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Exhibit 10.18(i)    
  

 
 

First Amendment to the Anthem 2001-2003 Long-Term Incentive Plan
  April 25, 2002    
  

        The Anthem 2001-2003 Long-Term Incentive Plan (the "Plan") is amended pursuant to Section XIII thereof as follows: 

1.    Section VII. Payment of Awards  

        The first subsection of Section VII is replaced in its entirety with the following, which supersedes and controls over any conflicting terms of the Plan: 

        Payment Deferral Options:    Except as otherwise provided in Section VIII, Participants who are active employees of the
Company as of December 31, 2003 shall be entitled to receive payment of their vested Award Accounts according to their choice among the following options: 

	(i)
	A
lump sum equal to vested Award Account value paid as soon as practicable after the completion of the Performance Period.

	(ii)
	Five
equal annual installments with the first installment beginning as soon as practicable after completion of the Performance Period.

	(iii)
	Lump
sum paid at Approved Retirement.

	(iv)
	Five
equal annual installments, with the first installment beginning on the first day of the Participant's Approved Retirement.

	(v)
	Payments
in two calendar years (not necessarily consecutive and not preceding the end of the Performance Period) elected by a Participant of a specified
percentage (not necessarily equal percentages, but in the aggregate 100%) of his/her Award Account. 

        Notwithstanding
anything contained in subsection (iii) or (iv) to the contrary, payment of the lump sum or commencement of installment payments to a Participant whose
Approved Retirement occurred during a Performance Period shall not be made, or commence until after completion of the Performance Period. Also notwithstanding anything contained in this Section to the
contrary, any election to defer payment of the Award Account balance under subsection (iii), (iv) or (v) shall be equal to 90% of the Award Account balance with the other 10% being paid
as soon as practicable after the end of the Performance Period or such earlier date applicable under Section VIII. Each Participant shall make an irrevocable election as to the desired form of
payment of his or her entire Award Account as soon as practicable after the date of the Award in accordance with procedures established by the Committee. If no deferral election is on file and except
as otherwise provided in this Section, awards will be paid in a lump sum as soon as practicable after completion of the Performance Period. If a Participant dies or incurs a Disability before
commencement of payment of the Participant's Award Account, the Award Account shall be determined in accordance with Section VIII, and payment shall be made in a single lump sum as soon as
practicable after completion of the Performance Period; provided, however, that the Participant or, if deceased, the Participant's Beneficiary may petition the Compensation Committee on the basis of
financial hardship to pay the Award Account as soon as practicable after the Participant's death or Disability. The Compensation Committee may grant such a petition if it determines on the basis of
the evidence submitted that such action is necessary to prevent financial hardship to the Participant or his/her heirs. 

2.    Section VIII. Vesting and Dollar Conversion  

        The first subsection of Section VIII is replaced in its entirety with the following, which supersedes and controls over any conflicting terms of the Plan: 

        General Rules:    Except as set forth below, a Participant shall be entitled to the amounts credited to his or her Award Account
during the Performance Period if the Participant is still employed by the 

Company or a Subsidiary on December 31, 2003; provided, however, that if the Participant is not employed on December 31, 2003 by reason of his Approved Retirement, the Participant shall
still be entitled to his or her Award Account after the performance adjustments required by Section V are effected for the Performance Period; provided, further, that if (before the end of the
Performance Period) the Participant dies or incurs a disability, the Participant or, if deceased, the Participant's Beneficiary shall become vested in the Award Account, and the Award Account shall be
determined based on the Participant's Base Salary for the period ending on the date of death or disability in accordance with the performance adjustments required by Section V, except that if
the Compensation Committee grants a petition for an immediate distribution on the basis of financial hardship pursuant to Section VII, the Award Account shall be determined based on the Target
Incentive Award, based on
the Participant's Base Salary for the period ending on the date of death or disability and without giving effect to the performance adjustments otherwise required by Section V. 

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Exhibit 10.18(i)

First Amendment to the Anthem 2001-2003 Long-Term Incentive Plan April 25, 2002EXHIBIT 10-o-2

 

Amended schedule

of Executives of the Company who are a party to a Change of Control Agreement:

 

1.               C. M. Jones

2.               B. M. Abzug

3.               G. R. Chadick

4.               R. M. Chiusano

5.               G. S. Churchill

6.               L.A. Erickson

7.               J. J. Gaspar

8.               H. M. Reininga

9.               W. J. RichterExhibit 10-p-1

 

 

 

 

$500,000,000

 

 

364-DAY

CREDIT

AGREEMENT

 

 

dated

as of May 29, 2002

 

 

among

 

 

Rockwell

Collins, Inc.,

 

The

Banks Listed Herein,

 

JPMorgan

Chase Bank,

as

Agent

 

Bank

of America, N.A.,

as

Syndication Agent

 

and

 

UBS

AG, Stamford Branch,

Bank

One, NA (Main Office Chicago),

Wachovia

Bank, National Association,

as

Co-Documentation Agents

 

 

J.P.

Morgan Securities Inc.,

Lead

Arranger and Sole Bookrunner

 

 

 

	

  TABLE OF CONTENTS

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

  Article 1

  	

   

  
	

  Definitions

  	

   

  
	

   

  	

   

  
	

  Section 1.01.  Definitions

  	

   

  
	

  Section

  1.02. Accounting Terms and Determinations

  	

   

  
	

  Section 1.03. Types

  of Borrowings

  	

   

  
	

  Article 2

  	

   

  
	

  The Credits

  	

   

  
	

   

  	

   

  
	

  Section 2.01. Commitments

  to Lend

  	

   

  
	

  Section

  2.02. Notice of Committed Borrowing

  	

   

  
	

  Section 2.03. Competitive

  Bid Borrowings

  	

   

  
	

  Section

  2.04. Notice to Banks; Funding of Loans

  	

   

  
	

  Section

  2.05. Notes

  	

   

  
	

  Section 2.06. Maturity

  of Loans

  	

   

  
	

  Section 2.07. Interest

  Rates

  	

   

  
	

  Section

  2.08. Method of Electing Interest Rates

  	

   

  
	

  Section 2.09. Facility

  Fee

  	

   

  
	

  Section

  2.10. Optional Termination or Reduction of Commitments

  	

   

  
	

  Section

  2.11. Scheduled Termination of Commitments

  	

   

  
	

  Section 2.12. Optional

  Prepayments

  	

   

  
	

  Section

  2.13. General Provisions as to Payments

  	

   

  
	

  Section 2.14. Funding

  Losses

  	

   

  
	

  Section

  2.15. Computation of Interest and Fees

  	

   

  
	

  Section 2.16. Regulation

  D Compensation

  	

   

  
	

  Section

  2.17. Commitment Increase; Additional Banks

  	

   

  
	

  Section 2.18. Letters of

  Credit.

  	

   

  
	

   

  	

   

  
	

  Article 3

  	

   

  
	

  Conditions

  	

   

  
	

   

  	

   

  
	

  Section 3.01. Effectiveness

  	

   

  
	

  Section

  3.02. Borrowings and Issuances of Letters of Credit

  	

   

  
	

   

  	

   

  
	

  Article 4

  	

   

  
	

  Representations and Warranties

  	

   

  
	

   

  	

   

  
	

  Section

  4.01. Corporate Existence and Power

  	

   

  
	

  Section

  4.02. Corporate and Governmental Authorization; No

  Contravention

  	

   

  
	

  Section 4.03. Binding

  Effect

  	

   

  
	

  Section 4.04. Financial

  Information

  	

   

  
	

  Section

  4.05. Litigation

  	

   

  
	

  Section 4.06. Environmental

  Matters

  	

   

  

 

i

 

	

  Article 5

  	

   

  
	

  Covenants

  	

   

  
	

   

  	

   

  
	

  Section 5.01. Information

  	

   

  
	

  Section 5.02. Maintenance

  of Existence

  	

   

  
	

  Section 5.03. Compliance

  with Laws

  	

   

  
	

  Section 5.04. Use

  of Proceeds

  	

   

  
	

  Section 5.05. Debt

  to Capitalization

  	

   

  
	

  Section

  5.06. Mergers, Consolidations and Sales of Assets

  	

   

  
	

  Section 5.07. Limitations

  on Liens

  	

   

  
	

  Section

  5.08. Limitations on Sale and Lease-Back

  	

   

  
	

  Section

  5.09. Limitations on Change in Subsidiary Status

  	

   

  
	

   

  	

   

  
	

  Article 6

  	

   

  
	

  Defaults

  	

   

  
	

   

  	

   

  
	

  Section 6.01. Events

  of Default

  	

   

  
	

  Section 6.02. Notice

  of Default

  	

   

  
	

  Section

  6.03. Cash Cover

  	

   

  
	

   

  	

   

  
	

  Article 7

  	

   

  
	

  The Agent

  	

   

  
	

   

  	

   

  
	

  Section

  7.01. Appointment and Authorization

  	

   

  
	

  Section 7.02. Agent

  and Affiliates

  	

   

  
	

  Section 7.03. Action

  by Agent

  	

   

  
	

  Section 7.04. Consultation

  with Experts

  	

   

  
	

  Section 7.05. Liability

  of Agent

  	

   

  
	

  Section 7.06. Indemnification

  	

   

  
	

  Section 7.07. Credit

  Decision

  	

   

  
	

  Section 7.08. Successor

  Agent

  	

   

  
	

  Section

  7.09. Agent’s Fee

  	

   

  
	

   

  	

   

  
	

  Article 8

  	

   

  
	

  Change in Circumstances

  	

   

  
	

   

  	

   

  
	

  Section

  8.01. Basis for Determining Interest Rate Inadequate or

  Unfair

  	

   

  
	

  Section

  8.02. Illegality

  	

   

  
	

  Section

  8.03. Increased Cost and Reduced Return

  	

   

  
	

  Section

  8.04. Taxes

  	

   

  
	

  Section

  8.05. Base Rate Loans Substituted for Affected Fixed Rate

  Loans

  	

   

  
	

   

  	

   

  
	

  Article 9

  	

   

  
	

  Miscellaneous

  	

   

  
	

   

  	

   

  
	

  Section

  9.01. Notices

  	

   

  
	

  Section

  9.02. No Waivers

  	

   

  
	

  Section 9.03. Expenses;

  Indemnification

  	

   

  

 

ii

 

	

  Section 9.04. Sharing

  of Set-offs

  	

   

  
	

  Section 9.05. Amendments

  and Waivers

  	

   

  
	

  Section 9.06. Successors

  and Assigns

  	

   

  
	

  Section 9.07. Designated

  Banks

  	

   

  
	

  Section

  9.08. Collateral

  	

   

  
	

  Section

  9.09. Governing Law; Submission to Jurisdiction

  	

   

  
	

  Section 9.10. Counterparts;

  Integration

  	

   

  
	

  Section 9.11. Waiver

  of Jury Trial

  	

   

  
	

  Section 9.12. Confidentiality

  	

   

  

 

Pricing

Schedule

 

Exhibit

A –   Note

Exhibit

B –   Competitive Bid Quote

Request

Exhibit

C –   Invitation for Competitive

Bid Quotes

Exhibit

D –   Competitive Bid Quote

Exhibit

E –   Opinion of General Counsel

of the Company

Exhibit

F –   Opinion of Special Counsel

for the Agent

Exhibit

G –   Assignment and Assumption

Agreement

Exhibit

H –   Designation Agreement

 

iii

 

364-DAY

CREDIT AGREEMENT

AGREEMENT dated as of May 29, 2002 among ROCKWELL COLLINS, INC.,

the BANKS listed on the signature pages hereof and JPMORGAN CHASE BANK, as

Agent.

The parties hereto agree as follows:

ARTICLE

1

Definitions

Section 1.01.  Definitions.  The following terms, as used herein, have the following meanings:

“Absolute Rate Auction”

means a solicitation of Competitive Bid Quotes setting forth Competitive Bid

Absolute Rates pursuant to Section 2.03.

“Additional Bank” means

any financial institution that becomes a Bank for purposes hereof in connection

with an increase in the aggregate amount of the Commitments pursuant to Section

2.17.

“Administrative Questionnaire”

means, with respect to each Bank, an administrative questionnaire in the form

prepared by the Agent and submitted to the Agent (with a copy to the Company)

duly completed by such Bank.

“Agent” means JPMorgan

Chase Bank in its capacity as agent for the Banks hereunder, and its successors

in such capacity.

“Applicable Lending Office”

means, with respect to any Bank, (i) in the case of its Base Rate Loans, its

Domestic Lending Office, (ii) in the case of its Euro–Dollar Loans, its

Euro–Dollar Lending Office and (iii) in the case of its Competitive Bid

Loans, its Competitive Bid Lending Office.

“Approved Fund” means any

Fund that is administered or managed by (i) a Bank, (ii) an affiliate of a Bank

or (iii) an entity or an affiliate of an entity that administers or manages a

Bank.

“Assignee” has the meaning

set forth in Section 9.06(c).

“Bank” means each bank or

other institution listed on the signature pages hereof, each Additional Bank,

each Assignee which becomes a Bank pursuant to Section 9.06(c), and their

respective successors.

 

1

 

“Base Rate” means, for any

day, a rate per annum equal to the higher of (i) the Prime Rate for such day

and (ii) the sum of 2 of 1% plus the

Federal Funds Rate for such day.

“Base Rate Loan” means a

Committed Loan that bears interest at the Base Rate pursuant to the applicable

Notice of Committed Borrowing or Notice of Interest Rate Election, Section

2.18(c)(ii) or Article 8.

“Borrowing” has the

meaning set forth in Section 1.03.

“Commission” means the

Securities and Exchange Commission, or any successor to its duties under the

Securities Exchange Act of 1934.

“Commitment” means (i)

with respect to each Bank, the amount set forth opposite the name of such Bank

on the signature pages hereof, (ii) with respect to each Additional Bank which

becomes a Bank pursuant to Section 2.17, the amount of the Commitment thereby

assumed by it or (iii) with respect to any Assignee, the amount of the

transferor Bank’s Commitment assigned to such Assignee pursuant to Section

9.06(c), in each case as such amount may be reduced from time to time pursuant

to Section 2.10, increased from time to time pursuant to Section 2.17 or

changed as a result of an assignment pursuant to Section 9.06(c).

“Committed Loan” means a

Revolving Credit Loan or a Term Loan; provided

that, if any such loan or loans (or portions thereof) are combined or

subdivided pursuant to a Notice of Interest Rate Election, the term “Committed

Loan” shall refer to the combined principal amount resulting from such

combination or to each of the separate principal amounts resulting from such

subdivision, as the case may be.

“Company” means Rockwell

Collins, Inc., a Delaware corporation and its successors.

“Competitive Bid Absolute Rate”

has the meaning set forth in Section 2.03(d).

“Competitive Bid Absolute Rate Loan”

means a loan made or to be made by a Bank pursuant to an Absolute Rate Auction.

“Competitive Bid Lending Office”

means, as to each Bank, its Domestic Lending Office or such other office,

branch or affiliate of such Bank as it may hereafter designate as its

Competitive Bid Lending Office by notice to the Company and the Agent; provided that any Bank may from time to

time by notice to the Company and the Agent designate separate Competitive Bid

Lending Offices for its Competitive Bid LIBOR Loans, on the one hand, and its

Competitive Bid Absolute Rate Loans, on the other hand, in which case all

references herein to the Competitive Bid Lending Office of such Bank shall be

deemed to refer to either or both of such offices, as the context may require.

2

 

“Competitive Bid LIBOR Loan”

means a loan made or to be made by a Bank pursuant to a LIBOR Auction (including

such a loan bearing interest at the Base Rate pursuant to Section 8.01(a)).

“Competitive Bid Loan”

means a Competitive Bid LIBOR Loan or a Competitive Bid Absolute Rate Loan.

“Competitive Bid Margin”

has the meaning set forth in Section 2.03(d).

“Competitive Bid Quote”

means an offer by a Bank to make a Competitive Bid Loan in accordance with

Section 2.03.

“Consolidated Debt” means,

at any date, the Debt of the Company and its Restricted Subsidiaries, as

consolidated and determined as of such date in accordance with GAAP.

“Consolidated Funded Debt”

means, at any date, the Funded Debt of the Company and its Restricted

Subsidiaries, as consolidated and determined as of such date in accordance with

GAAP.

“Consolidated Subsidiary”

means, as to any Person, at any date any Subsidiary or other entity the

accounts of which would be consolidated with those of such Person in its

consolidated financial statements if such statements were prepared as of such

date.

“Debt” of any Person

means, at any date, without duplication, (i) all obligations of such Person for

borrowed money, (ii) all obligations of such Person evidenced by bonds,

debentures, notes or other similar instruments, (iii) all obligations of such

Person to pay the deferred purchase price of property or services, except trade

accounts payable arising in the ordinary course of business, (iv) all

obligations of such Person as lessee which are capitalized in accordance with

GAAP, (v) all non-contingent obligations of such Person to reimburse any bank

or other Person in respect of amounts paid under a letter of credit or similar

instrument, (vi) all Debt secured by a Lien on any asset of such Person,

whether or not such Debt is otherwise an obligation of such Person, and (vii)

all Guarantees by such Person of Debt of another Person (each such Guarantee to

constitute Debt in an amount equal to the amount of such other Person’s Debt

Guaranteed thereby).

“Default” means any

condition or event which constitutes an Event of Default or which with the

giving of notice or lapse of time or both would, unless cured or waived, become

an Event of Default.

“Designated Bank” means,

with respect to any Designating Bank, an Eligible Designee designated by it

pursuant to Section 9.07(a) as a Designated Bank for purposes of this

Agreement.

3

 

“Designating Bank” means,

with respect to each Designated Bank, the Bank that designated such Designated

Bank pursuant to Section 9.07(a).

“Domestic Business Day”

means any day except a Saturday, Sunday or other day on which commercial banks

in New York City are authorized by law to close.

“Domestic Lending Office”

means, as to each Bank, its office located at its address set forth in its

Administrative Questionnaire (or identified in its Administrative Questionnaire

as its Domestic Lending Office) or such other office as such Bank may hereafter

designate as its Domestic Lending Office by notice to the Company and the

Agent.

“Effective Date” means the

date this Agreement becomes effective in accordance with Section 3.01.

“Eligible Designee” means

a special purpose corporation that (i) is organized under the laws of the

United States or any state thereof, (ii) is engaged in making, purchasing or

otherwise investing in commercial loans in the ordinary course of its business

and (iii) issues (or the parent of which issues) commercial paper rated at

least A-1 or the equivalent thereof by S&P or at least P-1 or the

equivalent thereof by Moody’s.

“Environmental Laws” means

any and all federal, state, local and foreign statutes, laws, judicial

decisions, regulations, ordinances, rules, judgments, orders, decrees, plans,

injunctions, permits, concessions, grants, franchises, licenses, agreements and

other governmental restrictions relating to the environment or the effect of

the environment on human health or to emissions, discharges or releases of

pollutants, contaminants, Hazardous Substances or wastes into the environment,

including (without limitation) ambient air, surface water, ground water or land,

or otherwise relating to the manufacture, processing, distribution, use,

treatment, storage, disposal, transport or handling of pollutants,

contaminants, Hazardous Substances or wastes or the clean–up or other

remediation thereof.

“ERISA” means the Employee

Retirement Income Security Act of 1974, as amended, or any successor statute.

“Euro–Dollar Business Day”

means any Domestic Business Day on which commercial banks are open for

international business (including dealings in dollar deposits) in London.

“Euro–Dollar Lending Office”

means, as to each Bank, its office, branch or affiliate located at its address

set forth in its Administrative Questionnaire (or identified in its

Administrative Questionnaire as its Euro–Dollar Lending Office) or such

other office, branch or affiliate of such Bank as it may hereafter designate as

its Euro–Dollar Lending Office by notice to the Company and the Agent.

4

 

“Euro–Dollar Loan”

means a Committed Loan that bears interest at a Euro–Dollar Rate pursuant

to the applicable Notice of Committed Borrowing or Notice of Interest Rate

Election.

“Euro–Dollar Margin”

has the meaning set forth in Section 2.07(b).

“Euro-Dollar Rate” means a

rate of interest determined pursuant to Section 2.07(b) on the basis of the

London Interbank Offered Rate.

“Euro–Dollar Reference Banks”

means the principal London offices of JPMorgan Chase Bank, Bank of America,

N.A. and Citibank, N.A., and “Euro–Dollar Reference Bank” means any of

the foregoing.

“Euro–Dollar Reserve Percentage”

has the meaning set forth in Section 2.16.

“Events of Default” has

the meaning set forth in Section 6.01.

“Federal Funds Rate”

means, for any day, the rate per annum (rounded upward, if necessary, to the

nearest 1/100th of 1%) 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 Domestic Business Day next succeeding such day, provided that (i) if such day is not a

Domestic Business Day, the Federal Funds Rate for such day shall be such rate

on such transactions on the next preceding Domestic Business Day as so

published on the next succeeding Domestic Business Day, and (ii) if no such

rate is so published on such next succeeding Domestic Business Day, the Federal

Funds Rate for such day shall be the average rate quoted to JPMorgan Chase Bank

on such day on such transactions as determined by the Agent.

“Final Maturity Date”

means the first anniversary of the Termination Date or, if such day is not a

Euro-Dollar Business Day, the next preceding Euro-Dollar Business Day.

“Fixed Rate Loans” means

Euro–Dollar Loans or Competitive Bid Loans (excluding Competitive Bid

LIBOR Loans bearing interest at the Base Rate pursuant to Section 8.01(a)) or

any combination of the foregoing.

“Fully Drawn Margin” means

at any date, the Euro-Dollar Margin applicable at such date under the Pricing

Schedule assuming Usage greater than 50%.

“Fund” means any Person

(other than a natural Person) that is (or will be) engaged in making,

purchasing, holding or otherwise investing in commercial loans and similar

extensions of credit in the ordinary course of its business.

5

 

“Funded Debt” of any

Person means, at any date of computation, all indebtedness for borrowed money

of such Person which by its terms matures more than 12 months after such date

or which is extendible or renewable at the option of such Person to a time more

than 12 months after such date; provided,

however, that (i) Funded Debt

shall include all obligations in respect of lease rentals which under GAAP

appear on a balance sheet of such Person as a liability item other than a current

liability, (ii) in the case of the Company, Funded Debt shall not include

Subordinated Debt and (iii) outstanding preferred stock of a Restricted

Subsidiary that is not owned by the Company or a Wholly-Owned Restricted

Subsidiary shall be deemed to constitute a principal amount of Funded Debt

equal to the par value or involuntary liquidation value, whichever amount is

higher, of such preferred stock.

“GAAP” means generally

accepted accounting principles as in effect from time to time, applied on a basis

consistent (except for changes concurred in by the Company’s independent public

accountants) with the most recent audited consolidated financial statements of

the Company and its Consolidated Subsidiaries delivered to the Banks.

“Group of Loans” means, at

any time, a group of Loans consisting of (i) all Committed Loans which are Base

Rate Loans at such time or (ii) all Euro-Dollar Loans having the same Interest

Period at such time; provided

that, if a Committed Loan of any particular Bank is converted to or made as a

Base Rate Loan pursuant to Article 8, such Loan shall be included in the same

Group or Groups of Loans from time to time as it would have been in if it had

not been so converted or made.

“Guarantee” by any Person

means any obligation, contingent or otherwise, of such Person directly or

indirectly guaranteeing any Debt of any other Person; provided that the term “Guarantee” shall not include endorsements

for collection or deposit in the ordinary course of business.  The term “Guarantee”

used as a verb has a corresponding meaning.

“Hazardous Substances”

means any toxic, radioactive, caustic or otherwise hazardous substance,

including petroleum, its derivatives and by–products and other

hydrocarbons, or any substance having any constituent elements displaying any

of the foregoing characteristics.

“Indemnitee” has the

meaning set forth in Section 9.03(b).

“Interest Period” means:

(1) with respect to each Euro–Dollar Loan, the period commencing on the

date of borrowing specified in the applicable Notice of Borrowing or on the

date specified in an applicable Notice of Interest Rate Election and ending

one, two, three or six months thereafter, as the Company may elect in such

notice; provided that:

6

 

(a)           any

Interest Period which would otherwise end on a day which is not a Euro–Dollar

Business Day shall be extended to the next succeeding Euro–Dollar

Business Day unless such Euro–Dollar Business Day falls in another

calendar month, in which case such Interest Period shall end on the next

preceding Euro–Dollar Business Day; and

(b)           any

Interest Period which begins on the last Euro–Dollar 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

Euro–Dollar Business Day of a calendar month;

                (2)

          with respect to each Competitive

Bid LIBOR Borrowing, the period commencing on the date of borrowing specified

in the applicable Notice of Borrowing and ending such whole number of months

thereafter as the Company may elect in accordance with Section 2.03; provided that:

(a)           any

Interest Period which would otherwise end on a day which is not a Euro–Dollar

Business Day shall be extended to the next succeeding Euro–Dollar

Business Day unless such Euro–Dollar Business Day falls in another

calendar month, in which case such Interest Period shall end on the next

preceding Euro–Dollar Business Day; and

(b)           any

Interest Period which begins on the last Euro–Dollar 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

Euro–Dollar Business Day of a calendar month;

                (3)

          with respect to each Competitive

Bid Absolute Rate Borrowing, the period commencing on the date of borrowing

specified in the applicable Notice of Borrowing and ending such number of days

thereafter (but not less than 7 days) as the Company may elect in accordance

with Section 2.03; provided that

any Interest Period which would otherwise end on a day which is not a Euro–Dollar

Business Day shall be extended to the next succeeding Euro–Dollar

Business Day;

provided further that:

(x)            no

Interest Period applicable to any Revolving Credit Loan or Competitive Bid Loan

may end after the Termination Date; and

(y)           no

Interest Period applicable to any Term Loan may end after the Final Maturity

Date.

“Internal Revenue Code”

means the Internal Revenue Code of 1986, as amended, or any successor statute.

 

7

 

“Issuing Bank” means

JPMorgan Chase Bank or any other Bank designated by the Company, in its

capacity as an issuer of any Letters of Credit hereunder, that may agree to

issue letters of credit hereunder pursuant to an instrument in form reasonably

satisfactory to the Agent.

“Letter of Credit” means a

letter of credit to be issued hereunder by an Issuing Bank.

“Letter of Credit Liabilities”

means, for any Bank and at any time, such Bank’s ratable participation in the

sum of (x) the aggregate amount then owing by the Company in respect of amounts

paid by the Issuing Bank upon a drawing under a Letter of Credit issued

hereunder and (y) the aggregate amount then available for drawing under all outstanding

Letters of Credit.

“LIBOR Auction” means a

solicitation of Competitive Bid Quotes setting forth Competitive Bid Margins

based on the London Interbank Offered Rate pursuant to Section 2.03.

“Lien” means, with respect

to any asset, any mortgage, lien, pledge, charge, security interest or

encumbrance of any kind, or any other type of preferential arrangement that has

substantially the same practical effect as a security interest, in respect of

such asset.  For purposes hereof, the

Company or any Subsidiary shall be deemed to own subject to a Lien any asset

which it has acquired or holds subject to the interest of a vendor or lessor

under any conditional sale agreement, capital lease or other title retention

agreement relating to such asset.

“Loan” means a Committed

Loan or a Competitive Bid Loan and “Loans”

means Committed Loans or Competitive Bid Loans or any combination of the

foregoing.

“London Interbank Offered Rate”

has the meaning set forth in Section 2.07(b).

“Material Debt” means a

Single Issue (other than the Notes) of the Company and/or one or more of its

Subsidiaries in a principal amount exceeding $50,000,000.

“Notes” means promissory

notes of the Company, substantially in the form of Exhibit A hereto, evidencing

the obligation of the Company to repay the Loans, and “Note” means any one of such promissory

notes issued hereunder.

“Notice of Borrowing”

means a Notice of Committed Borrowing (as defined in Section 2.02) or a Notice

of Competitive Bid Borrowing (as defined in Section 2.03(f)).

“Notice of Interest Rate Election”

has the meaning specified in Section 2.09.

 

8

 

“Parent” means, with

respect to any Bank, any Person controlling such Bank.

“Participant” has the

meaning set forth in Section 9.06(b).

“Percentage” means, with

respect to any Bank at any time, the percentage which the amount of its

Commitment at such time represents of the aggregate amount of all the

Commitments at such time.  At any time

after the Commitments shall have terminated, the term “Percentage” shall refer to a Bank’s

Percentage immediately before such termination, adjusted to reflect any

subsequent assignments pursuant to Section 9.06(c).

“Person” means an

individual, a corporation, a partnership, an association, a trust or any other

entity or organization, including a government or political subdivision or an

agency or instrumentality thereof.

“Pricing Schedule” means

the Schedule attached hereto identified as such.

“Prime Rate” means the

rate of interest publicly announced by JPMorgan Chase Bank from time to time as

its Prime Rate.

“Principal Property” means

any real property (including buildings and other improvements) of the Company

or any Restricted Subsidiary whether currently owned or hereafter acquired

(other than any property hereafter acquired for the control or abatement of

atmospheric pollutants or contaminants or water, noise, odor or other

pollution, or for purposes of developing a cogeneration facility or a small

power production facility as such terms are defined in the Public Utility

Regulatory Policies Act of 1978, as amended) which (i) has, at any date of

determination, a book value in excess of 5% of Shareowners’ Equity and (ii) in

the opinion of the board of directors of the Company (or any duly authorized

committee thereof) is of material importance to the total business conducted by

the Company and its Restricted Subsidiaries as a whole.

“Quarterly Payment Dates”

means each March 31, June 30, September 30 and December 31.

“Regulation T, U or X”

means Regulation T, U or X of the Board of Governors of the Federal Reserve

System, as in effect from time to time.

“Reimbursement Obligation”

has the meaning specified in Section 2.18(c).

“Required Banks” means at

any time Banks having more than 50% of the aggregate amount of the Commitments

or, if the Commitments shall have been terminated, holding more than 50% of the

aggregate unpaid principal amount of the Loans.

 

9

 

“Restricted Subsidiary”

means any Subsidiary of the Company other than an Unrestricted Subsidiary.

“Revolving Credit Loan”

means a loan made by a Bank pursuant to Section 2.01(a).

“Revolving Credit Period”

means the period from and including the Effective Date to but excluding the

Termination Date.

“SEC” means the Securities

and Exchange Commission.

“Secured Debt” means

indebtedness for borrowed money of the Company or a Restricted Subsidiary

(other than indebtedness owed by a Restricted Subsidiary to the Company, by a

Restricted Subsidiary to another Restricted Subsidiary or by the Company to a

Restricted Subsidiary), which is secured by (a) a mortgage or other lien on any

Principal Property of the Company or a Restricted Subsidiary or (b) a pledge,

lien or other security interest on any shares of stock or indebtedness of a

Restricted Subsidiary.  The amount of

Secured Debt at any time outstanding shall be the amount then owing thereon by

the Company or a Restricted Subsidiary.

“Shareowners’ Equity”

means, at any date of computation, the aggregate of capital stock, capital

surplus and earned surplus, after deducting the cost of shares of capital stock

of the Company held in its treasury, of the Company and its Restricted

Subsidiaries, as consolidated and determined in accordance with GAAP.

“Sale and Lease-Back Transaction”

has the meaning specified in Section 5.08.

“Single Issue” means

indebtedness for borrowed money arising in a single transaction or a series of

related transactions.  Indebtedness

issued in discrete offerings but governed by a single shelf indenture shall not

be aggregated as a Single Issue, but indebtedness owing to multiple lenders

under parallel agreements comprising a single private placement and

indebtedness arising from multiple takedowns under a single or a series of

related commitments from one or more lenders shall be so aggregated.

“Subordinated Debt” means

any unsecured Debt of the Company which: (1) has a final maturity subsequent to

the Final Maturity Date; (2) does not provide for mandatory payment or

retirement prior to said date, whether by means of serial maturities or sinking

fund or other analogous provisions or plan, fixed or contingent, requiring, or

which on the happening of a contingency may require, the payment or retirement

of such Debt in amounts which as of any particular time would aggregate more

than such portion of the original principal amount thereof as is obtained by

multiplying such original principal amount by a fraction the numerator of which

shall be the

 

10

 

number of months elapsed from the date of creation of such Debt to such

time and the denominator of which shall be the number of months from the date

of creation thereof to the final maturity thereof; and (3) is expressly made

subordinate and junior in right of payment to the Loans and such other Debt of

the Company (except other Subordinated Debt) as may be specified in the

instruments evidencing the Subordinated Debt or the indenture or other similar

instrument under which it is issued (which indenture or other instrument shall

be binding on all holders of such Subordinated Debt).

“Subsidiary” means, as to

any Person, any corporation or other entity of which securities or other

ownership interests having ordinary voting power to elect a majority of the

board of directors or other persons performing similar functions are at the

time directly or indirectly owned by such Person; unless otherwise specified, “Subsidiary” means a Subsidiary of the

Company.

“Termination Date” means

May 28, 2003, or, if such day is not a Euro-Dollar Business Day, the next

preceding Euro-Dollar Business Day.

“Term Loan” means a loan

made by a Bank pursuant to Section 2.01(b).

“Total Capitalization”

means, at any date, the sum (without duplication) of (i) Consolidated Debt as

of such date and (ii) all preferred stock of the Company and its Restricted

Subsidiaries and the consolidated shareowners’ equity of the Company and its

Restricted Subsidiaries as of the date of the Company’s most recent financial

statements referred to in Section 4.04 or delivered pursuant to Section 5.01.

“Total Outstanding Amount”

means, at any time, the sum of (i) the aggregate outstanding principal amount

of the Loans (including both Committed Loans and Competitive Bid Loans)

determined at such time after giving effect, if one or more Loans are being

made at such time, to any substantially concurrent application of the proceeds

thereof to repay one or more other Loans plus, without duplication, (ii) the

aggregate amount of the Letter of Credit Liabilities of all Banks at such time.

“United States” means the

United States of America, including the States and the District of Columbia,

but excluding its territories and possessions.

“Unrestricted Subsidiary”

means (a) any Subsidiary which, in accordance with the provisions of this

Agreement, has been designated by the Company as an Unrestricted Subsidiary

after the Effective Date, unless and until such Subsidiary shall, in accordance

with the provisions of this Agreement, be designated by the Company as a Restricted

Subsidiary; and (b) any corporation of which any one or more Unrestricted

Subsidiaries directly or indirectly own outstanding shares of capital stock

having voting power sufficient to elect, under ordinary circumstances (not

dependent upon the happening of a contingency), a majority of the directors.

“Wholly-Owned Restricted Subsidiary”

means a Restricted Subsidiary all of the outstanding capital stock of which,

other than directors’ qualifying

 

11

 

shares, and all of the Funded Debt of which, shall at the time be owned

by the Company or by one or more Wholly-Owned Restricted Subsidiaries, or by

the Company in conjunction with one or more Wholly-Owned Restricted

Subsidiaries.

Section 1.02. Accounting Terms and Determinations.  Unless otherwise specified herein, all

accounting terms used herein shall be interpreted, all accounting

determinations hereunder shall be made, and all financial statements required

to be delivered hereunder shall be prepared in accordance with GAAP.

Section 1.03. Types of Borrowings.  The term “Borrowing”

denotes the aggregation of Loans of one or more Banks to be made to the Company

pursuant to Article 2 on a single date, all of which Loans are of the same type

(subject to Article 8) and, except in the case of Base Rate Loans, have the

same initial Interest Period. 

Borrowings are classified for purposes of this Agreement either by

reference to the pricing of Loans comprising such Borrowing (e.g., a “Euro–Dollar

Borrowing” is a Borrowing comprised of Euro–Dollar Loans) or

by reference to the provisions of Article 2 under which participation therein

is determined (i.e., a “Committed 

Borrowing” is a Borrowing under Section 2.01 in which all

Banks participate in proportion to their Commitments, while a “Competitive Bid Borrowing” is a Borrowing

under Section 2.03 in which the Bank participants are determined on the basis

of their bids in accordance therewith).

ARTICLE

2

The Credits

Section 2.01. Commitments to Lend.  (a) During the Revolving Credit Period each

Bank severally agrees, on the terms and conditions set forth in this Agreement,

to make loans to the Company pursuant to this Section from time to time in

amounts such that (i) the aggregate principal amount of Committed Loans by such

Bank at any one time outstanding plus the aggregate amount of its Letter of

Credit Liabilities at such time shall not exceed the amount of its Commitment

and (ii) the Total Outstanding Amount shall not exceed the aggregate amount of

the Commitments.  Within the foregoing

limits, the Company may borrow under this Section 2.01(a), repay, or to the

extent permitted by Section 2.12, prepay Loans and reborrow at any time during

the Revolving Credit Period under this Section 2.01(a).

(b)   Each Bank severally agrees, on the terms and

conditions set forth in this Agreement, to make a loan to the Company on the

Termination Date in an amount up to but not exceeding the amount of its

Commitment.  Amounts of any Loans made

pursuant to this Section 2.01(b) which are prepaid pursuant to Section 2.12

shall not be reborrowed.

(c)   Each Borrowing under this Section 2.01 shall

be in an aggregate principal amount of $25,000,000  or any larger multiple of $1,000,000 (except

 

12

 

that any such Borrowing may

be in the aggregate amount available in accordance with Section 3.02(b)) and

shall be made from the several Banks ratably in proportion to their respective

Commitments.

Section 2.02. Notice of Committed Borrowing.  The Company shall give the Agent notice (a “Notice of Committed Borrowing”) not later

than 10:30 A.M. (New York City time) on (x) the date of each Base Rate

Borrowing and (y) the third Euro–Dollar Business Day before each

Euro–Dollar Borrowing, specifying:

(a)   the date of such Borrowing, which shall be a

Domestic Business Day in the case of a Base Rate Borrowing or a Euro–Dollar

Business Day in the case of a Euro–Dollar Borrowing,

(b)   the aggregate amount of such Borrowing,

(c)   whether the Loans comprising such Borrowing

are to bear interest initially at the Base Rate or a Euro–Dollar Rate,

and

(d)   in the case of a Euro–Dollar Borrowing,

the duration of the initial Interest Period applicable thereto, subject to the

provisions of the definition of Interest Period.

Section 2.03. Competitive Bid Borrowings.  (a) The

Competitive Bid Option.  In

addition to Committed Borrowings pursuant to Section 2.01, the Company may, as

set forth in this Section, request the Banks during the Revolving Credit Period

to make offers to make Competitive Bid Loans to the Company.  The Banks may, but shall have no obligation

to, make such offers and the Company may, but shall have no obligation to,

accept any such offers in the manner set forth in this Section.

(b)   Competitive

Bid Quote Request.  When the

Company wishes to request offers to make Competitive Bid Loans under this

Section, it shall transmit to the Agent by telex or facsimile transmission a

Competitive Bid Quote Request substantially in the form of Exhibit B hereto so

as to be received no later than 10:30 A.M. (New York City time) on (x) the

fifth Euro–Dollar Business Day prior to the date of Borrowing proposed

therein, in the case of a LIBOR Auction or (y) the Domestic Business Day next

preceding the date of Borrowing proposed therein, in the case of an Absolute

Rate Auction (or, in either case, such other time or date as the Company and

the Agent shall have mutually agreed and shall have notified to the Banks not

later than the date of the Competitive Bid Quote Request for the first LIBOR

Auction or Absolute Rate Auction for which such change is to be effective)

specifying:

(i)    the proposed date of

Borrowing, which shall be a Euro–Dollar Business Day in the case of a

LIBOR Auction or a Domestic Business Day in the case of an Absolute Rate

Auction,

 

13

 

(ii)   the aggregate amount of

such Borrowing, which shall be $25,000,000 or a larger multiple of $1,000,000,

(iii)  the duration of the

Interest Period applicable thereto, subject to the provisions of the definition

of Interest Period, and

(iv)  whether the Competitive Bid

Quotes requested are to set forth a Competitive Bid Margin or a Competitive Bid

Absolute Rate.

The Company may request offers to make Competitive Bid Loans for more

than one Interest Period in a single Competitive Bid Quote Request.  No Competitive Bid Quote Request shall be

given within five Euro–Dollar Business Days (or such other number of days

as the Company and the Agent may agree) of any other Competitive Bid Quote Request.

(c)   Invitation

for Competitive Bid Quotes. 

Promptly upon receipt of a Competitive Bid Quote Request, the Agent

shall send to the Banks by telex or facsimile transmission an Invitation for

Competitive Bid Quotes substantially in the form of Exhibit C hereto, which

shall constitute an invitation by the Company to each Bank to submit

Competitive Bid Quotes offering to make the Competitive Bid Loans to which such

Competitive Bid Quote Request relates in accordance with this Section.

(d)   Submission

and Contents of Competitive Bid Quotes.  (i) Each Bank may submit a Competitive Bid Quote containing an

offer or offers to make Competitive Bid Loans in response to any Invitation for

Competitive Bid Quotes.  Each Competitive

Bid Quote must comply with the requirements of this subsection (d) and must be

submitted to the Agent by telex or facsimile transmission at its offices

specified in or pursuant to Section 9.01 not later than (x) 2:00 P.M. (New York

City time) on the fourth Euro–Dollar Business Day prior to the proposed

date of Borrowing, in the case of a LIBOR Auction or (y) 9:30 A.M. (New York

City time) on the proposed date of Borrowing, in the case of an Absolute Rate

Auction (or, in either case, such other time or date as the Company and the

Agent shall have mutually agreed and shall have notified to the Banks not later

than the date of the Competitive Bid Quote Request for the first LIBOR Auction

or Absolute Rate Auction for which such change is to be effective); provided that Competitive Bid Quotes

submitted by the Agent (or any affiliate of the Agent) in the capacity of a

Bank may be submitted, and may only be submitted, if the Agent or such

affiliate notifies the Company of the terms of the offer or offers contained

therein not later than (x) one hour prior to the deadline for the other Banks,

in the case of a LIBOR Auction or (y) 15 minutes prior to the deadline for the

other Banks, in the case of an Absolute Rate Auction.  Subject to Articles 3 and 6, any Competitive Bid Quote so made

shall be irrevocable except with the written consent of the Agent given on the

instructions of the Company.

(i)    Each Competitive Bid Quote

shall be in substantially the form of Exhibit D hereto and shall in any case

specify:

 

14

 

(A)  the proposed date of

Borrowing,

(B)   the principal amount of the

Competitive Bid Loan for which each such offer is being made, which principal

amount (w) may be greater than or less than the Commitment of the quoting Bank,

(x) must be $5,000,000 or a larger multiple of $1,000,000, (y) may not exceed

the principal amount of Competitive Bid Loans for which offers were requested

and (z) may be subject to an aggregate limitation as to the principal amount of

Competitive Bid Loans for which offers being made by such quoting Bank may be

accepted,

(C)   in the case of a LIBOR

Auction, the margin above or below the applicable London Interbank Offered Rate

(the “Competitive Bid Margin”)

offered for each such Competitive Bid Loan, expressed as a percentage (specified

to the nearest 1/10,000th of 1%) to be added to or subtracted from such base

rate,

(D)  in the case of an Absolute

Rate Auction, the rate of interest per annum (specified to the nearest

1/10,000th of 1%) (the “Competitive Bid

Absolute Rate”) offered for each such Competitive Bid Loan, and

(E)   the identity of the quoting

Bank.

A Competitive Bid Quote may set forth up to five separate offers by the

quoting Bank with respect to each Interest Period specified in the related

Invitation for Competitive Bid Quotes.

(ii)   Any Competitive Bid Quote

shall be disregarded if it:

(A)  is not substantially in

conformity with Exhibit D hereto or does not specify all of the information

required by subsection (d)(ii);

(B)   contains qualifying,

conditional or similar language;

(C)   proposes terms other than or

in addition to those set forth in the applicable Invitation for Competitive Bid

Quotes; or

(D)  arrives after the time set

forth in subsection (d)(i).

(e)   Notice to

Company.  The Agent shall

promptly notify the Company of the terms (x) of any Competitive Bid Quote

submitted by a Bank that is in accordance with subsection (d) and (y) of any

Competitive Bid Quote that amends, modifies or is otherwise inconsistent with a

previous Competitive Bid Quote

 

15

 

submitted by such Bank with

respect to the same Competitive Bid Quote Request.  Any such subsequent Competitive Bid Quote shall be disregarded by

the Agent unless such subsequent Competitive Bid Quote is submitted solely to correct

a manifest error in such former Competitive Bid Quote.  The Agent’s notice to the Company shall

specify (A) the aggregate principal amount of Competitive Bid Loans for which

offers have been received for each Interest Period specified in the related

Competitive Bid Quote Request, (B) the respective principal amounts and

Competitive Bid Margins or Competitive Bid Absolute Rates, as the case may be,

so offered and (C) if applicable, limitations on the aggregate principal amount

of Competitive Bid Loans for which offers in any single Competitive Bid Quote

may be accepted.

(f)    Acceptance

and Notice by Company.  Not

later than 10:30 A.M. (New York City time) on (x) the third Euro–Dollar

Business Day prior to the proposed date of Borrowing, in the case of a LIBOR

Auction or (y) the proposed date of Borrowing, in the case of an Absolute Rate

Auction (or, in either case, such other time or date as the Company and the

Agent shall have mutually agreed and shall have notified to the Banks not later

than the date of the Competitive Bid Quote Request for the first LIBOR Auction

or Absolute Rate Auction for which such change is to be effective), the Company

shall notify the Agent of its acceptance or non–acceptance of the offers

so notified to it pursuant to subsection 

(e).  In the case of acceptance,

such notice (a “Notice of Competitive Bid

Borrowing”) shall specify the aggregate principal amount of offers

for each Interest Period that are accepted. 

A failure by the Company to notify the Agent as aforesaid shall constitute

non-acceptance of the offers so notified to it.  The Company may accept any Competitive Bid Quote in whole or in

part; provided that:

(i)    the aggregate principal

amount of each Competitive Bid Borrowing may not exceed the applicable amount

set forth in the related Competitive Bid Quote Request,

(ii)   the principal amount of

each Competitive Bid Borrowing must be $25,000,000 or a larger multiple of

$1,000,000,

(iii)  acceptance of offers may

only be made on the basis of ascending Competitive Bid Margins or Competitive

Bid Absolute Rates, as the case may be,

(iv)  the Company may not accept

any offer that is described in subsection (d)(iii) or that otherwise fails to

comply with the requirements of this Agreement, and

(v)   immediately after such

Competitive Bid Borrowing is made the Total Outstanding Amount shall not exceed

the aggregate amount of the Commitments.

 

16

 

(g)   Allocation

by Agent.  If offers are made

by two or more Banks with the same Competitive Bid Margins or Competitive Bid

Absolute Rates, as the case may be, for a greater aggregate principal amount

than the amount in respect of which such offers are accepted for the related

Interest Period, the principal amount of Competitive Bid Loans in respect of

which such offers are accepted shall be allocated by the Agent among such Banks

as nearly as possible (in multiples of $1,000,000, as the Agent may deem

appropriate) in proportion to the aggregate principal amounts of such offers.  Determinations by the Agent of the amounts

of Competitive Bid Loans shall be conclusive in the absence of manifest error.

Section 2.04. Notice to Banks; Funding of Loans.  (a) Upon receipt of a Notice of Borrowing,

the Agent shall promptly notify each Bank of the contents thereof and of such

Bank’s share (if any) of such Borrowing and such Notice of Borrowing shall not

thereafter be revocable by the Company.

(b)   Not later than 12:00 Noon (New York City

time) on the date of each Borrowing, each Bank participating therein shall

(except as provided in subsection  (c)

of this Section) make available its share of such Borrowing, in Federal or

other funds immediately available in New York City, to the Agent at its address

referred to in .  Unless the Agent

determines that any applicable condition specified in Article 3 has not been

satisfied, the Agent will make the funds so received from the Banks available

to the Company at the Agent’s aforesaid address.

(c)   If any Bank makes a Term Loan hereunder on a

day on which the Company is to repay all or any part of an outstanding

Revolving Credit Loan from such Bank, such Bank shall apply the proceeds of its

Term Loan to make such repayment and only an amount equal to the difference (if

any) between the amount being borrowed and the amount being repaid shall be

made available by such Bank to the Agent as provided in subsection (b), or

remitted by the Company to the Agent as provided in Section 2.12, as the case

may be.

(d)   Unless the Agent shall have received notice

from a Bank prior to the date of any Borrowing (or, in the case of a Base Rate

Borrowing, prior to 12:00 Noon (New York City time) on the date of such

Borrowing) that such Bank will not make available to the Agent such Bank’s

share of such Borrowing, the Agent may assume that such Bank has made such

share available to the Agent on the date of such Borrowing in accordance with

subsections (b) and (c) of this Section 2.04 and the Agent may, in reliance

upon such assumption, make available to the Company on such date a corresponding

amount.  If and to the extent that such

Bank shall not have so made such share available to the Agent, such Bank and

the Company severally agree to repay to the Agent forthwith on demand such

corresponding amount together with interest thereon, for each day from the date

such amount is made available to the Company until the date such amount is

repaid to the Agent, at (i) in the case of the Company, a rate per annum equal

to the higher of the Federal Funds Rate and the interest rate applicable

thereto

 

17

 

pursuant to Section 2.07 and

(ii) in the case of such Bank, the Federal Funds Rate.  If such Bank shall repay to the Agent such

corresponding amount, such amount so repaid shall constitute such Bank’s Loan

included in such Borrowing for purposes of this Agreement.

Section 2.05. Notes.  (a) Each Bank may, by notice to the Company and the Agent,

request that (i) its Loans be evidenced by a single Note payable to the order

of such Bank for the account of its Applicable Lending Office in an amount

equal to the aggregate unpaid principal amount of such Bank’s Loans or (ii) its

Loans of a particular type or types be evidenced by a separate Note in an

amount equal to the aggregate unpaid principal amount of such Loans.  Each reference in this Agreement to the “Note” of such Bank shall be deemed to refer

to and include any or all of such Notes, as the context may require.

(b)   Upon receipt of each Bank’s Note pursuant to

Section 3.01(b), the Agent shall forward such Note to such Bank.  Each Bank shall record the date, amount,

type and maturity of each Loan made by it and the date and amount of each

payment of principal made by the Company with respect thereto, and may, if such

Bank so elects in connection with any transfer or enforcement of its Note,

endorse on the schedule forming a part thereof appropriate notations to

evidence the foregoing information with respect to each such Loan then

outstanding; provided that the

failure of any Bank to make, or any error in making, any such recordation or

endorsement shall not affect the obligations of the Company hereunder or under

the Notes.  Each Bank is hereby

irrevocably authorized by the Company so to endorse its Note and to attach to

and make a part of its Note a continuation of any such schedule as and when

required.  The Agent shall also record

the date, amount, type and maturity of each Loan made by any Bank hereunder and

the date and amount of each payment of principal made by the Company to the

Agent with respect thereto.

Section 2.06. Maturity of Loans.  (a) Each Revolving Credit Loan shall mature,

and the principal amount thereof shall be due and payable (together with

interest accrued thereon) on the Termination Date.

(b)   Each Term Loan shall mature, and the principal

amount thereof shall be due and payable (together with accrued interest

thereon) on the Final Maturity Date.

(c)   Each Competitive Bid Loan shall mature, and

the principal amount thereof shall be due and payable (together with accrued

interest thereon) on the last day of the Interest Period applicable thereto.

Section 2.07. Interest Rates.  (a) Each Base Rate Loan shall bear interest

on the outstanding principal amount thereof, for each day from the date such

Loan is made until it becomes due, at a rate per annum equal to the Base Rate

for such day.  Such interest shall be

payable at maturity, quarterly in arrears on each Quarterly Payment Date and,

with respect to the principal amount of any Base

 

18

 

Rate Loan that is prepaid or

converted to a Euro-Dollar Loan, on the date of such prepayment or

conversion.  Any overdue principal of or

interest on any Base Rate Loan shall bear interest, payable on demand, for each

day until paid at a rate per annum equal to the sum of 2% plus the rate

otherwise applicable to Base Rate Loans for such day.

(b)   Each Euro–Dollar Loan shall bear

interest on the outstanding principal amount thereof, for each day during each

Interest Period applicable thereto, at a rate per annum equal to the sum of the

Euro–Dollar Margin for such day plus the London Interbank Offered Rate

applicable to such Interest Period. 

Such interest shall be payable for each Interest Period on the last day

thereof and, if such Interest Period is longer than three months, at intervals

of three months after the first day thereof.

“Euro–Dollar Margin”

means a rate per annum determined in accordance with the Pricing Schedule.

The “London Interbank Offered Rate”

applicable to any Interest Period means the rate per annum appearing on the

Screen at approximately 11:00 a.m. (London time) two Euro–Dollar Business

Days before the first day of such Interest Period as the rate per annum for

deposits in dollars with a maturity comparable to such Interest Period.  If no rate appears on the Screen for the

necessary period, then the “London Interbank Offered Rate” with respect to such

Interest Period shall be the average (rounded upward, if necessary, to the next

higher 1/16 of 1%) of the respective rates per annum at which deposits in

dollars are offered by each of the Euro–Dollar Reference Banks in the

London interbank market at approximately 11:00 A.M. (London time) two Euro–Dollar

Business Days before the first day of such Interest Period in an amount

approximately equal to the principal amount of the Euro–Dollar Loan of

such Euro–Dollar Reference Bank to which such Interest Period is to apply

and for a period of time comparable to such Interest Period.

The “Screen” means

Telerate Page 3750; provided that

the Agent may nominate an alternative source of screen rates if such page is

replaced by another which displays rates for inter-bank deposits offered by

leading banks in London.

(c)   Any overdue principal of or interest on any

Euro–Dollar Loan shall bear interest, payable on demand, for each day

until paid at a rate per annum equal to the higher of (i) the sum of 2%

plus the Euro–Dollar Margin for such day plus the London Interbank

Offered Rate applicable to the Interest Period for such Loan and (ii) the

sum of 2% plus the Euro–Dollar Margin for such day plus the quotient

obtained (rounded upward, if necessary, to the next higher 1/100 of 1%) by

dividing (x) the average (rounded upward, if necessary, to the next higher 1/16

of 1%) of the respective rates per annum at which one day (or, if such amount

due remains unpaid more than three Euro–Dollar Business Days, then for

such other period of time not longer than six months as the Agent may select)

deposits in dollars in an amount approximately equal to such overdue payment

due to each of 

 

19

 

the Euro–Dollar

Reference Banks are offered by such Euro–Dollar Reference Bank in the

London interbank market for the applicable period determined as provided above

by (y) 1.00 minus the Euro–Dollar Reserve Percentage (or, if the

circumstances described in clause (a) or (b) of Section 8.01 shall exist, at a

rate per annum equal to the sum of 2% plus the rate applicable to Base Rate

Loans for such day).

(d)   Subject to Section 8.01(a), each Competitive

Bid LIBOR Loan shall bear interest on the outstanding principal amount thereof,

for the Interest Period applicable thereto, at a rate per annum equal to the

sum of the London Interbank Offered Rate for such Interest Period (determined

in accordance with Section 2.07(b) as if the related Competitive Bid LIBOR

Borrowing were a Committed Euro–Dollar Borrowing) plus (or minus) the

Competitive Bid Margin quoted by the Bank making such Loan in accordance with

..  Each Competitive Bid Absolute Rate

Loan shall bear interest on the outstanding principal amount thereof, for the

Interest Period applicable thereto, at a rate per annum equal to the

Competitive Bid Absolute Rate quoted by the Bank making such Loan in accordance

with .  Such interest shall be payable for

each Interest Period on the last day thereof and, if such Interest Period is

longer than three months, at intervals of three months after the first day

thereof.  Any overdue principal of or

interest on any Competitive Bid Loan shall bear interest, payable on demand,

for each day until paid at a rate per annum equal to the sum of 2% plus the

Base Rate for such day.

(e)   The Agent shall determine each interest rate

applicable to the Loans hereunder.  The

Agent shall give prompt notice to the Company and the participating Banks of

each rate of interest so determined, and its determination thereof shall be

conclusive in the absence of manifest error.

(f)    Each Euro-Dollar Reference Bank agrees to

use its best efforts to furnish quotations to the Agent as contemplated by this

Section.  If any Euro-Dollar Reference

Bank does not furnish a timely quotation, the Agent shall determine the

relevant interest rate on the basis of the quotation or quotations furnished by

the remaining Euro-Dollar Reference Bank or Banks or, if none of such

quotations is available on a timely basis, the provisions of Section 8.01 shall

apply.

Section 2.08. Method of Electing Interest Rates.  (a) The Loans included in each Committed

Borrowing shall bear interest initially at the type of rate specified by the

Company in the applicable Notice of Committed Borrowing.  Thereafter, the Company may from time to

time elect to change or continue the type of interest rate borne by each Group

of Loans (subject to Section 2.08(d) and the provisions of Article 8), as

follows:

(i)    if such Loans are Base Rate

Loans, the Company may elect to convert such Loans to Euro–Dollar Loans

as of any Euro–Dollar Business Day; and

 

20

 

(ii)   if such Loans are Euro–Dollar

Loans, the Company may elect to convert such Loans to Base Rate Loans or

continue such Loans as Euro–Dollar Loans for an additional Interest

Period, in each case as of the last day of the then current Interest Period

applicable thereto.

Each such election shall be made by delivering a notice (a “Notice of Interest Rate Election”) to the

Agent not later than 12:00 noon (New York City time) on the third Euro–Dollar

Business Day before the conversion or continuation selected in such notice is

to be effective.  A Notice of Interest

Rate Election may, if it so specifies, apply to only a portion of the aggregate

principal amount of the relevant Group of Loans; provided that (i) such portion is allocated ratably among

the Loans comprising such Group and (ii) the portion to which such Notice

applies, and the remaining portion to which it does not apply, are each at

least $25,000,000 (unless such portion is comprised of Base Rate Loans).  If no such notice is timely received before

the end of an Interest Period for any Group of Euro-Dollar Loans, the Company

shall be deemed to have elected that, at the end of such Interest Period, such

Group of Loans be continued as Euro-Dollar Loans for an additional Interest

Period of one month (subject to the provisions of the definition of Interest

Period).

(b)   Each Notice of Interest Rate Election shall

specify:

(i)    the Group of Loans (or

portion thereof) to which such notice applies;

(ii)   the date on which the

conversion or continuation selected in such notice is to be effective, which

shall comply with the applicable clause of Section 2.08(a);

(iii)  if the Loans comprising

such Group are to be converted, the new type of Loans and, if the Loans

resulting from such conversion are to be Euro-Dollar Loans, the duration of the

next succeeding Interest Period applicable thereto; and

(iv)  if such Loans are to be

continued as Euro–Dollar Loans for an additional Interest Period, the

duration of such additional Interest Period.

Each Interest Period specified in a Notice of Interest Rate Election

shall comply with the provisions of the definition of Interest Period.

(c)   Promptly after receiving a Notice of Interest

Rate Election from the Company pursuant to Section 2.08(a), the Agent shall

notify each Bank of the contents thereof and such notice shall not thereafter

be revocable by the Company.

(d)   The Company shall not be entitled to elect to

convert any Committed Loans to, or continue any Committed Loans for an

additional Interest Period as, Euro-Dollar Loans if (i) the aggregate

principal amount of any Group

 

21

 

of Euro-Dollar Loans created

or continued as a result of such election would be less than $25,000,000 or

(ii) a Default shall have occurred and be continuing when the Company

delivers notice of such election to the Agent.

(e)   If any Committed Loan is converted to a

different type of Loan, the Company shall pay, on the date of such conversion,

the interest accrued to such date on the principal amount being converted.

Section 2.09. Facility Fee.  (a) The Company shall pay to the Agent for

the account of the Banks ratably a facility fee at the Facility Fee Rate

(determined daily in accordance with the Pricing Schedule).  Such facility fee shall accrue (i) from and

including the Effective Date to but excluding the Termination Date (or earlier

date of termination of the Commitments in their entirety), on the daily

aggregate amount of the Commitments (whether used or unused) and (ii) from and

including the Termination Date or such earlier date of termination to but

excluding the date the Loans shall be repaid in their entirety, on the daily

Total Outstanding Amount.

(b)   The Company shall pay (i) to the Agent for

the account of the Banks ratably a letter of credit fee accruing daily on the

aggregate undrawn amount of all outstanding Letters of Credit at a rate per

annum equal to the Fully-Drawn Margin for such day and (ii) to each Issuing

Bank for its own account, a letter of credit fronting fee accruing daily on the

aggregate amount then available for drawing under all Letters of Credit issued

by such Issuing Bank at such rate as may be mutually agreed between the Company

and such Issuing Bank from time to time.

(c)   Accrued fees under this Section shall be

payable quarterly in arrears on each Quarterly Payment Date and upon the date

of termination of the Commitments in their entirety (and, if later, the date

the Loans shall be repaid in their entirety).

Section 2.10. Optional Termination or Reduction of Commitments.  During the Revolving Credit Period, the

Company may, upon at least three Domestic Business Days’ notice to the Agent,

(i) terminate the Commitments at any time, if no Loans or Letter of Credit

Liabilities are outstanding at such time or (ii) ratably reduce from time to

time by an aggregate amount of $25,000,000 or any larger multiple thereof, the

aggregate amount of the Commitments in excess of the Total Outstanding Amount.

Section 2.11. Scheduled Termination of Commitments.  The Commitments shall terminate on the

Termination Date.

Section 2.12. Optional Prepayments.  (a) Subject in the case of any Euro-Dollar

Loans to Section 2.14, the Company may (i)upon at least one Domestic Business

Day’s notice to the Agent, prepay any Group of Base Rate Loans (or any

Competitive Bid Borrowing bearing interest at the Base Rate pursuant to Section

8.01(a)) or (ii) upon at least three Euro-Dollar Business Days’ notice to the

Agent, 

22

 

prepay any Group of

Euro-Dollar Loans, in each case in whole at any time, or from time to time in

part in amounts aggregating $25,000,000 or any larger multiple of $1,000,000,

by paying the principal amount to be prepaid together with accrued interest

thereon to the date of prepayment.  Each

such optional prepayment shall be applied to prepay ratably the Loans of the

several Banks included in such Group (or Borrowing).

(b)   Except as provided in Section 2.12(a), the

Company may not prepay all or any portion of the principal amount of any

Competitive Bid Loan prior to the maturity thereof.

(c)   Upon receipt of a notice of prepayment

pursuant to this Section, the Agent shall promptly notify each Bank of the

contents thereof and of such Bank’s ratable share (if any) of such prepayment

and such notice shall not thereafter be revocable by the Company.

Section 2.13. General Provisions as to Payments.  (a) The Company shall make each payment of

principal of, and interest on, the Loans and of fees hereunder, not later than

12:00 Noon (New York City time) on the date when due, in Federal or other funds

immediately available in New York City, to the Agent at its address referred to

in .  The Agent will promptly distribute

to each Bank its ratable share of each such payment received by the Agent for

the account of the Banks.  Whenever any payment

of principal of, or interest on, the Base Rate Loans or of fees shall be due on

a day which is not a Domestic Business Day, the date for payment thereof shall

be extended to the next succeeding Domestic Business Day.  Whenever any payment of principal of, or

interest on, the Euro–Dollar Loans shall be due on a day which is not a

Euro–Dollar Business Day, the date for payment thereof shall be extended

to the next succeeding Euro–Dollar Business Day unless such Euro–Dollar

Business Day falls in another calendar month, in which case the date for

payment thereof shall be the next preceding Euro–Dollar Business

Day.  Whenever any payment of principal

of, or interest on, the Competitive Bid Loans shall be due on a day which is

not a Euro–Dollar Business Day, the date for payment thereof shall be

extended to the next succeeding Euro–Dollar Business Day.  If the date for any payment of principal is

extended by operation of law or otherwise, interest thereon shall be payable

for such extended time.

(b)   Unless the Agent shall have received notice

from the Company prior to the date on which any payment is due to the Banks

hereunder that the Company will not make such payment in full, the Agent may

assume that the Company has made such payment in full to the Agent on such date

and the Agent may, in reliance upon such assumption, cause to be distributed to

each Bank on such due date an amount equal to the amount then due such

Bank.  If and to the extent that the

Company shall not have so made such payment, each Bank shall repay to the Agent

forthwith on demand such amount distributed to such Bank together with interest

thereon, for each day from the date such amount is distributed to such

 

23

 

Bank until the date such Bank

repays such amount to the Agent, at the Federal Funds Rate.

Section 2.14. Funding Losses.  If the Company makes any payment of

principal with respect to any Fixed Rate Loan or any Fixed Rate Loan is

converted to a different type of Loan (whether such payment or conversion is

pursuant to Article 2, 6 or 8 or otherwise) on any day other than the last day

of the Interest Period applicable thereto, or the last day of an applicable

period fixed pursuant to Section 2.07(c), or if the Company fails to borrow,

prepay, convert or continue any Fixed Rate Loans after notice has been given to

any Bank in accordance with Section 2.04(a), 2.08(c) or 2.12(c), the Company

shall reimburse each Bank within 15 days after demand for any resulting loss or

expense incurred by it (or by an existing or prospective Participant in the

related Loan), including (without limitation) any loss incurred in obtaining,

liquidating or employing deposits from third parties, but excluding loss of

margin for the period after any such payment or conversion or failure to

borrow, prepay, convert or continue; provided

that such Bank shall have delivered to the Company a certificate as to the

amount of such loss or expense, which certificate shall be conclusive in the

absence of manifest error.

Section 2.15. Computation of Interest and Fees.  Interest based on the Prime Rate hereunder

shall be computed on the basis of a year of 365 days (or 366 days in a leap

year) and paid for the actual number of days elapsed (including the first day

but excluding the last day).  All other

interest and fees shall be computed on the basis of a year of 360 days and paid

for the actual number of days elapsed (including the first day but excluding

the last day).

Section 2.16. Regulation D Compensation.  Each Bank may require the Company to pay,

contemporaneously with each payment of interest on the Euro-Dollar Loans,

additional interest on the related Euro-Dollar Loan of such Bank at a rate per

annum determined by such Bank up to but not exceeding the excess of (i) (A) the

applicable London Interbank Offered Rate divided by (B) one minus the Euro-Dollar Reserve Percentage

over (ii) the applicable London Interbank Offered Rate.  Any Bank wishing to require payment of such

additional interest (x) shall so notify the Company and the Agent, in which

case such additional interest on the Euro-Dollar Loans of such Bank shall be

payable to such Bank at the place indicated in such notice with respect to each

Interest Period commencing at least three Euro-Dollar Business Days after the

giving of such notice and (y) shall notify the Company at least five

Euro-Dollar Business Days prior to each date on which interest is payable on

the Euro-Dollar Loans of the amount then due it under this Section.

“Euro–Dollar Reserve Percentage”

means for any day that percentage (expressed as a decimal) which is in effect

on such day, as prescribed by the Board of Governors of the Federal Reserve

System (or any successor), for determining the maximum reserve requirement for

a member bank of the Federal Reserve System in New York City with deposits

exceeding five billion dollars in

 

24

 

respect of “Eurocurrency liabilities”

(or in respect of any other category of liabilities which includes deposits by

reference to which the interest rate on Euro–Dollar Loans is determined

or any category of extensions of credit or other assets which includes loans by

a non–United States office of any Bank to United States residents).

Section 2.17. Commitment Increase; Additional Banks.  (a) The Company may, upon at least 30 days’

notice to the Agent (which shall promptly provide a copy of such notice to the

Banks), propose to increase the aggregate amount of the Commitments to an

amount not to exceed $625,000,000 (the amount of any such increase, the “Commitment Increase”).  Each

Bank party to this Agreement at such time shall have the right (but no

obligation), for a period of 15 days following its receipt of such notice from

the Agent, to elect by notice to the Company and the Agent to increase its

Commitment by a principal amount up to that amount which bears the same ratio

to the Commitment Increase as its then existing Commitment bears to the

aggregate Commitments then existing.

(b)  If any Bank party to this Agreement shall not

elect to increase its Commitment by the full amount permitted by subsection (a)

of this Section, the Company with the consent of the Agent may designate one or

more other banks or other financial institutions (which may be, but need not

be, one or more of the existing Banks) which at the time agree in the case of

any such bank that is an existing Bank to increase its Commitment and, in the

case of any other such bank (an “Additional

Bank”), to become a party to this Agreement.  The sum of the increases in the Commitments

of the existing Banks pursuant to this subsection (b) plus the Commitments of

the Additional Banks shall not in the aggregate exceed the unsubscribed amount

of the Commitment Increase.

(c)   An increase in the aggregate amount of the Commitments

pursuant to this Section 2.17 shall become effective upon the receipt by the

Agent of an agreement in form and substance satisfactory to the Agent signed by

the Company, by each Additional Bank and by each other Bank whose Commitment is

to be increased, setting forth the new Commitments of such Banks and setting

forth the agreement of each Additional Bank to become a party to this Agreement

and to be bound by all the terms and provisions hereof, together with such

evidence of appropriate corporate authorization on the part of the Company with

respect to the Commitment Increase and such opinions of counsel for the Company

with respect to the Commitment Increase as the Agent may reasonably request.

(d)   Upon any increase in the aggregate amount of

the Commitments pursuant to this Section 2.17, within five Domestic Business

Days, in the case of Base Rate Loans then outstanding, and at the end of the

then current Interest Period with respect thereto, in the case of Euro-Dollar

Loans then outstanding, the Company shall prepay or repay such Loans in their

entirety and, to the extent the Company elects to do so and subject to the

conditions specified in Article 3 of this Agreement, the Company shall reborrow

Committed Loans from the Banks in proportion to their respective Commitments

after giving effect to such increase,

 

25

 

until such time as all

outstanding Committed Loans are held by the Banks in such proportion.

Section 2.18. Letters of

Credit.

(a)   Commitment

to Issue Letters of Credit. 

Subject to the terms and conditions hereof, each Issuing Bank agrees to

issue Letters of Credit from time to time before the Termination Date upon the

request of the Company; provided

that, immediately after each Letter of Credit is issued (i) the Total

Outstanding Amount shall not exceed the aggregate amount of the Commitments and

(ii) the aggregate amount of the Letter of Credit Liabilities shall not exceed

$100,000,000.  Upon the date of issuance

by an Issuing Bank of a Letter of Credit, the Issuing Bank shall be deemed,

without further action by any party hereto, to have sold to each Bank, and each

Bank shall be deemed, without further action by any party hereto, to have

purchased from the Issuing Bank, a participation in such Letter of Credit and

the related Letter of Credit Liabilities in the proportion its respective

Commitment bears to the aggregate Commitments. 

If the terms and conditions of any form of letter of credit application

or other agreement submitted by the Company to, or entered into by the Bank

relating to any Letters of Credit are not consistent with the terms and

conditions of this Agreement, the terms and conditions of this Agreement shall

control.

(b)   Method for Issuance; Terms; Extensions.

(i)    The Company shall give the

Issuing Bank notice at least three Domestic Business Days (or such shorter

notice as may be acceptable to the Issuing Bank in its discretion) prior to the

requested issuance of a Letter of Credit (or, in the case of renewal or extension,

prior to the Issuing Bank’s deadline for notice of nonextension) specifying the

date such Letter of Credit is to be issued, and describing the terms of such

Letter of Credit and the nature of the transactions to be supported thereby

(such notice, including any such notice given in connection with the extension

of a Letter of Credit, a “Notice of Issuance”).  Upon receipt of a Notice of Issuance, the

Issuing Bank shall promptly notify the Agent, and the Agent shall promptly

notify each Bank of the contents thereof and of the amount of such Bank’s

participation in such Letter of Credit.

(ii)   The obligation of the

Issuing Bank to issue each Letter of Credit shall, in addition to the

conditions precedent set forth in Section 3.02 be subject to the conditions

precedent that such Letter of Credit shall be in such form and contain such

terms as shall be reasonably satisfactory to the Issuing Bank and that the

Company shall have executed and delivered such other customary instruments and

agreements relating to such Letter of Credit as the Issuing Bank shall have

reasonably requested.  The Company shall

also pay to the Issuing Bank for its own account issuance, drawing, amendment,

settlement and extension charges, if any,

 

26

 

in

the amounts and at the times as agreed between the Company and the Issuing

Bank.

(iii)  The extension or renewal of

any Letter of Credit shall be deemed to be an issuance of such Letter of

Credit, and if any Letter of Credit contains a provision pursuant to which it

is deemed to be extended unless notice of termination is given by the Issuing

Bank, the Issuing Bank shall timely give such notice of termination unless it

has theretofore timely received a Notice of Issuance and the other conditions

to issuance of a Letter of Credit have also theretofore been met with respect

to such extension.  Each Letter of

Credit shall expire at or before the close of business on the date that is one

year after such Letter of Credit is issued (or, in the case of any renewal or

extension thereof, one year after such renewal or extension); provided that a Letter of Credit may

contain a provision pursuant to which it is deemed to be extended on an annual

basis unless notice of termination is given by the Issuing Bank.

(c)   Payments; Reimbursement Obligations.

(i)    Upon receipt from the

beneficiary of any Letter of Credit of any notice of a drawing under such

Letter of Credit, the Issuing Bank shall notify the Agent and the Agent shall

promptly notify the Company and each other Bank as to the amount to be paid as

a result of such demand or drawing and the date such payment is to be made by

the Issuing Bank (the “Payment Date”).  The Company shall be irrevocably and

unconditionally obligated to reimburse the Issuing Bank for any amounts paid by

the Issuing Bank upon any drawing under any Letter of Credit, without

presentment, demand, protest or other formalities of any kind.  Such reimbursement shall be due on the

Payment Date; provided that no

such payment shall be due from the Company any earlier than the date of receipt

by it of notice of its obligation to make such payment (or, if such notice is

received by the Company after 10:00 A.M. (New York City time) on any date, on

the next succeeding Domestic Business Day); and provided further that if and to the extent any such

reimbursement is not made by the Company in accordance with this clause (i) or

clause (ii) below on the Payment Date, then (irrespective of when notice

thereof is received by the Company), such reimbursement obligation shall bear

interest, payable on demand, for each day from and including the Payment Date

to but not including the date such reimbursement obligation is paid in full at

a rate per annum equal to the rate applicable to Base Rate Loans for such day.

(ii)   If the Commitments remain

in effect on the Payment Date, all such amounts paid by the Issuing Bank and

remaining unpaid by the Company after the date and time required by Section

2.18(c)(i) (a “Reimbursement Obligation”)

shall, if and to the extent that the amount of such Reimbursement Obligation

would be permitted as a Borrowing of

 

27

 

Revolving

Credit Loan pursuant to Section 3.02, and unless the Company otherwise

instructs the Agent by not less than one Domestic Business Day’s prior notice,

convert automatically to Base Rate Loans on the date such Reimbursement

Obligation arises.  The Agent shall, on

behalf of the Company (which hereby irrevocably directs the Agent so to act on

its behalf), give notice no later than 10:30 A.M. (New York City time) on such

date requesting each Bank to make, and each Bank hereby agrees to make, a Base

Rate Loan, in an amount equal to such Bank’s 

Percentage of the Reimbursement Obligation with respect to which such

notice relates.  Each Bank shall make

such Loan available to the Agent at its address specified in or pursuant to

Section 2.08(b)(i) in immediately available funds, not later than 12:00 Noon

(New York City time), on the date specified in such notice.  The Agent shall pay the proceeds of such

Loans to the Issuing Bank, which shall immediately apply such proceeds to repay

the Reimbursement Obligation.

(iii)  To the extent the

Reimbursement Obligation is not refunded by a Bank pursuant to clause (ii)

above, such Bank will pay to the Agent, for the account of the Issuing Bank,

immediately upon the Issuing Bank’s demand at any time during the period

commencing after such Reimbursement Obligation arises until reimbursement

therefor in full by the Company, an amount equal to such  Bank’s Percentage of such Reimbursement

Obligation, together with interest on such amount for each day from the date of

the Issuing Bank’s demand for such payment (or, if such demand is made after 1:00

P.M. (New York City time) on such date, from the next succeeding Domestic

Business Day) to the date of payment by such Bank of such amount at a rate of

interest per annum equal to the Federal Funds Rate for the first three Domestic

Business Days after the date of such demand and thereafter at a rate per annum

equal to the Base Rate for each additional day.  The Issuing Bank will pay to each Bank ratably all amounts

received from the Company for application in payment of its Reimbursement

Obligations in respect of any Letter of Credit, but only to the extent such

Bank has made payment to the Issuing Bank in respect of such Letter of Credit

pursuant hereto; provided that in

the event such payment received by the Issuing Bank is required to be returned,

such Bank will return to the Issuing Bank any portion thereof previously

distributed to it by the Issuing Bank.

(d)   Obligations

Absolute.  The obligations of

the Company and each Bank under subsection (c) above shall be absolute,

unconditional and irrevocable, and shall be performed strictly in accordance

with the terms of this Agreement, under all circumstances whatsoever, including

without limitation the following circumstances:

(i)    any lack of validity or

enforceability of this Agreement or any Letter of Credit or any document

related hereto or thereto;

 

28

 

(ii)   any amendment or waiver of

or any consent to departure from all or any of the provisions of this Agreement

or any Letter of Credit or any document related hereto or thereto, provided by

any party affected thereby;

(iii)  the use which may be made

of the Letter of Credit by, or any acts or omission of, a beneficiary of a

Letter of Credit (or any Person for whom the beneficiary may be acting);

(iv)  the existence of any claim,

set-off, defense or other rights that the Company may have at any time against

a beneficiary of a Letter of Credit (or any Person for whom the beneficiary may

be acting), any Bank (including the Issuing Bank) or any other Person, whether

in connection with this Agreement or the Letter of Credit or any document

related hereto or thereto or any unrelated transaction;

(v)   any statement or any other

document presented under a Letter of Credit proving to be forged, fraudulent or

invalid in any respect or any statement therein being untrue or inaccurate in

any respect whatsoever;

(vi)  payment under a Letter of

Credit against presentation to the Issuing Bank of documents that do not comply

with the terms of such Letter of Credit;

(vii) any termination of the

Commitments prior to, on or after the Payment Date for any Letter of Credit,

whether at the scheduled termination thereof, by operation of Section 6.01 or

otherwise; or

(viii) any other act or omission to act or delay of any kind by any

Bank (including the Issuing Bank), the Agent or any other Person or any other

event or circumstance whatsoever that might, but for the provisions of this

subsection (viii), constitute a legal or equitable discharge of or defense to

the Company’s or the Bank’s obligations hereunder;

provided, that this Section 2.18(d)

shall not limit the rights of the Company under Section 2.18(e)(ii)

(e)   Indemnification;

Expenses.

(i)    The Company hereby

indemnifies and holds harmless each Bank (including each Issuing Bank) and the

Agent from and against any and all claims, damages, losses, liabilities, costs

or expenses which it may reasonably incur in connection with a Letter of Credit

issued pursuant to this Section 2.18;  provided that the Company shall

not be required to indemnify any Bank, or the Agent, for any claims, damages,

losses, liabilities, costs or expenses, to the extent found by a court of

competent jurisdiction to have been caused by the gross negligence or willful

 

29

 

misconduct

of such Person and shall not be required to indemnify the Issuing Bank for any

claims, damages, losses, liabilities, costs or expenses caused by any matter

referred to in clause (x) or (y) of Section 2.18(e)(ii).

(ii)   None of the Banks

(including an Issuing Bank) nor the Agent nor any of their officers or

directors or employees or agents shall be liable or responsible, by reason of

or in connection with the execution and delivery or transfer of or payment or

failure to pay under any Letter of Credit, including without limitation any of

the circumstances enumerated in subsection (d) above; provided that, notwithstanding Sections

2.18(c) and 2.18(d) , the Company shall have a claim for direct and incidental

(but not consequential) damage suffered by it, to the extent finally determined

by a court of competent jurisdiction to have been caused by (x) subject to the

following sentence, the Issuing Bank’s failure to exercise reasonable care in

determining whether documents presented under any Letter of Credit complied

with the terms of such Letter of Credit or (y) the Issuing Bank’s failure (i)

to pay under any Letter of Credit after the presentation to it of documents

strictly complying with the terms and conditions of the Letter of Credit or

(ii) otherwise perform their express obligations under any Letter of

Credit.  The parties agree that, with respect to documents presented which

appear on their face to be in substantial compliance with the terms of a Letter

of Credit, the Issuing Bank may, in its discretion, either accept and make payment

upon such documents without responsibility for further investigation,

regardless of any notice or information to the contrary, or refuse to accept

and make payment upon such documents if such documents are not in strict

compliance with the terms of such Letter of Credit.

(iii)  Nothing in this subsection

(e) is intended to limit the obligations of the Company under any other

provision of this Agreement.  To the

extent the Company does not indemnify an Issuing Bank as required by this subsection,

the Banks agree to do so ratably in accordance with their Commitments.

(f)    Stop

Issuance Notice. If the Required Banks reasonably determine at any

time that the conditions set forth in Section 3.02 would not be satisfied in

respect of a Borrowing at such time, then the Required Banks may request that

the Agent issue a “Stop Issuance Notice”,

and the Agent shall issue such notice to each Issuing Bank.  Such Stop Issuance Notice shall be withdrawn

upon a determination by the Required Banks that the circumstances giving rise

thereto no longer exist.  No Letter of

Credit shall be issued while a Stop Issuance Notice is in effect. The Required

Banks may request issuance of a Stop Issuance Notice only if there is a

reasonable basis therefor, and shall consider reasonably and in good faith a

request from the Company for withdrawal of the same on the basis that the

conditions in Section 3.02 are satisfied, provided

that the Agent and the Issuing Banks may and shall conclusively rely upon any

Stop Issuance Notice while it remains in effect.

 

30

ARTICLE 3

Conditions

Section 3.01. Effectiveness.  This Agreement shall become effective on the

date that each of the following conditions shall have been satisfied (or waived

in accordance with Section 9.05):

(a)   receipt by the Agent of counterparts hereof

signed by each of the parties hereto (or, in the case of any party as to which

an executed counterpart shall not have been received, receipt by the Agent in

form satisfactory to it of telegraphic, telex or other written confirmation

from such party of execution of a counterpart hereof by such party);

(b)   receipt by the Agent of an opinion of the

General Counsel of the Company, substantially in the form of Exhibit E hereto

and covering such additional matters relating to the transactions contemplated

hereby as the Required Banks may reasonably request;

(c)   receipt by the Agent of an opinion of Davis

Polk & Wardwell, special counsel for the Agent, substantially in the form

of Exhibit F hereto and covering such additional matters relating to the

transactions contemplated hereby as the Required Banks may reasonably request;

(d)   receipt by the Agent of all documents the

Agent may reasonably request relating to the existence of the Company, the

corporate authority for and the validity of this Agreement and the Notes, and

any other matters relevant hereto, all in form and substance satisfactory to

the Agent; and

provided that this Agreement shall

not become effective or be binding on any party hereto unless all of the

foregoing conditions are satisfied not later than June 17, 2002.  The Agent shall promptly notify the Company

and the Banks of the Effective Date, and such notice shall be conclusive and

binding on all parties hereto.

Section 3.02. Borrowings and Issuances of Letters of Credit.  The obligation of any Bank to make a Loan on

the occasion of any Borrowing and the obligation of an Issuing Bank to issue

(or renew or extend the term of) any Letter of Credit, is subject to the

satisfaction of the following conditions:

(a)   receipt by the Agent of (i) a Notice of

Borrowing as required by Section 2.02 or 2.03, as the case may be or (ii) a

Notice of Issuance as required by Section 2.18(b);

(b)   the fact that, immediately after such

Borrowing or issuance (or renewal or extension), the Total Outstanding Amount

will not exceed the aggregate amount of the Commitments and the aggregate

amount of the Letter of Credit Liabilities shall not exceed $100,000,000 ;

 

31

 

(c)   the fact that, immediately before and after

such Borrowing or issuance, no Default shall have occurred and be continuing;

and

(d)   the fact that the representations and

warranties of the Company contained in this Agreement (other than the representations

and warranties set forth in Sections 4.04, 4.05 and 4.06, which are made only

as of the date hereof) shall be true on and as of the date of such Borrowing or

issuance.

Each Borrowing or issuance of any Letter of Credit hereunder shall be

deemed to be a representation and warranty by the Company on the date of such

Borrowing or issuance as to the facts specified in clause (d) of this Section.

ARTICLE

4

Representations and Warranties

The Company represents and warrants that:

Section 4.01. Corporate Existence and Power.  The Company is a corporation duly

incorporated, validly existing and in good standing under the laws of Delaware,

and has all corporate powers and will have on and as of the Effective Date all

material governmental licenses, authorizations, consents and approvals required

to carry on its business.

Section 4.02. Corporate and Governmental Authorization; No

Contravention.  The

execution, delivery and performance by the Company of this Agreement and the

Notes are within the Company’s corporate powers, have been duly authorized by

all necessary corporate action, require no action by or in respect of, or

filing with, any governmental body, agency or official, do not contravene any

provision of applicable law or regulation or of the certificate of

incorporation or by–laws of the Company and do not contravene, or

constitute a material default under, any debt instrument known to the Company

to be binding upon it.

Section 4.03. Binding Effect.  This Agreement constitutes a valid and

binding agreement of the Company and each Note, when executed and delivered in

accordance with this Agreement, will constitute a valid and binding obligation

of the Company, in each case enforceable in accordance with its terms.

Section 4.04. Financial Information.  (a) The Company has furnished to each of the

Banks the consolidated balance sheet of the Company as of September 30, 2001

and the related consolidated statement of income, stockholder’s equity and cash

flows for the fiscal year then ended, reported on by independent public

accountants.  Such financial statements

fairly present, in all material respects, in conformity with GAAP, the

financial position of the Company as of such dates and its results of

operations and cash flows for such fiscal year.

 

32

 

(b)   The unaudited consolidated balance sheet of

the Company as of March 31, 2002 and the related unaudited consolidated

statements of income and cash flows for the six months then ended set forth in

the Company’s quarterly report on Form10-Q fairly present, in all material

respects, in conformity with GAAP applied on a basis consistent with the

financial statements referred to in subsection (a) of this Section, the

financial position of the Company as of such date and its results of operations

and cash flows for such six month period (subject to normal year-end

adjustments).

(c)   As of 

the Effective Date, there will have been no material adverse change in

the financial condition, business or operations of  the Company since March 31, 2002.

Section 4.05. Litigation.  Except as disclosed in the Company’s annual report for 2001 on

Form 10-K and any subsequent quarterly report on Form 10-Q filed by the Company

with the SEC prior to the date hereof, there is no action, suit or proceeding

pending against, or to the knowledge of the Company threatened against or

affecting, the Company or any of its Subsidiaries before any court or

arbitrator or any governmental body, agency or official, in which there is a

reasonable probability of an adverse decision which could materially adversely

affect the business or consolidated financial position of the Company and its

Consolidated Subsidiaries, considered as a whole, or which in any manner draws

into question the validity of this Agreement or the Notes.

Section 4.06. Environmental Matters.  Expenditures by the Company and its

Consolidated Subsidiaries for environmental capital investment and remediation

necessary to comply with present Environmental Laws and other expenditures for

the resolution of existing environmental claims known to the Company are not

expected by management of the Company to have a material adverse effect on the

business or financial condition of the Company and its Consolidated

Subsidiaries, taken as a whole.

ARTICLE

5

Covenants

The Company agrees that, so long as any Bank has any Commitment

hereunder or any Loan or Letter of Credit remains outstanding or any amount

payable hereunder remains unpaid:

Section 5.01. Information.  The Company will deliver to each of the Banks:

(a)   within 120 days after the end of each fiscal

year of the Company, the Company’s Annual Report to Shareowners and annual

report on Form 10-K for such fiscal year, as filed with the Commission;

 

33

 

(b)   within 60 days after the end of each of the

first three quarters of each fiscal year of the Company, the Company’s

quarterly report on Form 10-Q for such fiscal quarter, as filed with the

Commission;

(c)   simultaneously with the delivery of each set

of financial statements referred to in clause (a), a certificate of the chief

financial officer, the treasurer or the controller of the Company stating

whether any Default exists on the date of such financial statements;

(d)   within 10 days after the chief financial

officer, the treasurer or the controller of the Company obtains knowledge of

any Default, if such Default is then continuing, a certificate of the chief

financial officer, the treasurer or the controller of the Company setting forth

the details thereof;

(e)   promptly upon the filing thereof, copies of

all reports on Form 8–K (or its equivalent) which the Company shall have

filed with the Commission; and

(f)    from time to time such additional

information regarding the financial position or business of the Company and its

Subsidiaries as the Agent, at the request of any Bank, may reasonably request.

Section 5.02. Maintenance of Existence.  The Company will preserve, renew and keep in

full force and effect its corporate existence and its rights, privileges and

franchises necessary or desirable in the normal conduct of business in all

material respects; provided that

nothing in this Section 5.02 shall prohibit a merger or consolidation permitted

by Section 5.06.

Section 5.03. Compliance with Laws.  The Company will comply in all material

respects with all applicable laws, ordinances, rules, regulations, and

requirements of governmental authorities (including, without limitation,

environmental laws and ERISA and the rules and regulations thereunder) except

where (i) the necessity of compliance therewith is contested in good faith by

appropriate proceedings or (ii) non-compliance would not, in the reasonable

judgment of the Company, have a material adverse effect on the financial

condition, business or operation of the Company and its Consolidated

Subsidiaries, considered as a whole.

Section 5.04. Use of Proceeds.  The proceeds of the Loans made or the

Letters of Credit issued under this Agreement will be used by the Company for

its general corporate purposes, including but not limited to commercial paper

backstop, acquisitions and stock repurchases. 

None of such proceeds will be used in violation of Regulation T, U or X

of the Board of Governors of the Federal Reserve System.

Section 5.05. Debt to Capitalization.  Consolidated Debt will at no time exceed 60%

of Total Capitalization.

 

34

 

Section 5.06. Mergers, Consolidations and Sales of Assets.  (a) The Company shall not consolidate with

or merge into any other corporation or convey or transfer its properties and

assets substantially as an entirety to any Person, unless

(1)           the

corporation formed by such consolidation or into which the Company is merged or

the Person which acquires by conveyance or transfer the properties and assets

of the Company substantially as an entirety shall be a corporation organized

and existing under the laws of the United States or any State or the District

of Columbia, and shall expressly assume, in form satisfactory to the Agent, the

due and punctual payment of the principal of (and premium, if any) and

interest, if any, on all the Loans and the performance of every covenant of

this Agreement on the part of the Company to be performed or observed;

(2)           immediately

after giving effect to such transaction, no Default shall have occurred and be

continuing; and

(3)           the

Company shall have delivered to the Agent a certificate of a duly authorized

officer of the Company and an opinion of legal counsel to the Company (which

shall be reasonably acceptable to the Agent), each stating that such

consolidation, merger, conveyance or transfer comply with this Section 5.06(a)

and that all conditions precedent herein provided for relating to such

transaction have been complied with.

(b)   Upon any consolidation or merger, or any

conveyance or transfer of the properties and assets of the Company

substantially as an entirety in accordance with Section 5.06(a), the successor

corporation formed by such consolidation or into which the Company is merged or

to which such conveyance or transfer is made shall succeed to, and be

substituted for, and may exercise every right and power of, the Company under

this Agreement with the same effect as if such successor corporation had been

named as the Company herein, and thereafter the predecessor corporation shall

be relieved of all obligations and covenants under this Agreement and the Notes

and may be liquidated and dissolved.

(c)   If, upon any consolidation or merger of the

Company with or into any corporation, or upon the conveyance or transfer by the

Company of its properties and assets substantially as an entirety in accordance

with Section 5.06(a) to any Person, any Principal Property owned by the

Company or a Restricted Subsidiary immediately prior thereto would thereupon

become subject to any Lien not permitted by Section 5.07, the Company will,

prior to such consolidation, merger, conveyance or transfer, secure the due and

punctual payment of the principal of (and premium, if any) and interest, if

any, on the Loans then outstanding (equally and ratably with any other Debt of

the Company then entitled to be so secured) by a direct Lien on such Principal

Property, together with any other properties and assets of the Company or of

any such Restricted

 

35

 

Subsidiary, whichever shall

be the owner of any such Principal Property, which would thereupon become

subject to any such Lien, prior to all Liens other than any theretofore

existing thereon.

Section 5.07. Limitations on Liens.  The Company shall not at any time create,

incur, assume or suffer to exist, and shall not cause, suffer or permit a

Restricted Subsidiary to create, incur, assume or suffer to exist, any Secured

Debt without making effective provision (and the Company covenants that in such

case it will make or cause to be made effective provision) whereby the Loans

then outstanding shall be secured equally and ratably with such Secured Debt,

so long as such Secured Debt shall exist; provided,

however, that this Section 5.07 shall not prevent any of the

following:

(a)   (i) any Lien on any property hereafter

acquired (including acquisition through merger or consolidation) or constructed

by the Company or a Restricted Subsidiary and created contemporaneously with,

or within twelve months after, such acquisition or the completion of

construction to secure or provide for the payment of all or any part of the

purchase price of such property or the cost of construction thereof, as the

case may be; or (ii) any mortgage on property (including any unimproved portion

of partially improved property) of the Company or a Restricted Subsidiary

created within twelve months of completion of construction of a new plant or

plants on such property to secure all or part of the cost of such construction;

or (iii) the acquisition of property subject to any Lien upon such property

existing at the time of acquisition thereof, whether or not assumed by the

Company or such Restricted Subsidiary;

(b)   Liens on capital stock hereafter acquired by the

Company or any Restricted Subsidiary, provided

that the aggregate cost to the Company and its Restricted Subsidiaries of all

capital stock subject to such Liens does not exceed 10% of Shareowners’ Equity;

(c)   any Lien securing Debt of a corporation which

is a successor to the Company to the extent permitted by Section 5.06; or

securing Debt of a Restricted Subsidiary outstanding at the time it became a

Restricted Subsidiary; or securing Debt of any Person outstanding at the time

it is merged with, or all or substantially all of its properties are acquired

by, the Company or any Restricted Subsidiary, provided

that such Lien does not extend to any other properties of the Company or any

Restricted Subsidiary; or existing on the property or on the outstanding shares

or Debt of a corporation at the time it becomes a Restricted Subsidiary; or

created, incurred or assumed in connection with any industrial revenue bond,

pollution control bond or similar financing arrangement between the Company or

any Restricted Subsidiary and any Federal, State or municipal government or

other governmental body or agency;

(d)   any Lien created in connection with any

extension, renewal or refunding (or successive extensions, renewals or

refundings), in whole or in part, of any Debt secured by a Lien permitted by

the foregoing provisions of this

 

36

 

Section 5.07 upon the same

property theretofore subject thereto (plus improvements on such property), provided that the amount of such Debt

outstanding at that time shall not be increased;

(e)   Liens or deposits made in connection with

contracts (which term includes subcontracts under such contracts) with or made

at the request of the United States or any department or agency thereof, insofar

as such Liens or deposits relate to property manufactured, installed or

constructed by or to be supplied by, or property furnished to, the Company or a

Restricted Subsidiary pursuant to, or to enable the performance of, such

contracts, or property the manufacture, installation, construction or

acquisition of which is financed pursuant to, or to enable the performance of,

such contracts; or deposits or Liens, made pursuant to such contracts, of or

upon moneys advanced or paid pursuant to, or in accordance with the provisions

of, such contracts, or of or upon any materials or supplies acquired for the

purpose of the performance of such contracts; or the assignment or pledge, to

the extent permitted by law, of the right, title and interest of the Company or

a Restricted Subsidiary in and to any such contract, or in and to any payments

due or to become due thereunder, to secure Debt incurred for funds or other

property supplied, constructed or installed for or in connection with the

performance by the Company or such Restricted Subsidiary of its obligations

under such contracts;

(f)    mechanics’, materialmen’s, carriers’ or

other like Liens, and pledges or deposits made in the ordinary course of

business to obtain the release of any such Liens or the release of property in

the possession of a common carrier; good faith deposits in connection with

tenders, leases of real estate or bids or contracts (other than contracts

involving the borrowing of money); pledges or deposits to secure public or

statutory obligations; deposits to secure (or in lieu of) surety, stay, appeal

or customs bonds; and deposits to secure the payment of taxes, assessments,

customs duties or other similar charges;

(g)   any Lien arising by reason of deposits with,

or the giving of any form of security to, any governmental agency or any body

created or approved by law or governmental regulation, which is required by law

or governmental regulation as a condition to the transaction of any business,

or the exercise of any privilege or license, or to enable the Company or a

Restricted Subsidiary to maintain self-insurance or to participate in any

arrangements established by law to cover any insurance risks or in connection

with workmen’s compensation, unemployment insurance, old age pensions, social security

or similar matters;

(h)   the Liens of taxes, assessments or other

governmental charges or levies not at the time due, or the validity of which is

being contested in good faith;

(i)    judgment Liens, so long as the finality of

such judgment is being contested in good faith and execution thereon is stayed;

 

37

 

(j)    easements or similar encumbrances, the

existence of which does not impair the use of the property subject thereto for

the purposes for which it is held or was acquired;

(k)   the landlord’s interest under any lease of

property;

(l)    leases granted to others in the ordinary

course of business;

(m)  Sale and Lease-Back Transactions to the extent

permitted by Section 5.08; and

(n)   contracts for the manufacture, construction,

installation or supply of property, products or services providing for a Lien

upon advance, progress or partial payments made pursuant to such contracts and

upon any material or supplies acquired, manufactured, constructed, installed or

supplied in connection with the performance of such contracts to secure such

advance, progress or partial payments.

Notwithstanding the foregoing provisions of this Section 5.07, the

Company and any one or more Restricted Subsidiaries may create, incur, assume

or suffer to exist Secured Debt which would otherwise be subject to the

foregoing restrictions in an aggregate amount which, together with all other

Secured Debt of the Company and its Restricted Subsidiaries which would

otherwise be subject to the foregoing restrictions (not including Secured Debt

permitted under clauses (a) through (o) above) and the aggregate value of the

Sale and Lease–Back Transactions (as defined in Section 5.08) in

existence at such time (not including Sale and Lease-Back Transactions the

proceeds of which have been or will be applied in accordance with clause (b) of

Section 5.08), does not at the time exceed 10% of Shareowners’ Equity.

Section 5.08. Limitations on Sale and Lease-Back.  The Company will not, and will not permit

any Restricted Subsidiary to, sell or transfer (except to the Company or one or

more Restricted Subsidiaries, or both) any Principal Property owned by it and

which has been in full operation for more than 180 days prior to such sale or

transfer with the intention (i) of taking back a lease on such property, except

a lease for a temporary period (not exceeding 36 months), and (ii) that the use

by the Company or such Restricted Subsidiary of such property will be

discontinued on or before the expiration of the term of such lease (any such

transaction being herein referred to as a “Sale

and Lease-Back Transaction”), unless

(a)   the Company or such Restricted Subsidiary

would be entitled, pursuant to the provisions of Section 5.07 hereof, to incur

Secured Debt equal in amount to the amount realized or to be realized upon such

sale or transfer secured by a mortgage on the property to be leased without

equally and ratably securing the Loans; or

 

38

 

(b)   the Company or a Restricted Subsidiary shall,

within 180 days of the effective date of any such transaction, apply an amount

equal to the value of the property so leased (i) to the retirement (other than

any mandatory retirement) of Consolidated Funded Debt or Debt then outstanding

of the Company or any Restricted Subsidiary that was Funded Debt at the time it

was created (other than Consolidated Funded Debt or such other Debt owned by

the Company or any Restricted Subsidiary), or (ii) to the purchase of Principal

Property having a value at least equal to the value of such property; provided, however, that the amount to be

so applied pursuant to the preceding clause (i) or (ii) shall be reduced by (A)

the principal amount of any Loans repaid within 180 days of the effective date

of any such transaction and (B) the principal amount of Consolidated Funded

Debt or Debt that was Funded Debt at the time it was created (other than Loans)

retired by the Company or a Restricted Subsidiary within 180 days of the

effective date of any such transaction; or

(c)   the Sale and Lease-Back Transaction involved

was an industrial revenue bond, pollution control bond or similar financing

arrangement between the Company or any Restricted Subsidiary and any Federal,

State or municipal government or other governmental body or agency.

The term “value” shall mean, with respect to a Sale and Lease-Back

Transaction, as of any particular time, the amount equal to the greater of  (i) the net proceeds of the sale of the

property leased pursuant to such Sale and Lease-Back Transaction or (ii) the

fair value of such property at the time of entering into such Sale and

Lease-Back Transaction, as determined by the board of directors of the Company

(or a duly authorized committee thereof), in either case divided first by the

number of full years of the term of the lease and then multiplied by the number

of full years of such term remaining at the time of determination, without

regard to any renewal or extension options contained in the lease.

Section 5.09. Limitations on Change in Subsidiary Status.  The Company may designate any Subsidiary as

an Unrestricted Subsidiary or as a Restricted Subsidiary, subject to the

provisions set forth below:

(a)   the Company will not permit any Subsidiary to

be designated as an Unrestricted Subsidiary unless at the time of such

designation the Subsidiary so designated does not own, directly or indirectly,

any capital stock of any Restricted Subsidiary or any Funded Debt or Secured

Debt of the Company or any Restricted Subsidiary;

(b)   the Company will not permit any Restricted

Subsidiary to be designated as, or otherwise to become, an Unrestricted

Subsidiary unless immediately after such Restricted Subsidiary becomes an

Unrestricted Subsidiary, no Default shall exist;

 

39

 

(c)   the Company will not permit any Unrestricted

Subsidiary to be designated as a Restricted Subsidiary unless immediately after

such Unrestricted Subsidiary becomes a Restricted Subsidiary, no Default shall

exist; and

(d)   promptly after the designation of any

Subsidiary as an Unrestricted Subsidiary or as a Restricted Subsidiary, there

shall be filed with the Agent, a certificate of a duly authorized officer of

the Company stating that the provisions of this Section have been complied with

in connection with such designation.

ARTICLE

6

Defaults

Section 6.01. Events of Default.  If one or more of the following events (“Events of Default”) shall have occurred and

be continuing:

(a)   the Company shall fail to pay when due any

principal of any Loan, or shall fail to pay within 10 days of the due date

thereof any interest on any Loan, any fees or any other amount payable

hereunder;

(b)   the Company shall fail to observe or perform

any covenant or agreement contained in Article 5 for 90 days after notice

thereof has been given to the Company by the Agent at the request of any Bank;

(c)   any representation or warranty made by the

Company (i) in Article 4 or (ii) pursuant to Section 3.02 on the date of any

Borrowing shall prove to have been incorrect in any material respect when made

(or deemed made);

(d)   the Company or any of its Subsidiaries shall

fail to pay the principal of or interest on Material Debt when due, or within

any applicable grace period, in accordance with the instrument or agreement

under which the same was created;

(e)   any event or condition shall occur (including

failure to pay principal or interest) which results in the acceleration of the

maturity of Material Debt;

(f)    the entry of a decree or order for relief by

a court having jurisdiction in the premises in respect of the Company in an

involuntary case under the Federal bankruptcy laws, as now constituted or

hereafter amended, or any other applicable Federal or State bankruptcy,

insolvency or other similar law, or appointing a receiver, liquidator,

assignee, custodian, trustee, sequestrator (or similar official) of the Company

or of any substantial part of its property, or ordering the winding up or

liquidation of its affairs, and the continuance of any such decree or order

unstayed and in effect for a period of 90 consecutive days; or

(g)   the commencement by the Company of a

voluntary case under the Federal bankruptcy laws, as now constituted or

hereafter amended, or any other applicable Federal or State bankruptcy,

insolvency or other similar law, or the

 

40

 

consent by it to the

appointment of or taking possession by a receiver, liquidator, assignee,

trustee, custodian, sequestrator (or other similar official) of the Company or

of any substantial part of its property, or the making by it of an assignment

for the benefit of creditors, or the admission by it in writing of its

inability to pay its debts generally as they become due, or the taking of

corporate action by the Company in furtherance of any such action;

then, and in every such event, the Agent shall (i) if requested by

Banks having more than 50% in aggregate amount of the Commitments, by notice to

the Company terminate the Commitments and they shall thereupon terminate, and

(ii) if requested by Banks holding more than 50% in aggregate principal amount

of the Loans, by notice to the Company declare the Loans (together with accrued

interest thereon) to be, and the Loans shall thereupon become, immediately due

and payable without presentment, demand, protest or other notice of any kind,

all of which are hereby waived by the Company; provided

that in the case of any of the Events of Default specified in clause (f) or (g)

above, without any notice to the Company or any other act by the Agent or the

Banks, the Commitments shall thereupon terminate and the Loans (together with

accrued interest thereon) shall become immediately due and payable without

presentment, demand, protest or other notice of any kind, all of which are

hereby waived by the Company.

Section 6.02. Notice of Default.  The Agent shall give notice to the Company

under Section 6.01(b) promptly upon being requested to do so by any Bank and

shall thereupon notify all the Banks thereof.

Section 6.03. Cash Cover.  The Company agrees, in addition to the provisions of Section 6.01

hereof, that upon the occurrence and during the continuance of any Event of

Default, it shall, if requested by the Agent upon the instruction of the Banks

having more than 50% of the Letter of Credit Liabilities, pay to the Agent an

amount in immediately available funds (which funds shall be held as collateral

pursuant to arrangements satisfactory to the Agent) equal to the aggregate

amount available for drawing under all Letters of Credit outstanding at such

time, provided that, upon the occurrence of any Event of Default specified in

Section 6.01(f) or 6.01(g) with respect to the Company, the Company shall pay

such amount forthwith without any notice or demand or any other act by the

Agent or the Banks.

ARTICLE

7

The Agent

Section 7.01. Appointment and Authorization.  Each Bank irrevocably appoints and

authorizes the Agent to take such action as agent on its behalf and to exercise

such powers under this Agreement and the Notes as are delegated to the Agent by

the terms hereof or thereof, together with all such powers as are reasonably

incidental thereto.

 

41

 

Section 7.02. Agent and Affiliates.  JPMorgan Chase Bank shall have the same

rights and powers under this Agreement as any other Bank and may exercise or

refrain from exercising the same as though it were not the Agent, and JPMorgan

Chase Bank and its affiliates may accept deposits from, lend money to, and

generally engage in any kind of business with the Company or any Subsidiary or

affiliate of the Company as if it were not the Agent hereunder.

Section 7.03. Action by Agent.  The obligations of the Agent hereunder are

only those expressly set forth herein. 

Without limiting the generality of the foregoing, the Agent shall not be

required to take any action with respect to any Default, except as expressly

provided in Article 6.

Section 7.04. Consultation with Experts.  The Agent may consult with legal counsel

(who may be counsel for the Company), independent public accountants and other

experts selected by it and shall not be liable for any action taken or omitted

to be taken by it in good faith in accordance with the advice of such counsel,

accountants or experts.

Section 7.05. Liability of Agent.   Neither the Agent nor any of its affiliates

nor any of their respective directors, officers, agents or employees shall be

liable for any action taken or not taken by it in connection herewith (i) with

the consent or at the request of the Required Banks or, when expressly required

hereby, all the Banks or (ii) in the absence of its own gross negligence or

willful misconduct.  Neither the Agent

nor any of its affiliates nor any of their respective directors, officers,

agents or employees shall be responsible for or have any duty to ascertain,

inquire into or verify (i) any statement, warranty or representation made in

connection with this Agreement or any borrowing or issuance of a Letter of

Credit  hereunder; (ii) the performance

or observance of any of the covenants or agreements of the Company; (iii) the

satisfaction of any condition specified in Article 3, except receipt of items

required to be delivered to the Agent; or (iv) the validity, effectiveness or

genuineness of this Agreement, the Notes or any other instrument or writing

furnished in connection herewith.  The

Agent shall not incur any liability by acting in reliance upon any notice,

consent, certificate, statement, or other writing (which may be a bank wire,

telex, facsimile transmission or similar writing) believed by it to be genuine

or to be signed by the proper party or parties.

Section 7.06. Indemnification.  Each Bank shall, ratably in accordance with

its Commitment, indemnify the Agent, and any Issuing Bank, their affiliates and

their respective directors, officers, agents and employees (to the extent not

reimbursed by the Company) against any cost, expense (including counsel fees

and disbursements), claim, demand, action, loss or liability (except such as

result from such indemnitee’s gross negligence or willful misconduct) that such

indemnitees may suffer or incur in connection with this Agreement or any Letter

of Credit or any action taken or omitted by such indemnitees hereunder or

thereunder.

 

42

 

Section 7.07. Credit Decision.  Each Bank acknowledges that it has,

independently and without reliance upon the Agent or any other Bank, and based

on such documents and information as it has deemed appropriate, made its own

credit analysis and decision to enter into this Agreement.  Each Bank also acknowledges that it will,

independently and without reliance upon the Agent or any other Bank, 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 any action

under this Agreement.

Section 7.08. Successor Agent.  The Agent may resign at any time by giving

30 days’ notice thereof to the Banks and the Company.  Upon any such resignation, the Required Banks shall have the

right to appoint a successor Agent.  If

no successor Agent shall have been so appointed by the Required Banks, and

shall have accepted such appointment, within 30 days after the retiring Agent

gives notice of resignation, then the retiring Agent may, on behalf of the

Banks, appoint a successor Agent, which shall be a commercial bank organized or

licensed under the laws of the United States of America or of any State thereof

and having a combined capital and surplus of at least $50,000,000.  Upon the acceptance of its appointment as

Agent hereunder by a successor Agent, such successor Agent shall thereupon

succeed to and become vested with all the rights and duties of the retiring

Agent, and the retiring Agent shall be discharged from its duties and

obligations hereunder.  After any

retiring Agent’s resignation hereunder as Agent, the provisions of this Article

shall inure to its benefit as to any actions taken or omitted to be taken by it

while it was Agent.

Section 7.09. Agent’s Fee.  The Company shall pay to the Agent for its own account fees in

the amounts and at the times previously agreed upon between the Company and the

Agent.

ARTICLE

8

Change in Circumstances

Section 8.01. Basis for Determining Interest Rate Inadequate or Unfair.  If on or prior to the first day of any

Interest Period for any Fixed Rate Loans:

(a)   the Agent is advised by the Euro-Dollar

Reference Banks that deposits in dollars (in the applicable amounts) are not

being offered to the Euro-Dollar Reference Banks in the relevant market for

such Interest Period, or

(b)   in the case of Euro-Dollar Loans, Banks

having 50% or more of the aggregate amount of the Commitments advise the Agent

that the London Interbank Offered Rate as determined by the Agent will not adequately

and fairly reflect the cost to such Banks of funding their Euro–Dollar

Loans for such Interest Period,

 

43

 

the Agent shall forthwith give notice thereof

to the Company and the  Banks, whereupon

until the Agent notifies the Company that the circumstances giving rise to such

suspension no longer exist, (i) the obligations of the Banks to make Euro–Dollar

Loans, or to continue or convert outstanding Loans as or into Euro-Dollar

Loans, shall be suspended and (ii) each outstanding Euro-Dollar Loan shall be

converted into a Base Rate Loan on the last day of the then current Interest

Period applicable thereto.  Unless the

Company notifies the Agent at least two Domestic Business Days before the date

of any Fixed Rate Borrowing for which a Notice of Borrowing has previously been

given that it elects not to borrow on such date, (i) if such Fixed Rate

Borrowing is a Euro-Dollar Borrowing, such Borrowing shall instead be made as a

Base Rate Borrowing and (ii) if such Fixed Rate Borrowing is a Competitive Bid

LIBOR Borrowing, the Competitive Bid LIBOR Loans comprising such Borrowing

shall bear interest for each day from and including the first day to but

excluding the last day of the Interest Period applicable thereto at the Base

Rate for such day.

 

Section 8.02. Illegality.  (a) If, on or after the date of this Agreement, the adoption of

any applicable law, rule or regulation, or any change in any applicable law,

rule or regulation, or any change in the interpretation or administration

thereof by any governmental authority, central bank or comparable agency

charged with the interpretation or administration thereof, or compliance by any

Bank (or its Euro–Dollar Lending Office) with any request or directive

(whether or not having the force of law) of any such authority, central bank or

comparable agency shall make it unlawful or impossible for any Bank (or its

Euro–Dollar Lending Office) to make, maintain or fund its Euro–Dollar

Loans and such Bank shall so notify the Agent, the Agent shall forthwith give

notice thereof to the other Banks and the Company, whereupon until such Bank

notifies the Company and the Agent that the circumstances giving rise to such

suspension no longer exist, the obligation of such Bank to make Euro–Dollar

Loans, or to convert outstanding Loans into Euro-Dollar Loans or continue

outstanding Loans as Euro-Dollar Loans, shall be suspended.  Before giving any notice to the Agent

pursuant to this Section, such Bank shall designate a different Euro–Dollar

Lending Office if such designation will avoid the need for giving such notice

and will not, in the sole judgment of such Bank, be otherwise disadvantageous

to such Bank.

(b)   If such notice is given, each Euro-Dollar

Loan of such Bank then outstanding shall be converted to a Base Rate Loan

either (i) on the last day of the then current Interest Period applicable to

such Euro-Dollar Loan if such Bank may lawfully continue to maintain and fund

such Loan as a Euro-Dollar Loan to such day or (ii) immediately if such Bank

shall determine that it may not lawfully continue to maintain and fund such

Loan as a Euro-Dollar Loan to such day. 

Interest and principal on any such Base Rate Loan shall be payable on

the same dates as, and on a pro rata basis with, the interest and principal

payable on the related Euro-Dollar Loans of the other Banks.

Section 8.03. Increased Cost and Reduced Return.  (a) If on or after (x) the date hereof, in

the case of any Committed Loan or Letters of Credit or any

 

44

 

obligation to make Committed

Loans or issue or participate in any Letters of Credit or (y) the date of the

related Competitive Bid Quote, in the case of any Competitive Bid Loan, the

adoption of any applicable law, rule or regulation, or any change in any

applicable law, rule or regulation, or any change in the interpretation or

administration thereof by any governmental authority, central bank or

comparable agency charged with the interpretation or administration thereof, or

compliance by any Bank (or its Applicable Lending Office) or any Issuing Bank

with any request or directive (whether or not having the force of law) of any

such authority, central bank or comparable agency shall impose, modify or deem

applicable any reserve (including, without limitation, any such requirement

imposed by the Board of Governors of the Federal Reserve System, but excluding

with respect to any Euro–Dollar Loan any such requirement included in an

applicable Euro–Dollar Reserve Percentage), special deposit, insurance

assessment or similar requirement against assets of, deposits with or for the

account of, or credit (including letters of credit and participations therein)

extended by, any Bank (or its Applicable Lending Office) or any Issuing Bank or

shall impose on any Bank (or its Applicable Lending Office) or any Issuing Bank

or on the London interbank market any other condition affecting its Fixed Rate

Loans or the Letters of Credit, its Note, its obligation to make Fixed Rate

Loans or its obligations hereunder in respect of Letters of Credit and the

result of any of the foregoing is to increase the cost to such Bank (or its

Applicable Lending Office) or such Issuing Bank of making or maintaining any

Fixed Rate Loan or of issuing or participating in any Letters of Credit, or to

reduce the amount of any sum received or receivable by such Bank (or its

Applicable Lending Office) or such Issuing Bank under this Agreement or under

its Note with respect thereto, by an amount deemed by such Bank or Issuing Bank

to be material, then, within 15 days after demand by such Bank or Issuing Bank

(with a copy to the Agent), the Company shall pay to such Bank or Issuing Bank

such additional amount or amounts as will compensate such Bank or Issuing Bank

for such increased cost or reduction.

(b)   If any Bank shall have determined that, after

the date hereof, the adoption of any applicable law, rule or regulation

regarding capital adequacy, or any change in any such law, rule or regulation,

or any change in the interpretation or administration thereof by any

governmental authority, central bank or comparable agency charged with the

interpretation or administration thereof, or any request or directive regarding

capital adequacy (whether or not having the force of law) of any such

authority, central bank or comparable agency (including any determination by

any such authority, central bank or comparable agency that, for purposes of

capital adequacy requirements, the Commitments hereunder do not constitute

commitments with an original maturity of one year or less, which shall be

deemed a change in the interpretation and administration of such

requirements)  has or would have the

effect of reducing the rate of return on capital of such Bank (or its Parent)

as a consequence of such Bank’s obligations hereunder to a level below that

which such Bank (or its Parent) could have achieved but for such adoption,

change, request or directive (taking into consideration its policies with

respect to capital adequacy) by an amount deemed

 

45

 

by such Bank to be material,

then from time to time, within 15 days after demand by such Bank (with a copy

to the Agent), the Company shall pay to such Bank such additional amount or

amounts as will compensate such Bank (or its Parent) for such reduction.

(c)   Each Bank will promptly notify the Company

and the Agent of any event of which it has knowledge, occurring after the date

hereof, which will entitle such Bank to compensation pursuant to this Section

and will designate a different Applicable Lending Office if such designation

will avoid the need for, or reduce the amount of, such compensation and will

not, in the sole judgment of such Bank, be otherwise disadvantageous to such

Bank.  A certificate of any Bank

claiming compensation under this Section 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, such Bank may use any reasonable averaging and attribution

methods.  Notwithstanding the foregoing

subsections  (a) and (b) of this Section

8.03, the Company shall only be obligated to compensate any Bank for any amount

arising or accruing during (i) any time or period commencing not more than 90 days

prior to the date on which such Bank notifies the Agent and the Company that it

proposes to demand such compensation and identifies to the Agent and the

Company the statute, regulation or other basis upon which the claimed

compensation is or will be based and (ii) any time or period during which,

because of the retroactive application of such statute, regulation or other

such basis, such Bank did not know that such amount would arise or accrue.

Section 8.04. Taxes.  (a) For purposes of this Section 8.04, the following terms have

the following meanings:

“Taxes” means any and all present or future taxes, duties,

levies, imposts, deductions, charges or withholdings with respect to any

payment by the Company pursuant to this Agreement or under any Note, and all

liabilities with respect thereto, excluding

(i) in the case of each Bank and the Agent, taxes imposed on its income, and

franchise or similar taxes imposed on it, by a jurisdiction under the laws of

which such Bank or the Agent (as the case may be) is organized or in which its

principal executive office is located or, in the case of each Bank, in which

its Applicable Lending Office is located or by any State, possession or

territory of the United States in which such Bank or the Agent (as the case may

be) is doing business and (ii) in the case of each Bank, any United States

withholding tax imposed on such payments but only to the extent that such Bank

is subject to United States withholding tax at the time such Bank first becomes

a party to this Agreement.

“Other Taxes” means any present or future stamp or documentary

taxes and any other excise or property taxes, or similar charges or levies,

which arise from any payment made pursuant to this Agreement or under any Note

or from the execution or delivery of, or otherwise with respect to, this

Agreement or any Note.

 

46

 

(b)   Any and all payments by the Company to or for

the account of any Bank or the Agent hereunder or under any Note shall be made

without deduction for any Taxes or Other Taxes; provided that, if the Company shall be required by law to

deduct any Taxes or Other Taxes from any such payments, (i) the sum

payable shall be increased as necessary so that after making all required

deductions (including deductions applicable to additional sums payable under

this Section 8.04) such Bank or the Agent (as the case may be) receives an

amount equal to the sum it would have received had no such deductions been

made, (ii) the Company shall make such deductions, (iii) the Company

shall pay the full amount deducted to the relevant taxation authority or other

authority in accordance with applicable law and (iv) the Company shall

furnish to the Agent, at its address referred to in Section 9.01, the original

or a certified copy of a receipt evidencing payment thereof.

(c)   The Company agrees to indemnify each Bank and

the Agent for the full amount of Taxes or Other Taxes (including, without

limitation, any Taxes or Other Taxes imposed or asserted by any jurisdiction on

amounts payable under this Section 8.04) paid by such Bank, including any

Issuing Bank or the Agent (as the case may be) and any liability (including

penalties, interest and expenses) arising therefrom or with respect thereto.  This indemnification shall be paid within 15

days after such Bank, including any Issuing Bank, or the Agent (as the case may

be) makes demand therefor.

(d)   Each Bank organized under the laws of a

jurisdiction outside the United States, on or prior to the date of its

execution and delivery of this Agreement in the case of each Bank listed on the

signature pages hereof and on or prior to the date on which it becomes a Bank

in the case of each other Bank, and from time to time thereafter if requested

in writing by the Company (but only so long as such Bank remains lawfully able

to do so), shall provide the Company with Internal Revenue Service form W–8BEN

or W–8ECI, as appropriate, or any successor form prescribed by the

Internal Revenue Service, certifying that such Bank is entitled to benefits

under an income tax treaty to which the United States is a party which exempts

the Bank from United States withholding tax or reduces the rate of withholding

tax on payments of interest for the account of such Bank or certifying that the

income receivable pursuant to this Agreement is effectively connected with the

conduct of a trade or business in the United States.

(e)   For any period with respect to which a Bank

has failed to provide the Company with the appropriate form pursuant to Section

8.04(d) (unless such failure is due to a change in treaty, law or regulation

occurring subsequent to the date on which such form originally was required to

be provided), such Bank shall not be entitled to indemnification under Section

8.04(b) or (c) with respect to Taxes imposed by the United States; provided that if a Bank, which is

otherwise exempt from or subject to a reduced rate of withholding tax, becomes

subject to Taxes because of its failure to deliver a form required hereunder,

the Company shall take such steps as such Bank shall reasonably request to

assist such Bank to recover such Taxes.

 

47

 

(f)    If the Company is required to pay additional

amounts to or for the account of any Bank pursuant to this Section 8.04, then

such Bank will change the jurisdiction of its Applicable Lending Office if, in

the sole judgment of such Bank, such change (i) will eliminate or reduce any

such additional payment which may thereafter accrue and (ii) is not otherwise

disadvantageous to such Bank.

Section 8.05. Base Rate Loans Substituted for Affected Fixed Rate

Loans.  If (i) the

obligation of any Bank to make, or to continue or convert outstanding Loans as

or to, Euro–Dollar Loans has been suspended pursuant to Section 8.02 or

(ii) any Bank has demanded compensation under Section 8.03 or 8.04 with respect

to its Euro-Dollar Loans and the Company shall, by at least five Euro–Dollar

Business Days’ prior notice to such Bank through the Agent, have elected that

the provisions of this Section shall apply to such Bank, then, all Loans which

would otherwise be made by such Bank as (or continued as or converted to) Euro–Dollar

Loans shall be made instead as Base Rate Loans (on which interest and principal

shall be payable contemporaneously with the related Fixed Rate Loans of the

other Banks).  If such Bank notifies the

Company that the circumstances giving rise to such suspension or demand for

compensation no longer exist, the principal amount of each such Base Rate Loan

shall be converted into a Euro-Dollar Loan on the first day of the next

succeeding Interest Period applicable to the related Euro–Dollar Loans of

the other Banks.

ARTICLE

9

Miscellaneous

Section 9.01. Notices.  All notices, requests and other communications to any party

hereunder shall be in writing (including bank wire, telex, facsimile

transmission or similar writing) and shall be given to such party:  (x) in the case of the Company or the Agent,

at its address, facsimile number or telex number set forth on the signature

pages hereof, (y) in the case of any Bank, at its address, facsimile number or

telex number set forth in its Administrative Questionnaire or (z) in the case

of any party, such other address, facsimile number or telex number as such

party may hereafter specify for the purpose by notice to the Agent and the

Company.  Each such notice, request or

other communication shall be effective (i) if given by telex, when such telex

is transmitted to the telex number specified in this Section and the

appropriate answerback is received, (ii) if given by facsimile transmission,

when transmitted to the facsimile number specified in this Section and

confirmation of receipt is received, (iii) if given by mail, 72 hours after

such communication is deposited in the mails with first class postage prepaid,

addressed as aforesaid or (iv) if given by any other means, when delivered at

the address specified in this Section; provided

that notices to the Agent under Article 2 or Article 8 shall not be effective

until received.

Section 9.02. No Waivers.  No failure or delay by the Agent or any Bank in exercising any

right, power or privilege hereunder or under any Note or under any Letters of

Credit shall operate as a waiver thereof nor shall any single or

 

48

 

partial exercise thereof

preclude any other or further exercise thereof or the exercise of any other

right, power or privilege.  The rights

and remedies herein provided shall be cumulative and not exclusive of any rights

or remedies provided by law.

Section 9.03. Expenses; Indemnification.  (a) The Company shall pay (i) all

reasonable out–of–pocket expenses of the Agent, including fees and

disbursements of special counsel for the Agent, in connection with the

preparation and administration of this Agreement, any waiver or consent

hereunder or any amendment hereof or any Default or alleged Default hereunder

and (ii) if an Event of Default occurs, all reasonable out–of–pocket

expenses incurred by the Agent and each Bank (including any Issuing Bank),

including (without duplication) the fees and disbursements of outside counsel

and the allocated cost of inside counsel, in connection with such Event of

Default and collection, bankruptcy, insolvency and other enforcement

proceedings resulting therefrom.

(b)   The Company agrees to indemnify the Agent and

each Bank (including any Issuing Bank), their respective affiliates and the

respective directors, officers, agents and employees of the foregoing (each an

“Indemnitee”) and hold each Indemnitee

harmless from and against any and all liabilities, losses, damages, costs and

expenses of any kind, including, without limitation, the reasonable fees and

disbursements of counsel, which may be incurred by such Indemnitee in

connection with any investigative, administrative or judicial proceeding

(whether or not such Indemnitee shall be designated a party thereto) brought or

threatened relating to or arising out of this Agreement or any actual or

proposed use of any proceeds of any Loans or Letters of Credit hereunder; provided that no Indemnitee shall have the

right to be indemnified hereunder for such Indemnitee’s own gross negligence or

willful misconduct as determined by a court of competent jurisdiction.  The Company shall not be liable for any compromise

or settlement entered into by an indemnified person without its consent, which

consent shall not be unreasonably withheld. 

Promptly after the receipt by the indemnified person of notice of its

involvement in any investigative, administrative or judicial proceeding, such

indemnified person shall, if a claim in respect thereof is to be made against

the Company under this indemnification, notify the Company in writing of such

involvement, unless prohibited by applicable law or regulations or if requested

by any governmental agency or other regulatory authority (including any

self-regulatory organization having, or claiming to have jurisdiction), but

failure so to notify the Company shall not relieve the Company from any

liability which it may otherwise have to the indemnified person under this

indemnification except to the extent that the Company actually suffers

prejudice as a result of such failure.

Section 9.04. Sharing of Set-offs.  Each Bank agrees that if it shall, by

exercising any right of set–off or counterclaim or otherwise, receive

payment of a proportion of the aggregate amount of principal and interest then

due with respect to the Loans and Letter of Credit Liabilities held by it which

is greater than the proportion received by any other Bank in respect of the

aggregate amount of

 

49

 

principal and interest then

due with respect to the Loans and Letter of Credit Liabilities held by such

other Bank, the Bank receiving such proportionately greater payment shall

purchase such participations in the Loans held by the other Banks, and such

other adjustments shall be made, as may be required so that all such payments

of principal and interest with respect to the Loans and Letter of Credit

Liabilities held by the Banks shall be shared by the Banks pro rata; provided that nothing in this Section

shall impair the right of any Bank to exercise any right of set–off or

counterclaim it may have and to apply the amount subject to such exercise to

the payment of indebtedness of the Company other than its indebtedness

hereunder.  The Company agrees, to the

fullest extent it may effectively do so under applicable law, that any holder

of a participation in a Loan or Letter of Credit Liability, if acquired

pursuant to the foregoing arrangements or if the Company has otherwise received

notice of the granting of such participation, may exercise rights of set–off

or counterclaim and other rights with respect to such participation as fully as

if such holder of a participation were a direct creditor of the Company in the

amount of such participation.

Section 9.05. Amendments and Waivers.  Any provision of this Agreement or the Notes

may be amended or waived if, but only if, such amendment or waiver is in

writing and is signed by the Company and the Required Banks (and, if the rights

or duties of any Issuing Bank or the Agent are affected thereby, by the Agent);

provided that no such amendment

or waiver shall, unless signed by all the Banks, (i) increase or decrease the

Commitment of any Bank (except for a ratable decrease in the Commitments of all

Banks) or subject any Bank to any additional obligation, (ii) reduce the

principal of or rate of interest on any Loan or the amount to be reimbursed in

respect of any Letter of Credit or any interest thereon, or any fees hereunder

(other than any fees referred to in Section 2.09(b)(ii) or Section 2.18(b)(ii)

which may be mutually agreed between the Company and the Issuing Bank from time

to time), (iii) postpone the date fixed for any payment of principal of or

interest on any Loan or for reimbursement in respect of any Letter of Credit or

any fees hereunder or for the termination of any Commitment (except for an

extension of the Commitments issued by each Bank whose Commitment is extended),

or (except as expressly provided in Section 2.18) the expiry date of any Letter

of Credit, or (iv) change the percentage of the Commitments or of the aggregate

unpaid principal amount of the Loans, or the number of Banks, which shall be

required for the Banks or any of them to take any action under this Section or

any other provision of this Agreement.

Section 9.06. Successors and Assigns.  (a) The provisions of this Agreement shall

be binding upon and inure to the benefit of the parties hereto and their

respective successors and assigns, except that the Company may not assign or

otherwise transfer any of its rights under this Agreement without the prior

written consent of all Banks.

(b)   Any Bank may at any time grant to one or more

banks or other institutions (each a “Participant”)

participating interests in its Commitment, including all or a portion of its

Loans and/or Letter of Credit Liabilities at the time

 

50

 

owing to it.  In the event of any such grant by a Bank of

a participating interest to a Participant, whether or not upon notice to the

Company and the Agent, such Bank shall remain responsible for the performance

of its obligations hereunder, and the Company and the Agent shall continue to deal

solely and directly with such Bank in connection with such Bank’s rights and

obligations under this Agreement.  Any

agreement pursuant to which any Bank may grant such a participating interest

shall provide that such Bank shall retain the sole right and responsibility to

enforce the obligations of the Company hereunder including, without limitation,

the right to approve any amendment, modification or waiver of any provision of

this Agreement; provided that

such participation agreement may provide that such Bank will not agree to any

modification, amendment or waiver of this Agreement described in clause (i),

(ii), (iii) or (iv) of Section 9.05 without the consent of the

Participant.  The Company agrees that

each Participant shall, to the extent provided in its participation agreement,

be entitled to the benefits of Article 8 with respect to its participating

interest.  An assignment or other

transfer which is not permitted by subsection (c) or (d) below shall be given

effect for purposes of this Agreement only to the extent of a participating

interest granted in accordance with this subsection (b).

(c)   Any Bank may at any time assign to one or

more banks or other institutions (each an “Assignee”)

all, or a proportionate part (equivalent to an initial Commitment of not less

than $10,000,000) of its rights and obligations under this Agreement and its

Note, and such Assignee shall assume such rights and obligations, pursuant to

an Assignment and Assumption Agreement in substantially the form of Exhibit G

hereto executed by such Assignee and such transferor Bank, with (and subject

to) the subscribed consent (which may not be unreasonably withheld) of the

Company (so long as no Event of Default exists) and the Agent; provided that, if an Assignee is an

Approved Fund, an affiliate of such transferor Bank or was a Bank immediately

before such assignment, no such consent shall be required, and provided  further

that such assignment may, but need not, include rights of the transferor Bank

in respect of outstanding Competitive Bid Loans.  Upon execution and delivery of such instrument and payment by

such Assignee to such transferor Bank of an amount equal to the purchase price

agreed between such transferor Bank and such Assignee, such Assignee shall be a

Bank party to this Agreement and shall have all the rights and obligations of a

Bank with a Commitment as set forth in such instrument of assumption, and the

transferor Bank shall be released from its obligations hereunder to a

corresponding extent, and no further consent or action by any party shall be

required.  Upon the consummation of any

assignment pursuant to this subsection (c), the transferor Bank, the Agent and

the Company shall make appropriate arrangements so that, if required and

requested, a new Note is issued to the Assignee.  In connection with any such assignment, the transferor Bank shall

pay to the Agent an administrative fee for processing such assignment in the

amount of $2,500.  If the Assignee is

not incorporated under the laws of the United States of America or a state

thereof, it shall deliver to the Company and the Agent certification as to

exemption from deduction or withholding of any United States federal income

taxes in accordance with Section 8.04.

 

51

 

(d)   Any Bank may at any time assign all or any

portion of its rights under this Agreement and its Note to a Federal Reserve

Bank.  No such assignment shall release

the transferor Bank from its obligations hereunder.

(e)   No Assignee, Participant or other transferee

of any Bank’s rights shall be entitled to receive any greater payment under

Section 8.03 or 8.04 than such Bank would have been entitled to receive with

respect to the rights transferred, unless such transfer is made with the

Company’s prior written consent or by reason of the provisions of Section 8.02,

8.03 or 8.04 requiring such Bank to designate a different Applicable Lending

Office under certain circumstances or at a time when the circumstances giving

rise to such greater payment did not exist.

(f)    The Agent, acting solely for this purpose as

an agent of the Company, shall maintain at one of its offices in the State of

Delaware or New York a copy of each Assignment and Assumption Agreement

delivered to it and a register for the recordation of the names and addresses

of the Banks, and the Commitments of, and principal amount of the Loans owing

to and Letter of Credit Liabilities of, each Bank pursuant to the terms hereof

from time to time (the “Register”).  The entries in the Register shall be

conclusive, and the Company, the Agent and the Banks may treat each Person

whose name is recorded in the Register pursuant to the terms hereof as a Bank

hereunder for all purposes of this Agreement, notwithstanding notice to the

contrary.  The Register shall be

available for inspection by the Company and any Bank, at any reasonable time

and from time to time upon reasonable prior notice.

Section 9.07. Designated Banks.  (a) Subject to the provisions of this

subsection (a), any Bank may at any time designate an Eligible Designee to

provide all or a portion of the Loans to be made by such Bank pursuant to this

Agreement; provided that such

designation shall not be effective unless the Company and the Agent consent

thereto (which consents shall not be unreasonably withheld).  When a Bank and its Eligible Designee shall

have signed an agreement substantially in the form of Exhibit H hereto (a “Designation Agreement”) and the Company and

the Agent shall have signed their respective consents thereto, such Eligible

Designee shall become a Designated Bank for purposes of this Agreement.  The Designating Bank shall thereafter have

the right to permit such Designated Bank to provide all or a portion of the

Loans to be made by such Designating Bank pursuant to Section 2.01 or 2.03, and

the making of such Loans or portion thereof shall satisfy the obligation of the

Designating Bank to the same extent, and as if, such Loans or portion thereof

were made by the Designating Bank.  As

to any Loans or portion thereof made by it, each Designated Bank shall have all

the rights that a Bank making such Loans or portion thereof would have had

under this Agreement and otherwise; provided

that (x) its voting rights under this Agreement shall be exercised solely by

its Designating Bank and (y) its Designating Bank shall remain solely

responsible to the other parties hereto for the performance of such Designated

Bank’s obligations under this Agreement, including its obligations in respect

of the Loans or portion thereof made by it. 

No additional Note shall be required to evidence

 

52

 

the Loans or portion thereof

made by a Designated Bank; and the Designating Bank shall be deemed to hold its

Note as agent for its Designated Bank to the extent of the Loans or portion

thereof funded by such Designated Bank. 

Each Designating Bank shall act as administrative agent for its

Designated Bank and give and receive notices and other communications on its behalf.  Any payments for the account of any

Designated Bank shall be paid to its Designating Bank as administrative agent

for such Designated Bank and neither the Company nor the Agent shall be

responsible for any Designating Bank’s application of such payments.  In addition, any Designated Bank may, with

notice to (but without the prior written consent of) the Company and the Agent,

(i) assign all or portions of its interest in any Loans to its Designating Bank

or to any financial institutions consented to by the Company and the Agent that

provide liquidity and/or credit facilities to or for the account of such

Designated Bank to support the funding of Loans or portions thereof made by it

and (ii) disclose on a confidential basis pursuant to a confidentiality

agreement satisfactory in form and substance to the Company any non-public

information relating to its Loans or portions thereof to any rating agency,

commercial paper dealer or provider of any guarantee, surety, credit or

liquidity enhancement to such Designated Bank.

(b)   Each party to this Agreement agrees that it

will not institute against, or join any other person in instituting against,

any Designated Bank any bankruptcy, insolvency, reorganization or other similar

proceeding under any federal or state bankruptcy or similar law, for one year

and a day after all outstanding senior indebtedness of such Designated Bank is

paid in full.  The Designating Bank for

each Designated Bank agrees to indemnify, save, and hold harmless each other

party hereto for any loss, cost, damage and expense arising out of its

inability to institute any such proceeding against such Designated Bank.  This subsection (b) shall survive the

termination of this Agreement.

Section 9.08. Collateral.  Each of the Banks represents to the Agent and each of the other

Banks that it in good faith is not relying upon any “margin stock” (as defined

in Regulation U) as collateral in the extension or maintenance of the credit

provided for in this Agreement.

Section 9.09. Governing Law; Submission to Jurisdiction.  This Agreement and each Note shall be

governed by and construed in accordance with the laws of the State of New

York.  The Company hereby submits to the

nonexclusive jurisdiction of the United States District Court for the Southern

District of New York and of any New York State court sitting in New York City

for purposes of all legal proceedings arising out of or relating to this

Agreement or the transactions contemplated hereby.  The Company irrevocably waives, to the fullest extent permitted

by law, any objection which it may now or hereafter have to the laying of the

venue of any such proceeding brought in such a court and any claim that any

such proceeding brought in such a court has been brought in an inconvenient

forum.

 

53

 

Section 9.10. Counterparts; Integration.  This Agreement may be signed in any number

of counterparts, each of which shall be an original, with the same effect as if

the signatures thereto and hereto were upon the same instrument.  This Agreement constitutes the entire

agreement and understanding among the parties hereto and supersedes any and all

prior agreements and understandings, oral or written, relating to the subject

matter hereof.

Section 9.11. Waiver of Jury Trial.  EACH OF THE COMPANY, THE AGENT AND THE BANKS

HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL

PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS

CONTEMPLATED HEREBY.

Section 9.12. Confidentiality.  Each of the Agent, the Issuing Bank and the

Banks agree to maintain the confidentiality of the Information (as defined

below), except that Information may be disclosed (a) to them and their

affiliates’ directors, officers, employees and agents, including accountants,

legal counsel and other advisors (it being understood that the Persons to whom

such disclosure is made will be informed of the confidential nature of such

Information and instructed to keep such Information confidential), (b) to the

extent requested by any regulatory authority, (c) to the extent required by

applicable laws or regulations or by any subpoena or similar legal process, (d)

to any other party to this Agreement, (e) in connection with the exercise of

any remedies hereunder or any suit, action or proceeding relating to this

Agreement or the enforcement of rights hereunder, (f) subject to an agreement

containing provisions substantially the same as those of this Section (in the

case of the following clauses (i) and (ii)), (i) to any assignee of or

Participant in, or any prospective assignee of or Participant in, any of its

rights or obligations under this Agreement, (ii) to any direct or indirect

contractual counterparty in swap agreements or such contractual counterparty’s

professional advisor (so long as such contractual counterparty or professional

advisor to such contractual counterparty agrees to be bound by the provisions

of this Section 9.12) or (iii) to the National Association of Insurance

Commissioners or any similar organization or any nationally recognized rating agency

that requires access to information about a Bank’s investment portfolio in

connection with ratings issues with respect to such Bank, (g) with the consent

of the Company or (h) to the extent such Information (i) becomes publicly

available other than as a result of a breach of this Section or (ii) becomes

available to the Agent, the Issuing Bank or any Bank on a non-confidential

basis from a source other than the Company. 

For the purposes of this Section, “Information” means all

information received directly or indirectly from the Company relating to the

Company or its business, other than any such information that is available to

the Agent, the Issuing Bank or any Bank on a non-confidential basis prior to

disclosure by the Company.

 

54

 

IN WITNESS WHEREOF, the

parties hereto have caused this Agreement to be duly executed by their

respective authorized officers as of the day and year first above written.

	

   

  	

  ROCKWELL COLLINS, INC.

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  	 

	

   

  	

  Title:

  
	

   

  	

  Address:

  
	

   

  	

  Attention:

  
	

   

  	

  Telecopy:

  
	

   

  	

   

  
	

  Commitments

  	

   

  	 

	

   

  	

   

  	 

	

  $49,000,000

  	

  JPMORGAN CHASE BANK

  	 

	

   

  	

   

  	 

	

   

  	

  By:

  	

   

  	 

	

   

  	

  Title:

  	 

	

   

  	

  Address:

  	 

	

   

  	

  Attention:

  	 

	

   

  	

  Telecopy:

  	 

	

   

  	

   

  	 

	

  $49,000,000

  	

  BANK OF AMERICA, N.A.

  	 

	

   

  	

   

  	 

	

   

  	

  By:

  	

   

  	 

	

   

  	

  Title:

  	 

	

   

  	

  Address:

  	 

	

   

  	

  Attention:

  	 

	

   

  	

  Telecopy:

  	 

	

   

  	

   

  	 

	

  $25,000,000

  	

  MIZUHO CORPORATE BANK,

  LTD.

  	 

	

   

  	

   

  	 

	

   

  	

  By:

  	

   

  	 

	

   

  	

  Title:

  	 

	

   

  	

  Address:

  	 

	

   

  	

  Attention:

  	 

	

   

  	

  Telecopy:

  	 

	

   

  	

   

  	 

 

 

	

  $49,000,000

  	

  UBS AG, STAMFORD BRANCH

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

  Title: 

  
	

   

  	

  Address:

  
	

   

  	

  Attention:

  
	

   

  	

  Telecopy:

  
	

   

  	

   

  
	

  $49,000,000

  	

  BANK ONE, NA (MAIN OFFICE

  CHICAGO)

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

  Title:

  
	

   

  	

  Address:

  
	

   

  	

  Attention:

  
	

   

  	

  Telecopy:

  
	

   

  	

   

  
	

  $40,000,000

  	

  CITICORP USA, INC. (CUSA)

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

  Title:

  
	

   

  	

  Address:

  
	

   

  	

  Attention:

  
	

   

  	

  Telecopy:

  
	

   

  	

   

  
	

  $49,000,000

  	

  WACHOVIA BANK, NATIONAL

  ASSOCIATION

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

  Title:

  
	

   

  	

  Address:

  
	

   

  	

  Attention:

  
	

   

  	

  Telecopy:

  
	

   

  	

   

  
	

  $40,000,000

  	

  MELLON BANK, N.A.

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

  Title:

  
	

   

  	

  Address:

  
	

   

  	

  Attention:

  
	

   

  	

  Telecopy:

  
	

   

  	

   

  

 

 

	

  $40,000,000

  	

  WELLS FARGO BANK, NATIONAL

  ASSOCIATION

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

  Title:

  
	

   

  	

  Address:

  
	

   

  	

  Attention:

  
	

   

  	

  Telecopy:

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

  Title:

  
	

   

  	

  Address:

  
	

   

  	

  Attention:

  
	

   

  	

  Telecopy:

  
	

   

  	

   

  
	

  $25,000,000

  	

  THE BANK OF NEW YORK

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

  Title:

  
	

   

  	

  Address:

  
	

   

  	

  Attention:

  
	

   

  	

  Telecopy:

  
	

   

  	

   

  
	

  $30,000,000

  	

  CREDIT LYONNAIS NEW YORK

  BRANCH

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

  Title:

  
	

   

  	

  Address:

  
	

   

  	

  Attention:

  
	

   

  	

  Telecopy:

  
	

   

  	

   

  
	

  $25,000,000

  	

  U.S. BANK NATIONAL

  ASSOCIATION

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

  Title:

  
	

   

  	

  Address:

  
	

   

  	

  Attention:

  
	

   

  	

  Telecopy:

  

 

 

	

   

  	

   

  
	

  $30,000,000

  	

  KEY BANK NATIONAL

  ASSOCIATION

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

  Title:

  
	

   

  	

  Address:

  
	

   

  	

  Attention:

  
	

   

  	

  Telecopy:

  
	

   

  	

   

  
	

  Total Commitments 

  	

   

  
	

   

  	

   

  
	

  $500,000,000

  	

   

  
	

   

  	

   

  
	

   

  	

  JPMORGAN CHASE BANK

  as Agent

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

  Title:

  
	

   

  	

  Address:

  
	

   

  	

  Attention:

  
	

   

  	

  Telecopy:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00041-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00041-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00041-of-00352.parquet"}]]