal to, greater than or less than the Canadian Commitment of the
bidding Canadian Lender, (y) must be $5,000,000 in the Applicable
Currency or a whole multiple of $1,000,000 in the Applicable
Currency in excess thereof, and (z) may not exceed the principal
amount of Canadian Bid Loans for which Canadian Competitive Bids
were requested; (C) if the proposed Canadian Bid Borrowing is to
consist of Canadian Absolute Rate Loans, the Absolute Rate offered
for each such Canadian Bid Loan and the Interest Period applicable
thereto; (D) if the proposed Canadian Bid Borrowing is to consist
of Canadian Eurodollar Margin Bid Loans, the Canadian Eurodollar
Bid Margin with respect

52

 

to each such Canadian Eurodollar Margin Bid Loan and the
Interest Period applicable thereto; and (E) the identity of the
bidding Canadian Lender.

     (iii) Any Canadian Competitive Bid shall be disregarded if it
(A) is received after the applicable time specified in clause (ii)
above, (B) is not substantially in the form of a Canadian
Competitive Bid as specified herein, (C) contains qualifying,
conditional or similar language, (D) proposes terms other than or
in addition to those set forth in the applicable Canadian Bid
Request, or (E) is otherwise not responsive to such Canadian Bid
Request. Any Canadian Lender may correct its Canadian Competitive
Bid containing a manifest error by submitting a corrected Canadian
Competitive Bid (identified as such) not later than the applicable
time required for submission of Canadian Competitive Bids. Any
such submission of a corrected Canadian Competitive Bid shall
constitute a revocation of the Canadian Competitive Bid that
contained the manifest error. The Administrative Agent may, but
shall not be required to, notify any Canadian Lender of any
manifest error it detects in such Canadian Lender’s Canadian
Competitive Bid.

     (iv) Subject only to the provisions of Sections 5.02, 5.03 and
6.02 and clause (iii) above, each Canadian Competitive Bid shall be
irrevocable.

     (d) Notice to Canadian Facility Borrowers of Canadian Competitive Bids.
Not later than 11:00 a.m. (i) on the requested date of any Canadian Bid
Borrowing that is to consist of Canadian Absolute Rate Loans, or (ii) three
Business Days prior to the requested date of any Canadian Bid Borrowing that is
to consist of Canadian Eurodollar Margin Bid Loans, the Administrative Agent
shall notify the applicable Canadian Facility Borrower of the identity of each
Canadian Lender that has submitted a Canadian Competitive Bid that complies
with Section 3.03(c) and of the terms of the offers contained in each such
Canadian Competitive Bid.

     (e) Acceptance of Canadian Competitive Bids. Not later than 11:30 a.m.
(i) on the requested date of any Canadian Bid Borrowing that is to consist of
Canadian Absolute Rate Loans, and (ii) three Business Days prior to the
requested date of any Canadian Bid Borrowing that is to consist of Canadian
Eurodollar Margin Bid Loans, the applicable Canadian Facility Borrower shall
notify the Administrative Agent of its acceptance or rejection of the offers
notified to it pursuant to Section 3.03(d). The applicable Canadian Facility
Borrower shall be under no obligation to accept any Canadian Competitive Bid
and may choose to reject all Canadian Competitive Bids. In the case of
acceptance, such notice shall specify the aggregate principal amount of
Canadian Competitive Bids for each Interest Period that is accepted. The
applicable Canadian Facility Borrower may accept any Canadian Competitive Bid
in whole or in part; provided that:

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

53

 

     (ii) the principal amount of each Canadian Bid Loan must be
$5,000,000 in the Applicable Currency or a whole multiple of
$1,000,000 in the Applicable Currency in excess thereof;

     (iii) the acceptance of offers may be made only on the basis
of ascending Absolute Rates or Canadian Eurodollar Bid Margins
within each Interest Period; and

     (iv) the applicable Canadian Facility Borrower may not accept
any offer that is described in Section 3.03(c)(iii) or that
otherwise fails to comply with the requirements hereof.

     (f) Procedure for Identical Canadian Bids. If two or more Canadian
Lenders have submitted Canadian Competitive Bids at the same Absolute Rate or
Canadian Eurodollar Bid Margin, as the case may be, for the same Interest
Period, and the result of accepting all of such Canadian Competitive Bids in
whole (together with any other Canadian Competitive Bids at lower Absolute
Rates or Canadian Eurodollar Bid Margins, as the case may be, accepted for such
Interest Period in conformity with the requirements of Section 3.03(e)(iii))
would be to cause the aggregate outstanding principal amount of the applicable
Canadian Bid Borrowing to exceed the amount specified therefor in the related
Canadian Bid Request, then, unless otherwise agreed by the applicable Canadian
Facility Borrower, the Administrative Agent and such Canadian Lenders, such
Canadian Competitive Bids shall be accepted as nearly as possible in proportion
to the amount offered by each such Canadian Lender in its Canadian Competitive
Bid in respect of such Interest Period, with such accepted amounts being
rounded to the nearest whole multiple of $100,000 in the Applicable Currency.

     (g) Notice to Canadian Lenders of Acceptance or Rejection of Canadian
Bids. The Administrative Agent shall promptly notify each Canadian Lender
having submitted a Canadian Competitive Bid whether or not its offer has been
accepted and, if its offer has been accepted, of the amount of the Canadian Bid
Loan or Canadian Bid Loans to be made by it on the date of the applicable
Canadian Bid Borrowing. Any Canadian Competitive Bid or portion thereof that
is not accepted by the applicable Canadian Facility Borrower by the applicable
time specified in Section 3.03(e) shall be deemed rejected.

     (h) Notice of Canadian Dollar Eurodollar Rate. If any Canadian Bid
Borrowing is to consist of Canadian Eurodollar Margin Bid Loans, the
Administrative Agent shall determine the Canadian Dollar Eurodollar Rate or US
Dollar Eurodollar Rate, as applicable, for the relevant Interest Period, and
promptly after making such determination, shall notify the applicable Canadian
Facility Borrower and the Canadian Lenders that will be participating in such
Canadian Bid Borrowing of such Canadian Dollar Eurodollar Rate or US Dollar
Eurodollar Rate, as applicable.

     (i) Funding of Canadian Bid Loans. Each Canadian Lender that has received
notice pursuant to Section 3.03(g) that all or a portion of its Canadian
Competitive Bid has been accepted by the applicable Canadian Facility Borrower
shall make the amount of its Canadian Bid Loan(s) available to the
Administrative Agent in immediately available funds at the Administrative
Agent’s Office not later than 1:00 p.m. on the date of the requested Canadian
Bid

54

 

Borrowing. Upon satisfaction of the applicable conditions set forth in
Section 6.02, the Administrative Agent shall make all funds so received
available to the applicable Canadian Facility Borrower in like funds as
received by the Administrative Agent.

     (j) Notice of Range of Canadian Bids. After each Canadian Competitive Bid
auction pursuant to this Section 3.03, the Administrative Agent shall notify
each Canadian Lender that submitted a Canadian Competitive Bid in such auction
of the ranges of bids submitted (without the bidder’s name) and accepted for
each Canadian Bid Loan and the aggregate amount of each Canadian Bid Borrowing.

     (k) For greater certainty, no Lender shall be obligated to acquire a
participation or otherwise share the risk of any Canadian Bid Loan provided by
another Lender and no Canadian Bid Loan Lender shall be obligated to share or
otherwise pay to any other Lender any portion of interest or principal received
in respect of any Canadian Bid Loan made by it.

     3.04 Canadian Letters of Credit.

     (a) The Letter of Credit Commitment.

     (i) Subject to the terms and conditions set forth herein, (A)
each Canadian L/C Issuer agrees, in reliance upon the agreements of
the other Canadian Lenders set forth in this Section 3.04, (1) from
time to time on any Business Day during the period from the
Effective Date until the Letter of Credit Expiration Date, to issue
Canadian Letters of Credit for the account of the applicable
Canadian Borrower, and to amend or renew Canadian Letters of Credit
previously issued by it, in accordance with subsection (b) below,
and (2) to honor drawings under the Canadian Letters of Credit
issued by it; and (B) the Canadian Lenders severally agree to
participate in Canadian Letters of Credit issued for the account of
a Canadian Borrower and any drawings thereunder; provided that
after giving effect to any Canadian L/C Credit Extension with
respect to any Canadian Letter of Credit, (x) the Total Canadian
Outstandings shall not exceed the Aggregate Canadian Commitments,
(y) the aggregate Outstanding Amount of the Canadian Committed
Borrowings of any Canadian Lender, plus such Canadian Lender’s Pro
Rata Share of the Outstanding Amount of all Canadian L/C
Obligations, plus such Canadian Lender’s Pro Rata Share of the
Outstanding Amount of all Canadian Swing Line Loans shall not
exceed such Canadian Lender’s Canadian Commitment, and (z) the
Outstanding Amount of the Canadian L/C Obligations shall not exceed
the Canadian Letter of Credit Sublimit. Each request by a Canadian
Borrower for the issuance or amendment of a Canadian Letter of
Credit shall be deemed to be a representation by such Canadian
Borrower that the Canadian L/C Credit Extension so requested
complies with the conditions set forth in the proviso to the
preceding sentence. Within the foregoing limits, and subject to
the terms and conditions hereof, each Canadian Borrower’s ability
to obtain Canadian Letters of Credit shall be fully revolving, and
accordingly each Canadian Borrower may, during the foregoing
period, obtain Canadian Letters of Credit to replace Canadian
Letters of Credit that have expired or that have been drawn upon
and reimbursed.

55

 

     (ii) A Canadian L/C Issuer shall not issue any Canadian Letter
of Credit if the expiry date of such requested Canadian Letter of
Credit would occur after the Letter of Credit Expiration Date,
unless all the Canadian Lenders have approved such expiry date.

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

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

(B) the issuance of such Letter of Credit would violate any
Laws;

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

(D) such Canadian Letter of Credit is to be denominated in a
currency other than Canadian Dollars.

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

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

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

     (i) Each Canadian Letter of Credit shall be issued or amended,
as the case may be, upon the request of the applicable Canadian
Borrower delivered to a Canadian L/C Issuer (with a copy to the
Administrative Agent) in the form of a

56

 

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

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

57

 

Credit in an amount equal to the product of such Canadian
Lender’s Pro Rata Share and the amount of such Canadian Letter of
Credit.

     (iii) Promptly after its delivery of any Canadian Letter of
Credit or any amendment to a Canadian Letter of Credit to an
advising bank with respect thereto or to the beneficiary thereof,
the applicable Canadian L/C Issuer will also deliver to the
applicable Canadian Borrower and the Administrative Agent a true
and complete copy of such Canadian Letter of Credit or amendment.
Upon the request of any Canadian Lender, the Administrative Agent
will notify such Canadian Lender of the amount of the Canadian LC
Obligations as of the date of such request.

     (c) Drawings and Reimbursements; Funding of Participations.

     (i) If a Canadian L/C Issuer shall make any payment pursuant
to a Letter of Credit, it shall promptly notify the applicable
Canadian Borrower and the Administrative Agent thereof, and the
applicable Canadian Borrower shall, not later than 2:00 p.m. on the
Business Day immediately following the day that such Canadian
Borrower receives notice of such payment, reimburse the applicable
Canadian L/C Issuer through the Administrative Agent in an amount
equal to the amount of such payment; provided that, if prior to
10:00 a.m. on the date such reimbursement is due, the
Administrative Agent shall not have received notice from the
applicable Canadian Borrower that such Canadian Borrower shall
reimburse such payment when due, such Canadian Borrower shall be
deemed, without notice or any further action, to have irrevocably
requested, at such time and in accordance with Section 3.02 (but
without regard to the minimum and multiples for the principal
amount of Canadian Committed Borrowings specified therein), that,
subject to the first proviso set forth in Section 3.01 and the
conditions set forth in Section 6.02, the Canadian Lenders make, on
the date such reimbursement is due, Canadian Prime Rate Committed
Loans in the amount of such reimbursement, and that the
Administrative Agent make the proceeds thereof available to the
applicable Canadian L/C Issuer. The applicable Canadian Borrower’s
obligation to reimburse such payment shall, to the extent such
reimbursement is so financed, be discharged and replaced by the
resulting Canadian Prime Rate Committed Loans.

     (ii) If the applicable Canadian Borrower fails (including as a
result of the nonsatisfaction of the conditions set forth in
Section 6.02) to reimburse all or any portion of the amount drawn
under any Canadian Letter of Credit when due (any such unreimbursed
amount, the “Canadian Unreimbursed Amount”), the Administrative
Agent shall promptly notify each Canadian Lender of such Canadian
Unreimbursed Amount, such Lender’s Pro Rata Share thereof and the
time (which shall be reasonably proximate to the time of such
notice) by which such Lender must fund such share, and each
Canadian Lender (including any Lender acting as a Canadian L/C
Issuer) shall, upon any such notice, make funds available to the
Administrative Agent for the account of the applicable Canadian L/C
Issuer at the Administrative Agent’s Office in an amount equal to
its Pro Rata

58

 

Share of the Canadian Unreimbursed Amount not later than the
time specified in such notice. The Administrative Agent shall
remit the funds so received to the applicable Canadian L/C Issuer.
Each Canadian Lender’s payment to the Administrative Agent for the
account of the applicable Canadian L/C Issuer pursuant to this
paragraph shall be deemed payment in respect of its participation
in such Canadian L/C Borrowing and shall constitute a Canadian L/C
Advance from such Canadian Lender in satisfaction of its
participation obligation under this Section 3.04.

     (iii) Any notice given by a Canadian L/C Issuer or the
Administrative Agent pursuant to Section 3.04(c)(i) or 3.04(c)(ii)
may be given by telephone if promptly confirmed in writing;
provided that the lack of such a prompt confirmation shall not
affect the conclusiveness or binding effect of such notice.

     (iv) Each Canadian L/C Borrowing shall bear interest at a per
annum rate equal to the Canadian Prime Rate; provided that if the
applicable Canadian Borrower fails to reimburse or otherwise
discharge such Canadian L/C Borrowing when due pursuant to Section
3.04(c)(i), then Section 4.01(c) shall apply. Interest accrued
pursuant to this paragraph shall be for the account of the
applicable Canadian L/C Issuer, except that interest accrued on and
after the date of funding of a Canadian L/C Advance by any Canadian
Lender pursuant to Section 3.04(c)(ii) to reimburse the Canadian
L/C Issuer shall be for the account of such Lender to the extent of
such payment.

     (v) Each Canadian Lender’s obligation to make Canadian L/C
Advances to reimburse the applicable Canadian L/C Issuer for
amounts drawn under Canadian Letters of Credit issued by it, as
contemplated by this Section 3.04(c), shall be absolute and
unconditional and shall not be affected by any circumstance,
including (A) any set-off, counterclaim, recoupment, defense or
other right which such Canadian Lender may have against the
applicable Canadian L/C Issuer, the applicable Canadian Borrower or
any other Person for any reason whatsoever, (B) the occurrence or
continuance of a Default, or (C) any other occurrence, event or
condition, whether or not similar to any of the foregoing. No such
making of a Canadian L/C Advance shall relieve or otherwise impair
the obligation of the applicable Canadian Borrower to reimburse the
applicable Canadian L/C Issuer for the amount of any payment made
by such Canadian L/C Issuer under any Canadian Letter of Credit
issued by it, together with interest as provided herein.

     (vi) If any Canadian Lender fails to make available to the
Administrative Agent for the account of the applicable Canadian L/C
Issuer any Canadian L/C Advance required to be made by such
Canadian Lender pursuant to the foregoing provisions of this
Section 3.04(c) by the time specified in Section 3.04(c)(ii), the
applicable Canadian L/C Issuer shall be entitled to recover from
such Canadian Lender (acting through the Administrative Agent), on
demand, such amount with interest thereon for the period from the
date such payment is required to the date on which such payment is
immediately available

59

 

to the applicable Canadian L/C Issuer at a rate per annum
reasonably determined by such Canadian L/C Issuer to be the cost to
it of funding the applicable Canadian L/C Borrowing. A certificate
of the applicable Canadian L/C Issuer submitted to any Canadian
Lender (through the Administrative Agent) with respect to any
amounts owing under this clause (vi) shall be conclusive absent
manifest error.

     (d) Repayment of Participations.

     (i) At any time after a Canadian L/C Issuer has made a payment
under any Letter of Credit issued by it and has received from any
Canadian Lender such Canadian Lender’s Canadian L/C Advance in
respect of such payment in accordance with Section 3.04(c), if the
Administrative Agent receives for the account of the applicable
Canadian L/C Issuer any payment in respect of the related Canadian
Unreimbursed Amount or interest thereon (whether directly from the
applicable Canadian Borrower or otherwise, including proceeds of
cash collateral applied thereto by the Administrative Agent), the
Administrative Agent will distribute to such Canadian Lender its
Pro Rata Share thereof (appropriately adjusted, in the case of
interest payments, to reflect the period of time during which such
Canadian Lender’s Canadian L/C Advance was outstanding) in the same
funds as those received by the Administrative Agent.

     (ii) If any payment received by the Administrative Agent for
the account of a Canadian L/C Issuer pursuant to Section 3.04(c)(i)
is invalidated, declared to be fraudulent or preferential, set
aside or required (including pursuant to any settlement entered
into by the applicable Canadian L/C Issuer in its discretion) to be
paid to a trustee, receiver or any other party, in connection with
any proceeding under any Debtor Relief Law or otherwise, each
Canadian Lender shall pay to the Administrative Agent for the
account of the applicable Canadian L/C Issuer its Pro Rata Share
thereof on demand of the Administrative Agent, plus interest
thereon from the date of such demand to the date such amount is
funded by such Canadian Lender, at a rate per annum reasonably
determined by the applicable Canadian L/C Issuer to be the cost to
it of funding the applicable Canadian L/C Borrowing. The
Administrative Agent will make such demand upon the request of the
applicable Canadian L/C Issuer.

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

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

     (ii) the existence of any claim, counterclaim, set-off,
defense or other right that the applicable Canadian Borrower or any
Subsidiary may have at any

60

 

time against any beneficiary or any transferee of such
Canadian Letter of Credit (or any Person for whom any such
beneficiary or any such transferee may be acting), such Canadian
L/C Issuer or any other Person, whether in connection with this
Agreement, the transactions contemplated hereby or by such Canadian
Letter of Credit or any agreement or instrument relating thereto,
or any unrelated transaction;

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

     (iv) any payment by the applicable Canadian L/C Issuer under
such Letter of Credit (A) against presentation of a draft or
certificate that does not strictly comply with the terms of such
Canadian Letter of Credit provided that, notwithstanding such
failure to present a draft or certificate that strictly complies
with the terms of such Canadian Letter of Credit, either (1) the
amount paid under such Canadian Letter of Credit discharges a debt
or other obligation otherwise then due and payable from a Canadian
Borrower or any of its Subsidiaries to the beneficiary of such
Canadian Letter of Credit or (2) the draft or certificate
substantially complies with the terms of such Canadian Letter of
Credit or (B) to any Person purporting to be a trustee in
bankruptcy, debtor-in-possession, assignee for the benefit of
creditors, liquidator, receiver or other representative of or
successor to any beneficiary or any transferee of such Letter of
Credit, including any arising in connection with any proceeding
under any Debtor Relief Law; or

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

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

     (f) Role of Canadian L/C Issuer. Each Canadian Lender and each Canadian
Borrower agree that, in paying any drawing under a Canadian Letter of Credit,
the applicable Canadian L/C Issuer shall not have any responsibility to obtain
any document (other than any sight draft, certificates and documents expressly
required by the Canadian Letter of Credit) or to ascertain or inquire as to the
validity or accuracy of any such document or the authority of the Person
executing or delivering any such document. None of the Canadian L/C Issuers or
any of

61

 

the respective Related Persons or correspondents, participants or
assignees of any of the Canadian L/C Issuers shall be liable to any Canadian
Lender for (i) any action taken or omitted in connection herewith at the
request or with the approval of the Canadian Lenders or the Canadian Required
Lenders, as applicable; (ii) any action taken or omitted in the absence of
gross negligence or willful misconduct; or (iii) the due execution,
effectiveness, validity or enforceability of any document or instrument related
to any Canadian Letter of Credit or Canadian Letter of Credit Application.
Each Canadian Borrower hereby assumes all risks of the acts or omissions of any
beneficiary or transferee with respect to its use of any Canadian Letter of
Credit; provided, however, that this assumption is not intended to, and shall
not, preclude such Canadian Borrower from pursuing such rights and remedies as
it may have against the beneficiary or transferee at law or under any other
agreement. None of the Canadian L/C Issuers or any of the respective Related
Persons or correspondents, participants or assignees of any Canadian L/C
Issuer, shall be liable or responsible for any of the matters described in
clauses (i) through (v) of Section 3.04(e); provided, however, that anything in
such clauses to the contrary notwithstanding, the applicable Canadian Borrower
may have a claim against a Canadian L/C Issuer, and a Canadian L/C Issuer may
be liable to such Canadian Borrower, to the extent, but only to the extent, of
any direct, as opposed to consequential or exemplary, damages suffered by the
applicable Canadian Borrower that such Canadian Borrower proves were caused by
such Canadian L/C Issuer’s willful misconduct or gross negligence or such
Canadian L/C Issuer’s willful failure to pay under any Canadian Letter of
Credit after the presentation to it by the beneficiary of a sight draft and
certificate(s) strictly complying with the terms and conditions of a Canadian
Letter of Credit issued by it. In furtherance and not in limitation of the
foregoing, a Canadian L/C Issuer may accept documents that appear on their face
to be in order, without responsibility for further investigation, and a
Canadian L/C Issuer shall not be responsible for the validity or sufficiency of
any instrument transferring or assigning or purporting to transfer or assign a
Canadian Letter of Credit or the rights or benefits thereunder or proceeds
thereof, in whole or in part, which may prove to be invalid or ineffective for
any reason.

     (g) With respect to any Cash Collateralization of Canadian L/C Obligations
required pursuant to Section 9.02(c) or 3.06(d), each Canadian Borrower hereby
grants to the Administrative Agent, for the benefit of the Canadian L/C Issuers
and the Canadian Lenders, a security interest in all such cash, deposit
accounts and balances therein constituting or containing cash delivered by the
Canadian Borrowers expressly in satisfaction of their obligation to Cash
Collateralize pursuant hereto, and designated by the Canadian Borrowers as
such, and all proceeds of the foregoing. Such cash collateral shall be
maintained in blocked deposit accounts over which the Administrative Agent
shall have exclusive dominion and control, including the exclusive right of
withdrawal, over such account. Pending application thereof, such cash
collateral shall be invested by the Administrative Agent, at the Canadian
Borrowers’ risk and expense, in such short-term interest bearing investments as
the Administrative Agent may choose after consultation with the applicable
Canadian Borrower. Interest or profits, if any, on such investments shall
accumulate in such account and upon request of the applicable Canadian Borrower
shall, unless an Event of Default shall have occurred and is continuing or,
after giving effect to such distribution, the Outstanding Amount of Canadian
L/C Obligations shall exceed the amount of cash collateral, be distributed to
such Canadian Borrower. Moneys in such account (i) prior to the acceleration
of maturity of Loans, shall be applied by the Administrative Agent to reimburse
the Canadian L/C Issuers for drawings under Canadian Letters of Credit for
which such Canadian L/C Issuers have not been reimbursed and, to the extent not
so applied,

62

 

shall be held for the satisfaction of the reimbursement obligations of the
Canadian Borrowers for the drawings under the Canadian Letters of Credit and
(ii) after the acceleration of maturity of Loans, shall be applied by the
Administrative Agent in accordance with Section 9.03.

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

     (i) Canadian Letter of Credit Fees. The applicable Canadian Borrower
shall pay to the Administrative Agent for the account of each Canadian Lender
in accordance with its Pro Rata Share a Canadian Letter of Credit fee (the
"Canadian Letter of Credit Fee”) for each Canadian Letter of Credit equal to
(i) in the case of Canadian Letters of Credit that are Direct Credit
Substitutes, 100% of the Applicable Margin times the daily maximum amount
available to be drawn under such Canadian Letter of Credit, and (ii) in the
case of Canadian Letters of Credit that are not Direct Credit Substitutes, 50%
of the Applicable Margin times the daily maximum amount available to be drawn
under such Canadian Letter of Credit. Canadian Letter of Credit Fees shall be
(i) computed on a quarterly basis in arrears and (ii) due and payable on the
first Business Day after the end of each March, June, September and December,
commencing with the first such date to occur after the issuance of such Letter
of Credit, on the Letter of Credit Expiration Date and thereafter on demand.
If there is any change in the Applicable Margin during any quarter, the daily
maximum amount of each standby Canadian Letter of Credit shall be computed and
multiplied by the applicable percentage specified above of the Applicable
Margin separately for each period during such quarter that such Applicable
Margin was in effect.

     (j) Fronting Fee and Documentary and Processing Charges Payable to
Canadian L/C Issuers. The applicable Canadian Borrower shall pay directly to
each Canadian L/C Issuer for its own account a fronting fee, with respect to
each Canadian Letter of Credit issued by it, at a rate of 12.5 Basis Points per
annum, payable on the actual daily maximum amount available to be drawn under
such Letter of Credit. Such fronting fee shall be computed on a quarterly
basis in arrears. Such fronting fee shall be due and payable on the first
Business Day after the end of each March, June, September and December,
commencing with the first such date to occur after the issuance of such
Canadian Letter of Credit, on the Letter of Credit Expiration Date and
thereafter on demand. In addition, the applicable Canadian Borrower shall pay
directly to each Canadian L/C Issuer for its own account the customary
issuance, presentation, amendment and other processing fees, and other standard
costs and charges, of such Canadian L/C Issuer relating to letters of credit
issued by it as agreed to by the Canadian Borrowers and the applicable Canadian
L/C Issuer. Such customary fees and standard costs and charges are due and
payable on demand and are nonrefundable.

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

     (l) Designation of Subsidiaries as Account Parties. Notwithstanding
anything to the contrary set forth in this Agreement, including without
limitation Section 3.04(a), a Canadian

63

 

Letter of Credit issued hereunder shall, upon the request of either
Canadian Borrower, be issued for the account of any Subsidiary of such Canadian
Borrower or any Subsidiary of Parent organized in Canada or a province thereof,
provided that notwithstanding such request, the applicable Canadian Borrower
shall be the actual account party for all purposes of this Agreement for such
Canadian Letter of Credit and such request shall not affect the applicable
Canadian Borrower’s reimbursement obligations hereunder with respect to such
Canadian Letter of Credit.

     3.05 Canadian Swing Line Loans.

     (a) The Canadian Swing Line. Subject to the terms and conditions set
forth herein, the Canadian Swing Line Lender agrees to make loans (each such
loan, a “Canadian Swing Line Loan”) to each Canadian Borrower from time to time
on any Business Day during the Availability Period in an aggregate amount not
to exceed at any time outstanding the amount of the Canadian Swing Line
Sublimit, notwithstanding the fact that such Canadian Swing Line Loans, when
aggregated with the Pro Rata Share of the Outstanding Amount of Canadian
Committed Borrowings and Canadian L/C Obligations of the Canadian Lender acting
as Canadian Swing Line Lender, may exceed the amount of such Canadian Lender’s
Canadian Commitment; provided, however, that after giving effect to any
Canadian Swing Line Loan, (i) the Total Canadian Outstandings shall not exceed
the Aggregate Canadian Commitments and (ii) the aggregate Outstanding Amount of
the Canadian Committed Loans of any Canadian Lender, plus such Canadian
Lender’s Pro Rata Share of the Outstanding Amount of all Canadian L/C
Obligations, plus such Canadian Lender’s Pro Rata Share of the Outstanding
Amount of all Canadian Swing Line Loans shall not exceed such Canadian Lender’s
Canadian Commitment; and provided, further, that the applicable Canadian
Borrower shall not use the proceeds of any Canadian Swing Line Loan to
refinance any outstanding Canadian Swing Line Loan. Within the foregoing
limits, and subject to the other terms and conditions hereof, the applicable
Canadian Borrower may borrow under this Section 3.05, prepay under Section
3.06, and reborrow under this Section 3.05. Each Canadian Swing Line Loan
shall be a Canadian Prime Rate Loan. Immediately upon the making of a Canadian
Swing Line Loan, each Canadian Lender shall be deemed to, and hereby
irrevocably and unconditionally agrees to, purchase from the Canadian Swing
Line Lender a risk participation in such Canadian Swing Line Loan in an amount
equal to the product of such Canadian Lender’s Pro Rata Share times the amount
of such Canadian Swing Line Loan.

     (b) Canadian Swing Line Borrowing Procedures. Each Canadian Swing Line
Borrowing shall be made upon the applicable Canadian Borrower’s irrevocable
notice to the Canadian Swing Line Lender and the Administrative Agent, which
may be given by telephone. Each such notice must be received by the Canadian
Swing Line Lender and the Administrative Agent not later than 12:00 noon on the
requested borrowing date, and shall specify (i) the amount to be borrowed,
which shall be a minimum of C$1,000,000, and (ii) the requested borrowing date,
which shall be a Business Day. Each such telephonic notice must be confirmed
promptly by delivery to the Canadian Swing Line Lender and the Administrative
Agent of a written Canadian Swing Line Borrowing Notice, appropriately
completed and signed by a Responsible Officer of the applicable Canadian
Borrower. Promptly after receipt by the Canadian Swing Line Lender of any
telephonic Canadian Swing Line Borrowing Notice, the Canadian Swing Line Lender
will confirm with the Administrative Agent (by telephone or in

64

 

writing) that the Administrative Agent has also received such Canadian
Swing Line Borrowing Notice and, if not, the Canadian Swing Line Lender will
notify the Administrative Agent (by telephone or in writing) of the contents
thereof. Unless the Canadian Swing Line Lender has received notice (by
telephone or in writing) from the Administrative Agent (including at the
request of any Canadian Lender) prior to 12:00 noon on the date of the proposed
Canadian Swing Line Borrowing (A) directing the Canadian Swing Line Lender not
to make such Canadian Swing Line Loan as a result of the limitations set forth
in the proviso to the first sentence of Section 3.05(a), or (B) that one or
more of the applicable conditions specified in Article VI is not then
satisfied, then, subject to the terms and conditions hereof, the Canadian Swing
Line Lender will, not later than 5:00 p.m. on the borrowing date specified in
such Canadian Swing Line Borrowing Notice, make the amount of its Canadian
Swing Line Loan available to the applicable Canadian Borrower wire transfer of
such funds in accordance with instructions provided to (and reasonably
acceptable to) the Canadian Swing Line Lender by the applicable Canadian
Borrower.

     (c) Refinancing of Canadian Swing Line Loans.

     (i) The Canadian Swing Line Lender at any time in its sole and
absolute discretion may request, on behalf of the applicable
Canadian Borrower (which hereby irrevocably authorizes the Canadian
Swing Line Lender to so request on its behalf), that each Canadian
Lender make a Canadian Prime Rate Committed Loan in an amount equal
to such Canadian Lender’s Pro Rata Share of the amount of the
Canadian Swing Line Loans then outstanding. Such request shall be
made in writing (which written request shall be deemed to be a
Canadian Committed Borrowing Notice for purposes hereof) and in
accordance with the requirements of Section 3.02, without regard to
the multiples specified therein for the principal amount of
Canadian Prime Rate Committed Loans, but subject to the first
proviso set forth in Section 3.01 and the conditions set forth in
Section 6.02. The Canadian Swing Line Lender shall furnish the
applicable Canadian Borrower with a copy of the applicable Canadian
Committed Borrowing Notice promptly after delivering such notice to
the Administrative Agent. Each Canadian Lender shall make an
amount equal to its Pro Rata Share of the amount specified in such
Canadian Committed Borrowing Notice available to the Administrative
Agent in immediately available funds for the account of the
Canadian Swing Line Lender at the Administrative Agent’s Office not
later than 1:00 p.m. on the day specified in such Canadian
Committed Borrowing Notice, whereupon, subject to Section
3.05(c)(ii), each Canadian Lender that so makes funds available
shall be deemed to have made a Canadian Prime Rate Committed Loan
to the applicable Canadian Borrower in such amount. The
Administrative Agent shall remit the funds so received to the
Canadian Swing Line Lender.

     (ii) If for any reason (including the nonsatisfaction of the
conditions set forth in Section 6.02) any Canadian Swing Line Loan
cannot be refinanced by Canadian Prime Rate Committed Loans in
accordance with Section 3.05(c)(i), the request for Canadian Prime
Rate Committed Loans submitted by the Canadian Swing Line Lender as
set forth in such Section shall be deemed to be a request by the
Canadian Swing Line Lender that each of the Canadian Lenders fund
its risk

65

 

participation in the relevant Canadian Swing Line Loan, and
each Canadian Lender’s payment to the Administrative Agent for the
account of the Canadian Swing Line Lender pursuant to Section
3.05(c)(i) shall be deemed payment in respect of such
participation. No such funding of a risk participation in a
Canadian Swing Line Loan shall relieve the applicable Canadian
Borrower of any default in the payment thereof.

     (iii) If any Canadian Lender fails to make available to the
Administrative Agent for the account of the Canadian Swing Line
Lender any amount required to be paid by such Canadian Lender
pursuant to the foregoing provisions of this Section 3.05(c) by the
time specified in Section 3.05(c)(i), the Canadian Swing Line
Lender shall be entitled to recover from such Canadian Lender
(acting through the Administrative Agent), on demand, such amount
with interest thereon for the period from the date such payment is
required to the date on which such payment is immediately available
to the Canadian Swing Line Lender at a rate per annum reasonably
determined by the Canadian Swing Line Lender to be the cost to it
of funding such amount. A certificate of the Canadian Swing Line
Lender submitted to any Canadian Lender (through the Administrative
Agent) with respect to any amounts owing under this clause (iii)
shall be conclusive absent manifest error.

     (iv) Each Canadian Lender’s obligation to purchase and fund
risk participations in Canadian Swing Line Loans pursuant to this
Section 3.05(c) shall be absolute and unconditional and shall not
be affected by any circumstance, including (A) any set-off,
counterclaim, recoupment, defense or other right that such Canadian
Lender may have against the Canadian Swing Line Lender, the
applicable Canadian Borrower or any other Person for any reason
whatsoever, (B) the occurrence or continuance of a Default, or (C)
any other occurrence, event or condition, whether or not similar to
any of the foregoing. No such funding of risk participations shall
relieve or otherwise impair the obligation of the applicable
Canadian Borrower to repay Canadian Swing Line Loans, together with
interest thereon as provided herein.

     (d) Repayment of Participations.

     (i) At any time after any Canadian Lender has purchased and
funded a risk participation in a Canadian Swing Line Loan, if the
Canadian Swing Line Lender receives any payment on account of such
Canadian Swing Line Loan, the Canadian Swing Line Lender will
distribute to such Canadian Lender its Pro Rata Share of such
payment (appropriately adjusted, in the case of interest payments,
to reflect the period of time during which such Canadian Lender’s
risk participation was funded) in the same funds as those received
by the Canadian Swing Line Lender.

     (ii) If any payment received by the Canadian Swing Line Lender
in respect of principal or interest on any Canadian Swing Line Loan
is invalidated, declared to be fraudulent or preferential, set
aside or required (including pursuant

66

 

to any settlement entered into by the Canadian Swing Line
Lender in its discretion) to be paid to a trustee, receiver or any
other party, in connection with any proceeding under any Debtor
Relief Law or otherwise, each Canadian Lender shall pay to the
Canadian Swing Line Lender its Pro Rata Share thereof on demand of
the Administrative Agent, plus interest thereon from the date of
such demand to the date such amount is funded by such Lender, at a
rate per annum equal to the Canadian Prime Rate. The
Administrative Agent will make such demand upon the request of the
Canadian Swing Line Lender.

     (e) Interest for Account of Canadian Swing Line Lender. The Canadian
Swing Line Lender shall be responsible for invoicing the applicable Canadian
Borrower for interest on the Canadian Swing Line Loans. Until each Canadian
Lender funds its Canadian Prime Rate Committed Loan or its risk participation
pursuant to this Section 3.05 to refinance such Canadian Lender’s Pro Rata
Share of any Canadian Swing Line Loan, interest in respect of such Lender’s Pro
Rata Share shall be solely for the account of the Canadian Swing Line Lender.

     (f) Payments Directly to Canadian Swing Line Lender. The applicable
Canadian Borrower shall make all payments of principal and interest in respect
of the Canadian Swing Line Loans directly to the Canadian Swing Line Lender.

     3.06 Prepayments.

     (a) Each Canadian Facility Borrower may, upon notice to the Administrative
Agent, at any time or from time to time voluntarily prepay Canadian Committed
Loans (other than, prior to the end of the term thereof, Canadian Committed
Loans by way of Bankers’ Acceptances) in whole or in part without premium or
penalty; provided that (i) such notice must be received by the Administrative
Agent not later than 11:00 a.m. (A) three Business Days prior to any date of
prepayment of Canadian C$ Eurodollar Rate Committed Loans or Canadian US$
Eurodollar Rate Committed Loans and (B) on the date of prepayment of Canadian
Prime Rate Committed Loans and Canadian Base Rate Committed Loans, (ii) any
prepayment of Canadian C$ Eurodollar Rate Committed Loans shall be in a
principal amount of C$5,000,000 or a whole multiple of C$1,000,000 in excess
thereof, and any prepayment of Canadian US$ Eurodollar Rate Committed Loans
shall be in a principal amount of US $5,000,000 or a whole multiple of US
$1,000,000 in excess thereof; (iii) any prepayment of Canadian Prime Rate
Committed Loans shall be in a principal amount of C$1,000,000 or a whole
multiple of C$100,000 in excess thereof, and any prepayment of Canadian Base
Rate Committed Loans shall be in a principal amount of US $1,000,000 or a whole
multiple of US $100,000 in excess thereof or, in each case, if less, the entire
principal amount thereof then outstanding. Each such notice shall specify the
date and amount of such prepayment and the Type(s) of Canadian Committed Loans
to be prepaid, and the payment amount specified in such notice shall be due and
payable on the date specified therein. The Administrative Agent will promptly
notify each Canadian Lender of its receipt of each such notice, and of the
amount of such Canadian Lender’s Pro Rata Share of such prepayment. Any
prepayment of a Canadian Committed Loan shall be accompanied by all accrued
interest thereon, together with any additional amounts required pursuant to
Section 5.05. Each such prepayment shall be applied to the Canadian Committed
Loans of the Canadian Lenders in accordance with their respective Pro Rata
Shares.

67

 

     (b) No Canadian Bid Loan may be prepaid without the prior consent of the
applicable Canadian Bid Loan Lender.

     (c) Each Canadian Borrower may, upon notice to the Canadian Swing Line
Lender (with a copy to the Administrative Agent), at any time or from time to
time, voluntarily prepay Canadian Swing Line Loans in whole or in part without
premium or penalty; provided that (i) such notice must be received by the
Canadian Swing Line Lender and the Administrative Agent not later than 1:00
p.m. on the date of the prepayment, and (ii) any such prepayment shall be in a
minimum principal amount of C $1,000,000. Each such notice shall specify the
date and amount of such prepayment, and the payment amount specified in such
notice shall be due and payable on the date specified therein.

     (d) Except as otherwise provided in Section 3.09 in the circumstances
contemplated thereby, if for any reason the Total Canadian Outstandings (other
than any portion thereof that is Cash Collateralized) at any time exceed the
Aggregate Canadian Commitments then in effect, the Canadian Facility Borrowers
shall immediately prepay Canadian Committed Loans and/or Cash Collateralize the
Canadian L/C Obligations in an aggregate amount equal to such excess (on a
proportionate basis having regard to the Canadian Committed Loans and Canadian
L/C Obligations of each Canadian Facility Borrower); provided, however, that
the Canadian Facility Borrowers shall not be required to Cash Collateralize the
Canadian L/C Obligations pursuant to this Section 3.06(d) unless, after the
prepayment in full of the Canadian Committed Loans and Canadian Swing Line
Loans, the Total Canadian Outstandings exceed the Aggregate Canadian
Commitments then in effect.

     3.07 Repayment of Canadian Loans.

     (a) Each Canadian Facility Borrower shall repay to each Canadian Lender on
the Maturity Date the aggregate principal amount of its Canadian Committed
Loans (or, in the case of Bankers’ Acceptances, the face amount thereof) and
all other Canadian Obligations owing by such Canadian Facility Borrower to such
Lender outstanding on such date.

     (b) The applicable Canadian Facility Borrower shall repay each Canadian
Bid Loan made to it on the last day of the Interest Period in respect thereof.

     3.08 Bankers’ Acceptances.

     (a) Creation of Bankers’ Acceptances. Upon receipt of a Canadian
Committed Borrowing Notice requesting purchase or acceptance of Bankers’
Acceptances, and subject to the provisions of this Agreement, each Canadian
Lender shall accept, in accordance with its Pro Rata Share of the requested
Canadian Committed Borrowing, such Bankers’ Acceptances as the applicable
Canadian Borrower shall request.

     (b) Terms of Acceptance by the Canadian Lenders.

     (i) Delivery and Payment. Subject to Sections 3.08(c) and
3.08(d) and only if a valid appointment pursuant to Section
3.08(b)(v) is not in place, the Canadian Borrowers shall pre-sign
and deliver to each Canadian Lender bankers’ acceptance drafts in
sufficient quantity to meet the requirements for anticipated

68

 

Canadian Committed Borrowings by way of Bankers’ Acceptances.
Each Canadian Borrower shall, at its option, provide for payment to
the Administrative Agent, for the benefit of the Canadian Lenders,
of each Bankers’ Acceptance on the date on which a Bankers’
Acceptance matures, either by payment of the full face amount
thereof or through utilization of a conversion to another Type of
Canadian Committed Borrowing in accordance with this Agreement, or
through a combination thereof. Each Canadian Borrower waives
presentment for payment of Bankers’ Acceptances by the Canadian
Lenders and shall not claim from the Canadian Lenders any days of
grace for the payment at maturity of Bankers’ Acceptances. Any
amount owing by a Canadian Borrower in respect of any Bankers’
Acceptance that is not paid in accordance with the foregoing,
shall, as and from the date on which such Bankers’ Acceptance
matures, be deemed to be outstanding hereunder as a Canadian Prime
Rate Committed Loan owing by such Canadian Borrower.

     (ii) No Liability. The Administrative Agent and the Canadian
Lenders shall not be liable for any damage, loss or improper use of
any bankers’ acceptance draft endorsed in blank except for any loss
arising by reason of the Administrative Agent or a Canadian Lender
failing to use the same standard of care in the custody of such
bankers’ acceptance drafts as the Administrative Agent or such
Canadian Lender use in the custody of their own property of a
similar nature or by reason of the gross negligence or willful
misconduct of such Person or any of its Related Persons.

     (iii) Bankers’ Acceptances Purchased by Canadian Lenders.
Where a Canadian Borrower so elects in the Canadian Committed
Borrowing Notice, each Canadian Lender shall purchase Bankers’
Acceptances accepted by it for an amount equal to the Canadian
Discount Proceeds.

     (iv) Marketing. Where a Canadian Borrower so elects in the
Canadian Committed Borrowing Notice, it shall be responsible for,
and shall make its own arrangements with respect to, the marketing
of Bankers’ Acceptances, except for Bankers’ Acceptances accepted
by Canadian Lenders (“Old System Issuers”) who are not able to
issue Bankers’ Acceptances as depository bills under the Depository
Bills and Notes Act (Canada), which Bankers’ Acceptances shall in
all instances be purchased by such Old System Issuer.

     (v) Power of Attorney. To facilitate the procedures
contemplated in this Agreement, each Canadian Borrower appoints
each Canadian Lender from time to time as the attorney-in-fact of
such Canadian Borrower to execute, endorse and deliver on behalf of
such Canadian Borrower drafts or depository bills in the form or
forms prescribed by such Canadian Lender for Bankers’ Acceptances
denominated in Canadian Dollars. Each Bankers’ Acceptance executed
and delivered by a Canadian Lender on behalf of a Canadian Borrower
shall be as binding upon such Canadian Borrower as if it had been
executed and delivered by a Responsible Officer of such Canadian
Borrower. In this respect, it is each Canadian Lender’s
responsibility to maintain an adequate supply of blank

69

 

forms of Bankers’ Acceptances for acceptance under this
Agreement. The foregoing appointment shall cease to be effective,
in respect of any Canadian Lender regarding such Canadian Borrower,
three Business Days following receipt by such Canadian Lender of a
written notice from such Canadian Borrower revoking such
appointment (which notice shall be copied to the Administrative
Agent); provided that any such revocation shall not affect Bankers’
Acceptances previously executed and delivered by such Canadian
Lender pursuant to such appointment. Each Canadian Lender shall
maintain a record with respect to Bankers’ Acceptances (i) received
by it in blank hereunder, (ii) voided by it for any reason, (iii)
accepted and purchased by it hereunder, and (iv) canceled at their
respective maturities. On request by or on behalf of either
Canadian Borrower, a Canadian Lender shall cancel all forms of
Bankers’ Acceptances that have been pre-signed or pre-endorsed on
behalf of such Canadian Borrower and that are held by such Canadian
Lender and are not required to be issued in accordance with such
Canadian Borrower’s irrevocable notice.

     (vi) Pro-Rata Treatment of Canadian Borrowings.

(A) In the event it is not practicable to allocate Bankers’
Acceptances to each Canadian Lender such that the aggregate
amount of Bankers’ Acceptances required to be purchased by
such Canadian Lender hereunder is in a whole multiple of
C$100,000, the Administrative Agent is authorized by each
Canadian Borrower and each Canadian Lender to make such
allocation as the Administrative Agent determines in its sole
discretion may be equitable in the circumstances and, if the
aggregate amount of such Bankers’ Acceptances is not a whole
multiple of C$100,000, then the Administrative Agent may
allocate (on a basis considered by it to be equitable) the
excess of such Bankers’ Acceptances over the next lowest
whole multiple of C$100,000 to one Canadian Lender, which
shall purchase a Bankers’ Acceptance with a face amount equal
to the excess and having the same term as the corresponding
Bankers’ Acceptances. In no event shall the portion of the
outstanding Canadian Committed Borrowings by way of Bankers’
Acceptances of a Canadian Lender exceed such Canadian
Lender’s Pro Rata Share of the aggregate Canadian Committed
Borrowings by way of Bankers’ Acceptances by more than
C$100,000 as a result of such exercise of discretion by the
Administrative Agent.

(B) If during the term of any Bankers’ Acceptance accepted by
a Canadian Lender hereunder the Canadian Stamping Fee Rate
changes as a result of a change in the Applicable Margin or
an Event of Default occurs and is continuing, the fee paid to
such Canadian Lender by the applicable Canadian Borrower
pursuant to Section 4.02 (in this paragraph called the
“Initial Fee”) with respect to such Bankers’ Acceptance shall
be recalculated based upon such change in the Canadian
Stamping Fee Rate or the existence of such Event of Default
for the number of days during the term of such Bankers’
Acceptance that such change is applicable or

70

 

such Event of Default exists. If such recalculated amount is
in excess of the Initial Fee then the applicable Canadian
Borrower shall pay to such Canadian Lender the amount of such
excess, and if such recalculated amount is less than the
Initial Fee, then the amount of such reduction shall be
credited to other amounts payable by the applicable Canadian
Borrower to such Canadian Lender.

     (c) General Procedures for Bankers’ Acceptances.

     (i) Notice. Each Canadian Borrower may in a Canadian
Committed Borrowing Notice (which notice must be received by the
Administrative Agent not later than 11:00 a.m. one Business Day
prior to the date of the requested Canadian Borrowing by way of
Bankers’ Acceptances) request a Canadian Borrowing by way of
Bankers’ Acceptances. If such Canadian Borrower is responsible for
marketing of such Bankers’ Acceptances under Section 3.08(b)(iv),
such Canadian Borrower by subsequent notice to the Administrative
Agent by 11:00 a.m. on the day of the requested Canadian Borrowing
by way of Bankers’ Acceptances shall provide Administrative Agent
(which shall in turn promptly notify each Canadian Lender) with
information as to the discount proceeds payable by the purchasers
of the Bankers’ Acceptances and the party to whom delivery of the
Bankers’ Acceptances by each Canadian Lender is to be made against
delivery to each Canadian Lender of the applicable discount
proceeds. Such discount proceeds less the fee calculated in
accordance with Section 4.02(c) shall promptly be delivered to the
Administrative Agent. Any telephone advice given under this
Section shall be subject to Section 3.02 and shall be confirmed by
a written notice of the applicable Canadian Borrower to
Administrative Agent prior to 11:30 a.m. on the same day.

     (ii) Continuation. In the case of a continuation of maturing
Bankers’ Acceptances issued by a Canadian Lender, such Canadian
Lender, in order to satisfy the continuing liability of the
applicable Canadian Borrower to the Canadian Lender for the face
amount of the maturing Bankers’ Acceptances issued by the
applicable Canadian Borrower, shall retain for its own account the
Canadian Net Proceeds of each new Bankers’ Acceptance issued by it
in connection with such continuation; and the applicable Canadian
Borrower shall, on the maturity date of the maturing Bankers’
Acceptances issued by the applicable Canadian Borrower, pay to
Administrative Agent for the benefit of Canadian Lenders an amount
equal to the difference between the face amount of the maturing
Bankers’ Acceptances and the aggregate Canadian Net Proceeds of the
new Bankers’ Acceptances.

     (iii) Conversion from Canadian Prime Rate Committed Loans. In
the case of a conversion from a Canadian Prime Rate Committed Loan
into a Canadian Committed Borrowing by way of Bankers’ Acceptances
to be accepted by a Canadian Lender pursuant to Sections 3.08(a),
(b) and (c), such Canadian Lender, in order to satisfy the
continuing liability of the applicable Canadian Borrower to it for
the principal amount of the Canadian Prime Rate Committed

71

 

Loans owing by such Canadian Borrower being converted, shall
retain for its own account the Canadian Discount Proceeds of each
new Bankers’ Acceptance issued by it in connection with such
conversion; and the applicable Canadian Borrower shall, on the date
of issuance of the Bankers’ Acceptances, pay to the Administrative
Agent for the benefit of Canadian Lenders an amount equal to the
difference between the aggregate principal amount of the Canadian
Prime Rate Committed Loans owing by the applicable Canadian
Borrower being converted to the Canadian Lenders and the aggregate
Canadian Discount Proceeds of such Bankers’ Acceptances.

     (iv) Conversions to Canadian Prime Rate Committed Loans. In
the case of a conversion of a Canadian Committed Borrowing by way
of Bankers’ Acceptances into Canadian Prime Rate Committed Loan,
each Canadian Lender, in order to satisfy the liability of the
applicable Canadian Borrower to it for the face amount of the
maturing Bankers’ Acceptances, shall record the obligation of the
applicable Canadian Borrower to it as a Canadian Prime Rate
Committed Loan, unless such Canadian Borrower provides for payment
to Administrative Agent for the benefit of Canadian Lenders of the
face amount of the maturing Bankers’ Acceptance in some other
manner acceptable to Canadian Lenders, including conversion to
another Type of Canadian Borrowing.

     (v) Authorization. Each Canadian Borrower hereby authorizes
each Canadian Lender to complete, stamp, hold, sell, rediscount or
otherwise dispose of all Bankers’ Acceptances accepted by it
pursuant to this Section in accordance with the instructions
provided by the applicable Canadian Borrower pursuant to Sections
3.01 and 3.02, as applicable.

     (vi) Depository Notes. The parties agree that in the
administering of Bankers’ Acceptances, each Canadian Lender may
avail itself of the debt clearing services offered by a clearing
house for depository notes pursuant to the Depository Bills and
Notes Act (Canada) and that the procedures set forth in Section
3.02 be deemed amended to the extent necessary to comply with the
requirements of such debt clearing services.

     (d) Execution of Bankers’ Acceptances. The signatures of any authorized
signatory on Bankers’ Acceptances may, at the option of the applicable Canadian
Borrower, be reproduced in facsimile and such Bankers’ Acceptances bearing such
facsimile signatures shall be binding on the applicable Canadian Borrower as if
they had been manually signed by such authorized signatory. Notwithstanding
that any person whose signature appears on any Bankers’ Acceptance as a
signatory may no longer be an authorized signatory of the applicable Canadian
Borrower at the date of issuance of a Bankers’ Acceptance, and notwithstanding
that the signature affixed may be a reproduction only, such signature shall
nevertheless be valid and sufficient for all purposes as if such authority had
remained in force at the time of such issuance and as if such signature had
been manually applied, and any such Bankers’ Acceptance so signed shall be
binding on such Canadian Borrower.

72

 

     (e) Escrowed Funds. Upon the occurrence of an Event of Default and an
acceleration of the Canadian Committed Loans under Section 9.02, each Canadian
Borrower shall forthwith pay to the Administrative Agent for deposit into an
escrow account maintained by and in the name of Administrative Agent for the
benefit of Canadian Lenders in accordance with their Pro Rata Shares an amount
equal to the Canadian Lenders’ maximum potential liability (as determined by
Administrative Agent) under then outstanding Bankers’ Acceptances for such
Canadian Borrower (together with amounts paid pursuant to the following
sentence, the “Canadian Escrow Funds”). If such Event of Default is either
waived or cured in compliance with the terms of this Agreement, then the
Canadian Escrow Funds, together with any accrued interest to the date of
release, shall be forthwith released to the applicable Canadian Borrower. Upon
a prepayment permitted under Section 3.06 in respect of outstanding Bankers’
Acceptances for a Canadian Borrower, such Canadian Borrower shall pay the
amount of such prepayment to the Administrative Agent for deposit into an
escrow account maintained by and in the name of Administrative Agent for the
benefit of Canadian Lenders in accordance with their Pro Rata Shares of such
Bankers’ Acceptances. The Canadian Escrow Funds shall be held by
Administrative Agent for set-off against future amounts owing by such Canadian
Borrower in respect of such Bankers’ Acceptances and pending such application
shall bear interest at the rate declared by Administrative Agent from time to
time as that payable by it in respect of deposits for such amount and for such
period relative to the maturity date of the Bankers’ Acceptances, as
applicable.

     3.09 Currency Fluctuations. Notwithstanding any other provision of this
Agreement, the Administrative Agent shall have the right at any time and from
time to time to calculate the Total Canadian Outstandings at the US Dollar
Equivalent thereof in US Dollars for any purposes, including making a
determination from time to time of the available undrawn portion of the
Aggregate Canadian Commitments. If, following such calculation, the
Administrative Agent determines that the Total Canadian Outstandings have been
greater than 105% of the Aggregate Canadian Commitments at such time for a
period of three consecutive Business Days, then the Administrative Agent shall
so advise each Canadian Facility Borrower and one or more of such Canadian
Facility Borrowers shall, no later than the seventh Business Day following such
advice, repay outstanding Loans and Cash Collateralize Canadian Letters of
Credit or Bankers’ Acceptances, in an amount equal to the amount by which the
Total Canadian Outstandings then exceeds the Aggregate Canadian Commitments,
together with all accrued interest on the amount so prepaid in respect of any
Loan. Such cash collateral shall be released to the applicable Canadian
Borrower from time to time in minimum amounts of US $100,000 to the extent such
releases will not result in the non-Cash Collateralized Total Canadian
Outstandings exceeding the Aggregate Canadian Commitments.

     3.10 Currency Conversion and Currency Indemnity.

     (a) Each applicable Canadian Facility Borrower shall make payment relative
to any Canadian Borrowings (other than Canadian Base Rate Committed Loans or
Canadian US$ Eurodollar Rate Committed Loans) or Canadian Letters of Credit in
Canadian Dollars and shall make payment relative to Canadian US Base Rate
Committed Loans and Canadian US$ Eurodollar Rate Committed Loans in US Dollars.
If any payment is received on account of any such Canadian Borrowings or
Letter of Credit in any currency (the “Other Currency”) other than the
Applicable Currency (whether voluntarily, pursuant to any conversion of a
Canadian

73

 

Borrowing or pursuant to an order or judgment or the enforcement thereof
or the realization of any security or the liquidation of a Canadian Facility
Borrower or otherwise howsoever), such payment shall constitute a discharge of
the liability of such Canadian Facility Borrower hereunder and under the other
Financing Documents in respect thereof only to the extent of the amount of the
Applicable Currency that the Administrative Agent or relevant Canadian Lenders
are able to purchase with the amount of the Other Currency received by it on
the Business Day next following such receipt in accordance with its normal
procedures and after deducting any premium and costs of exchange.

     (b) If, for the purpose of obtaining or enforcing judgment in any court in
any jurisdiction, it becomes necessary to convert into a particular currency
(the “Judgment Currency”) any amount due in Canadian Dollars, then the
conversion shall be made on the basis of the rate of exchange prevailing on the
next Business Day following the date such judgment is given and in any event
each Canadian Facility Borrower obligated in respect of the amount due and
payable shall be obligated to pay the Administrative Agent or Canadian Lenders
any deficiency in accordance with Section 3.10(a). For the foregoing purposes
“rate of exchange” means the rate at which the Administrative Agent or relevant
Canadian Lenders, as applicable, in accordance with their normal banking
procedures are able on the relevant date to purchase Canadian Dollars with the
Judgment Currency after deducting any premium and costs of exchange.

     (c) If the Administrative Agent or any Canadian Lender receives any
payment or payments on account of the liability of a Canadian Facility Borrower
hereunder pursuant to any judgment or order in any Other Currency, and the
amount of Canadian Dollars that the Administrative Agent or relevant Canadian
Lender is able to purchase on the Business Day next following such receipt with
the proceeds of such payment or payments in accordance with its normal
procedures and after deducting any premiums and costs of exchange is less than
the amount of Canadian Dollars due in respect of such liabilities immediately
prior to such judgment or order, then such Canadian Facility Borrower shall,
within five Business Days after demand, and such Canadian Facility Borrower
hereby agrees to, indemnify and save Administrative Agent or such Canadian
Lender harmless from and against any loss, cost or expense arising out of or in
connection with such deficiency. The agreement of indemnity provided for in
this Section 3.10(c) shall constitute an obligation separate and independent
from all other obligations contained in this Agreement, shall give rise to a
separate and independent cause of action, shall apply irrespective of any
indulgence granted by the Administrative Agent or the Lenders or any of them
from time to time, and shall continue in full force and effect notwithstanding
any judgment or order for a liquidated sum in respect of an amount due
hereunder or under any judgment or order.

ARTICLE IV.

GENERAL PROVISIONS APPLICABLE TO BOTH FACILITIES

     4.01 Interest on Loans.

     (a) Subject to the provisions of subsection (c) below, until paid in full
(i) each US Eurodollar Rate Committed Loan shall bear interest on the
outstanding principal amount thereof for each Interest Period at a rate per
annum equal to the US Dollar Eurodollar Rate for such

74

 

Interest Period plus the Applicable Margin; (ii) each US Base Rate
Committed Loan shall bear interest on the outstanding principal amount thereof
from the applicable borrowing date at a rate per annum equal to the US Base
Rate; (iii) each US Bid Loan shall bear interest on the outstanding principal
amount thereof for the Interest Period therefor at a rate per annum equal to
the US Dollar Eurodollar Rate for such Interest Period plus (or minus) the US
Eurodollar Bid Margin, or at the Absolute Rate for such Interest Period, as the
case may be; and (iv) each US Swing Line Loan shall bear interest on the
outstanding principal amount thereof from the applicable borrowing date at a
rate per annum equal to the US Swing Line Rate.

     (b) Subject to the provisions of subsection (c) below, until paid in full
(i) each Canadian C$ Eurodollar Rate Committed Loan shall bear interest on the
outstanding principal amount thereof for each Interest Period at a rate per
annum equal to the Canadian Dollar Eurodollar Rate for such Interest Period
plus the Applicable Margin; (ii) each Canadian US$ Eurodollar Rate Committed
Loan shall bear interest on the outstanding principal amount thereof for each
Interest Period at a rate per annum equal to the US Dollar Eurodollar Rate for
such Interest Period plus the Applicable Margin; (iii) each Canadian Prime Rate
Committed Loan shall bear interest on the outstanding principal amount thereof
from the applicable borrowing date at a rate per annum equal to the Canadian
Prime Rate; (iv) each Canadian Base Rate Committed Loan shall bear interest on
the outstanding principal amount thereof from the applicable borrowing date at
a rate per annum equal to the US Base Rate; (v) each Canadian Bid Loan shall
bear interest on the outstanding principal amount thereof for the Interest
Period therefor at a rate per annum equal to the Canadian Dollar Eurodollar
Rate or US Dollar Eurodollar Rate, as applicable, for such Interest Period plus
(or minus) the Canadian Eurodollar Bid Margin, or at the Absolute Rate for such
Interest Period, as the case may be; and (vi) each Canadian Swing Line Loan
shall bear interest on the outstanding principal amount thereof from the
applicable borrowing date at a rate per annum equal to the Canadian Swing Line
Rate.

     (c) Interest on past due amounts shall be payable as follows:

     (i) If any amount of principal of any Loan is not paid when
due (without regard to any applicable grace periods), whether at
stated maturity, by acceleration or otherwise, such amount shall
thereafter bear interest at a fluctuating interest rate per annum
at all times equal to the rate one percent (1%) above the rate that
was applicable to such Loan before a principal payment on such Loan
became past due (provided that, in the case of a Loan that bears
interest at a rate based on the US Dollar Eurodollar Rate or
Canadian Dollar Eurodollar Rate, from and after the last day of the
then existing Interest Period therefor, such amount shall
thereafter bear interest at a fluctuating interest rate per annum
at all times equal to, in the case of US Loans, the US Base Rate
plus one percent (1%) and, in the case of Canadian Loans, the
lesser of (A) the Canadian Prime Rate plus two percent (2%) and (B)
the rate reasonably determined by the Administrative Agent to be
the Canadian Lenders’ average cost of funds for such amount), to
the fullest extent permitted by applicable Laws.

     (ii) In the case of any other past due US Obligation or
Canadian Obligation, such past due amount shall thereafter bear
interest at a fluctuating interest rate per annum at all times
equal to, in the case of a past due US

75

 

Obligation, the US Base Rate plus one percent (1%), and, in
the case of a past due Canadian Obligation, the lesser of (A) the
Canadian Prime Rate plus two percent (2%) and (B) the rate
reasonably determined by the Administrative Agent to be the
Canadian Lenders’ average cost of funds for such amount, to the
fullest extent permitted by applicable Laws.

     (iii) Accrued and unpaid interest on past due amounts
(including interest on past due interest) shall be due and payable
upon demand.

     (d) Interest on each Loan shall be due and payable in arrears on each
Interest Payment Date applicable thereto and at such other times as may be
specified herein. Interest hereunder shall be due and payable in accordance
with the terms hereof before and after judgment, and before and after the
commencement of any proceeding under any Debtor Relief Law.

     (e) For the purposes of the Interest Act (Canada), whenever interest
payable pursuant to this Agreement with respect to the Canadian Borrowings,
Canadian L/C Obligations and other amounts payable hereunder or under the other
Financing Documents with respect thereto is calculated on the basis of a period
other than a calendar year (the “Relevant Period”), each rate of interest
determined pursuant to such calculation expressed as an annual rate is
equivalent to such rate as so determined multiplied by the actual number of
days in the calendar year in which the same is to be ascertained and divided by
the number of days in the Relevant Period.

     (f) To the extent permitted by law, the provisions of the Judgment
Interest Act (Alberta) R.S.A. 2000 C.J-1 shall not apply to the Financing
Documents and are hereby expressly waived by Canadian Facility Borrowers.

     (g) The principle of deemed reinvestment of interest shall not apply to
any interest calculation under the Financing Documents with respect to the
Canadian Borrowings, Canadian L/C Obligations, Bankers’ Acceptances and other
amounts payable hereunder or under the other Financing Documents with respect
thereto, and the rates of interest stipulated in this Agreement are intended to
be nominal rates and not effective rates or yields.

     4.02 Fees. In addition to certain fees described in subsections (i) and
(j) of Section 2.04 and subsections (i) and (j) of Section 3.04:

     (a) Facility Fees.

     (i) The US Facility Borrower shall pay to the Administrative
Agent, for the account of each US Lender in accordance with its Pro
Rata Share, a facility fee (the “US Facility Fee”) at a rate per
annum, calculated on the daily aggregate amount of the US
Commitments, irrespective of usage, and after termination of the US
Commitments on the daily aggregate Outstanding Amount of US Loans
and US L/C Obligations (without duplication), until paid in full,
equal to the number of Basis Points per annum based upon the
applicable Debt Rating set forth on the row designated “Facility
Fee Percentage” on Schedule 1.01.

76

 

     (ii) The Canadian Facility Borrowers shall pay, or cause to be
paid, (based upon allocations among themselves determined by them
in their sole discretion) to the Administrative Agent (in the US,
in the case of Parent, and in Canada, in the case of the Canadian
Borrowers), for the account of each Canadian Lender in accordance
with its Pro Rata Share, a facility fee (the “Canadian Facility
Fee”) at a rate per annum, calculated on the daily aggregate amount
of the Canadian Commitments, irrespective of usage, and after
termination of the Canadian Commitments on the daily aggregate
Outstanding Amount of Canadian Loans and Canadian L/C Obligations
(without duplication), until paid in full, equal to the number of
Basis Points per annum based upon the applicable Debt Rating set
forth on the row designated “Facility Fee Percentage” on Schedule
1.01.

     (iii) The Facility Fees shall accrue at all times during the
Availability Period (and thereafter so long as any applicable
Committed Loans, Swing Line Loans or L/C Obligations remain
outstanding), including at any time during which one or more of the
conditions in Article VI is not met, and shall be due and payable
quarterly in arrears on the first Business Day after the end of
each March, June, September and December, commencing with the first
such date to occur after the Effective Date, and on the Maturity
Date (and, if applicable, thereafter on demand). The Facility Fees
shall be calculated quarterly in arrears, and if there is any
change in the applicable rate for determining Facility Fees as a
result of a change in the Debt Rating during any quarter, the
actual daily amount shall be computed and multiplied by the
applicable rate separately for each period during such quarter,
determined with reference to the applicable Debt Rating in effect
for such period.

     (b) Utilization Fees.

     (i) The Borrowers shall pay to the Administrative Agent, for
the account of each Lender in accordance with its Pro Rata Share, a
utilization fee (the “Utilization Fee”) equal to 12.5 Basis Points
times the Total Outstandings (A) on each day that the Total
Outstandings exceed 50% of the actual daily amount of the Aggregate
Commitments then in effect and (B) on each day after the
termination of the Commitments. It is agreed that (i) payments
being made to the Canadian Lenders in respect of Canadian Credit
Extensions made to the Canadian Borrowers will be made from an
establishment within Canada and (ii) payments being made to the US
Lenders in respect of US Credit Extensions to the US Facility
Borrower, and payments being made to US branches or US Affiliates
of the Canadian Lenders in respect of Canadian Credit Extensions to
the Parent, will be made from an establishment within the United
States; provided that the foregoing shall not affect or limit the
Borrowers’ ability to allocate the Utilization Fee among themselves
in their sole discretion.

     (ii) The Utilization Fees shall accrue at all times during the
Availability Period (and thereafter so long as any Committed Loans,
Swing Line Loans or L/C Obligations remain outstanding), including
at any time during

77

 

which one or more of the conditions in Article VI is not met,
and shall be due and payable quarterly in arrears on the first
Business Day after the end of each March, June, September and
December, commencing with the first such date to occur after the
Effective Date, and on the Maturity Date (and, if applicable,
thereafter on demand). The Utilization Fee shall be calculated
quarterly in arrears.

     (c) Canadian Stamping Fee. In consideration of each Canadian Lender’s
commitment to accept Bankers’ Acceptances under this Agreement, the applicable
Canadian Borrower will pay to Administrative Agent for the account of each
Canadian Lender a stamping fee in an amount equal to the Canadian Stamping Fee
Rate multiplied by the face amount of each Bankers’ Acceptance accepted by such
Canadian Lender under this Agreement calculated for the number of days in the
term of such Bankers’ Acceptance. Such fee shall be due and payable on the
date on which such Bankers’ Acceptances are accepted and if such Canadian
Lender is purchasing such Bankers’ Acceptance, such fee shall be deducted from
the Canadian Discount Proceeds paid to the applicable Canadian Borrower.

     (d) Other Fees. The Borrowers shall pay to the Joint Lead Arrangers and
the Administrative Agent for their own respective accounts (based upon
allocations among themselves determined by them in their sole discretion) fees
in the amounts and at the times specified in the Fee Letter. Such fees shall
be fully earned when paid and shall not be refundable for any reason
whatsoever.

     4.03 Computation of Interest and Fees. All computations of interest for
Loans interest on which is determined by reference to the Canadian Dollar
Eurodollar Rate or the US Dollar Eurodollar Rate shall be made on the basis of
a year of 360 days and actual days elapsed. All other computations of interest
on Loans and all computations of stamping fees for Bankers’ Acceptances,
Facility Fees, Utilization Fees and other fees, and of all other amounts
computed based on a per annum rate, payable under this Agreement or the Fee
Letter, shall be made on the basis of a year of 365 or 366 days, as the case
may be, and actual days elapsed. Interest shall accrue on each Loan for the
day on which the Loan is made, and shall not accrue on a Loan, or any portion
thereof, for the day on which the Loan or such portion is paid, provided that
any Loan that is repaid on the same day on which it is made shall, subject to
Section 4.05(a), bear interest for one day. Fees shall accrue from the first
day of the applicable computation period to the last day of such period.

     4.04 Evidence of Debt.

     (a) The Credit Extensions made by each Lender shall be evidenced by one or
more accounts or records maintained with respect to each applicable Borrower by
such Lender and by the Administrative Agent in the ordinary course of business.
The accounts or records maintained by the Administrative Agent and each Lender
shall be conclusive absent manifest error of the amount of the Credit
Extensions made by the Lenders to the Borrowers and the interest and payments
thereon. Any failure so to record or any error in doing so shall not, however,
limit or otherwise affect the obligation of each Borrower hereunder to pay any
amount owing by it with respect to the Obligations. In the event of any
conflict between the accounts and records maintained by any Lender and the
accounts and records of the Administrative Agent in respect of such matters,
the accounts and records of the Administrative Agent shall control in the
absence

78

 

of manifest error. Upon the request of any Lender made through the
Administrative Agent, the applicable Borrower shall execute and deliver to such
Lender (through the Administrative Agent) a Note, which shall evidence such
Lender’s Loans in addition to such accounts or records. Each Lender may attach
schedules to its Note and endorse thereon the date, Type (if applicable),
amount and maturity of its Loans and payments with respect thereto.

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

     4.05 Payments Generally.

     (a) All payments to be made by any Borrower shall be made without
condition or deduction for any counterclaim, defense, recoupment or setoff.
Except as otherwise expressly provided herein, all payments by any Borrower
hereunder shall be made to the Administrative Agent, for the account of the
respective Lenders to which such payment is owed, at the Administrative Agent’s
Office in the Applicable Currency, and in immediately available funds, not
later than 2:00 p.m. on the date specified herein. The Administrative Agent
will promptly distribute to each applicable Lender its Pro Rata Share (or other
applicable share as provided herein) of such payment in like funds as received
by wire transfer to such Lender’s Lending Office. All payments received by the
Administrative Agent after 2:00 p.m. shall be deemed received on the next
succeeding Business Day and any applicable interest or fee shall continue to
accrue.

     (b) If any payment to be made by any Borrower shall come due on a day
other than a Business Day, payment shall be made on the next following Business
Day, and such extension of time shall be reflected in computing interest or
fees, as the case may be.

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

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

79

 

Canadian Loans or Canadian Letters of Credit, the rate per
annum reasonably determined by the Administrative Agent to be the
cost to it of funding such amount); and

     (ii) if any Lender failed to make such payment, such Lender
shall forthwith on demand pay to the Administrative Agent the
amount thereof in immediately available funds, together with
interest thereon for the period from the date such amount was made
available by the Administrative Agent to the applicable Borrower to
the date such amount is recovered by the Administrative Agent (the
“Compensation Period”) at a rate per annum equal to (A) in the case
of payments under the US Facility, the Federal Funds Rate from time
to time in effect and (B) in the case of payments under the
Canadian Facility, the rate per annum reasonably determined by the
Administrative Agent to be the cost to it of funding such amount.
If such Lender pays such amount to the Administrative Agent, then
such amount shall constitute such Lender’s Committed Loan or Bid
Loan, as the case may be, included in the applicable Borrowing. If
such Lender does not pay such amount forthwith upon the
Administrative Agent’s demand therefor, the Administrative Agent
may make a demand therefor upon the applicable Borrower, and such
Borrower shall pay such amount to the Administrative Agent,
together with interest thereon for the Compensation Period at a
rate per annum equal to the rate of interest applicable to the
applicable Borrowing. Nothing herein shall be deemed to relieve
any Lender from its obligation to fulfill its Commitment or to
prejudice any rights which the Administrative Agent or any Borrower
may have against any Lender as a result of any default by such
Lender hereunder.

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

     (d) If any Lender makes available to the Administrative Agent funds for
any Loan to be made by such Lender as provided in the foregoing provisions of
this Article IV, and such funds are not made available to the applicable
Borrower by the Administrative Agent because the conditions to the applicable
Credit Extension set forth in Article VI are not satisfied or waived in
accordance with the terms hereof, the Administrative Agent shall return such
funds (in like funds as received from such Lender) to such Lender, without
interest.

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

     (f) The obligations of the Canadian Lenders hereunder to make Canadian
Committed Loans (including the obligations to accept or purchase Bankers’
Acceptances) and to fund participations in Canadian Letters of Credit and
Canadian Swing Line Loans are several and not joint. The failure of any
Canadian Lender to make any Canadian Committed Loan (including by

80

 

accepting or purchasing any Bankers’ Acceptance) or to fund any such
participation on any date required hereunder shall not relieve any other
Canadian Lender of its corresponding obligation to do so on such date, and no
Canadian Lender shall be responsible for the failure of any other Canadian
Lender to so make its Canadian Committed Loan or purchase its participation.

     (g) Nothing herein shall be deemed to obligate any Lender to obtain the
funds for any Loan in any particular place or manner or to constitute a
representation by any Lender that it has obtained or will obtain the funds for
any Loan in any particular place or manner.

     4.06 Sharing of Payments.

     (a) If, other than as expressly provided elsewhere herein, any US Lender
shall obtain on account of the US Committed Loans made by it, or the
participations in US L/C Obligations or in US Swing Line Loans held by it, any
payment (whether voluntary, involuntary, through the exercise of any right of
set-off, or otherwise) in excess of its ratable share (or other share
contemplated hereunder) thereof, such Lender shall immediately (i) notify the
Administrative Agent of such fact and (ii) purchase from the other US Lenders
such participations in the US Committed Loans made by them and/or such
subparticipations in the participations in US L/C Obligations or US Swing Line
Loans held by them, as the case may be, as shall be necessary to cause such
purchasing Lender to share the excess payment in respect of such US Committed
Loans or such participations, as the case may be, pro rata with each of them;
provided, however, that if all or any portion of such excess payment is
thereafter recovered from the applicable purchasing Lender under any of the
circumstances described in Section 12.07 (including pursuant to any settlement
entered into by the purchasing Lender in its discretion), such purchase shall
to that extent be rescinded and each other applicable Lender shall repay to the
purchasing Lender the purchase price paid therefor, together with an amount
equal to such paying Lender’s ratable share (according to the proportion of (i)
the amount of such paying 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, without further interest thereon. The US Facility Borrower agrees
that any US Lender so purchasing a participation from the other US Lenders may,
to the fullest extent permitted by law, exercise all its rights of payment
(including the right of set-off, but subject to Section 12.05) with respect to
such participation as fully as if such Lender were the direct creditor of the
US Facility Borrower in the amount of such participation. The Administrative
Agent will keep records (which shall be conclusive and binding in the absence
of manifest error) of participations purchased under this subsection and will
in each case notify the applicable Lenders following any such purchases or
repayments. Each US Lender that purchases a participation pursuant to this
subsection shall from and after such purchase have the right to give all
notices, requests, demands, directions and other communications under this
Agreement with respect to the portion of the US Obligations purchased to the
same extent as though the purchasing Lender were the original owner of the US
Obligations purchased.

     (b) If, other than as expressly provided elsewhere herein, any Canadian
Lender shall obtain on account of the Canadian Committed Loans (including
Canadian Committed Loans by way of Bankers’ Acceptances) made by it or the
participations in Canadian L/C Obligations or in Canadian Swing Line Loans held
by it, any payment (whether voluntary, involuntary, through the exercise of any
right of set-off, or otherwise) in excess of its ratable share (or other share

81

 

contemplated hereunder) thereof, such Canadian Lender shall immediately
(i) notify the Administrative Agent of such fact and (ii) purchase from the
other Canadian Lenders such participations in the Canadian Committed Loans
(including Bankers Acceptances) made by them and/or such subparticipations in
the participations in Canadian L/C Obligations or Canadian Swing Line Loans
held by them, as the case may be, as shall be necessary to cause such
purchasing Canadian Lender to share the excess payment in respect of such
Canadian Committed Loans or such participations, as the case may be, pro rata
with each of them; provided, however, that if all or any portion of such excess
payment is thereafter recovered from the applicable purchasing Canadian Lender
under any of the circumstances described in Section 12.07 (including pursuant
to any settlement entered into by the purchasing Canadian Lender in its
discretion), such purchase shall to that extent be rescinded and each other
applicable Canadian Lender shall repay to the purchasing Canadian Lender the
purchase price paid therefor, together with an amount equal to such paying
Canadian Lender’s ratable share (according to the proportion of (i) the amount
of such paying Canadian Lender’s required repayment to (ii) the total amount so
recovered from the purchasing Canadian Lender) of any interest or other amount
paid or payable by the purchasing Canadian Lender in respect of the total
amount so recovered, without further interest thereon. The Canadian Facility
Borrowers agree that any Canadian Lender so purchasing a participation from
another Canadian Lender may, to the fullest extent permitted by law, exercise
all its rights of payment (including the right of set-off, but subject to
Section 12.05) with respect to such participation as fully as if such Canadian
Lender were the direct creditor of the applicable Canadian Facility Borrower in
the amount of such participation. The Administrative Agent will keep records
(which shall be conclusive and binding in the absence of manifest error) of
participations purchased under this subsection and will in each case notify the
applicable Canadian Lenders following any such purchases or repayments. Each
Canadian Lender that purchases a participation pursuant to this subsection
shall from and after such purchase have the right to give all notices,
requests, demands, directions and other communications under this Agreement
with respect to the portion of the Canadian Obligations purchased to the same
extent as though the purchasing Canadian Lender were the original owner of the
Canadian Obligations purchased.

     4.07 Extension of Maturity Date.

     (a) The US Facility Borrower may, at any time and from time to time, upon
notice to the Administrative Agent (which shall promptly notify the Lenders),
request, for itself and the Canadian Borrowers, a one-year extension of the
Maturity Date then in effect. Within 30 days of delivery of such notice, each
Lender shall notify the Administrative Agent whether or not it consents to such
extension (which consent may be given or withheld in such Lender’s sole and
absolute discretion). The US Facility Borrower may not request more than two
such extensions. Any Lender not responding within the above time period shall
be deemed not to have consented to such extension. The Administrative Agent
shall promptly notify the US Facility Borrower and the Lenders of the Lenders’
responses.

     (b) The Maturity Date shall be extended only if Lenders constituting the
Extension Required Lenders (the “Consenting Lenders”) have consented thereto.
If so extended, the Maturity Date, as to the Consenting Lenders, shall be
extended to the same date in the following year, effective as of the Maturity
Date then in effect (such existing Maturity Date being the “Extension Effective
Date”). The Administrative Agent and the US Facility Borrower shall

82

 

promptly confirm to the Lenders such extension and the Extension Effective
Date. As a condition precedent to such extension, the US Facility Borrower
shall deliver to the Administrative Agent a certificate of each Loan Party
dated as of the Extension Effective Date (in sufficient copies for each Lender)
signed by a Responsible Officer of such Loan Party certifying that, (A) before
and after giving effect to such extension, any representations and warranties
contained in Article VII made by it are true and correct in all material
respects on and as of the Extension Effective Date, except to the extent that
such representations and warranties specifically refer to an earlier date, (B)
immediately before and immediately after giving effect to such extension no
Default will exist, and (C) from the date of the most recent financial
statements of Parent delivered pursuant to Section 8.03 to and including the
proposed Extension Effective Date there has been no material adverse change in
the consolidated financial condition, or in the consolidated results of
operations, of Parent and its consolidated Subsidiaries from that shown on such
most recent financial statements. The US Facility Borrower shall prepay any US
Committed Loans outstanding on the Extension Effective Date (and pay any
additional amounts required pursuant to Section 5.05) to the extent necessary
to keep outstanding US Committed Loans ratable with any revised and new Pro
Rata Shares of all the US Lenders effective as of the Extension Effective Date.
Each Canadian Facility Borrower shall prepay any Canadian Committed Loans
owing by it outstanding on the Extension Effective Date (and pay any additional
amounts required pursuant to Section 5.05) to the extent necessary to keep
outstanding Canadian Committed Loans ratable with any revised and new Pro Rata
Shares of all the Canadian Lenders effective as of the Extension Effective
Date.

     (c) If any Lender does not consent to the extension of the Maturity Date
as provided in this Section 4.07, the US Facility Borrower shall have the right
to replace such Lender in accordance with Section 12.11.

     (d) This Section shall supersede any provisions in Section 4.06 or 12.01
to the contrary.

     4.08 Increase in Commitments.

     (a)      (i) So long as at the time such notice is given there exists no
Default, upon notice to the Administrative Agent (which shall promptly
notify the Lenders), Parent may, from time to time, request of the
Lenders generally an increase in the US Commitments and/or the Canadian
Commitments, provided that (A) the Aggregate Commitments shall not exceed
US $2,250,000,000 and (B) unless otherwise agreed to by Parent and the
Administrative Agent, any such request for an increase shall be in a
minimum aggregate amount of US $50,000,000. In connection therewith,
Parent may, from time to time, request an increase in any of the US
Letter of Credit Sublimit, the US Swing Line Sublimit, the Canadian
Letter of Credit Sublimit and the Canadian Swing Line Sublimit. At the
time of sending such notice, the US Facility Borrower (in consultation
with the Administrative Agent) shall specify the time period within which
each Lender is requested to respond (which shall in no event be less than
ten Business Days from the date of delivery of such notice to the
Lenders). Any increase in the US Letter of Credit Sublimit or the
Canadian Letter of Credit Sublimit shall require the prior written
consent of each US L/C Issuer and each Canadian L/C Issuer, respectively,
and any increase in the US Swing Line Sublimit or the Canadian Swing Line
Sublimit shall

83

 

require the prior written consent of the US Swing Line Lender and
the Canadian Swing Line Lender, respectively. Each Lender shall notify
the Administrative Agent within the time period specified by the US
Facility Borrower whether or not it agrees (i) to increase its Commitment
and, if so, whether by an amount equal to, greater than, or less than its
Pro Rata Share of such requested increase and (ii) if applicable, to
increase the US Letter of Credit Sublimit, the US Swing Line Sublimit,
the Canadian Letter of Credit Sublimit and the Canadian Swing Line
Sublimit. Any Lender not responding within such time period shall be
deemed to have declined to increase its Commitment (or, if applicable, to
increase the US Letter of Credit Sublimit, the US Swing Line Sublimit,
the Canadian Letter of Credit Sublimit and the Canadian Swing Line
Sublimit, as the case may be). The Administrative Agent shall notify the
US Facility Borrower and each Lender of the Lenders’ responses to each
request made hereunder.

            (ii) As an alternative to the procedure set forth in paragraph (i)
above, but subject to the proviso set forth therein, to achieve the
desired increase in the US Commitments and/or the Canadian Commitments,
Parent may invite one or more existing Lenders and/or one or more
Eligible Assignees (who will become Lenders pursuant to a joinder
agreement (a “Joinder Agreement”) in form and substance reasonably
satisfactory to the Administrative Agent and its counsel) to increase
their existing, or provide new, US Commitments or Canadian Commitments,
as applicable, all without the consent of any Person other than the
existing Lender or Eligible Assignee that is the recipient of such
invitation (and each Lender hereby agrees, subject to satisfaction of the
conditions set forth in Section 4.08(b), to execute and deliver to the
Administrative Agent and each Borrower and each other party hereto an
amendment to this Agreement giving effect to any increase in the US
Commitments and/or the Canadian Commitments in accordance with this
Section 4.08).

     (b) If the US Commitments or the Canadian Commitments (and, if applicable,
the US Letter of Credit Sublimit, the US Swing Line Sublimit, the Canadian
Letter of Credit Sublimit and the Canadian Swing Line Sublimit) are increased
in accordance with this Section, the Administrative Agent and Parent shall
determine, and the Administrative Agent shall promptly notify the Lenders of,
the effective date (the “Increase Effective Date”) of such increase and, with
respect to any increase in the Commitments, the final allocation of such
increase. As a condition precedent to any increase pursuant to this Section,
the US Facility Borrower shall deliver to the Administrative Agent a
certificate of each Loan Party dated as of the Increase Effective Date (in
sufficient copies for each Lender) signed by a Responsible Officer of such Loan
Party (i) certifying and attaching the resolutions adopted by such Loan Party
approving or consenting to such increase, and (ii) in the case of each
Borrower, certifying that, immediately before and immediately after giving
effect to such increase, (A) the representations and warranties contained in
Article VII and the other Financing Documents made by it are true and correct
in all material respects on and as of the Increase Effective Date, except to
the extent that such representations and warranties specifically refer to an
earlier date, in which case they are true and correct in all material respects
as of such earlier date and (B) no Default exists. The US Facility Borrower
shall prepay any US Committed Loans outstanding on the Increase Effective Date
(and pay any additional amounts required pursuant to Section 5.05) to the
extent necessary to keep the outstanding US Committed Loans ratable with any
revised Pro Rata Shares arising from any nonratable increase in the US
Commitments under this Section. Each Canadian

84

 

Borrower shall prepay any Canadian Committed Loans owing by it and
outstanding on the Increase Effective Date (and pay any additional amounts
required pursuant to Section 5.05) to the extent necessary to keep the
outstanding Canadian Committed Loans ratable with any revised Pro Rata Shares
arising from any nonratable increase in the Canadian Commitments under this
Section.

     (c) This Section shall supersede any provisions in Sections 4.06 or 12.01
to the contrary.

     4.09 Termination or Reduction of Commitments. The US Facility Borrower
may, upon notice to the Administrative Agent, terminate the Aggregate
Commitments (including the Aggregate Canadian Commitments), or from time to
time permanently reduce the Aggregate Commitments (and to the extent specified
in such notice reduce the Aggregate Canadian Commitments); provided that (i)
any such notice shall be received by the Administrative Agent not later than
11:00 a.m. two Business Days prior to the date of termination or reduction,
(ii) any such partial reduction shall be in an aggregate amount of US
$10,000,000 or any whole multiple of US $1,000,000 in excess thereof, (iii) the
US Facility Borrower shall not terminate or reduce the Aggregate Commitments
(and the Aggregate Canadian Commitments, if applicable) if, after giving effect
thereto and to any concurrent prepayments hereunder, (1) the Total Outstandings
would exceed the Aggregate Commitments, (2) the Total US Outstandings would
exceed the Aggregate US Commitments, or (3) the Total Canadian Outstandings
would exceed the Aggregate Canadian Commitments, and (iv) if, after giving
effect to any reduction of the Aggregate Commitments, the US Letter of Credit
Sublimit or the US Swing Line Sublimit exceeds the amount of the Aggregate US
Commitments or the Canadian Letter of Credit Sublimit or the Canadian Swing
Line Sublimit exceeds the Aggregate Canadian Commitments, such Sublimits shall
be automatically reduced by the amount of such excess. The Administrative
Agent will promptly notify the Lenders of any such notice of termination or
reduction of the Aggregate Commitments. Any reduction of the Aggregate
Commitments shall be applied to the US Commitment of each Lender according to
such Lender’s Pro Rata Share. All fees accrued until the effective date of any
termination of the Aggregate Commitments shall be paid on the effective date of
such termination.

ARTICLE V.

TAXES, YIELD PROTECTION AND ILLEGALITY

     5.01 Taxes.

     (a) Subject to Section 5.01(f), any and all payments by any Borrower to or
for the account of the Administrative Agent or any Lender under any Financing
Document shall be made free and clear of and without deduction for any and all
present or future taxes, duties, levies, imposts, deductions, assessments,
fees, withholdings or similar charges, and all liabilities with respect thereto
(“Charges”), excluding, in the case of the Administrative Agent and each
Lender, (i) Charges imposed on or measured by its net income or profits, and
franchise taxes imposed on it (in lieu of net income or profits taxes), and any
other Charges, in each case imposed by the jurisdiction (or any political
subdivision thereof) under the Laws of which the Administrative Agent or such
Lender, as the case may be, is organized, domiciled, resident, doing business,
maintains a lending office or otherwise extends credit from and (ii) any other

85

 

Charges in effect at the time such Administrative Agent or Lender executed
or otherwise first became entitled to the benefits of this Agreement (all such
non-excluded Charges being hereinafter referred to as “Taxes”). If any
Borrower shall be required by any Laws to deduct any Taxes from or in respect
of any sum payable under any Financing Document to the Administrative Agent or
any Lender, (i) subject to compliance in full by such Lender with Sections
5.01(f) and 5.01(g), as applicable, the sum payable shall be increased as
necessary so that after making all required deductions (including deductions
applicable to additional sums payable under this Section), each of the
Administrative Agent and such Lender receives an amount equal to the sum it
would have received had no such deductions been made, (ii) such Borrower shall
make such deductions, (iii) such Borrower shall pay the full amount deducted to
the relevant taxation authority or other authority in accordance with
applicable Laws, and (iv) within 30 days after the date of such payment, such
Borrower shall furnish to the Administrative Agent (which shall forward the
same to such Lender) the original or a certified copy of a receipt evidencing
payment thereof.

     (b) In addition, the Borrowers agree to pay any and all present or future
stamp, or documentary taxes and any other excise or property taxes or similar
levies which arise from any payment made under any Financing Document or from
the execution, delivery, performance, enforcement or registration of, or
otherwise with respect to, any Financing Document (hereinafter referred to as
"Other Taxes”).

     (c) Subject to compliance in full by such Lender with Sections 5.01(f) and
5.01(g), as applicable, each Borrower agrees to indemnify the Administrative
Agent and each Lender for (i) the full amount of Taxes and Other Taxes
(including any Taxes or Other Taxes imposed or asserted by any jurisdiction on
amounts payable under this Section) paid by the Administrative Agent and such
Lender and (ii) any liability (including additions to tax, penalties, interest
and expenses) arising therefrom or with respect thereto, in each case whether
or not such Taxes or Other Taxes were correctly or legally imposed or asserted
by the relevant Governmental Authority; provided that the Borrowers shall not
be obligated to indemnify the Administrative Agent or any Lender pursuant to
this Section 5.01(c) in respect of penalties, interest or expenses arising from
or with respect to such Taxes or Other Taxes if such penalties, interest or
expenses are attributable to the gross negligence or willful misconduct of the
Person seeking indemnification. Any payment required to be made under this
Section 5.01(c) shall be made within 30 days after the date such Lender or the
Administrative Agent makes a demand therefor.

     (d) In the event that any Lender or the Administrative Agent receives a
refund in respect of Taxes or Other Taxes as to which it has been paid
additional amounts by any Borrower pursuant to clause (a) or (b) above or
indemnified by any Borrower pursuant to clause (c) and such refund is
attributable to such additional amounts or indemnification, then such Lender or
Administrative Agent, as applicable, shall promptly notify the Administrative
Agent and the applicable Borrower and shall within 30 Business Days remit to
such Borrower an amount as such Lender or Administrative Agent, as applicable,
reasonably determines, in good faith, to be the proportion of the refunded
amount as will leave it, after such remittance, in no better or worse position
than it would have been if the Taxes or Other Taxes had not been imposed and
the corresponding additional amounts or indemnification payment not been made;
provided, that such Borrower, upon request by the Administrative Agent or such
Lender, shall promptly return such refund to the Administrative Agent or such
Lender, as the case may be, in

86

 

the event that the Administrative Agent or such Lender is required to
repay such refund to the relevant Governmental Authority. Nothing contained in
this Section 5.01(d) shall require the Administrative Agent or any Lender to
make available to any Borrower any of its tax returns or any other information
relating to its taxes that it deems to be confidential.

     (e) If requested by any Borrower, any Lender claiming any indemnity or
additional amounts payable pursuant to this Section 5.01 shall use its best
reasonable efforts (consistent with its reasonable internal policy and legal
and regulatory restrictions) to change the jurisdiction of its designated
Lending Office if the making of such a change would avoid the need for, or
reduce the amount of, any such indemnity or additional amounts which would be
payable or may thereafter accrue; provided, that such designation would not, in
the sole judgment of such Lender exercised in good faith, be otherwise
disadvantageous to such Lender; provided, further, that nothing in this Section
5.01(e) shall adversely affect or postpone any of the obligations of any
Borrower or the rights of any Lender under this Agreement.

     (f) Each Canadian Lender that is not a Canadian Resident Lender shall
deliver, or have its applicable lending office deliver, to the Canadian
Borrowers and the Administrative Agent on the date on which such Canadian
Lender or such applicable lending office becomes a Canadian Lender hereunder
(whether by way of becoming a successor Canadian Lender or otherwise), notice
that the Canadian Lender is not a Canadian Resident Lender. In addition, if
there is any change in such status, the applicable Canadian Lender shall
provide notice of such change promptly to the Canadian Borrowers and the
Administrative Agent. Notwithstanding any provision hereof to the contrary and
for the avoidance of doubt, it is acknowledged by the parties that there may be
Canadian tax imposed under Part XIII of the Income Tax Act (Canada) (“Canadian
Withholding Tax”) on any payments as, on account or in lieu of payment of, or
in satisfaction of, interest and other fees paid by the Canadian Borrowers or
the Administrative Agent under the Canadian Facility (but, for greater
certainty, excluding any payments under the Guaranties) to persons who are not
Canadian Resident Lenders (such payments a “Taxable Payment”). The Canadian
Borrowers shall have no obligation to make any additional or increased payment
under clause (a) or clause (b) above, or to indemnify the Administrative Agent
or a Canadian Lender under clause (c) above, in respect of any Canadian
Withholding Tax on a Taxable Payment, and the Canadian Borrowers shall be
entitled to deduct and remit to the proper Canadian taxing authorities any such
Canadian Withholding Tax from any such Taxable Payments.

     (g) On or prior to the date on which the Administrative Agent and each
Lender that is not a United States person (as such term is defined in Section
7701(a)(30) of the Internal Revenue Code) executes this Agreement or otherwise
first becomes entitled to the benefits of this Agreement, such party shall
provide the US Facility Borrower and the Administrative Agent with U.S.
Internal Revenue Service form W-8BEN, W-8IMY or W-8ECI, as appropriate, or any
successor form prescribed by the U.S. Internal Revenue Service, certifying that
such party is fully exempt from United States withholding taxes with respect to
all payments to be made to such party hereunder, or other documents
satisfactory to the US Facility Borrower indicating that all payments to be
made to such party hereunder are fully exempt from such taxes. Thereafter and
from time to time, each such party shall submit to the US Facility Borrower and
the Administrative Agent such additional duly completed and signed copies of
one or the other of such forms (or such successor forms as shall be adopted
from time to time by the relevant United

87

 

States taxing authorities) as may be (i) notified by the US Facility
Borrower to such party and (ii) required under then-current United States law
or regulations to avoid United States withholding taxes on payments in respect
of all amounts to be received by such party pursuant to this Agreement,
including fees. Upon the request of the US Facility Borrower from time to
time, the Administrative Agent and each Lender that is a United States person
(as such term is defined in Section 7701(a)(30) of the Internal Revenue Code)
shall submit to the US Facility Borrower a certificate to the effect that it is
such a United States person, in such form as the US Facility Borrower shall
reasonably request. If any of the Administrative Agent or any Lender
determines, as a result of any change in applicable law, regulation or treaty,
or in any official application or interpretation thereof, that it is unable to
submit to the US Facility Borrower any form or certificate that such party is
obligated to submit pursuant to this subsection (g), or that such party is
required to withdraw or cancel any such form or certificate previously
submitted, such party shall promptly notify the US Facility Borrower and the
Administrative Agent of such fact. With respect to the Administrative Agent
and any Lender, other than as a result of any change in applicable law which
first becomes effective after the Administrative Agent or such Lender executes
or otherwise first becomes entitled to the benefits of this Agreement, no
Borrower shall have any obligation to make any additional payment under clause
(a) or clause (b) above, or to indemnify the Administrative Agent or any such
Lender under clause (c) above, to the extent that such Administrative Agent or
Lender is not entitled under applicable law to provide the US Facility Borrower
with the forms required by this Section 5.01(g), and in any such case the
Borrower shall be entitled to deduct and remit to the applicable Tax
authorities any Taxes required to be so deducted and remitted under applicable
law. If any Governmental Authority asserts that the Administrative Agent did
not properly withhold or backup withhold, as the case may be, any tax or other
amount from payments made to or for the account of any Lender, such Lender
shall indemnify the Administrative Agent therefor, including all penalties and
interest, any taxes imposed by any jurisdiction on the amounts payable to the
Administrative Agent under this Section, and costs and expenses (including
Attorney Costs) of the Administrative Agent. The obligation of the Lenders
under this Section shall survive the termination of the Aggregate Commitments,
repayment of all other Obligations hereunder and the resignation of the
Administrative Agent.

     5.02 Illegality. If any Lender determines that any Law has made it
unlawful, or that any Governmental Authority has asserted that it is unlawful,
for any Lender or its applicable Lending Office to make, maintain or fund US
Dollar Eurodollar Rate Loans, Canadian C$ Eurodollar Rate Loans or Canadian US$
Eurodollar Rate Loans, as applicable, or to determine or charge interest rates
based upon the US Dollar Eurodollar Rate or the Canadian Dollar Eurodollar
Rate, then, on notice thereof by such Lender to each applicable Borrower
through the Administrative Agent, any obligation of such Lender (a) to make or
continue US Dollar Eurodollar Rate Loans, Canadian C$ Eurodollar Rate Loans or
Canadian US$ Eurodollar Rate Loans, as applicable, or (b) to convert (i) US
Base Rate Committed Loans to US Eurodollar Rate Committed Loans or (ii)
Canadian Prime Rate Committed Loans or Canadian Base Rate Committed Loans to
Canadian C$ Eurodollar Rate Committed Loans or Canadian US$ Eurodollar Rate
Committed Loans, as applicable, shall be suspended until such Lender notifies
the Administrative Agent and each applicable Borrower that the circumstances
giving rise to such determination no longer exist. Upon receipt of such
notice, each applicable Borrower shall, upon demand from such Lender (with a
copy to the Administrative Agent), prepay or, if applicable, (a) convert all US
Dollar Eurodollar Rate Loans or Canadian US$ Eurodollar Rate

88

 

Loans of such Lender to US Base Rate Loans or Canadian Base Rate Committed
Loans, as the case may be, and (b) convert all Canadian C$ Eurodollar Rate
Loans of such Lender to Canadian Prime Rate Committed Loans, either on the last
day of the Interest Period therefor or, if later, the first day on which such
affected Loans can be prepaid without any requirement for payment of amounts
pursuant to Section 5.05, if such Lender may lawfully continue to maintain such
US Dollar Eurodollar Rate Loans, Canadian C$ Eurodollar Rate Loans or Canadian
US$ Eurodollar Rate Loans, as the case may be, to such day, or immediately, if
such Lender may not lawfully continue to maintain such US Dollar Eurodollar
Rate Loans, Canadian C$ Eurodollar Rate Loans or Canadian US$ Eurodollar Rate
Loans, as the case may be. Upon any such prepayment or conversion, each
applicable Borrower shall also pay accrued interest on the amount so prepaid or
converted. Each Lender agrees to designate a different Lending Office if such
designation will avoid the need for such notice and will not, in the good faith
judgment of such Lender, otherwise be disadvantageous to such Lender.

     5.03 Inability to Determine Rates.

     (a) If the US Required Lenders determine that for any reason adequate and
reasonable means do not exist for determining the US Dollar Eurodollar Rate for
any requested Interest Period with respect to a proposed US Eurodollar Rate
Committed Loan, or that the US Dollar Eurodollar Rate for any requested
Interest Period with respect to a proposed US Eurodollar Rate Committed Loan
does not adequately and fairly reflect the cost to such Lenders of funding such
Loan, the Administrative Agent will promptly so notify the US Facility Borrower
and each Lender. Thereafter, the obligation of the Lenders to make or maintain
US Dollar Eurodollar Rate Loans shall be suspended until the Administrative
Agent (upon the instruction of the US Required Lenders) revokes such notice.
Upon receipt of such notice, the US Facility Borrower may revoke any pending
request for a US Borrowing of, conversion to or continuation of US Eurodollar
Rate Committed Loans or, failing that, will be deemed to have converted such
request into a request for a US Committed Borrowing of US Base Rate Loans in
the amount specified therein.

     (b) If the Canadian Required Lenders determine that for any reason
adequate and reasonable means do not exist for determining the US Dollar
Eurodollar Rate or the Canadian Dollar Eurodollar Rate for any requested
Interest Period with respect to a proposed Canadian Eurodollar Rate Committed
Loan, or that the US Dollar Eurodollar Rate or the Canadian Dollar Eurodollar
Rate for any requested Interest Period with respect to a proposed Canadian
Committed Loan does not adequately and fairly reflect the cost to such Canadian
Lenders of funding such Loan, the Administrative Agent will promptly so notify
each Canadian Borrower and each Canadian Lender. Thereafter, the obligation of
the Canadian Lenders to make or maintain Canadian C$ Eurodollar Rate Committed
Loans and Canadian US$ Eurodollar Rate Committed Loans shall be suspended until
the Administrative Agent (upon the instruction of the Canadian Required
Lenders) revokes such notice. Upon receipt of such notice, any Canadian
Borrower may revoke any pending request for a Canadian Borrowing of, conversion
to or continuation of such Canadian Committed Loans or, failing that, will be
deemed to have converted such request into a request for a Canadian Committed
Borrowing of Canadian Base Rate Committed Loans or Canadian Prime Rate
Committed Loans in the amount specified therein.

89

 

     5.04 Increased Cost And Reduced Return; Capital Adequacy; Reserves On US
Dollar Eurodollar Rate Loans, Canadian C$ Eurodollar Rate Loans, and Canadian
US$ Eurodollar Rate Committed Loans.

     (a) If any Lender determines that as a result of a Change in Law, or such
Lender’s compliance therewith, there shall be any increase in the cost to such
Lender of agreeing to make or making, funding or maintaining US Dollar
Eurodollar Rate Loans, Canadian C$ Eurodollar Rate Loans or Canadian US$
Eurodollar Rate Loans or (as the case may be) issuing or participating in
Letters of Credit, or accepting or purchasing Bankers’ Acceptances, or a
reduction in the amount received or receivable by such Lender in connection
with any of the foregoing (excluding for purposes of this subsection (a) any
such increased costs or reduction in amount resulting from (i) Taxes or Other
Taxes (as to which Section 5.01 shall govern), (ii) changes in the basis of
taxation of, or in the rate or amount of taxes imposed on or measured by
reference to, net or gross income or profits or franchise taxes (in lieu of net
income taxes), by the United States or Canada or any other foreign jurisdiction
or any political subdivision of either thereof under the Laws of which such
Lender (or its Lender Funding Affiliate) is organized, domiciled, resident or
doing business or maintains a Lending Office or effects any Credit Extension
hereunder, and (iii) reserve requirements contemplated by Section 5.04(c)),
then from time to time within 20 days following delivery by such Lender (or its
Lender Funding Affiliate) of a certificate described in Section 5.06 (with a
copy of such demand to the Administrative Agent), each applicable Borrower
shall pay to such Lender (or its Lender Funding Affiliate) such additional
amounts as will compensate such Lender (or its Lender Funding Affiliate) for
such increased cost or reduction.

     (b) If any Lender determines that a Change in Law regarding capital
adequacy or compliance by such Lender (or its Lending Office) therewith, has
the effect of reducing the rate of return on the capital of such Lender or any
corporation controlling such Lender as a consequence of such Lender’s
obligations hereunder (taking into consideration its policies with respect to
capital adequacy and such Lender’s desired return on capital), then from time
to time upon demand of such Lender (with a copy of such demand to the
Administrative Agent), each applicable Borrower shall pay to such Lender such
additional amounts as will compensate such Lender for such reduction.

     (c) The US Facility Borrower shall pay to each US Lender, and the
applicable Canadian Facility Borrower shall pay to each Canadian Lender (or its
Lender Funding Affiliate, if applicable), as long as such Lender shall be
required to maintain reserves with respect to liabilities or assets consisting
of or including Eurocurrency funds or deposits (currently known as
“Eurocurrency liabilities”), additional interest on the unpaid principal amount
of each US Dollar Eurodollar Rate Loan, Canadian C$ Eurodollar Rate Loan or
Canadian US$ Eurodollar Rate Loan, as applicable, equal to the actual costs of
such reserves allocated to such Loan by such Lender (as determined by such
Lender in good faith, which determination shall be conclusive), which shall be
due and payable on each date on which interest is payable on such Loan,
provided the applicable Borrower shall have received at least 15 days’ prior
notice (with a copy to the Administrative Agent) of such additional interest
from such Lender. If a Lender fails to give notice 15 days prior to the
relevant Interest Payment Date, such additional interest shall be due and
payable 15 days from receipt of such notice.

90

 

     5.05 Compensation for Losses. Within 20 days following delivery by any
Lender of a certificate described in Section 5.06, upon demand of such Lender
(with a copy to the Administrative Agent) from time to time, each applicable
Borrower shall promptly compensate such Lender for and hold such Lender
harmless from any loss, cost or expense incurred by it as a result of:

     (a) any continuation, conversion, payment or prepayment of any Loan (other
than a US Base Rate Loan, a Canadian Prime Rate Committed Loan, a Canadian Base
Rate Committed Loan or a Swing Line Loan) on a day other than the last day of
the Interest Period for such Loan (whether voluntary, mandatory, automatic, by
reason of acceleration, or otherwise); or

     (b) any failure by the applicable Borrower (for a reason other than the
failure of such Lender to make a Loan or in the circumstances contemplated by
Section 5.03(a) or(b)) to prepay, borrow, continue or convert any Loan other
than a US Base Rate Loan, a Canadian Prime Rate Committed Loan or a Canadian
Base Rate Committed Loan, as the case may be, on the date or in the amount
notified by the applicable Borrower; or

     (c) any assignment of a US Dollar Eurodollar Rate Loan or a Canadian C$
Eurodollar Rate Loan or a Canadian US$ Eurodollar Rate Loan, as the case may
be, on a day other than the last day of the Interest Period therefor as a
result of a request by the applicable Borrower pursuant to Section 12.11;

excluding any loss of anticipated profits but including any actual loss or
expense arising from the liquidation or reemployment of funds obtained by it to
maintain such Loan or from fees payable to terminate the deposits from which
such funds were obtained.

     5.06 Matters Applicable to All Requests for Compensation.

     A certificate of the Administrative Agent or any Lender claiming
compensation under this Article V and setting forth the additional amount or
amounts to be paid to it hereunder shall be conclusive in the absence of
manifest error. In determining such amount, the Administrative Agent or such
Lender may use any reasonable averaging and attribution methods. The
applicable Borrower may reasonably request copies of documentation supporting
such methods.

     Upon any Lender’s making a claim for compensation under Section 5.01 or
5.04, the US Facility Borrower may replace such Lender in accordance with
Section 12.11.

     Notwithstanding any other provision of this Agreement to the contrary, no
Borrower shall be under any obligation to compensate the Administrative Agent
or any Lender under Sections 5.01, 5.04 or 5.05 with respect to any request to
be compensated for any losses, costs, expenses or other amounts relating or
attributable to any period prior to the date that is 90 days prior to such
request if such Lender or the Administrative Agent, as the case may be, knew of
the circumstances giving rise to such losses, costs, expenses or amounts.

     5.07 Survival. All of the Borrowers’ obligations under this Article V
shall survive termination of this Agreement and the Aggregate Commitments and
repayment of all other Obligations hereunder.

91

 

ARTICLE VI.

CONDITIONS PRECEDENT TO EFFECTIVENESS AND CREDIT EXTENSIONS

     6.01 Conditions Precedent to Effectiveness of this Agreement. This
Agreement, and the amendment and restatement of the Existing US Short-Term
Revolving Credit Agreement by this Agreement, and termination of commitments
under the Existing US Long-Term Revolving Credit Agreement and the Existing
Canadian Credit Agreement, shall become effective as of the Effective Date when
(i) this Agreement shall have been executed by each Loan Party and the
Administrative Agent, (ii) the Administrative Agent and the Borrowers shall
have received a counterpart of this Agreement executed by each Lender or
written evidence satisfactory to the Administrative Agent (which may include
facsimile transmission of a signed signature page of this Agreement) that such
Lender has signed a counterpart of this Agreement, (iii) the Administrative
Agent, the Lenders and the Joint Lead Arrangers shall have received all fees
and other amounts due and payable on or prior to the Effective Date, including,
to the extent invoiced, reimbursement or payment of all legal fees and other
out-of-pocket expenses required to be reimbursed or paid by the Borrowers
hereunder, and (iv) the Administrative Agent shall have received the following,
each dated the date of delivery thereof unless otherwise specified below (which
date shall be selected by the US Facility Borrower and be the same for all
documents and all Lenders), in form and substance satisfactory to the
Administrative Agent and (except for the Notes, if any) in sufficient copies
for each Lender:

     (a) [Reserved];

     (b) Certified copies of (i) the resolutions of the directors of the
Borrowers, approving (as appropriate) the Borrowings contemplated hereby and
authorizing the execution of this Agreement and the other Financing Documents,
including the Notes, if any, (ii) all documents evidencing other necessary
Business Entity action and governmental approvals, if any, with respect to this
Agreement and any other Financing Documents and (iii) the Organizational
Documents of each Borrower;

     (c) A certificate of the Secretary or an Assistant Secretary of the
Borrowers (i) certifying names and true signatures of officers of such Person
authorized to sign this Agreement, the Notes, if any, and any other Financing
Documents to which it is a party and (ii) certifying that the representations
and warranties contained in Section 7.01 are true and correct as of the
Effective Date;

     (d) Notice from Parent terminating the commitments under the Existing US
Long-Term Revolving Credit Agreement and from Parent and the Canadian Borrowers
terminating the commitments under the Existing Canadian Credit Agreement, and
evidence of payment of all loans, interest, fees and other amounts outstanding,
if any, under the Existing US Long-Term Revolving Credit Agreement, the
Existing US Short-Term Revolving Credit Agreement and the Existing Canadian
Credit Agreement immediately prior to the effectiveness of the amendment and
restatement of the Existing Short-Term Revolving Credit Agreement by this
Agreement;

     (e) A favorable opinion of Parent’s Vice President and General Counsel, in
substantially the form of Exhibit G-1;

92

 

     (f) A favorable opinion of Joanne Alexander, counsel for BRCL and Canadian
Hunter, in substantially the form of Exhibit G-2;

     (g) A favorable opinion of Jones Day, New York counsel to the Borrowers,
in substantially the form of Exhibit G-3; and

     (h) A favorable opinion of Bennett Jones LLP, Alberta counsel to the
Canadian Facility Borrowers, in substantially the form of Exhibit G-4.

     Notwithstanding anything else herein to the contrary, the Commitment of
each Lender and the obligation of each L/C Issuer to issue Letters of Credit
hereunder shall automatically terminate at 5:00 p.m. on August 31, 2004, if the
amendment and restatement of the Existing US Short-Term Revolving Credit
Agreement by this Agreement shall not have become effective by such time.

     6.02 Conditions Precedent to Each Credit Extension. The obligations of
each Lender to honor any Request for Credit Extension (other than a Committed
Borrowing Notice requesting only a conversion of Committed Loans to another
Type or a continuation of Loans) shall be subject to the conditions precedent
that on or before the date of such Credit Extension this Agreement shall have
become effective pursuant to Section 6.01 and that on the date of such Credit
Extension, before and immediately after giving effect to such Credit Extension
and to the application of any proceeds therefrom, the following statements
shall be true and correct:

     (a) each representation and warranty contained in Section 7.01 is correct
in all material respects as though made on and as of such date (or, if such
representation and warranty is stated to be made as at a specific date or for a
specific period, as at the original specified date or with respect to the
original specified period);

     (b) no Default has occurred and is continuing, or would result from such
Credit Extension;

     (c) the Administrative Agent and the applicable L/C Issuer or US Swing
Line Lender or Canadian Swing Line Lender (as applicable) shall have received a
Request for US Credit Extension or Request for Canadian Credit Extension, as
the case may be, in accordance with the requirements hereof; and

     (d) the aggregate amount of Credit Extensions under this Agreement
(including such Credit Extension) and of borrowings under other agreements or
facilities or evidenced by other instruments or documents is not in excess of
the aggregate amount of such Credit Extensions and other borrowings approved as
of such date (to the extent any such limit on aggregate borrowings exists from
time to time) by the Boards of Directors of Parent and of each Canadian
Borrower.

     Each Request for US Credit Extension and Request for Canadian Credit
Extension (other than (i) a US Committed Borrowing Notice requesting only a
conversion of US Committed Loans to another Type or a continuation of US
Eurodollar Rate Committed Loans or (ii) a Canadian Committed Borrowing Notice
requesting only a conversion of Canadian Committed Loans to another Type or a
continuation of Canadian Eurodollar Rate Committed Loans) submitted by any
Borrower shall be deemed to be a representation and warranty that the

93

 

conditions specified in Sections 6.02(a), (b) and (d) have been satisfied
on the date of the applicable Credit Extension.

ARTICLE VII.

REPRESENTATIONS AND WARRANTIES

     7.01 Representations and Warranties of the Borrowers. Each of Parent and
the other Borrowers represents and warrants as follows:

     (a) Each Loan Party is a Business Entity duly formed, validly existing and
in good standing under the laws of the jurisdiction of its organization. Each
Material Subsidiary is duly organized, validly existing and in good standing in
the jurisdiction of its formation. Each Loan Party and each Material
Subsidiary possess all applicable Business Entity powers and all other
authorizations and licenses necessary to engage in its business and operations
as now conducted, the failure to obtain or maintain which would have a Material
Adverse Effect. Each Subsidiary of Parent that is, on and as of the Effective
Date, a Material Subsidiary is listed on Schedule 7.01 hereto.

     (b) The Transactions are within the Business Entity powers of each
applicable Loan Party, have been duly authorized by all necessary applicable
Business Entity action on the part of each applicable Loan Party, and do not
contravene (i) the Organization Documents of any applicable Loan Party or (ii)
any Laws or any contractual restriction binding on or affecting any applicable
Loan Party. This Agreement, the Notes, if any, and the other Financing
Documents have been duly executed and delivered by each Loan Party party
thereto.

     (c) The Transactions do not require any authorization or approval or other
action by, nor any notice to or filing with, any Governmental Authority for the
due execution, delivery and performance by each Loan Party party thereto of
this Agreement, the Notes, if any, or the other Financing Documents, as
applicable, that has not been duly made or obtained, except those (i) required
in the ordinary course to comply with ongoing covenant obligations of the
Borrowers hereunder, the performance of which is not yet due, and (ii) that
will, in the ordinary course of business in accordance with this Agreement, be
duly made or obtained on or prior to the time or times the performance of such
obligations shall be due.

     (d) This Agreement constitutes, and the Notes (if and when delivered
hereunder) and the other Financing Documents, when delivered hereunder shall
constitute, legal, valid and binding obligations of the Loan Parties party
thereto, enforceable against each such Person in accordance with their
respective terms, except as may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or other similar laws affecting
creditors’ rights generally or by general principles of equity.

     (e) The consolidated balance sheet of Parent and its consolidated
Subsidiaries as at December 31, 2003, and the related consolidated statements
of income and cash flow for the fiscal year then ended, reported on by
PricewaterhouseCoopers LLC, independent public accountants, and the
consolidated balance sheet of Parent and its consolidated subsidiaries as at
March 31, 2004, and the related consolidated statements of income and cash flow
for the three-month period then ended, certified by the chief financial officer
of Parent, copies of each of

94

 

which have been furnished to the Administrative Agent and the initial
Lenders, fairly present the consolidated financial condition of Parent and such
Subsidiaries as at December 31, 2003, and March 31, 2004, respectively, and the
consolidated results of their operations for such fiscal periods, subject in
the case of the March 31, 2004 statements, to normal year-end adjustments, all
in accordance with GAAP consistently applied (except as disclosed therein).
From March 31, 2004 to and including the Effective Date there has been no
material adverse change in such condition or results of operations.

     (f) As at the Effective Date, there is no action, suit or proceeding
pending, or to the knowledge of Parent and the other Borrowers overtly
threatened, against or involving Parent or any Material Subsidiary in any
court, or before any arbitrator of any kind, or before or by any Governmental
Authority, that in the reasonable judgment of Parent (taking into account the
exhaustion of all appeals) would have a material adverse effect on the
consolidated financial condition of Parent and its consolidated Subsidiaries
taken as a whole, or that purports to affect the legality, validity, binding
effect or enforceability of this Agreement, the Notes, if any, or the other
Financing Documents.

     (g) Parent and each of its consolidated Subsidiaries has duly filed all
tax returns required to be filed, and duly paid and discharged all taxes,
assessments and governmental charges upon it or against its properties now due
and payable, the failure to file or pay which, as applicable, would have a
Material Adverse Effect, unless and to the extent only that the same is being
contested in good faith and by appropriate proceedings by Parent or the
appropriate Subsidiary.

     (h) Except to the extent permitted pursuant to Section 8.02(e), neither
Parent nor any Material Subsidiary is subject to any Contractual Obligations
that limit the amount of dividends payable by any Subsidiary.

     (i) No Termination Event has occurred or is reasonably expected to occur
with respect to any Plan that, with the giving of notice or lapse of time, or
both, would constitute an Event of Default under Section 9.01(g).

     (j) Neither Parent nor any ERISA Affiliate has incurred, or is reasonably
expected to incur, any Withdrawal Liability to any Multiemployer Plan that,
when aggregated with all other amounts required to be paid to Multiemployer
Plans in connection with Withdrawal Liability (as of the date of
determination), exceeds 5% of the Consolidated Tangible Net Worth of Parent.

     (k) Neither Parent nor any ERISA Affiliate has received any notification
that any Multiemployer Plan is in reorganization or has been terminated, within
the meaning of Title IV of ERISA, and no Multiemployer Plan is reasonably
expected to be in reorganization or to be terminated within the meaning of
Title IV of ERISA the effect of which reorganization or termination would be
the occurrence of an Event of Default under Section 9.01(i).

     (l) No Borrower is an “investment company” or a “company” controlled by an
“investment company” within the meaning of the United States Investment Company
Act of 1940, as amended.

95

 

     (m) No Borrower is a “holding company” or a “subsidiary company” of a
“holding company”, or an “affiliate” of a “holding company” or of a “subsidiary
company” of a “holding company”, or a “public utility” within the meaning of
the United States Public Utility Holding Company Act of 1935, as amended.

     (n) The proceeds of the Credit Extensions will be used for general
corporate purposes of Parent, Canadian Borrowers and the other Subsidiaries of
Parent, including acquisitions and payment of commercial paper, and will not be
used in any way that would violate the provisions of Regulation U or X of the
Board of Governors of the Federal Reserve System.

     All representations and warranties made by the Canadian Borrowers and/or
Parent herein or made in any certificate delivered pursuant hereto shall
survive the making of the Credit Extensions and the execution and delivery to
the Lenders of this Agreement, the Notes and each other Financing Document.

ARTICLE VIII.

COVENANTS

     8.01 Affirmative Covenants. So long as any Obligation payable by any
Borrower hereunder shall remain unpaid or any Lender shall have any Commitment
hereunder, Parent will, unless the Required Lenders shall otherwise consent in
writing:

     (a) Preservation of Existence, Etc. Preserve and maintain, and cause each
Material Subsidiary to preserve and maintain, its existence, rights
(organizational and statutory) and material franchises, except as otherwise
contemplated or permitted by Section 8.02(c) or 8.02(d); provided, that any
Material Subsidiary may change its form of organization to a partnership or
other form of Business Entity and may change its jurisdiction of organization;
provided further that in the case of any such change by a Canadian Borrower,
its jurisdiction of organization remains in Canada, and in connection with any
such change by a Canadian Borrower, the Parent shall cause such Canadian
Borrower to cause to be delivered to the Administrative Agent a legal opinion
of counsel acceptable to the Administrative Agent to the effect that the
successor entity to such Canadian Borrower continues to be bound by, or has
assumed by instrument or by operation of law, all of such Canadian Borrower’s
obligations under this Agreement and the Notes.

     (b) Compliance with Laws, Etc. Comply, and cause each Subsidiary to
comply, in all material respects, with all applicable Laws (including all
environmental laws and laws requiring payment of all taxes, assessments and
governmental charges imposed upon it or upon its property, except to the extent
contested in good faith by appropriate proceedings) the failure to comply with
which would have a Material Adverse Effect.

     (c) Visitation Rights. At such reasonable times and intervals as the
Administrative Agent or any of the Lenders may desire, permit the
Administrative Agent or any of the Lenders to visit each Borrower and to
discuss the affairs, finances, accounts and mineral or hydrocarbon reserve
performance of Parent and any of its Subsidiaries with officers of Parent and
the other Borrowers and the independent certified public accountants of Parent
and any of its Subsidiaries, provided that if a Default or an Event of Default
has occurred and is continuing, the

96

 

Administrative Agent or any Lender may, in addition to the other
provisions of this subsection (c) and at such reasonable times and intervals as
the Administrative Agent or any of the Lenders may desire, visit and inspect,
under guidance of officers of Parent (or, in the case of properties of the
Canadian Borrowers or their Subsidiaries, of the Canadian Borrowers), as the
case may be, any properties significant to the consolidated operations of
Parent and its Subsidiaries, and to examine the books and records of account
(other than with respect to any mineral or hydrocarbon reserve information that
Parent determines to be confidential, except, during the continuation of an
Event of Default, if such Lenders shall have entered into a confidentiality
agreement with respect to such information satisfactory in form and substance
to Parent) of Parent and any of its Subsidiaries and to discuss the affairs,
finances and accounts of any of the Subsidiaries of Parent with any of the
officers of such Subsidiary.

     (d) Books and Records. Keep, and cause each of its Subsidiaries to keep,
proper books of record and account, in which full and correct entries shall be
made of all financial transactions and the assets and business of Parent and
each Subsidiary of Parent in accordance with GAAP.

     (e) Maintenance of Properties, Etc. Maintain and preserve, and cause each
Material Subsidiary to maintain and preserve, all of its properties which are
used in the conduct of its business in good working order and condition,
ordinary wear and tear excepted, to the extent that any failure to do so would
have a Material Adverse Effect.

     (f) Maintenance of Insurance. Maintain, and cause each Material
Subsidiary 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 Parent or such Subsidiary
operates.

     8.02 Negative Covenants. So long as any Obligation payable by any
Borrower hereunder shall remain unpaid or any Lender shall have any Commitment
hereunder, Parent will not, unless the Required Lenders shall otherwise consent
in writing:

     (a) Liens, Etc. (i) Create, assume or suffer to exist, or permit any
Material Subsidiary to create, assume or suffer to exist, any Liens upon or
with respect to any of the Equity Interests in any Material Subsidiary, whether
now owned or hereafter acquired, or (ii) create or assume, or permit any
Material Subsidiary to create or assume, any Liens upon or with respect to any
other assets material to the consolidated operations of Parent and its
consolidated Subsidiaries, taken as a whole, securing the payment of Debt and
Guaranties in an aggregate amount (determined without duplication of amount (so
that the amount of a Guaranty will be excluded to the extent the Debt
Guaranteed thereby is included in computing such aggregate amount)) exceeding
the greater of (x) US $250,000,000 and (y) 10% of Consolidated Tangible Net
Worth, determined based on the most recent consolidated balance sheet of Parent
delivered prior to such creation or assumption pursuant to Section 8.03 (or,
prior to the first delivery of any consolidated balance sheet of Parent
pursuant to Section 8.03, based on the most recent consolidated balance sheet
of Parent referred to in Section 7.01(e)); provided, however, that this
subsection (a) shall not apply to:

97

 

(A) Liens on assets acquired by Parent or any of its
Subsidiaries after the Original Effective Date to the extent
that such Liens existed at the time of such acquisition and
were not placed thereon by or with the consent of Parent in
contemplation of such acquisition;

(B) Liens on Equity Interests acquired after the Original
Effective Date in a Business Entity that has become or
becomes a Subsidiary of Parent, or on assets of any such
Business Entity, to the extent that such Liens existed at the
time of such acquisition and were not placed thereon by or
with the consent of Parent in contemplation of such
acquisition;

(C) Liens on Margin Stock;

(D) Liens on the Equity Interests in, or Debt or other
obligations of, or assets of, any Project Financing
Subsidiary (or any Equity Interests in, or Debt or other
obligations of, any Business Entity that are owned by any
Project Financing Subsidiary) securing the payment of a
Project Financing and related obligations;

(E) Permitted Liens;

(F) Liens arising out of the refinancing, extension, renewal
or refunding of any Debt or Guaranty secured by any Lien
permitted by any of the foregoing clauses of this Section,
provided that the principal amount of such Debt or Guaranty
is not increased (except by the amount of costs reasonably
incurred in connection with the issuance thereof) and such
Debt or Guaranty is not secured by any additional assets that
would not have been permitted by this subsection (a) to
secure the Debt or Guaranty refinanced, extended, renewed or
refunded; and

(G) Liens on products and proceeds (including dividend,
interest and like payments on, and insurance and condemnation
proceeds and rental, lease, licensing and similar proceeds)
of, and property evidencing or embodying, or constituting
rights or other general intangibles relating to, and
accessions and improvements to, collateral subject to Liens
permitted by this subsection (a).

     (b) Debt, Etc. Create, assume or suffer to exist, or permit any of its
consolidated Subsidiaries to create, assume or suffer to exist, any Debt or any
Guaranty unless, immediately after giving effect to such Debt or Guaranty and
the receipt and application of any proceeds thereof or value received in
connection therewith,

     (1) the sum (without duplication) of (i) consolidated Debt of Parent and
its consolidated Subsidiaries plus (ii) the aggregate amount (determined on a
consolidated basis) of Guaranties by Parent and its consolidated Subsidiaries
is less than 60% of Capitalization, provided that Debt for borrowed money
maturing within one year and evidenced by instruments commonly known as
commercial paper or Canadian variable demand notes (other than Debt incurred
pursuant to this Agreement or any other liquidity, working capital or
acquisition

98

 

financing facility with banks or other financial institutions or any
replacement therefor), shall not exceed the sum of unused Commitments under
this Agreement and the aggregate of Parent’s and the other Borrowers’
respective unused bank lines of credit and unused credit available to Parent or
any other Borrower under financing arrangements with banks or other financial
institutions; and

     (2) with respect to any such Debt created or assumed by a consolidated
Subsidiary that is either a Subsidiary of Parent as of the Original Effective
Date or a Subsidiary of Parent acquired or created after the Original Effective
Date and owning a material portion of the consolidated operating assets
existing at the Original Effective Date of Parent and its Subsidiaries, the
aggregate amount of Debt of the consolidated Subsidiaries of Parent referred to
above in this paragraph (2) owing to Persons other than Parent and its
consolidated Subsidiaries is less than the greater of (A) US $500,000,000
(exclusive of public Debt of LL&E existing at the time LL&E became a
Subsidiary, the principal amount of which at such time was approximately US
$400,000,000, and any refinancing of such Debt, in a principal amount not to
exceed the principal amount refinanced) and (B) 30% of Consolidated Tangible
Net Worth, determined based on the most recent consolidated balance sheet of
Parent delivered prior to such creation or assumption pursuant to Section 8.03
(or, prior to the first delivery of any consolidated balance sheet of Parent
pursuant to Section 8.03, based on the most recent consolidated balance sheet
of Parent referred to in Section 7.01(e)).

     (c) Sale, Etc. of Assets. Sell, lease or otherwise transfer, or permit
any Material Subsidiary to sell, lease or otherwise transfer (in either case,
whether in one transaction or in a series of transactions, and except, in
either case, to Parent or any other Borrower or an entity that after giving
effect to such transfer will be or become a Material Subsidiary in which
Parent’s direct or indirect Equity Interests will be at least as great as its
direct or indirect Equity Interests in the transferor immediately prior
thereto, and except as permitted by Section 8.02(d)), assets constituting all
or substantially all of the consolidated assets of Parent and its Material
Subsidiaries; provided that, notwithstanding the foregoing, Parent or any
Material Subsidiary may sell, lease or otherwise transfer any Permitted Assets
constituting all or substantially all of the consolidated assets of Parent and
its Material Subsidiaries, so long as (A) such Permitted Assets are sold,
leased or otherwise transferred in exchange for other Permitted Assets and/or
(B) the proceeds from such sale, lease or other transfer, or an amount equal to
the proceeds thereof, are (x) reinvested within one year from the date of
receipt thereof in Permitted Assets and/or the development of Permitted Assets
and/or (y) used to repay Debt the proceeds of which were or are being used for
investment in, and/or the development of, Permitted Assets; provided further
that, no such sale, lease or other transfer shall be permitted by the foregoing
proviso unless either (1) after giving effect to such sale, lease or other
transfer, no Default or Event of Default shall have occurred and be continuing
or (2) Parent or the relevant Material Subsidiary, as the case may be, was
contractually obligated, prior to the occurrence of such Default or Event of
Default, to consummate such sale, lease or other transfer.

     (d) Mergers, Etc. Merge, amalgamate or consolidate with any Person, or
permit any Material Subsidiary to merge, amalgamate or consolidate with any
Person, except that:

     (i) any Subsidiary may merge, amalgamate or consolidate with
(or liquidate into) any other Subsidiary or may merge, amalgamate
or consolidate

99

 

with (or liquidate into) Parent, provided that (A) if such
Subsidiary merges, amalgamates or consolidates with (or liquidates
into) Parent or any other Borrower, either (i) the survivor or
successor is Parent or any other Borrower, as applicable, or (ii)
in the case of any of the foregoing actions involving either
Canadian Borrower under the laws of Canada or any province thereof,
the continuing Business Entity resulting therefrom is organized and
existing under the laws of Canada or a province thereof and
continues by operation of law to be liable for all obligations of
such Canadian Borrower under this Agreement and under the other
Financing Documents to which it is a party, and provided that
notice thereof and a copy of the merger, amalgamation,
consolidation or liquidation documents are provided to the
Administrative Agent, or (iii) each successor or surviving Business
Entity is organized and existing under the laws of Canada or a
province thereof or the United States or a state thereof, and, to
the extent not already a party thereto, expressly assumes the
obligations of such Borrower or Parent, as applicable, hereunder
and under the other Financing Documents to which such Borrower or
Parent, as applicable, is a party, (B) if any such Subsidiary
merges, amalgamates or consolidates with (or liquidates into) any
other Subsidiary of Parent, one or more Business Entities that are
Subsidiaries of Parent are the surviving or successor Business
Entity(ies) and, if either such Subsidiary is not directly or
indirectly wholly-owned by Parent or any other Borrower, such
merger, amalgamation or consolidation is on an arm’s length basis
and (C) as a result of such merger, amalgamation or consolidation
(or liquidation), no Default or Event of Default shall have
occurred and be continuing, and

     (ii) Parent or any other Borrower or any Material Subsidiary
may merge, amalgamate or consolidate with any other Business Entity
(that is, in addition to Parent or any other Borrower or any other
Subsidiary of Parent), provided that (A) if either Canadian
Borrower or Parent merges, amalgamates or consolidates with any
such other Business Entity(ies), either the survivor or successor
Business Entity is a Canadian Borrower or Parent, as applicable,
(B) if any Material Subsidiary merges, amalgamates or consolidates
with any such other Business Entity, each surviving or successor
Business Entity is a directly or indirectly wholly-owned Subsidiary
of Parent, and (C) if a Canadian Borrower, Parent or any Material
Subsidiary merges, amalgamates or consolidates with any such other
Business Entity, after giving effect to such merger, amalgamation
or consolidation no Default or Event of Default shall have occurred
and be continuing.

     (e) Dividend Restrictions. Create, or consent or agree to, or permit any
of its Material Subsidiaries existing on the Original Effective Date or any of
its Subsidiaries thereafter created or acquired and owning a material portion
of the consolidated operating assets existing at the Original Effective Date of
Parent and its Subsidiaries, to create, or consent or agree to, any
restrictions, contained in any agreement or instrument relating to or
evidencing Debt, on any such Subsidiary’s ability to pay dividends or to make
advances to Parent or any Subsidiary of Parent; provided, however, that this
subsection (e) shall not apply to any such restrictions (including any
extensions of the term of any thereof (by amendment, or continuation thereof in
any refinancing of the Debt to which such restriction relates, or otherwise))
applicable to the

100

 

Equity Interests in any Subsidiary of Parent, the Equity Interests in
which are acquired by Parent after the Original Effective Date and which
restrictions are existing at the time such Subsidiary first becomes a
Subsidiary of Parent and are not placed thereon by or with the consent of
Parent in contemplation of such acquisition by Parent.

     8.03 Reporting Requirements. So long as any Credit Extension shall remain
unpaid or any Lender shall have any Commitment hereunder, the Borrowers will
furnish to each Lender in such reasonable quantities as shall from time to time
be requested by such Lender:

     (a) within 60 days after the end of each of the first three quarters of
each fiscal year of Parent, a consolidated balance sheet of Parent and its
consolidated Subsidiaries as of the end of such quarter, consolidated
statements of income of Parent and its consolidated subsidiaries for such
quarter and the period commencing at the end of the previous fiscal year and
ending with the end of such quarter, and consolidated statements of cash flow
of Parent and its consolidated Subsidiaries for the period commencing at the
end of the previous fiscal year and ending with the end of such quarter,
certified (subject to normal year-end adjustments) as to fairness and
utilization of GAAP then in effect by the chief financial officer of Parent and
accompanied by a certificate of such officer stating (i) that such statements
of income and cash flow and such balance sheet have been prepared in accordance
with GAAP then in effect, (ii) whether or not such officer has knowledge of the
occurrence of any Default or Event of Default that is continuing hereunder and,
if so, stating in reasonable detail the facts with respect thereto, (iii) all
relevant facts in reasonable detail to evidence, and the computations as to,
whether or not Parent is in compliance with the requirements set forth in
subsection (b) of Section 8.02, (iv) a listing of all Material Subsidiaries and
consolidated Subsidiaries of Parent showing the extent of its direct and
indirect holdings of their Equity Interests and (v) if the financial statements
for such quarter shall reflect any change in GAAP from GAAP as in effect at
December 31, 2003, which changes have the effect of changing the information
presented in the financial statements accompanying such certificate from what
such information would have been if presented in accordance with GAAP as in
effect at December 31, 2003, a statement describing the nature of such change,
provided that, in the case of this clause (v), no such statement shall be
required to the extent (A) such description is set forth in such financial
statements or the notes thereto or (B) a statement with respect to such change
shall have been delivered in connection with the delivery of, or disclosed in,
financial statements under Section 8.03 (a), (b) or (e) for any prior fiscal
period;

     (b) within 120 days after the end of each fiscal year of Parent, a copy of
the annual report for such year for Parent and its consolidated Subsidiaries
containing financial statements for such year reported on by nationally
recognized independent public accountants acceptable to the Lenders,
accompanied by (i) a report signed by said accountants stating that such
financial statements have been prepared in accordance with GAAP then in effect
and (ii) a letter from such accountants stating that in making the
investigations necessary for such report they obtained no knowledge, except as
specifically stated therein, of any Default or Event of Default that is
continuing hereunder (which letter may be limited in form, scope and substance
to the extent required by applicable accounting rules or guidelines in effect
from time to time);

     (c) within 120 days after the end of each fiscal year of Parent, a
certificate of the chief financial officer of Parent stating (i) whether or not
such officer has knowledge of the occurrence of any Default or Event of Default
that is continuing hereunder and, if so, stating in

101

 

reasonable detail the facts with respect thereto, (ii) all relevant facts
in reasonable detail to evidence, and the computations as to, whether or not
Parent is in compliance with the requirements set forth in subsection (b) of
Section 8.02, (iii) a listing of all Material Subsidiaries and consolidated
Subsidiaries of Parent showing the extent of its direct and indirect holdings
of their Equity Interests and (iv) if the financial statements for such fiscal
year shall reflect any change in GAAP from GAAP as in effect at December 31,
2003, which changes have the effect of changing the information presented in
the financial statements accompanying such certificate from what such
information would have been if presented in accordance with GAAP as in effect
at December 31, 2003, a statement describing the nature of such change,
provided that, in the case of this clause (iv), no such statement shall be
required to the extent (A) such description is set forth in such financial
statements or the notes thereto or (B) a statement with respect to such change
shall have been delivered in connection with the delivery of, or disclosed in,
financial statements under Section 8.03 (a), (b) or (e) for any prior fiscal
period;

     (d) promptly upon their distribution, copies of all financial statements,
reports and proxy statements which Parent or any Material Subsidiary shall have
sent to its public Equity Interest holders;

     (e) promptly upon their becoming publicly available, all regular and
periodic financial reports and registration statements which Parent or any
Material Subsidiary shall file with the Securities and Exchange Commission or
any national securities exchange, other than registration statements relating
to employee benefit plans and to registration statements of securities for
selling security holders;

     (f) promptly after Parent has had a reasonable opportunity to
preliminarily evaluate the same, written notice of all litigation and of all
proceedings before any Governmental Authority against or involving Parent or
any Material Subsidiary, except any litigation or proceeding that in the
reasonable judgment of Parent (taking into account the exhaustion of all
appeals) is not likely to have a material adverse effect on the consolidated
financial condition of Parent and its consolidated Subsidiaries taken as a
whole, which notice may be effected by delivery, in accordance with applicable
securities laws, of reports and statements referred to in clause (a), (b) or
(e) above;

     (g) within three Business Days after a Responsible Officer of either
Canadian Borrower or Parent obtains knowledge of the occurrence of any Default
or Event of Default that is continuing, notice of such occurrence together with
a detailed statement by a Responsible Officer of such Canadian Borrower or
Parent of the steps being taken by such Canadian Borrower, Parent or the
appropriate Subsidiary to cure the effect of such event;

     (h) as soon as practicable and in any event (i) within 30 days after
Parent or any ERISA Affiliate knows or has reason to know that any Termination
Event described in clause (i) of the definition of Termination Event with
respect to any Plan has occurred and (ii) within 10 days after Parent or any
ERISA Affiliate knows or has reason to know that any other Termination Event
with respect to any Plan has occurred, a statement of the chief financial
officer of Parent describing such Termination Event and the action, if any,
which Parent or such ERISA Affiliate proposes to take with respect thereto;

102

 

     (i) promptly and in any event within two Business Days after receipt
thereof by Parent or any ERISA Affiliate, copies of each notice received by
Parent or any ERISA Affiliate from the PBGC stating its intention to terminate
any Plan or to have a trustee appointed to administer any Plan;

     (j) promptly and in any event within 30 days after the filing thereof with
the Internal Revenue Service, copies of each Schedule B (Actuarial Information)
to the annual report (Form 5500 Series) with respect to each Plan;

     (k) promptly and in any event within five Business Days after receipt
thereof by Parent or any ERISA Affiliate from the sponsor of a Multiemployer
Plan, a copy of each notice received by Parent or any ERISA Affiliate
concerning (i) the imposition of Withdrawal Liability by a Multiemployer Plan,
(ii) the determination that a Multiemployer Plan is, or is expected to be, in
reorganization within the meaning of Title IV of ERISA, (iii) the termination
of a Multiemployer Plan within the meaning of Title IV of ERISA, or (iv) the
amount of liability incurred, or expected to be incurred, by Parent or any
ERISA Affiliate in connection with any event described in clause (i), (ii) or
(iii) above; and

     (l) as soon as practicable but in any event within 60 days of any notice
of request therefor, such other information respecting the financial condition
and results of operations of Parent or any Subsidiary as any Lender through the
Administrative Agent may from time to time reasonably request.

     8.04 Financial Statement Comparative Information. Each balance sheet and
other financial statement furnished pursuant to subsections (a) and (b) of
Section 8.03 shall contain comparative information which conforms to the
presentation required in Form 10-Q and Form 10-K, as appropriate, under the
Securities Exchange Act of 1934, as amended.

ARTICLE IX.

EVENTS OF DEFAULT

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

     (a) Any Borrower shall fail to pay any principal of any Loan within two
Business Days after the same shall be due, or any interest on any Loan or any
other amount payable hereunder within five Business Days after the same shall
be due; or

     (b) Any representation or warranty made or deemed made by Parent or any
other Borrower herein or by Parent or any other Borrower (or any of its
officers) in connection with this Agreement shall prove to have been incorrect
in any material respect when made or deemed made; or

     (c) Parent or any other 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 and any such failure shall remain unremedied for 30 days
after written notice thereof shall have been given to Parent and the other
Borrowers by the Administrative Agent or by any Lender with a copy to the
Administrative Agent; or

103

 

     (d) Parent or any Material Subsidiary shall fail to pay any Debt or
Guaranty (excluding any Loans) of Parent or such Material Subsidiary (as the
case may be) in an aggregate principal amount in excess of the greater of (i)
US $100,000,000 and (ii) 3% of Consolidated Tangible Net Worth, determined
based on the most recent consolidated balance sheet of Parent delivered prior
to such failure to pay pursuant to Section 8.03 (or, prior to the first
delivery of any consolidated balance sheet of Parent pursuant to Section 8.03,
based on the most recent consolidated balance sheet of Parent referred to in
Section 7.01(e)), or any installment of principal thereof or interest or
premium thereon, when due (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 Guaranty; or any other default under any agreement or
instrument relating to any such Debt, or any other event, shall occur and shall
continue after the applicable grace period, if any, specified in such agreement
or instrument, if the effect of such default or event is to accelerate the
maturity of such Debt; provided that, notwithstanding any provision contained
in this subsection (d) to the contrary, to the extent that pursuant to the
terms of any agreement or instrument relating to any Debt referred to in this
subsection (d), any sale, pledge or disposal of Margin Stock, or utilization of
the proceeds thereof, would result in a breach of any covenant contained
therein or otherwise give rise to a default or event of default thereunder
and/or acceleration of the maturity of the Debt extended pursuant thereto and
as a result of such terms or of such sale, pledge, disposal, utilization,
breach, default, event of default or acceleration, or the provisions hereof
relating thereto, this Agreement or any Loan hereunder would violate Regulation
U issued by the Board of Governors of the United States Federal Reserve System,
then such breach, default, event of default or acceleration shall not
constitute a Default or Event of Default under this subsection (d); or

     (e) (i) Parent or any Material Subsidiary shall (A) generally not pay its
debts as such debts become due; or (B) admit in writing its inability to pay
its debts generally; or (C) make a general assignment for the benefit of
creditors; or (ii) any proceeding shall be instituted or consented to by Parent
or any Material Subsidiary 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 Debtor
Relief Laws, or seeking the entry of an order for relief or the appointment of
a receiver, trustee, or other similar official for it or for any substantial
part of its property under any Debtor Relief Laws; or (iii) any such proceeding
shall have been instituted against Parent or any Material Subsidiary and either
such proceeding shall not be stayed or dismissed for 60 consecutive days or any
of the actions referred to above sought in such proceeding (including the entry
of an order for relief against it or the appointment of a receiver, trustee,
custodian or other similar official for it or any substantial part of its
property) shall occur; or (iv) Parent or any Material Subsidiary shall take any
corporate action to authorize any of the actions set forth above in this
subsection (e); or

     (f) Any judgment or order for the payment of money in excess of the
greater of (i) US $100,000,000 and (ii) 3% of Consolidated Tangible Net Worth,
determined based on the most recent consolidated balance sheet of Parent
delivered prior to such judgment or order pursuant to Section 8.03 (or, prior
to the first delivery of any consolidated balance sheet of Parent pursuant to
Section 8.03, based on the most recent consolidated balance sheet of Parent
referred to in Section 7.01(e)), shall be rendered against Parent or any
Material Subsidiary and either (i) enforcement proceedings shall have been
commenced and are continuing or have been

104

 

completed by any creditor upon such judgment or order (other than any
enforcement proceedings consisting of the mere obtaining and filing of a
judgment lien or obtaining of a garnishment or similar order so long as no
foreclosure, levy or similar process in respect of such lien, or payment over
in respect of such garnishment or similar order, has commenced and is
continuing or has been completed) or (ii) there shall be any period of 30
consecutive days during which a stay of execution or enforcement proceedings
(other than those referred to in the parenthesis in clause (i) above) in
respect of such judgment or order, by reason of a pending appeal, bonding or
otherwise, shall not be in effect; or

     (g) Any Termination Event with respect to a Material Plan shall have
occurred and, 30 days after notice thereof shall have been given to Parent by
the Administrative Agent or any Lender, (i) such Termination Event shall still
exist and (ii) the sum (determined as of the date of occurrence of such
Termination Event) of the Insufficiency of such Plan and the Insufficiency of
any and all other Plans with respect to which a Termination Event shall have
occurred and then exist (or in the case of a Plan with respect to which a
Termination Event described in clause (ii) of the definition of Termination
Event shall have occurred and then exist, the liability related thereto), in
each case in respect of which Parent or any ERISA Affiliate has liability, is
equal to or greater than US$100,000,000; or

     (h) Parent or any ERISA Affiliate shall have been notified by the sponsor
of a Multiemployer Plan that it has incurred Withdrawal Liability to such
Multiemployer Plan in an amount which, when aggregated with all other amounts
required to be paid to Multiemployer Plans in connection with Withdrawal
Liabilities (determined as of the date of such notification), exceeds
US$100,000,000; or

     (i) Parent or any ERISA Affiliate shall have been notified by the sponsor
of a Multiemployer Plan that such Multiemployer Plan is in reorganization or is
being terminated, within the meaning of Title IV of ERISA, if as a result of
such reorganization or termination the aggregate annual contributions of Parent
and its ERISA Affiliates to all Multiemployer Plans which are then in
reorganization or being terminated have been or will be increased over the
amounts contributed to such Multiemployer Plans for the respective plan years
that include the Original Effective Date by an amount exceeding US$100,000,000;
or

     (j) Upon completion of, and pursuant to, a transaction, or a series of
transactions (which may include prior acquisitions of capital stock of Parent
in the open market or otherwise), involving a tender offer (i) a “person”
(within the meaning of Section 13(d) of the Securities Exchange Act of 1934)
other than Parent, a Subsidiary of Parent or any employee benefit plan
maintained for employees of Parent and/or any of its respective Subsidiaries or
the trustee therefor, shall have acquired direct or indirect ownership of and
paid for in excess of 50% of the outstanding capital stock of Parent entitled
to vote in elections for directors of Parent and (ii) at any time before the
later of (x) six months after the completion of such tender offer and (y) the
next annual meeting of the shareholders of Parent following the completion of
such tender offer more than half of the directors of Parent consists of
individuals who (a) were not directors before the completion of such tender
offer and (b) were not appointed, elected or nominated by the Board of
Directors in office prior to the completion of such tender offer (other than
any such appointment, election or nomination required or agreed to in
connection with, or as a result of, the completion of such tender offer); or

105

 

     (k) Either Canadian Borrower ceases to be a direct or indirect
wholly-owned Subsidiary of Parent; or

     (l) The guarantee of Parent or a Canadian Borrower under Article X shall
not be (or shall be claimed by Parent, either Canadian Borrower or any
Subsidiary of Parent not to be) valid or in full force and effect; provided
that if within one Business Day after the Canadian Borrowers or Parent receive
notice from the Administrative Agent or otherwise becomes aware that such
guarantee is not valid or in full force and effect, Parent or the applicable
Canadian Borrower, as the case may be, delivers written notice to the
Administrative Agent that it intends to deliver a valid and effective
guarantee, or to reinstate such guarantee, as soon as possible, then neither a
Default nor an Event of Default shall exist pursuant this Section 9.01(l)
unless Parent or the applicable Canadian Borrower, as the case may be, shall
fail to deliver or reinstate a guarantee having substantially the same effect
as the guarantee set forth in Article X within four Business Days after the
delivery of such written notice of intent.

     9.02 Remedies Upon an Event of Default. If any Event of Default occurs
and is continuing, the Administrative Agent shall, at the request of, or may,
with the consent of, the Required Lenders, take any or all of the following
actions:

     (a) declare the commitment of each Lender to make Loans or accept Bankers’
Acceptances and any obligation of any L/C Issuer to make L/C Credit Extensions
to be terminated, whereupon such commitments and obligation shall be
terminated;

     (b) declare the unpaid principal amount of all outstanding Loans, all
interest accrued and unpaid thereon, and all other amounts owing or payable
hereunder or under any other Financing Document to be immediately due and
payable, without presentment, demand, protest or other notice of any kind, all
of which are hereby expressly waived by each Borrower;

     (c) require that the applicable Borrower Cash Collateralize the L/C
Obligations owing by it and Bankers’ Acceptances issued by it (in an amount
equal to the then Outstanding Amount thereof); and

     (d) exercise on behalf of itself and the Lenders all rights and remedies
available to it and the Lenders under the Financing Documents or applicable
Law;

provided, however, that upon the occurrence of an actual or deemed entry of an
order for relief with respect to the US Facility Borrower under the Bankruptcy
Code of the United States, the obligation of each Lender to make Loans or
accept Bankers’ Acceptances and any obligation of the L/C Issuers to make L/C
Credit Extensions shall automatically terminate, the unpaid principal amount of
all outstanding Loans and all interest and other amounts as aforesaid shall
automatically become due and payable, and the obligation of the applicable
Borrower to Cash Collateralize the L/C Obligations and Bankers’ Acceptances
issued or owing by it as aforesaid shall automatically become effective, in
each case without further act of the Administrative Agent or any Lender; and
provided further that upon the occurrence of an actual or deemed entry of an
order for relief with respect to any Canadian Borrower under the applicable
Debtor Relief Laws, the obligation of each Canadian Lender to make Canadian
Loans to such Canadian Borrower (including by way of accepting Bankers’
Acceptances in respect of such Canadian

106

 

Borrower) and any obligation of the Canadian L/C Issuers to make Canadian L/C
Credit Extensions to such Canadian Borrower shall automatically terminate, the
unpaid principal amount of all outstanding Canadian Borrowings owing by such
Canadian Borrower and all interest and other amounts as aforesaid owing by such
Canadian Borrower shall automatically become due and payable, and the
obligation of such Canadian Borrower to Cash Collateralize the Canadian L/C
Obligations and Bankers’ Acceptances issued or owing by it as aforesaid shall
automatically become effective, in each case without further act of the
Administrative Agent or any Canadian Lender.

     9.03 Application of Funds Received from the Canadian Facility Borrowers on
Account of Canadian Obligations. After the exercise of remedies provided for
in Section 9.02 (or after the Loans have automatically become immediately due
and payable and the Canadian L/C Obligations and Bankers’ Acceptances have
automatically been required to be Cash Collateralized as set forth in the
second proviso to Section 9.02), any amounts received on account of the
Canadian Obligations shall be applied by the Administrative Agent in the
following order:

     First, to payment of that portion of the Canadian Obligations constituting
fees, indemnities, expenses and other amounts (including Attorney Costs and
amounts payable under Article V) payable to the Administrative Agent in its
capacity as such;

     Second, to payment of that portion of the Canadian Obligations
constituting fees, indemnities and other amounts (other than principal and
interest) payable to the Canadian Lenders (including Attorney Costs and amounts
payable under Article V), ratably among them in proportion to the amounts
described in this clause Second payable to them;

     Third, to payment of that portion of the Canadian Obligations constituting
accrued and unpaid interest on the Canadian Loans and Canadian L/C Borrowings,
ratably among the Canadian Lenders in proportion to the respective amounts
described in this clause Third payable to them;

     Fourth, (a) to payment of that portion of the Canadian Obligations
constituting unpaid principal of the Canadian Loans and Canadian L/C
Borrowings, (b) to Cash Collateralize the outstanding Bankers’ Acceptances and
(c) to Cash Collateralize that portion of Canadian L/C Obligations comprised of
the aggregate undrawn amount of Canadian Letters of Credit ratably among the
Canadian Lenders and the Canadian L/C Issuers in accordance with their
respective portions of the Canadian Obligations described in this clause
Fourth;

     Last, the balance, if any, after all of the Canadian Obligations have been
paid in full, to the Canadian Facility Borrowers as their interests may appear
or as otherwise required by Law, provided that to the extent any portion of
such balance is repayable to, and constitutes property of, the US Facility
Borrower and at such time any US Obligations are due and payable, such portion
shall be applied as provided in Section 9.04.

     Subject to Section 2.04(c), amounts used to Cash Collateralize the
aggregate undrawn amount of Canadian Letters of Credit and the outstanding
Bankers’ Acceptances pursuant to clause Fifth and Sixth above shall be applied
to satisfy drawings under such Canadian Letters of

107

 

Credit and payments made upon presentation of Bankers’ Acceptances as they
occur. If any amount remains on deposit as cash collateral after all Canadian
Letters of Credit and Bankers’ Acceptances have been paid, fully drawn or
expired, such remaining amount shall be applied to the other Canadian
Obligations, if any, in the order set forth above, and thereafter as provided
in clause Last above.

     9.04 Application of Funds Received from the US Facility Borrower. After
the exercise of remedies provided for in Section 9.02 (or after the Loans have
automatically become immediately due and payable and the US L/C Obligations
have automatically been required to be Cash Collateralized as set forth in the
first proviso to Section 9.02), any amounts received from the US Facility
Borrower or pursuant to Section 9.03 for application on account of the US
Obligations shall be applied by the Administrative Agent in the following
order:

     First, to payment of that portion of the US Obligations constituting fees,
indemnities, expenses and other amounts (including Attorney Costs and amounts
payable under Article V) payable to the Administrative Agent in its capacity as
such;

     Second, to payment of that portion of the US Obligations constituting
fees, indemnities and other amounts (other than principal and interest) payable
to the Lenders (including Attorney Costs and amounts payable under Article V),
ratably among them in proportion to the amounts described in this clause Second
payable to them;

     Third, to payment of that portion of the US Obligations constituting
accrued and unpaid interest on the US Loans and US L/C Borrowings, ratably
among the Lenders in proportion to the respective amounts described in this
clause Third payable to them;

     Fourth, to payment of that portion of the US Obligations constituting
unpaid principal of the US Loans and US L/C Borrowings, ratably among the
Lenders in proportion to the respective amounts described in this clause Fourth
held by them;

     Fifth, to the Administrative Agent for the ratable account of the US L/C
Issuers, to Cash Collateralize that portion of US L/C Obligations comprised of
the aggregate undrawn amount of Letters of Credit;

     Sixth, to amounts payable by Parent as Guarantor of the Obligations of the
Canadian Borrowers pursuant to Article X to be applied as provided in Section
9.03; and

     Last, the balance, if any, after all of the US Obligations and all
obligations of Parent under Article X have been paid in full, to the US
Facility Borrower or as otherwise required by Law.

     Subject to Section 2.04(c), amounts used to Cash Collateralize the
aggregate undrawn amount of US Letters of Credit pursuant to clause Fifth above
shall be applied to satisfy drawings under such US Letters of Credit as they
occur. If any amount remains on deposit as cash collateral after all US
Letters of Credit have either been fully drawn or expired, such remaining
amount shall be applied to the other US Obligations, if any, in the order set
forth above, and thereafter as provided in clause Last above.

108

 

     9.05 Separate Obligations. Except as expressly set forth in Section 4.02
and in Article X, (i) all obligations of BRCL and Canadian Hunter under this
Agreement and the other Financing Documents are separate and individual
obligations of BRCL and Canadian Hunter, respectively, and (ii) BRCL and
Canadian Hunter shall not have any liabilities in respect of US Obligations or
Canadian Obligations owing by Parent.

ARTICLE X.

GUARANTEE

     In order to induce the Lenders to extend credit hereunder, (i) each of
Parent and BRCL hereby irrevocably and unconditionally guarantees the
Obligations of Canadian Hunter, and (ii) each of Parent and Canadian Hunter
hereby irrevocably and unconditionally guarantees the Obligations of BRCL.
Each Guarantor agrees that the Guaranteed Parties may make a claim under its
guarantee hereunder immediately upon the occurrence of an Event of Default or
at any time thereafter, but (other than in the case of an Event of Default in
respect of either Canadian Borrower under Section 9.01(e) (except clause (i)(A)
thereof)) following the making of a demand on the applicable Canadian Borrower
for payment or performance, as applicable, without any obligation to first seek
any other remedy or take any other action against such Canadian Borrower. Each
Guarantor further agrees that the due and punctual payment of the Obligations
may be extended or renewed, in whole or in part, without notice to or further
assent from it, and that it will remain bound upon its guarantee hereunder
notwithstanding any such extension or renewal of any Obligation. Each and
every default in payment of the principal of or interest on any Obligation
shall give rise to a separate cause of action hereunder, and separate suits may
be brought hereunder as each cause of action arises.

     Each Guarantor waives presentment to, demand of payment from and protest
to the applicable Canadian Borrower of any of the Obligations of such Canadian
Borrower, and also waives notice of acceptance of its obligations and notice of
protest for nonpayment, subject to the requirement for demand upon a defaulting
Canadian Borrower as provided in the preceding paragraph. The obligations of
each Guarantor hereunder shall not be affected by (a) the failure of any
Guaranteed Party to assert any claim or demand or to enforce any right or
remedy against any Canadian Borrower or Parent under the provisions of this
Agreement, any other Financing Document or otherwise; (b) any extension or
renewal of any of the Obligations; (c) any rescission, waiver, amendment or
modification of, or release from, any of the terms or provisions of this
Agreement or any other Financing Document or agreement; (d) the failure or
delay of any Guaranteed Party to exercise any right or remedy against any other
guarantor of the Obligations; (e) the failure of any Guaranteed Party to assert
any claim or demand or to enforce any remedy under any Financing Document, any
guarantee or any other agreement or instrument; (f) any default, failure or
delay, wilful or otherwise, in the performance of the Obligations; or (g) any
other act, omission or delay to do any other act that may or might in any
manner or to any extent vary the risk of any Guarantor or otherwise operate as
a discharge of any Guarantor as a matter of law or equity or which would impair
or eliminate any right of any Guarantor to subrogation.

     Each Guarantor further agrees that its agreement hereunder constitutes a
promise of payment when due (including interest and fees that accrue after the
commencement by or against any Loan Party or any Affiliate thereof of any
proceeding under any Debtor Relief Laws naming such Person as the debtor in
such proceeding, regardless of whether such interest and fees are

109

 

allowed claims in such proceeding) and not merely of collection, and
waives any right to require that any resort be had by any Guaranteed Party to
any balance of any deposit account or credit on the books of any Guaranteed
Party in favor of the applicable Canadian Borrower or any other Person.

     The obligations of the Guarantors hereunder shall not be subject to any
reduction, limitation, impairment or termination for any reason, and shall not
be subject to any defense or setoff, counterclaim, recoupment or termination
whatsoever, by reason of the invalidity, illegality or unenforceability of the
Obligations, any impossibility in the performance of the Obligations or
otherwise.

     Each Guarantor further agrees that its obligations hereunder shall
continue to be effective or be reinstated, as the case may be, if at any time
payment, or any part thereof, of any Obligation is rescinded or must otherwise
be restored by any Guaranteed Party upon the bankruptcy or reorganization of
the applicable Canadian Borrower or otherwise.

     In furtherance of the foregoing and not in limitation of any other right
that any Guaranteed Party may have at law or in equity against any Guarantor by
virtue hereof, upon the failure of the applicable Canadian Borrower to pay any
Obligation owing by it when and as the same shall become due, whether at
maturity, by acceleration, after notice of prepayment or otherwise, subject to
the provisions of the first paragraph of this Article, Parent and (a) BRCL (in
the event such Obligation is due and payable by Canadian Hunter) or (b)
Canadian Hunter (in the event such Obligation is due and payable by BRCL),
hereby, in their respective capacity as Guarantor, promise to and will, upon
receipt of written demand by the Administrative Agent, forthwith pay, or cause
to be paid, to the Administrative Agent for distribution to the Guaranteed
Parties in cash an amount equal to the sum of (i) the unpaid principal amount
of such Obligations then due, (ii) accrued and unpaid interest and fees on such
Obligations and (iii) all other monetary Obligations then due and payable from
the defaulting Canadian Borrower.

     Upon payment in full by a Guarantor of any Obligation of the applicable
Canadian Borrower, each Lender shall, in a reasonable manner, assign the amount
of such Obligation owed to it and so paid to such Guarantor, such assignment to
be pro tanto to the extent to which the Obligation in question was discharged
by such Guarantor, or make such disposition thereof as such Guarantor, as
applicable, shall direct (all without recourse to any Guaranteed Party and
without any representation or warranty by any Guaranteed Party).

     Upon payment by any Guarantor of any sums as provided above, all rights of
such Guarantor against the applicable Canadian Borrower arising as a result
thereof by way of right of subrogation or otherwise shall in all respects be
subordinated and junior in right of payment to the prior indefeasible payment
in full of all the Obligations owed by such Canadian Borrower to the Guaranteed
Parties.

     Nothing shall discharge or satisfy the liability of any Guarantor
hereunder except the full performance and payment of the Obligations guaranteed
by this guarantee.

     Each reference herein to any Guaranteed Party shall be deemed to include
their or its successors and assigns, in whose favor the provisions of this
Guaranty shall also inure.

110

 

ARTICLE XI.

ADMINISTRATIVE AGENT

     11.01 Authorization and Action. Each Lender hereby appoints and
authorizes the Administrative Agent to take such action as agent on its behalf
and to exercise such powers under this Agreement and the other Financing
Documents as are delegated to the Administrative Agent by the terms hereof,
together with such powers as are reasonably incidental thereto. As to any
matters not expressly provided for by this Agreement (including enforcement of
this Agreement or collection of the Notes), the Administrative 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 Administrative Agent shall not be
required to take any action that exposes the Administrative Agent to personal
liability or that is contrary to this Agreement or applicable law. The
Administrative Agent shall be deemed not to have knowledge of any Default
unless and until written notice thereof is given to the Administrative Agent by
Parent, a Canadian Borrower or a Lender, and, in the absence of its gross
negligence or wilful misconduct, shall not be responsible for making funds
relating to any Credit Extension available to any Borrower during the
continuance of a Default or despite failure of any of the conditions precedent
to such Credit Extension. The Administrative Agent agrees to give to each
Lender prompt notice of each notice given to it by the Borrowers pursuant to
the terms of this Agreement. Nothing in this Agreement shall impose upon any
Person named as co-syndication agent or co-documentation agent in connection
with the syndication of the Facilities, in its capacity as such, any duty or
liability whatsoever.

     11.02 Administrative Agent’s Reliance, Etc. Neither the Administrative
Agent nor any of its Related Persons 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 Administrative Agent: (i)
may treat the payee of any Note as the holder thereof until the Administrative
Agent receives and accepts an Assignment and Assumption entered into by the
Lender which is the payee of such Note, as assignor, and an Eligible Assignee,
as assignee, as provided in Section 12.07; (ii) may consult with legal counsel
(including counsel for Parent and the other Borrowers), 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 Parent and the other Borrowers
or to inspect the property (including the books and records) of Parent and the
other Borrowers; (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
facsimile, electronic mail, telegram, telecopy, cable or telex) believed
by it to be genuine and signed or sent by the proper party or parties.

111

 

     11.03 Administrative Agent and Affiliates; Agents. (a) With respect to
its Commitments, the Credit Extensions made by it and the Notes issued to it,
the Administrative Agent 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 Administrative Agent; and the term “Lender” or “Lenders” shall, unless
otherwise expressly indicated, include the Administrative Agent in its
individual capacity. The Administrative Agent and its Affiliates may accept
deposits from, lend money to, act as trustee under indentures of, and generally
engage in any kind of business with, Parent, the other Borrowers, any of their
Subsidiaries, and any Person who may do business with or own securities of
Parent, the other Borrowers or any of their Subsidiaries, all as if the
Administrative Agent were not the Administrative Agent and without any duty to
account therefor to the other Lenders.

     (b) The Administrative Agent may perform any and all its duties and
exercise its rights and powers by or through any one or more sub-agents
appointed by the Administrative Agent, including, with respect to Canadian
Credit Extensions, JPMCB Canada, so long as JPMCB is the Administrative Agent,
and with respect to any successor Administrative Agent, such Administrative
Agent’s Canadian Affiliate or branch. The exculpatory provisions of this
Article shall apply to any such sub-agent and to its activities as
Administrative Agent.

     11.04 Lender Credit Decision. Each Lender acknowledges that it has,
independently and without reliance upon the Administrative Agent or any other
Lender and based on the financial statements referred to in Section 7.01 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
Administrative Agent or any other Lender and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking action under this Agreement.

     11.05 Indemnification. THE LENDERS AGREE TO INDEMNIFY THE ADMINISTRATIVE
AGENT (TO THE EXTENT NOT REIMBURSED BY PARENT OR THE OTHER BORROWERS), RATABLY
ACCORDING TO THEIR RESPECTIVE PRO RATA SHARES (DETERMINED AS OF THE TIME THAT
THE APPLICABLE UNREIMBURSED EXPENSE OR INDEMNITY IS SOUGHT), FROM AND AGAINST
ANY AND ALL LIABILITIES, OBLIGATIONS, LOSSES, DAMAGES, PENALTIES, ACTIONS,
JUDGMENTS, SUITS, COSTS, EXPENSES AND DISBURSEMENTS OF ANY KIND OR NATURE
WHATSOEVER THAT MAY BE IMPOSED ON, INCURRED BY, OR ASSERTED AGAINST THE
ADMINISTRATIVE AGENT IN ANY WAY RELATING TO OR ARISING OUT OF THIS AGREEMENT,
ANY OF THE NOTES OR ANY OTHER FINANCING DOCUMENT OR OTHER INSTRUMENT OR
DOCUMENT FURNISHED PURSUANT HERETO OR IN CONNECTION HEREWITH, OR ANY ACTION
TAKEN OR OMITTED BY THE ADMINISTRATIVE AGENT UNDER THIS AGREEMENT, OR ANY OF
THE NOTES OR ANY OTHER FINANCING DOCUMENT OR OTHER INSTRUMENT OR DOCUMENT
FURNISHED PURSUANT HERETO OR IN CONNECTION HEREWITH; 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 ADMINISTRATIVE
AGENT’S GROSS NEGLIGENCE OR WILFUL MISCONDUCT.

112

 

     Without limitation of the foregoing, each Lender agrees to reimburse the
Administrative Agent promptly upon demand for such Lender’s ratable share
(determined as provided above) of any reasonable out-of-pocket expenses
(including counsel fees) incurred by the Administrative Agent in connection
with the preparation, execution, delivery, administration, modification,
amendment or enforcement (whether through negotiations, legal proceedings, in
bankruptcy or insolvency proceedings, or otherwise) of, or legal advice in
respect of rights or responsibilities under, this Agreement, any of the Notes
or any other Financing Document or other instrument or document furnished
pursuant hereto or in connection herewith to the extent that the Administrative
Agent acts in its capacity as Administrative Agent and is not reimbursed for
such expenses by Parent or the other Borrowers.

     11.06 Successor Administrative Agent. The Administrative Agent may resign
as Administrative Agent upon 30 days’ notice to the Lenders and the Borrowers;
provided that any such resignation by JPMCB shall also constitute its
resignation as US Swing Line Lender and Canadian Swing Line Lender. If the
Administrative Agent resigns under this Agreement, (a) the Required Lenders
shall appoint from among the Lenders a successor administrative agent (the
“successor Administrative Agent”) for the Lenders, appointment of such
successor Administrative Agent being subject to the prior written consent of
the US Facility Borrower at all times other than during the existence of an
Event of Default (which consent of the US Facility Borrower shall not be
unreasonably withheld or delayed). If no successor Administrative Agent is
appointed, prior to the effective date of the resignation of the Administrative
Agent, the Administrative Agent may appoint, after consulting with the Lenders
and the US Facility Borrower, a successor Administrative Agent from among the
Lenders (that are also Canadian Lenders). Upon the acceptance of its
appointment as successor Administrative Agent hereunder, the Persons acting as
such successor Administrative Agent shall succeed to all the respective rights,
powers and duties of the retiring Person acting as Administrative Agent, the US
Swing Line Lender and the Canadian Swing Line Lender and the respective terms
“Administrative Agent,” “US Swing Line Lender,” and “Canadian Swing Line
Lender,” shall mean such successor as the Administrative Agent, the US Swing
Line Lender and the Canadian Swing Line Lender, as applicable, the retiring
Administrative Agent’s appointment, powers and duties as Administrative Agent
shall be terminated, and the retiring Person’s rights, powers and duties as the
US Swing Line Lender and the Canadian Swing Line Lender shall be terminated,
except with respect to Swing Line Loans made by it as US Swing Line Lender or
Canadian Swing Line Lender prior to the effective date of its resignation. All
of the provisions of this Agreement that apply to such Swing Line Loans shall
continue in full force and effect, without any other or further act or deed on
the part of such retiring Person as a Swing Line Lender or on the part of the
successor Administrative Agent or any other Lender. After any retiring
Administrative Agent’s resignation hereunder as Administrative Agent, the
provisions of this Article XI and Section 12.04 shall inure to its benefit as
to any actions taken or omitted to be taken by it while it was Administrative
Agent under this Agreement. If no successor Administrative Agent has accepted
appointment as Administrative Agent by the date that is 30 days following a
retiring Administrative Agent’s notice of resignation, the retiring
Administrative Agent’s resignation shall nevertheless thereupon become
effective and the Lenders shall perform all of the duties of the
Administrative Agent hereunder until such time, if any, as the Required
Lenders appoint a successor Administrative Agent as provided for above.

113

 

ARTICLE XII.

MISCELLANEOUS

     12.01 Amendments, Etc. No amendment or waiver of any provision of this
Agreement or any other Financing Document (other than the Fee Letters and the
Issuer Documents), and no consent to any departure by any Borrower or any other
Loan Party therefrom, shall be effective unless in writing signed by the
Required Lenders (or with respect to Article II of this Agreement and the
definitions in Section 1.01 relating only to Article II, by the US Required
Lenders, or with respect to Article III of this Agreement and the definitions
in Section 1.01 relating only to Article III, by the Canadian Required Lenders)
and the Borrowers and acknowledged by the Administrative Agent. Each such
waiver or consent shall be effective only in the specific instance and for the
specific purpose for which given; provided, however, that no such amendment,
waiver or consent shall:

     (a) waive any condition set forth in Article VI without the written
consent of each Lender directly affected thereby;

     (b) extend or increase the Commitment of any Lender (or reinstate any
Commitment of any Lender terminated pursuant to Section 9.02) without the
written consent of such Lender;

     (c) postpone any date fixed by this Agreement or any other Financing
Document for any payment or mandatory prepayment of principal, interest or fees
due to the Lenders (or any of them) or any scheduled or mandatory reduction of
the Aggregate Commitments hereunder or under any other Financing Document
without the written consent of each Lender directly affected thereby, except as
contemplated by, and subject to the limitations set forth in, Section 4.07;

     (d) reduce the principal of, or the rate of interest specified herein on,
any Loan or L/C Borrowing, or (subject to clause (iv) of the second proviso to
this Section 12.01) any fees payable hereunder or under any other Financing
Document without the written consent of each Lender or L/C Issuer affected
thereby; provided, however, that only the consent of the Required Lenders shall
be necessary to waive or amend any obligation of any Borrower to pay interest
at the rate provided herein for past due Obligations;

     (e) change Section 4.06, Section 9.03 or Section 9.04 in a manner that
would alter the pro rata sharing of payments required thereby without the
written consent of each Lender;

     (f) change any provision of this Section or the definition of “Required
Lenders”, “US Required Lenders” or “Canadian Required Lenders” or any other
provision hereof specifying the number or percentage of Lenders required to
amend, waive or otherwise modify any rights hereunder or make any determination
or grant any consent hereunder, without the written consent of each Lender, or
in the case of the definition of “US Required Lenders”, all US Lenders; or in
the case of the definition of “Canadian Required Lenders”, all Canadian
Lenders; or

     (g) change any provision of Article X without the written consent of each
Lender;

114

 

and, provided further, that (i) no amendment, waiver or consent shall, unless
in writing and signed by any applicable L/C Issuer in addition to the Lenders
required above, affect the rights or duties of such L/C Issuer under this
Agreement or any Issuer Document relating to any Letter of Credit issued or to
be issued by it; (ii) no amendment, waiver or consent shall, unless in writing
and signed by the US Swing Line Lender or Canadian Swing Line Lender in
addition to the Lenders required above, affect the rights or duties of the US
Swing Line Lender or Canadian Swing Line Lender, as applicable, under this
Agreement relating to US Swing Line Loans or Canadian Swing Line Loans,
respectively; (iii) no amendment, waiver or consent shall, unless in writing
and signed by the Administrative Agent in addition to the Lenders required
above, affect the rights or duties of the Administrative Agent under this
Agreement or any other Financing Document; and (iv) the Fee Letter may be
amended, or rights or privileges thereunder waived, in a writing executed only
by the parties thereto. Notwithstanding anything to the contrary herein, no
Defaulting Lender shall have any right to approve or disapprove any amendment,
waiver or consent hereunder, except any amendment, waiver or consent affecting
such Lender described in clause (b), (c), (d), (e) or (g) of the first proviso
to this Section 12.01.

     12.02 Notices, Etc.

     (a) Except as otherwise expressly provided herein, all notices and other
communications provided for hereunder shall be in writing and mailed by
certified or registered mail, return receipt requested and postage prepaid, or
telecopied, sent by facsimile or otherwise teletransmitted, or delivered: if
to any Loan Party, any initial Lender, the Administrative Agent, or any other
party hereto, at its address or office specified on Schedule 12.02; if to any
Person becoming a Lender, an L/C Issuer, the US Swing Line Lender, the Canadian
Swing Line Lender or the Administrative Agent after the Effective Date, at its
Applicable Lending Office specified in the Assignment and Assumption or the
Joinder Agreement pursuant to which it became a Lender or as otherwise
specified by it by written notice to the other parties; and as to each party
from time to time, at such other address as shall be designated by such party
in a written notice to the other parties (or in the case of a Lender, to the
Parent and the Administrative Agent).

     (b) All such notices and communications shall be effective, (i) in the
case of any notice or communication given by certified mail, when receipted
for, (ii) in the case of any notice or communication given by telecopy, telefax
or other teletransmission, when confirmed by appropriate answerback, in each
case addressed as aforesaid, (iii) in the case of any notice or communication
delivered by hand or courier, when so delivered and (iv) in the case of any
report, notice or information referred to in Section 12.02(c), when posted with
posting confirmed by electronic correspondence, or otherwise deemed delivered
pursuant to procedures approved by the Administrative Agent, except that
notices and communications to the Administrative Agent pursuant to Article II,
III, or XI shall not be effective until received by the Administrative Agent.
A notice received by the Administrative Agent or a Lender by telephone pursuant
to and in accordance with this Agreement shall be effective if the
Administrative Agent or Lender believes in good faith that it was given by an
authorized representative of the Borrower and acts pursuant thereto,
notwithstanding the absence of written confirmation or any contradictory
provision thereof.

     (c) Reports, notices, and information required to be delivered pursuant to
Section 8.03 shall be deemed to have been delivered if such reports, notices,
and information (or,

115

 

in the case of any information, one or more annual or
quarterly reports containing such information) shall have been posted by the
Administrative Agent on an IntraLinks or similar site to which the Lenders have
been granted access or shall be available on the website of the Securities and
Exchange Commission at http://www.sec.gov (and, in each case, a confirming
electronic correspondence shall have been delivered or caused to be delivered
providing notice of such posting or availability); provided that Parent or the
other Borrowers shall deliver paper copies of such information to any Lender
that requests such delivery. Reports, notices and information required to be
delivered pursuant to Section 8.03 may also be delivered by electronic
communications pursuant to procedures approved by the Administrative Agent.
Categories of reports, notices and information approved by the Administrative
Agent may be given by e-mail pursuant to procedures approved by the
Administrative Agent.

     12.03 No Waiver; Remedies. No failure on the part of any Lender or the
Administrative Agent to exercise, and no delay in exercising, any right
hereunder or under any other Financing Document shall operate as a waiver
thereof; nor shall any single or partial exercise of any right hereunder or
under any other Financing Document 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.

     12.04 Costs and Expenses; Indemnity.

     (a) Each Borrower agrees to pay on demand (i) all reasonable fees and
out-of-pocket expenses of counsel for the Administrative Agent and the Joint
Lead Arrangers in connection with the preparation, execution and delivery of
this Agreement, the Notes and the other Financing Documents to be delivered
hereunder and with respect to advising the Administrative Agent and the Joint
Lead Arrangers as to their respective rights and responsibilities under this
Agreement, (ii) all reasonable costs and expenses incurred by the
Administrative Agent and its Affiliates and the Joint Lead Arrangers and their
respective Affiliates in initially syndicating all or any portion of the
Commitments hereunder, including the related reasonable fees and out-of-pocket
expenses of counsel for the Administrative Agent or its Affiliates and the
Joint Lead Arrangers and their respective Affiliates, travel expenses,
duplication and printing costs and courier and postage fees, and excluding any
syndication fees paid to other parties joining the syndicate and (iii) all
out-of-pocket costs and expenses, if any, of the Administrative Agent and the
Joint Lead Arrangers and the Lenders (including reasonable counsel fees and
expenses and the allocated costs of in-house counsel), in connection with the
enforcement (whether through negotiations, legal proceedings, in bankruptcy or
insolvency proceedings, or otherwise) of this Agreement, the Notes and the
other Financing Documents to be delivered hereunder and thereunder.

     (b) EACH OF BRCL, CANADIAN HUNTER AND PARENT AGREES TO INDEMNIFY AND HOLD
HARMLESS THE ADMINISTRATIVE AGENT AND EACH LENDER AND THEIR RESPECTIVE RELATED
PERSONS (COLLECTIVELY, THE “INDEMNIFIED PARTIES”) FROM AND AGAINST ANY AND ALL
CLAIMS, DAMAGES, LIABILITIES AND EXPENSES (INCLUDING FEES AND DISBURSEMENTS OF
COUNSEL) THAT MAY BE INCURRED BY OR ASSERTED AGAINST ANY
INDEMNIFIED PARTY IN CONNECTION WITH OR ARISING OUT OF ANY INVESTIGATION,
LITIGATION, OR PROCEEDING (WHETHER OR NOT SUCH

116

 

INDEMNIFIED PARTY IS PARTY
THERETO) RELATED TO ANY ACQUISITION OR PROPOSED ACQUISITION BY ANY BORROWER, OR
BY ANY SUBSIDIARY OF ANY BORROWER, OF ALL OR ANY PORTION OF THE EQUITY
INTERESTS IN, OR SUBSTANTIALLY ALL THE ASSETS OF, ANY PERSON OR ANY USE OR
PROPOSED USE OF THE LOANS OR OTHER EXTENSIONS OF CREDIT BY ANY BORROWER (EXCEPT
TO THE EXTENT SUCH CLAIMS, DAMAGES, LIABILITIES OR EXPENSES RESULT FROM THE
GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF SUCH INDEMNIFIED PARTY OR ANY OF ITS
RELATED PERSONS OR FROM ANY USE OR DISCLOSURE BY SUCH INDEMNIFIED PARTY OR ANY
OF ITS RELATED PERSONS OF INFORMATION RELATING TO ANY SUCH ACQUISITION OR
PROPOSED ACQUISITION OR ANY SUCH USE OR PROPOSED USE OF THE LOANS).

     12.05 Right of Set-off. Upon the Loans becoming due and payable pursuant
to the provisions of Section 9.02, each Lender 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
to or for the credit or the account of any Borrower against any and all of the
obligations of such Borrower now or hereafter existing under this Agreement and
any other Financing Document held by such Lender, irrespective of whether or
not such Lender shall have made any demand under this Agreement or such other
Financing Document and although such obligations may be unmatured. Each Lender
agrees promptly to notify the applicable Borrower after any such set-off and
application made by such Lender, provided that the failure to give such notice
shall not affect the validity of such set-off and application. The rights of
each Lender under this Section 12.05 are in addition to other rights and
remedies (including other rights of set-off) that such Lender may have.

     12.06 Binding Effect. This Agreement shall become effective in accordance
with the provisions of Section 6.01, and thereafter shall be binding upon and
inure to the benefit of Parent, the other Borrowers, the Administrative Agent
and each Lender, and their respective successors and assigns, except that none
of Parent or the other Borrowers shall have the right to assign their rights
and obligations hereunder or any interest herein without the prior written
consent of all of the Lenders; provided that notwithstanding the foregoing
either Canadian Borrower shall be permitted to transfer its rights and
obligations hereunder to a wholly-owned Subsidiary of Parent (i) if such
Subsidiary is organized and existing under the laws of Canada or any political
subdivision thereof and (ii) the Borrowers guarantee the obligations of any new
Borrower on substantially the terms set forth in Article X, at which time BRCL
and/or Canadian Hunter, as applicable, shall cease to be a Borrower hereunder
and shall cease to have any liability under this Agreement, the Notes, if any,
or any other Financing Document except under such guarantee and Article X. Any
merger, amalgamation or consolidation in compliance with Section 8.02(d) of (i)
either Canadian Borrower with Parent or a wholly-owned Subsidiary of Parent
organized under the laws of Canada or any political subdivision thereof, or
(ii) Parent shall not constitute an assignment for purposes of this Section
12.06.

     12.07 Assignments and Participations.

     (a) Each Lender may (or in the circumstances specified in Section 12.11
shall) assign to one or more banks or other entities all or a portion of its
rights and obligations under this

117

 

Agreement (including all or a portion of its
US Commitment, its Canadian Commitment, the Obligations owing to it and the
Note or Notes, if any, held by it); provided, however, that each such
assignment shall be to an Eligible Assignee and the parties to each such
assignment shall execute and deliver to the Administrative Agent, for its
acceptance and recording in the Register, an Assignment and Assumption,
together with any Note or Notes subject to such assignment and, except in the
case of an assignment to a Lender Affiliate, a processing and recordation fee
of US$3,500 and shall send to the Borrowers an executed counterpart of such
Assignment and Assumption, and provided further, however, that (i) except in
the case of an assignment to a Lender Affiliate, each such assignment shall be
of a constant, and not a varying, percentage of all such Lender’s rights and
obligations under this Agreement, (ii) the amount of the US Commitment and
Canadian Commitment, if applicable, of the assigning Lender being assigned to
the assignee pursuant to each such assignment (determined as of the date of the
Assignment and Assumption with respect to such assignment) must be equal to or
greater than US $25,000,000, or if less, the entire amount of such assigning
Lender’s US Commitment or Canadian Commitment, as applicable, (unless the
Borrowers and the Administrative Agent shall otherwise consent, which consent
may be withheld for any reason) and must be an integral multiple of US
$1,000,000, and (iii) except in the case of an assignment by a Lender that is a
Schedule II chartered bank under the Bank Act (Canada) to a Lender Affiliate
thereof that is a bank listed on Schedule III under the Bank Act (Canada), any
assignment to a Lender Affiliate will not relieve the assigning Lender of its
obligation to make Credit Extensions hereunder timely in accordance with the
terms hereof in the event such Lender Affiliate shall fail to do so. Upon the
execution, delivery, acceptance and recording of each Assignment and Assumption
by the parties thereto, from and after the effective date specified in such
Assignment and Assumption, (x) the assignee thereunder shall be a party hereto
and, to the extent that rights and obligations hereunder have been assigned to
it pursuant to such Assignment and Assumption, have the rights and obligations
of a Lender hereunder and (y) except in the circumstances contemplated in
clause (iii) above, the Lender assignor thereunder shall, to the extent that
rights and obligations hereunder have been assigned by it pursuant to such
Assignment and Assumption covering all or the remaining portion of an assigning
Lender’s rights and obligations under this Agreement, such Lender shall
relinquish its rights and be released from its obligations hereunder, provided,
however, such assigning Lender shall retain any claim with respect to any fee,
interest, cost, expense or indemnity that accrues, or relates to an event that
occurs, prior to the date of such assignments pursuant to Section 2.04(i) or
(j), 3.04(i) or (j), 4.01, 4.02, 5.01, 5.04, 5.05, or 12.04.

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

118

 

the financial statements
referred to in Section 7.01 and such other documents and information as it has
deemed appropriate to make its own credit analysis and decision to enter into
such Assignment and Assumption; (iv) such assignee will, independently and
without reliance upon the Administrative 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
(subject to obtaining requisite approvals to the extent required in the
definition of such term) an Eligible Assignee; (vi) such assignee appoints and
authorizes the Administrative Agent to take such action as agent on its behalf
and to exercise such powers under this Agreement as are delegated to the
Administrative Agent by the terms hereof, together with such powers as are
reasonably incidental thereto; and (vii) such assignee agrees that it will
perform in accordance with their terms all of the obligations which by the
terms of this Agreement are required to be performed by it as a Lender.

     (c) The Administrative Agent shall maintain at its address referred to in
Section 12.02 a copy of each Assignment and Assumption, and each document
relevant to an increase in Commitments, or admission of a new Lender, pursuant
to Section 4.08 delivered to and accepted by it and a register (which register
may be in electronic form) for the recordation of the names and addresses of
the Lenders and the Commitment and Canadian Commitment, if applicable, of, and
principal amount of the Loans and L/C Obligations 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 Borrowers, the
Administrative 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 any Borrower or
any Lender at any reasonable time and from time to time upon reasonable prior
notice.

     (d) Upon its receipt of an Assignment and Assumption executed by an
assigning Lender and an assignee representing that it is an Eligible Assignee,
together with any Note or Notes subject to such assignment, the Administrative
Agent shall, if such Assignment and Assumption has been completed and is in
substantially the form of Exhibit F hereto, (i) accept such Assignment and
Assumption, (ii) record the information contained therein in the Register and
(iii) give prompt notice thereof to the Borrowers. Within five Business Days
after its receipt of such notice and its receipt of an executed counterpart of
such Assignment and Assumption, the applicable Borrower, at its own expense,
shall, if requested by the applicable Eligible Assignee, execute and deliver to
the Administrative Agent in exchange for any surrendered Note or Notes new
Notes evidencing Loans made to such Borrower to the order of such Eligible
Assignee and, if the assigning Lender has retained a Commitment hereunder, new
Notes to the order of the assigning Lender. Any such new Note or Notes shall
be dated the effective date of such Assignment and Assumption and shall
otherwise be in substantially the form of Exhibit D-1 or D-2, as applicable.

     (e) Each Lender may sell participations to one or more banks or other
entities in or to all or a portion of its rights and obligations under this
Agreement (including all or a portion of its Commitment and Canadian
Commitment, if applicable, and the Obligations owing to it and the Note or
Notes held by it); provided, however, that (i) such Lender’s obligations under
this
Agreement (including its Commitment and Canadian Commitment, if
applicable, to the Borrowers hereunder) shall remain unchanged, (ii) such
Lender shall remain solely responsible

119

 

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) Parent, the other
Borrowers, the Administrative Agent and the other Lenders shall continue to
deal solely and directly with such Lender in connection with such Lender’s
rights and obligations under this Agreement, (v) such Lender shall continue to
be able to agree to any modification or amendment of this Agreement or any
waiver hereunder without the consent, approval or vote of any such participant
or group of participants, other than modifications, amendments and waivers that
(A) postpone any date fixed for any payment of, or reduce any payment of,
principal of or interest on such Lender’s Loans or other Credit Extensions
hereunder or any Facility Fees or Utilization Fees payable under this
Agreement, or (B) increase the amount of such Lender’s Commitment or Canadian
Commitment, if applicable, in a manner which would have the effect of
increasing the amount of a participant’s participation, or (C) reduce the
interest rate or other applicable rate payable under this Agreement in
connection with such Lender’s Loans and other Credit Extensions hereunder, or
(D) consent to the assignment or the transfer by the Borrowers or Parent of
their respective rights and obligations under the Agreement, and (vi) except as
contemplated by the immediately preceding clause (v), no participant shall be
deemed to be or to have any of the rights or obligations of a “Lender”
hereunder.

     (f) Any Lender may, in connection with any assignment or participation or
proposed assignment or participation pursuant to this Section 12.07, disclose
to the assignee or participant or proposed assignee or participant, any
information relating to Parent or the other Borrowers furnished to such Lender
by or on behalf of Parent or the other Borrowers; provided that, prior to any
such disclosure, the assignee or participant or proposed assignee or
participant shall agree in writing for the benefit of Parent and the other
Borrowers to preserve the confidentiality of any confidential information
relating to Parent and the other Borrowers received by it from such Lender in a
manner consistent with Section 12.08.

     (g) Anything in this Agreement to the contrary notwithstanding, any Lender
may at any time create a security interest in all or any portion of its rights
under this Agreement (including the Loans and other Credit Extensions repayment
of which is owing to it) and the Notes, if any, issued to it hereunder in favor
of any United States Federal Reserve Bank in accordance with Regulation A of
the Board of Governors of the Federal Reserve System of the United States (or
any successor regulation) and the applicable operating circular of such Federal
Reserve Bank.

     (h) Notwithstanding anything to the contrary contained herein, if at any
time JPMCB assigns all of its Commitment and Loans pursuant to subsection (a)
above, JPMCB may, (i) upon 30 days’ notice to the Borrowers and the Lenders,
and, so long as one or more financial institutions reasonably acceptable to the
Borrowers have accepted their appointment as a successor L/C Issuer, resign as
L/C Issuer and/or (ii) upon 30 days’ notice to the Borrowers, resign as US
Swing Line Lender and Canadian Swing Line Lender. In the event of any such
resignation as an L/C Issuer, or as US Swing Line Lender or Canadian Swing Line
Lender, the US Facility Borrower shall be entitled to appoint from among the
Lenders a successor US L/C Issuer or US Swing Line Lender, as applicable,
hereunder, and the Canadian Facility Borrowers shall be entitled to appoint
from among the Canadian Lenders a successor Canadian L/C Issuer
or Canadian Swing Line Lender, as applicable, hereunder, in each case with
the consent of the Lender so appointed; provided, however, that no failure by
any Borrower to appoint any such

120

 

successor shall affect the resignation of
JPMCB as (except as provided above) an L/C Issuer, or as US Swing Line Lender
or Canadian Swing Line Lender, as the case may be. If JPMCB resigns as an L/C
Issuer, it shall retain all the rights and obligations of the L/C Issuer
hereunder with respect to all Letters of Credit issued by it and outstanding as
of the effective date of its resignation as an L/C Issuer and all L/C
Obligations with respect thereto (including the right to require the Lenders to
make US Base Rate Committed Loans or fund risk participations in US
Unreimbursed Amounts pursuant to Section 2.04(c) and to require the Canadian
Lenders to make Canadian Prime Rate Committed Loans or fund risk participations
in Canadian Unreimbursed Amounts pursuant to Section 3.04(c). If JPMCB resigns
as US Swing Line Lender or Canadian Swing Line Lender, it shall retain all the
rights of the US Swing Line Lender or Canadian Swing Line Lender, as
applicable, provided for hereunder with respect to Swing Line Loans made by it
and outstanding as of the effective date of such resignation (including the
right to require the Lenders to make US Base Rate Committed Loans or fund risk
participations in outstanding US Swing Line Loans pursuant to Section 2.05(c)
or to make Canadian Prime Rate Committed Loans or fund risk participations in
outstanding Canadian Swing Line Loans pursuant to Section 3.05(c)).

     12.08 Confidentiality. Each Lender and the Administrative Agent (each, a
“party”) agrees that it will use its best reasonable efforts not to disclose,
without the prior consent of the Loan Parties (other than to its, or its
Affiliates, employees, auditors, accountants, counsel or other representatives,
whether existing at the Effective Date or any subsequent time), any information
with respect to the Loan Parties that is furnished pursuant to this Agreement,
provided that any party may disclose any such information (i) as has become
generally available to the public, (ii) as may be required or appropriate in
any report, statement or testimony submitted to, or as may be requested by, any
Governmental Authority having or claiming to have jurisdiction over such party
or any self-regulatory body having or claiming to have authority to regulate or
oversee any aspect of such party’s or its Affiliates’ businesses, (iii) as may
be required or appropriate in response to any summons or subpoena or in
connection with any litigation or regulatory proceeding, (iv) in order to
comply with any Law applicable to such party, or (v) to any prospective
assignee or participant in connection with any contemplated assignment of any
rights or obligations hereunder or any sale of any participation therein, by
such party pursuant to Section 12.07, if such prospective assignee or
participant, as the case may be, executes an agreement with the Loan Parties
containing provisions substantially similar to those contained in this Section
12.08; provided, however, that the Loan Parties acknowledge that the
Administrative Agent has disclosed and may continue to disclose such
information as the Administrative Agent in its sole discretion determines is
appropriate to the Lenders from time to time.

     12.09 Interest Rate Limitation. Notwithstanding anything to the contrary
contained in any Loan Document, the interest paid or agreed to be paid under
the Loan Documents shall not exceed the maximum rate of non-usurious interest
permitted by applicable Law (the “Maximum Rate”). If the Administrative Agent
or any Lender shall receive interest in an amount that exceeds the Maximum
Rate, the excess interest shall be applied to the principal of the Loans or, if
it exceeds such unpaid principal, refunded to the applicable Borrower. In
determining whether the interest contracted for, charged, or received by the
Administrative Agent or a Lender exceeds the Maximum Rate, such Person may, to
the extent permitted by applicable Law, (a) characterize
any payment that is not principal as an expense, fee, or premium rather
than interest, (b) exclude

121

 

voluntary prepayments and the effects thereof, and
(c) amortize, prorate, allocate, and spread in equal or unequal parts the total
amount of interest throughout the contemplated term of the Obligations
hereunder. In no event shall the aggregate “interest” (as defined in section
347 of the Criminal Code (Canada)) payable with respect to any Canadian
Obligations exceed the maximum effective annual rate of interest on the “credit
advanced” (as defined in that section) permitted under that section and, if any
payment, collection or demand pursuant to this Agreement in respect of
“interest” (as defined in that section) is determined to be contrary to the
provisions of that section, such payment, collection or demand shall be deemed
to have been made by mutual mistake of Canadian Facility Borrowers, the
Administrative Agent and Lenders and the amount of such excess payment or
collection shall be refunded to the applicable Canadian Facility Borrowers.
For purposes of the Canadian Obligations, the effective annual rate of interest
shall be determined in accordance with generally accepted actuarial practices
and principles over the term applicable to the Canadian Obligations on the
basis of annual compounding of the lawfully permitted rate of interest and, in
the event of dispute, a certificate of a Fellow of the Canadian Institute of
Actuaries appointed by the Administrative Agent shall be prima facie evidence,
for the purposes of such determination.

     12.10 Consent to Jurisdiction.

     (a) Each Loan Party hereby irrevocably and unconditionally submit itself
and its property to the non-exclusive jurisdiction of the Courts of the State
of New York and of the United States District Court of the Southern District of
New York and any appellate court from any thereof in any action or proceeding
by the Administrative Agent, the Joint Lead Arrangers, any Lender or the holder
of any Note in respect of, but only in respect of, any claims or causes of
action arising out of or relating to this Agreement, the Notes or the other
Financing Documents (such claims and causes of action, collectively, being
“Permitted Claims”), and each Loan Party hereby irrevocably agrees that all
Permitted Claims may be heard and determined in the State of New York or, to
the extent permitted by law, in such Federal Court. Each Loan Party hereby
irrevocably and unconditionally waives, to the fullest extent it may
effectively do so, the defense of an inconvenient forum to the maintenance of
such action or proceeding in any aforementioned court in respect of Permitted
Claims. Service of the statement of claim and any other process which may be
served by the Administrative Agent, the Joint Lead Arrangers, any Lender or the
holder of any Note on any Loan Party in any such action or proceeding in any
aforementioned court in respect of Permitted Claims may be made by delivering
separate copies of such process to each Loan Party by courier and by registered
mail (return receipt requested), fees and postage prepaid at the address of
such Loan Party specified pursuant to Section 12.02, to the attention of each
of the Treasurer and the Vice President and General Counsel of Parent, or each
of the General Counsel and Assistant Treasurer in the case of the other
Borrowers. Each Loan Party 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.

     (b) Nothing in this Section 12.10 (i) shall affect the right of the Joint
Lead Arrangers, the Loan Parties, any Lender, the holder of any Note or the
Administrative Agent to serve legal process in any other manner permitted by
Law or affect any right otherwise existing of the Loan Parties, any Lender, the
Joint Lead Arrangers, the holder of any Note or the Administrative Agent to
bring any action or proceeding in the courts of other jurisdictions or (ii)
shall be
deemed to be a general consent to jurisdiction in any particular court or
a general waiver of any

122

 

defense or a consent to jurisdiction of the courts
expressly referred to in subsection (a) above in any action or proceeding in
respect of any claim or cause of action other than Permitted Claims.

     12.11 Replacement of Lenders. In the event that any Lender shall (i)
claim payment of any amount pursuant to Section 5.01; (ii) claim any increased
cost pursuant to Section 5.04 or the benefit of Section 5.02 or 5.03; (iii)
fail to agree to extend the Maturity Date pursuant to Section 4.07, if the
Extension Required Lenders have agreed to do so; (iv) become and continue to be
a Defaulting Lender; or (v) fail to consent to an election, consent, amendment,
waiver or other modification to this Agreement or any other Loan Document that
requires the consent of a greater percentage of the Lenders than the Required
Lenders, the US Required Lenders or the Canadian Required Lenders, as the case
may be, and such election, consent, amendment, waiver or other modification is
otherwise consented to by the Required Lenders, the US Required Lenders or the
Canadian Required Lenders, as the case may be, (a) the US Facility Borrower
may, upon notice to such Lender and the Administrative Agent, replace such
Lender by causing such Lender to assign at the US Facility Borrower’s expense
for direct, out-of-pocket expenses, including the processing and recordation
fee under Section 12.07(a), and upon such notice by the US Facility Borrower
such Lender shall assign, its rights and obligations hereunder (with the
assignment fee to be paid by the US Facility Borrower in such instance)
pursuant to Section 12.07 to one or more Eligible Assignees that are or have an
affiliate that is a Canadian Resident Lender, if applicable, procured by the US
Facility Borrower, each of which shall assume a pro rata portion of the
Commitment (including the Canadian Commitment, if applicable) and the Credit
Extensions of such replaced Lender or (b) the applicable Borrower may, upon
three Business Days’ notice to such Lender through the Administrative Agent,
prepay in full all of the outstanding Loans and Bankers’ Acceptances (as
applicable) of such Lender and all other Obligations owing to such Lender, or
its assignee, together with accrued interest thereon to the date of prepayment
and all other amounts owed by the Borrowers to such Lender accrued to the date
of prepayment, and concurrently therewith the US Facility Borrower may
terminate this Agreement with respect to such Lender by giving notice of such
termination to Administrative Agent and such Lender. Upon satisfaction of the
requirements set forth above in clause (a) of the preceding sentence, payment
to the Lender to be replaced of the purchase price in immediately available
funds, and the payment by the Borrowers of all requested costs accruing to the
date of purchase that the Borrowers are obligated to pay under Sections 5.01,
5.03 and 5.04 and all other amounts owed by the Borrowers to such Lender (other
than the principal of and interest on the Credit Extension of such Lender, and
accrued facility and utilization fees, purchased by the Eligible Assignee) such
Eligible Assignee shall constitute a “Lender”, and if applicable, a “Canadian
Lender”, hereunder, as the case may be, and the Lender being so replaced shall
no longer constitute a “Lender” or “Canadian Lender” hereunder, as the case may
be, and its Commitment, and if applicable, its Canadian Commitment, shall be
deemed terminated. If, however, (x) the Eligible Assignee fails to purchase
such rights and interest on such specified date in accordance with the terms of
such offer, the Borrowers shall continue to be obligated to pay amounts to such
Lender or Canadian Lender pursuant to Section 5.01 or increased costs pursuant
to Section 5.04, as the case may be, or (y) the Lender proposed to be replaced
fails to consummate such purchase offer, (i) if such Lender has claimed any
payment or increased cost pursuant to Section 5.01 or 5.04, as applicable, the
Borrowers shall not be obligated to pay to such Lender or Canadian Lender such
increased costs or additional amounts incurred or accrued from and after the
date of such purchase offer and (ii) if such Lender has failed to agree to
extend

the Maturity Date pursuant to Section 4.07, such Lender shall,

123

 

notwithstanding any prior failure to agree to a request to extend the Maturity
Date, be deemed to have agreed to such extension request, and to be a
Consenting Lender with respect thereto, for all purposes of this Agreement.

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

     12.13 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 to the Administrative Agent of a counterpart executed by a Lender
shall constitute delivery of such counterpart to all of the Lenders. Delivery
of an executed counterpart by facsimile shall be as effective as delivery of a
manually executed original counterpart.

     12.14 Waiver of Jury Trial. EACH OF THE LOAN PARTIES, THE ADMINISTRATIVE
AGENT, THE LENDERS AND THE OTHER PARTIES HERETO HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OF THE NOTES OR
ANY OTHER FINANCING DOCUMENT OR OTHER INSTRUMENT OR DOCUMENT FURNISHED PURSUANT
HERETO OR IN CONNECTION HEREWITH OR THE TRANSACTIONS CONTEMPLATED HEREBY.

     12.15 USA Patriot Act Notice. Each Lender and the Administrative Agent
(for itself and not on behalf of any Lender) hereby notifies the Borrowers that
pursuant to the requirements of the USA Patriot Act (Title III of Pub. L.
107-56 (signed into law October 26, 2001)) (the “Act”), it is required to
obtain, verify and record information that identifies each Borrower, which
information includes the name and address of such Borrower and other
information that will allow such Lender or the Administrative Agent, as
applicable, to identify such Borrower in accordance with the Act.

     12.16 Amendment and Restatement; Certain Waivers. In the event any lender
under the Existing Short-Term Revolving Credit Agreement whose consent is
required for the amendment and restatement of the Existing Short-Term Revolving
Credit Agreement by this Agreement shall have failed to provide such consent,
this Agreement shall be deemed to be a new credit agreement entered into by the
parties hereto independently of the Existing Short-Term Revolving Credit
Agreement, and the commitments under the Existing Short-Term Revolving Credit
Agreement shall be deemed to have terminated as of the Effective Date. Each of
the Lenders hereby waives any notice it might be entitled to under the Existing
Long-Term Revolving Credit Agreement, the Existing Canadian Credit Agreement
and, in the circumstances referred to in the immediately preceding sentence,
the Existing Short-Term Revolving Credit Agreement in connection with
termination of commitments, and prepayment of loans and other amounts,
thereunder.

     12.17 Entire Agreement, Etc. This Agreement, together with any other
documents executed in connection herewith, express the entire understanding of
the parties with respect to

124

 

the transactions contemplated hereby. Neither this Agreement nor any term
hereof may be changed, waived, discharged or terminated, except as provided in
Section 12.01.

     12.18 Waiver of Notice of Termination. Immediately prior to, but
substantially simultaneously with, the effectiveness of this Agreement, the
commitments under each of the Existing Canadian Credit Agreement and the
Existing US Long-Term Revolving Credit Agreement will be terminated and any
loans outstanding thereunder will be prepaid. Each Lender that is party to
either of such Agreements consents to such termination and prepayment and
waives any notice it might be entitled to under Section 2.04 or 2.10, as
applicable, of each of the Existing US Long-Term Credit Agreement and the
Existing Canadian Credit Agreement to which it is a party in connection with
such termination or prepayment. The foregoing does not constitute, and shall
not be construed as, waiver by the Lenders of any compensation they might be
entitled to under Section 8.04(b) of the Existing US Long-Term Revolving Credit
Agreement or Section 9.04(b) of the Existing Canadian Credit Agreement, as
applicable, as a result of any such prepayment.

[SIGNATURE PAGES FOLLOW]

125

 

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

	 	 	 	 	 
	 	BURLINGTON RESOURCES INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	BURLINGTON RESOURCES CANADA LTD.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	

BURLINGTON RESOURCES CANADA (HUNTER) LTD.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK,

individually and as Administrative Agent, US 

Swing Line Lender and US L/C Issuer,

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	

JPMORGAN CHASE BANK, TORONTO 

BRANCH, individually and as Canadian Swing 

Line Lender and Canadian L/C Issuer,

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

S-1

 

	 	 	 	 	 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A., individually and as 

US L/C Issuer,

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A., CANADA 

BRANCH, individually and as Canadian L/C 

Issuer,

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

S-2

 

	 	 	 	 	 
	 	SIGNATURE PAGE TO BURLINGTON RESOURCES

INC. CREDIT AGREEMENT DATED AS OF JULY

29, 2004

Name of Lender:

	 	By:  	

	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

S-3

 

	 	 	 	 	 
	 	SIGNATURE PAGE TO BURLINGTON 

RESOURCES INC. CREDIT AGREEMENT 

DATED AS OF JULY 29, 2004

Name of Lender:

	 	By:  	

	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 	 	 	 	 
	 	Name of
Lender:

	 	By:  	

	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

S-4

 

	 	 	 	 	 

Schedule 1.01

PRICING

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	LEVEL I
	 	LEVEL II
	 	LEVEL III
	 	LEVEL IV
	 	LEVEL V
	 	LEVEL VI

	Basis for Pricing

	 	A or higher by
S&P/A2 or higher by
Moody’s
	 	A- by S&P/A3 by
Moody’s
	 	BBB+ by S&P/ Baa1
by Moody’s
	 	BBB by S&P/Baa2 by
Moody’s
	 	BBB- by S&P/ Baa3
by Moody’s
	 	Lower than BBB- by
S&P/ Baa3 by
Moody’s
	Facility Fee

Percentage

	 	8 bps
	 	9 bps
	 	11 bps
	 	12.5 bps
	 	15 bps
	 	20 bps
	Applicable Margin

	 	22 bps
	 	28.5 bps
	 	34 bps
	 	42.5 bps
	 	52.5 bps
	 	67.5 bps

The applicable pricing level shall change on the date of any relevant change in
the rating by S&P or Moody’s of any public long term senior unsecured debt
securities of the Parent. In the case of split ratings from S&P and Moody’s,
the rating to be used to determine the applicable pricing level is the higher
of the two (e.g., A-/Baa1 results in Level II pricing), provided that in the
event the split is more than one full category, the average (or the higher of
two intermediate ratings) shall be used (e.g., A-/Baa2 results in Level III
pricing, as does A-/Baa3).

 

 

Schedule 2.01

COMMITMENTS

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Canadian	 	 
	 	 	U.S. Commitment	 	Commitment	 	Total Commitment
	Lender
	 	Allocation
	 	Allocation1
	 	Allocation

	JPMorgan Chase Bank
	 	$	25,000,000	 	 	$	75,000,000	 	 	$	100,000,000	 
	Bank of America, N.A.
	 	$	25,000,000	 	 	$	75,000,000	 	 	$	100,000,000	 
	Bank of Tokyo-Mitsubishi, Ltd.
	 	$	50,000,000	 	 	$	30,000,000	 	 	$	80,000,000	 
	Barclays Bank plc
	 	$	80,000,000	 	 	$	0	 	 	$	80,000,000	 
	Citibank, N.A.
	 	$	30,000,000	 	 	$	50,000,000	 	 	$	80,000,000	 
	BNP Paribas
	 	$	30,000,000	 	 	$	30,000,000	 	 	$	60,000,000	 
	Credit Suisse First Boston,
acting through its Cayman
Islands Branch
	 	$	30,000,000	 	 	$	30,000,000	 	 	$	60,000,000	 
	Harris Nesbitt Financing, Inc.
	 	$	30,000,000	 	 	$	30,000,000	 	 	$	60,000,000	 
	Merrill Lynch Bank USA
	 	$	60,000,000	 	 	$	0	 	 	$	60,000,000	 
	Morgan Stanley Bank
	 	$	30,000,000	 	 	$	30,000,000	 	 	$	60,000,000	 
	The Royal Bank of Scotland plc
	 	$	60,000,000	 	 	$	0	 	 	$	60,000,000	 
	Sumitomo Mitsui Banking
Corporation
	 	$	30,000,000	 	 	$	30,000,000	 	 	$	60,000,000	 
	SunTrust Bank
	 	$	60,000,000	 	 	$	0	 	 	$	60,000,000	 
	UBS Loan Finance LLC
	 	$	30,000,000	 	 	$	30,000,000	 	 	$	60,000,000	 
	Wachovia Bank, National
Association
	 	$	60,000,000	 	 	$	0	 	 	$	60,000,000	 
	The Bank of New York
	 	$	45,000,000	 	 	$	0	 	 	$	45,000,000	 
	Bayerische Landesbank, Cayman
Islands Branch
	 	$	45,000,000	 	 	$	0	 	 	$	45,000,000	 
	Deutsche Bank AG New York
Branch
	 	$	25,000,000	 	 	$	20,000,000	 	 	$	45,000,000	 
	Mellon Bank, N.A.
	 	$	25,000,000	 	 	$	20,000,000	 	 	$	45,000,000	 
	Societe Generale
	 	$	25,000,000	 	 	$	20,000,000	 	 	$	45,000,000	 
	Toronto Dominion (Texas), Inc.
	 	$	25,000,000	 	 	$	20,000,000	 	 	$	45,000,000	 
	Wells Fargo Bank, NA
	 	$	45,000,000	 	 	$	0	 	 	$	45,000,000	 

	1  	 Canadian Commitment allocated to Lender’s Canadian Affiliate or branch as
reflected in such Lender’s signature page for such Canadian Affiliate of
branch, as applicable.
	 
	 	 	
 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Canadian	 	 
	 	 	U.S. Commitment	 	Commitment	 	Total Commitment
	Lender
	 	Allocation
	 	Allocation1
	 	Allocation

	William Street Commitment
Corp.
	 	$	45,000,000	 	 	$	0	 	 	$	45,000,000	 
	Banca di
Roma – Chicago Branch
	 	$	20,000,000	 	 	$	0	 	 	$	20,000,000	 
	Bayerische Hypo-und
Vereinsbank AG, New York
Branch
	 	$	20,000,000	 	 	$	0	 	 	$	20,000,000	 
	The Northern Trust Company
	 	$	20,000,000	 	 	$	0	 	 	$	20,000,000	 
	Royal Bank of Canada
	 	$	10,000,000	 	 	$	10,000,000	 	 	$	20,000,000	 
	Southwest Bank of Texas
	 	$	20,000,000	 	 	$	0	 	 	$	20,000,000	 
	 
	 	 	
 	 	 	 	
 	 	 	 	
 	 
	Total:
	 	$	1,000,000,000	 	 	$	500,000,000	 	 	$	1,500,000,000	 
	 
	 	 	
 	 	 	 	
 	 	 	 	
 	 

 

 

SCHEDULE 7.01

MATERIAL SUBSIDIARIES

     Burlington Resources Canada Ltd.

     Burlington Resources Canada (Hunter) Ltd.

     The Louisiana Land and Exploration Company

     Burlington Resources Oil & Gas Company LP

     BROG GP Inc.

     BROG LP Inc.

     Burlington Resources Canada Partnership

Schedule 7.01-1

 

SCHEDULE 12.02

ADMINISTRATIVE AGENT’S OFFICE

AND CERTAIN ADDRESSES FOR NOTICES

	 	 	If to BRCL:

	 	 	c/o Burlington Resources Inc.

717 Texas Avenue, Suite 2100

Houston, Texas 77002-2712

Attention: Treasurer

Facsimile: (713) 624-9627

with a copy to
	 
	 	 	Burlington Resources Canada Ltd.

3700, 250 6th Avenue S.W.

Calgary, Alberta, Canada T2P3H7

Attention: Dave Belcher

Facsimile: (403) 263-2708
	 
	 	 	If to Canadian Hunter:
	 
	 	 	c/o Burlington Resources Inc.

717 Texas Avenue, Suite 2100

Houston, Texas 77002-2712

Attention: Treasurer

Facsimile: (713) 624-9627

with a copy to
	 
	 	 	Burlington Resources Canada (Hunter) Ltd.

3700, 250 6th Avenue S.W.

Calgary, Alberta, Canada T2P3H7

Attention: Dave Belcher

Facsimile: (403) 263-2708
	 
	 	 	If to Parent:
	 
	 	 	Burlington Resources Inc.

717 Texas Avenue, Suite 2100

Houston, Texas 77002-2712

Attention: Treasurer

Facsimile: (713) 624-9627

     If to any Lender, at its Applicable Lending Office set forth in such
Lender’s Administrative Questionnaire.

Schedule 12.02-1

 

	 	 	If to the Administrative Agent:
	 
	 	 	JPMorgan Chase Bank

Loan and Agency Services Group

1111 Fannin Street, 10th Floor

Houston, TX 77002

Attention: Claudette Reid

Fax: (713) 427-6307

	 	 	or, in the case of any matters relating to the Canadian Facility,

	 	 	JPMorgan Chase Bank, Toronto Branch

200 Bay Street, Suite 1800

Royal Bank Plaza, South Tower

Toronto, Ontario M5J 2J2

Attention: Amanda Staff

Fax: (416) 981-9128

	 
	 	 	with a copy to, in each case,
	 
	 	 	JPMorgan Chase Bank

600 Travis Street, 20th Floor

Houston, TX 77002

Attention: Robert Mertensotto

Fax: (713) 216-8870

or, as to each party, at such other address as shall be designated by such
party in a written notice to the other parties.

Schedule 12.02-2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}]]