Document:

Subordinated Debt Facility Agreement dated 30 September 2003

 EXHIBIT 4.18 
  
 Dated 30 September 2003 
  
  
 ALSTOM 
 as Borrower 
  
  
 BNP PARIBAS 
  
 CREDIT AGRICOLE INDOSUEZ 
  
 CREDIT LYONNAIS 
  
 SOCIETE GENERALE 
  
  
 and 
  
  
 CAISSE FRANCAISE DE DEVELOPPEMENT INDUSTRIEL 
 as Arrangers 
  
  
 and 
  
  
 THE BANKS NAMED HEREIN 
 as Lenders

  
  
 and 
  
  
 BNP PARIBAS 
 as Agent 

 

  
 EUR 1,563,399,105 
 SUBORDINATED DEBT FACILITY 
 AGREEMENT 
  

 
  
  
 

 

 CONTENTS 
  

	Clause	  	 	  	Page
			
	 1.
	  	INTERPRETATION	  	1
			
	 2.
	  	THE FACILITY	  	18
			
	 3.
	  	CONDITIONS PRECEDENT TO SIGNING	  	20
			
	 4.
	  	DRAWDOWN	  	20
			
	 5.
	  	REPAYMENT	  	23
			
	 6.
	  	PREPAYMENT OF ADVANCES UNDER TRANCHE A	  	23
			
	 7.
	  	CANCELLATION	  	23
			
	 8.
	  	INTEREST	  	24
			
	 9.
	  	FEES	  	26
			
	 10.
	  	TAXES	  	26
			
	 11.
	  	ILLEGALITY	  	28
			
	 12.
	  	INCREASED COSTS	  	29
			
	 13.
	  	CHANGE IN MARKET CONDITIONS	  	30
			
	 14.
	  	MITIGATION	  	31
			
	 15.
	  	PAYMENTS	  	31
			
	 16.
	  	REPRESENTATIONS AND WARRANTIES	  	34
			
	 17.
	  	INFORMATION	  	39
			
	 18.
	  	UNDERTAKINGS	  	42
			
	 19.
	  	DEFAULT AND EARLY REPAYMENT	  	53
			
	 20.
	  	DEFAULT INTEREST	  	57
			
	 21.
	  	INDEMNITIES	  	58
			
	 22.
	  	THE AGENT AND ARRANGERS	  	60
			
	 23.
	  	SET-OFF/PRO RATA SHARING	  	64
			
	 24.
	  	EXPENSES AND STAMP DUTY	  	65
			
	 25.
	  	CALCULATIONS AND EVIDENCE	  	66
			
	 26.
	  	TRANSFER	  	66
			
	 27.
	  	REMEDIES, WAIVERS, AMENDMENTS AND CONSENTS	  	69
			
	 28.
	  	COMMUNICATIONS	  	70
			
	 29.
	  	PARTIAL INVALIDITY	  	73
			
	 30.
	  	NATURE OF RIGHTS AND OBLIGATIONS	  	73
			
	 31.
	  	CONFIDENTIALITY UNDERTAKING	  	73
			
	 32.
	  	GOVERNING LAW AND JURISDICTION	  	74

  

 Page i 

	 33.
	  	ENGLISH AND FRENCH LANGUAGE VERSIONS	  	75
			
	 34.
	  	FRENCH LANGUAGE VERSIONS	  	75
		
	 SCHEDULE 1 CONDITIONS PRECEDENT TO SIGNING
	  	77
		
	 SCHEDULE 2 COMPANY CERTIFICATE
	  	79
		
	 SCHEDULE 3 CONDITIONS PRECEDENT TO ALL DRAWDOWNS
	  	84
		
	 SCHEDULE 4 FORM OF TRANSFER AGREEMENT
	  	85
		
	 SCHEDULE 5 DRAWDOWN NOTICE
	  	88
		
	 SCHEDULE 6 TIMETABLES
	  	90
		
	 SCHEDULE 7 MANDATORY COSTS
	  	91
		
	 SCHEDULE 8 LIST OF MATERIAL SUBSIDIARIES
	  	94
		
	 SCHEDULE 9 TAUX EFFECTIF GLOBAL LETTER
	  	95
		
	 SCHEDULE 10 EXISTING SECURITY
	  	97
		
	 SCHEDULE 11 FORM OF CONFIDENTIALITY UNDERTAKING CONFIDENTIALITY
LETTER (SELLER)
	  	98
		
	 SCHEDULE 12 EXISTING EVENTS OF DEFAULT OR POTENTIAL EVENTS OF DEFAULT
	  	103
		
	 SCHEDULE 13 PWC ADDITIONAL SCOPE
	  	110

  

 Page ii 

 THIS AGREEMENT is made on 30 September 2003 
  
 BETWEEN: 
  

	(1)	 	ALSTOM (the Borrower); 

  

	(2)	 	BNP PARIBAS, CREDIT AGRICOLE INDOSUEZ, CREDIT LYONNAIS, SOCIETE GENERALE and CAISSE FRANCAISE DE DEVELOPPEMENT INDUSTRIEL as arrangers (the
Arrangers); 

  

	(3)	 	THE BANKS AND FINANCIAL INSTITUTIONS listed as Lenders on the signature pages of this Agreement (the Lenders); 

  

	(4)	 	BNP PARIBAS as agent for the Lenders (the Agent). 

  
 BACKGROUND: 
  
 The Lenders are willing to make available to the Borrower (i) a euro term loan facility of EUR 1,200,000,000 and (ii) a euro revolving credit facility of up to EUR
363,399,105. 
  
 IT IS
AGREED as follows: 
  
 1.      INTERPRETATION 
  
 1.1    Definitions: In this Agreement, except to the extent that the context requires otherwise: 
  
 Advance means an advance made or to be made by the Lenders under this Agreement, whether under Tranche A or under Tranche B, or, as the case may be, the
outstanding principal amount of any such advance; 
  
 Affected Facilities
means (i) the EUR 976,300,000 multicurrency revolving credit agreement dated 3 August 2001 between, inter alios, the Borrower, BNP Paribas as agent and the banks named therein, as amended by an amendment letter dated 28 March 2002 and
as amended and restated by a second amendment agreement dated 8 April 2003 and (ii) the EUR 1,250,000,000 Credit Agreement; 
  
 Affiliate means, in respect of any Person, any Subsidiary or holding company of that Person, or any Subsidiary of any such holding company, or any other
Person in which that Person or any such holding company or Subsidiary owns at least 20% of the share capital or the like; 
  
 Agency means, in respect of a state, any agency, authority, central bank, department, government, legislature, minister, ministry, official or public or
statutory Person (whether autonomous or not) of, or of the government of, that state or any political sub-division therein or thereof; 
  
 Applicable Accounting Principles means those accounting principles, standards and practices generally accepted in France on which the preparation of the
audited consolidated accounts of the Borrower and the Consolidated Group as at 31 March 

 2003 and for the twelve month period ended on that date was based and those accounting policies which were used in the
preparation of those accounts; 
  
 Auditors means Barbier Frinaut et
Associés and Deloitte & Touche or any other firm of independent public accountants of international standing which may be appointed as its auditors from time to time by the Borrower; 
  
 Authorised Signatory means any of Philippe Jaffré, Marc Haestier,
Olivier Klaric or Pierre-Jean Bosio or any other person of similar status nominated by the Borrower and approved by the Agent (such approval not to be unreasonably withheld or delayed); 
  
 Available Commitment means, in relation to a Lender, its Tranche A Available Commitment or its Tranche B Available Commitment,
as the case may be; 
  
 Billets de Trésorerie means the
billets de trésorerie issued or to be issued by the Borrower pursuant to article 2.5 of the Protocol and which are for the time being outstanding; 
  
 Bonding Guarantee Facility Agreement means the EUR 3,500,000,000 bonding guarantee facility agreement dated 29 August 2003
between, inter alios, ALSTOM Holdings, HSBC Bank plc as agent and the banks named in that agreement; 
  
 Bonds means the EUR 550,000,000 bonds of the Borrower maturing in February 2004 listed on the Luxembourg Stock Exchange; 
  
 Bridge Facility Agreement means the EUR 600,000,000 revolving credit facility
agreement dated 25 March 2003 and originally made between the Borrower and each of Bayerische Landesbank, Paris Branch, BNP Paribas, CCF, CDC Finance—CDC IXIS, Commerzbank Aktiengesellschaft, Paris Branch, Credit Agricole Indosuez, Credit
Industriel et Commercial, Credit Lyonnais, JPMorgan Chase Bank, Paris Branch, Natexis Banques Populaires, Société Générale, the banks named therein and BNP Paribas as agent, as amended by a first amendment agreement dated
16 June 2003; 
  
 Business Day means a day (other than
Saturday or Sunday) on which: 
  

	(a)	 	banks are open for business generally in London and Paris; and 

  

	(b)	 	in relation to any payment in euro to be made on that day, any TARGET Day; 

  
 Cancellation Required Amount means a minimum of EUR 25,000,000 and an integral multiple of EUR 5,000,000; 
  
 Cash Equivalent means any demand or time deposits and certificates of deposit
of any credit institution whose short-term unsecured, unguaranteed debt obligations are rated at least P-1 by Moody’s or A-1 by S&P; 
  
 CFDI means Caisse Française de Développement Industriel, whose obligations hereunder are guaranteed by the French State; 
  

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 Commitments means, in relation to any Lender, the sum of its Tranche A Commitment and its Tranche B
Commitment; 
  
 Consolidated Group means, at any particular time,
the Borrower and all its consolidated Subsidiaries (and member of the Consolidated Group shall be construed accordingly); 
  
 Consolidated Net Financial Expense means, with respect to the financial covenant contained in Clause 18.6(a) (Interest Coverage) at any time,
interest expense plus securitisation expenses less interest income, as shown in the Latest Financial Statements at such time; 
  
 Consolidated Net Worth means, with respect to the financial covenant contained in Clause 18.6(b) (Consolidated Net Worth) at any time, the aggregate
of: 
  

	(a)	 	paid-up share capital (including the ORA and share capital arising from any share capital increase after the date hereof) plus additional paid-in capital plus reserves, cumulative
translation adjustments and net income; and 

  

	(b)	 	minority interests excluding any dividend or other distribution declared or made by the Borrower or (except insofar as attributable to the Borrower) any Subsidiary of the Borrower
out of profit earned up to and including the date of the relevant consolidated balance sheet to the extent such distribution is not provided for in such balance sheet, 

  
 all as shown in the Latest Financial Statements at such time; 
  
 Default Interest Period means a period by reference to which interest is calculated on an overdue sum; 
  
 Default Interest Rate means the relevant rate per annum (as determined by the
Agent) specified in Clause 20.2 (Default Interest Periods and Rates); 
  
 Deferred Interest means: 
  

	(a)	 	that portion of interest in respect of each Advance (whether or not such Advance has been repaid) which has accrued on each Interest Payment Date in respect of that Advance and
corresponds to the Deferred Margin; and 

  

	(b)	 	interest on the interest referred to in (a) above calculated at the same rate and by reference to the same Interest Periods as the first Advance under Tranche A from (and including)
the first Interest Payment Date in respect of Tranche A which follows the first anniversary of the Interest Payment Date on which the interest referred to in (a) above accrued, and compounded annually thereafter; 

  
 Deferred Margin means 1.50% per annum, being one third of the Margin;

  
 Directive means any present or future directive, regulation,
request, requirement, rule or credit restraint programme of the European Union, of any Agency of any state or of any self-regulating organisation (whether or not having the force of law but, if not 
  

 Page 3 

 having the force of law, only if compliance with the Directive is in accordance with the general practice of Persons to
whom the Directive is intended to apply); 
  
 Disposal means a sale,
granting of a lease or making of an assignment, conveyance, transfer or gift or the disposal of any form of ownership, title, estate or interest (including, without limitation, by way of securitisation, sale and leaseback and/or sub-participation)
and Dispose has the corresponding meaning; 
  
 Early Repayment
Event means one of the events mentioned in Clause 19.2; 
  
 EBIT means EBIT as shown on the Latest Financial Statements of the Borrower; 
  
 EBITDA means, with respect to the financial covenant contained in Clauses 18.6(a) (Interest Cover), 18.6(d) (Total Net Debt Leverage) and 18.6(e) (Minimum EBITDA) at any time and for
an applicable period on a consolidated basis, EBIT plus depreciation and amortisation as set out in the Borrower’s cash flow statements less goodwill amortisation and less capital gains on disposal of investments, in each case as shown in the
Latest Financial Statements of the Borrower at such time; 
  
 Environmental
Authorisations means all authorisations necessary under Environmental Law for the carrying out of the business of the Group and the operation and maintenance of the Assets of the Group; 
  
 Environmental Law means any law, Directive or any Consent in force from time to
time relating to: 
  

	(a)	 	the carrying out of any activity, the existence of any condition or other phenomenon or the occurrence of any event which has or could have a detrimental impact on the environment
or could harm any physical entity whether living or not or impair the well-being or normal functioning of any physical entity which could reasonably be expected to be affected and which in any such case has as a purpose or effect the protection or
enhancement of the environment generally or in a particular locality; 

  

	(b)	 	the control of waste; 

  

	(c)	 	contaminated land or water; or 

  

	(d)	 	air emissions; 

  
 EONIA means, in relation to any Default Interest Period: 
  

	(a)	 	the rate per annum which appears on page 247 (or any replacement for that page) of the Telerate screen (or such other service as may replace it for the purposes of displaying
overnight rates calculated by the European Central Bank); or 

  

	(b)	 	if no such rate appears on the Telerate screen (or such other service as the case may be), the arithmetic mean (rounded upwards to 4 decimal places) of the 

 

 Page 4 

	 	 
rates, as supplied to the Agent at its request, quoted by the Reference Banks to leading banks in the Inter-bank Market, 

  
 at or about 5:00 p.m. Paris time on the applicable Rate Fixing Day for the offering of
overnight deposits in euro; 
  
 EUR 1,250,000,000 Credit Agreement
means the EUR 1,250,000,000 multicurrency revolving credit agreement dated 19 April 1999 between, inter alios, the Borrower, BNP Paribas as agent and the banks named therein, as amended by an amendment letter dated 17 May 2000 and by an
amendment letter dated 28 March 2002 and as amended and restated by a third amendment agreement dated 8 April 2003; 
  
 EURIBOR means, in relation to any Interest Period or Default Interest Period: 
  

	(a)	 	the rate per annum which appears on page 248 (or any replacement for that page) on the Telerate screen (or such other service as may replace it for the purpose of displaying the
percentage rate per annum determined by the Banking Federation of the European Union for deposits in euro); or 

  

	(b)	 	if no such rate appears on the Telerate screen (or such other service as the case may be), the arithmetic mean (rounded upward to 4 decimal places) of the rates, as supplied to the
Agent at its request, quoted by the Reference Banks to leading banks in the Inter-bank Market, 

  
 at or about 11:00 a.m. Brussels time (in the case of (a) above) or Paris time (in the case of (b) above) on the applicable Rate Fixing Day for the offering of deposits in euro for the same period as the relevant
Interest Period or Default Interest Period (or, if the periods are not the same, such period, if any, as the Agent determines to be substantially the same); 
  
 euro, EUR or € means the single currency of the member states of the European Union participating in Economic and Monetary Union as
contemplated in the Treaty of Rome of 25 March 1957 establishing the European Community, as amended by the Maastricht Treaty on European Union (which was signed in Maastricht on 7 February 1992 and came into force on 1 November 1993) and by the
Treaty of Amsterdam (signed in Amsterdam on 2 October 1997), as further amended from time to time; 
  
 Event of Default means one of the events mentioned in Clause 19.1 (Events of Default); 
  
 Excluded Default means any actual or potential default, event of default or the like (howsoever described) under an agreement described in Schedule 12 and
which results from and would not have occurred but for a circumstance or event which has occurred prior to, and is subsisting on, the date of this Agreement and is listed in relation to that agreement in Schedule 12. However, any such actual or
potential default, event of default or the like (howsoever described) shall cease to be an Excluded Default if any Person or group of Persons so entitled declares due and payable or puts on demand or accelerates any Indebtedness of the Borrower or
any 
  

 Page 5 

 member of the Group, or cancels or suspends any commitment under any agreement to which the Borrower or any member of the
Group is a party; 
  
 Extended Facilities means the credit
facilities provided under the Extended Facility Agreements; 
  
 Extended Facility Agreements means the EUR 400,000,000 revolving credit agreement dated 28 March 2002 between, inter alios, the Borrower, BNP Paribas as agent and the banks named therein, the EUR 50,000,000 bilateral
credit agreement dated 30 April, 2002 between the Borrower and BNP Paribas and the EUR 25,000,000 credit agreement dated 23 April, 2002 between the Borrower and JPMorgan Chase Bank, Paris Branch in each case, as amended by an amendment agreement
dated 25 March 2003 and by a second amendment agreement dated 3 July 2003; 
  
 Facility has the meaning ascribed to it in Clause 2.1; 
  
 Facility Office means, in relation to a Lender or any New Lender at any particular time, the office through which it is then acting for the purpose of this Agreement; 
  
 Final Maturity Date means the Tranche A Maturity Date or the Tranche B Maturity
Date, as the case may be; 
  
 Financial Commitments means any
Indebtedness granted at any time including for or in respect of (a) money borrowed or raised (whether or not for cash) by whatever means, including the ORA, the TSDD, the TSDDRA, bonds (but excluding, for the avoidance of doubt, any bonding
guarantees provided in the ordinary course of business save with respect to any indemnity or counter-indemnity obligations of the Borrower to any provider of such bonding guarantees contained in a bonding guarantee facility agreement to the extent
that payment has been made by the guarantor thereunder), notes and other debt instruments issued, other financial debts and bank overdrafts, acceptances, discounting, factoring, financial leases, hire purchase, sale-and-lease back, securitisation
transactions, sale-and-repurchase and any form of off-balance sheet financing, (b) the deferred purchase price of Assets or services (other than goods or services obtained on normal commercial terms in the ordinary course of trading), (c) for the
purposes of Clause 19.1(d) (Cross Default) only, any amounts due and payable under derivatives or hedging instruments, or (d) any Guarantee in respect of any Indebtedness falling within (a), (b) or (c) above; 
  
 G7 Banks means BNP Paribas, CCF, CDC Finance—CDC IXIS, Crédit
Agricole Indosuez, Crédit Industriel et Commercial, Crédit Lyonnais, Natexis Banques Populaires, and Société Générale; 
  

Group means at any particular time, the Borrower and its Subsidiaries; 
  
 Group Guarantee means a Guarantee from any member of the Consolidated Group or a Subsidiary or an Affiliate of such a member
(other than an SPP described in paragraph (i) of the definition of “Project Finance Indebtedness”); 
  
 Indebtedness means, with respect to any Person (the Relevant Person), any obligation (whether present or future, actual or contingent, secured or unsecured, as 
  

 Page 6 

 
principal, surety or otherwise) (a) of such Relevant Person for the payment or repayment of money, or (b) of any other Person for the payment or repayment of
money secured by Security on Assets of the Relevant Person, whether or not the Relevant Person is primarily liable in respect of any obligation so secured; 
  
 Information Package means: 
  

	(a)	 	the Borrower’s annual report and audited financial statements in respect of the financial year ended on 31 March 2003 as approved by a shareholders meeting held on 2 July 2003;
 

  

	(b)	 	the minutes relating to a shareholders meeting held on 2 July 2003 together with all documents supplied to the shareholders at, or in connection with, that meeting;

  

	(c)	 	the Borrower’s announcements of 6 August 2003 and 22 September 2003 in respect of its financial restructuring; 

  

	(d)	 	the Protocol; 

  

	(e)	 	the slide presentations made by ALSTOM to the Lenders on 2 August 2003 and 20 September 2003; 

  

	(f)	 	the September Liquidity Plan;  

  

	(g)	 	the Litigation Report; and 

  

	(h)	 	the T&D Letter; 

  
 Insolvency Proceeding means, in respect of any Person, such Person enters into a règlement amiable or liquidation or any other arrangements or composition with its creditors or such
Person is in a situation of cessation des paiements or a judgement is given for a liquidation judiciaire, redressement judiciaire or a plan cession in respect of its business or such Person is subject to any similar
proceedings under the law of any jurisdiction in which that Person is incorporated, domiciled or resident or carries on business or has assets; 
  
 Intellectual Property means patents and patent applications, trade and service marks and applications (and goodwill associated with such applications),
brand and trade names, copyrights and rights in the nature of copyright, design rights, registered designs and applications for registered designs, trade secrets, know-how and all other intellectual property rights throughout the world and all
rights under any agreements relating to the use or exploitation of such rights; 
  
 Inter-bank Market means: 
  

	(a)	 	in the case of euros, the European inter-bank market, and 

  

	(b)	 	in any other case, the London inter-bank market; 

  
 Interest Payment Date means the last day of each Interest Period; 
  

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 Interest Period means the period determined in accordance with Clauses 8.1 and 8.2; 
  
 Investment Grade means, in respect of any Person, that its long term unsecured,
unsubordinated debt has been assigned a credit rating of at least Baa3 by Moody’s or BBB- by S&P;  
  
 Investments means (i) any debt securities issued by the governments of any member state of the European Union, Switzerland or the United States, or (ii) any
debt securities maturing not more than 1 year after the date of acquisition, issued by any commercial banking institution or any company (other than a Subsidiary of the Borrower) organised under the laws of any of the countries referred to above and
whose short term debt rating, as at the time of any investment, is at least P-1 or A-1 according to Moody’s or S&P, respectively, or any successor thereto; 
  
 Latest Financial Statements means the Original Financial Statements or, if applicable, the financial statements and accounts
of the Consolidated Group most recently delivered to the Agent pursuant to Clauses 17.2 (Audited Accounts) and 17.3 (Semi-Annual Information); 
  
 Liquidity Plan means any liquidity plan certified by the Chief Financial Officer of the Borrower updating the September
Liquidity Plan and substantially in the same form as the long form September Liquidity Plan; 
  
 Litigation Report means the internal annual litigation report of the Borrower prepared in the context of the disclosures made in the Borrower’s annual accounts, as well as its subsequent updates
provided to the agent and the banks under the Affected Facilities and to the Agent and the Lenders pursuant hereto; 
  
 Majority Lenders means Lenders whose Commitments (whether drawn or undrawn) together exceed 66 2/3% of the Total Commitments or, once the Available Commitments equal zero, Lenders the amounts of whose Outstandings together exceed 66 2/3% of the amount of the total Outstandings; 
  
 Mandatory Costs means, in relation to any Interest Period or Default Interest
Period (or part of an Interest Period or Default Interest Period) relating to any Lender’s share of an Advance or overdue sum, the percentage rate per annum determined by that Lender in accordance with Schedule 7 (Mandatory Costs);

  
 Margin means in respect of a Tranche A Advance or a Tranche B
Advance, 4.50% per annum of which one third is Deferred Margin; 
  
 Material
Adverse Effect means any event or circumstance which has a material adverse effect (a) on the financial condition or business of the Borrower or the Group taken as a whole, or (b) on the ability of the Borrower to perform and comply with its
obligations under this Agreement; 
  
 Material Subsidiary means, at
any time, any Subsidiary of the Borrower which is named in the list of Subsidiaries set out in Schedule 8 (List of Material Subsidiaries) (including ALSTOM Holdings) or in any such revised list as shall be provided by the Borrower to the
Agent together with its annual consolidated accounts and semi-annual 
  

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and quarterly financial information specified in Clause 17.9 (Material Subsidiaries), provided that a Subsidiary shall in all cases be a Material
Subsidiary if: 
  

	(a)	 	it represents 5% or more of the consolidated revenues of the Group calculated, by reference to such consolidated accounts of the Borrower and the accounts of each Subsidiary for the
period covered by such consolidated accounts of the Borrower or, if not available, the closest period thereto; or 

  

	(b)	 	it controls directly or indirectly, alone or with other members of the Group, a Material Subsidiary, 

  
 provided that all Material Subsidiaries shall represent in aggregate not less than 70% of the consolidated revenues of the Group for the
period in respect of which such accounts were prepared or financial information relates, as the case may be; 
  
 Moody’s means Moody’s Investors Services; 
  
 Net Cash Proceeds means the cash proceeds from the disposal of assets, having deducted, for the avoidance of doubt: 
  

	(a)	 	the tax liability arising from such disposal; 

  

	(b)	 	the reasonable costs, commissions and expenses incurred in relation to such disposal; and 

  

	(c)	 	any Indebtedness of a Subsidiary related to such disposal under any Financial Commitments which are either transferred or required to be repaid in order to effect such disposal;

  
 New Lender means: 
  

	(a)	 	a Person to which a Lender seeks to assign (or, as the case may be, has assigned) all or part of its rights under Clause 26.3 (Transfer or Assignment by Lenders), but does
not seek to transfer all or part of its obligations under that clause; or 

  

	(b)	 	a bank or financial institution to which a Lender seeks to transfer (or, as the case may be, has transferred) all or part of its obligations under Clause 26.3 (Transfer or
Assignment byLenders), 

  
 and in each case, to which the
assignment or transfer of such rights and/or obligations is permitted by applicable law; 
  
 ORA means the issue of obligations remboursables en actions referred to, and on the terms set out, in article 3.4 of the Protocol in an amount not less than EUR 900,000,000; 
  
 Original Financial Statements means the audited consolidated financial
statements of the Consolidated Group for the period of 12 months ending 31 March 2003; 
  

 Page 9 

 Outstandings means, in relation to a Lender at any particular time, the aggregate principal amount of its
share of all (if any) Advances outstanding at that time; 
  
 Place of
Payment means the principal financial centre of the country of the currency to be paid (or, if there is more than one such centre, one of those centres as selected by the Agent); 
  
 Potential Event of Default means any event or circumstance which, if it continued after the giving of any notice, the expiry
of any grace period, and/or (as the case may be) the making of any determination by the Majority Lenders, provided for in Clause 19.1 (Events of Default), would become an Event of Default; 
  
 Prepayment Required Amount means a minimum of EUR 50,000,000 and an integral
multiple of EUR 25,000,000; 
  
 Project Finance Indebtedness means
any Indebtedness to finance the ownership, acquisition, development, operation or maintenance of an asset or business (a Project): 
  

	(a)    (i)	 	which is incurred by a single purpose Person (SPP) (whether or not any such SPP is a member of the Consolidated Group or a Subsidiary or an Affiliate of such a member)
and: 

  

	 	(A)	 	whose principal Assets and business are constituted by the ownership, acquisition, development, operation or maintenance of the Project, either directly or indirectly through one or
more other SPPs incorporated solely for the purposes of, and whose assets and business are constituted by, the ownership, acquisition, development, operation or maintenance of the Project (each, together with the relevant borrower, a Project
Entity); and 

  

	 	(B)	 	whose liabilities in respect of the Indebtedness concerned are not directly or indirectly the subject of a Group Guarantee (other than as provided in (ii) below); and

  

	 	(ii)	 	in respect of which the Person(s) making or making available such Indebtedness (the Project Finance Lender) has no recourse to any member of the
Consolidated Group or a Subsidiary or an Affiliate of such a member (other than the SPP described in paragraph (i) above) for the repayment or payment of any sum relating to such Indebtedness other than recourse: 

  

	 	(A)	 	in respect of contributions to the equity (or equivalent) of a Project Entity; 

  

	 	(B)	 	to a Project Entity in respect of such sum being limited to the aggregate cash flow (other than historic cash flow) from the Project; 

  

 Page 10 

	 	(C)	 	to a Project Entity for the sole purpose of enabling amounts to be claimed in respect of that Indebtedness on an enforcement of any Security given to the Project Finance Lender over
the Assets constituting the Project or the income, cash flow or other proceeds deriving therefrom (or rights given by any shareholder or equivalent in a Project Entity over its shares or equity equivalent in the Project Entity) to secure that
Indebtedness, provided that: (x) the extent of such recourse to a Project Entity is limited solely to the amount of any recoveries made on any such enforcement, and (y) the Project Finance Lender is not entitled, by virtue of any right or claim
arising out of or in connection with such Indebtedness, to commence proceedings for the winding-up or dissolution of a Project Entity or to appoint or procure the appointment of any receiver, trustee or similar person or official in respect of a
Project Entity or any of its Assets (save for the Assets which are the subject of such encumbrance); 

  

	 	(D)	 	to a Project Entity or a member of the Consolidated Group or a Subsidiary or Affiliate of such member, which recourse is limited to a claim for damages (other than liquidated
damages) for breach of an obligation (not being a payment obligation or an obligation to procure payment by another or an indemnity in respect thereof or an obligation to comply or to procure compliance by another with any financial ratios or other
tests of financial condition) by the Person against whom recourse is available; and/or 

  

	 	(E)	 	to any collateral or covenant to pay provided by any member of the Consolidated Group or a Subsidiary or an Affiliate of such a member in exchange for the transfer to it of Assets
in the form of cash (excluding, for the avoidance of doubt, the distribution of dividends to any member of the Consolidated Group or a Subsidiary or an Affiliate of such a member) of a Project Entity provided that such collateral or covenant which
is provided in exchange for such Assets does not have a value greater than the market value of such Assets at the time of transfer and provided further that if such collateral or such covenant to pay has or is capable of having a value exceeding EUR
15 million, the Borrower shall notify the Agent promptly of the same and of the relevant Assets, 

  
 provided that in no circumstances shall there be any such recourse in respect of unlimited cash flow deficiencies within the relevant Project in excess of
EUR 15,000,000 per annum; and/or 
  

	(b)	 	which the Majority Lenders shall have agreed in writing to treat as Project Finance Indebtedness; 

  

 Page 11 

 Protocol means the agreement entered into on 2 August 2003 between the French State, BNP Paribas, Groupe
Crédit Agricole, Société Générale and the Borrower, as amended by an Avenant à l’accord du 2 août 2003 entered into on 20 September 2003 between the French State, the G7 Banks and the
Borrower. For the avoidance of doubt, references herein to the Protocol shall not include any amendment or modification thereto unless agreed by the parties hereto; 
  
 PwC Report means any report prepared by PricewaterhouseCoopers in respect of the Group pursuant to Clause 17.11 (PwC
Reports) and shall include, for the avoidance of doubt, the Liquidity Plan to which any such report relates; 
  
 Qualifying Lender means a Person which is entitled to any part of an Advance and any interest to be paid to it on that part of that Advance and which
fulfils the conditions (other than the completion and filing of forms by such Person) imposed by French laws, taking into account, as the case may be, any applicable international treaty, in order for any sum payable by the Borrower or the Agent for
the account of the Borrower not to be subject to any withholding or deduction for any Taxes; 
  
 Rate Fixing Day means in relation to any Interest Period or Default Interest Period for which an interest rate is to be determined under this Agreement, the day on which quotations would ordinarily be
provided in the relevant Inter-bank Market for deposits in the relevant unit for delivery on the first day of that period. If for any such period quotations would ordinarily be provided on more than one day, the Rate Fixing Day for that period shall
be whichever of those days is from time to time nominated by the Agent (having regard to any convention or practice in the relevant Inter-bank Market); 
  
 Reference Banks means, subject to Clause 26.5(a) (Reference Banks), BNP Paribas, Crédit Agricole Indosuez, Crédit Lyonnais and
Société Générale, each acting through its Paris or Brussels office; 
  
 Relevant Facilities means the Bridge Facility Agreement, the Extended Facility Agreements, the agreement referred to in paragraph (i) of the definition of “Affected Facilities”, the EUR
200,000,000 Loan Agreement dated 18 August 2000 (as amended) between the Borrower and CDC Finance - CDC IXIS and the EUR 33,200,000 credit facility dated 4 January 2000 between the Borrower and Caisse Régionale de Crédit Agricole
Mutuel Charente Périgord; 
  
 Repayment Date means, in
relation to an Advance under Tranche A, the Final Maturity Date and in relation to an Advance under Tranche B, the last day of its Interest Period; 
  
 Required Amount means a minimum of EUR 20,000,000 and an integral multiple of EUR 5,000,000; 
  
 Reservations means generally applicable legal principles affecting creditors’ rights generally as set out in the legal
opinions referred to in paragraph 1.4 of Schedule 1; 
  
 S&P
means Standard & Poor’s Rating Services, a division of The McGraw-Hill Inc.; 
  

 Page 12 

 Security means any mortgage, pledge, lien, hypothecation, security interest or other charge or encumbrance
and any other agreement or arrangement having substantially the same economic effect (including, for the avoidance of doubt, any arrangement under which the repayment of a deposit or similar sum of money to a person depends on the performance by
that person of certain payment obligations, or any similar arrangement) (and secured shall be construed accordingly); 
  
 September Liquidity Plan means the 3 year liquidity plan dated 19 September 2003 referred to as “W10” in article 1.2 of the Protocol and delivered
to the Lenders, a copy of which is initialled by the Borrower for identification purposes on the date of this Agreement, to be validated in the PwC Report to be delivered on or prior to 15 November 2003; 
  
 Short-Term Investments means any short-term debt securities issued by any
commercial banking institution or any company (other than a Subsidiary of the Borrower) organised under the laws of any of the OECD countries and whose short term debt rating, as at the time of any investment, is at least P-1 or A-1 according to
Moody’s Investors Service, Inc. or Standard & Poor’s Ratings Services, respectively, or any successor thereto and purchased by the Borrower as a short term placement of excess cash; 
  
 Specified Time for any action means the time and date specified in Schedule 6
(Timetables) for that action; 
  
 Strategic Plan means the
strategic plan for the Group outlined in the press release of 12 March 2003; 
  
 Subsidiary means an entity of which the Borrower has from time to time direct or indirect control (as defined in article L.233-3 of the French Commercial Code); 
  
 T&D means the project referred to as “the disposal of transmission and distribution business” in the Strategic
Plan and the Protocol or such business itself, as the context may require; 
  
 T&D Letter means the letter of the Borrower dated 25 September 2003 delivered to the Agent (in sufficient copies for each of the Lenders) and in a form and substance satisfactory to the Lenders setting out the gross
proceeds, adjustment provisions, expected Net Cash Proceeds and timing of all payments to be received by the Borrower in connection with T&D; 
  
 TARGET means Trans-European Automated Real-time Gross Settlement Express Transfer payment system; 
  
 TARGET Day means any day on which TARGET is open for the settlement of payments
in euro; 
  
 Tax includes any present or future tax, levy, impost,
duty, charge, fee, deduction or withholding of any nature and whatever called, by whomsoever, on whomsoever and wherever imposed, levied, collected, withheld or assessed and includes any penalty or interest payable in connection with any failure to
pay or delay in paying the same; 
  

 Page 13 

 Total Commitments means the aggregate of the Tranche A Commitments and the Tranche B Commitments, being EUR
1,463,399,105 at the date of this Agreement; 
  
 Total Debt means,
at any time, an amount equal to the aggregate of the liabilities described as “financial debt” of the Consolidated Group (including borrowings, bonds and notes issued, other financial debt and bank overdrafts and, for the avoidance of
doubt, the redeemable preference shares of ALSTOM Finance Jersey Ltd. maturing on 31 March 2006, the subordinated notes issued on 29 September 2000, the TSDD and the TSDDRA but excluding the ORA) and the aggregate amount of securitised trade
receivables (both existing and future and, in each case, to the extent permitted pursuant to the terms of this Agreement) net of retained interests, all as shown in the then latest monthly management accounts and/or Latest Financial Statements of
the Borrower, as the case may be (recognising, without prejudice to the Borrower’s obligations pursuant to Clauses 17.1 (Preparation of Accounts), 17.2 (Audited Accounts) and 17.3 (Semi-Annual Information), that figures
prepared with due diligence and in good faith in respect of semi annual and annual accounts may differ from the figures in the management accounts for the corresponding period); 
  
 Total Net Debt means, at any time, Total Debt less Short-Term Investments, cash and Cash Equivalents of the Consolidated Group
all as shown in the then latest monthly management accounts and/or Latest Financial Statements of the Borrower, as the case may be (recognising that figures in respect of semi-annual and annual accounts may differ from the figures in the management
accounts for the corresponding period); 
  
 Total Net Debt Leverage
Ratio means a ratio the numerator of which is the Total Net Debt of the Borrower (calculated as specified in Clause 18.6(d) (Total Net Debt Leverage)) and the denominator of which is EBITDA; 
  
 Tranche A means the term loan facility made available to the Borrower under
this Agreement and any Advances made thereunder; 
  
 Tranche A
Amount means the total amount that may be drawn under Tranche A, which on the date of the Agreement is EUR 1,200,000,000; 
  
 Tranche A Available Amount means the total amount of the Tranche A Available Commitments; 
  
 Tranche A Availability Period means the period during which Tranche A is available to be drawn by the Borrower, being from
(and including) the date of this Agreement to (and including) 28 February 2004; 
  
 Tranche A Available Commitment means, in relation to a Lender on any date during the Tranche A Availability Period, its Tranche A Commitment (to the extent not cancelled) less the amount of that Lender’s share of any
Tranche A Advances made on or prior to the relevant date; 
  
 Tranche A
Commitment means in relation to a Lender and subject as provided in this Agreement, the amount set out opposite its name at the end of this Agreement under the heading “Tranche A”; 
  

 Page 14 

 Tranche A Maturity Date means 30 September 2008; 
  
 Tranche A Outstandings means, in relation to a Lender at a particular time, the
aggregate principal amount of its share of all (if any) Tranche A Advances outstanding at that time; 
  
 Tranche B means the revolving credit facility made available to the Borrower under this Agreement and any Advances made thereunder; 
  
 Tranche B Amount means the total amount that may be drawn under Tranche B, which on the date of the Agreement is no more than
EUR 263,399,105, it being understood that such amount may be increased by up to EUR 100,000,000 in accordance with article 3.4 of the Protocol; 
  
 Tranche B Available Amount means the total amount of the Tranche B Available Commitments; 
  
 Tranche B Availability Period means the period during which Tranche B is available to be drawn by the Borrower, being from
(and including) 20 January 2004 to (and including) the Tranche B Maturity Date; 
  
 Tranche B Available Commitment means, in relation to a Lender on any date during the Tranche B Availability Period, its Tranche B Commitment (to the extent not cancelled) less the amount of that Lender’s share of any
Advances under Tranche B made on or prior to the relevant date; 
  
 Tranche
B Commitment means, in relation to a Lender at any time of calculation and subject as provided in this Agreement, the amount set out opposite its name at the end of this Agreement under the heading “Tranche B” together with, in
relation to the G7 Banks only, such additional commitment amount determined in accordance with article 3.4 of the Protocol, if any; 
  
 Tranche B Maturity Date means 30 September 2008; 
  
 Tranche B Outstandings means, in relation to a Lender at a particular time, the aggregate principal amount of its share of all (if any) Tranche B Advances
outstanding at that time; 
  
 Transaction Documents means
this Agreement, the fee letters referred to in Clause 9 (Fees) and any other agreements designated as such by the Borrower and the Agent; 
  
 Transfer Agreement means an agreement substantially in the form set out in Schedule 4 (Form of Transfer Agreement); 
  
 TSDD means the issue of titres subordonnés à durée
déterminée referred to, and on the terms set out, in article 2.1 b) of the Protocol which are to be expressed by their terms as subordinated in accordance with article L.228-97 of the Code de Commerce; 
  
 TSDDRA means the issue of titres subordonnés à durée
déterminée remboursables en actions referred to, and on the terms set out, in article 2.1 a) of the Protocol which are 
  

 Page 15 

 to be expressed by their terms as subordinated in accordance with article L.228-97 of the Code de Commerce;

  
 Underwriting Agreement means any underwriting agreement entered
or to be entered into by the Borrower in connection with the issue of ORA as contemplated in the Protocol; 
  
 Vendor Financing means the provision of financial assistance to a third party institution which finances any customer of any member of the Group;

  
 1.2    Construction of Certain References: Except
to the extent that the context requires otherwise, any reference in this Agreement to: 
  
 acting in concert in connection with a change of control has the meaning given to that term in article L.233-10 of the French Commercial Code; 
  
 this Agreement includes this Subordinated Debt Facility Agreement, the fee letters referred to in Clause 9 (Fees), the
Taux Effectif Global letter referred to in Clause 8.6 (Taux Effectif Global), any transfer agreement, notice of assignment and any other document designated by the Agent and the Borrower, as from time to time amended, supplemented,
novated, restated or replaced and any document which amends, supplements, novates, restates or replaces this Agreement, in accordance with Clause 26.3 (Transfer or Assignment by Lenders) or 27.2 (Amendments, Waivers and
Consents); 
  
 the Assets of any Person means all or any part of
its business, undertaking, property, assets, revenues (including any right to receive revenues) and uncalled capital, wherever situated; 
  
 Consent also includes an approval, authorisation, exemption, filing, licence, order, permission, recording or registration (and references to obtaining
Consents shall be construed accordingly); 
  
 one Person being
Controlled by another means that other (whether directly or indirectly and whether by the ownership of share capital, the possession of voting power, contract or otherwise) has the power to appoint and/or remove all or the majority of
the members of the Board of Directors or other governing body of that Person or otherwise controls or has the power to control the affairs and policies of that Person; 
  
 the date of this Agreement means 30 September 2003; 
  
 the equivalent in any currency (the first currency) of any amount in another currency (the second
currency) shall be construed as a reference to the amount in the first currency which could be purchased with that amount in the second currency at the spot rate of exchange at which the Agent would have been prepared and able to purchase
that amount in the first currency for the second currency in the Paris foreign exchange market for value as at the relevant time on the relevant date specified in this Agreement (or, where no such time and date is specified, for value at such time
and 
  

 Page 16 

 on such date as the Agent may from time to time reasonably determine to be appropriate in the circumstances); 

 
 a Guarantee also includes an indemnity and any other obligation (whatever
called) of any Person to pay, purchase, provide funds (whether by the advance of money, the purchase of or subscription for shares or other securities, the purchase of Assets or services, or otherwise) for the payment of, indemnity against the
consequences of default in the payment of, or otherwise be responsible for, any Indebtedness of any other Person, including (without limitation) any cautionnement, aval or garantie which is independent from the debt to which it
relates; 
  
 a law includes common or customary law and any
constitution, decree, judgement, legislation, order, ordinance, regulation, statute, treaty or other legislative measure, in each case of any jurisdiction whatever (and lawful and unlawful shall be construed accordingly);

  
 a Lender includes any New Lender which is an assignee or
transferee pursuant to Clause 26.3 (Transfer or Assignment by Lenders); 
  
 a merger includes, in respect of any company, any fusion implemented in accordance with articles L.236-1 to L.236-24 of the French Commercial Code; 
  
 any obligation of any Person under this Agreement or any other agreement or document shall be construed as a reference to an
obligation expressed to be assumed by or imposed on it under this Agreement or, as the case may be, that other agreement or document (and due, owing, payable and receivable shall be similarly
construed); 
  
 a Person includes any individual, company,
corporation, firm, state or Agency of a state, or any grouping of 2 or more of the foregoing (in each case, whether or not having separate legal personality); 
  

a reconstruction includes, in respect of any company, any contribution of part of its business in consideration of shares (apport partiel
d’actifs) and any de-merger (scission) implemented in accordance with articles L.236-1 to L.236-24 of the French Commercial Code; 
  
 Tax on Overall Net Income of a Person shall be construed as a reference to Tax (other than Tax deducted or withheld from any payment) imposed on that Person
by the jurisdiction in which its principal office (and/or, in the case of a Lender, its Facility Office) is located by reference to (a) the net income, profits or gains of that Person world-wide or (b) such of its net income, profits or gains as
arise in or relate to that jurisdiction; 
  
 a time of the day is to
Paris time unless otherwise stated; 
  
 trustee and fiduciary has,
in each case, the meaning given to such term under any applicable law; 
  
 the
Winding-up of a Person also includes the amalgamation, reconstruction, administration, dissolution, liquidation, merger or consolidation of that Person, and 
  

 Page 17 

 any equivalent or analogous procedure under the law of any jurisdiction in which that Person is incorporated, domiciled
or resident or carries on business or has Assets. 
  
 1.3    Calculation of Financial Covenants: For the purposes of the covenants contained in Clauses 18.6 (Financial Covenants) and 18.7 (Restriction on Subsidiary Indebtedness), Consolidated Net Worth,
Consolidated Net Financial Expense, EBIT, EBITDA, Total Debt and Total Net Debt shall be calculated and interpreted in accordance with Applicable Accounting Principles and shall be expressed in euro. 
  
 1.4    Construction of Certain Clauses: Clauses 11
(Illegality), 16.1(j) (No Material Adverse Change), 16.1(f)(ii) (No Default) and 19.1(i) (Litigation), 19.1(l) (Illegality or Invalidity), 19.1(n) (Material Adverse Change) shall not apply to the events or
circumstances described in Clauses 19.2(b) (Implementation of the Protocol) or 19.2(c) (Failure to Implement the Protocol); 
  
 1.5    Headings: Headings shall be ignored in construing this Agreement. 
  
 2.    THE FACILITY 
  
 2.1    Amount: On the date of this Agreement, the Lenders grant to the Borrower a euro term loan and revolving
credit facility of up to EUR 1,563,399,105 in aggregate available in 2 tranches consisting of a Tranche A term loan of EUR 1,200,000,000 and a Tranche B revolving credit facility of up to EUR 363,399,105 (collectively, the Facility).

  
 2.2  Pro Rata Participation in Advances: 
  

	(a)	 	Save as specified in paragraph (b) below, each Lender will participate through its Facility Office in each Advance to be made under the facility in the proportion borne by its
Tranche A Available Commitment or, as the case may be, its Tranche B Available Commitment to the Tranche A Available Amount or, as the case may be, to the Tranche B Available Amount when the Agent receives the notice requesting that Advance (unless,
between then and the time for making that Advance, its Tranche A Available Commitment or, as the case may be, its Tranche B Available Commitment is reduced to zero, in which case the amount of that Advance will be reduced accordingly).

  

	(b)	 	(i) CFDI shall participate in the first Advance under Tranche A in the full amount of its Tranche A Available Commitment, and (ii) each other Lender shall participate in the balance
of the first Advance under Tranche A in the proportion borne by its Tranche A Available Commitment to the Tranche A Available Amount less the Tranche A Available Commitment of CFDI. 

  
 2.3    Calculation of Available Commitments/Facility: In order to
calculate the amount of the Tranche A Available Amount and the Tranche B Available Amount and each Lender’s Tranche A Available Commitment or, as the case may be, its Tranche B Available Commitment in connection with a proposed Advance (whether
for the purpose of Clause 2.2 (Pro Rata Participation in Advances) or 4.2 (Drawdown Request)): 
  

 Page 18 

	(a)	 	in the case of Advances under Tranche B, any existing Advances under Tranche B with Repayment Dates on or before the proposed date of that Advance shall be deemed to have been
repaid; and 

  

	(b)	 	if any other requests are outstanding for Advances under the relevant tranche to be made on or before the proposed date of that Advance, all Advances to which those requests relate
shall be deemed to be outstanding. 

  

	2.4  Purpose:	 	

  
 The Borrower shall use the proceeds of: 
  

	(a)	 	the first Advance under Tranche A (i) to the extent of the amounts made available by the Lenders other than CFDI, towards the early repayment in full of the outstanding balance of
the EUR 1,250,000,000 Credit Agreement and (ii) to the extent of the amount made available by CFDI, towards the repayment or prepayment in part of the Billets de Trésorerie; 

  

	(b)	 	the second Advance under Tranche A towards the repayment in full at maturity of the Bonds; and 

  

	(c)	 	once the amounts referred to in paragraph (a) above have been fully repaid, each Advance under Tranche B towards the financing of the Borrower’s general corporate purposes,

  
 but in each case neither the Agent nor any Lender will be
required to verify that the Advances are so used. 
  

	2.5  Subordination:	 	

  

	(a)	 	Subject to Clauses 2.5(b) and (c), each of the Lenders agree with the Borrower for the benefit of all present and future secured and unsecured creditors of the Borrower that, in the
event of an Insolvency Proceeding affecting the Borrower for whatever reason, all amounts due under the Facility shall be subordinated to all secured and unsecured debts of the Borrower, provided that the debts under the Facility shall rank:

  

	 	(i)	 	at least pari passu with (1) the subordinated notes issued on 29 September 2000, and (2) all subordinated debt which may be incurred by the Borrower in the future (other than
the subordinated debt referred to in paragraph (ii) below); 

  

	 	(ii)	 	at all times in priority to (1) the principal amount of the ORA in the case of a repayment in cash of such ORA, which may only arise in the event of a liquidation or a
cessation totale d’activité de la société, (2) any debt which a Subsidiary may now or in the future have against the Borrower in respect of Indebtedness of the Borrower due and payable to it, (3) the TSDD and the
TSDDRA, and (4) any other financial instrument which is subordinated by operation of law which may exist or be issued by the Borrower in 

  

 Page 19 

	 	 
the future (including financial instruments referred to in article L.228-97 of the Code de commerce). 

  

	(b)	 	The Lenders agree that if they receive any amount due hereunder from or on behalf of the Borrower in circumstances where, in accordance with the provisions of this Clause 2.5, a
creditor of the Borrower whose claim ranks senior to that of the Lenders hereunder is entitled to receive those amounts, they shall repay the relevant amounts (or the relevant proportion thereof) to the Borrower to the intent that the Borrower shall
pay those amounts to any senior creditor entitled to the same in accordance with this Clause. 

  

	(c)	 	Notwithstanding anything contained in Clause 2.5(a), following the occurrence of an Early Repayment Event (and, for the avoidance of doubt, whether or not the Facility has been
accelerated (in whole or in part) following such occurrence but only (save where acceleration has already occurred) for so long as such Early Repayment Event is continuing), the debt under the Facility shall no longer be subordinated and shall rank
pari passu with all unsecured and unsubordinated debts of the Borrower. 

  

	(d)	 	The subordination set out in paragraphs (a), (b) and (c) above is hereby accepted by the Borrower for the benefit of all its present and future secured and unsecured creditors.

  
 3.    CONDITIONS
PRECEDENT TO SIGNING 
  
 The
conditions precedent to the signing of this Agreement set out in Schedule 1 (Conditions Precedent to Signing) shall have been satisfied or waived prior to the date of this Agreement. 
  
 4.    DRAWDOWN 
  
 4.1    Drawdown Conditions: Advances will be made by the Lenders
to and as requested by the Borrower if the conditions set out in Clauses 4.2 (Drawdown Request) to 4.7 (Conditions Precedent to First Tranche B Drawdown), as applicable, are fulfilled no later than the Specified Time.

  
 4.2    Drawdown Request: Not later than the
Specified Time (or, as the case may be, such later time as may be acceptable to the Agent and the Lenders for the purpose of the relevant request), the Agent has received from the Borrower a notice substantially in the form set out in Schedule 5
(Drawdown Notice) specifying: 
  

	(a)	 	whether the Advance is to be made under Tranche A or Tranche B; 

  

	(b)	 	the proposed date of that Advance, which must be a Business Day during the Tranche A Availability Period or the Tranche B Availability Period, as applicable, and which in respect to
Tranche B shall be at least five Business Days after the date of the immediately previous Tranche B Advance; 

  

 Page 20 

	(c)	 	its amount which must be a euro amount equal to or less than the Tranche A Available Amount or, as the case may be, the Tranche B Available Amount and, if less, must be a Required
Amount; 

  

	(d)	 	the Interest Period; and 

  

	(e)	 	details of the bank (which must be in the Place of Payment) and account to which the Borrower wishes the proceeds of that Advance to be made available by the Agent.

  
 4.3    Conditions Precedent to All
Drawdowns: No Advance shall be made under Tranche A or Tranche B unless all the conditions precedent set out in Schedule 1 (Conditions to Signing) and Schedule 3 (Conditions Precedent to All Drawdowns) have been satisfied.

  
 4.4    Conditions Precedent to First Tranche A
Drawdown: No Advance shall be made under Tranche A unless the Agent has received satisfactory evidence that: 
  

	(a)	 	all actions contemplated by the Protocol (including, without limitation, the share capital increase and the issue by the Borrower of Billets de Trésorerie, TSDD and TSDDRA,
and the receipt of all net proceeds in respect thereof) to be carried out on or prior to the date of the first Advance under Tranche A have been carried out; 

  

	(b)	 	an irrevocable prepayment and cancellation notice under the EUR 1,250,000,000 Credit Agreement has been delivered to the agent thereunder notifying the Borrower’s intention to
prepay all amounts outstanding and cancel all commitments thereunder by no later than the date of the first Advance under Tranche A; 

  

	(c)	 	the net proceeds of the issue of the ORA shall have been paid by or on behalf of the Borrower to the agent of the EUR 1,250,000,000 Credit Agreement in partial repayment and
cancellation of all amounts outstanding thereunder and such net proceeds, together with the first Advance under Tranche A, shall be sufficient to prepay such amounts outstanding in full; 

  

	(d)	 	the PwC Report referred to in Clause 17.11(a) (PwC Reports), has been delivered to the Lenders and no Event of Default under Clause 19.1(o) (PwC Report) has occurred;

  

	(e)	 	the amounts outstanding and commitments under the Bridge Facility Agreement have been repaid in full and cancelled; 

  

	(f)	 	any subordination agreement required to be entered into pursuant to Clause 18.24 (Subordination of Indebtedness to Subsidiaries) has been entered into; and

  

	(g)	 	all reasonable and duly documented costs and expenses (including legal fees and Taxes) incurred by the Lenders, the Arrangers and the Agent in connection with the preparation,
negotiation, syndication or entry into of this 

  

 Page 21 

 Agreement (including the French version thereof) and which are due and payable have been paid in full. 
  
 4.5    Conditions Precedent to Second Tranche A Drawdown: The
second Advance under Tranche A shall not be made unless the Agent has received satisfactory evidence that all amounts outstanding and commitments under the Extended Facility Agreements have been repaid in full and cancelled. 
  
 4.6    Restrictions on Tranche A Drawdowns: 
  

	(a)	 	The first Advance under Tranche A shall be in an amount no greater than EUR 650,000,000 and shall be applied (i) to the extent of the amounts made available by the Lenders other
than CFDI, being EUR 350,000,000, towards the repayment and cancellation in full of the amounts outstanding under the EUR 1,250,000,000 Credit Agreement and (ii) to the extent of the amounts made available by CFDI, being EUR 300,000,000, towards the
repayment or prepayment in part of the Billets de Trésorerie. The date of the Advance shall be the same as, or immediately after, the date of receipt by or on behalf of the Borrower of the net proceeds of the ORA. 

  

	(b)	 	The second Advance under Tranche A shall be in an amount not exceeding the balance of the Tranche A Available Amount and shall be applied solely towards the repayment and
cancellation of the outstanding balance of the Bonds in full. The date of that Advance shall be the maturity date of the Bonds or such earlier date (not being earlier than 30 January 2004) as may be required to ensure that the Bonds are repaid on
their maturity date. 

  
 4.7    Conditions
Precedent to First Tranche B Drawdown: No Advance shall be made under Tranche B unless the Agent has received satisfactory evidence that (i) all amounts outstanding and commitments under the EUR 1,250,000,000 Credit Agreement have been repaid in
full and cancelled, and (ii) all amounts outstanding and commitments under the Extended Facility Agreements have been, or will on the date of that Advance be, repaid in full and cancelled. 
  
 4.8    Notification of Drawdown Requests: The Agent shall promptly
(and in any event by the Specified Time) notify each Lender of the proposed details of, and the amount of that Lender’s share of, each Advance. 
  
 4.9    Limit on Number of Advances: Tranche A will be available to be drawn in two Advances and Tranche B will be available to be drawn in one
or more Advances, provided that with respect to Tranche B not more than four Advances may be outstanding at any one time. For the avoidance of doubt, the first Advance under Tranche A shall, notwithstanding that it will be used for the two separate
purposes referred to in Clause 2.4(a) (Purpose), be treated as a single Advance. 
  
 4.10    Consolidation of Advances Under Tranche A: Each Advance made under Tranche A shall be consolidated into a single Advance at the end of each Interest Period, provided that this Clause 4.10 shall not in any
way affect the restrictions on the number of Advances set out in Clause 4.9 (Limit on Number of Advances). 
  

 Page 22 

	5.	 	REPAYMENT 

  
 5.1    Repayment of Advances: The Borrower shall repay each Advance on its Repayment Date, together with all unpaid interest accrued on that
Advance other than Deferred Interest, which Deferred Interest shall be payable in accordance with Clause 8.5(b). However, as the facility under Tranche B is revolving, any amount repaid under Tranche B before the Tranche B Maturity Date will remain
available for re-borrowing under Tranche B on the terms and conditions of this Agreement. 
  
 5.2    Final Maturity Date: If on the Final Maturity Date any Advance remains outstanding, the Borrower shall repay that Advance on that date together with all Deferred Interest, unpaid
accrued interest and fees and any other sum then due under this Agreement. 
  

	6.	 	PREPAYMENT OF ADVANCES UNDER TRANCHE A 

  
 6.1    Of All Lenders: Following the date on which there is an
unconditional payment or discharge in respect of the aggregate of all moneys and other liabilities then due or owing by the Borrower under each of the Relevant Facilities, the Borrower may (and shall as provided in Clause 7.1) prepay any Advance
made under Tranche A, or any part of it which is a Prepayment Required Amount, without penalty, on any Interest Payment Date if (i) it gives to the Agent not less than 10 Business Days’ irrevocable written notice of the Advance to be prepaid
and the date and amount of the prepayment, and (ii) a portion of the Tranche B Available Commitments proportional to the amount of Tranche A Advances being prepaid is cancelled on the date of prepayment. Any such prepayment must be accompanied by
Deferred Interest, accrued interest on the amount prepaid and any other sum then due under Clause 21.2 (Break Funding Costs) or any other provision of this Agreement. Any Advance in respect of Tranche A which is repaid may not be redrawn.

  

	6.2	 	Of Certain Lenders: If: 

  

	(a)	 	the Borrower becomes or will on or before the Repayment Date of an Advance become obliged to pay any Tax or other amount for the account of any Lender under Clause 10.2
(Grossing-up of Payments) or 12(Increased Costs); and 

  

	(b)	 	the Borrower gives to that Lender and the Agent not less than 10 Business Days’ irrevocable written notice of the date of prepayment, 

  
 the Borrower may prepay all (but not part only) of that Lender’s Outstandings without
premium or penalty on the date of prepayment specified in that notice. Any such prepayment must be accompanied by all Deferred Interest, unpaid accrued interest on that Lender’s Outstandings, all unpaid fees accrued to that Lender and any other
sum then due to that Lender under Clause 21.2 (Break Funding Costs) or any other provision of this Agreement. 
  

	7.	 	CANCELLATION 

  
 7.1    Of All Lenders: Following the date on which there is an unconditional payment or discharge in respect of the aggregate of all moneys and
other liabilities 

  

 Page 23 

 then due or owing by the Borrower under each of the Relevant Facilities, the Borrower may (and shall as provided in
Clause 6.1) cancel the Tranche B Available Amount, or any part thereof which is a Cancellation Required Amount, without premium or penalty on any Interest Payment Date before the relevant Final Maturity Date if (i) it gives to the Agent not less
than 10 Business Days’ irrevocable written notice of the date and amount of the cancellation, (ii) an amount of Deferred Interest proportional to the cancelled portion of the Tranche B Available Amount is paid on such cancellation date and
(iii) a portion of the Tranche A Outstandings and Deferred Interest relating thereto proportional to the amount of Tranche B Available Commitments being cancelled is paid on such cancellation date. Any such partial cancellation shall reduce each
Lender’s Tranche B Commitment rateably. 
  
 7.2    Of
Certain Lenders: If the events specified in Clauses 6.2(a) (Of Certain Lenders) and 6.2(b) (Of Certain Lenders) occur, the relevant Lender’s Commitment in respect of Tranche A or Tranche B shall be cancelled (without premium
or penalty) upon the Agent receiving the relevant notice under Clause 6.2(b) (Of Certain Lenders). In addition, if any event specified in Clause 6.2(a) (Of Certain Lenders) occurs and there are no Outstandings owing to the relevant
Lender, the Borrower may cancel all (but not part only) of that Lender’s Commitment without premium or penalty at any time before the relevant Final Maturity Date if it gives to that Lender and the Agent not less than 10 Business Days’
irrevocable written notice of the date of the cancellation. 
  
 7.3    Cancellation Rights Limited: The Borrower may not cancel all or any part of the Commitments except as expressly provided in this Agreement. 
  
 7.4    No Reinstatement: No amount of the Total Commitments
cancelled under this Agreement may be subsequently reinstated. 
  

	8.	 	INTEREST 

  
 8.1    Interest Periods: Interest shall be calculated on each Advance by reference to the Interest Period of that Advance. The Interest Period
in respect of an Advance shall begin on the proposed date of that Advance or (if already made) on the last day of its preceding Interest Period and shall have a duration of: 
  

	(a)	 	one month in the case of Interest Periods ending on or prior to 30 September 2004 in respect of Advances under Tranche A or Tranche B (or, in the case of the second Tranche A
Advance, a shorter period ending on the next following Interest Payment Date in respect of the first Tranche A Advance); 

  

	(b)	 	three months in the case of Interest Periods beginning on and after 30 September 2004 in respect of Advances under Tranche A; and 

  

	(c)	 	one or three months in the case of Interest Periods beginning on and after 30 September 2004 in respect of an Advance under Tranche B (or a shorter period ending on the Tranche B
Maturity Date), 

  

 Page 24 

 
in the case of paragraph (c) above as selected by the Borrower in the notice requesting that Advance, provided that in the case of any Tranche B Advance, the
Borrower may not select an Interest Period ending after the relevant Final Maturity Date. 
  
 8.2    Non-Business Days: If an Interest Period would otherwise end on a day which is not a Business Day, that Interest Period will instead end on the next Business Day in that calendar
month (if there is one) or the preceding Business Day (if there is not). 
  
 8.3    Normal Interest Rate: The rate of interest applicable to an Advance for each Interest Period applicable to that Advance shall be the rate per annum (as determined by the Agent) equal to the sum of:

  

	(a)	 	the Margin as applicable for that Advance; and 

  

	(b)	 	the Mandatory Costs (as notified to the Agent by the Lenders) for that, or (as the case may be) that part of that, Interest Period if applicable; and 

  

	(c)	 	EURIBOR for that Interest Period unless market practice dictates otherwise. 

  
 8.4    Notification of Interest Rates: The Agent shall promptly notify the Borrower and the Lenders of each rate of interest determined in
accordance with this Agreement. 
  
 8.5    Payment of
Interest: 
  

	(a)	 	On each Interest Payment Date in respect of an Advance made under Tranche A or Tranche B or (in the case of an overdue sum) the last day of each Default Interest Period relating to
that overdue sum, the Borrower shall pay the interest accrued (to the fullest extent permitted by law) during that Interest Period or Default Interest Period on the Advance or overdue sum to which it relates, other than any Deferred Interest, at the
rate(s) applicable for that Interest Period or Default Interest Period. 

  

	(b)	 	Deferred Interest shall be payable on the Final Maturity Date, save as otherwise provided in this Agreement. 

  
 8.6    Taux Effectif Global: For the purpose of Article
L.313.1 et seq. of the French Code de la Consommation, the parties acknowledge that, due to certain characteristics of the facility and, in particular, to the floating interest rate applicable to the Advances, the actual all-in
percentage rate (taux effectif global) for the duration of the facility cannot be calculated as at the date of this Agreement. Notwithstanding the above, the Agent delivered to the Borrower on the date of this Agreement letters containing
indicative calculations of the actual all-in percentage rate, the form of the latter such letter being set out in Schedule 9 (Taux Effectif Global Letter). 
  
 8.7    Deferred Interest: Without prejudice to any other provisions of this Agreement, the following principles
applying to Deferred Interest are set out below for explanation purposes: 
  

 Page 25 

	(a)	 	a portion of interest which corresponds to the Deferred Margin in respect of each Tranche A Advance and each Tranche B Advance shall accrue on each Interest Payment Date relating to
that Advance, but shall remain unpaid until the Final Maturity Date, or such earlier date as may be provided under this Agreement (including, without limitation, in Clause 6 (Prepayment of Advances under Tranche A), Clause 7
(Cancellation) and Clause 19.3 (Cancellation/Acceleration)); 

  

	(b)	 	for the purposes of calculating interest thereon, the interest referred to in paragraph (a) shall be treated as forming part of the first Tranche A Advance from the Interest Payment
Date under Tranche A (the First Compounding Date) which falls immediately after the first anniversary on which that interest accrued; and 

  

	(c)	 	accordingly, from the First Compounding Date, interest referred to in paragraph (a) shall itself bear interest calculated at the same rate and by reference to the same interest
periods, and accruing on the same dates as, the first Tranche A Advance, and such interest shall be compounded annually thereafter on the same principles. 

  

	9.	 	FEES 

  
 9.1    Agency Fee: The Borrower shall pay to the Agent for its own account an agency fee as stated in a letter dated 30 September 2003 from the Agent to, and countersigned by, the Borrower.

  
 9.2    Upfront Fee: The Borrower shall pay
to the Agent (for the account of the Lenders) an upfront fee as stated in a letter dated 30 September 2003 from the Agent to, and countersigned by, the Borrower. 
  
 9.3    Commitment Fees: The Borrower shall pay a commitment fee calculated on a daily basis at the rate of
1.50% per annum on the amount of each Lender’s Tranche A Available Commitment and Tranche B Available Commitment in each case during the period from (but excluding) the date of this Agreement to (and including) the Final Maturity Date. These
fees shall be payable in arrear quarterly from the date of this Agreement and on the relevant Final Maturity Date or any earlier date on which that Lender’s Tranche A Commitment or Tranche B Commitment, as the case may be, is reduced to zero.

  

	10.	 	TAXES 

  
 10.1    Payments to be Free and Clear: All sums payable by the Borrower under this Agreement shall be paid free and clear of and (except to the extent required by law) without any deduction
or withholding, whether for or on account of Tax, by way of set-off or otherwise. 
  
 10.2    Grossing-up of Payments: 
  

	(a)	 	 If the Borrower or any other Person (whether or not a party to, or on behalf of a party to, this Agreement) is required at any time to deduct or withhold any

  

 Page 26 

	 	 
such Tax or other amount from any sum paid or payable by, or received or receivable from, the Borrower under this Agreement, the Borrower shall (to the
extent permitted by law) at the same time pay such additional amount as is necessary to ensure that the Agent or, as the case may be, the Lender to which that sum is due receives and retains (free from any liability other than Tax on its Overall Net
Income) a net sum equal to what it would have received and so retained had no such deduction or withholding been required or made. 

  

	(b)	 	If the Borrower or any other Person (whether or not a party to, or on behalf of a party to, this Agreement) is required at any time to pay any such Tax or other amount on, or
calculated by reference to, any sum received or receivable (including any sum received or receivable under this Clause 10.2(b)) by the Agent or, as the case may be, any Lender under this Agreement (except for a payment by the Agent or a Lender of
Tax on its Overall Net Income), the Borrower shall pay or procure the payment of that Tax or other amount before any interest or penalty becomes payable or, if that Tax or other amount is payable and paid by the Agent or any Lender, shall reimburse
it on demand for the amount paid by it. 

  

	(c)	 	Within 30 days after paying any sum from which it is required by law to make any deduction or withholding, and within 30 days after the due date of payment of any Tax or other
amount which it is required to pay under Clause 10.2(b), the Borrower shall deliver to the Agent evidence satisfactory to the Agent or, as the case may be, the relevant Lender (including any original receipts, tax receipts, or certified copies
thereof) of that deduction, withholding or, as the case may be, payment and (where remittance is required) of the remittance thereof to the relevant taxing or other authority. 

  

	(d)	 	As soon as the Borrower is aware that any such deduction, withholding or payment is required (or of any change in any such requirement), it shall notify the Agent.

  

	(e)	 	If the Borrower becomes or will become obliged to pay an amount under Clauses 10.2(a) (Grossing-up of Payments) or (b) (Grossing-up of Payments) to any Lender but is
prevented by law from making such payment, then the Borrower shall give notice to the Agent within 15 days of becoming aware of such fact. During the 30 day period commencing on the date of receipt of such notice from the Borrower, the Borrower and
the relevant Lender shall negotiate in good faith with a view to the Lender taking such steps as it determines, in its discretion, are reasonably open to it and are acceptable to the Borrower to avoid such prohibition on payment. If, at the end of
such 30 day period, no mutually acceptable solution has been agreed on, the Borrower shall, within two Business Days, prepay that Lender’s share of each Advance and cancel that Lender’s Available Commitment, together with all Deferred
Interest, interest accrued thereon and any other sum then due to that Lender under Clause 21.2 (Break Funding Costs) and any other provision of this Agreement. 

  

 Page 27 

 10.3    Qualifying Lender: Notwithstanding Clauses 10.2(a) (Grossing-up of Payments)
and (b) (Grossing-up of Payments), the Borrower shall not be required to pay any additional amount in respect of any Tax so imposed or levied on a Lender if (i) on the due date of a payment of interest to a Lender or the Agent, such Person is
not a Qualifying Lender, unless such imposition of withholding results from the introduction of, or any change in, or in the interpretation or application of, any relevant law, order or practice of the tax authorities after this Agreement is entered
into or, as the case may be, the date on which that Person becomes a Lender or Agent, as the case may be, or from the breach by the Borrower of its obligations under Clause 10.4 (Tax Administration Formalities) below or (ii) subject to the
Borrower complying with Clause 10.4 (Tax Administration Formalities), such Person has failed to complete any procedural formalities which were in its sole dominion and control to complete and which are necessary in order to ensure that no
additional amounts in respect of Tax are payable by the Borrower pursuant to Clause 10.2 (Grossing-up of Payments). 
  
 10.4    Tax Administration Formalities: The Borrower agrees to provide such information in respect of itself as may be reasonably requested by
the Lenders or the Agent in order for the Lenders or the Agent to comply with any administrative formalities required in order for the Lenders or the Agent to be exempt from withholding or deduction for any Taxes under any applicable international
treaty. 
  

	10.5	 	Refund of Tax Credits: If: 

  

	(a)	 	the Borrower makes a payment under Clause 10.2(a) (Grossing-up of Payments) or Clause 10.2(b) (Grossing-up of Payments) (a Tax Payment) in respect of a
payment to a Lender under this Agreement; and 

  

	(b)	 	that Lender obtains a refund of Tax or obtained and used a credit against Tax on its Overall Net Income (a Tax Credit) which that Lender is able to identify as
attributable to that Tax Payment, 

  
 then, if it can do so without
any adverse consequences for that Lender, that Lender shall, as soon as practicable, reimburse the Borrower such amount as that Lender determines in its sole discretion to be such proportion of that Tax Credit as will leave that Lender (after that
reimbursement) in no better or worse position in respect of its world-wide Tax liabilities than it would have been in if no Tax Payment had been required. A Lender shall use its reasonable endeavours to claim any Tax Credit (and, if it does claim,
to determine the extent, order and manner in which it does so) and to determine whether any amount is due from it under this Clause 10.5 (and, if so, what amount and when). No Lender shall be obliged to disclose any information regarding its Tax
affairs and computations. 
  

	11.	 	ILLEGALITY 

  
 If at any time any Lender (acting reasonably) determines that it is or will become unlawful or contrary to any law or Directive for it to allow all or
part of its Commitment to remain outstanding, to make, fund or have outstanding all or part of its Outstandings and/or to carry out all or any of its other obligations under this Agreement then: 
  

 Page 28 

	(a)	 	upon that Lender notifying the Borrower and the Agent, its Commitment (if any) shall be cancelled; and 

  

	(b)	 	the Borrower shall prepay that Lender’s share of each Advance immediately on the Repayment Date of that Advance or (if not yet unlawful) within 10 Business Days of that
notification (whichever is earlier) with all Deferred Interest applicable to that Lender’s share of each such Advance, all unpaid accrued interest thereon, all unpaid fees accrued to that Lender and any other sum then due to that Lender under
Clause 21.2 (Break Funding Costs) or any other provision of this Agreement. 

  

	12.	 	INCREASED COSTS 

  
 12.1    Indemnity: If the Agent or, as the case may be, any Lender (in each case acting reasonably) determines that, as a result of (a) the
introduction of or any change in, or in the interpretation or application of, any law or Directive (b) compliance by it with any law or Directive: 
  

	(a)	 	it (or any of its holding companies) incurs a cost in maintaining all or any part of its Commitment and/or in making, maintaining or funding all or any part of its share of any
Advance or any overdue sum; and/or 

  

	(b)	 	any sum received or receivable by it under this Agreement or the effective return to it under this Agreement or the overall return on its (or any of its holding companies’)
capital is reduced (except on account of Tax on its Overall Net Income); and/or 

  

	(c)	 	it (or any of its holding companies) makes any payment (except on account of Tax on its Overall Net Income) or forgoes any interest or other return on or calculated by reference to
the amount of any sum received or receivable by it under this Agreement, 

  
 the Borrower shall, at the request of the Agent or the relevant Lender, as the case may be, and at the Borrower’s option either (i) indemnify it (or pay to it an amount sufficient to indemnify any of its holding companies) against that
cost, reduction, payment or forgone interest or other return (except to the extent that it results from a deduction or withholding of Tax) and, accordingly, shall from time to time on demand (whenever made) pay to the Agent for its own account or,
as the case may be, for the account of that Lender the amount certified by it with reasonable justification to be necessary so as to indemnify it (or any of its holding companies) or (ii) prepay to that Lender all (but not part only) of that
Lender’s Outstandings on the date specified in that request. Any such prepayment will be made without penalty but must be accompanied by a payment of all unpaid Deferred Interest, accrued interest on that Lender’s Outstandings, fees
accrued to that Lender and any other sum then due to that Lender under Clause 21.2 (Break Funding Costs) or any other provision of this Agreement. 
  
 12.2    Capital Adequacy: Under Clause 12.1 (Indemnity), a Lender shall be entitled to claim indemnification not only for a cost,
reduction, payment or forgone interest or other return directly attributable to this Agreement, its Commitment, its share of any 
  

 Page 29 

 Advance or any overdue sum, but also for that proportion of any cost, reduction, payment or forgone interest or other
return which that Lender (or any of its holding companies) reasonably determines to be fairly allocable to this Agreement, its Commitment, its share of any Advance or any overdue sum in relation to any law or Directive applicable to that Lender (or
any of its holding companies) or affecting the conduct of that Lender’s (or any of its holding companies’) business or a type of business or the manner in which or the extent to which that Lender (or any of its holding companies) allocates
capital resources. 
  

	13.	 	CHANGE IN MARKET CONDITIONS 

  
 13.1    Triggering Events: If in relation to any Advance: 
  

	(a)	 	the Agent is unable to determine EURIBOR; or 

  

	(b)	 	the Agent is notified by Lenders to whom more than 33 1/3% of that Advance, if made, would be owing that (a) they are or expect to be unable to obtain matching deposits in the Inter-bank Market at or about 11:00 a.m. (Brussels time on the Rate Fixing Day in sufficient amounts to fund their
respective shares of that Advance during its Interest Period or (b) the EURIBOR fixed for the Interest Period of that Advance does not reflect the cost to those Lenders of obtaining such deposits, 

  
 the Agent shall promptly notify the Borrower and the Lenders and that Advance shall not be
made. 
  

	13.2    Negotiation:	 	The Borrower and the Agent (on behalf of and after consultation with the Lenders) shall then negotiate until not more than 25 days after the Agent gives the notification referred to
in Clause 13.1 with a view to agreeing an alternative basis for calculating the interest payable on and/or funding Advances. Any alternative basis agreed in writing by the Agent (on behalf of and with the consent of all the Lenders) and the Borrower
within that 25 day period shall take effect in accordance with its terms. In the event that no alternative basis is so agreed, then the rate of interest on each Lender’s share of that Advance for the Interest Period shall be the rate per annum
which is the sum of: 

  

	(a)	 	the Margin; 

  

	(b)	 	the rate notified to the Agent by each relevant Lenders as soon as practicable and in any event before interest is due to be paid in respect of that Interest Period, to be that
which expresses as a percentage rate per annum the cost to each relevant Lender of funding its participation in that Advance from whatever source it may reasonably select; and 

  

	(c)	 	the Mandatory Costs (as notified to the Agent by the relevant Lenders) for that, or (as the case may be) that part of that, Interest Period if applicable. 

 

 Page 30 

	14.	 	MITIGATION 

  
 If any circumstances arise which result, or would on the giving of notice result, in the Borrower having to make a payment to or for the account of a Lender under Clause
10 (Taxes), 11 (Illegality) or 12 (Increased Costs), or in a Lender’s Commitment being cancelled under Clause 11(a), then without in any way limiting, reducing or otherwise qualifying any of the obligations of the Borrower
under Clauses 10 (Taxes) to 13 (Increased Costs): 
  

	(a)	 	promptly after an officer of that Lender with responsibility for its participation in this facility becomes aware of the relevant circumstances and their results, that Lender shall
notify the Borrower and the Agent; and 

  

	(b)	 	in consultation with the Borrower and the Agent, that Lender shall take all such steps as it determines are reasonably open to it and as are acceptable to the Borrower and the Agent
to mitigate the effect of those circumstances (such as changing its Facility Office, restructuring its participation in the facility and/or transferring some or all of its rights or obligations under this Agreement to another Person acceptable to
the Borrower and willing to accept such transfer). 

  
 However, no
Lender shall be obliged to take any such steps which in its reasonable opinion could have an adverse effect on that Lender. 
  

	15.	 	PAYMENTS 

  
 15.1    By Lenders: On each date on which an Advance is to be made, each Lender shall make its share of that Advance available to the Agent.
Each such amount shall be made available in euro in such funds and by such time on the due date as may then be generally accepted for the settlement in the Place of Payment of international payments in euro to such account with such bank in the
Place of Payment as the Agent may specify. 
  
 If so requested by the Agent, the
relevant Lender will promptly confirm to the Agent that it will make the relevant payment as required by this Clause 15.1. 
  
 15.2    Disbursement to Borrower: The Agent shall make the amounts so received by it from the Lenders available to the Borrower before close of
business in the Place of Payment on that date by payment in euro of funds as received by the Agent to such account with such bank as the Borrower shall have specified in the notice requesting that Advance. If any Lender makes its share of an Advance
available to the Agent later than required by Clause 15.1 (By Lenders), the Agent shall make that share available to the Borrower as soon as practicable thereafter. 
  

	15.3	 	Currency of Payments: 

  

	(a)	 	Each repayment or prepayment of principal of an Advance shall be made in euro. 

  

	(b)	 	Each payment of interest shall be made in euro. 

  

 Page 31 

	(c)	 	Each additional amount payable under Clause 10.2(a) (Grossing-up of Payments) shall be paid in the same currency as the sum to which it relates. 

  

	(d)	 	Each sum payable under Clause 10.2(b) (Grossing-up of Payments), 12 (Increased Costs) or 24.1(c) (Stamp Duty) shall be paid in the currency specified by the
Person for whose account it is payable. 

  

	(e)	 	All payments in respect of costs, losses, expenses and liabilities under Clause 15.8(b) (Refunding of Payments), 21.1 (Miscellaneous Indemnities), 22.8 (Indemnity
to Arranger and Agent), 24.1(a) (Initial Expenses) or (b) (Enforcement Expenses) shall be made in the currency in which they were incurred. 

  

	(f)	 	All other payments shall be made in euro. 

  
 15.4    By Borrower: On each date on which a payment is to be made by the Borrower, it shall make that payment to the Agent in the currency
specified in Clause 15.3 (Currency of Payments) in such funds and by such time on the due date as may then be generally accepted for the settlement in the Place of Payment of international payments in that currency. All such payments shall be
made to such account with such bank in the Place of Payment as the Agent may specify. 
  
 15.5    Distribution to Lenders: The Agent shall make available to each Lender before close of business in the Place of Payment on that date its pro rata share (if any) of any sum so received by the Agent from the
Borrower in the same currency and funds as received by the Agent to such account of that Lender with such bank in the Place of Payment as it shall have designated to the Agent for that purpose. If any sum is received by the Agent from the Borrower
later than required by Clause 15.4 (By Borrower), the Agent shall make each Lender’s share (if any) available to it as soon as practicable thereafter. 
  
 15.6    Netting of Payments: Notwithstanding Clauses 15.1 (By Lenders) to 15.3 (Currency of
Payments) or any other provision of this Agreement: 
  

	(a)	 	if on any date an amount (the first amount) is to be advanced by a Lender under this Agreement and an amount (the second amount) is due from the Borrower
to that Lender under this Agreement in the same currency, that Lender shall apply the first amount in or towards payment of the second amount. The relevant Lender shall remain obliged to advance any excess (or, as the case may be, the Borrower shall
remain obliged to pay any shortfall) in accordance with this Clause 15; and 

  

	(b)	 	if on any date an amount (the first amount) is to be advanced by a Lender under this Agreement and an amount (the second amount) is due from the Borrower
to that Lender under this Agreement in a different currency and if the Borrower and the Agent so agree by the Specified Time, the Agent shall: 

  

	 	(i)	 	apply a sum equal to the first amount (or, as the case may be, so much of the first amount as is necessary) in purchasing in the Paris foreign exchange market, for value on the due
date of 

  

 Page 32 

	 	 
payment of the second amount, an amount in the currency of the second amount (or, as the case may be, so much of the second amount as can be purchased with
the first amount); and 

  

	 	(ii)	 	on receipt of the amount so purchased apply it in or towards payment of the second amount, unless for any reason either of those applications cannot be made at the relevant time.

  
 The relevant Lender shall remain obliged to
advance the first amount in euro and the Borrower shall remain obliged to repay the second amount in the currency of the second amount, notwithstanding this Clause 15.6(b). 
  
 Nothing in this Clause 15.6 shall be effective to create a charge. 
  
 15.7    Order of Distribution: If the amount received by the Agent
from the Borrower on any date is less than the total sum remaining and/or becoming due under this Agreement on that date, the Agent shall apply that amount in or towards payment of the following sums in the following order: 
  

	(a)	 	first, in or towards payment pro rata of any sums then due to the Agent or the Arrangers in their capacity as such 

  

	(b)	 	secondly, in or towards payment pro rata of any sums (other than principal or interest on the Advances) then due to the Lenders (or any of them); 

  

	(c)	 	thirdly, in or towards payment pro rata of any interest (other than Deferred Interest) then due on the Advances; 

  

	(d)	 	fourthly, in or towards payment pro rata of any Deferred Interest then due on the Advances; 

  

	(e)	 	fifthly, in or towards payment pro rata of any principal then due. 

  
 Any such applications shall override any purported appropriation by any Person. For this purpose, the Agent may (if and to the extent necessary) convert one currency into
another. 
  
 15.8    Refunding of Payments: The Agent
shall not be obliged to (but may) make available to any Person any sum which it is expecting to receive for the account of that Person until it has been able to establish that it has received that sum. However, it may do so if it wishes. If and to
the extent that it does so but it transpires that it had not then received the sum which it paid out: 
  

	(a)	 	the Person to whom the Agent made that sum available shall on demand refund it to the Agent; and 

  

	(b)	 	that Person or (at the option of the Agent) the Person by whom that sum should have been made available shall on demand pay to the Agent the amount (as certified by the Agent) which
will indemnify the Agent against any funding or other cost, loss, expense or liability sustained or incurred by it as a 

  

 Page 33 

	 	 
result of paying out that sum before receiving it but without prejudice to the rights of any party hereto against a defaulting party.

  

	15.9	 	Non-Business Days: 

  

	(a)	 	If any Repayment Date would otherwise fall on a non-Business Day, it shall instead fall on the next Business Day in the same calendar month (if there is one) or the preceding
Business Day (if there is not). 

  

	(b)	 	Any payment to be made by the Borrower (otherwise than on a Repayment Date) and which would otherwise be due on a non-Business Day shall instead be due on the next Business Day.

  

	16.	 	REPRESENTATIONS AND WARRANTIES 

  
 16.1    By the Borrower: The Borrower represents and warrants to and for the benefit of each other party to this
Agreement, in relation to itself and (where applicable) its Material Subsidiaries, and in the case of 16.1(h) below, each member of the Group, as follows: 
  

	(a)	 	Status: The Borrower is a limited liability company duly established and validly existing under the laws of the Republic of France and has the power and authority to own its
Assets and to conduct the business which it conducts and/or proposes to conduct. 

  

	(b)	 	Powers: The Borrower has the power to enter into, exercise its rights and perform and comply with its obligations under the Transaction Documents and the Protocol and, when
entered into, the ORA, the TSDD and the TSDDRA. 

  

	(c)	 	Authorisations and Consents: All actions, conditions and things required to be taken, fulfilled and done (including the obtaining of any necessary Consents, the making of
registrations and the like) in order: 

  

	 	(i)	 	to enable it lawfully to enter into, exercise its rights and perform and comply with its obligations under the Transaction Documents and the Protocol and, when entered into, the
ORA, the TSDD and the TSDDRA; 

  

	 	(ii)	 	to ensure that those obligations are valid, legally binding and enforceable; 

  

	 	(iii)	 	to ensure that those obligations rank and will at all times rank in accordance with Clause 18.2 (Ranking of Obligations); and 

  

	 	(iv)	 	to make this Agreement admissible in evidence in the courts of France, 

  
 have been or will be when required (as applicable) taken, fulfilled and done other than such actions, conditions or things in connection with any laws or
regulations on state aid. 
  

 Page 34 

	(d)	 	Non-Violation etc.: Its entry into, exercise of its rights and/or performance of or compliance with its obligations under the Transaction Documents and, for the purposes only
of (ii) and (iii) below, the ORA, the TSDD, the TSDDRA and the Protocol, do not and will not violate, or exceed any borrowing or other power or restriction granted or imposed by: 

  

	 	(i)	 	any law to which it is subject; 

  

	 	(ii)	 	its statuts; or 

  

	 	(iii)	 	any agreement (including any existing agreement relating to Financial Commitments) to which any member of the Group is a party or which is binding on any member of the Group or
their respective Assets, 

  
 or result in the
existence of, or oblige any member of the Group to create, any Security over those Assets other than as permitted under Clause 18.3 (Negative Pledge). 
  

	(e)	 	Obligations Binding: Its obligations under this Agreement are valid, binding and enforceable and rank pari passu with all other unsecured creditors of the Borrower,
save for obligations mandatorily preferred by law and as otherwise provided in Clause 2.5. 

  

	(f)	 	No Default: 

  

	 	(i)	 	no Event of Default, Potential Event of Default or Early Repayment Event has occurred, or will occur as a result of making any Advance, other than any waived in accordance with
Clause 27.2 (Amendments, Waivers and Consents); and 

  

	 	(ii)	 	neither the Borrower nor any Material Subsidiary is in breach of or default under any agreement to an extent or in a manner which has or is likely to have a Material Adverse Effect,

  
 other than, in each case, an Excluded Default.

  

	(g)	 	Winding-up/Insolvency: 

  

	 	(i)	 	No proceedings of any nature are current or, to its knowledge, pending or threatened, for the winding-up or dissolution of, or in respect of any Insolvency Proceeding of any nature
relating to the Borrower or any Material Subsidiary; and 

  

	 	(ii)	 	the Borrower and the Material Subsidiaries are solvent and in a position to meet their respective scheduled payment obligations as they fall due. 

  

 Page 35 

	(h)	 	Existing Security: 

  

	 	(i)	 	No Security exists on or over its Assets or those of ALSTOM Holdings as at the date of this Agreement except as listed in Schedule 10 (Existing Security); and

  

	 	(ii)	 	no Security exists over its Assets or those of any other member of the Group except as permitted pursuant to Clause 18.3 (Negative Pledge). 

  

	(i)	 	Accounts: The Latest Financial Statements as delivered to the Agent (with copies of the related directors’ and auditors’ reports (if any)):

  

	 	(i)	 	include such financial statements as are required by the laws of the Republic of France and accounting principles, standards and practices generally accepted in the Republic of
France and, save as stated in the notes thereto, were prepared and audited in accordance with accounting standards generally accepted in the Republic of France; 

  

	 	(ii)	 	together with those notes, give a true and fair view of the Borrower’s consolidated financial condition and operations and that of the Consolidated Group as at that date and
for the period then ended; and 

  

	 	(iii)	 	in the case of the Borrower and each Material Subsidiary, its non-consolidated audited annual financial statements most recently delivered to the Agent: 

  

	 	(A)	 	have been prepared in accordance with generally accepted accounting principles generally accepted in the jurisdiction in which it is incorporated, consistently applied; and

  

	 	(B)	 	fairly represent its financial condition as at the date to which they were drawn up. 

  

	(j)	 	No Material Adverse Change: Save as disclosed to the Lenders by the Borrower in writing in the Information Package prior to the date of this Agreement, no event has occurred
or circumstance arisen which has or is likely to have a Material Adverse Effect since 20 September 2003. 

  

	(k)	 	Litigation: No litigation, arbitration or administrative proceeding is current, pending or threatened (other than any such proceeding in connection with Clauses 19.2(b)
(Implementation of the Protocol) and 19.2(c) (Failure to Implement the Protocol)): 

  

	 	(i)	 	to restrain the entry into, exercise of any of its rights under and/or performance or enforcement of or compliance with any of obligations under this Agreement; or

  

 Page 36 

	 	(ii)	 	which has or may have a Material Adverse Effect (save as disclosed to the Lenders by the Borrower in the Information Package or otherwise in writing prior to the date of this
Agreement). 

  

	(l)	 	Information: 

  

	 	(i)	 	to the best of its knowledge, information and belief, after all reasonable enquiries, the documents comprising the Information Package, including the financial accounts relating to
the Borrower, ALSTOM Holdings and the Group were true, complete and accurate in all material respects at the date of each of them, and the opinions, projections and forecasts therein and the assumptions on which they are based were arrived at after
due and careful consideration and enquiry and genuinely represented its views, have been made in good faith and are based on reasonable assumptions; 

  

	 	(ii)	 	all other written information provided to the Agent, Arrangers and Lenders prior to the date of this Agreement (including in any documentation provided in compliance with the
conditions precedent to this Agreement) was true, complete and accurate in all material respects as at the date thereof; 

  

	 	(iii)	 	there are no relevant facts or circumstances which have not been disclosed to the Agent, Arrangers and Lenders in writing since 20 September 2003 and before the date of this
Agreement and which could make any of such information, opinions, projections, forecasts or assumptions untrue, incomplete, inaccurate or misleading in any material respect or which, if disclosed, might reasonably be expected adversely to affect the
decision of a Person considering whether to provide finance to it; and 

  

	 	(iv)	 	any other information or report delivered by or on behalf of the Borrower hereunder is at the date of delivery hereunder true and accurate in all material respects and not
misleading in any material respect by reason of any omission; any statements of opinion included in any such information or report will reflect opinions held by the officers of the Borrower; and any projection or forecast contained in any such other
information will in all respects be based on reasonable assumptions. 

  

	(m)	 	Environmental Matters: To the best of the Borrower’s knowledge, information and belief, after all reasonable enquiries, neither it nor any of its Material Subsidiaries
is in breach or contravention of any applicable Environmental Law in each of the jurisdictions in which it operates in a manner or to an extent which might have a Material Adverse Effect. 

  

 Page 37 

	(n)	 	Intellectual Property: 

  

	 	(i)	 	All material Intellectual Property required to conduct its business and that of its Material Subsidiaries is beneficially owned by or licensed to Group members free from any
licences to or Security in favour of third parties which are materially prejudicial to the use of such Intellectual Property, and will not be adversely affected in any material respect by the transactions contemplated by this Agreement or the
Protocol (except to the extent being disposed of thereunder); and 

  

	 	(ii)	 	to the best of the Borrower’s knowledge, information and belief, after reasonable enquiries, its business and that of its Material Subsidiaries does not infringe any
intellectual property rights of any third party in a manner or to an extent which could reasonably be expected to have a Material Adverse Effect. 

  

	(o)	 	Assets: The Borrower and each Material Subsidiary has good title to or valid leases or licences of or is otherwise entitled to use all material assets necessary to conduct
its business. 

  

	(p)	 	Tax Liabilities: No material claims are, or are reasonably likely to be, asserted against the Borrower or any Material Subsidiary with respect to unpaid Taxes and all
material reports and returns on which Taxes are required to be shown have been filed and all material Taxes required to be paid have been paid, in each case within any applicable time limit or any applicable grace period. 

 

	(q)	 	Immunity from Suit, etc.: The Borrower has no right to immunity from jurisdiction or execution on grounds of sovereignty in respect of any action or proceeding relating to
this Agreement, save that, in the case of assets that are employed in a service public (public service) and that are within the physical possession of the French State or an entité de droit public (public law entity), it is not
certain that such assets will be capable of being attached, either by the Borrower as part of a repossession action or by a creditor of the Borrower as part of an enforcement action. 

  

	(r)	 	Private Commercial Acts: The execution, delivery and performance of this Agreement constitute private commercial acts for private commercial purposes as between the Borrower
and the Lenders. 

  

	(s)	 	Pooling Arrangements: No cash pooling operations are carried on at the date of this Agreement between the Borrower as borrower and any member of the Group other than ALSTOM
Holdings. 

  

	(t)	 	Intra-Group Indebtedness: No member of the Group other than ALSTOM Holdings is at the date of this Agreement a creditor of Indebtedness of the Borrower and thereafter a
creditor of Indebtedness of the Borrower which has not complied with Clause 18.24 (Subordination of Indebtedness to Subsidiaries). 

  

 Page 38 

	(u)	 	Subordination of Claims: Any claims which the Lenders may now or in the future have against the Borrower hereunder rank in the manner specified in Clause 2.5(a)(ii)
(Subordination). 

  
 16.2    Repetition: Each of the representations and warranties in Clauses 16.1(a) (Status) to 16.1(u) (Subordination of Claims) (other than Clause 16.1(1)(i), (ii) and (iii) (Information) will
be repeated on each date on which an Advance is requested or made and on each date on which interest is payable pursuant to this Agreement, as if repeated by reference to the then existing circumstances, except as otherwise agreed by the Majority
Lenders in their absolute discretion. 
  
 16.3    Qualifications to Warranties: The representations and warranties in Clauses 16.1(c)(ii) (Authorisations and Consents), 16.1(d)(i) (Non-Violation, etc.) and 16.1(e) (Obligations
Binding) shall be subject to Reservations. 
  

	17.	 	INFORMATION 

  
 The Borrower undertakes that, so long as any Commitment remains available or any Advance remains outstanding under this Agreement: 
  
 17.1    Preparation of Accounts: The Borrower will ensure that all
accounts to be delivered by it under this Agreement are prepared in such manner that Clause 16.1(i) (Accounts) would be complied with. 
  
 17.2    Audited Accounts: As soon as available and in any event within 120 days after the end of each of its financial years (beginning with
the current one), the Borrower will deliver to the Agent enough copies for the Lenders of its annual report and audited consolidated accounts (including balance sheet, profit and loss and cash flow statements of the Borrower) as at the end of and
for that financial year, together with copies of the related directors’ and auditors’ reports. 
  
 17.3    Semi-Annual Information: As soon as available and in any event within 90 days after the end of the first 6 months of each of its financial years (beginning with the current one), the
Borrower will deliver to the Agent enough copies for the Lenders of its interim consolidated financial statements (which shall have been subject to limited review by the Borrower’s auditors) (including balance sheet, profit and loss and cash
flow statements of the Borrower) for that 6 month period. 
  
 17.4    Quarterly Information: If at any time after the date of this Agreement the Borrower publishes quarterly consolidated financial statements, as soon as available and in any event within 60 days of the end of
each quarter, the Borrower will deliver to the Agent enough copies for the Lenders of its interim consolidated financial statements for that quarter. 
  
 17.5    Monthly and Quarterly Information: If and for so long as the Borrower is not Investment Grade, as soon as the same become available,
but in any event within 20 days after the end of each calendar month, commencing in October 2003 (and following the first anniversary date of this Agreement, within 20 days after the end of each calendar quarter) deliver to the Agent (in sufficient
copies for each of the Lenders): 
  

 Page 39 

	(a)	 	an updated Liquidity Plan with respect to the next 3 financial years beginning with the current year, established on a monthly basis with respect to the current financial year and
on a quarterly basis thereafter, in each case certified by an Authorised Signatory, together with a reconciliation statement to provide a comparison to (i) the September Liquidity Plan during the first year following the Date of this Agreement and
(ii) to the latest Liquidity Plan provided after the first Anniversary Date of this Agreement, where there are any material deviations between the two, and together with a management commentary explaining the reasons of any such deviation;

  

	(b)	 	details of any litigation current, pending or threatened in respect of which the amount subject to dispute exceeds EUR 100,000,000 or, if the information is then available to the
Borrower, in respect of which the amount exceeds EUR 50,000,000; 

  

	(c)	 	an update in respect of the GT24 and GT26 units, such update to summarise technical, commercial and financial issues (including an update in respect of claims (indemnity or
otherwise) and provisions); and 

  

	(d)	 	an update in respect of any cash collateral securing off-balance sheet undertakings in respect of bonding guarantees and derivatives (if any). 

  
 17.6    Information to Shareholders or Creditors: At the same time
as it is sent to its shareholders (or any class of its shareholders) or creditors, the Borrower will deliver to the Agent upon its request enough copies for the Lenders of any circular, document or other written information sent to its shareholders
as a whole (or any class of its shareholders as a whole) or creditors as such. 
  
 17.7    Events of Default and Early Repayment Events: The Borrower will notify the Agent in writing of the occurrence of any Event of Default or Potential Event of Default (other than an Excluded Default) and any
Early Repayment Event (and of any action taken or proposed to be taken to remedy it) promptly and in any event within 3 Business Days after becoming aware of it.  
  
 17.8    Compliance with Financial Covenants: 
  

	(a)	 	With each set of accounts delivered by it under Clause 17.2 (Audited Accounts) the Borrower will deliver to the Agent an annual certificate of the Auditors in such form as
they are willing to deliver in accordance with their policies, from time to time, relating to the financial covenants contained in Clause 18.6 (Financial Covenants) as at the end of the relevant period and including (in reasonable detail and
in a form satisfactory to the Agent (acting reasonably) their certification as to the computations necessary to demonstrate such compliance. 

  

	(b)	 	(i)    With each set of accounts delivered by it under Clauses 17.2 (Audited Accounts) and 17.3 (Semi-Annual Information);

  
 (ii)    in respect of its
obligations under Clause 18.6(c) (Total Debt), within 20 days after the end of each relevant quarter; and 
  

 Page 40 

 (iii)    in any case within 14 days after any request made by the
Agent from time to time, 
  
 the Borrower will deliver to the
Agent a certificate signed on its behalf by the chief financial officer or a vice-president corporate funding of the Borrower: 
  

	 	(aa)	 	confirming compliance with the relevant tests in Clause 18.6 (Financial Covenants) as at the end of the relevant period (or, as the case may be, as at the date specified in
the Agent’s request, which date must be not less than 15 nor more than 45 days before the date of the request); 

  

	 	(bb)	 	setting out in reasonable detail and in a form satisfactory to the Agent the computations necessary to demonstrate such compliance; and 

  

	 	(cc)	 	confirming that, so far as it is aware and (if applicable), except as previously notified to the Agent or waived in accordance with Clause 27.2, no Event of Default, Potential Event
of Default or Early Repayment Event has occurred or (as the case may be) setting out details of any which has occurred and has not been so notified or waived and of which it is aware and of any action taken or proposed to be taken to remedy it.

  
 17.9    Material Subsidiaries: With
each set of accounts delivered by it under Clauses 17.2 (Audited Accounts), 17.3 (Semi-Annual Information) and 17.4 (Quarterly Information) (or, if no accounts are provided under Clause 17.4, with each quarterly update of the
Liquidity Plan under Clause 17.5 (Monthly and Quarterly Information) and by reference to the financial information available to the Borrower in respect of the last quarter) and within 14 days after any request made by the Agent from time to
time, the Borrower will deliver to the Agent a certificate: 
  

	(a)	 	listing the Material Subsidiaries as at the end of the relevant period (or, as the case may be, as at the date specified in the Agent’s request, which date must be not less
than 15 nor more than 45 days before the date of the request); and 

  

	(b)	 	setting out in reasonable detail and in a form satisfactory to the Agent the computations necessary to justify the inclusions in, and exclusions from, that list and to demonstrate
that all Material Subsidiaries represent in aggregate not less than 70% of the consolidated revenues of the Group for the financial year, half year or quarter, as applicable, in respect of which such accounts were prepared or financial information
relates, as the case may be. 

  
 17.10    Computation of Financial Covenants: The Borrower shall provide to the Agent, by no later than 30 November 2003, computations in respect of the financial covenants contained in Clause 18.6 (Financial
Covenants) on the basis of the half year ending 30 September 2003. 
  

 Page 41 

 17.11    PwC Reports: If and for so long as the Borrower is not Investment Grade, the Borrower
will deliver or procure to be delivered to the Agent (in sufficient copies for each of the Lenders) as soon as the same become available, but in any event: 
  

	(a)	 	on or before 15 November 2003, a report of PricewaterhouseCoopers validating the September Liquidity Plan; 

  

	(b)	 	within 30 days after the delivery by the Borrower to the Agent of an updated Liquidity Plan delivered pursuant to Clause 17.5 (Monthly and Quarterly Information) in January,
April, July and October of each year, a report of PricewaterhouseCoopers validating such updated Liquidity Plan; and 

  

	(c)	 	The Borrower shall use its best endeavours to ensure that each report referred to in (b) above is addressed either to the Lenders and the Borrower or to the Borrower only but
accompanied by a “duty of care” or reliance letter in favour of, and in a form reasonably satisfactory to, the Lenders. 

  
 17.12    PwC Additional Scope: The Borrower shall mandate PricewaterhouseCoopers to prepare and deliver a report covering those items listed in
Schedule 13 (PwC Additional Scope) in accordance with the timetable and on the terms set out in that Schedule. 
  
 17.13    Other Information: The Borrower will promptly deliver to the Agent for distribution to the Lenders such other information relating to
its financial condition or business and to the financial condition or business of any member of the Group as the Agent (or any Lender through the Agent) may from time to time reasonably request. 
  

	18.    UNDERTAKINGS	 	

  
 The Borrower undertakes, in relation to itself and, where applicable, each of its Material Subsidiaries and/or each member of the Group that, so long as any Facility remains available or any sum remains payable under
this Agreement: 
  
 18.1    Maintenance of Corporate
Existence: The Borrower and each of the Material Subsidiaries will: 
  

	 	(i)	 	do all things necessary to preserve and keep in full force and effect their respective corporate existence and file all annual returns and financial statements as may be required in
their respective jurisdictions of incorporation and in all jurisdictions in which they respectively carry on business; and 

  

	 	(ii)	 	remain duly qualified to do business in the jurisdictions in which the nature of the business transacted by each of them, respectively, or the character of the material properties
owned or leased by each of them, respectively, will require such qualifications, 

  
 except, in each case, where the failure to be in compliance with the foregoing does not or would not materially and adversely affect its business or undertaking. 
  

 Page 42 

 18.2    Ranking of Obligations: Its payment obligations under this Agreement rank and will at
all times rank at least equally and rateably in all respects with all its unsecured and unsubordinated Indebtedness except as provided in Clause 2.5 (Subordination). 
  
 18.3    Negative Pledge: The Borrower will not, and will ensure that no other member of the Group will, create or
have outstanding any Security on or over their respective Assets, except for: 
  

	(a)	 	Security existing as at the date of this Agreement and any replacement of any such Security provided that such replacement Security (x) relates to the same Assets as the Security
that is replaced; and (y) secures Indebtedness of the same creditor and represents an extension of the Indebtedness secured thereby (but, except with the prior consent of the Majority Lenders, the principal, capital or nominal amount secured by any
initial or replacement Security referred to in this paragraph (a) may not be increased beyond the maximum such amount secured by the relevant Security at the date of this Agreement); 

  

	(b)	 	liens arising solely by operation of law and in the ordinary course of business; 

  

	(c)	 	Security relating to “cautions”, guarantees, surety bonds and any similar transaction in the ordinary course of business and not at any time exceeding in aggregate
EUR 10,000,000; 

  

	(d)	 	Security arising in respect of the purchase of machinery and equipment in the ordinary course of business and granted over such assets to secure Indebtedness raised to finance the
acquisition thereof; 

  

	(e)	 	Security for taxes or governmental charges contested in good faith and in relation to which adequate reserves have been made; 

  

	(f)	 	Security resulting from the securitisation transactions permitted under Clause 18.4 (Disposals) hereof following the date of this Agreement; 

  

	(g)	 	Security resulting from financial leases permitted under Clause 18.4 (Disposals) hereof to the extent granted over the relevant leased assets following the date of this
Agreement; 

  

	(h)	 	Security required by law to be created in order to implement the Strategic Plan or T&D; 

  

	(i)	 	Security arising out of title retention provisions in a supplier’s standard conditions of supply of goods acquired by the relevant member of the Group in the ordinary course of
its business; 

  

	(j)	 	any Security existing at the time of acquisition on or over any Asset acquired by it (otherwise than from another member of the Group) after the date of this Agreement and not
created in contemplation of or in connection with that acquisition (provided that, except with the prior consent of the Majority 

  

 Page 43 

 Lenders, the principal, capital or nominal amount secured by any such Security and outstanding at the
time of acquisition may not be increased); 
  

	(k)	 	any Security not existing at the time of acquisition on or over any Asset acquired by it (otherwise than from another member of the Group) after the date of this Agreement and
created over the relevant Asset at the time of that acquisition permitted under this Agreement; 

  

	(l)	 	any Security created over Assets acquired after the date of this Agreement and securing Project Finance Indebtedness provided that the only Assets which are the subject of that
Security are Assets which are the subject of the relevant Project; 

  

	(m)	 	Security created in the ordinary course of business over assets having a value, and securing Indebtedness, not exceeding in aggregate EUR 20,000,000 per annum or, if and for so long
as the Borrower is Investment Grade, EUR 50,000,000 per annum, for all members of the Group; and 

  

	(n)	 	any other Security created or outstanding with the prior consent of the Majority Lenders. 

  
 18.4    Disposals: 
  
 The Borrower will procure that no member of the Group will (whether by a single transaction or a number of related or unrelated transactions
and whether at the same time or over a period of time) Dispose of all or any part of its assets other than Disposals made on arms’ length terms and at fair market value: 
  

	 	(i)	 	of assets (other than shares in a Material Subsidiary) in the ordinary course of business; 

  

	 	(ii)	 	of cash, Short-Term Investments and Investments provided such disposals are not prohibited by any other provision hereof; 

  

	 	(iii)	 	the transfer of title to Assets or receivables to a fonds commun de créance or other entity in the context of an Asset securitisation (titrisation) provided
such Assets or receivables are sold for cash; 

  

	 	(iv)	 	to a Material Subsidiary; 

  

	 	(v)	 	of assets for the purpose of sale and leaseback transactions to the extent permitted hereunder; 

  

	 	(vi)	 	of assets solely for the purpose of reducing its existing Vendor Financing commitments; 

  

	 	(vii)	 	pursuant to a transaction or transactions permitted by Clause 18.8(a) (Acquisitions and Mergers); 

  

	 	(viii)	 	contemplated in the Strategic Plan or the Protocol; 

  

 Page 44 

	 	(ix)	 	pursuant to a transaction or transactions (i) in respect of which the disposal proceeds shall not exceed an aggregate maximum of EUR 150,000,000 per annum, or (ii) if and for so
long as the Borrower is Investment Grade, which do not give rise to a Material Adverse Effect; or 

  

	 	(x)	 	as permitted with the prior consent of the Majority Lenders, 

  
 in each case provided that disposals under
paragraphs (iii) to (vii) and (ix) inclusive are only permitted so long as no Event of Default or Early Repayment Event has occurred which is continuing. 
  
 18.5    Change of Business: 
  

	(a)	 	The Borrower will ensure that there is no material change in the overall nature of the business of the Group taken as a whole (whether by a single transaction or a number of related
or unrelated transactions, whether at one time or over a period of time and whether by Disposal, acquisition or otherwise) except by reason of the implementation of the Strategic Plan or the Protocol. 

  

	(b)	 	The Borrower shall not carry on any business other than that of the holding company of the Group and shall not incur any liabilities other than those directly related to such
business or the business of the Group. 

  
 18.6    Financial Covenants: 
  

	(a)	 	Interest Cover: The Borrower shall procure that the ratio of EBITDA to Consolidated Net Financial Expense will not for any 12 month period ending on the last day of the
Borrower’s financial year or half year, commencing 31 March 2005, by reference to the financial statements referred to in Clauses 17.2 (Audited Accounts) and 17.3 (Semi-Annual Information), be less than the ratio specified below
in respect of such financial year or half year. 

  

	 Date (12 month period
 ending on:)
	  	Ratio
	 31 March 2005
	  	1.2:1
	 30 September 2005
	  	1.6:1
	 31 March 2006
	  	2.5:1
	 30 September 2006
	  	2.5:1
	 31 March 2007
	  	2.5:1
	 30 September 2007
	  	2.5:1
	 31 March 2008
	  	2.5:1

  

 Page 45 

	(b)	 	Consolidated Net Worth: The Borrower shall procure that Consolidated Net Worth shall not, by reference to the financial statements referred to in Clauses 17.2 (Audited
Accounts) and 17.3 (Semi-Annual Information) on any date specified in the table below, be less than the amount set out opposite such date in such table provided that this covenant shall cease to apply if and for so long as the Borrower is
Investment Grade. 

  

	 Date
	  	Amount
(in million)
	 31 March 2004
	  	€1,400
	 30 September 2004
	  	€1,000
	 31 March 2005
	  	€1,100
	 30 September 2005
	  	€850
	 31 March 2006
	  	€1,150
	 30 September 2006
	  	€1,150
	 31 March 2007
	  	€1,150
	 30 September 2007
	  	€1,150
	 31 March 2008
	  	€1,150

  
 For the purposes of
this paragraph (b) only, it is expressly agreed that Consolidated Net Worth shall include the TSDDRA. 
  

	(c)	 	Total Debt: The Borrower shall procure that the Total Debt of the Consolidated Group as at any quarter end listed below (by reference to each of the financial statements
referred to in Clauses 17.2 (Audited Accounts) and 17.3 (Semi-Annual Information) and by reference to the monthly management accounts of the Borrower from time to time) is at no time greater than the amount set out below in respect of
the relevant quarter, provided that this covenant shall cease to apply if and for so long as the Borrower is Investment Grade. 

  

 Page 46 

	 Month
	  	  
  
	 Total
 Debt

	 December 2003
	  	€	5,550
	 March 2004
	  	€	4,750
	 June 2004
	  	€	4,850
	 September 2004
	  	€	4,800
	 December 2004
	  	€	4,600
	 March 2005
	  	€	4,450
	 June 2005
	  	€	4,650
	 September 2005
	  	€	4,650
	 December 2005
	  	€	4,600
	 March 2006
	  	€	4,450
	 June 2006
	  	€	4,400
	 September 2006
	  	€	4,400
	 December 2006
	  	€	4,400
	 March 2007
	  	€	4,400
	 June 2007
	  	€	4,400
	 September 2007
	  	€	4,400
	 December 2007
	  	€	4,400
	 March 2008
	  	€	4,400
	 June 2008
	  	€	4,400

  
 For the purposes of
this paragraph (c) only, it is expressly agreed that Total Debt shall be calculated excluding the TSDDRA. 
  

	(d)	 	Total Net Debt Leverage: The Borrower shall procure that the Total Net Debt Leverage Ratio of the Consolidated Group in respect of any financial year or half year ending on
the dates listed below (by reference to each of the financial statements referred to in Clauses 17.2 (Audited Accounts) and 17.3 (Semi-Annual Information) is at no time greater than the amount set out below in respect of such financial
year or half year. 

  

	 Month
	  	Total Net Debt
	 March 2005
	  	8.0
	 September 2005
	  	7.5
	 March 2006
	  	4.0
	 September 2006
	  	3.6
	 March 2007
	  	3.6
	 September 2007
	  	3.6
	 March 2008
	  	3.6

  
 For the purposes of
this paragraph (d) only, it is expressly agreed that Total Net Debt shall be calculated excluding the TSDDRA. 
  

	(e)	 	Minimum EBITDA: The Borrower shall procure that its EBITDA will not for any 12 month period ending on the last day of the Borrower’s financial year or half year set out
in the table below, by reference to the financial statements 

  

 Page 47 

	 	 
referred to in Clauses 17.2 (Audited Accounts) and 17.3 (Semi-Annual Information), be less than the amount specified below in respect of such
financial year or half year. 

  

	 Date (12 month period
 ending on:)
	  	EBITDA
(in million)
	 31 March 2004
	  	€100
	 30 September 2004
	  	€230

  

	(f)	 	Financial Covenant Testing: The financial covenant specified in Clause 18.6(a), (b), (c), (d) and (e) above shall be tested by reference to the Latest Financial Statements of
the Borrower delivered pursuant to Clauses 17.2 (Audited Accounts) and 17.3 (Semi-Annual Information). The financial covenants specified in Clause 18.6(c) (Total Debt) shall be tested by reference to the consolidated financial
position of the Borrower on the last day of the relevant calendar month as evidenced by the compliance certificates and other information delivered pursuant to each of Clauses 17.2 (Audited Accounts), 17.3 (Semi-Annual Information),
17.4 (Quarterly Information), 17.5 (Monthly and Quarterly Information) and 17.8 (Quarterly Information) above. 

  

	(g)	 	Financial Covenant Adjustment Following Change in Accounting Principles: If any financial statement of the Borrower delivered or to be delivered to the Agent under Clauses
17.2 (Audited Accounts) or 17.3 (Semi-Annual Information) is not to be or, as the case may be, has not been prepared in accordance with Applicable Accounting Principles used in connection with the Original Financial Statements and
including if any change is made to the method of calculating “financial debt” as set out therein (in respect of the Borrower or of any Subsidiary): 

  

	 	(i)	 	The Borrower shall immediately notify the Agent and the Agent (on behalf of and after consultation with all the Lenders) shall negotiate in good faith with a view to agreeing such
amendments to the above financial ratios and/or the definitions of the terms used in them as are necessary to give the Lenders comparable protection to that contemplated at the date of this Agreement. 

  

	 	(ii)	 	If amendments are agreed by the Borrower and the Majority Lenders (after consultation with all the Lenders) within 25 days, those amendments shall take effect in accordance with the
terms of that agreement. 

  

	 	(iii)	 	If such amendments are not so agreed within 25 days, the Borrower shall: 

  

	 	(A)	 	within 30 days after the end of that 25 day period; and 

  

	 	(B)	 	 with all subsequent financial statements to be delivered to the Agent under Clauses 17.2 (Audited Accounts) and 17.3 (Semi-Annual Information),

  

 Page 48 

	 	 
deliver to the Agent, in reasonable detail and in a form satisfactory to the Agent, details of all such adjustments as need be made to the relevant financial
statement to bring it into line with Applicable Accounting Principles. 

  

	(h)	 	Financial Covenant Adjustment Following Restructuring: If any restructuring of the Borrower or the Group (including, without limitation, any Disposal) imposed by the European
Commission would, but for this paragraph (h), result in the Borrower being in breach of its financial ratios set out in this Clause 18.6: 

  

	 	(i)	 	The Borrower shall immediately notify the Agent and the Agent (on behalf of and after consultation with all the Lenders) shall negotiate in good faith with a view to agreeing such
amendments to the relevant ratios and/or the definitions of the terms used in them as are necessary to give the Lenders comparable protection to that contemplated at the date of this Agreement after giving effect to such imposed restructuring.

  

	 	(ii)	 	If amendments are agreed by the Borrower and the Majority Lenders (after consultation with all the Lenders) within 25 Business Days of the notification referred to in (i) above,
those amendments shall take effect in accordance with the terms of that agreement. The Lenders agree that they shall not be entitled to give a notice to the Borrower under Clause 19.3 (Cancellation/Acceleration) on the basis of the Event of
Default referred to in Clause 19.1(c) (Breach of Undertaking) in respect of such breach of the financial ratios resulting from such imposed restructuring until the expiry of such 25 Business Day period and provided that such breach then
remains outstanding. 

  

	 	(iii) 	 	Paragraphs (i) and (ii) above shall be without prejudice to the other rights of the Lenders under the Agreement save as a result of a breach such as is referred to in the last
sentence of paragraph (ii) above. 

  
 18.7    Restriction on Subsidiary Indebtedness: The Borrower shall procure that the financial debt of its Subsidiaries on a consolidated basis shall at no time represent more than 30% of Total Debt. For the
avoidance of doubt, for these purposes the “financial debt” of Subsidiaries shall be calculated in the same manner as “financial debt” of the Borrower, as described in the definition of Total Debt. 
  
 18.8    Acquisitions and Mergers: The Borrower will procure that,
except as permitted by the Majority Lenders: 
  

	(a)	 	no member of the Group shall be subject to any reorganisation, restructuring or merger (except for solvent reconstructions within the Group) provided that (i) in the case of mergers
involving the Borrower or a Material Subsidiary, the surviving entity shall be, respectively, the Borrower or a Material Subsidiary, 

  

 Page 49 

	 	 
and (ii) the same does not and is not reasonably likely to have a Material Adverse Effect; 

  

	(b)	 	no member of the Group will make any acquisitions or investments in any business or shares or equivalent other than: 

  

	 	(i)	 	any transaction required in order to implement the Strategic Plan or the Protocol; and 

  

	 	(ii)	 	acquisitions or investments (A) not exceeding in aggregate for all members of the Group EUR 100,000,000 per annum, or (B) if and for so long as the Borrower is Investment Grade,
which do not give rise to a Material Adverse Effect. 

  
 18.9    Insurances: The Borrower will ensure that there is in effect at all times, insurance cover over its Assets and business and those of its Material Subsidiaries of a type and in an amount which is consistent
with good business practice in the relevant industry. 
  
 18.10    Loans: The Borrower will procure that no member of the Group will be the creditor of any Financial Commitments other than: 
  

	(a)	 	those existing on the date of this Agreement; 

  

	(b)	 	those made after the date of this Agreement in accordance with cash pooling or other cash or treasury management operations existing before the date of this Agreement;

  

	(c)	 	trade credit on normal commercial terms in the ordinary course of its trading activities; 

  

	(d)	 	loans between members of the Group in the ordinary course of business or cash management; 

  

	(e)	 	loans to employees made in accordance with the practice of members of the Group as at the date of this Agreement; or 

  

	(f)	 	as permitted by the Majority Lenders. 

  
 18.11    Intellectual Property: The Borrower will procure that it and the Material Subsidiaries will: 
  

	(a)	 	observe and comply with all obligations, laws and regulations applicable to it in its capacity as registered proprietor, beneficial owner, user, licensor or licensee of the
Intellectual Property which it requires to conduct its business or any part of it where failure to do so would have or could be reasonably expected to have a Material Adverse Effect or significantly adversely affect the value of any material
Intellectual Property of the Group; 

  

	(b)	 	 do what is necessary to maintain, register, protect and safeguard the intellectual property required to conduct its business or any part of it where 

  

 Page 50 

 
failure to do so would have or could be reasonably expected to have a Material Adverse Effect and not discontinue the use of any of that Intellectual
Property nor allow it to be put at risk by becoming generic or by being identified as disreputable if in each case to do so would have or could be reasonably expected to have a Material Adverse Effect; and 
  

	(c)	 	not grant any licence to any person to use the Intellectual Property required to conduct its business or any part of it if to do so would have or could be reasonably expected to
have a Material Adverse Effect. 

  
 18.12    Compliance with Laws: The Borrower will, and shall ensure that each Material Subsidiary will, make all filings and request all Consents as are necessary or desirable in connection with its business and
maintain and comply with (i) all applicable laws, regulations and Consents as are necessary or desirable in connection with its business, and (ii) any Environmental Law and any Environmental Authorisations, except, in each case, to the extent
failure would not reasonably be expected in the opinion of the Majority Lenders to have a Material Adverse Effect. 
  
 18.13    Auditors: The Borrower will procure that neither it nor any Material Subsidiary will: 
  

	(a)	 	appoint any auditors other than firms of international standing and repute; 

  

	(b)	 	make any material change to the accounting policies or practices of the Group, except (i) for the introduction of “cost to cost” accounting practices which may apply to
financial statements of the Consolidated Group with effect from 31 March 2004 or (ii) as required by applicable law or regulation. 

  
 18.14    Arm’s Length Transactions: The Borrower will procure that no member of the Group will enter into any arrangement or transaction
which is not on arm’s length terms in accordance with sound commercial practice and (except in order to implement the Strategic Plan and the Protocol) in the ordinary course of its business. 
  
 18.15    Joint Ventures: The Borrower will procure that no member
of the Group will enter into or permit to subsist any joint venture, partnership or similar arrangement with any person, other than: 
  

	(a)	 	any joint venture, partnership or similar arrangement subsisting on the date of this Agreement; 

  

	(b)	 	any such arrangement that is entered into in the ordinary course of business through a limited liability company; or 

  

	(c)	 	any such arrangement that is entered into through a limited liability company and is otherwise permitted under Clause 18.4 (Disposals) or Clause 18.8 (Acquisitions and
Mergers), 

  
 and no member of the Group shall make any
investment or otherwise participate in an entity with unlimited liability. 
  

 Page 51 

 18.16    Cash Pooling: The Borrower will procure that no change is made to the cash pooling or
other cash or treasury management operations of the Group as carried on at the date of this Agreement which would be likely to have a Material Adverse Effect. 
  

18.17    Capital Expenditure: The Borrower will procure that net capital expenditure of the Consolidated Group for the 12 month period
following the date of this Agreement does not exceed EUR 250,000,000 in aggregate (unless otherwise permitted by the Majority Lenders). 
  
 18.18    Pensions Schemes: The Borrower will procure that all material pension schemes of it and its Material Subsidiaries are fully funded to
the extent required by law based on reasonable actuarial assumptions applicable in the jurisdiction in which the relevant pension scheme is maintained. 
  
 18.19    Protocol and Others: The Borrower undertakes: 
  

	(a)	 	promptly to inform the Agent of any event or circumstance likely to result in a material change in the assumptions and valuations made by the Borrower in the September Liquidity
Plan, the latest Liquidity Plan and/or the Strategic Plan; 

  

	(b)	 	to use its best endeavours to ensure that the affairs of the Group are in all respects conducted so as to ensure that the Protocol, the September Liquidity Plan and/or the Strategic
Plan are implemented and that each of them is implemented under the best possible conditions (including as to timing); and 

  

	(c)	 	promptly to inform the Agent of any restriction imposed by any competent authority or court on the implementation of the Protocol in all material respects within the timetable
contemplated therein. 

  
 18.20    Vendor
Financing: The Borrower will procure that no new Vendor Financing is provided by any member of the Group after the date of this Agreement. 
  
 18.21    Off-Balance Sheet Undertakings: The Borrower will procure that no member of the Group will enter into any new commitment or assume any
additional liability (contingent or actual) in respect of any Financial Commitments unless such commitment or assumption of liability is not contrary to any other provision hereunder. 
  
 18.22    Put Option: The Borrower undertakes not to grant any put option for the benefit of the purchaser nor any
other option, right or arrangement having a similar effect in connection with the implementation of the disposal of T&D. 
  
 18.23    Stay of Action by Other Lenders: The Borrower undertakes to obtain, as soon as reasonably practicable, an undertaking in favour of the
Borrower substantially on the terms of the provisions of Clause 27.3 (Stay of Action by the Lenders) from each of its lenders or other providers of Indebtedness (a Financier) which is not a party to this Agreement, and to
deliver to the Agent promptly upon receipt a copy of such undertakings signed by each Financier. 
  

 Page 52 

 18.24    Subordination of Indebtedness to Subsidiaries: The Borrower shall ensure that:

  

	(a)	 	each Subsidiary which is a creditor of Indebtedness of the Borrower on or prior to the first Advance under Tranche A shall enter into a subordination agreement in an agreed form (on
or prior to the first Advance) with the Borrower and the Agent confirming that (i) such Indebtedness shall rank junior in terms of priority to the debt under this Agreement, (ii) if, and to the extent that, such Subsidiary receives any amount from
or on behalf of the Borrower in respect of such Indebtedness while any amount is due and payable by the Borrower under this Agreement, it shall repay the relevant amounts to the Borrower to the intent that the Borrower shall pay those amounts to the
Lenders or any senior creditor of the Borrower entitled to the same in accordance with Clause 2.5 (Subordination), and (iii) it shall not take any enforcement action which would lead to insolvency against the Borrower; and

  

	(b)	 	each Subsidiary which is or becomes a creditor of Indebtedness of the Borrower after the first Advance under Tranche A shall as soon as practicable, and in any event within 20 days
of becoming such a creditor, enter into such a subordination agreement. 

  
 18.25    Acquisition of ORAs and Share Capital: The Borrower undertakes not to purchase, redeem or otherwise acquire at any time any of the obligations remboursables en actions comprised in the ORA or any
of its issued share capital. 
  
 18.26    Acquisition or
Reimbursement of TSDD or TSDDRA: The Borrower undertakes not to purchase, redeem or otherwise acquire or repay at any time any of the titres comprised in the TSDD or the TSDDRA prior to (but may do so simultaneously with) the repayment in
full and cancellation of this Facility, save that the Borrower shall be entitled at any time to reimburse in shares (remboursement en actions) any of the titres comprised in the TSDDRA. 
  
 18.27    No Subsidiary Guarantees in Favour of Borrower: The
Borrower will procure that no member of the Group shall give any guarantee in respect of Indebtedness incurred by the Borrower in respect of which it is primarily liable. 
  
 18.28    Copies of TSDD and TSDDRA Terms and Conditions: The Borrower shall provide to the Agent on behalf of the
Lenders copies of the terms and conditions of the TSDD and the TSDDRA as soon as practicable after the same are agreed. 
  
 19.    DEFAULT AND EARLY REPAYMENT 
  
 19.1    Events of Default: The occurrence of any of the following
events shall constitute an Event of Default: 
  

	(a)	 	Non-Payment: Any failure by the Borrower to pay, when due and in the manner provided, any sum payable under this Agreement, unless the Borrower satisfies the Agent that such
non-payment is due solely to administrative error (whether by the Borrower or a bank involved in transferring funds to the 

  

 Page 53 

	 	 
Agent) and payment is made within 1 Business Day of the date on which such payment was due. 

  

	(b)	 	Breach of Representation or Warranty: Any representation, warranty or statement by the Borrower in respect of itself or any its Subsidiaries in this Agreement or any other
documents delivered pursuant hereto is not complied with or is or proves to have been incorrect, in any material respect, when made or deemed repeated. 

  

	(c)	 	Breach of Undertakings, etc.: The Borrower does not perform or comply with any one or more of its undertakings, covenants or other obligations (i) under Clauses 18.9
(Insurances), 18.11 (Intellectual Property) or 18.8 (Pensions Schemes) and, if capable of remedy, the relevant breach is not remedied within 21 days of the date on which the Borrower became aware of the same or (ii) under this
Agreement (other than those obligations referred to in (i) of this paragraph 19.1(c)) including, without limitation the financial covenants under Clause 18.6 (Financial Covenants). 

  

	(d)	 	Cross Default: Any other Indebtedness for or in respect of Financial Commitments of the Borrower or any Material Subsidiary or any other Indebtedness of any of them to a bank
or financial institution (other than Group Guarantees given in accordance with the provisions of the definition “Project Finance Indebtedness”), is or is declared to be or is capable of being rendered due and payable before its normal
maturity by reason of any actual or potential default, event of default or the like (however described) or is not paid when due nor within any applicable grace period in any agreement relating to that Indebtedness, provided that no Event of Default
under this Clause 19.1(d) will occur in respect of any such Indebtedness in respect of which a declaration that it has become due and payable is being contested by the relevant borrower in good faith before the competent courts and in respect of
which the Borrower has provided to the Agent, within 10 days of such declaration, opinions from two leading international law firms that the relevant borrower has good grounds for taking such a position and a certificate stating that the relevant
borrower has established adequate reserves in respect of such Indebtedness, and further provided that no Event of Default will occur under this Clause 19.1(d): 

  

	 	(i)	 	unless and until the aggregate amount of the Indebtedness (whether of one or more Persons) in respect of which one or more of the events mentioned above in this Clause 19.1(d)
has/have occurred equals or exceeds EUR 35 million or its equivalent (as reasonably determined by the Agent); or 

  

	 	(ii)	 	if the Indebtedness in question arises under the Bridge Facility Agreement or any of the Extended Facility Agreements, unless Indebtedness thereunder is subject to a payment default
or acceleration in which case such default or acceleration will constitute an Event of Default under this Clause 19.1(d); or 

  

	 	(iii)	 	by reason of an Excluded Default, 

  

 Page 54 

	 	 
and provided further that, in the case of an actual or potential default, event of default or the like under any of the Affected Facilities or the Bonding
Guarantee Facility Agreement or an actual or potential default, event of default or the like other than a payment default or acceleration under the Bridge Facility Agreement or any of the Extended Facility Agreements, the Lenders agree not to
instruct the Agent to take any steps under Clause 19.3 (Cancellation/Acceleration) in order to allow negotiations between the borrowers and the lenders under those other facilities until the earlier of (A) 30 days from the date of an event of
default or the like, and (B) the date on which any Indebtedness under any such other facility is, or is declared, due and payable or put on demand before its stated maturity or commitment is cancelled. 

  

	(e)	 	Insolvency: The Borrower, any Material Subsidiary or any other member of the Consolidated Group (provided, in the case of such other member of the Consolidated Group, such
event has or could have a Material Adverse Effect) is (or is held by a court of competent jurisdiction to be) insolvent or unable to pay its debts as they become due, or becomes the subject of an Insolvency Proceeding. 

  

	(f)	 	Enforcement Proceedings: Any of the enforcement proceedings provided for under the French Law no. 91.650 of 9 July 1991 or any distress, attachment, execution or other legal
process affects, is levied, enforced or sued out on or against the Assets of the Borrower, any Material Subsidiary, or any other member of the Group if it has or could have a Material Adverse Effect on the Borrower. 

  

	(g)	 	Security Enforceable: Any Security on or over the Assets of the Borrower, any Material Subsidiary or any other member of the Group becomes enforceable and any step (including
the taking of possession or the appointment of a receiver, manager or similar person) is taken to enforce that Security which has or could have a Material Adverse Effect. 

  

	(h)	 	Winding-up: Any step is taken by any Person with a view to the Winding-up of the Borrower or any other member of the Group (provided that, in the case of such other member of
the Group, such event has or could have a Material Adverse Effect), or any of them ceases or threatens to cease to carry on all or a substantial part of its business, except, in the case of any other member of the Group, for the purpose of and
followed by a solvent intra-group reconstruction, amalgamation, reorganisation, merger or consolidation, or otherwise where such Winding-up is vexatious or frivolous and it is discharged within 30 days of such step being taken.

  

	(i)	 	Litigation: Any litigation, arbitration or administrative or regulatory proceeding is commenced by or against the Borrower or any Material Subsidiary which could reasonably
be expected to be adversely determined and, if so determined, could reasonably be expected to have (whether by itself or together with any related claims) a Material Adverse Effect in the opinion of the Majority Lenders. 

  

 Page 55 

	(j)	 	Audit Qualification: The Auditors qualify their report on any audited consolidated financial statements of the Borrower other than with a qualification of a minor nature or
of a technical nature which is immaterial. 

  

	(k)	 	Change of Control: Control of the Borrower is acquired by any Person, or any group of connected Persons acting in concert acquires any of the capital or voting rights of the
Borrower resulting in such Person or persons holding more than 50% of such capital or voting rights. 

  

	(l)	 	Illegality or Invalidity: (i) It is or will become unlawful for the Borrower to perform or comply with any one or more of its obligations under this Agreement, or (ii) any
one or more of the Borrower’s obligations under this Agreement are or become invalid, and in each case the Majority Lenders determine that the unlawfulness of the relevant obligation(s) is material. 

  

	(m)	 	Analogous Events: Any event occurs which, under the laws of any relevant jurisdiction, has an analogous or equivalent effect to any event mentioned in Clauses 19.1(e)
(Insolvency), 19.1(f) (Enforcement Proceedings) or 19.1(h) (Winding-up). 

  

	(n)	 	Material Adverse Change: Any event occurs or circumstance arises which the Majority Lenders determine gives reasonable grounds for believing that a Material Adverse Effect
has occurred since the date of this Agreement. 

  

	(o)	 	PwC Report: The Majority Lenders determine, on the basis of the latest PwC Report, that any event has occurred or circumstance arisen which has or is likely to have a
Material Adverse Effect. However, if the relevant event or circumstance results primarily from any condition imposed by the European Commission subject to which it will authorise the implementation of the Protocol, the term “Material Adverse
Effect” shall for the purposes of this paragraph have the meaning ascribed to it in Clause 19.2(b) (Implementation of the Protocol) and the first sentence of this paragraph shall be read without the words “or is likely to
have”. 

  
 19.2    Early Repayment
Events: The following are Early Repayment Events: 
  

	(a)	 	Failure to Receive T&D Purchase Price: The Borrower has not received, by the dates set out in the T&D Letter, the amounts set out therein and in particular the
Borrower has not received the actual net cash proceeds to be received by it at closing of T&D and which are set out in paragraph 5 of the T&D Letter by no later than 12 January 2004. 

  

	(b)	 	Implementation of the Protocol: the Majority Lenders determine that the satisfaction of any condition subject to which the European Commission will authorise the
implementation of the Protocol has a Material Adverse Effect, provided that for the purposes of this paragraph only, Material Adverse Effect shall mean any event or circumstance which has a material adverse effect (a) on the financial
condition of the Group taken as a whole, or (b) on the ability of the Borrower to perform and comply with its obligations under this Agreement. 

  

 Page 56 

	(c)	 	Failure to Implement the Protocol: Any party to the Protocol fails to perform or maintain compliance with any of its obligations under the Protocol. 

 
 19.3    Cancellation/Acceleration: If at any time and for any
reason (and whether within or beyond the control of the Borrower) any Event of Default or Early Repayment Event has occurred and is subsisting, the Agent, if so instructed by the Majority Lenders, shall by notice to the Borrower and without mise
en demeure or any other judicial or extra-judicial step (but subject to the mandatory provisions of articles L.620-1 to L.628-3 of the French Code de Commerce) declare: 
  

	(a)	 	the Commitments to be cancelled, whereupon they shall immediately be cancelled; 

  

	(b)	 	in the case of an Event of Default, all Advances, all Deferred Interest, unpaid accrued interest and fees and any other sum then payable under this Agreement to be immediately due
and payable, whereupon they shall become so due and payable; and/or 

  

	(c)	 	in the case of an Early Repayment Event, all Advances, all Deferred Interest, unpaid accrued interest and fees and any other sum then payable under this Agreement to be due and
payable on the earlier of (i) the seventh Business Day after delivery of that notice and (ii) the next Interest payment Date, whereupon they shall become so due and payable. 

  
 20.    DEFAULT INTEREST 
  
 20.1    Interest on Overdue Sums: If the Borrower does not pay any
sum under this Agreement when due and payable, it shall (to the fullest extent permitted by law) pay interest on the amount from time to time outstanding in respect of that overdue sum for the period beginning on its due date and ending on the date
of its receipt by the Agent (both before and after judgement) in accordance with this Clause 20. For the avoidance of doubt, this Clause 20.1 shall not apply to any Deferred Interest prior to the Final Maturity Date or such earlier date on which the
Deferred Interest becomes due and payable. For the purpose of this Clause 20, if any payment is received by the Agent on the due date, but too late to be made available by the Agent on that due date to the Person(s) entitled to it under Clause 15.5
(Distribution to Lenders), that payment shall be deemed to be received on the next Business Day (but the Agent will give credit to the Borrower for any interest earned by the Agent on the relevant sum pending distribution to such Person(s)).

  
 20.2    Default Interest Periods and Rates:
Interest under this Clause 20 shall be calculated by reference to successive Default Interest Periods, each of which (other than the first, which shall begin on the due date) shall begin on the last day of the previous one. Each such Default
Interest Period shall be of three months or such shorter period as the Agent may from time to time select, and the rate of interest applicable for all or any part of a particular Default Interest Period shall be the rate per annum equal to the
Default Interest Rate for (or, as the case may be, for that part of) that Default Interest Period, except as follows: 
  

 Page 57 

	(a)	 	Subject to Clauses 20.2(b) (Default Interest Periods and Rates) and 20.2(c) (Default Interest Periods and Rates), until the first Business Day after the Agent first
becomes aware of the relevant default, the Agent may require that each Default Interest Period relating to the relevant overdue sum shall be an “overnight” period beginning on one Business Day and ending on the next. The rate of interest
for a particular “overnight” period shall be the rate per annum equal to the sum of 3%, the relevant Margin, the Mandatory Costs and EONIA for that Default Interest Period. 

  

	(b)	 	If the overdue sum is of principal of an Advance and becomes due before the Repayment Date of that Advance, the first Default Interest Period applicable to that overdue sum shall
end on that Repayment Date and the rate of interest applicable to that sum for that Default Interest Period shall be the rate per annum equal to the sum of 3% and the rate applicable to it immediately before it became due. 

 

	(c)	 	If any event mentioned in Clause 13.1 (Triggering Events) occurs in relation to any Default Interest Period applicable to an overdue sum, the rate of interest payable on each
Person’s share of that sum for all or any part of that Default Interest Period shall be the sum of 3%, the relevant Margin, the Mandatory Costs and the cost to that Person (as certified by it and expressed as a rate per annum) of funding its
share during that Default Interest Period by whatever means it determines to be appropriate. 

  

	(d)	 	Any Default Interest Period which would otherwise end on a non-Business Day shall instead end on the next Business Day in the same calendar month (if there is one) or the preceding
Business Day (if there is not). 

  
 20.3    Payment and Compounding of Default Interest: Interest accrued under this Clause 20 shall be due on demand by the Agent but, if not previously demanded, shall be paid when due in accordance with Clause
8.5(b). If not paid when due, the interest shall be added to the overdue sum and itself bear interest accordingly, to the fullest extent permitted by French law, and only if such interest accrued on overdue amounts remains due (within the meaning of
article1154 of the French Civil Code) for a period of at least one year. 
  
 21.    INDEMNITIES 
  
 21.1    Miscellaneous Indemnities: The Borrower shall on demand and, on receipt of written justification, indemnify the Agent, each Arranger and each Lender against any funding or other reasonable cost, loss,
expense or liability sustained or incurred by it as a result of: 
  

	(a)	 	an Advance not being made by reason of non-fulfilment of any of the conditions in Clause 4.1 (Drawdown Conditions) or the Borrower purporting to revoke a notice requesting an
Advance; 

  

	(b)	 	the occurrence or continuance of any Event of Default, Potential Event of Default or Early Repayment Event; 

  

 Page 58 

	(c)	 	the receipt or recovery by any party (or the Agent on its behalf) of all or any part of an Advance or overdue sum otherwise than on the Repayment Date of that Advance or the last
day of a Default Interest Period relating to that overdue sum; or 

  

	(d)	 	any Lender’s Commitment being cancelled as provided in the first sentence of Clause 7.2 (Of Certain Lenders). 

  
 21.2    Break Funding Costs: In the case of Clauses 21.1(a)
(Miscellaneous Indemnities) and 21.1(c) (Miscellaneous Indemnities) above, the amount payable shall in any event include the amount (if any) by which: 
  

	(a)	 	the amount of interest which the relevant Person is able to obtain by placing an amount equal to its share of the relevant Advance or overdue sum or (as the case may be) of the
relevant amount so received or recovered on deposit in the Inter-bank Market, for the remainder of the relevant Interest Period or Default Interest Period, as soon as reasonably practicable after it becomes aware of the relevant event referred to in
Clause 21.1(a) (Miscellaneous Indemnities) or 21.1(c) (Miscellaneous Indemnities) 

  
 is less than: 
  

	(b)	 	the amount of interest which, in accordance with the expressed terms of this Agreement, would otherwise be payable to that Person on its share of that Advance for its Interest
Period or Default Interest Period or (as the case may be) of the relevant amount for the remainder of the relevant Interest Period or Default Interest Period. 

  
 21.3    Currency Indemnity: 
  

	(a)	 	In respect of any sum payable by the Borrower under or in connection with this Agreement, including damages, the currency specified in Clause 15.3 (Currency of Payments) in
respect of that sum (the Currency of Account) shall be the sole currency of account and payment. 

  

	(b)	 	Any amount received or recovered in a currency other than the relevant Currency of Account (whether as a result of, or of the enforcement of, a judgment or order of a court of any
jurisdiction, in the Winding-up of the Borrower or otherwise) by the Agent or any Arranger or Lender in respect of any sum expressed to be due to it from the Borrower under this Agreement shall only discharge the Borrower to the extent of the amount
in that Currency of Account which the recipient is able, in accordance with its usual practice, to purchase with the amount so received or recovered in that other currency on the date of that receipt or recovery (or, if it is not practicable to make
that purchase on that date, on the first date on which it is practicable to do so). 

  

	(c)	 	 If that amount in that Currency of Account is less than the amount expressed to be due to the recipient under this Agreement, the Borrower shall indemnify it, to
the fullest extent permitted by law, against any loss sustained by it as a result. In any event, the Borrower shall indemnify the recipient against the cost 

  

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of making any such purchase. For the purpose of this Clause 21.3, it will be sufficient for the Agent, Arranger or Lender, as the case may be, to demonstrate
that it would have suffered a loss had an actual exchange or purchase been made. 

  
 21.4    Indemnities Separate: Each of the indemnities in this Agreement constitutes a separate and independent obligation from the other obligations in this Agreement, shall give rise to a
separate and independent cause of action, shall apply irrespective of any indulgence granted by the Agent, any Arranger and/or any Lender and shall continue in full force and effect despite any judgment, order, claim or proof for a liquidated amount
in respect of any sum due under this Agreement or any other judgment or order. 
  
 22.    THE AGENT AND ARRANGERS 
  
 22.1    Appointment of Agent: Each Lender irrevocably appoints the Agent to act as its agent for the purpose of this Agreement and authorises
it to perform the functions specifically delegated to it by this Agreement and such other functions as are reasonably incidental. However, the Agent may not begin any legal action or proceeding in the name of a Lender without its consent. The
relationship between the Agent and the Lenders is of agent and principal only. The Agent shall not be a trustee or fiduciary for any Lender, nor an agent, trustee or fiduciary for the Borrower, under or in relation to this Agreement. 
  
 22.2    Agent’s Duties: The Agent shall: 
  

	(a)	 	promptly send to each Lender details of each communication received by it in its capacity as Agent from the Borrower under this Agreement, except that details of any communication
relating to a particular Lender shall be sent to that Lender only; 

  

	(b)	 	promptly send to each Lender a copy of any legal opinion delivered under this Agreement and of any document or information received by it under Clause 17 (Information);

  

	(c)	 	except as otherwise provided in this Agreement, act in accordance with any instructions from the Majority Lenders; 

  

	(d)	 	promptly send to each Lender details of any increase in the Tranche B Amount in accordance with article 3.4 of the Protocol, together with details of the corresponding change in the
Tranche B Commitments of the G7 Banks; 

  

	(e)	 	have only those obligations and responsibilities, of a solely mechanical and administrative nature, expressly specified in this Agreement. 

  
 22.3    Agent’s Rights: The Agent may: 
  

	(a)	 	perform any of its functions under this Agreement by or through its personnel or agents; 

  

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	(b)	 	refrain from exercising any right, power or discretion under this Agreement until it has received instructions from the Majority Lenders as to whether (and, if so, how) it is to be
exercised and shall in all cases be fully protected when acting, or (if so instructed) refraining from acting, in accordance with instructions from the Majority Lenders; 

  

	(c)	 	treat (a) the Lender which makes available any share of an Advance as the Person entitled to repayment of that share unless all or part of it has been transferred (or the Agent has
received notice of assignment of all or part of it) in accordance with Clause 26.3 (Transfer or Assignment byLenders) and (b) the office notified by a Lender to the Agent for this purpose before the signing of this Agreement (or, as
the case may be, set out in the relevant Transfer Notice or notice of assignment) as its Facility Office unless the Agent has received from that Lender a notice of change of Facility Office in accordance with Clause 26.4 (Facility Offices).
The Agent may act on any such notice until it is superseded by a further notice; 

  

	(d)	 	refrain from disclosing any document or information if such disclosure (and may refrain from doing anything else which) would or might in its opinion be contrary to any law or
Directive, be a breach of any duty of secrecy or confidentiality or otherwise render it liable to any Person and may do anything which is in its opinion necessary to comply with any law or Directive; 

  

	(e)	 	assume that no Event of Default, Potential Event of Default or Early Repayment Event has occurred unless an officer of the Agent, in performing the Agent’s functions under this
Agreement, is notified of the contrary or in relation to payments only, acquires actual knowledge to the contrary; and 

  

	(f)	 	refrain from taking any step (or further step) to protect or enforce the rights of any Person under this Agreement until it has been indemnified (or received confirmation that it
will be so indemnified) and/or secured to its satisfaction against any and all costs, losses, expenses or liabilities (including legal fees) which it would or might sustain or incur as a result. 

  
 22.4    Rights of Agent and Arrangers: The Agent and each Arranger
(and, in the case of Clauses 22.4(d) (Rights of Agent and Arrangers) and, each of their respective Affiliates) may: 
  

	(a)	 	rely on any communication or document believed by it, acting reasonably, to be genuine; 

  

	(b)	 	rely as to any matter of fact which might reasonably be expected to be within the knowledge of the Borrower on a statement by or on behalf of the Borrower; 

 

	(c)	 	obtain and pay for such legal or other expert advice or services as may to it seem necessary or desirable and rely on any such advice; 

  

	(d)	 	retain for its own benefit and without liability to account any fee or other sum receivable by it for its own account; and 

  

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	(e)	 	accept deposits from, lend money to, provide any advisory or other services to or engage in any kind of banking or other business with any party to this Agreement or any Affiliate
of any party (and, in each case, may do so without liability to account). Without prejudice to the generality of this Clause 22.4(e), neither the Agent, any Arranger nor any of their respective Affiliates shall have any duty to disclose or act on or
take into account any document or information of which any of them has knowledge or notice or otherwise becomes aware in the course of doing anything permitted by this Clause 22.4(e) and, in performing its duties, obligations and responsibilities as
Agent, the Agent shall be entitled to ignore any such document or information which is not publicly available. 

  
 22.5    Exoneration of Agent and Arrangers: Neither the Agent nor any Arranger nor any of their respective personnel or agents shall be:

  

	(a)	 	responsible for the adequacy, accuracy, completeness or reasonableness of any representation, warranty, statement, projection, assumption or information in the Information Package,
this Agreement or any notice or other document delivered under or in connection with this Agreement; 

  

	(b)	 	responsible for the execution, delivery, validity, legality, adequacy, enforceability or admissibility in evidence of this Agreement or any such notice or other document;

  

	(c)	 	obliged to enquire as to the occurrence or continuation of an Event of Default, Potential Event of Default or Early Repayment Event; or 

  

	(d)	 	liable for anything done or not done by it or any of them under or in connection with this Agreement save in the case of its or their own faute lourde (gross negligence) or
dol (wilful misconduct). 

  
 None of the Arrangers shall have
any duty, obligation or responsibility under or in connection with this Agreement. 
  
 22.6    Agent and Arrangers as Lenders: The Agent and each Arranger shall have the same rights and powers with respect to its Commitment and share of the Advances (if any) as any other Lender and may exercise
those rights and powers as if it were not also acting as Agent or, as the case may be, as Arranger. 
  
 22.7    Non-Reliance on Agent and Arrangers: Each Lender confirms that it has itself been, and will at all times continue to be, solely responsible for making its own independent
investigation and appraisal of the business, financial condition, prospects, creditworthiness, status and affairs of the Borrower or any Subsidiary of the Borrower and has not relied, and will not at any time rely, on the Agent and/or any Arranger
and/or any other Lender: 
  

	(a)	 	 to provide it with any information relating to the business, financial condition, prospects, creditworthiness, status or affairs of the Borrower, any Subsidiary of
the Borrower or any other Person, whether coming into its possession 

  

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before or after the making of any Advance (except, in the case of the Agent, as stated in Clause 22.2 (Agent’s Duties));

  

	(b)	 	to check or enquire into the adequacy, accuracy, completeness or reasonableness of any representation, warranty, statement, projection, assumption or information at any time
provided by or on behalf of the Borrower, any Subsidiary of the Borrower or any other Person under or in connection with this Agreement (whether or not that information has been or is at any time circulated to it by the Agent and/or any Manager),
including any contained in the Information Memorandum; or 

  

	(c)	 	to assess or keep under review the business, financial condition, prospects, creditworthiness, status or affairs of the Borrower, any Subsidiary of the Borrower or any other Person.

  
 22.8    Indemnity to Arrangers and
Agent: To the extent that the Borrower does not do so on demand or is not obliged to do so, each Lender shall on demand indemnify the Arrangers and the Agent in the proportion borne by its Outstandings to all the Outstandings at the relevant
time (or, if there are then no Outstandings, in the proportion borne by its Commitment to the Total Commitments): 
  

	(a)	 	in the case of the Agent, against any cost, expense or liability mentioned in Clause 24 (Expenses and Stamp Duty) or sustained or incurred by the Agent in complying with any
instructions from the Majority Lenders or otherwise sustained or incurred by the Agent in connection with its duties, obligations and responsibilities under this Agreement; and 

  

	(b)	 	in the case of the Arrangers, against any reasonable costs and expenses of the Arrangers sustained or incurred by the Arrangers in connection with this
Agreement            , 

  
 except in each case to the extent that they are sustained or incurred as a result of the faute lourde (gross negligence) or dol (wilful misconduct) of the Agent or any Arranger or any of their respective
personnel or agents. 
  
 22.9    Resignation of Agent:
Notwithstanding the irrevocable appointments in Clauses 22.1 (Appointment of Agent) and 22.11 (Transfer Notice), the Agent may resign at any time (after consultation with the Borrower) if it gives at least 7 days’ notice to the
Borrower and the Lenders. However, no resignation shall be effective until the successor has been appointed and accepted its appointment in accordance with this Clause 22.9. The Agent may in its notice of resignation appoint any of its Affiliates
with an office in Paris as its successor. If it does not do so, the Majority Lenders, after consultation with the Borrower, unless an event referred to in Clause 19.3 has occurred, may appoint a successor. If the relevant successor has not been so
appointed and accepted its appointment within 15 days after the date of the notice of resignation, the resigning Agent may appoint any reputable bank or financial institution with an office in Paris (whether or not an Affiliate of the Agent) to be
its successor. Any appointment of a successor must be in writing, signed by the Person(s) appointing that successor and delivered to that successor. Any acceptance of such appointment must be in writing, signed by the Person appointed and delivered
to the 
  

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 Person(s) appointing that successor. The other parties to this Agreement shall be promptly informed of the acceptance by
a successor Agent. Upon the successor accepting its appointment, the resigning Agent shall be automatically discharged from any further obligation under this Agreement and its successor and each of the other parties to this Agreement shall have the
same rights and obligations among themselves as they would have had if the successor had been the original Agent party to this Agreement. The resigning Agent shall provide its successor with (or with copies of) such of its records as its successor
requires to carry out its functions under this Agreement. 
  
 22.10    The Majority Lenders may, by giving 30 days’ prior written notice to the Agent, remove the Agent from its appointment as such hereunder. The Majority Lenders may appoint (after consultation with the
Borrower) a successor Agent provided that such successor is a reputable bank or financial institution with an office in Paris. If the Lenders have not, within 30 days after such notice of removal, appointed a successor Agent which shall have
accepted such appointment, the retiring Agent shall have the right to appoint (after consultation with the Borrower) a successor Agent, in accordance with Clause 22.9 (Resignation of Agent). 
  
 22.11    Transfer Notice: The Borrower, each Arranger and each
Lender (except for a Lender voluntarily seeking the relevant transfer in accordance with Clause 26.3 (Transfer or Assignment by Lenders)) irrevocably authorise the Agent to sign each Transfer Notice on their behalf. 
  
 22.12    Agency Department: In the exercise of its functions the
Agent shall be treated as acting through an agency department separate from any of its other departments or services, and any information received by such other departments or services will not be treated as known by the Agent unless communicated to
it in its capacity as such. 
  
 23.    SET-OFF/PRO RATA SHARING 
  
 23.1    Set-Off: The Borrower authorises any other party to this Agreement (but only so long as an Event of Default, a Potential Event of
Default or an Early Repayment Event has occurred and is continuing) to apply (without prior notice) any credit balance (whether or not then due) to which it is at any time beneficially entitled on any account at, any sum held to its order by and/or
any liability to it of, any office of that party in or towards satisfaction of any sum then due from it to that party under this Agreement and unpaid and, for that purpose, to convert one currency into another at the rate of exchange obtained by
such party in accordance with its usual practice (but so that nothing in this Clause 23.1 shall be effective to create a charge). No party shall be obliged to exercise any of its rights under this Clause 23.1, which shall be without prejudice and in
addition to any right of set-off, combination of accounts, lien or other right to which it is at any time otherwise entitled (whether by operation of law, contract or otherwise). 
  
 23.2    Pro Rata Sharing: If at any time the proportion received or recovered (whether by direct payment, by
exercise of any right of set-off, combination of accounts or lien, or otherwise) by any Lender (the Recovering Lender) in respect of the total sum which has become due to it from the Borrower under this Agreement 
  

 Page 64 

 before that time exceeds the proportion received or recovered by the Lender(s) receiving or recovering the smallest
proportion (if any), then: 
  

	(a)	 	within two Business Days after the Recovering Lender receives or recovers any such sum, the Recovering Lender shall notify the Agent of the amount and currency so received or
recovered, how it was received or recovered and whether it represents principal, interest or other sums and in respect of which tranche. 

  

	(b)	 	within two Business Days after receiving a request from the Agent, the Recovering Lender shall pay to the Agent an amount equal to the excess; 

  

	(c)	 	the Agent shall promptly redistribute that payment as if it were made by the Borrower; and 

  

	(d)	 	as between the Borrower and the Lenders, that excess amount shall be treated as having been paid to the Lenders to which (and in the proportions in which) it is redistributed under
Clause 23.2(c), rather than as having been paid to the Recovering Lender and the Recovering Lender will be subrogated to the rights of the other Lenders which have shared in the redistribution, which other Lenders agree to waive the benefit of
Article 1252 of the French Civil Code in connection therewith. 

  
 If all or part of any amount received or recovered by the Recovering Lender has to be refunded by it (with or without interest), each Lender to whom any part of that amount has been redistributed shall (within two Business Days after
receiving a request from that Lender) in turn pay to that Lender its proportionate share of the amount to be refunded and of any interest required to be paid by the Recovering Lender on that amount in respect of all or any part of the period from
the date of the relevant redistribution to the date of that payment to the Recovering Lender. 
  
 Any amount received or recovered by a Lender under a transfer, assignment, sub-participation (or the like) shall be ignored for the purpose of this Clause 23.2 (except to the extent, if any, that such amount is
received or recovered from or is, to that Lender’s knowledge, funded by the Borrower or any other member of the Consolidated Group). Furthermore, a Lender shall not be obliged to share any amount which it has received or recovered as a result
of taking legal proceedings with any other Lender which had an opportunity to participate in those legal proceedings but did not do so and did not take separate legal proceedings. 
  
 24.    EXPENSES AND STAMP DUTY 
  
 24.1    Expenses and Stamp Duty: Whether or not any Advance is
made, the Borrower shall pay: 
  

	(a)	 	Initial Expenses: promptly on written demand, all reasonable costs and expenses (including legal fees and Taxes) incurred by the Lenders, the Arrangers and the Agent in
connection with (i) the preparation, negotiation, syndication or entry into of this Agreement, and (ii) any amendment of, 

  

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supplement to or waiver or consent in respect of this Agreement requested by or on behalf of the Borrower (whether or not entered into or given);

  

	(b)	 	Enforcement Expenses: within 3 Business Days of demand, all costs and expenses (including legal fees and Taxes) incurred by the Agent or any Lender in protecting or enforcing
(or attempting to protect or enforce) any right under this Agreement and/or any such amendment, supplement, waiver or consent; and 

  

	(c)	 	Stamp Duty: promptly on written demand, and in any event before any interest or penalty becomes payable, any stamp, documentary, registration or similar Tax payable in
connection with the entry into, registration, performance, enforcement or admissibility in evidence of this Agreement and/or any such amendment, supplement, waiver or consent, and shall indemnify the Agent, the Arrangers and the Lenders against any
liability with respect to or resulting from any delay in paying or omission to pay any such Tax. 

  
 24.2    Other Expenses: The Borrower shall also, from time to time on demand of the Agent, reimburse it, at such reasonable hourly and/or daily rates as it shall from time to time notify to
the Borrower, in respect of management time and/or other resources used by it in connection with any such amendment, supplement, waiver or consent, or complying with any instructions from the Majority Lenders, or the protection or enforcement or
attempted protection or enforcement of any right under this Agreement and/or any such amendment, supplement, waiver or consent. 
  
 25.    CALCULATIONS AND EVIDENCE 
  
 25.1    Basis of Calculation: All interest and commitment fees shall accrue from day to day and shall be
calculated on the basis of the actual number of days elapsed and a year of 360 days or in accordance with the then current market practice in the Inter-bank Market. 
  
 25.2    Loan Accounts: The entries made in the accounts maintained by each Lender in accordance with its usual
practice shall be prima facie evidence of the existence and amounts of the obligations of the Borrower recorded in them. 
  
 25.3    Certificates: A certificate by the Agent or any Arranger or Lender as to any sum payable to it under this Agreement, and any other
certificate, determination, notification or the like of the Agent or any Arranger or Lender or the Majority Lenders provided for in this Agreement, shall be conclusive save for manifest error. Any such certificate as to any sum shall set out the
basis of computation of that sum in reasonable detail but shall not be required to disclose any information reasonably considered to be confidential. 
  

	26.    TRANSFER	 	

  
 26.1    Benefit and Burden of this Agreement: This Agreement shall benefit and bind the parties, any New Lender in respect of which a transfer agreement or confirmation of assignment becomes
effective in accordance with Clause 26.3 
  

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 (Transfer or Assignment by Lenders), their permitted assignees and their respective successors. Any reference in
this Agreement to any party shall be construed accordingly. 
  
 26.2    Transfer or Assignment by Borrower: The Borrower may not assign or transfer all or part of its rights or obligations under this Agreement. 
  
 26.3    Transfer or Assignment by Lenders: 
  

	(a)	 	Any Lender may at any time sub-participate all or part of its share of an Advance, or all or part of its Outstandings/Commitment. Any Lender may also at any time freely assign all
or part of its share of an Advance, or transfer all or part of its Outstandings/Commitment, to any New Lender in accordance with the provisions of this Clause 26.3. The Borrower hereby expressly consents to such assignment or transfer. Any
assignment shall be effective as between the Lenders upon receipt by the Agent of a written confirmation from the New Lender (in a form and substance satisfactory to the Agent) that the New Lender has become entitled to the same rights and will
assume the same obligations to the Borrower and the other Lenders as it would have been under if it had been an original signatory to this Agreement, subject to the terms of that confirmation. A transfer will only be effective if the following
procedure is complied with: 

  

	 	(i)	 	a transfer is effected in accordance with paragraph (ii) below when the Agent executes an otherwise duly completed transfer agreement (in the form set out in Schedule 4) delivered
to it by the Lender making the transfer and the New Lender. The Agent shall, as soon as reasonably practicable after receipt by it of such duly completed transfer agreement appearing on its face to comply with the terms of this Agreement and
delivered in accordance with the terms of this Agreement, execute that transfer agreement; and 

  

	 	(ii)	 	by virtue of the execution of such transfer agreement, as from the transfer date (1) to the extent that in such transfer agreement the Lender making the transfer seeks to transfer
its rights and obligations under this Agreement, such Lender shall be discharged to the extent provided for in such transfer agreement from further obligations towards the Borrower and the other Lenders under this Agreement, (2) the rights and
obligations of the Lender making the transfer, with respect to the Borrower, shall be transferred to the New Lender, to the extent provided for in such transfer agreement, (3) the Agent, the Arrangers, the New Lender and the other Lenders shall have
the same rights and obligations between themselves as they would have had had the New Lender been an original signatory to this Agreement with the rights and/or obligations to which it is entitled and subject as a result of the transfer and to that
extent the Agent, the Arrangers ant the Lender making the transfer shall each be released from 

  

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further obligations to each other under this Agreement, and (4) the New Lender shall become a party to this Agreement. 

  

	(b)	 	Each confirmation of assignment and transfer sent to the Agent shall be accompanied by a transfer fee payable to the Agent by the New Lender or the Lender making the assignment or
transfer, as the case may be. Until further notice, that fee (which will be subject to review by the Agent from time to time to make it consistent with market rates) will be EUR 1,000 for each transfer or assignment. 

  

	(c)	 	A copy of each transfer agreement referred to in paragraph (a) above shall be sent to the Borrower. 

  
 26.4    Facility Offices: The initial Facility Office of each Lender has been notified by that Lender to the
Agent. Any Lender may at any time with the written consent of the Borrower, such consent not to be unreasonably withheld and which consent shall be deemed to have been given unless, within 7 Business Days of being requested to consent, the Borrower
refuses its consent, change its Facility Office in relation to all or a specified part of its Commitment and/or Outstandings by notifying the Agent of the fax number and address of its new Facility Office, no later than 4 Business Days prior to the
date of any such change. 
  
 26.5    Reference
Banks: 
  

	(a)	 	If a Reference Bank ceases to have a Paris or Brussels office, as the case may be, or transfers or assigns all its rights and obligations under this Agreement or if the Commitment
of any Reference Bank is cancelled under Clause 7.2 (Of Certain Lenders) or if its Outstandings are prepaid under Clause 6.2 (Of Certain Lenders) or Clause 11 (Illegality), it shall be replaced as a Reference Bank by such other
Lender with an office in Paris or Brussels, as the case may be, as the Agent (after consultation with the Borrower) shall designate by notice to the Borrower and the Lenders. 

  

	(b)	 	If a Reference Bank does not supply a quotation required from it in order to determine EONIA or EURIBOR, as the case may be, pursuant to this Agreement, EONIA or EURIBOR, as the
case may be, shall be determined on the basis of the quotations supplied by the remaining Reference Banks. 

  
 26.6    Disclosure of Information: The Agent or any Arranger or any Lender may, without the consent of the Borrower, approach and disclose to
an actual or potential New Lender, assignee, sub-participant or the like such information about the Borrower or any other Person as it may think fit provided that the person to whom the information is to be given has entered into a confidentiality
undertaking in the form set out under Schedule 11 (Form of Confidentiality Undertaking, Confidentiality Letter Seller). 
  
 26.7    Limitation on Certain Obligations of Borrower: If, at the time of any transfer or assignment by a Lender or of any change of Facility
Office, circumstances exist which would oblige the Borrower to pay to the New Lender or assignee (or, in the case of a change of Facility Office, the relevant Lender) under Clauses 10 (Taxes), 
  

 Page 68 

 11 (Illegality) or 12 (Increased Costs) any sum in excess of the sum (if any) which it would have been
obliged to pay to that Lender under the relevant Clause in the absence of that transfer, assignment or change, the Borrower shall not be obliged to pay that excess. 
  
 27.    REMEDIES, WAIVERS, AMENDMENTS AND
CONSENTS 
  
 27.1    No Implied Waivers,
Remedies Cumulative: No failure on the part of the Agent or any Arranger or Lender to exercise, and no delay on its part in exercising, any right or remedy under this Agreement will operate as a waiver thereof, nor will any single or partial
exercise of any right or remedy preclude any other or further exercise of that or any other right or remedy. The rights and remedies provided in this Agreement are cumulative and not exclusive of any other rights or remedies (whether provided by law
or otherwise). 
  
 27.2    Amendments, Waivers and
Consents: Any provision of this Agreement may be amended or supplemented only if the Borrower and the Majority Lenders so agree in writing and any Event of Default, Potential Event of Default, Early Repayment Event, provision or breach of any
provision of this Agreement may be waived before or after it occurs only if the Majority Lenders so agree in writing save that: 
  

	(a)	 	an amendment, supplement or waiver which puts one or more Lenders in a better or worse position than one or more other Lenders or changes or relates to (a) the Tranche A Available
Amount or the Tranche B Available Amount or any Lender’s Commitment or Available Commitment, (b) the Tranche A Maturity Date or the Tranche B Maturity Date, (c) the amount of the Advances, (d) the amount or date of any repayment, (e) a
reduction in the Margin or a change in the dates of payment of interest, (f) a reduction in the amount or a change in the date(s) of payment of any fee payable under Clause 9, (g) the currency of any payment, (h) the definition of “EONIA”,
“EURIBOR”, or “Majority Lenders”, (i) the provisions of Clause 23 (Set-off/Pro Rata Sharing), (j) the provisions of Clause 30 (Nature of Rights and Obligations), (k) Clause 26.2 (Borrower), (l) any provision
expressed to require the consent of all the Lenders (whether or not containing any other exceptions), (m) Clause 4.4 (Condition Precedent to First Tranche A Drawdown), (n) with respect to an amendment or supplement only, the provisions of
Clauses 19.1 (Events of Default) and 19.2 (Early Repayment Events) or (o) this Clause 27.2, shall require the agreement of all the Lenders and (in the case of an amendment or supplement) the Borrower also; and 

 

	(b)	 	an amendment, supplement or waiver which changes or relates to the rights and/or obligations of the Agent or any Arranger shall require its agreement also. 

 
 Any consent by the Agent or any Arranger or Lender or the Majority Lenders under this
Agreement must also be in writing. Any such waiver or consent may be given subject to any conditions thought fit by the Person giving it and shall be effective only in the instance and for the purpose for which it is given. 
  

 Page 69 

 27.3    Stay of Action by the Lenders: Each Lender agrees (to the extent that it is able to do
so in its own name or is not contractually restricted from so agreeing at the date hereof) that it shall not take any action, or vote in favour of taking any action, in each case, to cause or declare due and payable or put on demand any Indebtedness
of the Borrower or any member of the Group before its normal maturity by reason of any Excluded Default in respect of that Indebtedness. However, any actual or potential default, event of default or the like (howsoever described) shall cease to be
an Excluded Default if any Person or group of Persons so entitled declares due and payable or puts on demand any Indebtedness of the Borrower or any member of the Group, or cancels or suspends any commitment under any agreement to which the Borrower
or any member of the Group is a party. In each case where a Lender is unable to agree in its own name or is contractually restricted from so agreeing at the date hereof, the relevant Lender, in its capacity as lender or provider of Indebtedness to
the Borrower, agrees to use its best endeavour to assist the Borrower in obtaining the undertaking contemplated in Clause 18.23 (Stay of Action by Other Lenders). 
  
 27.4    Waiver under EUR 1,250,000,000 Credit Agreement: Each Lender who is a lender under the EUR 1,250,000,000
Credit Agreement (such Lenders together constituting the majority lenders under the EUR 1,250,000,000 Credit Agreement) hereby waives: 
  

	(a)	 	the requirement for the Borrower to give 10 days’ notice of prepayment thereunder, provided that this waiver shall only apply with respect to a notice of prepayment to be given
by the Borrower to such lenders (or their agent) in connection with a prepayment out of the proceeds of the first Advance under Tranche A; and 

  

	(b)	 	the requirement for the Borrower not to prepay and cancel the facility made available thereunder until after the Extended Facilities Discharge Date (as such term is defined in the
EUR 1,250,000,000 Credit Agreement), and accordingly authorises the Borrower to prepay and cancel such facility prior to the Extended Facilities Discharge Date. 

  
 28.    COMMUNICATIONS 
  
 28.1    Addresses: Each communication under this Agreement shall be made by fax, telex or otherwise in writing.
Each communication or document to be delivered to any party under this Agreement shall be sent to it at the fax number or address, and marked for the attention, if any, from time to time designated by it to the Agent (or, in the case of the Agent,
by it to each other party) for the purpose of this Agreement. The initial fax number, address and marking (if any) so designated by the Borrower, the Arrangers and the Agent are set out under its name at the end of this Agreement. Any communication
or document from or to the Borrower shall be sent to, by or through the Agent. 
  
 28.2    Deemed Delivery: Any communication from the Borrower shall be irrevocable, and shall not be effective until received by the Agent. Any other communication to any Person shall be conclusively deemed to be
received by that Person: 
  

 Page 70 

	(a)	 	if sent by fax (and received in legible form) between 9:00 a.m. and 5:00 p.m. (local time in the place to which it is sent) on a working day in that place, when sent or, if sent by
fax (and received in legible form) at any other time, at 9:00 a.m. (local time in the place to which it is sent) on the next working day in that place, provided that, in the case of a communication by fax, the Person sending the fax shall have
received a transmission receipt; or 

  

	(b)	 	in any other case, when left at the address required by Clause 28.1 (Addresses) or within 5 such working days after being put in the post (by airmail if to another country)
postage prepaid and addressed to it at that address. 

  
 For this
purpose, working days are days other than Saturdays, Sundays and bank holidays. 
  
 28.3    Electronic Communication: 
  

	(a)	 	Any communication to be made between the Agent and a Lender under or in connection with the Agreement may be made by electronic mail or other electronic means, if the Agent and the
relevant Lender: 

  

	 	(i)	 	agree that, unless and until notified to the contrary, this is to be an accepted form of communication; 

  

	 	(ii)	 	notify each other in writing of their electronic mail address and/or any other information required to enable the sending and receipt of information by that means; and

  

	 	(iii)	 	notify each other of any change to their address or any other such information supplied by them. 

  

	(b)	 	Any electronic communication made between the Agent and a Lender will be effective only when actually received in readable form and in the case of any electronic communication made
by a Lender to the Agent only if it is addressed in such a manner as the Agent shall specify for this purpose. 

  
 28.4    Language: All communications and documents shall either be in English or French or accompanied by a certified translation into English
or French by a translator acceptable to the Agent. If there is a conflict between the certified translation of a communication or document and its original language version, the English or French translation shall prevail over the original language
version. 
  
 28.5    Use of Website: 
  

	(a)	 	Any information provided at any time by the Borrower to the Agent pursuant to Clause 17 (Information) may be copied and placed onto a secure website to which access will be
given by the Agent to each Lender. The Borrower may satisfy its obligation under this Agreement to deliver any information in relation to those Lenders (the Website Lenders) who accept this method of communication by posting this
information onto an electronic web site designated by the Borrower and the Agent (the Designated Website) if: 

  

 Page 71 

	 	(i)	 	the Agent expressly agrees (after consultation with each of the Lenders) that it will accept communication of the information by this method; 

  

	 	(ii)	 	both the Borrower and the Agent are aware of the address of and any relevant password specifications for the Designated Website; and 

  

	 	(iii)	 	the information is in a format previously agreed between the Borrower and the Agent. 

  
 If any Lender (a Paper Form Lender) does not agree to the delivery of information electronically then the Agent shall notify
the Borrower accordingly and the Borrower shall supply the information to the Agent (in sufficient copies for each Paper Form Lender) in paper form. In any event the Borrower shall supply the Agent with at least one copy in paper form of any
information required to be provided by it. 
  

	(b)	 	The Agent shall supply each Website Lender with the address of and any relevant password specifications for the Designated Website following designation of that website by the
Borrower and the Agent. 

  

	(c)	 	The Borrower shall promptly upon becoming aware of its occurrence notify the Agent if: 

  

	 	(i)	 	the Designated Website cannot be accessed due to technical failure; 

  

	 	(ii)	 	the password specifications for the Designated Website change; 

  

	 	(iii)	 	any new information which is required to be provided under this Agreement is posted onto the Designated Website; 

  

	 	(iv)	 	any existing information which has been provided under this Agreement and posted onto the Designated Website is amended; or 

  

	 	(v)	 	the Borrower becomes aware that the Designated Website or any information posted onto the Designated Website is or has been infected by any electronic virus or similar software.

  

	(d)	 	If the Borrower notifies the Agent under paragraph (c)(i) or paragraph (c)(v) above, all information to be provided by the Borrower under this Agreement after the date of that
notice shall be supplied in paper form unless and until the Agent and each Website Lender is satisfied that the circumstances giving rise to the notification are no longer continuing. 

  

	(e)	 	Any Website Lender may request, through the Agent, one paper copy of any information required to be provided under this Agreement which is posted onto the Designated Website. The
Borrower shall comply with any such request within 10 Business Days. 

  

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 29.    PARTIAL INVALIDITY 
  
 The illegality, invalidity or unenforceability of any provision of this Agreement under the
law of any jurisdiction shall not affect its legality, validity or enforceability under the law of any other jurisdiction nor the legality, validity or enforceability of any other provision. 
  
 30.    NATURE OF RIGHTS
AND OBLIGATIONS 
  
 30.1    Obligations Several: The obligations of the Lenders are several. No party to this Agreement shall be responsible for the obligations of any other party. The failure of a Lender to perform its obligations
shall not release any other party from its obligations. 
  
 30.2    Rights Several: The rights of the Lenders are several and, for the avoidance of doubt, each Lender may separately enforce its rights under this Agreement except as otherwise provided herein. The amount at
any time owing by the Borrower to any party under this Agreement shall be a separate and independent debt from the amount owing to any other party. 
  
 30.3    Continuation of Certain Obligations: The obligations of any party under or in respect of Clauses 10 (Taxes), 12 (Increased
Costs), 20 (Default Interest), 21 (Indemnities), 22.8 (Indemnity to Arrangers and Agent), 23 (Set-off/Pro Rata Sharing) and 24 (Expenses and Stamp Duty) shall continue even after all the Commitments have
terminated and all the Advances have been repaid or prepaid. 
  
 31.    CONFIDENTIALITY UNDERTAKING 
  
 31.1    Each of the Lenders undertakes to keep the Confidential Information confidential and not to disclose it to anyone except as provided for by Clause 31.2 (Permitted Disclosure), to
ensure that the Confidential Information is protected with security measures and a degree of care that would apply to its own confidential information, and to use the Confidential Information solely for the purposes of this Agreement. 
  
 31.2    Permitted Disclosure: The Borrower acknowledges and agrees
that the Lenders (or any of them) may disclose Confidential Information: 
  

	(a)	 	to their Affiliates and their officers, directors, employees and professional advisers to the extent strictly necessary for the purposes of this Agreement and to any auditors of any
such Affiliate; 

  

	(b)	 	where requested or required by any court or competent jurisdiction, any arbitration or other legal proceedings or any competent judicial, governmental, supervisory or regulatory,
(ii) where required by the rules of any stock exchange on which its or the shares or other securities of any Affiliate are listed or (iii) where required by the laws or regulations of any country with jurisdiction over its or the affairs of any
Affiliate; 

  

 Page 73 

	(c)	 	in connection with any action or proceeding brought by the Agent, any of the Arrangers or any Lender to enforce its rights under or in connection with this Agreement;

  

	(d)	 	to any prospective assignee which acknowledges and accepts to be bound by the provision of this Clause 31 and which undertakes to use the Confidential Information only for the
Permitted Purpose; or 

  

	(e)	 	with the prior written consent of the Borrower. 

  
 31.3    Notification of Required Disclosure: Each of the Lenders agrees (to the extent permitted by law other than disclosed to any regulatory
body made in the normal course of such regulatory body’s supervisory function) to inform the Borrower as soon as possible of any disclosure under Clause 31.2(b) (Permitted Disclosure). 
  
 31.4    Insider Dealing: Each of the Lenders acknowledges that
some or all the Confidential Information is or may be price-sensitive information and that the use of such information may be regulated or prohibited by applicable legislation relating to insider dealing and undertakes not to use any Confidential
Information for any unlawful purpose. 
  
 31.5    Duration: the confidentiality undertaking of the Lenders hereunder shall expire in respect of each Confidential Information 3 years after it is first delivered to the Lenders hereunder. 
  
 For the purposes of the foregoing: 
  
 Confidential Information means any information to be delivered by the Borrower
pursuant to Clause 17.5 (Monthly and Quarterly Information) and pursuant to Clause 17.10 (Other Information) relating to the implementation of the Protocol and which is or has been so provided to each of the Lenders (or
the Agent on the Lenders behalf) by the Borrower, but excludes information that (a) is or becomes public knowledge other than as a direct or indirect result of any breach by any Lender of this Agreement or (b) is known by the Lenders (or any of
them) before the date the information is disclosed to such Lender(s) by the Borrower or is lawfully obtained by any Lender after that date, other than from a source which is connected with the Borrower and which, in either case, as far as the
relevant Lender is aware, has not been obtained in violation of, and is not otherwise subject to, any obligation of confidentiality. 
  
 Permitted Purpose means considering and evaluating whether to enter into the Facility; 
  
 32.    GOVERNING LAW AND JURISDICTION 
  
 32.1    Governing Law: This Agreement shall be governed by and
construed in accordance with the laws of France. 
  
 32.2    Competent Courts: The competent courts within the jurisdiction of the Cour d’Appel of Paris shall have exclusive jurisdiction to settle any disputes which may arise out of or in connection with
this Agreement and, accordingly, any legal action or 
  

 Page 74 

 proceedings arising out of or in connection with this Agreement (Proceedings) may be brought in that court
and the Borrower irrevocably submits to the jurisdiction of such court. 
  
 32.3    Other Competent Jurisdiction: Clause 32.2 is for the benefit of the Agent, the Arrangers and the Lenders. Accordingly, nothing in this Clause 32 shall limit the right of the Agent, any Arranger and/or any
Lender to take Proceedings against the Borrower in any other court of competent jurisdiction nor shall the taking of Proceedings in one or more jurisdictions preclude the Agent, any Arranger and/or any Lender from taking Proceedings in any other
jurisdiction, whether concurrently or not. 
  
 32.4    Venue: The Borrower irrevocably waives any objection which it may at any time have to the laying of the venue of any Proceedings in any court referred to in this Clause 32 and any claim that any such
Proceedings have been brought in an inconvenient forum. 
  
 32.5    Immunity: To the fullest extent permitted by law, the Borrower irrevocably: 
  

	(a)	 	consents generally to relief being given against it in any jurisdiction by way of injunction or order for specific performance or for the recovery of any property whatsoever or
other provisional or protective measures and to its property being subject to any process for the enforcement of a judgment or any process effected in the course or as a result of any action in rem; 

  

	(b)	 	waives and agrees not to claim any immunity from suits and proceedings (immunité de juridiction) (including actions in rem) in any jurisdiction and from all
forms of execution, enforcement or attachment (immunité d’exécution) to which it or its property is now or may hereafter become entitled under the laws of any jurisdiction and declares that such waiver shall be effective to
the fullest extent permitted by such laws. 

  
 33.    ENGLISH AND FRENCH LANGUAGE VERSIONS 
  
 This Agreement will be executed in both the English and the French language, which shall have equal force. 
  
 34.    FRENCH LANGUAGE VERSIONS 
  
 34.1    Execution of French Language Version: Subject to Clause
34.2 below, the parties agree to enter into a French language version of this Agreement on or before 10 October 2003. Such French language version shall be prepared by a sworn translator (expert-traducteur près la Cour d’appel de
Paris). It shall not include a translation of this Clause 34. The parties shall have a reasonable opportunity to review and comment on a draft of the French language version before signing the same. 
  
 34.2    Obligations of Parties Other than CFDI Conditional: The
obligations of the Borrower and the Lenders other than CFDI under this Agreement (save for their obligations under Clause 34.1) shall be conditional upon CFDI signing a French language version of this Agreement in accordance with Clause 34.1.

  

 Page 75 

 34.3    Obligations of CFDI Conditional: The obligations of CFDI under this Agreement (save
for its obligations under Clause 34.1) shall be conditional upon the other Lenders and the Borrower signing a French language version of this Agreement in accordance with Clause 34.1. 
  

 Page 76 

 SCHEDULE 1 
  

CONDITIONS PRECEDENT TO SIGNING 
  
 The following documents shall be or have been delivered to the Agent or, in the case of 1.2 below, to the relevant addressees, in form and substance reasonably
satisfactory to the Agent or, in the case of 1.3, 1.4, 1.5 and 1.9 below, the Lenders, and the following actions shall have been performed, in each case on or before the date of this Agreement: 
  
 1.1    A certified copy of each of the documents comprised in the
Information Package including, without limitation, the September Liquidity Plan, which shall be consistent in all material respects with the latest liquidity plan provided to the Lenders on 26 September 2003. 
  
 1.2    A certificate in respect of the Borrower, ALSTOM Holdings and each
Material Subsidiary, each dated on or about the date of this Agreement, substantially in the form set out in Schedule 2 (provided that such certificate given by ALSTOM Holdings or on behalf of the Material Subsidiaries shall be limited to the
relevant solvency certificate portion thereof) duly executed by, in the case of the certificate in respect of the Borrower and each Material Subsidiary, the Président Directeur Général of the Borrower and, in the case of
the certificate of ALSTOM Holdings, the Président Directeur Général of ALSTOM Holdings, together with the documents stated by the relevant certificate as being delivered therewith. 
  
 1.3    The T&D Letter; 
  
 1.4    Legal opinions, dated the date of this Agreement, from:

  

	(a)	 	Lovells, French legal advisers to the Borrower; 

  

	(b)	 	Freshfields Bruckhaus Deringer, French legal advisers to the Arrangers (other than CFDI); and 

  

	(c)	 	Clifford Chance, French legal advisers to the French State. 

  
 1.5    A note from De Pardieu Brocas Maffei & Leygonie regarding insolvency matters. 
  
 1.6    A letter from the French State to the Agent confirming that (i) CFDI is the entity which has been designated by
the French State in accordance with article 2.2 of the Protocol to fulfil the French State’s obligations set out in that article 2.2, and (ii) that the obligations of CFDI are guaranteed by the French State. 
  
 The following additional conditions shall be or have been satisfied on or before the date of
this Agreement: 
  

 Page 77 

 1.7    Any fees and duly documented costs and expenses due and payable by the Borrower on the date of
this Agreement in connection with this Agreement have been paid. 
  
 1.8    No Event of Default or Potential Event of Default (other than Excluded Defaults) or Early Repayment Event has occurred and remains outstanding. 
  
 1.9    Commitment letters to enter into Underwriting Agreements in respect of the ORA, and any documents necessary in
connection with the subscription of the Billets de Trésorerie contemplated by article 2.5 of the Protocol have been duly executed. 
  

 Page 78 

 SCHEDULE 2 
  

COMPANY CERTIFICATE 
  
 [on letterhead of ALSTOM or ALSTOM Holdings] 
  
 COMPANY CERTIFICATE 
  
 To:    The Agent under the Agreement (as defined below) 
  
 ALSTOM—EUR 1,563,399,105 SUBORDINATED DEBT FACILITY AGREEMENT

  
 This certificate is delivered pursuant to and in accordance with the EUR
1,563,399,105 Subordinated Debt Facility Agreement to be entered into on or around 30 September 2003 by (i) ALSTOM, (ii) the Agent, (iii) the Arrangers, and (iv) the Lenders, each as named therein (the Agreement). 
  
 Capitalised terms in this certificate shall, save as otherwise defined in this certificate,
have the meaning given to them in the Agreement. 
  
 I, the undersigned, acting as
Président-Directeur Général of [ALSTOM/ALSTOM Holdings] (the Company), hereby certify and make the following confirmations. 
  
 1.     CONSTITUTIONAL AND OTHER DOCUMENTS 
  
 Please find attached hereto: 
  

	(a)	 	a copy of the constitutive documents (statuts) of the Company; 

  

	(b)	 	an extract of the K-bis of the Register of Commerce and Companies for the Company dated no more than one month prior to the date of the Agreement; 

 

	(c)	 	a copy of a resolution of the board of directors of the Company passed at the August and September meetings referred to in paragraph (v) below approving the transactions
contemplated by the Agreement and any related documents to which it is a party; 

  

	(d)	 	a copy of a delegation of authority granted by Patrick Kron to Philippe Jaffré, Olivier Klaric and Pierre-Jean Bosio, with the power to sub-delegate, authorising the
execution of the Agreement and any other agreements, letters, documents and notices in relation thereto which they or their delegates deem necessary or desirable and generally to do the necessary to be done in respect therewith on behalf of the
Company; 

  

 Page 79 

	(e)	 	a copy of the latest publicly available annual consolidated accounts and statutory (unconsolidated) accounts of the Company; 

  

	(f)	 	a copy of the temporary waiver received from Royal Bank of Scotland (Industrial Leasing) Limited and AssetFinance March (A) Limited dated 11 April 2003 relating to the breach of
financial covenants occurring under the project known as the “Northern Line”; and 

  

	(g)	 	a copy of the procès verbal de réunion regarding the convocation of the shareholders meeting held on or about 18 November 2003 for the purpose of approving,
inter alia, the increase in the share capital of the Company in the amount of EUR 300,000,000, the ORA, the TSDD, the TSDDRA, 

  
 the documents mentioned in paragraph (a) to (g) above being hereafter referred to as the Transmitted Documents. 
  
 I hereby certify that, as at the date of this certificate: 
  

	(i)	 	each of the Transmitted Documents relating to the Company is in full force and effect; 

  

	(ii)	 	none of the Transmitted Documents relating to the Company (including the resolutions of the Conseil d’Administration of the Company and the delegation of authority
mentioned above) has been amended or revoked; 

  

	(iii)	 	all copies, facsimile copies or specimen Transmitted Documents conform to the originals thereof and all Transmitted Documents are correct and complete; 

  

	(iv)	 	the information contained in the Transmitted Documents relating to the Company was accurate on, and has not been altered since, the date as of which the relevant Transmitted
Document was drawn up or issued; 

  

	(v)	 	the meetings of the Conseil d’Administration of the Company dated 5 August 2003 and 22 September 2003 respectively were duly convened and held, and attended by the
required quorum of persons entitled to be present and vote; 

  

	(vi)	 	as at the date hereof the Company is carrying on business in accordance with its statuts. 

  
 2.    SPECIMEN SIGNATURES 
  
 I hereby certify that the following signatures are the specimen signatures of the persons duly authorised to execute, issue and/or deliver
(a) the Agreement and (b) all other separate agreements, letters, documents and notices required in connection with the Agreement and the performance of the Company’s obligations thereunder: 
  

 Page 80 

	NAME	 	POSITION	 	SIGNATURE
	

	 Patrick Kron
	 	 Président-Directeur
 Général
	 	 
			
	 Philippe Jaffré
	 	Chief Financial Officer	 	 
			
	 Olivier Klaric
	 	Corporate Treasurer	 	 
			
	 Pierre-Jean Bosio
	 	Vice-President	 	 

  
 and that the Agreement has been
unconditionally signed and delivered by the Company. 
  
 3.    REPRESENTATIONS AND WARRANTIES 
  
 I
hereby certify that, as at the date of this certificate: 
  

	(a)	 	no event which would constitute an Event of Default or Potential Event of Default (other than Excluded Defaults) or Early Repayment Event under the Agreement had it been executed
has occurred and remains outstanding; 

  

	(b)	 	no litigation, arbitration or administrative proceeding is current, pending or threatened (other than any such proceeding in connection with Clauses 19.2(b) (Implementation of
the Protocol) and 19.2(c) (Failure to Implement the Protocol) of the Agreement): 

  

	 	(i)	 	to restrain the entry into, exercise of any of its rights under and/or performance or enforcement of or compliance with any of obligations under the Agreement; or

  

	 	(ii)	 	which has or may have a Material Adverse Effect (save as disclosed to the Lenders by the Borrower in the Information Package or otherwise in writing prior to the date of the
Agreement); 

  

	(c)	 	the Transmitted Documents comprise all corporate authorities necessary on the part of the Company to approve the Agreement, to authorise the signing of the Agreement and to give any
communications and/or take any other action required under or in connection with the Agreement on behalf of the Company; 

  

 Page 81 

	(d)	 	the representations made and warranties which would be given by the Company pursuant to the Agreement had it been executed are true, correct and complete; 

 

	(e)	 	the execution of the Agreement and the performance of its obligations thereunder does not and will not cause to be exceeded any limit or restriction binding on the Company in
respect of (i) the borrowing limit of the Company, (ii) the corporate purpose of the Company, (iii) the powers of the Company or (iv) the rights or ability of the representatives of the Company identified in paragraph 2 above;

  

	(f)	 	the Agreement has been entered into on arm’s length terms for bona fide commercial reasons; 

  
 4.    SOLVENCY CERTIFICATE 
  
 4.1    I hereby certify that, as at the date of this certificate, in respect of the Company: 
  

	(a)	 	the Company is solvent and is able to meet its scheduled payment obligations as they fall due, is not in a state of cessation of payments, declared or not declared (cessation des
paiements, déclarée ou non) and will not become so as a consequence of its entering into the Agreement or the performance of its obligations thereunder; 

  

	(b)	 	the Company is not the subject of (i) any arrangement with its creditors or amicable settlement as regulated by Title I of Book VI of the Code de Commerce (formerly law no.
84-148 of 1st March 1984, as amended), (ii) insolvency proceedings as regulated by Title II of Book VI of the
Code de Commerce (formerly law no. 85-98 of 25 January 1985, as amended) nor (iii) analogous proceedings under French law or under the laws of any relevant jurisdiction; 

  

	(c)	 	no receiver, administrative receiver, mandataire ad hoc or similar officer has been appointed to manage all or part of the Company’s assets; 

  

	(d)	 	no step or decision has been taken for the partial or total winding-up of the Company, its dissolution or liquidation or for the partial or total sale of its business;

  

	(e)	 	having made all appropriate investigations, no event exists that would lead the Company to be in a state of cessation des paiements or otherwise in any of the positions
described in (b) to (d) above; and 

  

	(f)	 	the Agreement is not or will not be an “unusual transaction” at an undervalue within the meaning of article L.621-107 2° of the Code de Commerce (contrat
commutatif déséquilibré) since the value of the consideration to be received by the Company will not be significantly less than the value of the consideration provided by the Company under such document.

  

 Page 82 

 4.2    I further certify that, as at the date of this certificate, in respect of each Material
Subsidiary: 
  

	(a)	 	each Material Subsidiary is solvent and is able to meet its scheduled payment obligations as they fall due, is not in a state of cessation of payments, declared or not declared
(cessation des payments, déclarée ou non); 

  

	(b)	 	no Material Subsidiary is the subject of (i) any arrangement with its creditors or amicable settlement as regulated by Title I of Book VI of the Code de Commerce (formerly
law no. 84-148 of 1st March 1984, as amended), (ii) insolvency proceedings as regulated by Title II of Book VI of
the Code de Commerce (formerly law no. 85-98 of 25 January 1985, as amended) nor (iii) analogous proceedings under French law or under the laws of any relevant jurisdiction; 

  

	(c)	 	no receiver, administrative receiver, mandataire ad hoc or similar officer has been appointed to manage all or part of any Material Subsidiary’s assets;

  

	(d)	 	no step or decision has been taken for the partial or total winding-up of any Material Subsidiary, its dissolution or liquidation or for the partial or total sale of its business;
and 

  

	(e)	 	having made all appropriate investigations, no event exists that would lead any Material Subsidiary to be in a state of cessation des paiements or otherwise in any of the
positions described in (b) to (d) above. 

  
 Made in Paris, on
     September 2003 
 in 1 original copy. 
  

By 
  
 [ALSTOM/ALSTOM Holdings] 
  

	
	  
	

	 Name:         [Patrick Kron/ Nick
Salmon]
 Title:           Président-Directeur
Général

  

 Page 83 

 SCHEDULE 3 
  

CONDITIONS PRECEDENT TO ALL DRAWDOWNS 
  
 The following documents or confirmations shall have been delivered to the Agent in form and substance reasonably satisfactory to the Agent and the following actions shall
have been performed in each case before the making of each Advance: 
  
 1.    Representations etc. Correct: All representations and warranties in Clause 16 (Representations and Warranties) (except to any extent waived in accordance with Clause 27.2 (Amendments, Waivers and
Consents)) have been complied with and would be correct (in all material respects in the cases of Advances the sole purpose of which is to repay an existing Advance) if repeated on the proposed date of that Advance by reference to the
circumstances then existing. 
  
 2.    No
Event of Default etc.: No Event of Default or Potential Event of Default (other than an Excluded Default) or Early Repayment Event has occurred on or before the date of the Advance, or will occur as a result of making that Advance, other than
any waived in accordance with Clause27.2 (Amendments, Waivers and Consents). 
  
 4.    No Market Disruption: No event mentioned in Clause 13.1 (Triggering Events) has or will occur in relation to that Advance. 
  
 5.    Availability Period Not Expired: The
proposed date of the relevant Advance must be a Business Day during the Tranche A Availability Period or the Tranche B Availability Period, as applicable. 
  

 Page 84 

 SCHEDULE 4 
  

FORM OF TRANSFER AGREEMENT 
  
 This Transfer Agreement is made on [·] 
  
 BETWEEN: 
  
 (A)    [·] (the
Existing Lender) 
  
 AND: 
  
 (B) [·] (the New Lender) 
  
 WHEREAS:

  
 The Existing Lender has entered into a EUR 1,563,399,105 subordinated debt
facility agreement dated 30 September 2003 between, inter alios, ALSTOM, BNP Paribas, Crédit Agricole Indosuez, Crédit Lyonnais, Société Générale and Caisse Française de Développement
Industriel acting as Arrangers and BNP Paribas acting as Agent of the Lenders named therein (the Agreement). 
  
 The Existing Lender wishes to transfer and the New Lender wishes to acquire [all] [the part specified in Schedule 2 to this Transfer Agreement] of the Existing
Lender’s Commitment, rights and obligations referred to in Schedule 2 to this Transfer Agreement. 
  
 Terms defined in the Agreement have the same meaning when used in this Transfer Agreement. 
  
 IT IS AGREED AS FOLLOWS: 
  
 1.    The Existing Lender and the New Lender agree to the transfer (cession) of [all] [the part specified in Schedule 2 to this Transfer Agreement] of the Existing Lender’s Commitment,
rights and obligations referred to in Schedule 2 to this Transfer Agreement in accordance with Clause 26 of the Agreement.1 
  
 2.    The proposed Transfer Date is
[·]. 
  

  

	1	 	The New Lender may, in the case of a transfer of rights by the Existing Lender under this Transfer Agreement, if it considers it necessary to make the transfer effective against
third parties, arrange for it to be notified by way of signification to the Borrower in accordance with article 1690 of the French Civil Code. 

  

 Page 85 

 3.    The Facility Office and address, fax number and attention details for notices
of the New Lender for the purposes of Clause 28.1 (Addresses) are set out in Schedule 2 to this Transfer Agreement. 
  
 4.    The New Lender acknowledges the limitations on the Existing Lender’s liabilities set out in Clause 30.1 (Obligations
Several) of the Agreement. 
  
 5.    The New
Lender confirms to the other Lenders that it will assume the same obligations to those Lenders as it would have been under if it had been an original signatory to the Agreement. 
  
 6.    This Transfer Agreement is governed by French law. The competent courts within the jurisdiction of
the Cour d’Appel of Paris shall have jurisdiction in relation to any dispute concerning it. 
  
 Existing Lender 
  
 By: 
  
 Name: 
 Authorised Signatory 
  
 New Lender 
  
 By: 
  

Name: 
 Authorised Signatory 
  
 Facility Office 
  
 Address: 
  
 Fax No: 
  
 Attention: 
  
 Rights and/or Obligations to be transferred: 

 

	1.	 	Existing Lender’s Tranche A Commitment to be transferred: €[·]

  
 Existing Lender’s Tranche B Commitment to
be transferred: €[·] 
  

	2.	 	Existing Lender’s share(s) of Tranche A Advance(s) to be transferred: €[·] 

  
 Existing Lender’s share(s) of
Tranche B Advance(s) to be transferred: €[·] 
  

 Page 86 

 Agent 
  
 This Transfer Agreement is accepted by the Agent and the transfer date is confirmed as [·] 
  
 By: 
  
 Name: 
 Authorised Signatory 
  

 Page 87 

 SCHEDULE 5 
  

DRAWDOWN NOTICE 
  

	 To:
	  	BNP PARIBAS as Agent
		
	 	  	[Insert address of Agent]

  
 Attention: [Insert name of relevant
Department or title of relevant officer] 
  
 ALSTOM EUR 1,563,399,105
Subordinated Debt Facility Agreement dated 30 September 2003 
  
 We refer to
the above Agreement between ourselves, the Arrangers, the Lenders, and yourselves as Agent. Terms defined in that Agreement have the same meaning in this notice. 
  
 We give you notice that we wish an Advance to be made to us as follows: 
  

	 Tranche:
	  	 
		
	 Amount:
	  	 
		
	 Date:
	  	 [·] 200[·] (or, if that is not a Business day, the next Business Day)

		
	Interest Period:	  	 [·]
month(s)

  
 The proceeds of the Advance are to be
made available to us by credit to [our account/the account of · in favour of ourselves at ·, ·,] [and the account of the agent under the EUR 1,250,000,000 Credit Agreement
at ·, ·, in an amount of EUR
350,000,000.]1 
  
 No Event of Default, Potential Event of Default or Early Repayment Event has occurred, or will occur as a result of making this Advance [, other than any waived in
accordance with Clause 27.2 (Amendments, Waivers and Consents) of the Agreement] [other than, in each case, an Excluded Default]. All representations and warranties in Clause 16 (Representations and Warranties) of the Agreement (other
than Clause 16.1(1)(i), (ii) and (iii) (Information) have been complied with [in all material respects]2 and
would be correct if repeated today by reference to the circumstances now existing. 
  
 Dated [·] 200[·] 
  

  

	1	 	Include in respect of that portion of Tranche A which is destined to repay the EUR 1,250,000,000 Credit Agreement, which will be added to the other portion of Tranche A drawn on the
same date to repay part of the Billets de Trésorerie. 

  

	2	 	Include in respect of an Advance the sole purpose of which is to repay an existing Advance. 

  

 Page 88 

 ALSTOM 
  
 By: 
  
 Authorised signatory/ies 
  

 Page 89 

 SCHEDULE 6 
  

TIMETABLES 
  

	 Notes:
	  	“D”	  	=	  	Date on which the Advance is to be made.
				
	 	  	“B”	  	=	  	Borrower
				
	 	  	“A”	  	=	  	Agent
				
	 	  	“Ldrs”	  	=	  	Lenders

  
 Under “Specified Time”,
numbers indicate numbers of Business Days save for “Interest Rate set” under the column “Action” below, where numbers indicate TARGET Days. See Clause 1 for meaning. 
  
 Drawdown in euro 
  
 References to time are to Paris time, except where otherwise indicated. 
  

	Specified time	  	Action	  	Clause References
			
	 D-3
 10:00 a.m.
	  	Drawdown request to A under Tranche A or Tranche B	  	4.2
			
	 D-3
 5:00 p.m.
	  	A notifies Ldrs of request	  	4.8
			
	 D-2
 11:00 a.m.
	  	Interest Rate set	  	8.3 and 1.1 (definition of “Rate Fixing Day”)
			
	 D
 11:00 a.m.
	  	Ldrs put A in funds	  	15.1
			
	 D
 Close of business
	  	A pays funds to B	  	15.2

  

 Page 90 

 SCHEDULE 7 
  

MANDATORY COSTS 
  
 1.1    The Mandatory Cost is an addition to the interest rate to compensate Lenders for the cost of compliance with (a) the requirements of the Bank
of England and/or the Financial Services Authority (or, in either case, any other authority which replaces all or any of its functions) or (b) the requirements of the European Central Bank. 
  
 1.2    On the first day of each Interest Period (or as soon as possible
thereafter) the Agent shall calculate, as a percentage rate, a rate (the Additional Cost Rate) for each Lender, in accordance with the paragraphs set out below. The Mandatory Cost will be calculated by the Agent as a weighted average
of the Lenders’ Additional Cost Rates (weighted in proportion to the percentage participation of each Lender in the relevant Advance) and will be expressed as a percentage rate per annum. 
  
 1.3    The Additional Cost Rate for any Lender lending from a Facility
Office in a Participating Member State will be the percentage notified by that Lender to the Agent as the cost of complying with the minimum reserve requirements of the European Central Bank. 
  
 1.4    The Additional Cost Rate for any Lender lending from a Facility
Office in the United Kingdom will be calculated by the Agent as follows: 
  

	 E x 0.01
 300
	 	per cent per annum.

  
 Where: 
  

	(A)	 	is the percentage of Eligible Liabilities (assuming these to be in excess of any stated minimum) which that Lender is from time to time required to maintain as an interest free cash
ratio deposit with the Bank of England to comply with cash ratio requirements. 

  

	(B)	 	is the percentage rate of interest (excluding the Margin and the Mandatory Cost and, if the Advance is an overdue sum, the additional rate of interest specified in Clause 20
(Default interest)) payable for the relevant Interest Period on the Advance. 

  

	(C)	 	is the percentage (if any) of Eligible Liabilities which that Lender is required from time to time to maintain as interest bearing Special Deposits with the Bank of England.

  

	(D)	 	is the percentage rate per annum payable by the Bank of England to the Agent on interest bearing Special Deposits. 

  

	(E)	 	is the rate of charge payable by that Lender to the Financial Services Authority pursuant to the Fees Regulations (but, for this purpose, ignoring any minimum

  

 Page 91 

	 	 
fee required pursuant to the Fees Regulations) and expressed in pounds per £1,000,000 of the Fee Base of that Lender. 

  
 1.5    For the purposes of this Schedule: 
  

	(a)	 	Eligible Liabilities and Special Deposits have the meanings given to them from time to time under or pursuant to the Bank of England Act 1998 or (as may
be appropriate) by the Bank of England; 

  

	(b)	 	Fees Regulations means the Banking Supervision (Fees) Regulations 2001 or such other law or regulation as may be in force from time to time in respect of the payment
of fees for banking supervision; and 

  

	(c)	 	Fee Base has the meaning given to it in, and will be calculated in accordance with, the Fees Regulations. 

  
 1.6    In application of the above formulae, A, B, C and D will be
included in the formulae as percentages (i.e. 5 per cent will be included in the formula as 5 and not as 0.05). A negative result obtained by subtracting D from B shall be taken as zero. The resulting figures shall be rounded to four decimal places.

  
 1.7    Each Lender shall supply any information required
by the Agent for the purpose of calculating its Additional Cost Rate. In particular, but without limitation, each Lender shall supply the following information in writing on or prior to the date on which it becomes a Lender: 
  

	(a)	 	its jurisdiction of incorporation and the jurisdiction of its Facility Office; and 

  

	(b)	 	any other information that the Agent may reasonably require for such purpose. 

  

Each Lender shall promptly notify the Agent in writing of any change to the information provided by it pursuant to this paragraph. 
  
 1.8    The percentages or rates of charge of each Lender for the purpose
of A, C and E above shall be determined by the Agent based upon the information supplied to it pursuant to paragraph 1.7 above and on the assumption that, unless a Lender notifies the Agent to the contrary, each Lender’s obligations in relation
to cash ratio deposits, Special Deposits and the Fees Regulations are the same as those of a typical bank from its jurisdiction of incorporation with a Facility Office in the same jurisdiction as its Facility Office. 
  
 1.9    The Agent shall have no liability to any person if such
determination results in an Additional Cost Rate which over or under compensates any Lender and shall be entitled to assume that the information provided by any Lender pursuant to paragraphs 1.3 and 1.7 above is true and correct in all respects.

  
 1.10    The Agent shall distribute the additional amounts
received as a result of the Mandatory Cost to the Lenders on the basis of the Additional Cost Rate for each Lender based on the information provided by each Lender pursuant to paragraphs 1.3 and 1.7 above. 
  

 Page 92 

 1.11    Any determination by the Agent pursuant to this Schedule in relation to a formula, the
Mandatory Cost, an Additional Cost Rate or any amount payable to a Lender shall, in the absence of manifest error, be conclusive and binding on all Parties. 
  
 1.12    The Agent may from time to time, after consultation with the Borrower and the Lenders, determine and notify to all parties to this Agreement
any amendments which are required to be made to this Schedule in order to comply with any change in law, regulation or any requirements from time to time imposed by the Bank of England, the Financial Services Authority or the European Central Bank
(or, in any case, any other authority which replaces all or any of its functions) and any such determination shall, in the absence of manifest error, be conclusive and binding on all parties to this Agreement. 
  

 Page 93 

 SCHEDULE 8 
  

LIST OF MATERIAL SUBSIDIARIES 
  
 ALSTOM Australia Ltd 
 ALSTOM Power Holdings Ltd 
 ALSTOM Brasil Ltda 
 ALSTOM Canada Inc 
 ALSTOM Power Centrales 
 ALSTOM Power Turbomachines 
 ALSTOM Power SA 
 ALSTOM T&D SA 
 ALSTOM Transport SA 
 Chantiers de l’Atlantique 
 ALSTOM DDF SA 
 ALSTOM GmbH 
 ALSTOM Power Conversion GmbH 
 ALSTOM LHB GmbH 
 ALSTOM Energietechnik GmbH 
 ALSTOM Power AG 
 ALSTOM Power Generation AG 
 ALSTOM Power Boiler GmbH 
 ALSTOM Ferroviaria Spa 
 ALSTOM Power Italia Spa 
 ALSTOM KK 
 ALSTOM Power Asia Pacific Sdn Bdh 
 ALSTOM Power Mexico SA de CV 
 ALSTOM Power Monterrey III SA 
 ALSTOM NV 
 ALSTOM Transporte, SA 
 ALSTOM Power Sweden AB 
 ALSTOM Schweiz AG 
 ALSTOM Contracting Ltd 
 ALSTOM Ltd 
 ALSTOM Power Ltd 
 ALSTOM Power UK Ltd 
 ALSTOM UK 
 ALSTOM UK Holdings Ltd 
 ALSTOM Power Inc 
 ALSTOM T&D Inc 
 (formerly ALSTOM USA Inc) 
 ALSTOM Transportation Inc 
  

 Page 94 

 SCHEDULE 9 
  

TAUX EFFECTIF GLOBAL LETTER 
  
 ALSTOM 
 25, Avenue Kléber 
 75795 Paris Cedex 16 
  
 Attention : Mr Marc Haestier 
  
 Dear Sirs

  
 ALSTOM EUR 1,563,399,105 Subordinated Debt Facility Agreement dated 30
September 2003 
  
 We refer to the EUR 1,563,399,105 Subordinated Debt
Facility Agreement dated 30 September 2003 between you as Borrower and, among others, ourselves as Agent (the Agreement). Terms defined in the Agreement have the same meaning when used in this letter. This letter is the Taux
Effectif Global letter referred to in Clause 8.6 (Taux Effectif Global) of the Agreement and forms part of the Agreement. 
  
 Article L.313-4 and L.313-5 of the Code monétaire et financier (formally article L. 313-1 and seq., to R.313-1 and R.313-2 of the Code de la
Consommation) (the Code) specifies that the taux effectif global (all-in percentage rate) applicable to a loan be calculated by reference not only to interest (calculated in accordance with the relevant agreement), but by
reference also to all costs, expenses, fees and other remuneration of whatever nature. 
  
 However, the floating nature of the rate of interest applicable to Advances and the possibility for the Borrower to borrow all or part of the Facility, amongst other things, make it impossible to specify a taux effectif global which
will apply from the date of entry into effect of the Agreement until the Final Maturity Date. 
  
 As an indication only, we set out below examples of the applicable effective global rate (Taux Effectif Global) referred to in Clause 8.6 of the Agreement (Taux Effectif Global), for the purposes of
Article L.313-4 of the Code. 
  
 We hereby notify you that: 
  
 In respect of Tranche A: 
  
 On the basis of the three-month EURIBOR calculated on the basis of a 360 day year, for an Advance denominated in EUR, of [·]% on [·] 2003 and on the assumption that the total
Tranche A Available Commitments of EUR 1,200,000,000 remain drawn down in one Advance on the date of [·] 2003 until its full reimbursement on the
Tranche A Final Maturity Date, the taux effectif global for Advances under Tranche A under the Agreement (as amended) is [·]%. 

 

 Page 95 

 In respect of Tranche B: 
  
 On the basis of the three-month EURIBOR calculated on the basis of a 360 day year, for an Advance denominated in EUR, of [·]% on [·] 2004 and on the assumption that the total Tranche B Available
Commitments of EUR 263,399,105 at the date of the Agreement remain drawn down in one Advance on the date of [·] 2004 and that such Advance is
renewed at the end of each Interest Period at the same interest rate until its final reimbursement on the Tranche B Final Maturity Date, the taux effectif global for Advances under Tranche B under the Agreement (as amended) is [·]%. 
  
 The above rates are given on an indicative basis and for information only, in order to comply, insofar as possible, with the provisions of article L.313-4 and L.313-5 of the Code and are calculated, inter alia,
on the basis (i) that the EURIBOR, expressed as an annual rate, does not vary and remains equal to the rate fixed on dates stated above and (ii) of the commissions and various fees (including legal costs) known as of today’s date payable by you
on the terms of the Agreement (as amended). 
  
 We should be grateful if you would
confirm your understanding of the terms of this letter by signing and returning to us the enclosed copy. 
  
 Yours faithfully, 
  
 BNP PARIBAS 
 as Agent 
  
 By: 
  
 We acknowledge the terms of this letter 
  
 ALSTOM 
  
 By: 
  

 Page 96 

 SCHEDULE 10 
  
 EXISTING SECURITY 
  
 Security interests existing as of 30 September 2003 
  
 ALSTOM: nil 
  
 ALSTOM Holdings: 
  

	 	-	 	USD 84,150,000 pledged deposit (“dépôt gage-espèces”) in favour of Crédit Agricole Indosuez, related to the ship known as R8 (ex
Renaissance). 

  

	 	-	 	EUR 78,558,120 on escrow account (“convention de dépôt sequestre”) at Société Générale, with EDF and ALSTOM Holdings as
counterparties. Related to the sale of ALSTOM’s share in FIGLEC to EDFI. 

  

	 	-	 	EUR 42,615,277 on pledged deposit (“dépôt de garantie”) in favour of Crédit Lyonnais, corresponding to the level of over-collateralisation
required as of 30 September 2003 for the T&D securitisation programme of existing receivables. 

  

 Page 97 

 SCHEDULE 11 
  
 FORM OF CONFIDENTIALITY UNDERTAKING 
  
 CONFIDENTIALITY LETTER (SELLER) 
  
 [Letterhead of Seller/Seller’s agent/broker] 
  
 To: 
  

	
	 	 
	 	  	 [insert name of Potential
 Purchaser/Purchaser’s agent/broker

	
	 	 

 Re:    The Agreement 
  
  

	
	 	 
	 Borrower:
  
 Date:
  
 Amount:
  
 Agent:
	 	 
	
	 	 

 Dear Sirs 
  
 We understand that you are considering [acquiring]3/[arranging the acquisition of]4 an interest in the Agreement (the Acquisition). In
consideration of us agreeing to make available to you certain information, by your signature of a copy of this letter you agree as follows: 
  
 1.    CONFIDENTIALITY UNDERTAKING 
  
 You undertake (a) to keep the Confidential Information confidential and not to disclose it to anyone except as provided for by paragraph 2
below and to ensure that the Confidential Information is protected with security measures and a degree of care that would apply to your own confidential information, (b) to use the Confidential Information only for the Permitted Purpose, (c) to use
all reasonable endeavours to ensure that any person to whom you pass any Confidential Information (unless 
  

  
 3    delete if addressee is acting as broker or agent. 
  
 4    delete if
addressee is acting as principal. 
  

 Page 98 

 disclosed under paragraph 2[(c)/(d)]5 below) acknowledges and complies with the provisions of this letter as if that person were also a party to it, and (d) not to make
enquiries of any member of the Group or any of their officers, directors, employees or professional advisers relating directly or indirectly to the Acquisition. 
  

	2.	 	PERMITTED DISCLOSURE 

  
 We agree that you may disclose Confidential Information: 
  

	(a)	 	to members of the Purchaser Group and their officers, directors, employees and professional advisers to the extent necessary for the Permitted Purpose and to any auditors of members
of the Purchaser Group; 

  

	(b)	 	[subject to the requirements of the Agreement, in accordance with the Permitted Purpose so long as any prospective purchaser has delivered a letter to you in equivalent form to this
letter;] 

  

	[(b/c)]3	 	subject to the requirements of the Agreement, to any person to (or through) whom you assign or transfer (or may potentially assign or transfer) all or any of the
rights, benefits and obligations which you may acquire under the Agreement or with (or through) whom you enter into (or may potentially enter into) any sub-participation in relation to, or any other transaction under which payments are to be made by
reference to, the Agreement or the Borrower or any member of the Group so long as that person has delivered a letter to you in equivalent form to this letter; and 

  

	[(c/d)]3	 	(i) where requested or required by any court of competent jurisdiction or any competent judicial, governmental, supervisory or regulatory body, (ii) where required
by the rules of any stock exchange on which the shares or other securities of any member of the Purchaser Group are listed or (iii) where required by the laws or regulations of any country with jurisdiction over the affairs of any member of the
Purchaser Group. 

  

	3.	 	NOTIFICATION OF REQUIRED OR UNAUTHORISED DISCLOSURE 

  
 You agree (to the extent permitted by law) to inform us of the full circumstances of any
disclosure under paragraph 2[(c)/(d)]3 or upon becoming aware that Confidential Information has been disclosed in
breach of this letter. 
  

	4.	 	RETURN OF COPIES 

  
 If we so request in writing, you shall return all Confidential Information supplied to you by us and destroy or permanently erase all copies of Confidential Information
made by you and use all reasonable endeavours to ensure that anyone to whom you have supplied any Confidential Information destroys or permanently erases such Confidential Information and any copies made by them, in each case save to the extent that
you or the recipients are required to retain any such Confidential 
  

 5    delete as applicable. 
  

 Page 99 

 Information by any applicable law, rule or regulation or by any competent judicial, governmental, supervisory or
regulatory body or in accordance with internal policy, or where the Confidential Information has been disclosed under paragraph 2[(c)/(d)]3 above. 
  
 5.    CONTINUING OBLIGATIONS 
  
 The obligations in this letter are continuing and, in particular, shall survive the termination of any discussions or negotiations between you and us. Notwithstanding the previous sentence, the obligations in this
letter shall cease (a) if you become a party to or otherwise acquire (by assignment or sub-participation) an interest, direct or indirect, in the Agreement or (b) 12 months after you have returned all Confidential Information supplied to you by us
and destroyed or permanently erased all copies of Confidential Information made by you (other than any such Confidential Information or copies which have been disclosed under paragraph 2 above (other than sub-paragraph 2(a)) or which, pursuant to
paragraph 4 above, are not required to be returned or destroyed). 
  
 6.    NO REPRESENTATION; CONSEQUENCES OF BREACH, ETC 
  
 You acknowledge and agree that: 
  

	(a)	 	neither we, [nor our principal] nor any member of the Group nor any of our or their respective officers, employees or advisers (each a Relevant Person) (i) make any
representation or warranty, express or implied, as to, or assume any responsibility for, the accuracy, reliability or completeness of any of the Confidential Information or any other information supplied by us or the assumptions on which it is based
or (ii) shall be under any obligation to update or correct any inaccuracy in the Confidential Information or any other information supplied by us or be otherwise liable to you or any other person in respect to the Confidential Information or any
such information; and 

  

	(b)	 	we [or our principal]6 or members of the Group
may be irreparably harmed by the breach of the terms hereof and damages may not be an adequate remedy; each Relevant Person may be granted an injunction or specific performance for any threatened or actual breach of the provisions of this letter by
you. 

  
 7.    NO
WAIVER; AMENDMENTS, ETC 
  
 This
letter sets out the full extent of your obligations of confidentiality owed to us in relation to the information the subject of this letter. No failure or delay in exercising any right, power or privilege hereunder will operate as a waiver thereof
nor will any single or partial exercise of any right, power or privilege preclude any further exercise thereof or the exercise of any other right, power or privileges hereunder. The terms of this letter and your obligations hereunder may only be
amended or modified by written agreement between us. 
  

  
 6    delete if letter is sent out by the Seller rather than the Seller’s broker or agent. 
  

 Page 100 

 8.    INSIDER INFORMATION 
  
 You acknowledge that some or all of the Confidential Information (including in particular the
information defined as “Confidential Information” under Clause 31 (Confidentiality Undertaking) of the Agreement) is or may be price-sensitive or insider information and that the use of such information may be regulated or
prohibited by applicable legislation relating to insider dealing and you undertake not to use any Confidential Information for any unlawful purpose. 
  
 9.    NATURE OF UNDERTAKINGS 
  
 The undertakings given by you under this letter are given to us and (without implying any fiduciary obligations on our part) are also given
for the benefit of [our principal,]4 the Borrower and each other member of the Group. 
  
 10.    GOVERNING LAW AND
JURISDICTION 
  
 This letter (including the agreement
constituted by your acknowledgement of its terms) shall be governed by and construed in accordance with the laws of France and the parties submit to the non-exclusive jurisdiction of the competent courts within the jurisdiction of the Cour
d’Appel of Paris. 
  
 11.    DEFINITIONS 
  
 In this
letter (including the acknowledgement set out below) terms defined in the Agreement shall, unless the context otherwise requires, have the same meaning and: 
  
 Confidential Information means any information relating to the Borrower, the Group, the Agreement and/or the Acquisition provided to you by
us or any of our affiliates or advisers, in whatever form, and includes information given orally and any document, electronic file or any other way of representing or recording information which contains or is derived or copied from such information
but excludes information that (a) is or becomes public knowledge other than as a direct or indirect result of any breach of this letter or (b) is known by you before the date the information is disclosed to you by us or any of our affiliates or
advisers or is lawfully obtained by you thereafter, other than from a source which is connected with the Group and which, in either case, as far as you are aware, has not been obtained in violation of, and is not otherwise subject to, any obligation
of confidentiality and includes in particular the information defined as “Confidential Information” under Clause 31 (Confidentiality Undertaking) of the Agreement; 
  
 Group means the Borrower and each of its holding companies and Subsidiaries and each Subsidiary of each of its
holding companies (with respect to each such term, within the meaning of article L.233-3 of the French Commercial Code); 
  
 Permitted Purpose means [subject to the terms of this letter, passing on information to a prospective purchaser for the purpose
of]2 considering and evaluating whether to enter into the Acquisition; and 
  

 Page 101 

 Purchaser Group means you, each of your holding companies and Subsidiaries and each
Subsidiary of each of your holding companies (with respect to each such term, within the meaning of article L.233-3 of the French Commercial Code). 
  
 Please acknowledge your agreement to the above by signing and returning the enclosed copy. 
  
 Yours faithfully 
  
 .................................... 
  
 For and on behalf of 
 [Seller/Seller’s agent/broker] 
  

	 To:
	  	[Seller]
	 	  	[Seller’s agent/broker]
	 	  	The Borrower and each other member of the Group

  
 We acknowledge and agree to the above:

  
 .................................... 
  
 For and on behalf of 
 [Potential Purchaser/Purchaser’s agent/broker] 
  

 Page 102 

 SCHEDULE 12 
  
 EXISTING EVENTS OF DEFAULT 
  
 OR POTENTIAL EVENTS OF DEFAULT 
  
 1.    BRIDGE FACILITY AGREEMENT: 
  

	A.	 	Breach of representations and warranties relating to the Liquidity Plan and in particular, deviations therefrom 

  
 Clauses 16.1(q)(vi) and (vii)—Group Information—deviations 
  

	B.	 	Events of default relating to the Strategic Plan 

  
 Clause 20.1(p)—Strategic Plan—failure to implement Asset Disposals 
 Clause 20.1(q)—Realisation of Strategic Plan 
  

	C.	 	Breach of financial covenants 

  
 Clause 19.1(a)—Consolidated Net Worth 
 Clause 19.1(b)—Total Debt

 Clause 19.1(c)—Total Net Debt 
  

	D.	 	Breach of representations, warranties and events of default relating to material adverse change  

  
 Clause 16.1(h)—No Material Adverse Change 
 Clause 20.1(l)—Material Adverse Change 
  

	E.	 	Breach of representations, warranties and events of default relating to litigation 

  
 Clause 16.1(i)—Litigation 
 Clause
20.1(m)—Litigation 
  
 F.    Cross default in respect
of any of the breaches referred to in this Schedule 
  
 Clause
20.1(d)—Cross Default 
  
 2.    EXTENDED FACILITY
AGREEMENTS: 
  

	(i)	 	EUR 50,000,000 Bilateral Credit Agreement dated 30 April 2002 between the Borrower and BNP Paribas (amended and restated by a First Amendment Agreement dated 25 March 2003 and a
Second Amendment Agreement dated 3 July 2003): 

  

 Page 103 

	A.	 	Breach of representations and warranties relating to the Liquidity Plan and in particular, deviations therefrom 

  
 Clauses 16.1(q)(vi) and (vii)—Group Information—deviations 
  

	B.	 	Events of default relating to the Strategic Plan 

  
 Clause 20.1(p)—Strategic Plan—failure to implement Asset Disposals 
 Clause 20.1(q)—Realisation of Strategic Plan 
  

	C.	 	Breach of financial covenants 

  
 Clause 19.1(a)—Consolidated Net Worth 
 Clause 19.1(b)—Total Debt

 Clause 19.1(c)—Total Net Debt 
  

	D.	 	Breach of representations, warranties and events of default relating to material adverse change  

  
 Clause 16.1(h)—No Material Adverse Change 
 Clause 20.1(l)—Material Adverse Change 
  

	E.	 	Breach of representations, warranties and events of default relating to litigation 

  
 Clause 16.1(i)—Litigation 
 Clause
20.1(m)—Litigation 
  

	F.	 	Cross default in respect of any of the breaches referred to in this Schedule 

  
 Clause 20.1(d)—Cross Default 
  

	(ii)	 	EUR 25,000,000 (originally EUR 50,000,000) Credit Agreement dated 23 April 2002 between the Borrower and JPMorgan Chase Bank, Paris Branch (amended and restated by a First
Amendment Agreement dated 25 March 2003 and a Second Amendment Agreement dated 3 July 2003): 

  

	A.	 	Breach of representations and warranties relating to the Liquidity Plan and in particular, deviations therefrom 

  
 Clauses 16.1(q)(vi) and (vii)—Group Information—deviations 
  

	B.	 	Events of default relating to the Strategic Plan 

  
 Clause 20.1(p)—Strategic Plan—failure to implement Asset Disposals 
 Clause 20.1(q)—Realisation of Strategic Plan 
  

 Page 104 

	C.	 	Breach of financial covenants 

  
 Clause 19.1(a)—Consolidated Net Worth 
 Clause 19.1(b)—Total Debt

 Clause 19.1(c)—Total Net Debt 
  

	D.	 	Breach of representations, warranties and events of default relating to material adverse change  

  
 Clause 16.1(h)—No Material Adverse Change 
 Clause 20.1(l)—Material Adverse Change 
  

	E.	 	Breach of representations, warranties and events of default relating to litigation 

  
 Clause 16.1(i)—Litigation 
 Clause
20.1(m)—Litigation 
  

	F.	 	Cross default in respect of any of the breaches referred to in this Schedule 

  
 Clause 20.1(d)—Cross Default 
  

	(iii)	 	EUR 400,000,000 (originally EUR 750,000,000) Revolving Credit Facility Agreement dated 28 March 2002 between, inter alios, the Borrower, BNP Paribas as agent and the banks
named therein (amended and restated by a First Amendment Agreement dated 25 March 2003 and a Second Amendment Agreement dated 3 July 2003): 

  

	A.	 	Breach of representations and warranties relating to the Liquidity Plan and in particular, deviations therefrom 

  
 Clauses 16.1(q)(vi) and (vii)—Group Information—deviations 
  

	B.	 	Events of default relating to the Strategic Plan 

  
 Clause 20.1(p)—Strategic Plan—failure to implement Asset Disposals 
 Clause 20.1(q)—Realisation of Strategic Plan 
  

	C.	 	Breach of financial covenants 

  
 Clause 19.1(a)—Consolidated Net Worth 
 Clause 19.1(b)—Total Debt

 Clause 19.1(c)—Total Net Debt 
  

	D.	 	Breach of representations, warranties and events of default relating to material adverse change  

  
 Clause 16.1(h)—No Material Adverse Change 
  

 Page 105 

 Clause 20.1(l)—Material Adverse Change 
  

	E.	 	Breach of representations, warranties and events of default relating to litigation 

  
 Clause 16.1(i)—Litigation 
 Clause
20.1(m)—Litigation 
  

	F.	 	Cross default in respect of any of the breaches referred to in this Schedule 

  
 Clause 20.1(d)—Cross Default 
  

	3.	 	AFFECTED FACILITIES: 

  

	(i)	 	EUR 976,300,000 Multicurrency Revolving Credit Agreement dated 3 August 2001 between, inter alios, the Borrower, BNP Paribas as agent and the banks named therein (amended
by letter dated 28 March 2002 and a second amendment agreement dated 8 April 2003): 

  

	A.	 	Events of default relating to the Strategic Plan 

  
 Clause 20.1(j)—Strategic Plan—failure to implement Asset Disposals 
 Clause 20.1(k)—Realisation of Strategic Plan 
  

	B.	 	Breach of financial covenants 

  
 Clause 19.5(a)—Interest Cover 
 Clause 19.5(b)—Consolidated Net
Worth 
 Clause 19.5(c)—Total Debt 
 Clause
19.5(d)—Total Net Debt 
  

	C.	 	Breach of representations, warranties and events of default relating to material adverse change  

  
 Clause 17.1(j)—No Material Adverse Change 
 Clause 20.1(p)—Material Adverse Change 
  

	D.	 	Breach of representations and warranties and events of default relating to litigation 

  
 Clause 17.1(k)—Litigation 
 Clause
20.1(i)—Litigation 
  

	E.	 	Cross default in respect of any of the breaches referred to in this Schedule 

  
 Clause 20.1(d)—Cross Default 
  

 Page 106 

	(ii)	 	EUR 1,250,000,000 Credit Agreement of 19 April 1999 between, inter alios, the Borrower, BNP Paribas as agent and the banks named therein (amended by an amendment letter
dated 17 May 2000 and by an amendment letter dated 28 March 2002 and amended and restated by third amendment agreement dated 8 April 2003): 

  

	A.	 	Events of default relating to the Strategic Plan 

  
 Clause 20.1(j) Strategic Plan—failure to implement Asset Disposals 
 Clause 20.1(k)—Realisation of Strategic Plan 
  

	B.	 	Breach of financial covenants 

  
 Clause 19.5(a)—Interest Cover 
 Clause 19.5(b)—Consolidated Net
Worth 
 Clause 19.5(c)—Total Debt 
 Clause
19.5(d)—Total Net Debt 
  

	C.	 	Breach of representations, warranties and events of default relating to material adverse change  

  
 Clause 17.1(j)—No Material Adverse Change 
 Clause 20.1(p)—Material Adverse Change 
  

	D.	 	Breach of representations, warranties and events of default relating to litigation 

  
 Clause 17.1(k)—Litigation 
 Clause
20.1(i)—Litigation 
  

	E.	 	Cross default in respect of any of the breaches referred to in this Schedule 

  
 Clause 20.1(d)—Cross Default 
  
 4.    OTHER FACILITIES AND SECURITISATIONS: 
  

	 	(i)	 	Breach of financial covenants; 

  

	 	(ii)	 	breach of representations and warranties and events of default relating to material adverse change; 

  

	 	(iii)	 	breach of representations and warranties and events of default relating to litigation; and 

  

	 	(iv)	 	cross default in respect of the breaches referred to in this Schedule, 

  
 in each case under the following agreements: 
  

 Page 107 

	(a)	 	the Guarantee Facility Agreement dated 12 August 1999 (as amended) between ALSTOM Power Plants Ltd., ALSTOM Holdings and ABB ALSTOM Power as obligors, ALSTOM Power Plants Ltd. as
the applicant, Barclays Bank plc as the agent and the banks named therein; 

  

	(b)	 	the Guarantee Facility Agreement dated 13 September 2001 between, inter alios, ALSTOM Holdings and UBS AG; 

  

	(c)	 	the Project known as “Northern Line” dated 18 December 2002 between ALSTOM Holdings, Royal Bank of Scotland (Industrial Leasing) Limited and AssetFinance March (A)
Limited; 

  

	(d)	 	the EUR 200,000,000 Loan Agreement dated 18 August 2000 (as amended) between the Borrower and CDC Finance—CDC IXIS; 

  

	(e)	 	the USD 200,000,000 Receivables Purchase Agreement between ALSTOM Power Receivables Corporation and Preferred Receivables Funding Corporation dated 29 September 2000 with a
guarantee by ALSTOM Holdings; 

  

	(f)	 	the EUR 205,000,000 Step-Up Floating Rate Notes due 2031 dated 30 March 2001 issued by ALSTOM Holdings together with a Deed of Payment by ALSTOM Holdings relating to preference
shares issued by ALSTOM Finance Jersey Limited; 

  

	(g)	 	the EUR 50,000,000 Credit Agreement between ALSTOM Holdings and Dai-Ichi Kangyo Bank Limited dated 30 November 2000; 

  

	(h)	 	the USD 5,580,000 import credit facility and promissory note between ALSTOM Transportation Inc and ALSTOM Brasil LTDA and Banque Sudameris dated 6 February 2001 with a letter of
comfort from ALSTOM Holdings; 

  

	(i)	 	the INR 185,000,000 Credit Facility between ALSTOM Power India Limited and Crédit Lyonnais, New Delhi branch dated 18 July 2002 with a letter of comfort from ALSTOM Holdings;

  

	(j)	 	the EUR 182,485,131.27 sale of receivables by ALSTOM Transport SA to Crédit Agricole Indosuez, BNP Paribas and Société Générale dated 30 September
2002 with a guarantee by ALSTOM Holdings; 

  

	(k)	 	the EUR 268,372,814.33 securitisation of receivables by ALSTOM Transport SA and guaranteed by ALSTOM Holdings and arranged by Bayerische Landesbank dated 24 September 2002;

  

	(l)	 	the AFB Master Agreement between ALSTOM Holdings and Crédit Agricole Indosuez dated 8 August 1997; 

  

	(m)	 	the ISDA Master Agreement between UBS AG and ALSTOM Holdings dated 20 November 2000; 

  

 Page 108 

	(n)	 	the ISDA Master Agreement between The Chase Manhattan Bank and ALSTOM Holdings dated 30 November 2000; 

  

	(o)	 	the ISDA Master Agreement between Standard Chartered Bank and ALSTOM Holdings dated 7 December 2000; 

  

	(p)	 	the ISDA Master Agreement between Nordea Bank Sweden AB (publ) and ALSTOM Holdings dated 20 September 2001; 

  

	(q)	 	the ISDA Master Agreement between Merrill Lynch International Bank Limited and ALSTOM Holdings dated 2 October 2001; 

  

	(r)	 	the ISDA Master Agreement between Royal Bank of Canada and ALSTOM Holdings dated 31 October 2001; 

  

	(s)	 	the ISDA Master Agreement between Merrill Lynch Capital Markets Bank Limited and ALSTOM Holdings dated 16 April 2002; 

  

	(t)	 	the ISDA Master Agreement between CCF and ALSTOM Holdings to be executed in 2002; 

  

	(u)	 	the ISDA Master Agreement between Citibank N.A. and GEC Alsthom Ltd dated 4 January 1996; 

  

	(v)	 	the EUR 465,700,000 Prepayment Agreement dated 14 June 2002 in relation to Queen Mary 2 between Chantiers de l’Atlantique and Société Générale with
a guarantee by ALSTOM Holdings, 

  
 and any other agreement or
securitisation programme (other than this Agreement) which contain clauses of the type referred to in 4(i), (ii), (iii) or (iv) above to which a Lender is a party with the Borrower or any other member of the Group. 
  

 Page 109 

 SCHEDULE 13 
  
 PWC ADDITIONAL SCOPE 
  
 1.    Scope 
  

	(a)	 	Analysis of Alstom’s treasury functions: 

  

	 	(i)	 	Processes; 

  

	 	(ii)	 	Adequacy; 

  

	 	(iii)	 	Controls; 

  

	 	(iv)	 	Inter-company liabilities; 

  

	 	(v)	 	Review of accounting policies; 

  

	 	(vi)	 	Analysis of FX risks; 

  

	 	(vii)	 	Hedging policies and hedge book review; and 

  

	 	(viii)	 	Cash management. 

  
 The work performed on this subject should include recommendations on areas of improvement. 
  

	(b)	 	Analysis of Cash: 

  

	 	(i)	 	Location of cash balances; 

  

	 	(ii)	 	Minimum cash needed; 

  

	 	(iii)	 	Analysis of and recommendation on trapped cash; and 

  

	 	(iv)	 	Intra-month balances. 

  

	(c)	 	Analysis of maintenance and discretionary capital expenditures. 

  

	(d)	 	Analysis of restructuring costs. 

  

	(e)	 	Further analysis of working capital elements. 

  

	(f)	 	Analysis of forecasting procedures: 

  

	 	(i)	 	Recommendations on possible improvements (including balance sheet and P&L items). 

  

 Page 110 

 2.    Timetable 
  
 The above described work will begin from 15 November 2003 (i.e. after final validation of the Downside Case business plan) on the basis of a
timetable to be agreed with PWC (it being understood that such work would be completed by no later than September 2004, that conclusions on individual items would be provided as soon as completed, and that quarterly progress reports on the overall
assignment would also be provided) and within a total cost of €5,000,000, covering all work performed by PWC from 22 September 2003. This work is to be performed with duty of care to the Lenders. 
  

 Page 111 

 SIGNATORIES 
  
 The Borrower 
  
 ALSTOM 
  
 Fax No: +33 1 47 55 29 22

  
 Attention: Marc Haestier / Olivier Klaric / Pierre-Jean Bosio 
  
 (S) PIERRE-JEAN BOSIO 
  
 The Arrangers 
  
 BNP PARIBAS 
  
 Fax No: +33 1 42 98 19 33 
  
 Attention: Dominique
de Narbonne 
  
 (S) BRUNO TASSART 
  
 CREDIT AGRICOLE INDOSUEZ 
  
 Fax No: +33 1 41 89 19 35/08 72 
  
 Attention: Vincent Bourlet / Marie-Madeleine Guiziou 
  
 (S) BERTRAND
SAUZEY                 (S) JACQUES MASSON 
  
 CREDIT LYONNAIS 
  
 Fax No: +33 1 42 95 89 25 
  
 Attention:
François Montel / Thomas Pardoux 
  
 (S) JEAN-LUC RANSAC 
  

 Page 112 

 SOCIETE GENERALE 
  
 Fax No: +33 1 42 14 21 23 
  
 Attention: Didier Miaume / Jean-Etienne Errera 
  
 (S) DIDIER MIAUME 
  
 CAISSE FRANCAISE DE DEVELOPPEMENT INDUSTRIEL

  
 Fax No: +33 1 58 19 26 70 
  
 Attention: Jean-Paul Rochard 
  
 (S) PHILIPPE MICHAUD 
  
 The Agent 
  
 BNP PARIBAS 
  
 Fax No: +33 1 42 98 43 17
/ 55 24 
  
 Attention: Thierry Bonnel 
  
 (S) BRUNO TASSART 
  

 Page 113 

	 The Lenders

	  	Tranche A
Commitment

	  	Tranche B
Commitment

	 ABN AMRO BANK N.V.
  
 (S) BRUNO TASSART/
 (S) PATRICK D’HEROUVILLE
	  	€14,698,310	  	€4,301,691
			
	 AUSTRALIA AND NEW ZEALAND
 BANKING GROUP LIMITED
  
 (S) BRUNO TASSART/
 (S) PATRICK D’HEROUVILLE
	  	€1,933,988	  	€566,012
			
	 BANCA DI ROMA, PARIS BRANCH
  
 (S) BRUNO TASSART/
 (S) PATRICK D’HEROUVILLE
	  	€3,867,976	  	€1,132,024
			
	 BANCA INTESA S.P.A.
  
 (S) BRUNO TASSART/
 (S) PATRICK D’HEROUVILLE
	  	€44,094,928	  	€12,905,072
			
	 BANCO BILBAO BIZCAYA ARGENTARIA S.A.
  
 (S) BRUNO TASSART/
 (S) PATRICK D’HEROUVILLE
	  	€6,962,357	  	€2,037,643
			
	 BANCO BILBAO BIZCAYA ARGENTARIA S.A., PARIS BRANCH
  
 (S) BRUNO TASSART/
 (S) PATRICK D’HEROUVILLE
	  	€6,962,357	  	€2,037,643
			
	 BANCO SANTANDER CENTRAL HISPANO
  
 (S) PATRICE PANAGET
 (S) WILLIAM DUANE
	  	€11,217,131	  	€3,282,869
			
	 BARCLAYS BANK PLC
  
 (S) BRUNO TASSART/
 (S) PATRICK D’HEROUVILLE
	  	€34,038,190	  	€9,961,810
			
	 BAYERISCHE LANDESBANK, PARIS BRANCH
  
 (S) DANIEL BENDAVID
 (S) EMMANUEL BALLANDE
	  	€126,096,023	  	€36,903,977
			
	 BNP PARIBAS
  
 (S) BRUNO TASSART
	  	€47,039,396	  	€13,766,816

  

 Page 114 

	 The Lenders

	  	Tranche A
Commitment

	  	Tranche B
Commitment

	 CAISSE FRANÇAISE DE
 DEVELOPPEMENT INDUSTRIEL
  
 (S) PHILIPPE MICHAUD
	  	€300,000,000	  	N/A
			
	 CAIXA CATALUNYA, SUCCURSALE EN FRANCE
  
 (S) BRUNO TASSART/
 (S) PATRICK D’HEROUVILLE
	  	€1,547,191	  	€452,810
			
	 CCF
  
 (S) BRUNO TASSART/
 (S) PATRICK D’HEROUVILLE
	  	€7,587,000	  	€2,220,454
			
	 CDC FINANCE—CDC IXIS
  
 (S) BRUNO TASSART/
 (S) PATRICK D’HEROUVILLE
	  	€17,070,748	  	€4,996,022
			
	 CITIBANK INTERNATIONAL PLC
  
 (S) BRUNO TASSART/
 (S) PATRICK D’HEROUVILLE
	  	€28,623,024	  	€8,376,976,
			
	 COMMERZBANK AKTIENGESELLSCHAFT,
 PARIS BRANCH
  
 (S) ULRICH THOMAS BARTOSZEN
 (S) STUART CARRAWAY
	  	€51,830,881	  	€15,169,119
			
	 CREDIT AGRICOLE INDOSUEZ
  
 (S) BERTRAND SAUZEY
 (S) JACQUES MASSON
	  	€25,167,737	  	€7,365,733
			
	 CREDIT INDUSTRIEL ET COMMERCIAL
  
 (S) BRUNO TASSART/
 (S) PATRICK D’HEROUVILLE
	  	€32,244,747	  	€9,436,930
			
	 CREDIT LYONNAIS
  
 (S) JEAN-LUC RANSAC
	  	€13,146,609	  	€3,847,561

  

 Page 115 

	 The Lenders

	  	Tranche A
Commitment

	  	Tranche B
Commitment

	 DEUTSCHE BANK AG
  
 (S) BRUNO TASSART/
 (S) PATRICK D’HEROUVILLE
	  	€17,792,690	  	€5,207,310
			
	 DEXIA BANK
  
 (S) BRUNO TASSART/
 (S) PATRICK D’HEROUVILLE
	  	€15,471,904	  	€4,528,095
			
	 DRESDNER BANK AG
  
 (S) BRUNO TASSART/
 (S) PATRICK D’HEROUVILLE
	  	€39,453,357	  	€11,546,643
			
	 ELECTRO BANQUE
  
 (S) BRUNO TASSART/
 (S) PATRICK D’HEROUVILLE
	  	€3,867,976	  	€1,132,024
			
	 FORTIS BANK S.A./N.V.
  
 (S) BRUNO TASSART/
 (S) PATRICK D’HEROUVILLE
	  	€27,075,833	  	€7,924,167
			
	 HSBC BANK PLC
  
 (S) BRUNO TASSART/
 (S) PATRICK D’HEROUVILLE
	  	€44,777,832	  	€13,104,934
			
	 ING BANK (FRANCE)
  
 (S) BRUNO TASSART/
 (S) PATRICK D’HEROUVILLE
	  	€2,707,583	  	€792,417
			
	 JPMORGAN CHASE BANK, PARIS BRANCH
  
 (S) PATRICK A. DANIELLO
	  	€85,095,475	  	€24,904,525
			
	 LLOYDS TSB BANK PLC
  
 (S) WILL PATTERSON
	  	€37,132,571	  	€10,867,429
			
	 MIZUHO CORPORATE BANK, LTD
  
 (S) BRUNO TASSART/
 (S) PATRICK D’HEROUVILLE
	  	€17,792,690	  	€5,207,310

  

 Page 116 

	 The Lenders

	  	Tranche A
Commitment

	  	Tranche B
Commitment

	 NATEXIS BANQUES POPULAIRES
  
 (S) BRUNO TASSART/
 (S) PATRICK D’HEROUVILLE
	  	€15,173,999	  	€4,440,908
			
	 SANPAOLO IMI S.P.A.
  
 (S) A. GAROMBO
	  	€2,630,224	  	€769,776
			
	 SOCIETE GENERALE
  
 (S) DIDIER MIAUME
	  	€32,244,747	  	€9,436,930
			
	 SUMITOMO MITSUI
  
 (S) BRUNO TASSART/
 (S) PATRICK D’HEROUVILLE
	  	€12,377,524	  	€3,622,476
			
	 THE BANK OF TOKYO-MITSUBISHI, LTD.
  
 (S) BRUNO TASSART/
 (S) PATRICK D’HEROUVILLE
	  	€17,019,095	  	€4,980,905
			
	 THE ROYAL BANK OF SCOTLAND PLC
  
 (S) RICHARD DEVIN
	  	€18,512,134	  	€5,417,866
			
	 UNION DES BANQUES ARABES ET
 FRANÇAISES – U.B.A.F.
  

(S) BRUNO TASSART/
 (S) PATRICK D’HEROUVILLE
	  	€2,320,786	  	€679,215
			
	 UNICREDIT BANCA D’IMPRESA S.P.A.
  
 (S) BRUNO TASSART/
 (S) PATRICK D’HEROUVILLE
	  	€2,707,583	  	€792,417
			
	 WESTLB AG, PARIS BRANCH
  
 (S) BRUNO TASSART/
 (S) PATRICK D’HEROUVILLE
	  	€31,717,404	  	€9,282,596
	

			
	 TOTAL COMMITMENTS
	  	€1,200,000,000	  	€263,399,105
	

	

  

 Page 117<PAGE>

                                                                    Exhibit 10.1

                                                                  Execution Copy

                           LOAN AND SECURITY AGREEMENT

                                   dated as of

                                December 11, 2002

                                  By and Among

                       GREAT LAKES CAPITAL ACCEPTANCE LLC

                                       and

                           GREAT LAKES FUNDING I, LLC,

                                  as Borrowers,

                                       and

                         TEXTRON FINANCIAL CORPORATION,

                                    as Lender

                                      ****

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
SECTION HEADING                                                            PAGE #
                                                                           ------
<S>                                                                        <C>
1. DEFINITIONS. ................................................................1

    1.1.  Certain Defined Terms ................................................1
    1.2.  Other Definitional Provisions and Construction ......................15

2. THE LOAN AND TERMS OF REPAYMENT. ...........................................16

    2.1.  The Loan and Borrowing Base .........................................16
    2.2.  Provisions Aplicable to the Loan ....................................17
    2.3.  Pending defaults ....................................................17
    2.4.  Reserves ............................................................l7
    2.5.  Advance Request .....................................................17

3. FEES, AUDITS, PREPAYMENTS. .................................................18

    3.1.  Fees ................................................................18
    3.2.  Broker's and Finder's Fees ..........................................18
    3.3.  Collateral Audits, Appraisals .......................................18
    3.4.  Termination Fee .....................................................18
    3.5.  Prepayment and Prepayment Notice ....................................19
    3.6.  Mandatory Prepayment or Reduction ...................................20
    3.7.  Guarantors ..........................................................21
    3.8.  Additional Security .................................................21

4. SECURITY AGREEMENT. ........................................................21

    4.1.  Grant of Security Interest ..........................................21
    4.2.  Dominion of Funds Agreements and Collection of Receivables ..........21
    4.3.  Dominion of Funds ...................................................22
    4.4.  No Duty .............................................................22
    4.5.  Financing Statements; Control Agreements; After-Acquired Property ...22
    4.6.  Lender's Appointment as Attorney in-Fact ............................23
    4.7.  Right to Inspect ....................................................24
    4.8.  Control Agreements ..................................................24
    4.9.  Delivery and Delivery of Collateral to Effect Sale ..................25
    4.10. Release Upon Payment ................................................25

5. CONDITIONS PRECEDENT. ......................................................25

    5.1.  Conditions Precedent to Initial Advance .............................25
    5.2.  Conditions Precedent to Subsequent Advances .........................26

6. WARRANTIES AND REPRESENTATIONS. ............................................26

    6.1.  Organization and Authority ..........................................26
    6.2.  Borrowing is Legal and Authorized ...................................27
    6.3.  Margin Loans and Purchase of Ineligible Securities ..................27
    6.4.  Taxes ...............................................................28
    6.5.  Compliance with Law .................................................28
    6.6.  Financial Statements; Full Disclosure ...............................28
    6.7.  Litigation, Adverse Effects .........................................29
    6.8.  Labor Matters .......................................................29
    6.9.  Solvency ............................................................29
    6.10. Government Consent ..................................................29
    6.11. No Liens ............................................................29
</TABLE>

<PAGE>

<TABLE>
<S>                                                                            <C>
    6.12. Indebtedness ........................................................30
    6.13. No Defaults .........................................................30
    6.14. Environmental Protection ............................................30
    6.15. Regarding the Financial Assets and Locations ........................30
    6.16. Intellectual Property ...............................................31

7. AFFIRMATIVE AND NEGATIVE COVENANTS. ........................................31

    7.1.  Payment of Taxes and Claims .........................................31
    7.2.  Collateral Insurance ................................................31
    7.3.  Place of Business; Books and Records ................................32
    7.4.  Maintenance; Collateral Covenants ...................................32
    7.5.  Environmental Compliance ............................................34
    7.6.  Average/Weighted Loan Basis .........................................34
    7.7.  Management ..........................................................34
    7.8.  Restriction on Fundamental Changes; Conduct of Business .............34
    7.9.  Sale of Assets ......................................................35
    7.10. Negative Pledge .....................................................35
    7.1l. Indebtedness ........................................................35
    7.12. Contingent Obligations ..............................................35
    7.13. Restricted Payments .................................................36
    7.14. Loans and Advances, Investments .....................................36
    7.15. Non-Qualified Sellers; Restriction on Certain Assets ................36
    7.16. Transactions With Affiliates ........................................37
    7.17. Maintenance of Deposit Accounts .....................................37
    7.18. Modification of Accounts Receivable .................................37
    7.19. Prepayment and Amendments of Indebtedness ...........................37
    7.20. Restrictions on Parent Company ......................................38
    7.21. Financial Covenants .................................................38

8. FINANCIAL INFORMATION AND REPORTING. .......................................39

9. DEFAULT. ...................................................................42

    9.1.  Events of Default ...................................................42
    9.2.  Default Remedies ....................................................43

10. GENERAL PROVISIONS. .......................................................44

   10.1.  Notices .............................................................44
   10.2.  Access to Accountants ...............................................44
   10.3.  Costs and Expenses ..................................................44
   10.4.  Survival, Successors and Assigns ....................................45
   10.5.  Amendment and Waiver, Duplicate Originals ...........................45
   10.6.  Accounting Treatment and Fiscal Year ................................45
   10.7.  Enforceability and Governing Law ....................................45
   10.8.  Confidentiality .....................................................46
   10.9.  Effective Date ......................................................46
   10.10. Section Headings, Interpretations and Severability ..................46
   10.11. Counterparts; Facsimile Execution ...................................47
   10.12. Revival and Reinstatement of Obligations ............................47
   10.13. Integration .........................................................47
   10.14. Waiver of Right to Trial by Jury ....................................47
   10.15. No Consequential Damages ............................................48
   10.16. Indemnity ...........................................................48
</TABLE>

                                     - ii -

<PAGE>

Exhibits and Schedules

     Exhibit B         - Bailee Letter
     Exhibit C         - Revolving Note
     Exhibit D         - Advance Request and Borrowing Base Certificate
     Schedule 1.1(a)   - Mortgage File
     Schedule 1.1(b)   - Permitted Liens
     Schedule 5.1      - Conditions Precedent to Initial Advance
     Schedule 6.1      - Organizational Structure
     Schedule 6.4      - Taxes
     Schedule 6.7      - Pending or Threatened Claims
     Schedule 6.8      - Labor Matters
     Schedule 6.12     - Indebtedness
     Schedule 6.15     - Business and Collateral Locations
     Schedule 6.16     - Intellectual Property
     Schedule 7.17     - Deposit Accounts
     Schedule 9.1(n)   - Post Closing Matters

                                     - iii -

<PAGE>

                           LOAN AND SECURITY AGREEMENT

     This Loan and Security Agreement (this "Agreement") is entered into at
Columbus, Ohio, between Textron Financial Corporation, with a place of business
at 130 E. Chestnut Street, Suite 400, Columbus, Ohio 43215 (together with its
successors, "Lender"), Great Lakes Capital Acceptance LLC, an Illinois limited
liability company ("GLCA"), and Great Lakes Funding I, LLC, an Illinois limited
liability company ("GL Funding"), each with its principal place of business at
27 East Monroe Street, Suite 700, Chicago, Illinois 60603, as of the 11th day
of December, 2002.

1.   Definitions.

1.1. Certain Defined Terms.

     In addition to the terms defined above, the following terms used in this
Agreement, the promissory note or other Loan Documents (as defined below)
executed in connection herewith shall have the following meanings, applicable
both to the singular and the plural forms of the terms defined. As used in this
Agreement:

"Account Debtor" means a Person obligated to a Borrower pursuant to a promissory
note, loan or Financial Asset owned by a Borrower.

"Accounts" means all now owned or hereafter acquired right, title and interest
in all "accounts" (as defined in the UCC) and accounts receivable, and any and
all supporting obligations in respect of any of the foregoing.

"Adjusted Tangible Net Worth" means, at the time of each determination, such
Person's shareholders' or members' equity plus the principal amount of such
Person's Subordinated Debt, minus the sum of all of the following: (i) the
excess of cost over the value of net assets of purchased businesses, rights, and
other similar intangibles, (ii) organizational expenses, (iii) intangible assets
(to the extent not reflected in the foregoing), (iv) goodwill, (v) deferred
expenses, deferred charges or deferred financing costs other than the initial
nonrefundable fee paid to Lender pursuant to Section 3.1(a) below and broker's
fees, if any, incurred in connection with this Agreement, **** (vi) loans or
advances to and/or accounts or notes receivable from Affiliates not wholly owned
by such Person, (vii) non-compete agreements, (viii) any surplus resulting from
any write-up of assets, and (ix) any other asset not directly related to the
operation of the business of such Person.

"Advisor" is defined in Section 7.22.

"Affiliate" means, as applied to any Person, any other Person who, directly or
indirectly, controls, is controlled by, or is under common control with, such
Person, or is a family member related by birth or marriage. For purposes of this
definition, "control" means the possession, directly or indirectly, of the power
to direct the management and policies of a Person, whether through the ownership
of equity interests, by contract, or otherwise; provided, however, that, in any
event: (a) any Person which owns directly or indirectly five percent (5%) or
more of the securities having ordinary voting power for the election of
directors or other members of the governing body of a Person or five percent
(5%) or more of the partnership, member or other

<PAGE>

ownership interests of a Person (other than as a limited partner of such
Person) shall be deemed to control such Person; (b) each director (or manager)
of a Person shall be deemed to be an Affiliate of such Person; and (c) each
partnership or joint venture in which a Person is a partner or joint venturer
shall be deemed to be an Affiliate of such Person.

"Agreement" means this Loan and Security Agreement.

****

"Attendant Collateral Documents" is defined in Section 4.5

"Bailee Letter" means a letter substantially similar to the agreement attached
hereto as Exhibit B.

"Base Rate Margin" means two percent (2%) per annum

"Bankruptcy Code" means Title 11 of the United States Code (11 USC, (S) 101 et
seq), as amended from time to time, and any successor statute thereto, including
(unless the context requires otherwise), any rules or regulations promulgated
thereunder.

"Base Rate" ****

"Borrower" means (i) in the singular, GLCA and GL Funding, each in its own
separate capacity, and (ii) in the plural collectively GLCA and GL Funding,
together with their successors and assigns.

"Borrowing Base" in respect of any Borrower means, as of the date of
determination, an amount up to **** of the Loan Basis of such Borrower's
Eligible Financial Assets.

"Borrowing Base Collateral" means all instruments, notes, agreements and
documents evidencing the underlying debt obligations relating to the Eligible
Financial Assets.

"Business Day" means any day that is not a Saturday, Sunday, or other day on
which national banks are authorized or required to close.

"Capital Expenditures" ****

"Capital Lease" means a lease that is required to be capitalized for financial
reporting purposes in accordance with GAAP.

                                       -2-

<PAGE>

"Cash Collateral Account" means a cash collateral account maintained at a
deposit bank satisfactory to Lender for the purpose of collecting any Borrower's
Financial Assets, proceeds thereof and proceeds of other Collateral, with
respect to which Lender has the sole power of withdrawal.

"Cash Equivalents" means (a) marketable direct obligations issued or
unconditionally guaranteed by the United States of America or issued by any
agency thereof and backed by the full faith and credit of the United States, in
each case maturing within one (1) year from the date of acquisition thereof, (b)
marketable direct obligations issued by any state of the United States or any
political subdivision of any such state or any public instrumentality thereof
maturing within one (1) year from the date of acquisition thereof and, at the
time of acquisition, having the highest rating obtainable from either S&P or
Moody's, and (c) certificates of deposit or bankers' acceptances maturing within
one (1) year from the date of acquisition thereof either (i) issued by any bank
organized under the laws of the United States or any state thereof which bank
has a rating of A or A2, or better, from S&P or Moody's, or (ii) issued by any
other bank insured by the Federal Deposit Insurance Corporation ("FDIC"),
provided that such certificates of deposit are less than or equal to, in the
aggregate, the deposit insurance coverage limit set by the FDIC for single
ownership accounts.

"Change of Control" means (a) in respect of any Person the replacement of a
majority of the directors or managers who constituted the board of directors or
the managing body on the date of this Agreement for any reason other than death
or disability, and such replacement shall not have been approved by the board of
directors or managing body as constituted on the date of this Agreement; (b) a
Person or Persons acting in concert, as a result of a tender or exchange offer,
privately negotiated purchase or purchases, exercise of the stock pledge, death
of a shareholder or member or otherwise, shall have become the "beneficial
owner" (within the meaning of Rule 13d.3 and 13d.5 under the Securities Exchange
Act of 1934, as amended from time to time) of securities of any Borrower
representing more than ten percent (10%) of the combined voting power of the
outstanding securities of any Borrower ordinarily having the right to vote in
the election of directors or managers: (c) George Luburich, II fails to
beneficially own and control at least eighty percent (80%) of the voting power
of Parent Company; (d) Parent Company is not the beneficial owner of 100% of the
ownership and voting control of GLCA; or (e) GLCA fails to directly own and
control 100% of the outstanding equity interests of its Subsidiaries.

"Closing Date" means the date of the making of the initial advance hereunder.

"Collateral" means all now owned or hereafter acquired right, title and interest
in all of the Financial Assets, the Mortgage Collateral, the Accounts, the
Inventory, the Equipment, the General Intangibles, the Intellectual Property,
the Investment Property, the Deposit Accounts and Proceeds and in any property
of a Borrower in or upon which a security interest, Lien deed of trust or
mortgage is granted to Lender, whether under this Agreement, any security
agreement or under any of the other Loan Documents.

"Consumer Finance Laws" means all applicable federal, state and local laws,
regulations or ordinances, relating to the extension or repayment of consumer
credit, the maintenance or servicing of consumer credit accounts or records, or
the creation of a security interest in personal property or a mortgage in real
property in connection with a consumer credit account, as the case may be, and
laws or regulations with respect to the disclosure of or the protection of
consumers' interests in connection with such transactions, including without
limitation, any interest rate disclosure and limitation laws or regulations, the
Federal Consumer Credit Protection Act, the Federal Fair Credit Reporting Act,
the Federal Fair Debt Collection Practices Act, the Home

                                       -3-

<PAGE>

Mortgage Disclosure Act, the Real Estate Settlement Procedures Act, the Federal
Equal Credit Opportunity Act, the Magnuson-Moss Warranty Act, the Federal Trade
Commission's Rules and Regulations, the Right to Financial Privacy Act, the
Federal Truth in Lending Act, the Home Ownership and Equity Protection Act, the
Federal Reserve Board's Rules and Regulations regarding consumer credit
accounts, and all similar state or local laws, regulations or ordinances, as any
of the foregoing may be amended from time to time.

"Consumer Purpose Loans" means (a) loans to one or more individuals secured by
residential real estate, (b) loans to one or more individuals secured by goods
or merchandise for personal, household or family use, or (c) unsecured loans to
one or more individuals for personal, household or family use.

"Contingent Obligations" means any agreement, undertaking or arrangement by
which any Person assumes, guaranties, endorses, agrees to provide funding, or
otherwise becomes or is contingently liable upon the obligation or liability of
any other Person.

"Contra" means any Financial Asset that is subject to any credit, contra
account, allowance, adjustment, return of goods, or discount.

"Control" means the power, directly or indirectly, to vote five percent (5%) or
more of the securities, units or other measures having ordinary voting power for
the election of directors, managers, management committees, or similar
committees of such Person, or the power to direct or cause the direction of the
management and policies of such Person, whether by contract or otherwise.

"Controlled Group" means the group consisting of (i) any corporation which is a
member of the same controlled group of corporations (within the meaning of
Section 414(b) of the Internal Revenue Code, 26 U.S.C., as amended from time to
time) as Parent Company; (ii) a partnership or other trade or business (whether
or not incorporated) which is under common control (within in the meaning of
Section 414(c) of the Internal Revenue Code, 26 U.S.C., as amended from time to
time) with Parent Company; and (iii) a member of the same affiliated service
group (within in the meaning of Section 414(m) of the Internal Revenue Code, 26
U.S.C., as amended from time to time) as Parent Company, any corporation
described in clause (i) above or any partnership or trade or business described
in clause (ii) above.

"Custodial Agent" means U.S. Bank National Association or any successor,
collateral agent or custodian under any Custodial Agreement, Collateral Agency
Agreement or similar agreement entered into from time to time, between and among
such Custodial Agent, Lender and any Borrower.

"Custodial Agreement" means that certain Collateral Agency Custodial Agreement
among the Borrowers, Lender and the Custodial Agent, as amended, modified,
restated or supplemented from time to time.

"Default Rate" means an interest rate per annum equal to the Base Rate, plus the
Base Rate Margin, ****

"Depreciation and Amortization" means depreciation, amortization, expenses and
other non-cash charges which were deducted in determining Net Income for such
period.

"Deposit Accounts" means "deposit accounts" (as defined in the UCC), all deposit
accounts, whether general, special, time, demand, provisional, or final, all
cash or monies wherever located,

                                       -4-

<PAGE>

any and all deposits or other sums at any time due to such Person, which now or
hereafter are at any time in the possession or control of Lender or in the
possession of any third party acting in Lender's behalf, without regard to
whether Lender received the same in pledge for safekeeping, as agent for
collection or transmission or otherwise, or whether Lender has conditionally
released the same.

"Designated Prepayment" is defined in Section 3.6 (f).

"Dominion of Funds Agreements" is defined in Section 4.2.

"EBITDA" means for any period, the sum of the amounts for such period of (a) Net
Income, (b) Interest Expense, (c) Income Tax Expense and (d) Depreciation and
Amortization.

"Eligible Financial Assets" means, ****

     ****

     ****

     ****

     ****

     ****

     ****

     ****

     ****

                                       -5-

<PAGE>

     ****

     ****

     ****

     ****

     ****

     ****

     ****

     ****

     ****

     ****

"Environmental Actions" means any complaint, summons, citation, notice,
directive, order, claim, litigation, investigation, judicial or administrative
proceeding, judgment, letter, or other communication from any Governmental
Authority, or any third party involving violations of Environmental Laws or
releases of Hazardous Materials from (a) any assets, properties, or businesses
of any Borrower or any predecessor in interest, (b) from adjoining properties or
businesses, or (c) from or onto any facilities which received Hazardous
Materials generated by any Borrower or any predecessor in interest.

"Environmental Law" means any applicable federal, state, provincial, foreign or
local statute, law, rule, regulation, ordinance, code, binding and enforceable
guideline, binding and enforceable written policy or rule of common law now or
hereafter in effect and in each case as amended, or

                                       -6-

<PAGE>

any judicial or administrative interpretation thereof, including any judicial or
administrative order, consent degree or judgment, to the extent binding on any
Borrower, relating to the environment, employee health and safety, or Hazardous
Materials, including, the Comprehensive Environmental Response, Compensation and
Liability Act, 42 USC, (S)9601 et seq; the Resource Conservation and Recovery
Act, 42 USC, (S)9601 et seq; the Federal Water Pollution Control Act, 33 USC
(S)1251 et seq; the Toxic Substances Control Act, 15 USC, (S)2601 et seq; the
Clean Air Act, 42 USC (S)7401 et seq; the Safe Drinking Water Act, 42 USC
(S)3803 et seq.; the Oil Pollution Act of 1990, 33 USC (S)2701 et seq; the
Emergency Planning and the Community Right-to-Know Act of 1986, 42 USC (S)11001
et seq; the Hazardous Material Transportation Act, 49 USC (S)1801 et seq; and
the Occupational Safety and Health Act, 29 USC (S)651 et seq.; (to the extent it
regulates occupational exposure to Hazardous Materials); any state and local or
foreign counterparts or equivalents, in each case as amended from time to time.

"Environmental Liabilities and Costs" means all liabilities, monetary
obligations, remedial actions, losses, damages, punitive damages, consequential
damages, treble damages, costs and expenses (including all reasonable fees,
disbursements and expenses of counsel, experts, or consultants, and costs of
investigation and feasibility studies), fines, penalties, sanctions, and
interest incurred as a result of any claim or demand by any Governmental
Authority or any third party, and which relate to any Environmental Action.

"Environmental Lien" means any Lien in favor of any Governmental Authority for
Environmental Liabilities and Costs.

"Equipment" means all now owned or hereafter acquired right, title and interest
in equipment, machinery, machine tools, motors, furniture, furnishings,
fixtures, data processing and office equipment, assembly systems, tools, parts,
goods (other than Inventory), molds, dies, motor vehicles, vehicles, vessels,
aircraft, aircraft engines, and any and all attachments, accessions,
accessories, replacements, appurtenances, substitutions, additions and
improvements to any of the foregoing.

"ERISA" means the Employee Retirement Income Security Act of 1974, as
amended from time to time, and any successor statute thereto, including without
limitation (unless the context otherwise requires) any rules or regulations
promulgated thereunder.

"ERISA Affiliate" means (a) any Person subject to ERISA whose employees are
treated as employed by the same employer as the employees of any Borrower under
IRC Section 414(b) (as amended from time to time), (b) any trade or business
subject to ERISA whose employees are treated as employed by the same employer as
the employees of any Borrower under IRC Section 414(c) (as amended from time to
time), (c) solely for purposes of Section 302 of ERISA and Section 412 of the
IRC, any organization subject to ERISA that is a member of an affiliated service
group of which a Borrower is a member under IRC Section 414(m) (as amended from
time to time), or (d) solely for purposes of Section 302 of ERISA and Section
412 of the IRC, any Person subject to ERISA that is a party to an arrangement
with a Borrower and whose employees are aggregated with the employees of a
Borrower under IRC Section 414(o) (as amended from time to time).

"Event of Default" means an event described in Section 9.1.

"Financial Asset" means any asset of a Borrower consisting of: (a) Consumer
Purpose Loans secured by first lien or second lien mortgages on residential Real
Property; (b) Personal Property Secured Loans; (c) Non-Performing Foreclosure
Loans; (d) chattel paper, leases, installment sale

                                       -7-

<PAGE>

contracts, Accounts, promissory notes, instruments, payment intangibles or
General Intangibles; or (e) any commercial loans.

"Financial Officer" means the Chief executive officer or Chief financial officer
of any Borrower.

"GAAP" means generally accepted accounting principles set forth in the opinions
and pronouncements of the Accounting Principles Board, the American Institute of
Certified Public Accountants and the Financial Accounting Standards Board as in
effect from time to time the United States consistently applied.

"General Intangibles" means all now owned or hereafter acquired right, title and
interest in "general intangibles" (as defined in the UCC), payment intangibles,
contract rights, rights to payment, rights arising under common law, statutes,
or regulations, income and other tax refunds, proceeds of insurance, eminent
domain and condemnation awards, choses in action, commercial tort claims,
preference recoveries and all claims in respect of transfers of any kind, all
transfers by states and governmental units of states, letter of credit rights,
proceeds of letters of credit, franchise rights, installment contracts,
Intellectual Property, chattel paper, electronic chattel paper, instruments,
promissory notes, property securing rights to payment, negotiable documents,
notes, drafts, acceptances and other forms of obligations, all books, records,
ledger cards, computer programs, and other documents or property relating to any
of the foregoing or to Accounts or Inventory, and all supporting obligations of
any of the foregoing.

"Governmental Authority" means any nation or government, any federal, state,
local or other political subdivision thereof and any entity exercising
executive, legislative, judicial, regulatory or administrative authority or
functions of or pertaining to government, including any authority or other
quasi-governmental entity established to perform any of such functions.

"Guarantors" means any Person which executes and delivers to Lender a Guaranty,
including without limitation, George Luburich, II and Parent Company.

"Guaranty" means each of those certain guaranty agreements executed from time to
time by any Guarantor in favor of Lender, as amended, restated, supplemented or
otherwise modified from time to time, in form acceptable to Lender.

"Hazardous Materials" means (a) substances that are defined or listed in, or
otherwise classified pursuant to, any applicable laws or regulations as
"hazardous substances," "hazardous materials," "hazardous wastes," "toxic
substances," or any other formulation intended to define, list, or classify
substances by reason of deleterious properties such as ignitability,
corrosivity, reactivity, carcinogenicity, reproductive toxicity, or "EP
toxicity," (b) oil, petroleum, or petroleum derived substances, natural gas,
natural gas liquids, synthetic gas, drilling fluids, produced waters, and other
wastes associated with the exploration, development, or production of crude oil,
natural gas, or geothermal resources, (c) any flammable substances or explosives
or any radioactive materials, and (d) asbestos in any form or electrical
equipment that contains any oil or dielectric fluid containing levels of
polychlorinated biphenyls in excess of fifty (50) parts per million.

"Income Tax Expense" means, for any period, all federal, state, local and
foreign income taxes of such Person (whether paid or deferred).

"Indebtedness" means, at any time, (a) all indebtedness, obligations or other
liabilities (other than accounts payable arising in the ordinary course of
business payable on terms customary in the trade) which in accordance with GAAP
should be classified as liabilities on the balance sheet

                                       -8-

<PAGE>

of such Person, including, without limitation (i) for borrowed money or
evidenced by debt securities, debentures, acceptances, notes or other similar
instruments, and any accrued interest, fees and charges relating thereto, (ii)
under profit payment agreements or in respect of obligations to redeem,
repurchase or exchange any securities or to pay dividends in respect of any
stock, (iii) with respect to letters of credit, bankers acceptances, interest
rate swaps or other contracts, currency agreement or other financial products,
(iv) to pay the deferred purchase price of property or services, or (v) in
respect of Capital Leases; (b) all indebtedness, obligations or other
liabilities secured by a lien on any property, whether or not such indebtedness,
obligations or liabilities are assumed by the owner of the same; and (c) all
Contingent Obligations.

"Insolvency Proceeding" means any proceeding commenced by or against any Person
under any provision of the Bankruptcy Code or under any other state or federal
bankruptcy or insolvency law, receivership, assignment for the benefit of
creditors, formal or informal moratorium, composition, extension generally with
creditors, or proceedings seeking reorganization, arrangement, or other similar
relief.

"Intellectual Property" means all now owned or hereafter acquired right, title
and interest in trade names, trademarks, trade secrets, service marks, data
bases, software and software systems, including the source and object codes,
information systems, discs, tapes, customer lists, telephone numbers, credit
memoranda, goodwill, patents, patent applications, patents pending, copyrights,
royalties, literary rights, licenses and franchises.

"Interest Coverage Ratio" is defined in Section in 7.21 below.

"Interest Expense" means, for any period, as determined in conformity with GAAP,
total interest expense, whether paid or accrued or due (including without
limitation in respect of the Loan and the Subordinated Debt) and payable,
including without limitation the interest component of Capital Lease obligations
for such period, all bank fees, and net costs under interest rate contracts.

"Interest Payment Date" means the first Business Day of each month.

"Inventory" means all now owned or hereafter acquired right, title and interest
in "inventory" (as defined in the UCC) and goods, goods in transit, goods held
for sale or lease, or to be furnished under any contract of service, raw
materials, work in process or supplies, and all materials used or consumed in
the business of any Borrower, and any property the sale or other disposition of
which has given rise to Accounts and which has been returned to or repossessed
or stopped in transit.

"Investment" means any loan, advance, extension of credit, deposit account,
contribution of capital or transfer of any assets to any Person or any
investment in, or purchase or other acquisition of, the stock, partnership
interests, ownership interests in any limited liability company, notes,
debentures, or other securities of any other Person; provided that Investments
shall not include accounts receivable arising in the ordinary course of business
on customary trade terms and the purchase of Financial Assets in the ordinary
course of business.

"Investment Property" means all now owned or hereafter acquired right, title and
interest in "investment property" (as defined in the UCC), including without
limitation, securities, whether certificated or uncertificated, securities
entitlements, securities accounts, commodities contracts and commodities
accounts and all supporting obligations of any of the foregoing.

                                       -9-

<PAGE>

"IRC" means the Internal Revenue Code, as amended from time to time, and any
successor statute thereto, including (unless the context requires otherwise) any
rules or regulations promulgated thereunder.

"Lender" is defined in the preamble.

"Lender's Account" is defined in Section 4.3.

"Lien" means any interest in an asset securing an obligation owed to, or a claim
by, any Person other than the owner of the asset, whether such interest shall be
based on the common law, statute, or contract, whether such interest shall be
recorded or perfected, and whether such interest shall be contingent upon the
occurrence of some future event or events or the existence of some future
circumstance or circumstances, including the lien or security interest arising
from a mortgage, deed of trust, encumbrance, pledge, hypothecation, assignment,
collateral assignment, deposit arrangement, security agreement, conditional sale
or trust receipt, or from a lease consignment, or bailment for security purposes
and also including reservations, exceptions, encroachments, easements,
rights-of-way, covenants, conditions, restrictions, leases, and other title
exceptions and encumbrances affecting Real Property.

"License" is defined in Section 7.22.

"Loan Documents" means this Agreement, the promissory note or notes, the
Custodial Agreement, assignment of life insurance, blocked account agreements,
the Guaranties, any cash management agreements, subordination and intercreditor
agreements, deposit account control agreements. Attendant Collateral Documents,
collateral assignments, pledge agreements, security agreements, mortgages, deeds
of trusts and collateral agreements executed in connection with this Agreement,
and all other documents, instruments and agreements executed in connection
therewith or contemplated thereby, as the same may be amended, restated or
otherwise modified and in effect from time to time.

"Loan Party" means each of the Borrowers and the Guarantors.

"Loan" is defined in Section 2.

"Loan Basis" with respect to any Financial Asset means the cost basis of amounts
paid in cash for such asset by any Borrower, minus principal payments made after
the acquisition of such asset, minus amortization permitted or required under
GAAP, and shall not include unearned interest, commissions, discounts, dealer
reserves, fees and like items.

"Material Adverse Effect" means, at any time, a material adverse effect upon (i)
the business condition (financial or otherwise), operations, performance,
properties or prospects of any Borrower, (ii) the ability of any Borrower to
perform its respective obligations under this Agreement, any Loan Document or
any document, agreement, guaranty, or instrument executed in connection
herewith, or (iii) the ability of Lender to enforce the terms of this Agreement,
or any document, agreement, guaranty, or instrument executed in connection
herewith.

"Mortgage Collateral" means:

(a) All private mortgage insurance related to the Financial Assets; all personal
property, contract rights, servicing and servicing fees and income or other
proceeds, amounts and payments payable to Borrowers as compensation or
reimbursement, accounts and general intangibles of whatsoever kind relating to
the Financial Assets and all other documents or instruments relating

                                      -10-

<PAGE>

to the Financial Assets, including, without limitation, any interest of
Borrowers in any fire, casualty or hazard insurance policies and any awards made
by any public body or decreed by any court of competent jurisdiction for taking
or for degradation of value in any eminent domain proceeding as the same relate
to the Financial Assets;

(b) All right, title and interest of Borrowers in and to all escrow accounts,
documents, instruments, files, surveys, certificates, correspondence,
appraisals, computer programs, tapes, discs, cards, accounting records
(including all information, records, tapes, data, programs, discs and cards
necessary or helpful in the administration or servicing of the foregoing
Mortgage Collateral) and other information and data of Borrowers relating to the
foregoing Mortgage Collateral;

(c) All servicing contracts for the rights to service the Financial Assets now
owned or hereafter created or acquired by any Borrower;

(d) All rights of Borrowers to receive payments under or by virtue of the
servicing contracts described in the definition of Mortgage Collateral and the
acknowledgment agreements, whether as servicing fees, servicing income, damages,
amounts payable upon the cancellation or termination of any such servicing
contact, interest on the foregoing, or otherwise; and

(e) Any agreement pursuant to which any servicing contract described in this
definition of Mortgage Collateral (without giving effect to this proviso at the
end hereof) was acquired or is sold by Borrowers, and all documents executed or
delivered in connection with any such acquisition or sale.

"Mortgage File" means, with respect to each Financial Asset, those documents
and items listed in Schedule 1.1 (a) attached hereto.

"Net Cash Proceeds" means (1) proceeds received in cash or Cash Equivalents from
the sale (including, without limitation, any sale and leaseback), assignment or
other disposition of any property, net of (A) the reasonable cash costs of
sale, assignment or other disposition and (B) the amount of any Indebtedness
secured by such property permitted by this Agreement; provided that evidence of
each of (A) and (B) are provided to Lender; (ii) proceeds of insurance on
account of the loss of or damage to any property of such Person, and payments of
compensation for any property taken by condemnation or eminent domain; and (iii)
proceeds received in cash or Cash Equivalents from (A) the issuance of any
capital stock by such Person, or any other additions to the equity of such
Person (other than retained earnings) or any contributions to capital of a
Borrower or (B) issuance of any Indebtedness by such Person net of reasonable
costs incurred in connection with such transaction, provided that evidence of
such costs is provided to Lender.

"Net Income" means, for any period, the net income (or loss) after taxes for
such period taken as a single accounting period, determined in conformity with
GAAP.

"Non-Performing Foreclosure Loan" means any Consumer Purpose Loan (i) which
meets all of the requirements of an Eligible Financial Asset (other than clause
(i) or (ii) of those Financial Assets not eligible), (ii) which is secured by a
perfected first mortgage lien on residential Real Property, and (iii) in respect
of which a Borrower has instituted and is diligently pursuing relief from stay
proceedings, if applicable, and foreclosure proceedings against such Real
Property **** of such Financial Asset.

                                      -11-

<PAGE>

"Obligations" means the Loan, and all advances, Indebtedness, debts, principal,
interest (including without limitation any interest that but for the provision
of the Bankruptcy Code would have accrued), Contingent Obligations, obligations,
fees, charges, costs, expenses, indemnification obligations, lease payments,
liabilities, owing, or due or payable by any Borrower to Lender of any kind or
nature, present or future, whether or not evidenced by any promissory note,
note, draft, letter of credit, guaranty, instrument or document and whether
arising under this Agreement or any of the other Loan Documents or otherwise,
whether direct or indirect, acquired by assignment or otherwise, absolute or
contingent, liquidated or unliquidated, due or to become due, now existing or
arising hereafter and however acquired or incurred (including principal,
interest, late charges, collection costs, attorneys' fees and other amounts
chargeable under this Agreement or under any other Loan Document), and any and
all amendments, extensions, modifications, supplements, renewals of or
substitutes thereto, thereof and therefor, both prior to and subsequent to any
Insolvency Proceeding.

"Parent Company" means Great Lakes Capital Investments, Inc., an Illinois
corporation.

"Pending Default" is defined in Section 2.3.

"Permitted Contest" means the right of a Borrower to contest or protest any Lien
(other than any such Lien that secures the Obligations), taxes (other than
payroll taxes or taxes that are the subject of a United States federal tax
lien), or rental payment, provided that (i) a reserve with respect to such
obligation is established on such Borrower's books and records in such amount as
is required under GAAP. (ii) any such protest is instituted promptly and
prosecuted diligently by such Borrower in good faith, and (iii) Lender is
satisfied in its sole, good faith discretion, that, while any such protest is
pending, there will be no impairment of the enforceability, validity, or
priority of any of Lender's Liens.

"Permitted Dispositions" means (i) sales or other dispositions by a Borrower of
Equipment that is substantially worn, damaged, or obsolete in the ordinary
course of such Borrower's business, (ii) the use or transfer of money or Cash
Equivalents by such Borrower in a manner that is not prohibited by the terms of
this Agreement or the other Loan Documents, and (iii) the licensing by a
Borrower, on a non-exclusive basis, of patents, trademarks, copyrights, and
other intellectual property rights in the ordinary course of such Borrower's
business.

"Permitted Investments" means (i) investments in Cash Equivalents in investment
or deposit accounts subject to Lender's perfected first lien, (ii) investments
in negotiable instruments for collection, and (iii) advances made in connection
with purchases of goods or services in the ordinary course of business.

"Permitted Liens" means (i) any Liens held by Lender or Affiliates of Lender,
(ii) Liens for unpaid taxes that either are not yet delinquent, or do not
constitute an Event of Default hereunder and are the subject of a Permitted
Contest, (iii) Liens set forth on Schedule l.1(b) to the extent of the
Indebtedness referenced therein, (iv) the interests of lessors under
operating leases, (v) Liens securing purchase money Indebtedness or the
interests of lessors under Capital Leases to the extent that such Liens or
interests secure Permitted Purchase Money Indebtedness, (vi) Liens arising by
operation of law in favor of warehousemen, landlords, carriers, mechanics,
materialmen, or laborers, incurred in the ordinary course of a Borrower's
business and not in connection with the borrowing of money, and which
Liens either (A) are for sums not yet delinquent, or (B) are the subject of
Permitted Contests, (vii) Liens arising from deposits made in connection with
obtaining worker's compensation or other unemployment insurance, (viii)
Liens or deposits to secure performance of bids, tenders, or leases incurred in
the ordinary course of a

                                      -12-

<PAGE>

Borrower's business and not in connection with the borrowing of money, (ix)
Liens granted as security for surety or appeal bonds in connection with
obtaining such bonds in the ordinary course of a Borrower's business, (x) Liens
resulting from any judgment or award that is not an Event of Default hereunder
and are the subject of Permitted Contests, and (xi) with respect to any Real
Property, easements, rights of way, and zoning restrictions that do not
materially interfere with or impair the use or operation thereof.

"Permitted Purchase Money Indebtedness" means secured or unsecured purchase
money Indebtedness (including obligations under Capital Leases) incurred to
finance the acquisition of fixed assets or equipment, if such Indebtedness (i)
has a scheduled maturity and is not due on demand, (ii) does not exceed the
purchase price of the items being purchased, and (iii) is not secured by any
property or assets other than the item or items being purchased.

"Person" means any individual, corporation, firm, enterprise, partnership,
trust, incorporated or unincorporated association, joint venture, joint stock
company, limited liability company or any other entity of any kind or any
government or political subdivision or any agency, department or instrumentality
thereof.

"Personal Property Secured Loan" means a Consumer Purpose Loan secured by a
perfected first lien or security interest on personal property.

"Plan" means an employee benefit plan defined in Section 3(3) of ERISA, other
than a multi-employer plan, in respect of which Parent Company, a Borrower or
any member of the Controlled Group is, or within the immediately preceding six
(6) years was, an "employer" as defined in Section 3(5) of ERISA.

"Pledge Agreements" means those certain pledge and security agreements to be
executed by (i) the Trustee under a certain Trust Agreement Establishing George
Luburich, II Revocable Trust, by which such Person pledges to Lender all of the
outstanding capital stock of Parent Company, and (ii) Parent Company, by which
such Person pledges to Lender all of the outstanding membership interests of
GLCA, and (iii) GLCA, by which GLCA pledges to Lender all of the outstanding
membership interests of GL Funding.

"Proceeds" means "proceeds" (as defined in the UCC), all cash and non-cash
proceeds, substitutions, replacements, additions and accessions to any
Collateral, all documents, negotiable documents, documents of title, warehouse
receipts, storage receipts, dock receipts, dock warrants, express bills, freight
bills, airbills, bills of lading, and other documents relating thereto, all
products thereof, including, but not limited to, notes, drafts, checks,
instruments, insurance proceeds, indemnity proceeds, warranty and guaranty
proceeds.

"Qualified Seller" means a Seller which, at the time of the proposed
acquisition, (a) is in substantial compliance with all Requirements of Law and
Consumer Finance Laws applicable to such Seller, and (b)(i) has a net worth (as
reasonably determined by Borrowers and Lender based upon information publicly
available with respect to such Seller) of ****, or (ii) has provided a guaranty
of performance of such Seller of such loans under its contractual undertakings
with a Borrower, such guaranty having been executed by a Person who has a net
worth (as reasonably determined by Borrowers and Lender based upon information
publicly available with respect to such Seller) of ****. Additionally, the term
"Qualified Seller" shall mean any Person which upon written request of a
Borrower is approved by Lender in writing; provided, however that such approval
shall be deemed given by Lender if Lender shall

                                      -13-

<PAGE>

fail to object in writing to such Seller within five (5) Business Days after
Lender receives written request for approval from a Borrower.

"Real Property" means any estate or interest in real property (including without
limitation any leasehold interest) now owned or hereafter acquired by a Person
and all improvements thereto.

"Remedial Action" means all actions taken to (i) clean up, remove, remediate,
contain, treat, monitor, assess, evaluate, or in any way address Hazardous
Materials in the indoor or outdoor environment, (ii) prevent or minimize a
release or threatened release of Hazardous Materials so they do not migrate or
endanger or threaten to endanger public health or welfare or the indoor or
outdoor environment, (iii) perform any pre-remedial studies, investigations, or
post-remedial operation and maintenance activities, or (iv) conduct any other
actions authorized by 42 USC (S)9601 et seq.

"Requirements of Law" means, as to any Person, the charter and by-laws or other
organization or governing documents of such Person, and any law, rule or
regulation, or determination of an arbitrator or a court or other Governmental
Authority, in each case applicable to or binding upon such Person or any of its
property or to which such Person or any of its property is subject, including,
without limitation, the Securities Act of 1933, the Securities Exchange Act of
1934, Regulations T, U and X, ERISA, the Fair Labor Standards Act, the Worker
Adjustment and Retraining Notification Act, Americans With Disabilities Act of
1990 and any certificate of occupancy, zoning ordinance, building,
environmental or land use requirement or permit or environmental, labor,
employment, occupational safety or health law, rule or regulation.

"Reserves" means any amount as Lender may deem proper and necessary, in its sole
good faith discretion, to establish reserves for the creditworthiness of any
Account Debtor, the payment of taxes or Contingent Liabilities, customer
advances and deposits, payment of interest, fees, and expenses payable under
this Agreement or any other agreement in favor of Lender, and such other
purposes as Lender may deem appropriate.

"Restricted Payment" means (i) any dividend or other distribution, direct or
indirect, on account of any shares of any class of capital stock or similar
ownership interest of a Borrower now or hereafter outstanding, (ii) any
redemption, retirement, sinking fund or similar payment, purchase or other
acquisition for value, direct or indirect, of any shares of any class of capital
stock or interest of a Borrower now or hereafter outstanding, (iii) any payment
made to redeem, purchase, repurchase or retire, or to obtain the surrender of,
any outstanding warrants, options or other rights to acquire membership
interests or units of the ownership interest of a Borrower or Parent Company now
or hereafter outstanding, and (iv) any payment or prepayment of principal,
premium, if any, or interest, fees or other charges on or with respect to, and
any redemption, purchase, retirement, defeasance, sinking fund or similar
payment and any claim to rescission with respect to, any Subordinated Debt.

"Revolving Credit Availability" means, at any particular time, the amount by
which the Revolving Credit Maximum Amount at such time exceeds the aggregate
Revolving Credit Obligations of the Borrowers outstanding at such time.

"Revolving Credit Maximum Amount" means at any particular time, the lesser of
(i) $7,000,000 and (ii) the combined Borrowing Base of the Borrowers in the
aggregate.

"Revolving Credit Obligations" means, at any particular time, the aggregate sum
of the outstanding principal amounts of the Loan.

                                      -14-

<PAGE>

"Revolving Loan Maturity Date" means December 11, 2004.

"Seller" means a Person in the business of originating or buying and selling
Financial Assets from whom any Borrower purchases Financial Assets.

"Solvent" means, with respect to any Person on a particular date, that such
Person is not insolvent (as such term is defined in the Uniform Fraudulent
Transfer Act, as amended from time to time).

"Subordinated Debt" means any Indebtedness incurred by a Borrower which is
subject to a debt subordination agreement or other subordination provisions in
favor of Lender, in all respects satisfactory to Lender in its sole discretion,
and approved by Lender in writing.

"Subsidiary" of a Person means any corporation, partnership, limited liability
company or other entity in which such Person directly or indirectly owns or
controls the securities or other ownership interests having ordinary voting
power to elect a majority of the board of directors, or appoint managers or
other persons performing similar functions.

"Total Liabilities" means, at the time of each determination, with respect to
any Person (a) all Indebtedness for borrowed money or for the deferred purchase
price of property or services, (b) any other Indebtedness which is evidenced by
a note, bond, debenture or similar instrument, (c) all obligations with respect
to any letter of credit issued for the account of such Person, (d) all
obligations in respect of acceptances issued or created for the account of such
Person, (e) Capital Lease obligations, (f) all liabilities (including lease
obligations) secured by any lien or encumbrance on any property owned by such
Person even though such Person has not assumed or otherwise become liable for
the payment thereof, (g) all obligations of such Person with respect to
interest rate protection agreements (valued at the termination value thereof
computed in accordance with a method approved by the International Swap Dealers
Association), and (h) all other obligations of any Borrower which, in accordance
with GAAP, would be classified upon a balance sheet as liabilities (except
capital stock and surplus earned).

"UCC" means the Ohio Uniform Commercial Code, as in effect from time to time;
provided, however, that, in the event that, by reason of mandatory provisions of
law, any of the attachment, perfection or priority of Lender's and Custodial
Agent's security interest in any Collateral is governed by the Uniform
Commercial Code as in effect in a jurisdiction other than the State of Ohio, the
term "UCC" shall mean the Uniform Commercial Code as in effect in such other
jurisdiction for purposes of the provisions hereof relating to such attachment,
perfection or priority and for purposes of definitions related to such
provisions.

"Voidable Transfer" is defined in Section 10.12.

1.2. Other Definitional Provisions and Construction.

     (a) Any terms used in this Agreement or in any Loan Document that are
defined in the UCC shall have the meanings given such terms therein, unless
otherwise defined herein.

     (b) Any accounting terms used in this Agreement or in any Loan Document and
not specifically defined herein shall be construed in accordance with the
respective meanings given to such terms under GAAP. When used herein, the term
"financial statements" shall include the notes and schedules thereto.

                                      -15-

<PAGE>

     (c) Unless the context of this Agreement or any other Loan Document clearly
requires otherwise, references to the plural include the singular, references to
the singular include the plural, and the term "including" is not limiting, the
words "hereof," "herein," "hereby," "hereunder," and similar terms in this
Agreement or any other Loan Document refer to this Agreement or such other Loan
Document, as the case may be, as a whole and not to any particular provision of
this Agreement or such other Loan Document, as the case may be. Any reference in
this Agreement or in the other Loan Documents to any agreement, instrument, or
document shall include all alterations, amendments, changes, extensions,
modifications, renewals, replacements, substitutions, joinders, and supplements,
thereto, and thereof as applicable. Any reference herein to any Person shall be
construed to include such Person's successors and assigns.

     (d) All of the schedules and exhibits attached to this Agreement shall be
deemed incorporated herein by reference.

2.   The Loan and Terms of Repayment.

     Lender, subject to the terms and conditions hereof, will extend credit to
the Borrowers, jointly and severally, based on each Borrower's Borrowing Base up
to the aggregate sum of $7,000,000 (the "Loan"). The Borrowers, jointly and
severally, unconditionally promise to pay when due the principal amount of the
Loan, all unpaid interest accrued thereon and all other Obligations incurred by
it, in accordance with the terms of this Agreement and the other Loan Documents.

2.1. The Loan and Borrowing Base.

     (a) The Revolving Credit Obligations of any Borrower at no time will exceed
such Borrower's Borrowing Base, and the Revolving Credit Obligations of the
Borrowers in the aggregate at no time will exceed the Revolving Credit Maximum
Amount. Lender, in its good faith discretion, reserves the right upon prior
written notice to any Borrower to increase or decrease the advance rate
percentages or the maximum amount advanced against the Eligible Financial
Assets, in each case, used in calculating the Borrowing Base.

     (b) Interest shall accrue on the unpaid balance of the Loan at an interest
rate per annum equal to ****. All interest accruing on the Loan shall be due and
payable in arrears on the first (1st) Business Day of each month, beginning on
January 2, 2003.

     (c) The principal sum and all obligations outstanding under the Loan shall
be due and payable in full on the earlier of the date that the Loan is due and
payable in full pursuant to the terms of this Agreement, whether by acceleration
or otherwise, or the Revolving Loan Maturity Date.

                                      -16-

<PAGE>

     (d) The Loan shall also be evidenced by a promissory note or by one or more
promissory notes executed in substitution therefore, substantially in the form
of Exhibit C attached hereto.

     (e) The net proceeds of the Loan will be used to satisfy existing
Indebtedness of the Borrowers, to fund the purchase of Financial Assets, to
provide for working capital requirements of the Borrowers, to make Permitted
Investments and for any other lawful purpose in the business of the Borrower.

2.2. Provisions Applicable to the Loan.

     (a) Upon the occurrence of any Event of Default, Lender, at its option,
may, to the extent not prohibited under applicable law: (i) increase the
applicable interest rate on all or any portion of the Loan to the Default Rate,
and (ii) add any unpaid accrued interest to principal, and such sum will bear
interest therefrom until paid at the rate provided for herein (including any
increased rate).

     (b) Interest, fees and other charges hereunder each shall be calculated on
a 360 day year basis and shall be based on the actual number of days which
elapse during the interest calculation period.

     (c) In no event whatsoever shall the interest rate and other charges
hereunder exceed the highest rate permissible under law which a court of
competent jurisdiction, in a final determination, shall deem applicable hereto.
In the event such a court determines that Lender has received interest or other
charges hereunder in excess of the highest rate applicable thereto, Lender shall
promptly refund such excess amount to the Borrowers, and the provisions hereof
shall be deemed amended to provide for such permissible rate.

     (d) Each of the Borrowers hereby irrevocably authorizes Lender to charge
any account of any Borrower or to add to the principal balance of the Loan an
amount to effect any payment of principal, interest, fees and commissions as the
same becomes due hereunder.

2.3. Pending Defaults.

     Lender shall have no obligation to advance or readvance any sums pursuant
to the Loan at any time when a set of facts or circumstances exists, which, upon
the giving of notice, the lapse of time, or both, would constitute an Event of
Default under this Agreement (a "Pending Default").

2.4. Reserves.

     Lender reserves the right to deduct from Revolving Credit Availability or
any advances to be made hereunder any Reserves.

2.5. Advance Request.

                                      -17-

<PAGE>

     Subject to the provisions of this Agreement, a Borrower may elect to
request an advance by giving notice thereof to Lender in writing in form set
forth in Exhibit D not later than 10:00 a.m., Columbus, Ohio time, two (2)
Business Days prior to the date any such advance is to be effective.

3.   Fees, Audits, Prepayments.

3.1. Fees.

     The Borrowers, jointly and severally, will pay to Lender:

     (a)  on the Closing Date, ****
     (b)  on each anniversary of the Agreement, ****.

3.2. Broker's and Finder's Fees.

     The parties hereto agree that the Borrowers will pay any and all broker's,
finder's or similar fees arising in connection with the transactions
contemplated under this Agreement. Further, each of the Borrowers and the
Guarantors hereby agrees to protect, defend, indemnify and hold harmless Lender
from and against any claim, action, or proceeding relating to the collection of
any broker's, finder's or other similar fees.

3.3. Collateral Audits, Appraisals.

     Lender shall have the right, in its sole good faith discretion, at any time
to conduct or to employ one or more outside audit firms or other professionals
to conduct audits of any Borrower and appraisals with respect to the Collateral
and business; provided, however, that if no Pending Default or Event of Default
shall have occurred hereunder, such appraisals or audits shall be conducted no
more frequently than once a quarter. In connection therewith, such Borrower
agrees to pay to Lender on demand (i) **** all out-of-pocket expenses of such
auditors, (ii) ****, plus an amount equal to all out-of-pocket expenses, for
each appraisal of the Collateral performed by personnel employed by Lender, and
(iii) the actual charges paid or incurred by Lender if Lender elects to employ
the services of one or more third Persons to perform financial audits of any
Borrower, to appraise the Collateral, or any portion thereof, or to assess any
Borrower's business valuation. If any Borrower fails to pay an amount due under
this Section 3.3 to Lender immediately upon demand, interest shall accrue
thereon from the date of demand until paid in full, at the highest rate set
forth in any document or instrument evidencing any of the Obligations.

3.4. Termination Fee.

                                      -18-

<PAGE>

     (a) In the event that the Borrowers cancel or terminate this Agreement and
pay in full all amounts outstanding hereunder prior to the Revolving Loan
Maturity Date, the Borrowers will, jointly and severally, pay to Lender, a
termination fee equal to (i) **** of the maximum stated principal amount of the
Loan if such cancellation or termination occurs on or before the first
anniversary of the Closing Date, and (ii) **** of the maximum stated principal
amount of the Loan if such cancellation or termination occurs after the first
anniversary of the Closing Date. Notwithstanding the foregoing, if an Event of
Default has occurred and is continuing at any time when the Borrowers cancel or
terminate this Agreement, the Borrowers jointly and severally agree to pay a
default termination fee equal to **** of the maximum stated principal amount of
the Loan. Notwithstanding the first sentence of this Section 3.4 (a). if the
Borrowers cancel or terminate this Agreement within 180 days of Lender reducing
the advance rate on Eligible Financial Assets **** from any Reserve in effect of
the time of such increase, then Lender will permit such cancellation or
termination without the payment of the fee described in clause (a) (i) or (a)
(ii) above.

     (b) If after the first anniversary of the Closing Date, the Borrowers
provide to Lender an unconditional (other than subject to customary closing
conditions) loan commitment for a credit facility that **** from a reputable
bank or finance company, Lender shall have the right of first refusal to provide
a commitment to the Borrowers in such amount on substantially similar terms and
will have the right to participate with such lender (if agreed to by such other
lender) in such credit facility in a principal amount of **** or such other
amount as Lender shall agree. Lender shall exercise its right of first refusal
within a reasonable period of time (to provide for due diligence and credit
approval, among other items) after Lender has been presented with such
commitment or such right shall be deemed waived by Lender, and Borrower shall
be, thereafter, permitted to consummate the financing with such replacement
lender. If Lender declines to exercise any such right of first refusal or to
participate (or waives the same and no Event of Default has occurred and is
continuing hereunder), Borrower shall not be obligated to pay to Lender the ****
termination fee described in clause (a)(ii) above.

     (c) In view of the impracticality and difficulty of ascertaining actual
damages and by mutual agreement of the parties as to a reasonable calculation of
lost profits of Lender as a result of an early cancellation or termination.
Borrowers hereby agree to pay to Lender the applicable termination fee or
default termination in accordance with this Section 3.4. Such fees shall be
presumed to be the amount of damages sustained by Lender as a result of such
early termination or cancellation, and Borrowers agree that such amount is
reasonable under the circumstances.

3.5. Prepayment and Prepayment Notice.

     (a) The Borrowers shall have the option at all times to permanently cancel
or prepay the Loan, in whole or in part, by providing to Lender sixty (60) days
prior written notice of the effective date and amount of such cancellation or
prepayment, subject to the

                                      -19-

<PAGE>

terms and conditions of this paragraph. In addition, on the effective date
of any such cancellation or prepayment of any portion of the Loan prior to the
Revolving Loan Maturity Date, the Borrowers will pay to Lender the amount of
such cancellation or prepayment and the applicable termination fee set forth in
Section 3.4.

     (b) The Borrowers agree that the applicable termination fee shall be due
and payable to Lender regardless of whether the prepayment results from a
Borrower's voluntary prepayment or from Lender's exercise of its rights after an
Event of Default, acceleration or otherwise.

3.6. Mandatory Prepayment or Reduction.

     (a) If at any time the Revolving Credit Obligations (i) of any Borrower
exceed such Borrower's Borrowing Base or (ii) of the Borrowers in the aggregate
exceed the Revolving Credit Maximum Amount, then the Borrowers will immediately
pay to Lender such difference, which shall be applied to the Loan.

     (b) Immediately after the receipt of any Net Cash Proceeds on account of
(i) the sale, assignment or other disposition of property or assets, other than
sales in accordance with clauses (ii) and (iii) of the definition of Permitted
Dispositions and sales permitted by Section 7.9 below, **** or (ii) the loss of
or damage to, or taking by condemnation or eminent domain of, all or any portion
of property or assets of a Borrower, such Borrower shall make or cause to be
made a mandatory prepayment of the Loan in an amount equal to ***, except to the
extent that no Event of Default has occurred and is continuing, and such
Borrower shall have replaced such property using such Net Cash Proceeds within
180 days after the receipt thereof, and shall have provided, to Lender's
satisfaction, evidence of the same.

     (c) Immediately after the receipt of any Net Cash Proceeds from the
issuance of stock, membership interest or units or from any other additions to
the equity of or any contributions to the capital of any Borrower or Parent
Company, the Borrowers will make or cause to be made a mandatory prepayment of
the Loan in an amount equal to 100% of such Net Cash Proceeds.

     (d) Immediately after the receipt of any Net Cash Proceeds from the
issuance of Indebtedness, other than Permitted Purchase Money Indebtedness
permitted pursuant to Section 7.11 below and Indebtedness related to the
Approved Subordinated Debt Issuance, the Borrowers will make or cause to be made
a mandatory prepayment of the Loan in an amount equal to ****.

     (e) Nothing in this Section 3.6 shall be construed to constitute Lender's
consent to any transaction which is not expressly permitted by Article 7.

     (f) On the date any mandatory prepayment is received by Lender pursuant to
clause (b), (c) or (d) above (each such payment being a "Designated
Prepayment"), such

                                      -20-

<PAGE>

Designated Prepayment shall be allocated and applied, in the sole discretion of
Lender, to the repayment of the Loan.

3.7. Guarantors.

     The Guarantors shall each at all times guaranty the prompt and full payment
of the Loan, subject to the terms of the Guaranty.

3.8. Additional Security.

     In addition to the Collateral securing the Loan, on or prior to the date
hereof as collateral security for the Loan and the respective Guaranties, GLCA
will grant to Lender a first priority security interest and assignment in all
present and future membership interests of GL Funding; Parent Company will grant
to Lender a first priority pledge and security agreement in all of the
membership interests of GLCA; and George Luburich, II will cause the George
Luburich II Revocable Trust to grant to Lender a first priority pledge and
security agreement in all of the capital stock of Parent Company. The security
interests or assignment interests described in this Section 3.8 shall secure the
prompt and full payment and complete performance of the Obligations to Lender,
it being understood that the granting of such security for the Loan is a
material inducement to the execution and delivery of this Agreement by Lender.

4.   Security Agreement.

4.1. Grant of Security Interest.

     To secure the prompt payment and performance to Lender of the Obligations
and each covenant and duty under the Loan Documents, each Borrower hereby
grants, pledges, conveys and assigns to Lender continuing security interests in
and liens upon all of such Borrower's right, title and interest in all currently
existing and hereafter acquired Collateral. The absence of any reference to this
Agreement in any documents, instruments or agreements evidencing or relating to
any Obligation secured hereby shall not limit or be construed to limit the scope
or applicability of this Agreement.

4.2. Dominion of Funds Agreements and Collection of Receivables.

     (a) Each Borrower will request in writing and otherwise use its best
efforts to ensure that each Account Debtor forwards payment of the amounts owed
directly to a lockbox account or arrangement satisfactory to Lender, and each
Borrower shall execute one or more blocked account agreements, control
agreements or lockbox agreements, each in form and substance satisfactory to
Lender (the "Dominion of Funds Agreements"). The Dominion of Funds Agreements
will provide, among other things, that (i) all items of payment must be
deposited in the Cash Collateral Account and proceeds thereof are held by the
deposit bank as agent or bailee-in-possession for Lender, (ii) the deposit bank
has no rights of setoff or recoupment or any other claim against the applicable
depositary account or Cash Collateral Account, other than for payment of its

                                      -21-

<PAGE>

service fees and other charges directly related to the administration of such
account and lockbox services and for returned checks or other items of payment,
and (iii) the deposit bank transfer on a daily basis by automated clearing house
transaction, wire transfer or other electronic transfer all collected funds in
the applicable depositary account or Cash Collateral Account to a designated
account owned and controlled by Lender.

     (b) Beginning on the date of this Agreement and continuing at all times
thereafter, each Borrower will notify all Account Debtors to remit payments to
the address specified in the respective Dominion of Funds Agreements, and all
invoices rendered after the date hereof shall bear such address. Lender, at any
time after the occurrence and during the continuance of a Pending Default or an
Event of Default, may notify Account Debtors that Collateral has been assigned
to Lender and shall be paid to Lender through the applicable depositary account.
Cash Collateral Account or otherwise. Upon request of Lender at any time after
the occurrence and during the continuance of a Pending Default or an Event of
Default, each Borrower agrees to notify such Account Debtors and indicate on all
billings that the accounts are payable directly to Lender at an address provided
by Lender.

4.3. Dominion of Funds.

     All collections through the lockbox arrangement shall be deposited into a
Cash Collateral Account. If any Borrower makes collections on any of the
Collateral, it shall hold such collections in trust for Lender or the proceeds
received therefrom and turn over all checks, drafts, cash and other remittances
and proceeds each Business Day to be deposited in the Cash Collateral Account.
All collected funds in the Cash Collateral Accounts on a daily basis will be
transferred by means of ACH transfer, wire transfer or other electronic transfer
to a designated account in Lender's name and under its sole dominion and control
("Lender's Account"). Provided that no Pending Default or Event of Default has
occurred and is continuing or will occur as the result of such transfer, two (2)
Business Days after written request of GLCA, **** which account shall be pledged
to Lender and subject to a control agreement in favor of Lender. Lender shall
have the right to withdraw funds from any Cash Collateral Account to pay any
portion of unpaid fees and expenses due to Lender and to reduce the outstanding
principal balance under the Loan to an amount that does not exceed the Borrowing
Base.

4.4. No Duty.

     Lender shall have no duty as to the collection or protection of Collateral
or any income therefrom, nor as to the preservation of rights against prior
parties, nor as to the preservation of any right pertaining thereto, beyond the
safe custody of any Collateral in the possession of Lender.

4.5. Financing Statements; Control Agreements; After-Acquired Property.

                                      -22-

<PAGE>

     At any time, at the request of Lender, each Borrower agrees to execute and
deliver any and all financing statements, original statements in lieu of
continuation statements, fixture filings, security agreements, collateral
assignments, mortgages, deeds of trust, pledges, assignments, endorsements of
certificates of title, and all other documents (the "Attendant Collateral
Documents") that Lender may request in its sole good faith discretion, in form
and substance satisfactory to Lender, to perfect or continue perfection Lender's
Liens in the Collateral (whether now owned or hereafter arising or acquired),
and to fully consummate all of the transactions contemplated hereby and under
the other Loan Documents; provided, such Attendant Collateral Documents are
consistent with the provisions of this Agreement. To the maximum extent
permitted by applicable law, each Borrower authorizes Lender to execute any such
Attendant Collateral Documents in such Borrower's name and authorizes Lender to
file such executed Attendant Collateral Documents in any appropriate filing
office. In addition, upon Lender's request, each Borrower shall (a) provide
Lender with a report of all new patentable, copyrightable, or trademarkable
property acquired or generated by any Borrower, (b) cause all patents,
copyrights, and trademarks acquired or generated by any Borrower that are not
already the subject of a registration with the appropriate filing office (or an
application therefor diligently prosecuted) to be registered with such
appropriate filing office in a manner sufficient to provide constructive notice
of such Borrower's ownership thereof, and (c) cause to be prepared, executed,
and delivered to Lender supplemental schedules to the applicable Loan Documents
to identify such patents, copyrights, and trademarks as being subject to the
security interests created thereunder. Each Borrower agrees to pay the cost of
filing the same in all public offices wherever filing is deemed by Lender to be
necessary or desirable. Each Borrower hereby authorizes Lender to file any
Attendant Collateral Documents describing the Collateral, and any necessary
future amendments thereto, in any and all public offices in which Lender deems
such filing to be necessary or desirable. Each Borrower agrees to cooperate with
Lender in Lender's obtaining control with respect to Collateral consisting of
deposit accounts, investment property, letter of credit rights, electronic
chattel paper and any other Collateral with respect to which perfection of a
security interest therein may be obtained by control.

4.6. Lender's Appointment as Attorney-in-Fact.

     Each Borrower hereby irrevocably constitutes and appoints Lender (and any
officer, employee or agent thereof, with full power of substitution, as such
Borrower's true and lawful attorney-in-fact with full irrevocable power and
authority, for the purpose of carrying out the terms of this Agreement, to take
any and all appropriate action and to execute any and all Attendant Collateral
Documents or any documents and instruments that may be necessary or desirable to
accomplish the purposes of this Agreement and, without limiting the generality
of the foregoing, hereby grants to Lender the power and right, on behalf of such
Borrower, without notice to or assent: (a) to execute, file and record all such
financing statements, certificates of title and other certificates of
registration and operation and similar documents and instruments as Lender may
deem necessary or desirable to protect, perfect and validate Lender's security
interest in the Collateral; (b) to receive, collect, take, indorse, sign, and
deliver in such Borrower's or Lender's name, any and all checks, notes, drafts,
or other documents or instruments

                                      -23-

<PAGE>

relating to the Collateral; and (c) upon the occurrence and during the
continuance of an Event of Default, (i) to notify postal authorities to change
the address for delivery of such Borrower's mail to an address designated by
Lender, (ii) to open such mail delivered to the designated address, (iii) to
sign or indorse any invoices, freight or express bills, bills of lading, storage
or warehouse receipts, drafts against debtors, assignments, verifications and
notices to Account Debtors or in connection with accounts and other documents
relating to the Collateral, (iv) to commence and prosecute any suits, actions or
proceedings at law or in equity in any court of competent jurisdiction to
collect the Collateral or any part thereof and to enforce any other right in
respect of any Collateral, (v) to settle, make and adjust all claims under such
Borrower's policies of insurance, (vi) to negotiate, settle, compromise or
adjust any Account, chattel paper or General Intangible, and (vii) generally, to
sell, transfer, pledge, make any agreement with respect to or otherwise deal
with any of the Collateral as fully and completely as though Lender were the
absolute owner thereof for all purposes, and to do, at Lender's option, at any
time or from time to time, all acts and things which Lender deems necessary to
protect, preserve or realize upon the Collateral and Lender's security interest
therein, in order to effect the intent of this Agreement to the extent permitted
by applicable law. If Lender shall incur any cost or expense in exercising any
power and right granted to it under this Section 4.6, and should such Borrower
not immediately reimburse Lender for such amounts upon demand, interest shall
accrue thereon, from the date of demand until paid in full, at the highest rate
set forth in any document or instrument evidencing any of the Obligations. This
power of attorney is a power coupled with an interest and shall be irrevocable
until all of the Obligations have been fully and finally repaid and performed
and Lender's obligations to extend credit hereunder are terminated. The powers
conferred upon Lender hereunder are solely to protect its interests in the
Collateral and shall not impose any duty upon Lender to exercise any such
powers. Lender shall be accountable only for amounts that Lender actually
receives as a result of the exercise of such powers and neither Lender nor any
of its officers, directors, employees or agents shall be responsible to any
Borrower for any act or failure to act, except for Lender's own gross negligence
or willful misconduct, as determined by a final non-appealable judgment by a
court of competent jurisdiction.

4.7. Right to Inspect.

     During normal business hours and after giving reasonable advance notice,
Lender (through any of its respective officers, employees, or agents) shall have
the right, from time to time hereafter, to inspect any Borrower's books and
records and to check, test, and appraise the Collateral in order to verify such
Borrower's financial condition or the amount, quality, value, condition of, or
any other matter relating to, the Collateral.

4.8. Control Agreements.

     No arrangement contemplated hereby or by any control agreement in respect
of any securities accounts or other Investment Property shall be modified by any
Borrower without the prior written consent of Lender. Upon the occurrence and
during the continuance of a Pending Default or Event of Default, Lender may
notify any securities

                                      -24-

<PAGE>

intermediary to liquidate the applicable securities account or any related
Investment Property maintained or held thereby and remit the proceeds thereof to
the Cash Collateral Account or to any account established by Lender.

4.9. Delivery and Delivery of Collateral to Effect Sale.

     Borrowers shall deliver to Lender or the Custodial Agent all of the
Lender's Mortgage File and all original instruments, chattel paper, and other
documents evidencing Financial Assets (i) prior to any advance request under the
Loan if the Borrowers have insufficient Revolving Credit Availability to make
such advance, or (ii) within one (1) Business Day of Borrower's receipt of same
if the Borrowers have sufficient Revolving Credit Availability for such advance.
Each Borrower hereby agrees that Lender shall have the right to direct or
redirect the delivery of all or any of the Collateral to any other designee. In
the event that any Borrower desires to sell any Financial Assets to a purchaser,
such Borrower shall deliver to Lender a notice of such proposed sale together
with a properly executed Bailee Letter signed by any prospective purchaser and
any financial or other information that such Borrower possesses in respect of
such purchaser, and such Borrower's certification that the proposed sale is in
accordance with the Borrowers' policy and procedure manual. Within two Business
Days after receipt of such notice, an executed Bailee Letter and any other
documents, agreements or assurances as Lender shall require, Lender shall direct
the Custodial Agent to deliver the Mortgage File subject to such proposed sale
to such prospective purchaser's address set forth on the notice of proposed
sale. If full payment for such purchase for such Financial Assets is not
received by Lender within two Business Days after such Mortgage File was
delivered to such purchaser, such Borrower shal1 cause such purchaser
immediately to return such Mortgage File to the Custodial Agent or Lender's
designee by way of a nationally recognized overnight express service.

4.10. Release Upon Payment.

     Upon undefeasible payment in full of the Obligations secured hereby, Lender
agrees to release all Collateral from the security interest. Liens and pledges
secured hereby, such releases to be prepared by Lender and delivered to GLCA for
filing by GLCA (at Borrowers' sole expense) within a reasonable time after
payment of the Obligations.

5.   Conditions Precedent.

5.1. Conditions Precedent to Initial Advance.

     This Agreement shall become effective, and Lender shall be obligated to
make the initial advance hereunder only after Lender shall have received from
the Borrowers each of following items in form and substance satisfactory to
Lender: This Agreement, the promissory note and other agreements, the legal
opinion of each Borrower's counsel, documents and instruments described in
Schedule 5.1 attached hereto, a current Borrowing Base certificate on the form
set forth in Exhibit D, each duly executed where

                                      -25-

<PAGE>

appropriate and in form and substance satisfactory to Lender; the fulfillment of
all the conditions described thereon and the delivery of such additional
documentation as Lender may reasonably request.

5.2. Conditions Precedent to Subsequent Advances.

     Lender shall not be required to make any disbursement or advance subsequent
to the initial disbursement or initial advance under the Loan, unless on the
applicable date that each such advance is to be made:

     (a) The warranties and representations set forth in Article 6 hereof and
each of the representations and warranties contained in any Loan Document at any
time pursuant to this Agreement shall be true and correct in all material
respects on and as of such date with the same effect as though such warranty or
representation had been made on and as of such date, except to the extent that
such warranty or representation is stated to expressly relate solely to an
earlier date;

     (b) Each Borrower shall have complied and shall then be in compliance with
all the terms, covenants and conditions of this Agreement which are binding upon
it, and no Event of Default or Pending Default shall have occurred and be
continuing on such date or after giving effect to the advances requested to be
made;

     (c) No Material Adverse Effect shall have occurred; and

     (d) Each Borrower shall have delivered to Lender a current Borrowing Base
certificate in the form set forth in Exhibit D.

Each request for an advance hereunder shall constitute a warranty and
representation by the Borrower making such request that each of the conditions
contained in Sections 5.2 (a), (b), (c) and (d) have been satisfied.

6.   Warranties and Representations.

     In order to induce Lender to enter into this Agreement and to extend the
Loan and to make the other financial accommodations to the Borrowers, each
Borrower represents and warrants to Lender that each of the following statements
is true and correct:

6.1. Organization and Authority.

     (a) Each Borrower (a) is a limited liability company duly organized,
validly existing and in full force and effect under the laws of the jurisdiction
of its organization; (b) has all requisite power and authority and all necessary
licenses and permits to own and operate its properties and to carry on its
business as now conducted and as presently proposed to be conducted; and (c) is
not doing business or conducting any activity in any jurisdiction in which it is
not duly qualified and authorized to do business, except where the failure to do
so will not have a Material Adverse Effect.

                                      -26-

<PAGE>

     (b) Schedule 6.1 attached hereto accurately represents as of the Closing
Date to Lender the following: (a) the classes of membership interests or units
of each Borrower, all as authorized by such Borrower's Articles of Organization,
(b) the number of membership interests or units of each such class of membership
interests or units issued and outstanding, (c) the registered owner or holder
(legally or beneficially) thereof, (d) the certificate numbers evidencing the
foregoing, if such membership interests or units are certificated, (e) such
Borrower's employer tax identification number, and (f) such Borrower's
jurisdiction of organization. All membership interests or units of all classes
of membership interests or units issued are fully paid and non-assessable. Such
Borrower does not have outstanding any other membership interests or units or
other equity security, or any other instrument convertible to an equity security
of such Borrower, or any commitment, understanding, agreement or arrangement to
issue, sell or have outstanding any of the foregoing.

6.2. Borrowing is Legal and Authorized.

     All necessary limited liability company action has been taken in order to
duly authorize each Borrower's execution and delivery of this Agreement and the
other Loan Documents; (a) this Agreement and the other Loan Documents constitute
valid and binding obligations enforceable in accordance with their respective
terms; (b) the execution of this Agreement and the other Loan Documents and the
compliance with all the provisions of the Loan Documents (i) are within the
organizational powers of each Borrower, and (ii) will not conflict with, result
in any breach in any of the provisions of, constitute a default under, or result
in the creation of any Lien (other than a Permitted Lien) upon any property of
any Borrower under the provisions of any agreement, charter instrument, bylaw,
or other instrument to which any Borrower is a party or by which it may be
bound; and (c) there are no limitations in any indenture, contract, agreement,
mortgage, deed of trust or other agreement or instrument to which any Borrower
is now a party or by which any Borrower may be bound with respect to the payment
of any Indebtedness, or, to the extent applicable, the ability of any Borrower
to incur Indebtedness, including any agreements or instruments to be executed in
connection with this Agreement.

6.3. Margin Loans and Purchase of Ineligible Securities.

     None of the transactions contemplated in this Agreement will violate or
result in a violation of Section 7 of the Securities Exchange Act of 1934, as
amended, or any regulation issued pursuant thereto, including, without
limitation, Regulation U of the Board of Governors of the Federal Reserve
System, 12 C.F.R., Chapter II. No Borrower owns or intends to carry or purchase
any "margin security" within the meaning of said Regulation U. None of the
proceeds of the Loan have been or will be used to purchase or refinance any
borrowing, the proceeds of which were used to purchase any "security" within the
meaning of the Securities Exchange Act of 1934, as amended from time to time.
Each Borrower represents and warrants that no portion of the Loan made hereunder
shall be used directly or indirectly to purchase ineligible securities, as
defined by

                                      -27-

<PAGE>

applicable regulations of the Federal Reserve Board, underwritten by any
affiliate of Lender during the underwriting period and for thirty (30) days
thereafter.

6.4. Taxes.

     All tax returns and reports required to be filed by any Borrower in any
jurisdiction have been filed, and all taxes, assessments, fees and other
governmental charges upon any Borrower and upon any property, assets, income and
franchises thereof, which are shown in such returns or reports to be due and
payable have been paid, except for Permitted Contests. Except as set forth on
Schedule 6.4 attached hereto, no Borrower knows of any proposed additional tax
assessment against it. The accruals for taxes on the books of each Borrower for
the current fiscal period have been determined in accordance with GAAP,
consistently applied, subject to year-end and audit adjustments.

6.5. Compliance with Law.

     (a) Each Borrower (a) is not in violation of any Requirements of Law or the
Consumer Finance Laws, and (b) other than with respect to Licenses (as defined
below) has not failed to obtain any licenses, permits, franchises or other
governmental or environmental authorizations necessary to the ownership of such
Borrower's properties or to the conduct of its business, in each case which
violation or failure is reasonably likely to have a Material Adverse Effect.

     (b) With respect to all applications and requirements for Licenses for any
ownership, acquisition, sale or other disposition, servicing, or collection of
any Financial Asset or mortgage, each Borrower has applied for or obtained and
is maintaining such License (or application) in compliance with Section 7.22 of
this Agreement.

6.6. Financial Statements; Full Disclosure.

     The financial statements of the Borrowers for the fiscal year ending
December 31, 2001, which have been supplied to Lender, have been prepared in
accordance with GAAP and fairly represent each Borrower's financial condition as
of such date. The interim financial statements of each Borrower for the period
ending October 31, 2002, respectively which have been supplied to Lender have
been prepared in good faith and accurately represent each Borrower's financial
condition as of the dates of such financial information, subject to year-end and
audit adjustments. None of the financial information referred to in this Section
and none of the written statements furnished by any Borrower to Lender in
connection with obtaining the Loan, taken as a whole, contain any untrue
statement of a material fact or omit a material fact necessary to make the
statements contained therein or herein not misleading. Each Borrower has
disclosed to Lender in writing all facts, including without limitation, all
pending or threatened claims or litigation, which are reasonably likely to have
a Material Adverse Effect. No Borrower knows of any fact or circumstances
existing which has had, shall have or is reasonably likely to have a Material
Adverse Effect.

                                      -28-

<PAGE>

6.7. Litigation; Adverse Effects.

     Schedule 6.7 attached hereto contains a description as of the date hereof
of all pending or, to the knowledge of each Borrower, threatened claims
involving individual claims against any Borrower in ****. There is no action,
suit, audit, proceeding, investigation or arbitration (or series of related
actions, suits, proceedings, investigations or arbitrations) pending before or
by any Governmental Authority or private arbitrator or, to the best knowledge of
each Borrower, threatened against such Borrower or any property thereof (i)
challenging the validity or the enforceability of any provision of this
Agreement, or any other Loan Document, or (ii) which has had, shall have or is
reasonably likely to have a Material Adverse Effect. No Borrower is subject to
or in default with respect to any final judgment, writ, injunction, restraining
order or order of any nature, decree, rule or regulation of any court or
Governmental Authority, which individually or in the aggregate shall have or is
likely to have a Material Adverse Effect.

6.8. Labor Matters.

     Except as set forth in Schedule 6.8 attached hereto, there is no collective
bargaining agreement covering any of the employees of any Borrower; and no labor
disputes (other than grievances arising in the ordinary course of business),
strikes or walkouts affecting the operations of such Borrower, are pending, or,
to the knowledge of such Borrower, threatened, planned or contemplated.

6.9. Solvency.

     After giving effect to all Indebtedness of each Borrower on the date of the
Closing Date (including without limitation all amounts advanced under the Loan
and all Contingent Obligations) and such other dates as advances are requested
under the Loan, each Borrower is Solvent.

6.10. Government Consent.

     Neither the nature of any Borrower or of the business or properties, nor
any relationship between any Borrower and any other entity or person, nor any
circumstance in connection with the execution of this Agreement, is such as to
require a consent, approval or authorization of, or filing, registration or
qualification with, any Governmental Authority on the part of any Borrower as a
condition in the execution and delivery of this Agreement and the notes and
documents contemplated herein.

6.11. No Liens.

     Each Borrower (a) has indefeasible title to all personal and Real Property
in which it has an interest, free from any Liens, except Permitted Liens, and
(b) has not agreed or consented to cause or permit in the future (upon the
happening of a contingency

                                      -29-

<PAGE>

or otherwise) any of its property whether now owned or hereafter acquired to
be subject to a Lien, except Permitted Liens.

6.12. Indebtedness.

     As of the Closing Date, set forth on Schedule 6.12 is a true and complete
schedule of each Borrower's Indebtedness (other than Indebtedness to be paid
with the initial advance of the Loan). No Borrower has incurred any Indebtedness
other than Indebtedness permitted under this Agreement.

6.13. No Defaults.

     No event has occurred and no condition exists which would constitute a
Pending Default or an Event of Default pursuant to this Agreement. No Borrower
is in violation in any respect of any term of any agreement, charter instrument,
bylaw or other instrument to which it is a party or by which it may be bound
which violation is reasonably likely to have a Material Adverse Effect.

6.14. Environmental Protection.

     Each Borrower (a) has no actual knowledge of the permanent placement,
burial or disposal of any Hazardous Materials on Real Property, of any spills,
releases, discharges, leaks, or disposal of Hazardous Materials that have
occurred or are presently occurring on, under, or onto the Real Property, or of
any spills, releases, discharges, leaks or disposal of Hazardous Materials that
have occurred or are occurring off the Real Property as a result of the
improvement, operation, or use of the Real Property which would result in
non-compliance with any of the Environmental Laws; (b) to the best of its
knowledge, is in compliance with all applicable Environmental Laws; (c) knows of
no pending or threatened environmental civil, criminal or administrative
proceedings against such Borrower relating to Hazardous Materials; (d) knows of
no facts or circumstances that would give rise to any future civil, criminal or
administrative proceeding against such Borrower relating to Hazardous Materials;
and (e) has not permitted any of its employees, agents, contractors,
subcontractors, or any other person occupying or present on the Real Property to
generate, manufacture, store, dispose or release on, about or under the Real
Property any Hazardous Materials which would result in the Real Property not
complying with the Environmental Laws and which would give rise to a an
obligation to take a Remedial Action of such Borrower which would have a
Material Adverse Effect.

6.15. Regarding the Financial Assets and Locations.

     To the best knowledge of each Borrower, (a) each Financial Asset is a bona
fide and genuine obligation, and the Account Debtors unconditionally owe and are
obligated to pay the full amounts reflected therein according to the terms
thereof without any defense, offset or counterclaim; (b) all documents to be
given to Lender with respect to such Financial Asset are genuine; (c) to the
best of such Borrower's knowledge, pursuant to its customary credit
investigation in the ordinary course of business as of the date each

                                      -30-

<PAGE>

account is created, each of the Account Debtors is Solvent, or with respect to
any Account Debtors who are not Solvent, such Borrower has set up on its books
and in its financial records bad debt reserves adequate to cover such accounts;
(d) each of the Financial Assets referenced on each Borrower's most recent
borrowing base certificate against which each Borrower has requested an advance
under the Loan is an Eligible Financial Asset; (e) the Collateral is located
only at the locations identified in Schedule 6.15 attached hereto; (f) each
Borrower keeps correct and accurate records itemizing and describing the type,
quality and quantity of its Inventory and Equipment and the book value thereof;
(g) each Financial Asset owned by a Borrower complies fully with such Borrower's
written policies and procedure manual in effect from time to time, and (h) each
Account Debtor on each Financial Asset has been notified to make all payments to
the lockbox address specified in the Dominion of Funds Agreements.

6.16. Intellectual Property.

     Each Borrower owns or has the legal and valid right to use all Intellectual
Property necessary for the present and planned operation of its business without
any known conflict with the rights of others, free from any lien or encumbrance,
other than Permitted Liens and free of any restrictions material to the
operation of its business as presently conducted. Except as set forth in
Schedule 6.16 attached hereto, each Borrower (a) has no registered Intellectual
Property, (b) as licensor, licenses no registered Intellectual Property, and (c)
to the best of its knowledge, is not a party to any material license agreement
with respect to any registered Intellectual Property, other than with respect to
software available from multiple vendors.

7.   Affirmative and Negative Covenants.

     Each Borrower covenants that on and after the date of this Agreement until
terminated pursuant to the terms of this Agreement, or so long as any
Indebtedness provided for herein remains unpaid:

7.1. Payment of Taxes and Claims.

     Each Borrower will pay (a) all taxes, estimated payments, assessments and
governmental charges or levies imposed upon it or its property or assets or in
respect of any of its franchises, businesses, income or property when due
(except to the extent payment may be withheld or conditioned in connection with
a Permitted Contest); and (b) all claims of materialmen, mechanics, carriers,
warehousemen, landlords, bailees and other like persons, (including, without
limitation, claims for labor, services, materials and supplies) for sums which
have become due and payable and which by law have or may become a Lien upon any
Borrower's property or assets, other than for Permitted Contests.

7.2. Collateral Insurance.

     Each Borrower shall have and maintain insurance at all times with respect
to all Inventory and Equipment insuring against risks of fire (including
so-called extended

                                      -31-

<PAGE>

coverage), explosion, theft, sprinkler leakage and such other casualties as
Lender may reasonably require, including, without limitation, hazard and
liability insurance, containing such terms, in such form, for such amounts, for
such periods and written by such insurance companies as are substantially
similar to that reflected on the insurance certificate submitted to Lender on or
before the Closing Date, and each such policy shall (i) contain a clause or
endorsement satisfactory to Lender that names Lender as lender loss payee, as
its interests may appear, (ii) provide that no act, default or breach of
warranty or condition of the insured or any other person shall affect the right
of Lender to recover under such policy or policies of insurance or to pay any
premium in whole or in part relating thereto, and (iii) provide for thirty (30)
days' written minimum notice of cancellation or alteration to Lender. Each
Borrower shall deliver to Lender evidence of the payment of all premiums of all
policies of insurance. In the event of failure to provide insurance as provided
herein or in Section 7.4 below, Lender may, at its option, provide such
insurance, and each Borrower shall pay to Lender, upon demand, the cost thereof.
Should said sum not be paid to Lender upon demand, interest shall accrue thereon
from the date of demand until paid in full at the highest rate set forth in any
document or instrument evidencing any of the Obligations.

7.3. Place of Business; Books and Records.

     (a) Each Borrower shall (i) maintain the same principal place of business
and chief executive office in existence as of the Closing Date of this
Agreement; (ii) deliver to Lender at least thirty (30) days prior to the
occurrence of any of the following events, written notice of such impending
events: (A) a change in the principal place of business or chief executive
office, (B) the opening or closing of any place of business, or (C) a change in
name, identity or structure; and (iii) remain organized in the state of its
organization as of the Closing Date of this Agreement.

     (b) Each Borrower shall (i) at all times keep accurate and complete records
of the Collateral in accordance with GAAP, including without limitation, a
perpetual inventory and complete and accurate stock records, and at all
reasonable times and from time to time, shall allow Lender, by or through any of
its officers, agents, attorneys or accountants, to examine, inspect and make
extracts from such books and records and to arrange for verification of the
Collateral directly with Account Debtors or by other methods and to examine and
inspect the Collateral wherever located; (ii) provide Lender, or Lender's
designee or bailee, original copies of the agreements with the Account Debtors,
and such other documentation and information relating to the Collateral as
Lender may require, and (iii) keep the records concerning the Collateral at its
principal place of business and chief executive office as of the effective date
of this Agreement unless Lender shall give its prior written consent otherwise.

7.4. Maintenance; Collateral Covenants.

     (a) Each Borrower shall (i) maintain its property in a condition comparable
to that on the date hereof, except for normal wear and tear and routine
maintenance and obsolescence in the ordinary course of business and make all
renewals, replacements,

                                      -32-

<PAGE>

additions, betterments and improvements thereto which Lender deems necessary;
(ii) maintain, with financially sound and reputable insurers, insurance with
respect to its properties and business against such casualties and
contingencies, of such types (including fire and casualty, public liability,
products liability, larceny, embezzlement, or other criminal misappropriation
insurance) and in such amounts as is customary in the case of entities of
established reputations engaged in the same or a similar business and similarly
situated, with each such policy of insurance containing a clause or endorsement
satisfactory to Lender that names Lender as loss payee or additional insured, as
its interest may appear, and that provides that no act, default or breach of
warranty or condition of any Borrower or any other person shall affect the right
of Lender to recover under such policy or policies of insurance or to pay any
premium in whole or in part relating thereto, in such amounts as is customary in
the case of entities of established reputations engaged in the same or a similar
business and similarly situated; (iii) reflect in its financial statements
adequate accruals and appropriations to reserves and keep and maintain proper
books of record and account in which entries in conformity with GAAP shall be
made of all dealings and transactions in relation to its businesses and
activities, including, without limitation, transactions and other dealings with
respect to the Collateral; (iv) do or cause to be done all things reasonably
necessary (A) to preserve and keep in full force and effect its existence,
rights and franchises, and (B) to maintain its status as duly organized and
existing, and in good standing, under the laws of the state of its organization;
(v) conduct continuously and operate actively its business and take all actions
reasonably necessary to enforce and protect the validity of any Intellectual
Property material to such Borrower's business; (vi) not be in violation of any
Requirements of Law or Consumer Finance Laws, which violation is reasonably
likely to have a Material Adverse Effect; (vii) obtain no later than February
11, 2003, and thereafter maintain a Key Man Life Insurance Policy satisfactory
to Lender in an amount not less than $2,000,000 on the life of George Luburich,
II, which shall be collaterally assigned to Lender; and (viii) maintain and
update such Borrower's policies and procedure manual in accordance with
applicable Requirements of Law and Consumer Finance Laws.

     (b) Each Borrower shall (i) defend the right, title and interest of Lender
in and to the Collateral against all claims and demands of all persons and
entities at any time claiming the same or any interest therein; (ii) promptly
perform, on request of Lender, such acts as Lender may determine to be
reasonably necessary or advisable to create, perfect, maintain, preserve,
protect and continue the perfection of any Lien provided for in this Agreement
or otherwise to carry out the intent of this Agreement; (iii) (A) use its best
efforts to obtain, prior to the placement of any Collateral in or upon any
leased Real Property, a waiver from the lessor with respect to the rights
(whether present or future) of the lessor with respect to that Collateral, (B)
advise Lender promptly, in writing and in reasonable detail of any material
encumbrance or claim asserted against any of the Collateral, of any material
change in the composition of the Collateral, and of the occurrence of any other
event that would have a material adverse effect upon the aggregate value of the
Collateral or upon the security interest of Lender, and (C) keep the Collateral
in good condition and shall not misuse, abuse, secrete, waste or destroy any of
the same; and (iv) maintain no other place of business or place where Collateral
is

                                      -33-

<PAGE>

located, except as shown in Schedule 6.15 attached hereto, or as permitted
hereunder and other locations as to which such Borrower has given Lender at
least thirty (30) days' advance written notice and has obtained Lender's prior
written consent.

7.5. Environmental Compliance.

     Each Borrower shall be and remain in compliance with all Environmental
Laws, except where the failure to do is not reasonably likely to cause such
Borrower to incur or to have environmental liabilities and costs ****. In
addition, each Borrower shall (a) keep any of its Real Property free of any
Environmental Liens or post bonds or other financial assurances sufficient to
satisfy the obligations or liability evidenced by such Environmental Liens, (b)
provide to Lender documentation of such compliance which Lender reasonably
requests, (c) promptly notify Lender of any release of a Hazardous Material of
any reportable quantity from or onto property owned or operated by any Borrower
and take any Remedial Actions required to abate said release or otherwise to
come into compliance with applicable Environmental Laws, and (d) promptly
provide Lender with written notice within ten (10) days of the receipt of any of
the following: (i) notice that an Environmental Lien has been filed against any
of the Real Property or personal property of any Borrower, (ii) commencement of
any Environmental Action or notice that an Environmental Action will be filed
against any Borrower, and (iii) notice of a violation, citation, or other
administrative order which is reasonably likely to result in a Material Adverse
Effect.

7.6. Average/Weighted Loan Basis.

     At no time will the aggregate Loan Basis of the Borrowers' consolidated
Financial Assets exceed ninety percent (90%) of the aggregate unpaid principal
amounts of all of Borrowers' Financial Assets.

7.7. Management.

     At all times George Luburich, II will have an active role in the executive
management of each Borrower and Parent Company; provided, however, if he dies or
become incapacitated, the Borrowers within thirty (30) days after his death must
have hired an executive of similar educational background, ability and
experience who is in all respects satisfactory to Lender.

7.8. Restriction on Fundamental Changes: Conduct of Business.

     No Borrower shall (a) enter into any merger or consolidation, or liquidate,
wind up or dissolve (or suffer any liquidation or dissolution), or convey,
lease, sell, transfer or otherwise dispose of, in one transaction or a series of
transactions, any substantial portion of such Borrower's business or property,
whether now or hereafter acquired, (b) enter into limited liability companies,
partnerships or joint ventures with any other entity, (c) acquire all or
substantially all of the assets or business of any other company, person or
entity, (d) create, acquire or permit to exist any Subsidiaries (other than GL
Funding as a

                                      -34-

<PAGE>

Subsidiary of GLCA), (e) conduct business under any trade names other than the
trade names of such Borrower as of the Closing Date of this Agreement, or (f)
engage in any business other than the businesses engaged in by such Borrower on
the date hereof and any business or activities which are substantially similar
or related thereto. No Borrower will make any material change in its current
business or business practices without providing not less than sixty (60) days
prior written notice to Lender. No Borrower shall permit Parent Company to
create, acquire or permit to exist any Subsidiaries other than GLCA, and such
Subsidiary of Parent Company shall be wholly owned by Parent Company.

7.9. Sale of Assets.

     No Borrower shall sell, assign, lease, convey or otherwise dispose of any
property, whether now owned or hereafter acquired, or any income of profits
therefrom, or enter into any agreement to do so except for (a) Permitted Liens,
(b) Permitted Dispositions, and (c) any sale of Financial Assets of any Borrower
made in the ordinary course of such Borrower's business; provided, however, (i)
the Net Cash Proceeds derived from such sale is at least **** of the Loan Basis
of such Financial Assets, (ii) after giving effect to such sale, no Pending
Default or Event of Default will exist and (iii) such Borrower delivers to
Lender a notice of the proposed sale at least five (5) Business Days prior to
such sale. Notwithstanding the foregoing, no Borrower may grant a security
interest in or encumber any Financial Assets, Accounts or General Intangibles
other than in favor of Lender.

7.10. Negative Pledge.

     No Borrower will cause or permit or permit to exist or agree or consent to
cause or permit in the future (upon the happening of a contingency or
otherwise), any of the Collateral or any other real or personal property,
whether now owned or hereafter acquired, to become subject to a Lien, except for
Permitted Liens. In addition, no Borrower will grant or agree to provide in the
future (upon the happening of a contingency or otherwise), a "negative pledge"
or other covenant or agreement similar to this Section 7.10 in favor of any
other lender, creditor or third party.

7.11. Indebtedness.

     No Borrower will directly or indirectly create, incur, assume or otherwise
become or remain liable with respect to any Indebtedness, except for (i)
Indebtedness to Lender, (ii) Permitted Purchase Money Indebtedness (including
Capital Lease obligations) which in the aggregate do not exceed **** outstanding
at any time, and (iii) the Approved Subordinated Debt Issuance not to exceed
**** outstanding at any time.

7.12. Contingent Obligations.

                                      -35-

<PAGE>

     No Borrower directly or indirectly will create or become liable with
respect to any Contingent Obligation, except (a) recourse obligations resulting
from the indorsement of negotiable instruments for collection in the ordinary
course of business, (b) obligations, warranties and indemnities not relating to
Indebtedness, which have been or are undertaken or made in the ordinary course
of such Borrower's business, and (c) Contingent Obligations with respect to
surety, appeal and performance bonds obtained by such Borrower.

7.13. Restricted Payments.

     No Borrower shall declare or make any Restricted Payment other than for (a)
payments of interest made prior to the occurrence of a Pending Default or an
Event of Default on account of any Subordinated Debt; and (b) on the business
day immediately preceding the date on which GLCA's members shall be required to
make any tax related payment to any Governmental Authority, GLCA may make
distributions to such members in an amount not to exceed such member's actual or
estimated (at the maximum marginal income tax rate applicable to individuals)
tax obligations attributable to such member's allocable share of GLCA's Net
Income, from funds legally available for such purpose; provided, such members
shall utilize such amount thereof as is necessary to pay his or her tax
obligations; provided further, any amount otherwise permitted to be paid under
this clause shall be reduced by the amount of any state or federal income tax
related payments made directly by any Borrower or any Affiliate to any
Governmental Authority, and evidence of such distributions, such as by copies of
Form 1120(S) and estimated tax payment forms of such Borrower's members shall be
submitted to Lender at the time of such distributions; and provided further,
that (i) each Borrower shall deliver to Lender a notice at least fifteen (15)
days prior to the distribution to such members and (ii) such distribution will
not cause a Pending Default or Event of Default.

7.14. Loans and Advances, Investments.

     No Borrower shall directly or indirectly make or own any Investment except:
(a) Permitted Investments and (b) loans or advances to members of executive
management of such Borrower, which loans and advances do not in the aggregate
**** outstanding at any time.

7.15. Non-Qualified Sellers; Restriction on Certain Assets.

     (a) The Borrowers will not purchase any Financial Asset from a Seller of
Financial Assets (other than a Qualified Seller) which, at any time when added
to all other Financial Assets owned by the Borrowers and purchased from such
Seller, causes the aggregate Loan Basis of all such Financial Assets to ****.

     (b) At no time shall the Loan Basis of Borrowers' aggregate Non-Performing
Foreclosure Loans and Personal Property Loans be more than **** *** of the
aggregate Loan Basis of all Financial Assets.

                                      -36-

<PAGE>

7.16. Transactions With Affiliates.

     No Borrower shall, except as otherwise expressly permitted herein, directly
or indirectly enter into or permit to exist any of the following: (a) make any
Investment in an Affiliate; (b) transfer, sell, lease, assign or otherwise
dispose of any asset to any Affiliate; (c) merge into or consolidate with or
purchase or acquire assets from any Affiliate; (d) repay any Indebtedness to any
Affiliate; (e) pay any royalties or license fees to any Affiliate; (f) pay any
management or consulting fees to any Affiliate; or (g) enter into any other
transaction directly or indirectly with or for the benefit of any Affiliate
(including, without limitation, guaranties and assumptions of obligations of any
such Affiliate); except in each of the foregoing cases for transactions (i) in
the ordinary course of business, and (ii) either on a basis no less favorable to
such Borrower as would be obtained in a comparable arm's length transaction
with a person, entity or corporation not an Affiliate, or in the case of
compensation payable to any officer or director of such Borrower, in an amount
approved by the Board of Directors or managers of such Borrower.

7.17. Maintenance of Deposit Accounts.

     No Borrower shall maintain or have any operating accounts or other accounts
at any bank, depositary source or other financial institution where money or
proceeds of Collateral are deposited or maintained, other than the accounts set
forth on Schedule 7.17 attached hereto, or such other accounts acceptable to
Lender in its sole good faith discretion.

7.18. Modification of Accounts Receivable.

     No Borrower shall (a) extend, amend or otherwise modify the terms of any
Financial Asset, or (b) amend, modify or waive any term or condition of any
contractual obligation related thereto; provided, however, that such Borrower
may extend, amend or otherwise modify the terms of any Financial Asset in the
ordinary course of business, if such extension, amendment, modification or
waiver does not cause a Financial Asset to become or otherwise remain, but for
such action, an Eligible Financial Asset. If there is any dispute with respect
to any Financial Asset, such Borrower shall take reasonable efforts to resolve
or settle such dispute at no expense or detriment to Lender

7.19. Prepayment and Amendments of Indebtedness.

     No Borrower shall (a) prepay, redeem, defease, purchase, or otherwise
acquire any of its Indebtedness, other than the Obligations to Lender in
accordance with this Agreement, and (b) directly or indirectly, amend, modify,
alter, increase, or change any of the terms or conditions of any agreement,
instrument, document, indenture, or other writing evidencing or concerning
Indebtedness permitted under this Agreement without the prior written consent
of Lender, if the effect of any such amendment or modification is adverse to the
interests of Lender or any Borrower.

                                      -37-

<PAGE>

7.20. Restrictions on Parent Company.

     Each Borrower agrees to cause Parent Company not to (i) incur or permit to
exist any Indebtedness or Contingent Obligations, (ii) grant any liens or
security interest other than in connection with this Agreement, and (iii) engage
in any business or activity other than acting as a Parent Company for each of
its Subsidiaries.

7.21. Financial Covenants.

     (A) Adjusted Tangible Net Worth.

     The Borrowers on a consolidated basis, agree to maintain at all times
during the periods specified below an Adjusted Tangible Net Worth of not less
****.

     (B) Minimum Current Ratio.

     The Borrowers, on a consolidated basis, agree to maintain: (a) at all times
prior to the first anniversary of the date of this Agreement, a ratio of current
assets to current liabilities of not less than ****; (b) and at all times on and
after the first anniversary of the date of this Agreement and prior to the
Revolving Loan Maturity Date, a ratio of current assets to current liabilities
of not less than ************. For the calculation of the current ratio, all
Obligations under the Loan will be classified in accordance with GAAP.

     (C) Interest Coverage Ratio.

     The Borrowers, on a consolidated basis, agree to maintain at all times for
the periods specified below an Interest Coverage Ratio of not less than ****
"Interest Coverage Ratio" means the ratio of the Borrowers' consolidated (a)
EBITDA for such period, minus any Restricted Payments made during such period to
(b) Interest Expense for such period.

     The Interest Coverage Ratio shall be determined as of the last day of each
quarter for the three (3) month period ending on such date.

     (D) Leverage Ratio.

     The Borrowers, on a consolidated basis, agree to maintain at all times a
ratio of Total Liabilities to Adjusted Tangible Net Worth of not greater than a
ratio of ****.

     (E) Capital Expenditures.

     The Borrowers, on a consolidated basis, will not make or incur any Capital
Expenditures, including by way of the incurrence of Capital Lease obligations,

                                      -38-

<PAGE>

expenditures for maintenance and repairs in accordance with GAAP or otherwise
**** during any fiscal year without Lender's prior written consent.

7.22 Licenses.

     (a) Within seven days of being notified by Lender in writing or otherwise
acquiring knowledge of the need for a License (as defined below), each Borrower
agrees to commence immediately and diligently pursue (i) all applications and
requirements for licenses for any ownership, acquisition, sale or other
disposition, servicing, or collection of any Financial Asset or mortgage, or any
other license applicable to any Borrower's business or operations (any of the
foregoing, a "License") identified by Lender, any Governmental Authority, a
Borrower or any Person advising Borrower in respect of License requirements at
any time prior to or subsequent to the date hereof (an "Advisor") as necessary
or desirable for such Borrower's business or operations, or (ii), in the
alternative, if such License does not apply to the ownership of a Financial
Asset, contractual negotiations to engage a third-party servicer satisfactory in
all respects to Lender to service such Financial Asset.

     (b) As to Financial Assets owned as of the date of this Agreement, no
later than 90 days after the date of this Agreement, in any location in which
Lender, any Governmental Authority or any Advisor has identified that a License
is necessary or desirable to service or collect Financial Assets or mortgages,
but a Borrower has not obtained such License, such Borrower agrees to engage a
fully licensed third-party servicer having such a License and who is in all
respects satisfactory to Lender to service such Financial Asset. Any agreement
with any third-party servicer must be in all respects satisfactory to Lender
and must contain, inter alia, provisions that such Person will enter into an
agreement on the same terms with Lender in the event that Lender exercises its
rights under this Agreement, that such third-party servicer will make all
payments to Lender's lockbox arrangement or blocked account, and that such
Person will maintain insurance satisfactory to Lender.

     (c) In any location in which a License to acquire, dispose, own or hold
Financial Assets has been identified by Lender, any Governmental Authority or
any Advisor, but Borrower has not obtained such License, each Borrower agrees,
upon the request of Lender, to sell all Financial Assets subject to such License
no later than 90 days after the date of this Agreement.

     (d) Each Borrower further agrees not to purchase or originate any Financial
Asset for which such Borrower either does not possess an appropriate License or
has not engaged a third-party servicer satisfactory to Lender and which servicer
has such a License.

8.   Financial Information and Reporting.

     The Borrowers will deliver the following to Lender:

                                      -39-

<PAGE>

     (a) within thirty (30) days after the end of each month, financial
statements of each Borrower, including a balance sheet and statements of income
and surplus, and statement of cash flows, certified by a Financial Officer as
fairly representing each Borrower's financial conditions as of the end of such
period;

     (b) within thirty (30) days after the end of each month, a certificate
signed by a Financial Officer certifying the compliance of each Borrower with
the terms of this Agreement and the calculation of the financial covenants
contained in Section 7.21, hereof;

     (c) a current Borrowing Base certificate in a form set forth, on Exhibit D,
setting forth the calculation of the Borrowing Base for each Borrower with each
advance request under the Loan, but in any event, no less frequently than once a
month on the last day of such month;

     (d) Intentionally Omitted;

     (e) within twenty (20) days after the end of each month and immediately
prior to each advance request under the Loan, a report for each Borrower, in
form satisfactory to Lender, certified by a Financial Officer setting forth the
number and dollar total of Financial Assets receivable due and payable (i) not
more than thirty (30) days, (ii) more than thirty (30) days and not more than
sixty (60) days, (iii) more than sixty (60) days and not more than ninety (90)
days, (iv) more than ninety (90) and not more than 120 days, and (v) more than
120 days from the date of the "account next due date" therefor, and including a
detailed calculation and certification of the accounts receivable that are not
Eligible Financial Assets;

     (f) within ninety (90) days after the end of each fiscal year thereafter,
audited, unqualified financial statements of the Borrowers, on a consolidated
basis, with audited consolidating schedules prepared in accordance with GAAP and
certified by Wolfe & Company LLP or other independent public accountants
reasonably satisfactory to Lender, containing (i) balance sheets, (ii)
statements of income and surplus, and (iii) statements of cash flows and
reconciliation of capital accounts, along with any management letters written by
such accountants and a lender reliance letter from such accountants permitting
Lender to rely on such certifications of such accountants;

     (g) no later than thirty (30) days prior to the beginning of each fiscal
year, financial projections for each Borrower for its next fiscal year, on a
quarterly basis, including a projected income statement;

     (h) no later than thirty (30) days after each calendar year-end, a true,
accurate and complete financial statement as of December 31st of the preceding
calendar year for each Guarantor, and no later than fifteen (15) days after
filing (and proof of extensions if not filed by April 15 of each year), a
complete copy of such Guarantor's tax returns and schedules thereto:

                                      -40-

<PAGE>

     (i) immediately upon becoming aware of the existence of any Pending
Default, Event of Default or breach of any term or conditions of this Agreement,
a written notice specifying the nature and period of existence thereof and what
action such Borrower is taking or proposes to take with respect thereto;

     (j) within five (5) days after the adoption of any change or amendment to
Borrower's policy or credit policy manual, copies of such changes or amendments;

     (k) within thirty (30) days after the end of each quarter, a compilation of
all legal or administrative proceedings pending or threatened;

     (l) within thirty (30) days prior to each anniversary date of this
Agreement a complete legal audit opinion and reliance letter from Borrower's
independent legal counsel addressing the Borrower's compliance with (i) Consumer
Finance Laws and (ii) whether Borrowers' Lending and collections Policy and
Procedures Manuals evidence compliance with applicable state and federal laws,
including without limitation Consumer Finance Laws, which opinion shall include,
without limitation, the following (A) each Borrower's compliance with all
franchises, licenses, consents, permits, approvals or authorizations of any
Governmental Authority and Requirements of Law in respect of any Borrower in
connection with the conduct of such Borrower's business and operations and the
effectiveness of all such franchises, licenses, consents, permits, approvals or
authorizations; (B) to the best of such counsel's knowledge, Borrower's
compliance with all laws, rules, and regulations relating to the conduct of its
business, including the acquisition of loans, financing of loans and the
servicing of loans, the "Truth-In-Lending" Act, as amended, Federal Reserve
Board Regulation Z, as amended, federal or state licensing laws, usury laws, and
other applicable consumer credit protection laws or Consumer Finance Laws; and
(C) to the best of such counsel's knowledge, after diligent inquiry, all pending
or threatened litigation, regulatory action, or other dispute that could
adversely affect any Borrower;

     (m) immediately upon becoming aware of the existence of (i) any pending or
threatened adverse action or proceeding by any Governmental Authority, (ii)
receipt of any notice that any Borrower is required to have a License, or (iii)
any application for any License is denied or any compliance issue exists, copies
of same, together with copies of any such pending or threatened action or
proceeding or notice;

     (n) within two (2) weeks of receiving any state regulatory audit or other
reports, notices or other correspondence or communications (other than those
described in subsection 8 (m) above), copies of the same, and to the extent any
Borrower is required or chooses to respond to such item, a copy of such response
concurrently with its transmission to the applicable regulatory agency; and

     (o) at the request of Lender, such other information as Lender may from
time to time reasonably require.

                                      -41-

<PAGE>

9.   Default.

9.1. Events of Default.

          Each of the following shall constitute an "Event of Default"
hereunder: (a) any Borrower fails to make any payment of principal, interest or
any other sum due and payable under any Loan Document or otherwise on or before
the date such payment is due; (b) any Borrower fails to perform or observe any
covenant, agreement or duty contained in this Agreement; (c) any Borrower or
Loan Party fails to perform or observe any covenant, agreement or duty contained
in any Loan Document (other than this Agreement and other than as described in
clauses (a) or (b) above), and such failure continues for more than ten (10)
Business Days after such failure shall first become known or reasonably should
have become known to any officer of any Borrower; (d) any warranty,
representation or other statement made or deemed to be made in this Agreement or
in any Loan Document is false or misleading in any respect; (e) any Borrower or
any Loan Party becomes insolvent or commences any Insolvency Proceeding; (f) any
Insolvency Proceeding is instituted against any Borrower or any Loan Party and
continues for sixty (60) days undismissed or undischarged; (g) a final judgment
or judgments for the payment of money aggregating **** is or are outstanding
against any Borrower or any Loan Party, and any such judgment or judgments have
not been discharged or bonded in full or stayed; (h) the occurrence of any event
which allows the acceleration of the maturity of any Indebtedness of any
Borrower or any Loan Party to Lender or any of Lender's Affiliates (other than
evidenced by this Agreement); (i) the occurrence of any event which allows the
acceleration of the maturity of any Indebtedness in **** of any Borrower or any
Loan Party or constitutes a default or breach under any material lease or
material contract of any such Person, under any indenture, agreement or
undertaking, unless waived, extended or otherwise consented to by the obligee or
holder thereof; (j) the dissolution of any insurer or the default by any surety
for any Borrower with respect to any obligation or liability to Lender or any of
Lender's affiliates and the failure of the Borrowers to replace such insurer or
surety with a substitute satisfactory to Lender within thirty (30) days after
such dissolution or default; (k) a Change of Control of any Borrower or of any
Loan Party shall have occurred without Lender's prior written consent; (l)
Lender, in its sole good faith discretion, determines that a Material Adverse
Effect has occurred or that a material adverse change has occurred in the
financial condition, operations or business of any Borrower or any Loan Party,
or in the value of the Collateral or in Lender's interest in the Collateral
which impairs the Borrower's or such Loan Party's ability to pay or perform the
Obligations for which it is liable under the Loan Documents; (m) the death or
dissolution of any Guarantor and the failure of the Borrowers to replace such
Guarantor with a substitute satisfactory to Lender within thirty (30) days of
such death or dissolution; or (n) any Borrower fails to comply with the
provisions of Schedule 9.1 (n) or fails to deliver to Lender, in form and
substance satisfactory to Lender, any of the agreements, instruments and other
documents or requirements listed under the heading "Post Closing Matters" on
Schedule 9.1(n) within the time periods set forth on such schedule applicable to
such item or requirement.

                                      -42-

<PAGE>

9.2. Default Remedies.

     (a) Acceleration. Upon the occurrence and during the continuance of an
Event of Default, Lender may immediately exercise any right, power or remedy
permitted to Lender by law or any provision of this Agreement, and shall have,
in particular, without limiting the generality of the foregoing, the right to
declare the entire principal, all interest accrued, and all other charges
accruing on all Obligations to be forthwith due and payable, without any
presentment, demand, protest or other notice of any kind, all of which are
hereby expressly waived by each Borrower.

     (b) Liquidation of Collateral. Upon the occurrence and during the
continuance of an Event of Default, Lender shall have the rights and remedies of
a secured party under this Agreement, under any other instrument or agreement
securing, evidencing or relating to the Obligations and under the laws of the
State in which the Collateral is located or any other applicable state law.
Without limiting the generality of the foregoing, Lender shall have the right to
take possession of the Collateral and all books and records relating to the
Collateral and for that purpose Lender may enter upon any Real Property on which
the Collateral or books and records relating to the Collateral or any part
thereof may be situated and remove the same therefrom. Except for the notices
specified below of time and place of public sale or disposition or time after
which a private sale or disposition is to occur, each Borrower expressly agrees
that Lender, without demand of performance or other demand, advertisement or
notice of any kind to or upon any Borrower or any other person or entity (all
and each of which demands, advertisements and/or notices are hereby expressly
waived), may forthwith collect, receive, appropriate and realize upon the
Collateral, or any part thereof, and/or may forthwith sell, lease, assign, give
an option or options to purchase or sell or otherwise dispose of and deliver the
Collateral (or contract to do so), or any part thereof, in one or more parcels
at public or private sale or sales, at any of Lender's offices or elsewhere at
such prices as Lender may deem best, for cash or on credit or for future
delivery without assumption of any credit risk. Lender shall have the right upon
any such public sale or sales, and, to the extent permitted by law, upon any
such private sale or sales, to purchase the whole or any part of the Collateral
so sold, free of any right or equity of redemption. Each Borrower further
agrees, (i) at Lender's request, to assemble the Collateral and to make it
available to Lender at such places as Lender may reasonably select, and (ii) to
allow Lender to use or occupy such Borrower's Real Property, without charge, for
the purpose of effecting Lender's remedies in respect of the Collateral. Lender
shall apply the net proceeds of any such collection, recovery, receipt,
appropriation, realization or sale, after deducting all reasonable costs and
expenses of every kind incurred in connection therewith or incidental to the
care or safekeeping of any or all of the Collateral or in any way relating to
the rights of Lender hereunder, including reasonable attorneys' fees and legal
expenses, to the payment in whole or in part of the Obligations, in such order
as Lender may elect, and only after so paying over such net proceeds and after
the payment by Lender of any other amount required by any provision of law, need
Lender account for the surplus, if any. To the extent permitted by applicable
law, each Borrower waives all claims, damages and demands against Lender arising
out of the repossession, retention, sale or disposition of the Collateral and
agrees that Lender need

                                      -43-

<PAGE>

not give more than ten (10) days' notice pursuant to the terms of this Agreement
of the time and place of any public sale or of the time after which a private
sale may take place and that such notice is reasonable notification of such
matters. Each Borrower shall remain liable for any deficiency if the proceeds of
any sale or disposition of the Collateral are insufficient to pay all amounts to
which Lender is entitled and shall also be liable for the costs of collecting
any of the Obligations or otherwise enforcing the terms thereof or of this
Agreement, including reasonable attorneys' fees.

10.   General Provisions.

10.1. Notices.

     (a) All communications under this Agreement or under the notes executed
pursuant hereto shall be in writing and shall be sent by facsimile or by a
nationally recognized overnight delivery service (i) if to Lender, at the
address or facsimile number set forth below Lender's signature to this
Agreement, or at such other address or facsimile number as may have been
furnished in writing to the Borrowers, by Lender; and (ii) if to any Borrower,
at the address or facsimile number set forth below any Borrower's signature to
this Agreement, or at such other address or facsimile number as may have been
furnished in writing to Lender by any Borrower.

     (b) Any notice so addressed and sent by facsimile shall be deemed to be
given when confirmed, and any notice sent by nationally recognized overnight
delivery service shall be deemed to be given the next day after the same is
delivered to such carrier.

10.2. Access to Accountants.

     Each Borrower hereby irrevocably authorizes its accountants to provide to
Lender any and all information that Lender requests from time to time with
regard to any Borrower, and to discuss with Lender from time to time any and all
matters relating to any Borrower. In furtherance of the foregoing, each Borrower
hereby waives any privilege or claim of confidentiality to the extent such might
otherwise prevent such accountants from providing such information to Lender or
discussing such matters with Lender.

10.3. Costs and Expenses.

     Each Borrower agrees to pay service charges, analysis fees, and all costs
and expenses incidental to or in connection with this Agreement or any service
provided by Lender, the enforcement of Lender's rights in connection therewith,
any amendment or modification of this Agreement or any other loan documents, any
sale or attempted sale of any interest herein to a participant or co-lender, any
litigation, contest, dispute, proceeding or action in any way relating to the
Collateral or to this Agreement, whether any of the foregoing are incurred prior
to or after maturity, the occurrence of an Event of Default, or the rendering of
a judgment. Such costs shall include, but not be limited to, fees and
out-of-pocket expenses of Lender's counsel, recording fees, inspection fees,

                                      -44-

<PAGE>

revenue stamps and note and mortgage taxes, due diligence and audit expenses
(up-front and periodic), and legal fees. The provisions of this Section 10.3
shall survive the termination of this Agreement.

10.4. Survival, Successors and Assigns.

     All warranties, representations, and covenants made by any Borrower herein
or on any certificate or other instrument delivered by it or on its behalf under
this Agreement shall be considered to have been relied upon by Lender and shall
survive the closing of the Loan regardless of any investigation made by Lender
on its behalf. This Agreement shall inure to the benefit of and be binding upon
the heirs, successors and assigns of each of the parties.

10.5. Amendment and Waiver, Duplicate Originals.

     All references to this Agreement shall also include all amendments,
extensions, renewals, modifications, and substitutions thereto and thereof made
in writing and executed by each Borrower and Lender. This Agreement may be
amended, and the observance of any term of this Agreement may be waived, with
(and only with) the written consent of each Borrower and Lender; provided,
however, that nothing herein shall change Lender's sole discretion or good faith
discretion (as set forth elsewhere in this Agreement) to make advances,
determinations, decisions or to take or refrain from taking other actions. No
delay or failure or other course of conduct by Lender in the exercise of any
power or right shall operate as a waiver thereof; nor shall any single or
partial exercise of the same preclude any other or further exercise thereof, or
the exercise of any other power or right. Two or more duplicate originals of
this Agreement may be signed by the parties, each of which shall be an original
but all of which together shall constitute one and the same instrument.

10.6. Accounting Treatment and Fiscal Year.

     No Borrower shall change its fiscal year for accounting or tax purposes
from a period consisting of the twelve (12) month period ending on December 31
of each calendar year, and shall not make any change in accounting treatment and
reporting practices or tax reporting treatment except as required by GAAP or law
and disclosed in writing to Lender at the address set forth herein.

10.7. Enforceability and Governing Law.

     Any provision of this Agreement which is prohibited or unenforceable in any
jurisdiction, as to such jurisdiction, shall be inapplicable or ineffective to
the extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction. No delay or omission on the part of Lender in exercising any
right shall operate as a waiver of such right or any other right. All of
Lender's rights and remedies, whether evidenced hereby or by any

                                      -45-

<PAGE>

other agreement or instrument, shall be cumulative and may be exercised
singularly or concurrently. This Agreement shall be governed by and construed in
accordance with the laws of the State of Ohio (without giving effect to the
conflict of laws rules thereof). Each Borrower agrees that any legal suit,
action or proceeding arising out of or relating to this Agreement may be
instituted in a state or federal court of appropriate subject matter
jurisdiction in the State of Ohio, waives any objection which it may have now or
hereafter to the venue of any suit, action or proceeding, and irrevocably
submits to the jurisdiction of any such court in any such suit, action or
proceeding.

10.8. Confidentiality.

     Lender shall hold all non-public information obtained pursuant to the
requirements hereof and identified as such by any Borrower in accordance with
Lender's customary procedures for handling confidential information of this
nature and in accordance with safe and sound banking practices, and in any event
may make disclosures as required or requested by any governmental authority or
any representative thereof, or pursuant to any legal process, or to its
accountants, lawyers and other advisors.

10.9. Effective Date.

     This Agreement shall be binding and deemed effective when executed by each
Borrower and Lender whose signature is provided for on the signature pages
hereof.

10.10. Section Headings, Interpretations and Severability.

     (a) Headings and numbers have been set forth herein for convenience only.
Unless the contrary is compelled by the context, everything contained in each
Section applies equally to this entire Agreement.

     (b) Neither this Agreement nor any uncertainty or ambiguity herein shall be
construed or resolved against Lender or any Borrower, whether under any rule of
construction or otherwise. On the contrary, this Agreement has been reviewed by
all parties and shall be construed and interpreted according to the ordinary
meaning of the words used so as to accomplish fairly the purposes and intentions
of all parties hereto.

     (c) Each provision of this Agreement shall be severable from every other
provision of this Agreement for the purpose of determining the legal
enforceability of any specific provision.

                                      -46-

<PAGE>

10.11. Counterparts; Facsimile Execution.

     This Agreement may be executed in any number of counterparts and by
different parties on separate counterparts, each of which, when executed and
delivered, shall be deemed to be an original, and all of which, when taken
together, shall constitute but one and the same Agreement. Delivery of an
executed counterpart of this Agreement by facsimile shall be equally as
effective as delivery of an original executed counterpart of this Agreement. Any
party delivering an executed counterpart of this Agreement by facsimile also
shall deliver an original executed counterpart of this Agreement but the failure
to deliver an original executed counterpart shall not affect the validity,
enforceability, and binding effect of this Agreement. The foregoing shall apply
to each other Loan Document mutatis mutandis.

10.12. Revival and Reinstatement of Obligations.

     If the incurrence or payment of the Obligations by any Borrower or the
transfer to Lender of any property should for any reason subsequently be
declared to be void or voidable under any state or federal law relating to
creditors' rights, including provisions of the Bankruptcy Code relating to
fraudulent conveyances, preferences, or other voidable or recoverable payments
of money or transfers of property (collectively, a "Voidable Transfer"), and if
Lender is required to repay or restore, in whole or in part, any such Voidable
Transfer, or elects to do so upon the reasonable advice of its counsel, then, as
to any such Voidable Transfer, or the amount thereof that Lender is required or
elects to repay or restore, and as to all reasonable costs, expenses and
attorneys' fees of Lender related thereto, the liability of each Borrower
automatically shall be revived, reinstated, and restored and shall exist as
though such Voidable Transfer had never been made.

10.13. Integration.

     This Agreement, together with the other Loan Documents, reflects the entire
understanding of the parties with respect to the transactions contemplated
hereby and shall not be contradicted or qualified by any other agreement, oral
or written, before the date hereof.

10.14. Waiver of Right to Trial by Jury.

     EACH PARTY TO THIS AGREEMENT HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY
JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION (1) ARISING UNDER THIS
AGREEMENT OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED
IN CONNECTION HEREWITH, OR (2) IN ANY WAY CONNECTED WITH OR RELATED OR
INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO
THIS AGREEMENT OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR
DELIVERED IN CONNECTION HEREWITH, OR THE TRANSACTIONS RELATED HERETO OR

                                      -47-

<PAGE>

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

10.15. No Consequential Damages.

     No claim may be made by any Borrower, or any of its officers, directors,
managers, or agents against Lender or its affiliates, directors, officers,
employees, attorneys or agents for any special, indirect, punitive, or
consequential damages in respect of any breach or wrongful conduct (whether the
claim therefor is based in contract, tort or duty imposed by law) in connection
with, arising out of or in any way related to the transactions contemplated and
relationship established by this Agreement, or any act, omission or event
occurring in connection therewith, and each Borrower and the Guarantors hereby
waive, release and agree not to sue upon any such claim for any such damages,
whether or not accrued and whether or not known or suspected to exist in its
favor.

10.16. Indemnity.

     Each Borrower and Guarantor, jointly and severally, agree to indemnify
Lender from and against any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses and disbursements of any
kind or nature whatsoever (including, without limitation, fees and disbursements
of counsel) which may be imposed on, incurred by, or asserted against Lender in
any litigation, proceeding or investigation instituted or conducted by any
governmental agency or instrumentality or any other person or entity with
respect to any aspect of, or any transaction contemplated by, or referred to in,
or any matter related to, this Agreement, whether or not Lender is a party
thereto, except to the extent that any of the foregoing arises out of the gross
negligence or willful misconduct of Lender, as determined in a final,
non-appealable judgment by a court of competent jurisdiction. The indemnities
provided for in this Section 10.16 shall survive the termination of this
Agreement and the indefeasible payment of the Loan in full.

                                      -48-

<PAGE>

     Each of the parties has signed this Agreement as of the date set forth in
the preamble above.

                               BORROWERS:

                               GREAT LAKES CAPITAL ACCEPTANCE LLC

                               By: /s/ George Luburich II
                                  ----------------------------------------------
                               Its: Manager

                               Notice Address: (same as below)

                               GREAT LAKES FUNDING I, LLC

                               By: /s/ George Luburich II
                                  ----------------------------------------------
                               Its: Manager

                               Notice Address;
                               27 East Monroe Street
                               Suite 700
                               Chicago, Illinois 60603
                               Attn: George Luburich II
                               Facsimile: (312)416-7978
                               Confirmation: (312)621-7999

                               with a copy to:

                               Thomas G. Jaros, Esq.
                               Levenfeld Pearlstein
                               33 West Monroe Street, 21st Floor
                               Chicago, Illinois 60603
                               Facsimile: (312)346-8434
                               Confirmation: (312)456-0518

                                      -49-

<PAGE>

                               LENDER:

                               TEXTRON FINANCIAL CORPORATION

                               By:
                                  ----------------------------------------------
                               Its: Assistant Vice President

                               ****

                               with a copy to:

                               ****

                                      -50-

<PAGE>

                                    EXHIBIT B

[FORM OF BAILMENT AGREEMENT]

 __________________________
 __________________________
 __________________________

     Re: Purchase of Financial Assets from Great Lakes Capital Acceptance LLC or
         Great Lakes Funding I, LLC

Ladies and Gentlemen:

     This Bailment Agreement (this "Agreement") is entered into in connection
with that certain Loan and Security Agreement dated December 11, 2002, by and
among Great Lakes Capital Acceptance LLC, Great Lakes Funding I, LLC (each of
the foregoing a "Borrower"), and Textron Financial Corporation ("Lender"), as
the same may be amended, restated, modified or supplemented from time to time,
the "Loan Agreement." Capitalized terms used in this Agreement and not otherwise
defined herein have the meanings assigned to such terms in the Loan Agreement.
Attached to this Agreement are those Financial Assets and Mortgage Files listed
separately on the schedule attached hereto and incorporated herein, which
Financial Assets and Mortgage Files are owned by one of the Borrowers and are
being delivered to you in connection with your contemplated purchase of such
Financial Assets and Mortgage Files.

     The Financial Assets and Mortgage Files comprise a portion of Lender's
Collateral under the Loan Agreement. Each of the Financial Assets and Mortgage
Files is subject to a security interest in favor of Lender, which security
interest will be released upon Lender's receipt of the full amount of the
purchase price of such Financial Assets and Mortgage Files (as set forth on the
schedule attached hereto) by wire transfer to the bank account listed below.

     Provident Bank
     Textron Financial Corporation
     Account #
     ABA #
     Cincinnati, Ohio

     Pending your purchase of each Financial Assets and Mortgage Files and until
Lender receives payment in full therefor, Lender's security interest therein
will remain in full force and effect, and you shall hold possession of such
Collateral and the documentation evidencing the same as custodian agent and
bailee for the benefit of and on behalf of Lender. In the event any Financial
Assets or Mortgage Files are unacceptable for purchase, you agree to return the
rejected item directly to the U.S. Bank National Association as Custodial Agent
at the address set forth below. In no event shall any Financial Assets or
Mortgage Files be returned to any Borrower, any sales proceeds remitted to any
Borrower or any sales proceeds be remitted later

<PAGE>

than two (2) business days from the date hereof. If you are unable to comply
with the above instructions, please advise Lender immediately at the address set
forth below.

     U.S. National Bank Association
     Custodial Agent
     180 East 5th Street, SPFTM204
     St. Paul, MN 55101
     Attn: Judy Spahn
     Facsimile (651) 244-0010

     You covenant and agree that: (i) upon written request from Lender, you will
immediately return all of the Financial Assets or Mortgage Files in your
possession to Lender or to U.S. Bank as Custodial Agent for Lender, (ii) you
will immediately return such Financial Assets and Mortgage Files to Lender in
the event that payment in full for such Financial Assets/Mortgage Files is not
received by Lender within two (2) business days after your receipt of the
Financial Assets or Mortgage Files; (iii) you will not deliver any payments or
Financial Assets to a Borrower; rather, Financial Assets and Mortgage Files
should be delivered directly to U.S. Bank, as Custodial Agent for Lender or to
Lender, and all payments shall be delivered directly to Lender; (iv) you will
not rely upon any instructions from any Borrower that in any way conflict with
the terms and conditions of this letter; (v) until Lender receive payment in
full for the Financial Assets/Mortgage Files, the Financial Assets and Mortgage
Files will not be subject to any claim, setoff or liens by you or your agents
under any circumstances whatsoever.

     NOTE: BY ACCEPTING THE FINANCIAL ASSETS AND MORTGAGE FILES DELIVERED TO YOU
WITH THIS LETTER, YOU CONSENT TO BE THE CUSTODIAN, AGENT AND BAILEE FOR LENDER
ON THE TERMS DESCRIBED IN THIS LETTER FOR THE PURPOSES OF PERFECTING THE
LENDER'S SECURITY INTEREST IN THE FINANCIAL ASSETS AND MORTGAGE FILES. LENDER
REQUESTS THAT YOU ACKNOWLEDGE RECEIPT OF THE ENCLOSED FINANCIAL ASSETS AND
MORTGAGE FILES AND THIS LETTER BY SIGNING AND RETURNING THE ENCLOSED COPY OF
THIS LETTER TO LENDER AT THE FOLLOWING ADDRESS: 130 EAST CHESTNUT STREET, SUITE
400, COLUMBUS, OHIO 43215.

HOWEVER, YOUR FAILURE TO DO SO DOES NOT NULLIFY SUCH CONSENT AND
ACKNOWLEDGEMENT.

                                      Sincerely,

                                      [Textron Financial Corporation, as Lender]

                                      By: ______________________________________
                                      Name:
                                      Title:

                                      [Alternative:]

                                      U.S. Bank National Association,
                                       as Custodial Agent

                                      By: ______________________________________
                                      Name:

                                       -2-

<PAGE>

IRREVOCABLY ACKNOWLEDGED AND AGREED TO:

_______________________________________

By:    ____________________________
Title: ____________________________
Date:  ____________________________

                                       -3-

<PAGE>

                                    EXHIBIT C

                                 REVOLVING NOTE

$7,000,000                       Columbus, Ohio              December 11, 2002

     FOR VALUE RECEIVED, the undersigned, jointly and severally, promise to pay
to the order of TEXTRON FINANCIAL CORPORATION (hereinafter called the "Lender,"
which term shall include any holder hereof), at such place as the Lender may
designate or, in the absence of such designation, at the Lender's office located
at 130 East Chestnut Street Suite 400, Columbus, Ohio 4325, the sum of Seven
Million Dollars ($7,000,000), or so much thereof as shall have been advanced by
the Lender at any time and not thereafter repaid (hereinafter referred to as
"Principal Sum"), together with interest as set forth in the Loan Agreement (as
defined below) and payable at the time and in the manner set forth in the Loan
Agreement. The proceeds of the loan evidenced hereby may be advanced, repaid and
readvanced in partial amounts during the term of this revolving note (this
"Note") and prior to maturity. Each such advance shall be made to the
undersigned upon receipt by the Lender of the application by the undersigned
therefor and disbursement instructions, which shall be in such form as the
Lender shall from time to time prescribe. The Lender shall be entitled to rely
on any oral or telephonic communication requesting an advance or providing
disbursement instructions hereunder, which shall be received by it in good faith
from anyone reasonably believed by the Lender to be the undersigned, or the
authorized agent of the undersigned. The undersigned agree that all advances
made by the Lender will be evidenced by entries made by the Lender into its
electronic data processing system and/or internal memoranda maintained by the
Lender. The undersigned further agree that the sum or sums shown on the most
recent printout from the Lender's electronic data processing system and/or on
such memoranda shall be rebuttably presumptive evidence of the amount of the
Principal Sum and of the amount of any accrued interest.

     This Note is executed and the advances contemplated hereunder are to be
made pursuant to a Loan and Security Agreement by and between the undersigned
and the Lender dated December 11, 2002, and all amendments, modifications, and
supplements thereto from time to time (hereinafter called the "Loan Agreement"),
and all the covenants, representations, agreements, terms, and conditions
contained therein, including but not limited to additional conditions of
default, are incorporated herein as if fully rewritten. Terms defined in the
Loan Agreement and not otherwise defined herein are used herein with the
meanings ascribed to such terms in the Loan Agreement.

INTEREST

     Interest will accrue on the unpaid balance of the Principal Sum at the rate
set forth in the Loan Agreement. In addition, upon the occurrences of an Event
of Default, interest will accrue on the unpaid balance of the Principal Sum at
the Default Rate.

                                       -4-

<PAGE>

MANNER OF PAYMENT

     The Principal Sum shall be due and payable on the Revolving Loan Maturity
Date, and at maturity, whether by acceleration or otherwise. Accrued interest
shall be due and payable as set forth in the Loan Agreement.

LATE CHARGE

     Any installment or other payment not made within 10 days of the date such
payment or installment is due shall be subject to a later charge equal to the
amount of the installment or payment.

SECURITY

     This Note is secured by the security interests, assignments, and mortgages
granted or referenced in the Loan Agreement.

DEFAULT

     Upon the occurrence of any of the following events:

          (a) the undersigned fail to make any payment of interest or of the
     Principal Sum on or before the date such payment is due;

          (b) an "Event of Default" under the Loan Agreement shall have
     occurred;

then the Lender may, at its option, without notice or demand, accelerate the
maturity of the obligations evidenced hereby, which obligations shall become
immediately due and payable. In the event the Lender shall institute any action
for the enforcement or collection of the obligations evidenced hereby, the
undersigned agree to pay all costs and expenses of such action, including
reasonable attorneys' fees, to the extent permitted by law.

GENERAL PROVISIONS

     Each of the parties executing this Note, and any endorser, surety, or
guarantor, hereby jointly and severally waive presentment, notice of dishonor,
protest, notice of protest, and diligence in bringing suit against any party
hereto, waive the defenses of impairment of collateral for the obligation
evidenced hereby, impairment of a person against whom the Lender has any right
of recourse, and any defenses of any accommodation maker and consent that
without discharging any of them, the time of payment and any other provision of
this Note may be extended or modified an unlimited number of times before or
after maturity without notice to the undersigned. Each of the undersigned
jointly and severally agrees that it will pay the obligations evidenced hereby,
irrespective of any action or lack of action on the Lender's part in connection
with the acquisition, perfection, possession, enforcement, disposition, or
modification of all the obligations evidenced hereby or any and all security
therefor, and no omission or delay on the Lender's part in exercising any right
against, or taking any action to collect from or pursue the Lender's remedies
against any party hereto will release discharge, or modify the duties of the
undersigned, or any of them, to make payments hereunder. Each of the undersigned
agrees that the Lender, without notice to or further consent from the
undersigned, may release or modify any

                                       -5-

<PAGE>

collateral, security, document or other guaranties now held or hereafter
acquired, or substitute other collateral, security or other guaranties, and no
such action will release, discharge or modify the duties of the undersigned, or
any of them, hereunder. Each of the undersigned agrees that the Lender will not
be required to pursue or exhaust any of its rights or remedies against the
undersigned, or any of them, or any guarantors of the obligations evidenced
hereby with respect to the payment of any said obligations, or to pursue,
exhaust or preserve any of the Lender's rights or remedies with respect to any
collateral, security or other guaranties given to secure said obligations, or to
pursue, exhaust or preserve any of the Lender's rights or remedies with respect
to any collateral, security or other guaranties given go secure said
obligations. Each of the undersigned waives any claim or other right which it
might now have or hereafter acquire against any other person or entity that is
primarily or contingently liable on the obligations that arise from the
existence or performance of each of the undersigned's obligations under this
Note, including, without limitation, any right of subrogation, reimbursement,
exoneration, contribution, indemnification, or any right to participate in any
claim or remedy of the Lender or any collateral security which the Lender now
has or hereafter acquires, whether such claim, remedy or right arises in equity,
under contact or status, at common law, or otherwise.

     The obligations evidenced hereby may from time to time be evidenced by
another note or notes given in substitution, renewal or extension hereof. Any
security interest or mortgage which secures the obligations evidenced hereby
shall remain in full force and effect notwithstanding any such substitution,
renewal, or extension.

     The captions used herein are for references only and shall not be deemed a
part of this Note. If any of the terms or provisions of this Note shall be
deemed unenforceable, the enforceability of the remaining terms and provisions
shall not be affected. This Note shall be governed by and construed in
accordance with the law of the State of Ohio.

WAIVER OF RIGHT TO TRIAL BY JURY

     EACH OF THE UNDERSIGNED HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY
OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION (1) ARISING UNDER THIS NOTE OR
ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION
HEREWITH, OR (2) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE
DEALINGS OF THE UNDERSIGNED OR THE LENDER, OR ANY OF THEM, WITH RESPECT TO THIS
NOTE OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN
CONNECTION HEREWITH, OR THE TRANSACTIONS RELATED HERETO OR THERETO, IN EACH CASE
WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT OR
TORT OR OTHERWISE; AND EACH OF THE UNDERSIGNED HEREBY AGREES AND CONSENTS THAT
ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT
TRIAL WITHOUT A JURY, AND THAT THE UNDERSIGNED, OR ANY OF THEM, OR THE LENDER
MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS
WRITTEN EVIDENCE OF THE CONSENT OF EACH OF THE UNDERSIGNED TO THE WAIVER OF THE
RIGHT OF THE UNDERSIGNED TO TRIAL BY JURY.

                                       -6-

<PAGE>

Borrower:                                       Borrower:

GREAT LAKES CAPITAL                             GREAT LAKES FUNDING I, LLC
ACCEPTANCE LLC

By:_____________________________                By:_____________________________
   George Luburich, II, Manager                    George Luburich, II, Manager

                                       -7-

<PAGE>

                                    EXHIBIT D

TEXTRON FINANCIAL

                            Finance Company Services

                       Great Lakes Capital Acceptance, LLC
                           Borrowing Base Certificate
                  (to be attached to the Request for Borrowing)
                                     [DATE]
<TABLE>
<CAPTION>
<S>                                                                                           <C>                  <C>
1. Outstanding Principal Balance of Eligible Mortgage and Consumer Loans
   ---------------------------------------------------------------------
   a. Total Basis of all Mortgage Loans                                                       $----------------
   b. Less - Ineligible Receivables                                                          ($----------------)
   c. Total Basis of all Eligible Mortgage Loans                                              $            0.00

2. Borrowing Base Calculation
   --------------------------
   a. Total Outstanding Balance of all Eligible Mortgage Loans x 85%                          $            0.00
   b. Advance Rate                                                                                           85%
                                                                                              -----------------    -----------------
   c. Borrowing Base                                                                                               $            0.00
                                                                                                                   =================

   Outstanding Balance Reconciliation
   ----------------------------------
   a. Ending Loan Balance from previous Borrowing Base Certificate                            $            0.00
   b. Less Collections                                                                        $            0.00
   c. Plus Interest payment (P+20%)                                                           $            0.00
   d. Plus Wire fee                                                                           $            0.00
                                                                                              -----------------    -----------------
   e. Aggregate outstanding Revolver Loan Balance prior to today's funding request                                 $            0.00
                                                                                                                   -----------------

3. Availability Calculation
   ------------------------
   a. Borrowing Base                                                                                               $            0.00
   b. Outstanding Commitment                                                                                       $    7,000,000.00
   c. Aggregate Outstanding Basis Balances of all Mortgage Loans                                                   $            0.00
                                                                                                                   -----------------
   d. Availability Prior to Today's Funding (the lesser of a - b or b - c)                                         $            0.00
   e. Loan Advance Requested                                                                                       $            0.00
                                                                                                                   -----------------
   f. Remaining Availability after today's funding                                                                 $            0.00
                                                                                              -----------------    -----------------
   g. New Loan Balance                                                                        $            0.00
                                                                                              =================

                                                                                              Outgoing Wires:      $            0.00
                                                                                                                   -----------------
</TABLE>

Certificate of Borrower
The undersigned Borrower certifies that:
A. To the best of my knowledge the information set forth on this Availability
Certificate is true and correct

B. To the best of my knowledge the representations and warranties made in of the
Loan and Security Agreement dated as of December 11, 2002 ("Agreement") among
Borrowers and Textron Financial Corporation are true and correct as of today's
date.

C. To the best of my knowledge, no Event of Default or Default has occurred
under the Agreement.

<PAGE>

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
and delivered by their proper and duly authorized offices, upon the date first
above written.

Great Lakes Capital Acceptance, LLC

_____________________________________
By George Luburich II - President

_____________________________________
Date

<PAGE>

                          TEXTRON FINANCIAL CORPORATION

                                December 11, 2002

George Luburich II, President
Great Lakes Capital Acceptance LLC
27 East Monroe Street, Suite 700
Chicago, IL 60603

George Luburich II, President
Great Lakes Funding I, LLC
27 East Monroe Street, Suite 700
Chicago, IL 60603

     RE: License Identified Pursuant to the Loan and Security Agreement dated
         December 11, 2002, by and among the Borrowers and Lender
         (the "Loan and Security Agreement")

Dear Mr. Luburich:

     All capitalized terms used herein shall have the meanings ascribed to such
terms in the Loan and Security Agreement, unless those terms are otherwise
defined herein.

     This letter is to confirm that Borrowers have agreed to obtain and maintain
all Licenses, registrations and notifications in the operations of their
respective businesses. If a Borrower is exempt from obtaining a License or
registration or from filing a notification in a state, such Borrower has agreed
to provide to Lender a letter or certificate of exemption issued by such state
in which its activities are exempt from obtaining a servicing, holding, or
selling license, unless with respect to servicing requirements, Borrowers have
engaged a third-party servicer that would otherwise provide an appropriate
substitute for such a servicing exemption. As of the date hereof, Exhibit A
attached hereto represents those states which may have laws or regulations
applicable to one or more of the Borrowers in respect to licensing, registration
and notification requirements relating to servicing, holding, selling, or
assigning first and second-lien residential mortgage loans, including without
limitation, loans with an interest rate greater than 12%. Exhibit A is not
necessarily comprehensive and is solely intended to identify jurisdictions that
have licensing requirements, which may be applicable to Borrowers' businesses.
Nothing set forth in this letter is intended to provide legal guidance or advice
to any Borrower, and it is each Borrower's obligation to determine which
licenses it is required to hold and to have pursuant to license reviews
conducted by its legal counsel, as required under the Loan and Security
Agreement.

                                   Sincerely,

                                   Assistant Vice President

The undersigned acknowledges receipt of this letter and understands and agrees
to the terms and conditions contained herein.

GREAT LAKES CAPITAL ACCEPTANCE, LLC            GREAT LAKES FUNDING I, LLC

By: /s/ George Luburich, II                    By: /s/ George Luburich, II
    ---------------------------------              -----------------------------

Its: Manager                                   Its: Manager
     --------------------------------               ----------------------------

Date: 12-11-02                                 Date: 12/11/02
      -------------------------------                ---------------------------

<PAGE>

                                    EXHIBIT A

1.  Arkansas
2.  California
3.  Connecticut
4.  Delaware
5.  Colorado
6.  Florida
7.  Georgia
8.  Hawaii
9.  Iowa
10. Indiana
11. Kansas
12. Kentucky
13. Main
14. Maryland
15. Michigan
16. Minnesota
17. Missouri
18. Nebraska
19. New Jersey
20. Nevada
21. Ohio
22. Pennsylvania
23. Oklahoma
24. Oregon
25. Texas
26. Utah
27. West Virginia
28. Wisconsin
29. Wyoming

<PAGE>

                                Schedule 1.1 (a)

                                  Mortgage File

       With respect to each Financial Asset, a Mortgage File shall mean:

1.     The original promissory note bearing all intervening endorsements,
       endorsed "Pay to the order of ________________ without recourse" and
       signed in the name of the last endorsee (the "Last Endorsee") by an
       authorized Person (in the event that the Financial Asset was acquired by
       the Last Endorsee in a merger, the signature must be in the following
       form: "[Last Endorsee], successor by merger to [name of predecessor]"; in
       the event that the Financial Asset was acquired or originated by the Last
       Endorsee while doing business under another name, the signature must be
       in the following form: "[Last Endorsee], formerly known as [previous
       name]").

2.     The original of any guaranty or other similar agreement executed in
       connection with the promissory note.

3.     (A) If such promissory note is secured by real property, the original
       mortgage with evidence of recording thereon, or a copy thereof together
       with an Officer's Certificate of the Borrower certifying that such
       represents a true, correct and complete copy of the original and that
       such original has been submitted for recordation in the appropriate
       governmental recording office of the jurisdiction where the mortgaged
       property is located, and (B) if such promissory note is secured by
       personal property the original security agreement, chattel mortgage or
       equivalent document and uniform commercial code financing statements,
       certificates of title or other perfection evidence relating thereto.

4.     The originals of all assumptions, modification, consolidation or
       extension agreements with evidence of recording thereon, or copies
       thereof together with an Officer's Certificate of the Borrower certifying
       that such represent true, correct and complete copies of the originals
       and that such originals have each been submitted for recordation in the
       appropriate governmental recording office of the jurisdiction where the
       mortgaged property is located.

5.     An original assignment of mortgage in blank for each Financial Asset, in
       form and substance acceptable for recording and signed in the name of the
       Last Endorsee (in the event that the Financial Asset was acquired by the
       Last Endorsee in a merger, the signature must be in the following form:
       "[Last Endorsee], successor by merger to [name of predecessor]"; in the
       event that the Financial Asset was acquired or originated while doing
       business under another name, the signature must be in the following form:
       "[Last Endorsee], formerly known as [previous name]").

6.     The originals of all intervening assignments of mortgage with evidence of
       recording thereon, showing an unbroken chain of title from the originator
       thereof to the Last Endorsee or copies thereof together with an Officer's
       Certificate of the Borrower certifying that such represent true, correct
       and complete copies of the originals and that

<PAGE>

       such originals have each been submitted for recordation in the
       appropriate governmental recording office of the jurisdiction where the
       mortgaged property is located.

7.     (A) If such promissory note is secured by real property, the original
       attorney's opinion of title and abstract of title or the original
       mortgagee title insurance policy, or if the original mortgagee title
       insurance policy has not been issued, the irrevocable commitment to issue
       the same, or if such promissory note is secured by personal property, a
       lien search.

       (B) From time to time, Borrower shall forward to the Custodial Agent
       additional original documents or additional documents evidencing any
       assumption, modification, consolidation or extension of a Financial Asset
       approved by Borrower, in accordance with the terms of the Loan Agreement,
       and upon receipt of any such other documents, the Custodial Agent shall
       hold such other documents as Lender shall request from time to time.

       (C) With respect to any documents which have been delivered or are being
       delivered to recording offices for recording and have not been returned
       to Borrower in time to permit their delivery hereunder at the time
       required, in lieu of delivering such original documents, Borrower shall
       deliver to Lender a true copy thereof with an Officer's Certificate
       certifying that such copy is a true, correct and complete copy of the
       original, which has been transmitted for recordation. Borrower shall
       deliver such original documents to the Custodial Agent promptly when they
       are received.

                                       -2-

<PAGE>

                                Schedule 1.1 (b)

                                 PERMITTED LIENS

                                      None

                                       -3-

<PAGE>

                                  Schedule 5.1

                     Conditions Precedent to Initial Advance

Execution and delivery by all parties signatory thereto, delivery of original,
or completion as the case may be, to the satisfaction of Textron Financial
Corporation, as Lender, and Lender's counsel of each of the following documents,
certificates, exhibits, schedules and items containing such information
requested by the Lender and its counsel and reflecting the absence of any
material fact or issues and in all respects satisfactory to Lender.

--------------------------------------------------------------------------------
A.     LOAN DOCUMENTS
--------------------------------------------------------------------------------
       1.   Loan and Security Agreement
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
            EXHIBIT B -   Form of Bailee Letter
--------------------------------------------------------------------------------
            EXHIBIT C -   Form of Revolving Note
--------------------------------------------------------------------------------
            EXHIBIT D -   Form of Borrowing Base Certificate and advance Request
--------------------------------------------------------------------------------
            Schedule 1.1 (a) - Mortgage File
--------------------------------------------------------------------------------
            Schedule 1.1 (b) - Permitted Liens
--------------------------------------------------------------------------------
            Schedule 5.1 - Conditions Precedent to Initial Advance
--------------------------------------------------------------------------------
            Schedule 6.1 - Organizational Structure
--------------------------------------------------------------------------------
            Schedule 6.4 - Taxes
--------------------------------------------------------------------------------
            Schedule 6.7 - Pending or Threatened Claims
--------------------------------------------------------------------------------
            Schedule 6.8 - Labor Matters
--------------------------------------------------------------------------------
            Schedule 6.12 - Indebtedness
--------------------------------------------------------------------------------
            Schedule 6.15 - Business and Collateral Locations
--------------------------------------------------------------------------------
            Schedule 6.16 - Intellectual Property
--------------------------------------------------------------------------------
            Schedule 7.17 - Deposit Accounts
--------------------------------------------------------------------------------
            Schedule 9.1(n) - Post-Closing Matters
--------------------------------------------------------------------------------
       2.   Revolving Draw Note $7,000,000 (co-borrower)
--------------------------------------------------------------------------------
       3.   Executed Information Certificates by GL Acceptance, GL Investments
--------------------------------------------------------------------------------
       4.   Security Agreements - Membership Interests/Stock
--------------------------------------------------------------------------------
                a.     GL Investments to pledge interests in GL Acceptance (LLC
                       membership interests)
                b.     George Luburich, II Revocable Trust (the "Trust") to
                       pledge interests in Gl Investments (stock)
                c.     GL Acceptance to pledge interests in GL Funding (LLC
                       membership interests)
--------------------------------------------------------------------------------
       5.   Stock Powers
--------------------------------------------------------------------------------
       6.   Delivery of original membership certificates/stock certificates, if
            applicable (Borrower to supply copies of certificates - front and
            back -- ASAP)
--------------------------------------------------------------------------------
       7.   Continuing Guaranty Unlimited by GL Investments
--------------------------------------------------------------------------------
       8.   Continuing guaranty Unlimited by Guarantor
--------------------------------------------------------------------------------
       9.   Loan Expense and Disbursement Statement
--------------------------------------------------------------------------------
       10.  Assignment of Lockbox Agreement
--------------------------------------------------------------------------------
       11.  Blocked account Agreement (PWMA as to form)
--------------------------------------------------------------------------------
       12.  Existing Lockbox Agreement with Harris Bank
--------------------------------------------------------------------------------
       13.  Landlord Waiver Agreement for each location which Borrower leases
            real estate (PWMA as to form
--------------------------------------------------------------------------------

<PAGE>

--------------------------------------------------------------------------------
               a.   27 East Monroe Street, Palmer House Hilton, Landlord
--------------------------------------------------------------------------------
     14.  Lender approval of all leases for Borrower Locations
--------------------------------------------------------------------------------
     15.  Collateral Agency Custodial Agreement
--------------------------------------------------------------------------------
     16.  Evidence that all original notes, mortgages and security documents are
          in possession of collateral Agent
--------------------------------------------------------------------------------
     17.  Control Agreement (Investment Account) with Exhibit
--------------------------------------------------------------------------------
     18.  Intentionally deleted
--------------------------------------------------------------------------------
B.   ORGANIZATIONAL DOCUMENTS/CERTIFICATES
--------------------------------------------------------------------------------
Borrower
--------------------------------------------------------------------------------
     19.  Certification of Member/Secretary of Assistant Secretary certifying
          resolutions authorizing execution of loan documents for GL Acceptance
          (form to be provided by PWMA)
--------------------------------------------------------------------------------
     20.  Closing Certificate of GL Acceptance (form to be provided by PWMA)
          with the following Exhibits:
--------------------------------------------------------------------------------
               a.   Certificate of Good Standing - State of Illinois
--------------------------------------------------------------------------------
               b.   Certified Copy of Articles of Organization - State of
                    Illinois
--------------------------------------------------------------------------------
               c.   Operating Agreement
--------------------------------------------------------------------------------
GL Funding
--------------------------------------------------------------------------------
     21.  Certification of Member/Secretary or Assistant Secretary certifying
          resolutions authorizing execution of loan documents for GL Funding
          (form to be provided by PWMA)
--------------------------------------------------------------------------------
     22.  Closing Certificate of GL Funding (form to be provided by PWMA) with
          the following Exhibits:
--------------------------------------------------------------------------------
               a.   Certificate of Good Standing - State of Illinois
--------------------------------------------------------------------------------
               b.   Certified Copy of Articles of Organization - State of
                    Illinois
--------------------------------------------------------------------------------
               c.   Operating Agreement
--------------------------------------------------------------------------------
GL Investments
--------------------------------------------------------------------------------
     23.  Certification of Secretary or Assistant Secretary certifying corporate
          resolutions authorizing execution of loan documents for GL Investments
          (form to be provided by PWMA)
--------------------------------------------------------------------------------
     24.  Closing Certificate of GL Investments (form to be provided by PWMA)
          with the following Exhibits:
--------------------------------------------------------------------------------
               a.   Certificates of Good Standing - State of Illinois
--------------------------------------------------------------------------------
               b.   Certified Copy of Articles of Incorporation - State of
                    Illinois
--------------------------------------------------------------------------------
               c.   Bylaws
--------------------------------------------------------------------------------
C.   UCC DOCUMENTS
--------------------------------------------------------------------------------
     25.  Authorization to File UCC Financing Statements (pre-file)
--------------------------------------------------------------------------------
     26.  UCC-1 Financing Statement for GL Acceptance (Personal Property and LLC
          membership interests) for filing with the Illinois Secretary of State
--------------------------------------------------------------------------------

                                       -5-

<PAGE>

--------------------------------------------------------------------------------
     27.  UCC-1 Financing Statement for GL Funding (Personal Property) for
          filing with the Illinois Secretary of State
--------------------------------------------------------------------------------
     28.  UCC-1 Financing Statement for GL Investments (LLC membership
          interests) for filing with the Illinois Secretary of State
--------------------------------------------------------------------------------
     29.  UCC-1 Financing Statement for Trust (stock) for filing with the
          Illinois Secretary of State
--------------------------------------------------------------------------------
D.   OPINIONS
--------------------------------------------------------------------------------
     30.  Opinion of Counsel to Borrower and guarantors with certificate to
          counsel attached (Form to be provided by PWMA)
--------------------------------------------------------------------------------
E.   MISCELLANEOUS CLOSING REQUIREMENTS
--------------------------------------------------------------------------------
     31.  Judgment, tax lien and pending litigation searches on GL Acceptance
--------------------------------------------------------------------------------
               a.   Cook County, IL
--------------------------------------------------------------------------------
               b.   Other locations, if necessary
--------------------------------------------------------------------------------
     32.  Judgment, tax lien and pending litigation searches on GL Funding
--------------------------------------------------------------------------------
               a.   Cook County, IL
--------------------------------------------------------------------------------
     33.  Judgment, tax lien and pending litigation searches on GL Investments
--------------------------------------------------------------------------------
               a.   Cook County, IL
--------------------------------------------------------------------------------
               b.   Other locations, if necessary
--------------------------------------------------------------------------------
     34.  UCC lien searches on GL Acceptance
--------------------------------------------------------------------------------
               a.   Illinois Secretary of State
--------------------------------------------------------------------------------
     35.  UCC lien searches on GL Funding
--------------------------------------------------------------------------------
               a.   Illinois Secretary of State
--------------------------------------------------------------------------------
     36.  UCC lien searched on GL Investments
--------------------------------------------------------------------------------
               a.   Illinois Secretary of State
--------------------------------------------------------------------------------
     37.  UCC lien searches on Guarantor, if necessary
--------------------------------------------------------------------------------
               a.   Illinois Secretary of State
--------------------------------------------------------------------------------
               b.   Other locations, if necessary
--------------------------------------------------------------------------------
     38.  Intentionally deleted
--------------------------------------------------------------------------------
     39.  Termination Statements as indicated by UCC lien searches and
          corresponding Authorization to File Termination Statements
--------------------------------------------------------------------------------
     40.  Copy of recent example of loan purchase agreement
--------------------------------------------------------------------------------
     41.  Copy of representative samples of the various types of consumer notes
          and mortgages purchased
--------------------------------------------------------------------------------
     42.  Copy of regulatory compliance report by Mullally & Zarski, LLC
--------------------------------------------------------------------------------
     43.  Payoff letter from current lender, Bank United (Washington Mutual)
--------------------------------------------------------------------------------
     44.  Lender Loss Payable and Additional Insured Insurance Endorsements for
          personal property, real property, and liability insurance naming
          Lender as mortgagee and lender loss payee for personal and real
          property and as additional insured for liability insurance (to be
          approved by PWMA, Form to be provided by PWMA)
--------------------------------------------------------------------------------
     45.  Certificates of Insurance for personal property, real property and
          liability insurance naming Lender as mortgagee and lender loss payee
          for personal and real property insurance
--------------------------------------------------------------------------------

                                       -6-

<PAGE>

--------------------------------------------------------------------------------
          and as additional insured for liability insurance (to be approved by
          PWMA)
--------------------------------------------------------------------------------
     46.  Coverage summaries of personal and real property and liability
          insurance policies naming Lender as mortgagee, lender loss payee and
          additional insured (to be approved by PWMA)
--------------------------------------------------------------------------------
     47.  Opening Borrower Base Report (Lender to provide form)
--------------------------------------------------------------------------------
     48.  Evidence of notification of account debtors to pay to Lockbox
--------------------------------------------------------------------------------
     49.  Copy of George Luburich, II Revocable Trust u/a/d February 27, 2001
--------------------------------------------------------------------------------
     50.  Compliance review and opinion on consumer regulatory laws satisfactory
          to Lender
--------------------------------------------------------------------------------
     51.  Side Letter re notification of license requirements
--------------------------------------------------------------------------------
     52.  Evidence that Cole Taylor Bank account has been closed
--------------------------------------------------------------------------------
     53.  Advertising Permission Letters
--------------------------------------------------------------------------------
               a.   GL Acceptance
--------------------------------------------------------------------------------
               b.   GL Funding
--------------------------------------------------------------------------------

                                       -7-

<PAGE>

                                  Schedule 6.1

                             Organization Structure

                               See attached Chart

                       Great Lakes Capital Acceptance LLC

Classes of Membership Interest: One Class

Number of Units Outstanding: Individual Membership Interest Units are not issued
as units for the Borrower.

Owners: Great Lakes Capital Investments, Inc., an Illinois corporation owns all
of the membership interests of Great Lakes Capital Acceptance LLC

Certificate Numbers: N/A - Membership Interests are uncertificated

Employer Tax Identification: 36-4355017

Borrower's Jurisdiction of Organization: Illinois

Great Lakes Funding I, LLC

Classes of Membership Interest

Number of Units Outstanding: Individual Membership Interest Units are not issued
as units for the Borrower.

Owners: Great Lakes Capital Acceptance LLC owns all of the membership interests
of Great Lakes Funding I, LLC

Certificate Numbers: N/A - Membership Interests are uncertificated.

Employer Tax Indemnification: This entity is taxed under Great lakes Capital
Acceptance LLC's EIN.

Borrower's Jurisdiction of Organization: Illinois

                                       -8-

<PAGE>

                                     [Chart]

<PAGE>

                                  Schedule 6.4

                                      Taxes

                                      None

                                  Schedule 6.7

                    Schedule of Pending or Threatened Claims

                                      None

                                  Schedule 6.8

                                  Labor Matters

                                      None

                                  Schedule 6.12

                            Schedule of Indebtedness

                                      None

<PAGE>

                                  Schedule 6.15

                  Schedule of business and Collateral Locations

                       Great Lakes Capital Acceptance, LLC

                          Schedule of Office Locations

One Location for Great Lakes Capital Acceptance, LLC, Great Lakes Capital
Investments, Inc. and Great Lakes Funding I, LLC.

27 E. Monroe St., Suite 700
Chicago, IL  60603

                                  Schedule 6.16
                        Schedule of Intellectual Property

                                      None

<PAGE>

                                  Schedule 7.17

                       Great Lakes Capital Acceptance, LLC

                            Schedule of Bank Accounts

Harris Bank Frankfort
8400 W. 159/th/ St.
Orland Park, IL 60462

                  Payment Collection
                  General Disbursement

<PAGE>

                                 Schedule 9.1(n)

                              POST-CLOSING MATTERS

         (a) To the extent not delivered on or prior to the Closing Date, each
Borrower will, and shall cause each Loan Party, to promptly, but in no event
later than seven (7) days after the date of this Agreement, deliver to Lender
the following documents, each in form and substance satisfactory to Lender:

         1.  Evidence that each Borrower has applied for all required serving,
collection, mortgage and other licenses identified by Lender as required for
such Borrower's business or operations, or in the alternative has begun
contractual negotiations for a third-party servicer possessing an appropriate
License.

         (b) To the extent not delivered on or prior to the Closing Date, each
Borrower will, and shall cause each Loan Party, to promptly, but in no event
later than 90 days after the date of the Agreement, deliver to Lender the
following documents, each in form and substance satisfactory to Lender:

         1.  Evidence that each Borrower has obtained all Licenses, has entered
into all required servicing agreements or has sold all Financial Assets for
which no appropriate License or service arrangement exists pursuant to Section
7.22 of this Agreement.

         2.  Borrower shall deliver to Lender a complete written analysis, in
form and substance satisfactory to Lender, prepared by Borrowers' counsel
acceptable to Lender, of all state and local laws or regulations applicable to
the loans held by Borrowers, including, without limitation, regulations relating
to usury, high rate loans, and similar matters.

         3.  A copy of Borrowers' policies and procedures for ensuring
compliance with applicable state and local laws governing all Financial Assets
held by any Borrower.

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