Document:

air10-1.htm

     

     

     

    EXECUTION
      VERSION

    

    

    

    

    

    

    

    

    $300,000,000

     

    CREDIT
      AGREEMENT
      (2008-A)

     

    dated
      as of February 5, 2008

     

    by
      and among

     

    AIRCASTLE
      INVESTMENT HOLDINGS 3 LIMITED,

    

    and

     

    THE
      BORROWERS PARTY HERETO FROM TIME TO TIME,

    as
      Borrowers,

     

    JPMORGAN
      CHASE BANK, N.A., and

    CALYON
      NEW YORK BRANCH,

    as
      Lenders

     

    JPMORGAN
      CHASE BANK, N.A.,

    as
      Agent

     

    
      J.P.
        MORGAN SECURITIES INC.,
and

      CALYON
        NEW YORK BRANCH

      as
        Joint Lead Arrangers

      

      and

       

      THE
        OTHER LENDERS PARTY HERETO FROM TIME TO TIME

       

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Table
      of
      Contents

    

    
      	
              Page

            
	
              ARTICLE
                I

              Definitions
                and Terms

            
	 	 	 
	
              1.1.

            	
              Definitions

            	
              1

            
	
              1.2.

            	
              Rules
                of Interpretation

            	
              25

            
	 	 	 
	
              ARTICLE
                II

              The
                Revolving Credit Facility

            
	 	 	 
	
              2.1.

            	
              Revolving
                Loans

            	
              26

            
	
              2.2.

            	
              Payment
                of Interest

            	
              27

            
	
              2.3.

            	
              Payment
                of Principal

            	
              28

            
	
              2.4.

            	
              Manner
                of Payment

            	
              29

            
	
              2.5.

            	
              Pro
                Rata Payments

            	
              30

            
	
              2.6.

            	
              Reductions

            	
              30

            
	
              2.7.

            	
              Conversions
                and Elections of Subsequent Interest Periods

            	
              30

            
	
              2.8.

            	
              Increase
                and Decrease in Amounts

            	
              31

            
	
              2.9.

            	
              Fees

            	
              31

            
	
              2.10.

            	
              Deficiency
                Advances

            	
              31

            
	
              2.11.

            	
              Use
                of Proceeds

            	
              32

            
	
              2.12.

            	
              Designation
                of Borrowing Affiliate; Releases

            	
              32

            
	
              2.13.

            	
              Joint
                and Several Liability

            	
              33

            
	
              2.14.

            	
              Eligible
                Lease Involving Eligible Intermediary

            	
              34

            
	 	 	 
	
              ARTICLE
                III

              Security

            
	 	 	 
	
              3.1.

            	
              Security

            	
              34

            
	
              3.2.

            	
              Further
                Assurances

            	
              34

            
	
              3.3.

            	
              Information
                Regarding Collateral

            	
              35

            
	
              3.4.

            	
              Quiet
                Enjoyment

            	
              35

            
	 	 	 
	
              ARTICLE
                IV

              Change
                in Circumstances

            
	 	 	 
	
              4.1.

            	
              Requirements
                of Law

            	
              35

            
	
              4.2.

            	
              Limitation
                on Types of Loans

            	
              36

            
	
              4.3.

            	
              Illegality

            	
              37

            
	
              4.4.

            	
              Treatment
                of Affected Loans

            	
              37

            
	
              4.5.

            	
              Compensation

            	
              38

            
	
              4.6.

            	
              Taxes

            	
              38

            
	 	 	 
	
              ARTICLE
                V

              Conditions
                to Making Loans

            
	 	 	 
	
              5.1.

            	
              Conditions
                of Closing

            	
              41

            
	
              5.2.

            	
              Conditions
                of Revolving Loans.

            	
              43

            
	
              5.3.

            	
              Conditions
                of Subsequent Advances Under Revolving Loans.

            	
              46

            

    

     

    
      
        
        

      

      
        i

        
          

        

      

      
        
        

      

    

     

    
      	
              ARTICLE
                VI

              Representations
                and Warranties

            
	 	 	 
	
              6.1.

            	
              Organization
                and Authority

            	
              47

            
	
              6.2.

            	
              Loan
                Documents

            	
              47

            
	
              6.3.

            	
              Solvency

            	
              48

            
	
              6.4.

            	
              Subsidiaries
                and Stockholders

            	
              48

            
	
              6.5.

            	
              Ownership
                Interests

            	
              48

            
	
              6.6.

            	
              Liens

            	
              48

            
	
              6.7.

            	
              Title
                to Properties

            	
              48

            
	
              6.8.

            	
              Taxes

            	
              48

            
	
              6.9.

            	
              Other
                Agreements

            	
              49

            
	
              6.10.

            	
              Litigation

            	
              49

            
	
              6.11.

            	
              Federal
                Regulations

            	
              49

            
	
              6.12.

            	
              Investment
                Company

            	
              49

            
	
              6.13.

            	
              Patents,
                Etc

            	
              50

            
	
              6.14.

            	
              No
                Untrue Statement

            	
              50

            
	
              6.15.

            	
              No
                Consents, Etc

            	
              50

            
	
              6.16.

            	
              Employee
                Benefit Plans

            	
              50

            
	
              6.17.

            	
              No
                Default

            	
              51

            
	
              6.18.

            	
              Environmental
                Laws

            	
              51

            
	
              6.19.

            	
              Employment
                Matters

            	
              51

            
	
              6.20.

            	
              Taxes.

            	
              51

            
	
              ARTICLE
                VII

              Affirmative
                Covenants

            
	 
	
              7.1.

            	
              Financial
                Reports, Etc

            	
              52

            
	
              7.2.

            	
              Maintain
                Properties

            	
              53

            
	
              7.3.

            	
              Existence,
                Qualification, Etc

            	
              53

            
	
              7.4.

            	
              Regulations
                and Taxes

            	
              53

            
	
              7.5.

            	
              Insurance

            	
              53

            
	
              7.6.

            	
              True
                Books

            	
              53

            
	
              7.7.

            	
              Right
                of Inspection

            	
              54

            
	
              7.8.

            	
              Observe
                all Laws

            	
              54

            
	
              7.9.

            	
              Governmental
                Licenses

            	
              54

            
	
              7.10.

            	
              Covenants
                Extending to Other Persons

            	
              54

            
	
              7.11.

            	
              Officer’s
                Knowledge of Default

            	
              54

            
	
              7.12.

            	
              Suits
                or Other Proceedings

            	
              54

            
	
              7.13.

            	
              Notice
                of Environmental Complaint or Condition

            	
              55

            
	
              7.14.

            	
              Environmental
                Compliance

            	
              55

            
	
              7.15.

            	
              Indemnification

            	
              55

            
	
              7.16.

            	
              Further
                Assurances

            	
              55

            
	
              7.17.

            	
              Hedging
                Agreements

            	
              55

            
	
              7.18.

            	
              Continued
                Operations

            	
              56

            
	
              7.19.

            	
              Maintenance
                of Eligible Assets; Other Covenants and Restrictions;
                Non-Discrimination

            	
              56

            
	
              7.20.

            	
              Re-registration
                of Eligible Assets

            	
              56

            

    

     

     

    
      
        
        

      

      
        ii

        
          

        

      

      
        
        

      

    

     

    
      	
              7.21.

            	
              Employee
                Benefit Plans

            	
              56

            
	
              7.22.

            	
              Accounts

            	
              56

            
	
              7.23.

            	
              Eligible
                Lease; Lessee Notice

            	
              56

            
	 	 	 
	
              ARTICLE
                VIII

              Negative
                Covenants

            
	 	 	 
	
              8.1.

            	
              Acquisitions

            	
              57

            
	
              8.2.

            	
              Capital
                Expenditures

            	
              57

            
	
              8.3.

            	
              Liens

            	
              57

            
	
              8.4.

            	
              Indebtedness

            	
              58

            
	
              8.5.

            	
              Transfer
                of Assets

            	
              59

            
	
              8.6.

            	
              Subsidiaries;
                Investments

            	
              59

            
	
              8.7.

            	
              Merger
                or Consolidation

            	
              59

            
	
              8.8.

            	
              Transactions
                with Affiliates

            	
              60

            
	
              8.9.

            	
              Employee
                Benefit Plans; Employees

            	
              60

            
	
              8.10.

            	
              Fiscal
                Year

            	
              60

            
	
              8.11.

            	
              Dissolution,
                etc

            	
              60

            
	
              8.12.

            	
              Change
                in Control

            	
              60

            
	
              8.13.

            	
              Negative
                Pledge Clauses

            	
              60

            
	
              8.14.

            	
              Partnerships

            	
              60

            
	
              8.15.

            	
              Business
                and Operations

            	
              61

            
	
              8.16.

            	
              Ownership,
                Operation and Leasing of Financed Eligible Assets

            	
              61

            
	
              8.17.

            	
              Bank
                Accounts

            	
              61

            
	
              8.18.

            	
              Representations
                Regarding Agent and Lenders

            	
              61

            
	
              8.19.

            	
              AIH
                III, the Irish Holdco Party.

            	
              61

            
	
              8.20.

            	
              Organizational
                Documents

            	
              62

            
	
              8.21.

            	
              Borrowing
                Base Covenant

            	
              62

            
	 	 	 
	
              ARTICLE
                IX

              Events
                of Default and Acceleration

            
	 	 	 
	
              9.1.

            	
              Events
                of Default

            	
              62

            
	
              9.2.

            	
              Agent
                to Act

            	
              65

            
	
              9.3.

            	
              Cumulative
                Rights

            	
              66

            
	
              9.4.

            	
              No
                Waiver

            	
              66

            
	
              9.5.

            	
              Allocation
                of Proceeds

            	
              66

            
	
              9.6.

            	
              Activities
                of Eligible Carriers

            	
              66

            
	 	 	 
	
              ARTICLE
                X

              The
                Agent

            
	 	 	 
	
              10.1.

            	
              Appointment,
                Powers, and Immunities

            	
              67

            
	
              10.2.

            	
              Reliance
                by Agent

            	
              68

            
	
              10.3.

            	
              Defaults

            	
              68

            
	
              10.4.

            	
              Rights
                as Lender

            	
              68

            
	
              10.5.

            	
              Indemnification

            	
              69

            
	
              10.6.

            	
              Non-Reliance
                on Agent and Other Lenders

            	
              69

            
	
              10.7.

            	
              Resignation
                of Agent

            	
              69

            

    

     

    
      
        
        

      

      
        iii

        
          

        

      

      
        
        

      

    

    
 

    
      	
              10.8.

            	
              Fees

            	
              70

            
	 
	
              ARTICLE
                XI

            
	
              Miscellaneous

            
	 	 	 
	
              11.1.

            	
              Assignments
                and Participations

            	
              70

            
	
              11.2.

            	
              Notices

            	
              71

            
	
              11.3.

            	
              Right
                of Set-off; Adjustments

            	
              73

            
	
              11.4.

            	
              Survival

            	
              74

            
	
              11.5.

            	
              Expenses

            	
              74

            
	
              11.6.

            	
              Amendments
                and Waivers

            	
              74

            
	
              11.7.

            	
              Counterparts

            	
              75

            
	
              11.8.

            	
              Return
                of Funds

            	
              75

            
	
              11.9.

            	
              Indemnification;
                Limitation of Liability

            	
              75

            
	11.10.	Joint
              Lead Arrangers	77
	
              11.11.

            	
              Severability

            	
              77

            
	
              11.12.

            	
              Entire
                Agreement

            	
              77

            
	
              11.13.

            	
              Payments

            	
              77

            
	
              11.14.

            	
              Confidentiality

            	
              77

            
	
              11.15.

            	
              Governing
                Law; Waiver of Jury Trial

            	
              78

            
	
              11.16.

            	
              Judgment
                Currency

            	
              79

            
	
              11.17.

            	
              USA
                PATRIOT Act

            	
              79

            

    

     

     

    
      
        
        

      

      
        iv

        
          

        

      

      
        
        

      

    

     

    EXHIBITS

    

    
      	
              EXHIBIT
                A

            	
              Applicable
                Commitment Percentages

            	 
	
              EXHIBIT
                B

            	
              Form
                of Assignment and Acceptance

            	 
	
              EXHIBIT
                C

            	
              Notice
                of Appointment (or Revocation) of Authorized
                Representative

            
	
              EXHIBIT
                D

            	
              Form
                of Borrowing Notice

            	 
	
              EXHIBIT
                E

            	
              Form
                of Interest Rate Selection Notice

            	 
	
              EXHIBIT
                F

            	
              [reserved]

            	 
	
              EXHIBIT
                G-1

            	
              Form
                of Domestic Counsel Opinion

            	 
	
              EXHIBIT
                G-2

            	
              Form
                of FAA Counsel Opinion at Funding

            	 
	
              EXHIBIT
                G-3

            	
              Form
                of Foreign Counsel Opinion as to Borrower

            	 
	
              EXHIBIT
                G-4

            	
              Form
                of Foreign Counsel Opinion as to Lease and Lessee

            	 
	
              EXHIBIT
                H

            	
              Compliance
                Certificate

            	 
	
              EXHIBIT
                I

            	
              Form
                of Facility Guaranty

            	 
	
              EXHIBIT
                J

            	
              Form
                of Security Agreement

            	 
	
              EXHIBIT
                K

            	
              List
                of Approved Aircraft Models

            	 
	
              EXHIBIT
                L

            	
              Required
                Insurance on Each Aircraft

            	 
	
              EXHIBIT
                M

            	
              Form
                of Lessee Notice

            	 
	
              EXHIBIT
                N

            	
              Form
                of Account Control Agreement

            	 
	
              EXHIBIT
                O

            	
              Form
                of Lockbox Agreement

            	 
	
              EXHIBIT
                P

            	
              Form
                of Accession Agreement for Irish Holdco Party

            	 
	
              EXHIBIT
                Q

            	
              Form
                of Assumption Letter

            	 
	
              EXHIBIT
                R

            	
              Borrowing
                Base Certificate

            	 
	
              EXHIBIT
                S-1

            	
              Form
                of Pledge and Security Agreement (for pledged beneficial interest
                in
                Holdings Subsidiary Trust)

            
	
              EXHIBIT
                S-2

            	
              Form
                of Pledge and Security Agreement (for pledged interest in Holdings
                SPC,
                

              Beneficial
                Owner, Applicable Intermediary or
                other  Subsidiary)

            
	
              EXHIBIT
                S-3

            	
              Form
                of Bermuda Pledge

            	 
	
              EXHIBIT
                S-4

            	
              Form
                of Irish Pledge

            	 
	 	 	 
	 	 	 
	
              SCHEDULES

            	 	 
	 	 
	
              Schedule
                1.1

            	
              Certain
                Persons who are not Eligible Assignees

            
	
              Schedule
                3.3

            	
              Information
                Regarding Collateral

            
	
              Schedule
                6.7

            	
              Existing
                Liens

            
	
              Schedule
                6.8

            	
              Tax
                Matters

            
	
              Schedule
                6.10

            	
              Litigation

            
	
              Schedule
                7.19(a)

            	
              Maintenance,
                Return, Alteration, Replacement, Pooling and Lease

            
	
              Schedule
                8.4

            	
              Indebtedness

            

    

     

     

    
      
        
        

      

      
        v

        
          

        

      

      
        
        

      

    

     

     

    CREDIT
      AGREEMENT

     

    THIS
      CREDIT AGREEMENT (2008-A), dated as of February 5, 2008 (the “Agreement”), made
      by and among, AIRCASTLE INVESTMENT HOLDINGS 3 LIMITED, an exempted company
      organized and existing under the laws of Bermuda (“AIH III”), any IRISH HOLDCO
      (as defined below) who hereafter accedes hereto in accordance with Section
      5.1
      and certain Holdings Subsidiary Trusts and Holdings SPCs (as defined below)
      designated as Borrowing Affiliates hereunder (such Holdings Subsidiary Trusts
      and Holdings SPCs being referred to individually as a “Borrower” or collectively
      as the “Borrowers”), JPMORGAN CHASE BANK, N.A., a national banking association,
      in its capacity as a Lender (“JPMCB”), CALYON NEW YORK BRANCH, and each other
      financial institution party hereto (such financial institutions, and their
      successors and assigns, a “Lender”; collectively the “Lenders”), JPMORGAN CHASE
      BANK, N.A., in its capacity as agent for the Lenders (in such capacity, and
      together with any successor agent appointed in accordance with the terms of
      Section 10.7,
      the “Agent”) and
      J.P. MORGAN SECURITIES INC.
      and
      CALYON NEW YORK BRANCH as joint lead arrangers
      (in such
      capacity, the “Joint
      Lead Arrangers”);

     

    WITNESSETH:

     

    WHEREAS,
      the Borrowers have requested that the Lenders make available to the Borrowers
      a
      revolving credit facility of up to $300,000,000, the proceeds of which are
      to be
      used solely to provide interim financing for the purchase or refinancing by
      the
      Borrowers of Eligible Assets (as hereinafter defined); and

     

    WHEREAS,
      the Lenders are willing to make such revolving credit facility available to
      the
      Borrowers upon the terms and conditions set forth herein;

     

    NOW,
      THEREFORE, the Borrowers, the Lenders and the Agent hereby agree as
      follows:

     

    ARTICLE
      I

     

    DEFINITIONS
      AND
      TERMS

     

    1.1.           Definitions.  For
      the purposes of this Agreement, in addition to the definitions set forth above,
      the following terms shall have the respective meanings set forth
      below:

     

    “Accelerated
      Maturity Date” means the date that is 180 days following the initial closing of
      the ACS 2008-1 Transaction.

     

    “Account”
      has the meaning given in the Lockbox Agreement.

     

    “Account
      Control Agreement” means an account control agreement in substantially the form
      of Exhibit
      N.

     

    “Acquisition”
      means the acquisition of any beneficial interest, equity interest or other
      ownership interest in another Person (including the purchase of an option,
      warrant or 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    convertible
      or similar type security to acquire such interest at the time it becomes
      exercisable by the holder thereof), whether by purchase of such interest or
      upon
      exercise of an option or warrant for, or conversion of securities into, such
      interest.

     

    “ACS
      2008-1 Transaction” means a transaction or related series of transactions
      involving a securitization or long term bank financing of a portfolio of
      interests in or leases of Eligible Assets (including Other Eligible Assets)
      or
      other permanent public or private capital markets or lending transaction in
      respect of, inter alia, Eligible Assets and Other Eligible Assets (which, in
      each case, does not constitute bridge or interim financing) for the benefit
      of
      the Parent or any of its direct or indirect Subsidiaries the aggregate net
      proceeds of which are not less than $300,000,000.

     

    “Affiliate”
      means any Person (i) which directly or indirectly through one or more
      intermediaries controls, or is controlled by, or is under common control with
      any Guarantor or any Borrower; or (ii) which beneficially owns or holds 10%
      or
      more of any class of the outstanding voting stock (or in the case of a Person
      which is not a corporation, 10% or more of the equity interest or beneficial
      interest) of any Guarantor or any Borrower; or 10% or more of any class of
      the
      outstanding voting stock (or in the case of a Person which is not a corporation,
      10% or more of the equity interest or beneficial interest) of which is
      beneficially owned or held by any Guarantor or any Borrower; provided, however,
      at the time
      any Guarantor registers any security issued by it pursuant to the Securities
      Act
      of 1933, as amended, the figure “10%” used in this definition shall
      automatically change to “5%” without further action.  The term
“control” means the possession, directly or indirectly, of the power to direct
      or cause the direction of the management and policies of a Person, whether
      through ownership of voting stock, by contract or otherwise.

     

    “Agreement”
      has the meaning given to such term in the first recital to this
      Agreement.

     

    “Aggregate
      Allowed Percentage” means the percentage obtained by dividing (a) the sum of the
      amount in Dollars of the Allowed Percentages of all Financed Eligible Assets
      by
      (b) the Borrowing Base.

     

    “AHC
      Ltd.” means Aircastle Holding Corporation Limited, an exempted company organized
      and existing under the laws of Bermuda.

     

    “AIH
      III” means Aircastle Investment Holdings 3 Limited.

     

    “Aircraft”
      means any Stage III fixed wing airframe together with the jet Engines therefor
      (whether or not) affixed thereto.

     

    “Aircraft
      Portfolio” means the collective reference to all of the Eligible Assets owned by
      any Subsidiary of AIH III or Irish Holdco Party at any one time.

     

    “Allowed
      Percentage” of the Purchase Price of an Eligible Asset means (A) in respect of
      any Loans (other than Loans to a Borrower to finance Approved Improvements
      

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    or
      a Qualified Conversion (a) Loans in a principal amount up to 65% of the Purchase
      Price of each Eligible Asset that is not an Old Eligible Aircraft and 50% of
      the
      Purchase Price of each Eligible Asset that is an Old Eligible Aircraft or (b)
      if
      less, Loans in a principal amount up to the percentage of the Purchase Price
      of
      such Eligible Asset obtained by dividing (i) 70% of the Maintenance Adjusted
      Current Market Value of such Eligible Asset by (ii) the Purchase Price of such
      Eligible Asset and (B) in respect of any Loans for Approved Improvements or
      a
      Qualified Conversion, 65% of the actual expenditures which qualify as Approved
      Improvements or Qualified Conversion.

     

    “Applicable
      Borrower” means, with respect to any Financed Eligible Asset, the Borrower that
      has requested or received a Loan to enable such Borrower to purchase or
      refinance such Financed Eligible Asset.

     

    “Applicable
      Carrier” means, with respect to any Financed Eligible Asset, the Eligible
      Carrier that has leased such Financed Eligible Asset from the Applicable
      Borrower, or from the Applicable Intermediary in accordance with Section
      2.14.

     

    “Applicable
      Commitment Percentage” means, with respect to each Lender at any time, a
      fraction, the numerator of which shall be such Lender’s Revolving Credit
      Commitment and the denominator of which shall be the Total Revolving Credit
      Commitment, which Applicable Commitment Percentage for each Lender as of the
      Closing Date is as set forth in Exhibit A; provided
      that the
      Applicable Commitment Percentage of each Lender shall be increased or decreased
      to reflect any assignments to or by such Lender effected in accordance with
      Section
      11.1.

     

    “Applicable
      Foreign Aviation Law” means, with respect to any Eligible Asset, any applicable
      law (other than the FAA Act) of any country or subdivision thereof, governing
      the registration, ownership, operation, or leasing  of all or any part
      of such Eligible Asset, or the creation, recordation, maintenance, perfection
      or
      priority or Liens on all or any part of such Eligible Asset.

     

    “Applicable
      Foreign Jurisdiction” means, with respect to any Eligible Asset, any
      jurisdiction that administers an Applicable Foreign Aviation Law.

     

    “Applicable
      Intermediary” means, with respect to any Financed Eligible Asset, the Eligible
      Intermediary that has leased such Eligible Asset from the Applicable Borrower,
      and has leased such Eligible Asset to the Applicable Carrier, in each case
      in
      accordance with Section
      2.14.

     

    “Applicable
      Lease Cure Period” has the meaning assigned thereto in Section
      9.6.

     

    “Applicable
      Lending Office” means, for each Lender and for each Type of Loan, the “Lending
      Office” for such Lender (or of an affiliate of such Lender) designated for such
      Type of Loan on the signature pages hereof or such other office of such Lender
      (or an affiliate of such Lender) as such Lender may from time to time specify
      to
      the Agent and the Borrowers by written notice in accordance with the terms
      hereof as the office by which its Loans are to be made and
      maintained.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    “Applicable
      Margin” means:

     

    (a)           with
      respect to the Eurodollar Rate, 1.50% prior to the Initial Maturity Date and
      2.50% thereafter; and

     

    (b)           with
      respect to the Base Rate, 0.50% prior to the Initial Maturity Date and 1.50%
      thereafter.

     

    “Appraiser”
      means Ascend Limited (a division of Airclaims).

     

    “Approved
      Conversion Company” means The Boeing Company and others to be mutually agreed by
      the Borrowers and the Administrative Agent.

     

    “Approved
      Improvements” means improvements made or added to an Eligible Asset acceptable
      to the Agent in its reasonable judgment.

     

    “Assignment
      and Acceptance” means an Assignment and Acceptance substantially in the form of
Exhibit B (with
      blanks appropriately filled in) delivered to the Agent in connection with an
      assignment of a Lender’s interest under this Agreement pursuant to Section
      11.1.

     

    “Assumption
      Letter” means an Assumption Letter in substantially the form of Exhibit
      Q.

     

    “Authorized
      Representative” means any of the President, Chief Executive Officer, Chief
      Operating Officer, Chief Financial Officer or Vice President of the Parent,
      AIH
      III or the Irish Holdco Party, as applicable, or any Beneficial Owner, in each
      case as authorized representative for each of the Borrowers, or any other Person
      expressly designated by the Board of Directors of each of the Borrowers (or
      the
      appropriate committee thereof) as an Authorized Representative of each of the
      Borrowers as set forth from time to time in a certificate in the form of Exhibit
      C.

     

    “Base
      Rate” means, for any day, the rate per annum equal to the sum of (a) the higher
      of (i) the Federal Funds Rate for such day plus one-half of one percent (0.5%)
      and (ii) the Prime Rate for such day, plus (b) the Applicable
      Margin.  Any change in the Base Rate due to a change in the Prime Rate
      or the Federal Funds Rate shall be effective on the effective date of such
      change in the Prime Rate or Federal Funds Rate.

     

    “Base
      Rate Loan” means a Loan for which the rate of interest is determined by
      reference to the Base Rate.

     

    “Beneficial
      Owner” means, with respect to any Holdings Subsidiary Trust, AIH III or the
      Irish Holdco Party or any Person who is a direct or indirect wholly-owned
      subsidiary of AIH III or the Irish Holdco Party, in any case holding a
      beneficial interest in such Holdings Subsidiary Trust.

     

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

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    “Borrower”
      has the meaning given to such term in the preamble to this
      Agreement.

     

    “Borrowing
      Affiliate” means any direct or indirect wholly-owned Subsidiary of AIH III or
      the Irish Holdco Party and any Holdings Subsidiary Trust or Holdings SPC that
      in
      either case is designated as a Borrowing Affiliate hereunder pursuant to Section 2.12
      hereof.

     

    “Borrowing
      Base” means, as of any date of determination, the aggregate of the Purchase
      Price of all Eligible Assets then owned by any Borrower or any Subsidiary
      thereof.

     

    “Borrowing
      Base Certificate” means a certificate substantially in the form of Exhibit
      R.

     

    “Borrowing
      Base Covenant” has the meaning set forth with respect to such term in Section
      8.21.

     

    “Borrowing
      Base Event” means, with respect to any Borrower, if (a) one or more judgments or
      orders where the amount not covered by insurance (or the amount as to which
      the
      insurer denies liability) is in excess of $250,000 is rendered against such
      Borrower or any Subsidiary thereof, or (b) there is any attachment, injunction
      or execution against any of such Borrower’s or Subsidiaries’ properties for any
      amount in excess of $250,000 in the aggregate; and such judgment, attachment,
      injunction or execution remains unpaid, unstayed, undischarged, unbonded or
      undismissed for a period of thirty (30) days.

     

    “Borrowing
      Notice” means the notice delivered by an Authorized Representative in connection
      with a Loan under the Revolving Credit Facility, in the form of Exhibit
      D.

     

    “Business
      Day” means, (i) with respect to any Base Rate Loan, any day which is not a
      Saturday, Sunday or a day on which banks in the State of New York are authorized
      or obligated by law, executive order or governmental decree to be closed and,
      (ii) with respect to any Eurodollar Rate Loan, any day which is a Business
      Day,
      as described above, and on which the relevant international financial markets
      are open for the transaction of business contemplated by this Agreement in
      London, England and New York, New York.

     

    “Calculation
      Date” mean the date three Business Days prior to each Payment Date.

     

    “Capital
      Expenditures” means, with respect to the Borrowers and their respective
      Subsidiaries, for any period the sum of (without
      duplication) (i) all expenditures (whether paid in cash or accrued as
      liabilities) by any Borrower or any Subsidiary during such period for items
      that
      would be classified as “property, plant or equipment” or comparable items on the
      consolidated balance sheet of such Borrower and its Subsidiaries, including
      without limitation all transactional costs incurred in connection with such
      expenditures 

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    provided
      the same have been capitalized, excluding, however, the amount of any Capital
      Expenditures paid for with proceeds of casualty insurance, as evidenced in
      writing and submitted to the Agent together with any compliance certificate
      delivered pursuant to Section 7.1(a) or
(b),
      and (ii)
      with respect to any Capital Lease entered into by any Borrower or its
      Subsidiaries during such period, the present value of the lease payments due
      under such Capital Lease over the term of such Capital Lease applying a discount
      rate equal to the interest rate provided in such lease (or in the absence of
      a
      stated interest rate, that rate used in the preparation of the financial
      statements described in Section 7.1(a)), all
      the foregoing in accordance with GAAP.

     

    “Capital
      Leases” means all leases which have been or should be capitalized in accordance
      with GAAP as in effect from time to time including Statement No. 13 of the
      Financial Accounting Standards Board and any successor thereof.

     

    “Capital
      Stock” means, with respect to any Person, all of the shares, interests, rights,
      participations or other equivalents (however designated) of capital stock of
      (or
      other ownership or profit interests or units in) such Person and all of the
      warrants, options or other rights for the purchase, acquisition or exchange
      from
      such Person of any of the foregoing (including through convertible
      securities).

     

    “Change
      of Control” means, at any time, 100% of the beneficial ownership of (a) any
      Borrower or any Eligible Intermediary party to the Credit Agreement at such
      time
      is not directly or indirectly owned by AIH III or the Irish Holdco Party or
      (b)
      AIH III or the Irish Holdco Party is not directly or indirectly owned by
      Parent.

     

    “Closing
      Date” means the date as of which this Agreement is executed by the Borrowers,
      the Lenders and the Agent and on which the conditions set forth in Section 5.1 have been
      satisfied.

     

    “Code”
      means the Internal Revenue Code of 1986, as amended, and any regulations
      promulgated thereunder.

     

    “Collateral”
      means, collectively, all property of any Borrower, any Subsidiary, any Eligible
      Intermediary, AIH III or the Irish Holdco Party or any other Person in which
      the
      Agent or any Lender is granted a Lien as security for all or any portion of
      the
      Obligations under any Security Instrument including, without limitation, the
      Leases, the Pledged Interests, the Securitization Interests and the other
      collateral described in such Security Agreement, Pledge Agreement, Lockbox
      Agreement and other Security Instrument.  For the avoidance of doubt,
      none of the Security Instruments shall provide for the grant of a perfected
      security interest in the Financed Eligible Assets.

     

    “Contingent
      Obligation” of any Person means all contingent liabilities required (or which,
      upon the creation or incurring thereof, would be required) to be included in
      the
      financial statements (including footnotes) of such Person in accordance with
      GAAP, including Statement No. 5 of the Financial Accounting Standards Board,
      all
      Rate Hedging Obligations and any obligation of such Person guaranteeing or
      in
      effect guaranteeing any Indebtedness, dividend or other obligation of any other
      Person (the “primary obligor”) in any manner, whether directly or indirectly,
      including obligations of such Person however incurred:

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (1)           to
      purchase such Indebtedness or other obligation or any property or assets
      constituting security therefor;

     

    (2)           to
      advance or supply funds in any manner (i) for the purchase or payment of such
      Indebtedness or other obligation, or (ii) to maintain a minimum working capital,
      net worth or other balance sheet condition or any income statement condition
      of
      the primary obligor;

     

    (3)           to
      grant or convey any lien, security interest, pledge, charge or other encumbrance
      on any property or assets of such Person to secure payment of such Indebtedness
      or other obligation;

     

    (4)           to
      lease property or to purchase securities or other property or services primarily
      for the purpose of assuring the owner or holder of such Indebtedness or
      obligation of the ability of the primary obligor to make payment of such
      Indebtedness or other obligation; or

     

    (5)           otherwise
      to assure the owner of the Indebtedness or such obligation of the primary
      obligor against loss in respect thereof.

     

    “Continue”,
      “Continuation”, and “Continued” refers to the continuation pursuant to Section 2.7 hereof of
      a Eurodollar Rate Loan of one Type as a Eurodollar Rate Loan of the same Type
      from one Interest Period to the next Interest Period.

     

    “Convention”
      means the Convention on the International Recognition of Rights in Aircraft
      signed initially at Geneva in 1948, as the same may be amended, modified or
      supplemented from time to time.

     

    “Convert”,
      “Conversion”, and “Converted” refers to a conversion pursuant to Section 2.7 or Article
      IV of one
      Type of Loan into another Type of Loan.

     

    “Credit
      Party” means, collectively, each Borrower, each Eligible Intermediary, each
      Guarantor, and each other Person (excluding AHC Ltd. or Ireland Holding Ltd.)
      providing Collateral pursuant to any Security Instrument.

     

    “Default”
      means any event or condition which, with the giving or receipt of notice or
      lapse of time or both, would constitute an Event of Default hereunder, provided that if,
      pursuant to Section
      9.6, such event or condition is not deemed to be a breach of the Credit
      Parties’ obligations under this Agreement and the other Loan Documents, such
      event or condition shall not be deemed to be a “Default” except for the purposes
      of Section
      7.11, the first two sentences of Section 10.3,
      the
      Compliance Certificate in the form of Exhibit H, and
      Section 4 of the Borrowing Base Certificate in the form of Exhibit
      R.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    “Default
      Rate” means (i) with respect to each Eurodollar Rate Loan, until the end of the
      Interest Period applicable thereto, a rate of two percent (2%) above the
      Eurodollar Rate applicable to such Loan, and thereafter at a rate of interest
      per annum which shall be two percent (2%) above the Base Rate, (ii) with respect
      to Base Rate Loans, at a rate of interest per annum which shall be two percent
      (2%) above the Base Rate and (iii) in any case, the maximum rate permitted
      by
      applicable law, if lower.

     

    “Depositary
      Bank” means a bank, trust company or other Person, satisfactory to the Agent,
      that executes the Lockbox Agreement in the capacity of “Depositary Bank”
thereunder.

     

    “Dollars”
      and the symbol “$” means dollars constituting legal tender for the payment of
      public and private debts in the United States of America.

     

    “Eligible
      Aircraft” means any Aircraft which satisfies each of the following
      requirements:

     

    (a)           such
      Aircraft is an aircraft listed under the heading “Aircraft Portfolio” on Exhibit K attached
      hereto;

     

    (b)           such
      Aircraft is owned by the Applicable Borrower;

     

    (c)           such
      Aircraft is covered by all of the insurance described on Exhibit L attached
      hereto and the Agent (for itself and on behalf of the Lenders) is named as
      loss
      payee or contract party on the hull insurance and is named as an additional
      insured or contract party on the liability insurance;

     

    (d)           neither
      the Applicable Carrier (if any) nor the Applicable Intermediary (if any) is
      organized under the laws of, or domiciled in, any Prohibited
      Country;

     

    (e)           either
      (x) the age of such Aircraft is (i) in the case of a passenger aircraft, 19
      years or less and (ii) in the case of a freighter aircraft, 25 years or less,
      in
      each case measured from the date of original manufacture as a passenger aircraft
      or a freighter aircraft, as the case may be, to the date of the original Loan
      made or to be made in respect of such Eligible Aircraft, or (y) immediately
      after giving effect to the Loan to be drawn in respect of such Aircraft the
      total amount of Loans outstanding in respect of all Aircraft not satisfying
      clause (x) above shall not exceed $50,000,000; and

     

    (f)           (i)
      if such Aircraft is an aircraft model described under the heading “Regional Jet
      Aircraft” on Exhibit K, after giving effect to the Loan for such Aircraft, the
      aggregate principal amount of loans outstanding in respect of all such Aircraft
      shall not exceed $50,000,000; (ii) if such Aircraft is an aircraft model
      described under the heading “Out-of-Production Aircraft” on Exhibit K, after
      giving effect to the Loan for such Aircraft, the aggregate principal amount
      of
      loans outstanding in respect of all such Aircraft shall not exceed $150,000,000;
      

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    and
      (iii) if such Aircraft is an aircraft model described under the heading
“Widebody Aircraft” on Exhibit K, after giving effect to the Loan for such
      Aircraft, the aggregate principal amount of Loans outstanding for all such
      Aircraft shall not exceed $300,000,000.

     

    “Eligible
      Asset” means an Eligible Aircraft or an Eligible Engine.

     

    “Eligible
      Assignee” means (i) a Lender, (ii) an affiliate of a Lender that is a “resident”
(as that term is used in the Treaty) of the U.S. or a “qualified person” (as
      that term is used in the Treaty) and (iii) any other Person approved by the
      Agent (such consent not to be unreasonably withheld or delayed) that is either
      (A) a resident of the U.S., (B) a qualified person under the Treaty or (C)
      a
“bank” (as that term is used in Article 23 of the Treaty) that is a resident of
      Ireland or, if not such a resident, in whose hands the income from the Loans
      is
      attributable to a permanent establishment of such Persons in the U.S. or
      Ireland; provided, however,
      that (x)
      neither any Borrower nor an affiliate of any Borrower shall qualify as an
      Eligible Assignee and (y) unless a Default or Event of Default has occurred
      and
      is continuing, none of the Persons listed on Schedule 1.1 shall
      qualify as an Eligible Assignee unless the Parent shall have consented to such
      qualification, such consent not to be unreasonably withheld or
      delayed.

     

    “Eligible
      Carrier” means any air carrier duly licensed to carry passengers or cargo under
      applicable law, foreign or domestic.

     

    “Eligible
      Engine” means any Engine suitable for use on an Eligible Aircraft.

     

    “Eligible
      Intermediary” means, with respect to any Financed Eligible Asset, AIH III or the
      Irish Holdco Party or a Person that is a direct or indirect wholly-owned
      subsidiary of AIH III or the Irish Holdco Party.

     

    “Eligible
      Lease” or “Eligible Leases” means a fully-executed Lease by a Borrower or
      Eligible Intermediary (as lessor) to an Eligible Carrier (as lessee) of an
      Eligible Asset, which Lease satisfies each of the following
      requirements:

     

    (a)           such
      Lease is a “triple net lease” (subject to any arrangement whereby the Borrower
      and the Eligible Carrier agree to share certain expenses relating to aircraft
      or
      engine maintenance, directives, service bulletins or similar items) and requires
      the lessee to maintain the insurance described in Exhibit L attached
      hereto with respect to such Eligible Asset, and to bear all risk of loss, damage
      or liability with respect to such Eligible Asset;

     

    (b)           if
      the Eligible Carrier is domiciled in the United States, the lessor is entitled
      to the benefits of Section 1110 of the U.S. bankruptcy code with respect to
      the
      lessor’s rights against such lessee, including without limitation the rights to
      require performance of such lessee’s obligations under the Lease or return such
      Eligible Asset during such lessee’s bankruptcy or insolvency;

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    (c)           such
      Lease requires the lessee to comply with covenants and restrictions regarding
      the maintenance, return, alteration, replacement, pooling and sublease of such
      Eligible Asset, which covenants and restrictions satisfy the requirements of
      Section 7.19(a)
      and Schedule
      7.19(a) hereto;

     

    (d)           if
      such Lease contains a purchase option, the expected exercise price is equal
      to
      or greater than the expected outstanding principal and accrued interest on
      all
      Loans relating to such Eligible Asset as of the date of exercise of such
      option;

     

    (e)           such
      Lease prohibits the lessee from flying or locating such Eligible Asset in any
      country in violation of the applicable laws of any jurisdiction;

     

    (f)           such
      Lease provides rent payments in US dollars or Euros and contains customary
      covenants and restrictions relating to re-registration of such Eligible Asset;
      which covenants and restrictions satisfy the requirements of the Security
      Agreement; provided that the
      total amount of Loans outstanding in respect of Aircraft subject to Leases
      where
      rent is paid in Euros shall in no circumstances exceed $50,000,000;

     

    (g)           at
      the time of any Loan hereunder relating to such Eligible Asset or, if later,
      at
      the time of the entering into such Lease, no prepayment shall have been made
      under such Lease, and no Lease payment obligation shall have been accelerated,
      provided that
      it is understood that a scheduled rental payment to be paid in advance for
      a
      rental period in accordance with the Lease terms is not deemed to be a
      prepayment;

     

    (h)           at
      the time of any Loan relating to such Eligible Asset or, if later, at the time
      of the delivery of such Eligible Asset under such Lease, the applicable lessor
      shall have delivered a Lessee Notice to the applicable lessee; and

     

    (i)           either
      (i) such Lease is a “true lease” lease (and not a lease intended as security)
      under applicable commercial law and other applicable law relating to creditors’
rights and bankruptcy; or (ii) such Lease grants to such Borrower, and such
      Borrower has at all times under the FAA Act (in the case of Eligible Assets
      registered in the United States), a perfected first priority mortgage Lien
      on
      such Eligible Asset (subject only to Permitted Liens), which Lien has been
      assigned to the Agent;

     

    provided,
however,
      that in the
      circumstances described in Section 2.14,
“Eligible
      Lease” means, individually and collectively, (X) a fully-executed
      Lease by a Borrower (as lessor) to the Applicable Intermediary (as lessee)
      of an
      Eligible Asset, which Lease satisfies each of the requirements for an “Eligible
      Lease” set forth in clauses (a) through (h) above except that the lessee is not
      an Eligible Carrier, and (Y) a fully-executed sublease by such Applicable
      Intermediary (as sublessor) to an Eligible Carrier (as sublessee) of such
      Financed Eligible Asset, which Eligible Carrier is not a U.S. Carrier,

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    and
      which Lease is identical in all material respects (other than the Persons that
      are lessor and lessee) to the Lease described in clause (X) above, and which
      Lease satisfies all the requirements for an “Eligible Lease” set forth in
      clauses (a) through (i) above, except that the lessor is not a
      Borrower.

     

    “Employee
      Benefit Plan” means any employee benefit plan within the meaning of Section 3(3)
      of ERISA, whether or not covered by ERISA and in respect of which any Guarantor
      or any Borrower or any of their respective ERISA Affiliates is (or, if such
      plan
      were terminated at such time, would under Section 4069 of ERISA be deemed to
      be)
      an “employer” as defined in Section 3(5) of ERISA.

     

    “Engine”
      means any aircraft jet engine.

     

    “Environmental
      Laws” means any federal, state or local statute, law, ordinance, code, rule,
      regulation, order, decree, permit or license regulating, relating to, or
      imposing liability or standards of conduct concerning, any environmental matters
      or conditions, environmental protection or conservation, including, without
      limitation, the Comprehensive Environmental Response, Compensation and Liability
      Act of 1980, as amended; the Superfund Amendments and Reauthorization Act of
      1986, as amended; the Resource Conservation and Recovery Act, as amended; the
      Toxic Substances Control Act, as amended; the Clean Air Act, as amended; the
      Clean Water Act, as amended; together with all regulations promulgated
      thereunder, and any other “Superfund” or “Superlien” law.

     

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

     

    “ERISA
      Affiliate” means an entity, whether or not incorporated, that is under common
      control with any Credit Party within the meaning of Section 4001 of ERISA or
      is
      part of a group that includes any Credit Party and that is treated as a single
      employer within the meaning of Section 414 of the Code.

     

    “Eurodollar
      Rate” means the interest rate per annum calculated according to the following
      formula:

     

    Eurodollar                                          
      Interbank Offered Rate                       Applicable

    Rate                      =                        
      1- Reserve
      Requirement                       +            
Margin

     

    “Eurodollar
      Rate Loan” means a Loan for which the rate of interest is determined by
      reference to the Eurodollar Rate.

     

    “Event
      of Default” means any of the occurrences set forth as such in Section
      9.1.

     

    “Exchange
      Act” means the Securities Exchange Act of 1934, as amended, and the regulations
      promulgated thereunder.

     

    “Existing
      Warehouse Credit Agreement” means that certain $1,000,000,000 Credit Agreement
      (2006-A), dated as of December 15, 2006 and amended by the First 

     

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    Amendment
      thereto dated as of January 22, 2007, by and among Aircastle Investment Holdings
      2 Limited, Aircastle Ireland No. 1 Limited, Aircastle Ireland No. 3 Limited,
      the
      borrowers party thereto, JPMorgan Chase Bank, N.A., as administrative agent
      and
      the Lenders party thereto.

     

    “Existing
      Warehouse Credit Parties” means “Credit Parties” as defined in the Existing
      Warehouse Credit Agreement.

     

     “Extended
      Maturity Date” means February 3, 2009.

     

    “Extension
      Option” means the exercise by the Parent by written notice to the Agent, of an
      extension of availability of Loans under this facility from the Initial Maturity
      Date to the Extended Maturity Date.

     

    “FAA”
      means the United States Federal Aviation Administration.

     

    “FAA
      Act” means 49 U.S.C. Subtitle VII, §§ 40101 et seq., as amended from
      time
      to time, any regulations promulgated thereunder and any successor
      provision.

     

    “FAA
      Counsel” means DeBee & Gilchrist, Daugherty, Fowler and Peregrin, Haught and
      Jenson, Crowe & Dunlevy, or any other law firm having nationally recognized
      expertise in FAA matters acceptable to the Agent.

     

    “FAA
      Recording Office” means the office of the FAA in Oklahoma City, Oklahoma,
      maintained as the office for the recordation of Liens on Eligible Assets and
      pursuant to the FAA Act, and any successor or additional office performing
      the
      same or a comparable function.

     

    “Facility
      Guaranty” means each Guaranty Agreement between one or more Guarantors and the
      Agent for the benefit of the Lenders (substantially in the form of Exhibit I-1 attached
      hereto), delivered as of the Closing Date and otherwise pursuant to Section 2.12, 5.1
      or
      5.2, as the same may be amended, modified or supplemented from time to
      time.

     

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

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    “Fee
      Letter” means the Fee Letter dated February 5, 2008, by JPMorgan Chase Bank,
      N.A., J.P. Morgan Securities Inc., Calyon New York Branch and accepted and
      agreed to by the Parent.

     

    “Fee
      Payment Date” means, for any month in which a commitment fee is due, the
      twentieth (20th ) calendar day of each calendar month (or, if such day is not
      a
      Business Day, on the next succeeding Business Day).

     

    “Financed
      Aircraft” with respect to any Loan means, collectively, each Eligible Aircraft,
      the acquisition of which was or is to be financed or refinanced in whole or
      in
      part by such Loan.

     

    “Financed
      Eligible Asset” with respect to any Loan means, collectively, each Eligible
      Aircraft or Eligible Engine, or part thereof, the acquisition of which was
      or is
      to be financed or refinanced in whole or in part by such Loan.

     

    “Fiscal
      Year” means the twelve-month fiscal period of the Parent and its Subsidiaries
      commencing on January 1 of each calendar year and ending on December 31 of
      each
      calendar year.

     

    “Foreign
      Benefit Law” means any applicable statute, law, ordinance, code, rule,
      regulation, order or decree of any foreign nation or any province, state,
      territory, protectorate or other political subdivision thereof regulating,
      relating to, or imposing liability or standards of conduct concerning, any
      Employee Benefit Plan.

     

    “GAAP”
      or “Generally Accepted Accounting Principles” means generally accepted
      accounting principles, being those principles of accounting set forth in
      pronouncements of the Financial Accounting Standards Board, the American
      Institute of Certified Public Accountants or which have other substantial
      authoritative support and are applicable in the circumstances as of the date
      of
      a report.

     

    “Governmental
      Authority” means any Federal, state, municipal, national or other government
      (whether foreign or domestic and including the European Union) or governmental
      department, commission, board, bureau, court, agency or instrumentality or
      political subdivision thereof or any entity or officer exercising executive,
      legislative, judicial, regulatory or administrative functions of or pertaining
      to any government or any court, in each case whether associated with a state
      or
      local government of the United States, the United States, or a foreign entity
      or
      foreign government.

     

    “Guarantors”
      means, at any date, the collective reference to AIH III, or the Irish Holdco
      Party, the Borrowers and the Beneficial Owners, Eligible Intermediaries and
      Subsidiaries who are required to be parties to a Facility Guaranty at such
      date.

     

    “Hazardous
      Material” means and includes any pollutant, contaminant, or hazardous, toxic or
      dangerous waste, substance or material (including without limitation petroleum
      products, asbestos-containing materials and lead), the generation, handling,
      storage, transportation, disposal, treatment, release, discharge or emission
      of
      which is subject to any Environmental Law.

     

    
      
        
        

      

      
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    “Hedging
      Agreement” means one or more agreements between any Borrower or any Guarantor
      and any Lender or any Affiliate thereof, on terms mutually acceptable to such
      Borrower or any Guarantor and such Lender (or Affiliate), which agreements
      create Rate Hedging Obligations.

     

    “Holdings
      SPC” means a Subsidiary, 100% of the voting and equity interests in which are
      owned directly or indirectly by AIH III or the Irish Holdco Party.

     

    “Holdings
      Subsidiary Trust” means any trust (a) that is organized under the laws of a
      state of the United States, (b) whose trustee is a Qualified Trustee and (c)
      in
      which 100% of all beneficial interests are owned directly by AIH III or the
      Irish Holdco Party or a direct or indirect wholly-owned Subsidiary of AIH III
      or
      the Irish Holdco Party.

     

    “Indebtedness”
      means with respect to any Person, without duplication, all Indebtedness for
      Money Borrowed, all indebtedness of such Person for the acquisition of property
      or arising under Rate Hedging Obligations, all indebtedness secured by any
      Lien
      on the property of such Person whether or not such indebtedness is assumed,
      all
      liability of such Person by way of endorsements (other than for collection
      or
      deposit in the ordinary course of business), all Contingent Obligations, and
      other items which in accordance with GAAP is required to be classified as a
      liability on a balance sheet; but excluding all accounts payable in the ordinary
      course of business so long as payment therefor is due within one year; provided that in
      no
      event shall the term Indebtedness include surplus and retained earnings, lease
      obligations (other than pursuant to Capital Leases), reserves for deferred
      income taxes and investment credits, other deferred credits or reserves or
      deferred compensation obligations.

     

    “Indebtedness
      for Money Borrowed” means with respect to any Person, without duplication, all
      indebtedness in respect of money borrowed, as reflected on the balance sheet
      of
      such Person in accordance with GAAP, including without limitation all Capital
      Leases and the deferred purchase price of any property or asset, evidenced
      by a
      promissory note, bond, debenture or similar written obligation for the payment
      of money (including conditional sales or similar title retention agreements),
      other than trade payables incurred in the ordinary course of
      business.

     

    “Initial
      Maturity Date” means August 4, 2008.

     

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

     

    “Insolvent”
      means to pertain to a condition of Insolvency.

     

    “Interbank
      Offered Rate” means, with respect to any Eurodollar Rate Loan for the Interest
      Period applicable thereto, the rate per annum (rounded upwards, if necessary),
      to the nearest 1/100 of 1%) appearing on Telerate Page 3750 (or any successor
      page) as the 

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    London
      interbank offered rate for deposits in Dollars at approximately 11:00 A.M.
      (London time) two Business Days prior to the first day of such Interest Period
      for a term comparable to such Interest Period (or, if no such comparable term
      is
      quoted, an interpolated rate as reasonably determined by the
      Agent).  If for any reason such rate is not available, the term
“Interbank Offered Rate” shall mean, with respect to any Eurodollar Rate Loan
      for the Interest Period applicable thereto, the rate per annum (rounded upwards,
      if necessary, to the nearest 1/100 of 1%) appearing on Reuters Screen LIBO
      Page
      as the London interbank offered rate for deposits in Dollars at approximately
      11:00 A.M. (London time) two Business Days prior to the first day of such
      Interest Period for a term comparable to such Interest Period; provided, however,
      if more than
      one rate is specified on Screen LIBO Page, the applicable rate shall be the
      arithmetic mean of all such rates (rounded upwards, if necessary, to the nearest
      1/100 of 1%).

     

    “Interest
      Period” means, for each Eurodollar Rate Loan, a period commencing on the date
      such Eurodollar Rate Loan is made or Converted or on the last day of the
      preceding Interest Period, as the case may be, and ending on (x) the next
      occurring day that is the fifteenth day of a calendar month or (y) in the case
      of an Interest Period of one week, the last day of such week (provided, that
      Interest Periods of one week in duration may not be selected by a Borrower
      other
      than in anticipation of a prepayment of a Loan); provided,
      that,

     

    (a)           if
      an Interest Period for a Eurodollar Rate Loan would end on a day which is not
      a
      Business Day, such Interest Period shall be extended to the next Business Day
      (unless such extension would cause the applicable Interest Period to end in
      the
      succeeding calendar month, in which case such Interest Period shall end on
      the
      next preceding Business Day); and

     

    (b)           except
      in the case of a one-week Interest Period, any Interest Period which begins
      on
      the last Business Day of a calendar month (or on a day for which there is no
      numerically corresponding day in the calendar month at the end of such Interest
      Period) shall end on the last Business Day of a calendar month.

     

    “Interest
      Rate Selection Notice” means the written notice delivered by an Authorized
      Representative in connection with the election of a subsequent Interest Period
      for any Eurodollar Rate Loan or the Conversion of any Base Rate Loan into a
      Eurodollar Rate Loan, in the form of Exhibit
      E.

     

    “Ireland
      Holding Ltd.” means Aircastle Ireland Holding Limited, a limited company
      incorporated in Ireland.

     

    “Irish
      Holdco” means a wholly-owned Subsidiary of Parent organized under the laws of
      Ireland and designated by the Parent to become the Irish Holdco
      Party.

     

    “Irish
      Holdco Party” means Irish Holdco from and after the time it accedes to the
      Credit Agreement pursuant to Section 5.1.

     

    
      
        
        

      

      
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    “Joint
      Lead Arrangers” means J.P. Morgan Securities Inc. and Calyon New York
      Branch.

     

    “Lease”
      has the meaning given in the Security Agreement.

     

    “Lease
      Event of Default” means any event characterized as an “event of default” (or the
      equivalent) under any Lease of any Eligible Asset (or that would be so
      characterized assuming the sending of any required notice by the lessor in
      a
      timely manner).

     

    “Lender”
      has the meaning given to such term in the preamble to this
      Agreement.

     

    “Lessee
      Notice” means a certificate in form and substance reasonably acceptable to the
      Agent, duly completed and executed by an Applicable Borrower with respect to
      an
      Eligible Asset; and the Agent agrees that the form of Lessee Notice attached
      hereto as Exhibit
      M is acceptable.

     

    “Lien”
      means any interest in property securing any obligation owed to, or a claim
      by, a
      Person other than the owner of the property, whether such interest is based
      on
      the common law, statute or contract, and including but not limited to the lien
      or security interest arising from a mortgage, encumbrance, pledge, security
      agreement, conditional sale or trust receipt or a lease, consignment or bailment
      for security purposes.  For the purposes of this Agreement, any
      Borrower and any Subsidiary shall be deemed to be the owner of any property
      which it has acquired or holds subject to a conditional sale agreement,
      financing lease, or other arrangement pursuant to which title to the property
      has been retained by or vested in some other Person for security
      purposes.

     

    “Loan”
      or “Loans” means any of the Revolving Loans.

     

    “Loan
      Documents” means this Agreement, the Security Instruments, the Facility
      Guaranties, the Assumption Letters, the Fee Letters and all other instruments
      and documents heretofore or hereafter executed or delivered to or in favor
      of
      any Lender or the Agent in connection with the Loans made and transactions
      contemplated under this Agreement, as the same may be amended, supplemented
      or
      replaced from the time to time.

     

    “Lockbox
      Agreement” means a lockbox agreement between any Beneficial Owner (if
      applicable), any Borrower, the Depositary Bank and the Agent substantially
      the
      form of Exhibit
      O hereto, as supplemented from time to time in accordance with the terms
      thereof.

     

    “Maintenance
      Adjusted Current Market Value” means the most likely trading price of an
      Eligible Asset, as determined by the Appraiser in a “desk top” evaluation report
      delivered to the Agent on or prior to the day falling 5 Business Days prior
      to
      the date of the initial Loan for such Eligible Asset, adjusted for its actual
      technical status and maintenance condition; provided that such
      value shall assume the sale of such Eligible 

     

    
      
        
        

      

      
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    Asset
      in a single sale transaction on an arm’s length basis for cash or equivalent
      consideration, as well as adequate time and effective exposure to potential
      buyers.

     

    “Manufacturer”
      means any manufacturer of any Financed Eligible Asset.

     

    “Manufacturer’s
      Warranty” means any warranty made or offered by any Manufacturer with respect to
      any Financed Eligible Asset.

     

    “Material
      Adverse Effect” means a material adverse effect on (i) the ability of the Credit
      Parties, taken as a whole, to pay or perform their respective obligations,
      liabilities and indebtedness under the Loan Documents as such payment or
      performance becomes due in accordance with the terms thereof, or (ii) the
      rights, powers and remedies of the Agent or any Lender under any Loan Document
      or the validity, legality or enforceability thereof.

     

    “Moody’s”
      means Moody’s Investors Service, Inc. and any successor thereto.

     

    “Multiemployer
      Plan” means an Employee Benefit Plan that is a “multiemployer plan” as defined
      in Section 4001(a)(3) of ERISA to which any Credit Party or any ERISA Affiliate
      thereof is making, or is accruing an obligation to make, contributions or has
      made, or been obligated to make, contributions within the preceding six (6)
      Fiscal Years.

     

     “Obligations”
      means the unpaid principal of and interest on (including, without limitation,
      interest accruing after the maturity of the Loans and interest accruing after
      the filing of any petition in bankruptcy, or the commencement of any insolvency,
      reorganization or like proceeding, relating to AIH III, the Irish Holdco Party
      or any Borrower, whether or not a claim for post-filing or post-petition
      interest is allowed in such proceeding) the Loans and all other obligations
      and
      liabilities of AIH III, the Irish Holdco Party or any Borrower to the Agent
      (acting in any capacity) or to any Lender (or, in the case of Rate Hedging
      Obligations, any affiliate of any Lender), whether direct or indirect, absolute
      or contingent, due or to become due, or now existing or hereafter incurred,
      which may arise under, out of, or in connection with, this Agreement, any other
      Loan Document, any Rate Hedging Obligation entered into with any Lender or
      any
      affiliate of any Lender or any other document made, delivered or given in
      connection herewith or therewith, whether on account of principal, interest,
      reimbursement obligations, fees, indemnities, costs, expenses (including,
      without limitation, all fees, charges and disbursements of counsel to the Agent
      (acting in any capacity) or to any Lender that are required to be paid by AIH
      III, the Irish Holdco Party or any Borrower pursuant thereto) or
      otherwise.

     

    “Old
      Eligible Aircraft” means an Eligible Aircraft that does not satisfy the
      condition set forth in clause (x) of paragraph (e) of the definition of Eligible
      Aircraft.

     

    “Operating
      Circular” means an operating circular issued by the Federal Reserve
      Bank.

     

    
      
        
        

      

      
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    “Other
      Eligible Assets” means the collective reference to “Eligible Assets” as defined
      in the Existing Warehouse Credit Agreement.

     

    “Organizational
      Action” means with respect to any corporation, limited liability company,
      partnership, limited partnership, limited liability partnership, trust or other
      legally authorized incorporated or unincorporated entity, any corporate,
      organizational or partnership action (including any required shareholder,
      trustee, member or partner action), or other similar official action, as
      applicable, taken by such entity.

     

    “Organizational
      Documents” means with respect to any corporation, limited liability company,
      partnership, limited partnership, limited liability partnership, trust or other
      legally authorized incorporated or unincorporated entity, (i) the articles
      of
      incorporation, certificate of incorporation, articles of organization,
      certificate of limited partnership, trust agreement or other applicable
      organizational or charter documents relating to the creation of such entity
      which will, in each case, contain provisions reasonably satisfactory to the
      Lenders to ensure such entity’s bankruptcy remoteness, including provisions
      relating to the appointment of a special member or independent director, the
      consent of which will be required to approve any decisions related to bankruptcy
      matters and (ii) the bylaws, operating agreement, partnership agreement, limited
      partnership agreement or other applicable documents relating to the operation,
      governance or management of such entity.

     

    “Parent”
      means Aircastle Limited, an exempted company organized and existing under the
      laws of Bermuda.

     

    “Parent
      Credit Parties” means credit parties to the Parent Revolving Credit
      Agreement.

     

    “Parent
      Revolving Credit Agreement” means that certain $250,000,000 Credit Agreement
      (2006-B), dated as of December 15, 2006 as amended by the First Amendment
      thereto dated as of January 22, 2007, and the Second Amendment thereto dated
      as
      of April 5, 2007, by and among the Parent, JPMorgan Chase Bank, N.A., as
      administrative agent and the lenders party thereto.

     

    “Partnership
      Interests” has the meaning therefor provided in the Pledge
      Agreement.

     

    “Payment
      Date” means any date provided for herein on which the principal of, interest on
      or other amounts in respect of the Loans is due and payable.

     

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

     

    “Permitted
      Lien” means any Lien permitted by Section
      8.3.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

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

     

    “Pledge
      Agreement” means, collectively (or individually as the context may indicate),
      (i) those certain Pledge and Security Agreements or Share Charges entered prior
      to and still effective as of the Closing Date, and (ii) any additional Pledge
      and Security Agreement or Share Charge (substantially in the form of Exhibit S-1, S-2,
S-3
      or S-4 attached
      hereto,
      as applicable), delivered to the Agent pursuant to Section 5.1, 5.2
      or
      2.14, as hereafter amended, supplemented or replaced from time to
      time.

     

    “Pledged
      Interests” means the interests so defined in the Pledge Agreement including,
      without limitation, all Capital Stock of AIH III, the Irish Holdco Party
      and  each Borrower.

     

    “Prime
      Rate” means the per annum rate of interest established from time to time by the
      Reference Bank as its prime or reference rate, which rate may not be the lowest
      rate of interest charged by the Reference Bank to its customers.

     

    “Principal
      Office” means the principal office of the Agent presently located at 270 Park
      Avenue, New York, New York 10017 or such other office and address as the Agent
      may from time to time designate.  Payments shall be made to the
      account specified in the Lockbox Agreement or to such other account as the
      Agent
      may from time to time specify in writing.

     

    “Prohibited
      Countries” means any country in which an Aircraft or Engine would not be covered
      by the insurance requirements of Section 3.7 of the Security Agreement
      (including, if required, political risk insurance), any country with which
      the
      United States does not maintain normal diplomatic relations and any country
      where or with nationals of which it is unlawful for Persons subject to the
      jurisdiction of the United States to conduct business without material
      restrictions or limitations.

     

    “Purchase
      Price” with respect to any Eligible Assets means the actual purchase price paid
      for such Eligible Assets by the Applicable Borrower, together with all other
      reasonable out of pocket expenses (including reasonable attorneys fees of each
      of the Borrower and the Agent) incurred or which is estimated by the Borrower
      to
      be incurred in respect of such Eligible Assets, in each case reasonably
      acceptable to the Agent plus without
      duplication, the cost of any Approved Improvements or any Qualified
      Conversion.

     

    “Qualified
      Conversion” means the conversion of a Financed Aircraft from passenger
      configuration to a freighter configuration that meets the following
      conditions:  (a) such conversion is performed by a conversion company
      that is well established with a program that has an FAA granted Supplemental
      Type Certificate to perform the intended work, and either (b)(i) such conversion
      is performed by an Approved Conversion Company or (ii) either (x)  the
      senior unsecured long-term debt rating of the conversion company is not less
      than BBB/Baa2 or (y) the conversion company has caused a 

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    performance
      bond, letter of credit or other security naming the Agent as beneficiary, in
      an
      amount equal to 125% of the Loan of such Financed Aircraft, in form and
      substance satisfactory to the Lenders.

     

    “Qualified
      Trustee” means (i) Wilmington Trust Company, Wells Fargo Bank Northwest, N.A.,
      JPMorgan Chase Bank, N.A., or another bank or trust company having a combined
      capital and surplus of at least One Hundred Million Dollars ($100,000,000)
      or
      (ii) any other Person acceptable to the Agent.

     

    “Qualifying
      Lender” means a Lender, beneficially entitled to the interest payable to that
      Lender in respect of any Loan under this Agreement; (a) which is a bank carrying
      on a bona fide banking business in Ireland; (b) which is a person resident
      in a
      country with which Ireland has a double taxation treaty or resident in a member
      state of the European Communities (other than Ireland) provided the loan is
      not
      connected with an Irish branch or agency of such Lender; or (c) which is a
      corporation established under the laws of the USA which is subject to tax in
      the
      USA on its worldwide income and the Loan is not connected with an Irish branch
      or agency of such Lender.

     

    “Quarterly
      Period” means a fiscal quarter of the Borrowers and their
      Subsidiaries.

     

    “Rate
      Hedging Obligations” means any and all obligations of AIH III, the Irish Holdco
      Party, any Borrower or any Subsidiary, whether absolute or contingent and
      howsoever and whensoever created, arising, evidenced or acquired (including
      all
      renewals, extensions and modifications thereof and substitutions therefor),
      under (i) any and all agreements, devices or arrangements designed to protect
      at
      least one of the parties thereto from the fluctuations of interest rates,
      exchange rates or forward rates applicable to such party’s assets, liabilities
      or exchange transactions, including, but not limited to, Dollar-denominated
      or
      cross-currency interest rate exchange agreements, forward currency exchange
      agreements, interest rate cap or collar protection agreements, forward rate
      currency or interest rate options, puts, warrants and those commonly known
      as
      interest rate “swap” agreements; and (ii) any and all cancellations, buybacks,
      reversals, terminations or assignments of any of the foregoing.

     

    “Reference
      Bank” means JPMorgan Chase Bank, N.A.

     

    “Regulation
      A” means a Regulation A circular issued by such Federal Reserve
      Bank.

     

    “Regulation
      D” means Regulation D of the Board as the same may be amended or supplemented
      from time to time.

     

    “Regulatory
      Change” means any change effective after the Closing Date in United States
      federal or state laws or regulations (including Regulation D and capital
      adequacy regulations) or foreign laws or regulations or the adoption or making
      after such date of any interpretations, directives or requests applying to
      a
      class of banks, which includes any of the Lenders, under any United States
      federal or state or foreign laws or regulations (whether or not having the
      force
      of law) by any court or governmental or 

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    monetary
      authority charged with the interpretation or administration thereof or
      compliance by any Lender with any request or directive regarding capital
      adequacy, including those relating to “highly leveraged transactions,” whether
      or not having the force of law, and whether or not failure to comply therewith
      would be unlawful and whether or not published or proposed prior to the date
      hereof.

     

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

     

    “Reportable
      Event” means any of the events set forth in Section 4043(c) of ERISA or the
      regulations thereunder with respect to a Single Employer Plan, other than those
      events as to which the thirty day notice period has been waived.

     

    “Required
      Lenders” means, as of any date, Lenders on such date having Credit Exposures (as
      defined below) aggregating more than 50% of the aggregate Credit Exposures
      of
      all the Lenders on such date.  For purposes of the preceding sentence,
      the amount of the “Credit Exposure” of each Lender shall be equal at all times
      (a) other than following the occurrence and during the continuance of an Event
      of Default, to the amount of its Revolving Credit Commitment; and (b) following
      the occurrence and during the continuance of an Event of Default, to the
      aggregate principal amount of such Lender’s Applicable Commitment Percentage of
      Revolving Credit Outstandings; provided that, for
      the purpose of this definition only, if any Lender shall have failed to fund
      its
      Applicable Commitment Percentage of any Loan, the Revolving Credit Commitment
      of
      such Lender shall be deemed reduced by the amount it so failed to fund for
      so
      long as such failure shall continue and such Lender’s Credit Exposure
      attributable to such failure shall be deemed held by any Lender making more
      than
      its Applicable Commitment Percentage of such Loan to the extent it covers such
      failure.

     

    “Requirement
      of Law” means as to any Person, the Certificate of Incorporation and By-Laws or
      other organizational or governing documents of such Person, and any law, treaty,
      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.

     

    “Reserve
      Requirement” means, at any time, the maximum rate at which reserves (including,
      without limitation, any marginal, special, supplemental, or emergency reserves)
      are required to be maintained under regulations issued from time to time by
      the
      Board of Governors of the Federal Reserve System (or any successor) by member
      banks of the Federal Reserve System against  “Eurocurrency
      liabilities” (as such term is used in Regulation D).  Without limiting
      the effect of the foregoing, the Reserve Requirement shall reflect any other
      reserves required to be maintained by such member banks with respect to (i)
      any
      category of liabilities which includes deposits by reference to which the
      Eurodollar Rate is to be determined, or (ii) any category of extensions of
      credit or other assets which include Eurodollar Rate Loans.  The
      Eurodollar Rate shall be adjusted automatically on and as of the effective
      date
      of any change in the Reserve Requirement.

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    “Revolving
      Credit Commitment” means, with respect to each Lender, the obligation of such
      Lender to make Revolving Loans to the Borrowers up to an aggregate principal
      amount equal to such Lender’s Applicable Commitment Percentage of the Total
      Revolving Credit Commitment.

     

    “Revolving
      Credit Facility” means the facility described in Article II hereof
      providing for Loans to the Borrowers by the Lenders in the aggregate principal
      amount of the Total Revolving Credit Commitment.

     

    “Revolving
      Credit Outstandings” means, as of any date of determination, the aggregate
      principal amount of all Revolving Loans then outstanding.

     

    “Revolving
      Credit Termination Date” means the earliest of (i) the Stated Termination Date,
      (ii) the date of termination of Lenders’ obligations pursuant to Section 9.1 upon the
      occurrence of an Event of Default, (iii) such date as the Borrowers may
      voluntarily and permanently terminate the Revolving Credit Facility by payment
      in full of all Revolving Credit Outstandings, together with all accrued and
      unpaid interest thereon and reduce the Total Revolving Credit Commitment to
      zero
      pursuant to Section
      2.6 or (iv) the
      date as of
      which the initial closing of the ACS 2008-1 Transaction has
      occurred.

     

    “Revolving
      Loan” or “Revolving Loans” means any borrowing pursuant to a Loan under the
      Revolving Credit Facility in accordance with Article
      II.

     

    “S&P”
      means Standard & Poor’s Ratings Group, a division of The McGraw-Hill
      Companies, Inc., and any successor thereto.

     

    “Secured
      Party” has the meaning given in the Security Agreement.

     

     “Security
      Agreement” means, collectively (or individually as the context may indicate),
      any Security Agreement (substantially in the form of Exhibit J attached
      hereto) delivered to the Agent pursuant to Section 2.12, 5.1
      or
      5.2, as hereafter modified, amended or supplemented from time to
      time.

     

    “Security
      Instruments” means, collectively, the Pledge Agreement, Security Agreement, the
      Lockbox Agreement, the Account Control Agreement and all other agreements,
      instruments and other documents, whether now existing or hereafter in effect,
      pursuant to which any Guarantor, Borrower, any Beneficial Owner, any Subsidiary,
      any Intermediary or any other Person shall grant or convey to the Agent or
      the
      Lenders a Lien in property as security for all or any portion of the
      Obligations, as any of them may be amended, modified or supplemented from time
      to time.

     

    “Single
      Employer Plan” means any Employee Benefit Plan covered by Title IV of ERISA that
      is maintained by the Borrower or any Subsidiary, other than a Multiemployer
      Plan.

     

    “Solvent”
      means, when used with respect to any Person, that at the time of
      determination:

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    (a)           the
      fair value of its assets (both at fair valuation and at present fair saleable
      value on an orderly basis) is in excess of the total amount of its liabilities,
      including Contingent Obligations; and

     

    (b)           it
      is then able and expects to be able to pay its debts as they
      mature;

     

    (c)           it
      has capital sufficient to carry on its business as conducted and as proposed
      to
      be conducted; and

     

    (d)           with
      respect to any Person incorporated in Ireland, such Person is “unable to pay its
      debts” as that phrase is defined under Irish law in Section 214 of the Companies
      Act 1963 and Section 2(3) of the Companies (Amendment) Act 1990.

     

    “Special
      Purpose Subsidiary” means one or more special purpose bankruptcy-remote entities
      (directly or indirectly “economically” owned by Parent) and formed for the
      purpose of financing Eligible Assets.

     

    “Stated
      Termination Date” means (i) the Initial Maturity Date or, if on the Initial
      Maturity Date no Default or Event of Default shall occur and be continuing
      and
      the Parent has exercised the Extension Option, the Extended Maturity Date or
      (ii) if earlier, the Accelerated Maturity Date .

     

    “Subsidiary”
      means any corporation or other entity in which more than 50% of its outstanding
      voting stock or more than 50% of all equity interests is owned directly or
      indirectly by one or more Guarantors, Borrowers and/or by one or more of any
      Guarantor’s Subsidiaries or any Borrower’s Subsidiaries.  With respect
      to any specified Guarantor or Borrower, the “Subsidiaries” of such Guarantor or
      Borrower shall mean (y) any Subsidiary owned directly or indirectly by such
      Guarantor or Borrower or by any of its Subsidiaries, or (z) any trust with
      respect to which such Guarantor or such Borrower or any of its Subsidiaries
      has
      a beneficial interest.

     

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

     

    “Termination
      Event” means:  (i) a “Reportable Event”; (ii) the filing, pursuant to
      Section 412 of the Code or Section 303 of ERISA of an application for a waiver
      of the minimum funding standard with respect to any Single Employer Plan, the
      failure to make by its due date a required installment under Section 412(m)
      of
      the Code with respect to any Single Employer Plan, or the failure by any Loan
      Party or any of its ERISA Affiliates to make any required contribution to a
      Multiemployer Plan; (iii) the incurrence by any Loan Party or any of its ERISA
      Affiliates of any liability under Title IV of ERISA with respect to the
      termination of any Single Employer Plan, including but not limited to the
      imposition of a Lien pursuant to Section 412 of the Code or Section 302 of
      ERISA
      in favor of the PBGC or a Single Employer Plan; (iv) the receipt by any Loan
      Party or any of its ERISA Affiliates from the PBGC or a plan administrator
      of
      any notice relating to 

     

    
      
        
        

      

      
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    an
      intention to terminate any Single Employer Plan or to appoint a trustee to
      administer any Single Employer Plan under Section 4042 of ERISA; (v) a
      determination that any Single Employer Plan is, or is expected to be, in “at
      risk” status (within the meaning of Title IV of ERISA); (vi) the incurrence by
      any Loan Party or any of its ERISA Affiliates of any liability with respect
      to
      the partial or complete withdrawal from any Single Employer Plan or
      Multiemployer Plan; or (vii) the receipt by any Loan Party or any of its ERISA
      Affiliates of any notice concerning the imposition of Withdrawal Liability
      or a
      determination that a Multiemployer Plan is, or is expected to be, insolvent,
      in
      Reorganization or in endangered or critical status, within the meaning of
      Section 432 of the Code or Section 305 or Title IV of ERISA.

     

    “Total
      Revolving Credit Commitment” means a principal amount equal to $300,000,000, as
      may be reduced from time to time in accordance with Section
      2.6.

     

    “Treaty”
      means the “Convention Between the Government of the United States of America and
      the Government of Ireland for the Avoidance of Double Taxation and the
      Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital Gains”
as amended and in effect on the date hereof.

     

    “Trust
      Agreement” means a trust agreement between a Beneficial Owner and a Qualified
      Trustee.

     

    “Trust
      Estate” means all estate, right, title and interest of each Trustee in and to
      each Eligible Asset, each lease and all related documents and all other property
      of the Trustee, including, without limitation, all amounts of rent, insurance
      proceeds (other than liability insurance proceeds payable to or for the benefit
      of any Borrower, any Beneficial Owner, any Lender or the Agent) and requisition,
      indemnity or other payments or any kind for or with respect to each Eligible
      Asset.

     

    “Trustee”
      means a Qualified Trustee, solely in its capacity as trustee under a Trust
      Agreement.

     

    “Type”
      means any type of Loan (i.e., a Base Rate Loan or a Eurodollar Rate
      Loan).

     

    “Unleaseable”
      with respect to a Financed Eligible Asset means (a) such Financed Eligible
      Asset
      shall not be subject to an Eligible Lease for 120 consecutive days (excluding
      the number of days such Eligible Asset shall be undergoing (i) maintenance
      or
      repairs in accordance with the provisions of the Loan Documents, (ii) Approved
      Improvements or (iii) a Qualified Conversion) and (b) after such 120 day period
      the Agent shall have reasonably determined that AIH III or the Irish Holdco
      Party, as applicable, will be unable to lease such Financed Eligible Asset
      within 120 days after the date of determination.

     

    “Voting
      Stock” means shares of capital stock issued by a corporation, or equivalent
      interests in any other Person, the holders of which are ordinarily, in the
      absence of contingencies, entitled to vote for the election of directors (or
      persons performing
      similar functions) of such Person, even if the right so to vote has been
      suspended by the happening of such a contingency.

     

    
      
        
        

      

      
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    1.2.          Rules
      of
      Interpretation.

     

    (a)           All
      accounting terms not specifically defined herein shall have the meanings
      assigned to such terms and shall be interpreted in accordance with GAAP applied
      on a Consistent Basis.

     

    (b)           The
      headings, subheadings and table of contents used herein or in any other Loan
      Document are solely for convenience of reference and shall not constitute a
      part
      of any such document or affect the meaning, construction or effect of any
      provision thereof.

     

    (c)           Except
      as otherwise expressly provided, references herein to articles, sections,
      paragraphs, clauses, annexes, appendices, exhibits and schedules are references
      to articles, sections, paragraphs, clauses, annexes, appendices, exhibits and
      schedules in or to this Agreement.

     

    (d)           All
      definitions set forth herein or in any other Loan Document shall apply to the
      singular as well as the plural form of such defined term, and all references
      to
      the masculine gender shall include reference to the feminine or neuter gender,
      and vice versa, as the context may require.

     

    (e)           When
      used herein or in any other Loan Document, words such as “hereunder”, “hereto”,
“hereof” and “herein” and other words of like import shall, unless the context
      clearly indicates to the contrary, refer to the whole of the applicable document
      and not to any particular article, section, subsection, paragraph or clause
      thereof.

     

    (f)           References
      to “including” means including without limiting the generality of any
      description preceding such term, and for purposes hereof the rule of ejusdem generis shall not be
      applicable to limit a general statement, followed by or referable to an
      enumeration of specific matters, to matters similar to those specifically
      mentioned.

     

    (g)           All
      dates and times of day specified herein shall refer to such dates and times
      in
      New York, New York.

     

    (h)           Each
      of the parties to the Loan Documents and their counsel have reviewed and
      revised, or requested (or had the opportunity to request) revisions to, the
      Loan
      Documents, and any rule of construction that ambiguities are to be resolved
      against the drafting party shall be inapplicable in the construing and
      interpretation of the Loan Documents and all exhibits, schedules and appendices
      thereto.

     

    (i)           Any
      reference to an officer of any Borrower or any other Person by reference to
      the
      title of such officer shall be deemed to refer to each other officer of such
      Person, however titled, exercising the same or substantially similar
      functions.

     

    (j)           All
      references to any agreement or document as amended, modified or supplemented,
      or
      words of similar effect, shall mean such document or agreement, as the case
      may
      be, as amended, modified or supplemented from time to time only as and to the
      extent permitted therein and in the Loan Documents.

     

    
      
        
        

      

      
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    ARTICLE
      II

     

    THE
      REVOLVING CREDIT
      FACILITY

     

    2.1.           Revolving
      Loans.  (a)     Commitment.  Subject
      to the terms and conditions of this Agreement, each Lender severally agrees
      to
      make Loans to any of the Borrowers under the Revolving Credit Facility from
      time
      to time from the Closing Date until the Revolving Credit Termination Date on
      a
      pro rata basis as to the total borrowing requested by the applicable Borrower
      on
      any day determined by such Lender’s Applicable Commitment Percentage up to but
      not exceeding the Revolving Credit Commitment of such Lender, provided, however,
      that (A) the
      proceeds of such Loan shall be used by such Borrower to (i) finance or reimburse
      a Borrower for up to the Allowed Percentage of (x) an Eligible Asset and (y),
      without duplication of amounts included in clause (x), 65% of the costs incurred
      in connection with any Approved Improvements or any Qualified Conversion related
      to such Eligible Asset and (ii) subsequent to the initial purchase of such
      Eligible Asset, to finance up to the Allowed Percentage of such Eligible Asset
      and (B) the amount of such Loan (together with any other Loans relating to
      such
      Eligible Asset) shall not exceed the Allowed Percentage of such Eligible Asset;
      and provided, further,
      that the Lenders
      will not be required and shall have no obligation to make any such Loan (i)
      so
      long as a Default or an Event of Default has occurred and is continuing or
      (ii)
      if the Agent has accelerated the maturity of any of the Loans as a result of
      an
      Event of Default; and provided, further,
      that immediately
      after giving effect to each such Loan, (A) the Borrowers shall be in compliance
      with the Borrowing Base Covenant; and (B) the amount of Revolving Credit
      Outstandings shall not exceed the Total Revolving Credit Commitment; and provided, further,
      that (1) no
      Revolving Loan that is a Eurodollar Rate Loan shall be made which has an
      Interest Period that extends beyond the Stated Termination Date and (2) each
      Revolving Loan that is a Eurodollar Rate Loan may, subject to the provisions
      of
Section 2.6, be
      repaid only on the last day of the Interest Period with respect thereto unless
      such payment is accompanied by the additional payment, if any, required by
Section
      4.5.  Amounts borrowed and subsequently repaid shall not be
      available to the Borrower to re-borrow.

     

    (b)           Amounts.  Each
      Revolving Loan hereunder and each Conversion under Section 2.7, shall be
      in an amount of at least $500,000 (other than Revolving Loans made in connection
      with an Approved Improvement or a Qualified Conversion).

     

    (c)           Procedures.  An
      Authorized Representative shall give the Agent (i) at least three (3) Business
      Days’ irrevocable written notice of an Interest Rate Selection Notice with
      appropriate insertions, effective upon receipt, of each Revolving Loan that
      is
      to be Converted into a Eurodollar Rate Loan prior to 10:30 A.M. and (ii) at
      least one (1) Business Day’s written notice, revocable only on or before noon
      the following Business Day of a Borrowing Notice with appropriate insertions,
      effective upon receipt, of each Revolving Loan (which shall be borrowed as
      a
      Base Rate Loan) prior to 10:30 A.M. and (iii) at least one (1) Business Day’s
      irrevocable written notice of an Interest Rate Selection Notice with appropriate
      insertions, effective upon receipt, of each Revolving Loan that is to be
      Converted into a Base Rate Loan prior to 10:30 

     

    
      
        
        

      

      
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    A.M.  Each
      such notice shall (A) specify the name of the respective Borrower, the amount
      of
      the borrowing, the date of borrowing or Conversion (as applicable), type of
      Revolving Loan (Base Rate or Eurodollar Rate), the date of borrowing and, if
      a
      Eurodollar Rate Loan, the Interest Period to be used in the computation of
      interest and (B) identify the Financed Eligible Asset the acquisition of which
      is to be financed with the proceeds of the borrowing.  Notice of
      receipt of such Borrowing Notice or Interest Rate Selection Notice, as the
      case
      may be, together with the amount of each Lender’s portion of a Loan requested
      thereunder, shall be provided by the Agent to each Lender by facsimile
      transmission with reasonable promptness, but (provided the Agent shall have
      received such notice by 10:30 A.M.) not later than 1:00 P.M. on the same day
      as
      the Agent’s receipt of such notice.

     

    (i)           Promptly
      (and, to the extent feasible, not later than 2:00 P.M.) on the date specified
      for each borrowing under this Section 2.1, each Lender shall, pursuant to the
      terms and subject to the conditions of this Agreement, make the amount of the
      Loan or Loans to be made by it on such day available by wire transfer to the
      Agent in the amount of its pro rata share, determined according to such Lender’s
      Applicable Commitment Percentage of the Revolving Loan or Revolving Loans to
      be
      made on such day. Such wire transfer shall be directed to the Agent at the
      Principal Office and shall be in the form of Dollars constituting immediately
      available funds.  The amount so received by the Agent shall, subject
      to the terms and conditions of this Agreement, be made available to the
      Applicable Borrower by delivery of the proceeds thereof to the Borrowers’
Account or otherwise as shall be directed in the applicable Borrowing Notice
      by
      an Authorized Representative and reasonably acceptable to the
      Agent.

     

    (ii)           Each
      Loan will be made initially as a Base Rate Loan.  The Borrowers shall
      have the option to elect the duration of the initial and any subsequent Interest
      Periods and to Convert the Revolving Loans in accordance with Section
      2.7.  Eurodollar Rate Loans and Base Rate Loans may be
      outstanding at the same time, provided, however,
      there shall
      not be outstanding at any one time Eurodollar Rate Loans for any or any Borrower
      having more than two (2) different Interest Periods.  If the Agent
      does not receive an Interest Rate Selection Notice giving notice of election
      of
      the duration of an Interest Period by the time prescribed by Section 2.7, the
      applicable Borrower shall be deemed to have elected for any Eurodollar Loan
      an
      Interest Period of the duration provided in clause (x) of the definition of
      Interest Period.

     

    2.2.           Payment
      of
      Interest.

     

    (a)           The
      Borrowers, jointly and severally, shall pay interest to the Agent for the
      account of each Lender on the outstanding and unpaid principal amount of each
      Loan made by such Lender for the period commencing on the date of such Loan
      until such Loan shall be due at the then applicable Base Rate for Base Rate
      Loans or applicable Eurodollar Rate for Eurodollar Rate Loans, as designated
      by
      the Authorized Representative pursuant to Section 2.1; provided,
however,
      that if any
      Event of Default shall occur and be continuing, all amounts outstanding
      hereunder shall bear interest during such period at the Default
      Rate.

     

    
      
        
        

      

      
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    (b)           Interest
      on each Loan shall be computed on the basis of a year of 360 days for Eurodollar
      Rate Loans and 365/366 days for Base Rate Loans and calculated in each case
      for
      the actual number of days elapsed.  Interest on each Loan shall be
      paid (x) monthly in arrears on the twentieth (20th)
      calendar day of
      each calendar month (or, if such day is not a Business Day, on the next
      succeeding Business Day), (y) upon payment or prepayment of the principal amount
      of any Loan or any portion thereof, on the amount so paid or prepaid and (z)
      at
      the Revolving Credit Termination Date.

     

    2.3.           Payment
      of
      Principal.

     

    (a)           Scheduled
      Repayment;
      Voluntary Prepayments.  The principal amount of each Revolving
      Loan shall be due and payable to the Agent for the benefit of each Lender in
      full on the Stated Termination Date, or earlier as specifically provided
      herein.  The Borrower may prepay the outstanding principal amount of
      any Eurodollar Loan, in whole or in part, upon two Business Days’ notice to the
      Lenders and, in the case of Base Rate Loans, upon same day notice to the. All
      such prepayments must be accompanied by accrued interest up to, and including,
      the date of such prepayment and any compensation due under Section 4.5
      hereof.

     

    (b)           Mandatory
      Prepayments.

     

     
      (i)           Upon the
      sale or refinancing of any Financed Eligible Asset or other asset by any
      Borrower (including the sale or disposition of the equity interests in any
      such
      Borrower that holds a Financed Eligible Asset (including a transfer to any
      Special Purpose Subsidiary in connection with the ACS 2008-1 Transaction or
      otherwise) but excluding any transfer of an Eligible Asset to a direct or
      indirect Subsidiary of AIH III or the Irish Holdco Party who, in connection
      with
      such transfer will assume all of the transferor’s obligations and shall satisfy
      all requirements under Section 5.2 to become
      a Borrower hereunder), or upon the refinancing of any Indebtedness of any
      Borrower arising from any Loan hereunder, the Borrowers, jointly and severally,
      shall immediately pay to the Agent an amount equal to the greater of (A) the
      outstanding principal of and accrued interest on any Loans made to, or for
      the
      benefit of, such Borrower in connection with such Financed Eligible Asset and
      (B) an amount sufficient to bring the Borrowers into compliance with the
      Borrowing Base Covenant after giving effect to such sale, disposition or
      refinancing.  If any net proceeds of such sale or refinancing remain
      after the repayment in full of all outstanding principal and accrued interest
      on
      the Loans attributable to the Financed Eligible Asset sold, such excess proceeds
      shall be applied first, to reduce the outstanding principal and accrued interest
      on Loans as directed by AIH III or the Irish Holdco Party until the Borrowers
      are in compliance with the Borrowing Base Covenant and second, if no Default
      or
      Event of Default exists at the time, to the Applicable Borrower to be used
      or
      distributed by the Applicable Borrower in its sole discretion.

     

     
      (ii)           If as of
      any Calculation Date the aggregate principal amount of the Loans shall be
      greater than the Aggregate Allowed Percentage of the Borrowing Base on such
      day,
      the Borrowers shall, on the Payment Date immediately following such Calculation
      Date, prepay the Loans in an amount equal to the 

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

     

    amount
      necessary to cause the aggregate outstanding principal amount of the Loans
      to be
      not greater than the Aggregate Allowed Percentage of the Borrowing Base on
      such
      Payment Day.

     

     
      (iii)           If the
      estimated amount of out of pocket costs incurred by an Applicable Borrower
      in
      connection with the acquisition of a Financed Eligible Asset exceeds the actual
      amount of such out of pocket costs included in the Purchase Price of such
      Financed Eligible Asset, the Borrowers shall prepay the Loan relating to such
      Financed Eligible Asset in an amount equal to the Aggregate Allowed Percentage
      of such excess out of pocket costs within five Business Days after a Responsible
      Officer learns of such excess.

     

     
      (iv)           The
      Borrowers, jointly and severally, shall prepay the Loans in respect of a
      Financed Eligible Asset upon the occurrence of an Event of Loss in respect
      of
      such Finance Eligible Asset and on the date required by Section 3.8(b) of the
      Security Agreement.  If any net proceeds received in respect of such
      Event of Loss remain after the repayment in full of all outstanding principal
      and accrued interest on such Loans, if no Default or Event of Default exists
      at
      the time, such excess proceeds shall be paid to the Applicable Borrower and
      may
      be used by such Borrower in accordance with the terms of this Agreement and
      the
      other Loan Documents.

     

    2.4.           Manner
      of
      Payment.  Each
      payment of principal (including any prepayment) and payment of interest and
      fees, and any other amount required to be paid to the Lenders with respect
      to
      the Loans, shall be made to the Agent at the Principal Office, for the account
      of each Lender, in Dollars and in immediately available funds without setoff,
      deduction or counterclaim before 12:30 P.M. on the date such payment is
      due.

     

    (a)           The
      Agent shall deem any payment made by or on behalf of any Borrower hereunder
      that
      is not made both in Dollars and in immediately available funds and prior to
      12:30 P.M. to be a non-conforming payment.  Any such payment shall not
      be deemed to be received by the Agent until the time such funds become available
      funds.  Any non-conforming payment may constitute or become a Default
      or Event of Default.  Interest shall continue to accrue on any
      principal as to which a non-conforming payment is made until the later of (x)
      the date such funds become available funds or (y) the next Business Day at
      the
      Default Rate from the date such amount was due and payable.

     

    (b)           In
      the event that any payment hereunder becomes due and payable on a day other
      than
      a Business Day, then such due date shall be extended to the next succeeding
      Business Day unless provided otherwise under clause (ii) of the definition
      of
“Interest Period”; provided that
      interest shall continue to accrue during the period of any such extension and
      provided, further,
      that in no
      event shall any such due date be extended beyond the Revolving Credit
      Termination Date.

     

    (c)           Any
      payment or prepayment of any principal or interest on any Loan hereunder shall
      be accompanied by a certificate signed by an Authorized Representative and
      delivered to the Agent, which certificate shall identify such Loan, the amount
      of principal and interest paid thereon, and the Borrower to whom, or for whose
      benefit, such Loan was originally advanced.

     

    
      
        
        

      

      
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    2.5.           Pro
      Rata
      Payments.  Except
      as otherwise provided herein, (a) each payment on account of the principal
      of
      and interest on the Loans and the fees described in Section 2.9 shall be
      made to the Agent for the account of the Lenders pro rata based on their
      Applicable Commitment Percentages, (b) all payments to be made by any Borrower
      for the account of each of the Lenders on account of principal, interest and
      fees, shall be made without diminution, setoff, recoupment or counterclaim,
      and
      (c) the Agent will promptly distribute to the Lenders in immediately available
      funds payments received in fully collected, immediately available funds from
      any
      Borrower.

     

    2.6.           Reductions. 
       (a)   The Borrowers shall, by notice from an Authorized
      Representative, have the right from time to time but not more frequently than
      once each calendar month, upon not less than three (3) Business Days’ written
      notice to the Agent, effective upon receipt, to reduce the Total Revolving
      Credit Commitment. The Agent shall give each Lender, within one (1) Business
      Day
      of receipt of such notice, facsimile notice, or telephonic notice (confirmed
      in
      writing), of such reduction.  Each such reduction shall be in the
      aggregate amount of $5,000,000 or such greater amount which is in an integral
      multiple of $1,000,000, or the entire remaining Total Revolving Credit
      Commitment, and shall permanently reduce the Total Revolving Credit
      Commitment.  Each reduction of the Total Revolving Credit Commitment
      shall be accompanied by payment of the Revolving Loans to the extent that the
      principal amount of Revolving Credit Outstandings exceeds the Total Revolving
      Credit Commitment after giving effect to such reduction, together with accrued
      and unpaid interest on the amounts prepaid.  No such reduction shall
      result in the payment of any Eurodollar Rate Loan other than on the last day
      of
      the Interest Period of such Eurodollar Rate Loan unless such prepayment is
      accompanied by amounts due, if any, under Section 4.5;
      and

     

    (b)           Any
      net proceeds received in connection with any prepayment pursuant to Section 2.3 shall be
      applied on such date toward the prepayment of the Loans and the reduction of
      the
      Total Revolving Credit Commitment as set forth in paragraph (a)
      above.

     

    2.7.          Conversions
      and Elections of
      Subsequent Interest Periods.  Subject
      to the limitations set forth below and in Article IV, the Borrowers
      may:

     

    (a)           upon
      delivery, effective upon receipt, of a properly completed Interest Rate
      Selection Notice to the Agent on or before 10:30 A.M. on any Business Day,
      Convert all or a part of Eurodollar Rate Loans to Base Rate Loans on the last
      day of the Interest Period for such Eurodollar Rate Loans; and

     

    (b)           provided
      that no Default or Event of Default shall have occurred and be continuing and
      upon delivery, effective upon receipt, of a properly completed Interest Rate
      Selection Notice to the Agent on or before 10:30 A.M. three (3) Business Days’
prior to the date of such election or Conversion:

     

    
      
        
        

      

      
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    (i)           elect
      a subsequent Interest Period for all or a portion of Eurodollar Rate Loans
      to
      begin on the last day of the then current Interest Period for such Eurodollar
      Rate Loans; and

     

    (ii)           Convert
      Base Rate Loans to Eurodollar Rate Loans on any Business Day.

     

    Each
      election and Conversion pursuant to this Section 2.7 shall be
      subject to the limitations on Eurodollar Rate Loans set forth in the definition
      of “Interest Period” herein and in Sections 2.1, 2.3 and
Article
      IV.  The Agent shall give written notice to each Lender of such
      notice of election or Conversion prior to 3:00 P.M. on the day such notice
      of
      election or Conversion is received.  All such Continuations or
      Conversions of Loans shall be effected pro rata based on the Applicable
      Commitment Percentages of the Lenders.

     

    2.8.           Increase
      and Decrease in
      Amounts.  The
      amount of the Total Revolving Credit Commitment that shall be available to
      the
      Borrowers as Loans shall be reduced by the aggregate amount of Revolving Credit
      Outstandings.

     

    2.9.           Fees.  Borrower
      shall pay (i) the fees specified in the Fee Letters on the dates specified
      therein and (ii) a commitment fee for the period from and including the date
      hereof to the Revolving Credit Termination Date, computed at a rate of 0.25%
      per
      annum to but excluding the Initial Maturity Date and, if the Extension Option
      has been exercised, 0.375% per annum from and including the Initial Maturity
      Date to the Stated Termination Date on the average daily amount of the available
      unused Revolving Credit Commitment of such Lender during the period for which
      payment is made, payable monthly in arrears on each Fee Payment Date, commencing
      on the first such date to occur after the date hereof.

     

    2.10.         Deficiency
      Advances.  No
      Lender shall be responsible for any default of any other Lender in respect
      to
      such other Lender’s obligation to make any Loan hereunder nor shall the
      Revolving Credit Commitment of any Lender hereunder be increased as a result
      of
      such default of any other Lender.  Without limiting the generality of
      the foregoing, in the event any Lender shall fail to advance funds to any
      Borrower as herein provided, the Agent may in its discretion and in its capacity
      as a Lender, but shall not be obligated to, advance all or any portion of such
      amount or amounts (each, a “deficiency advance”) and shall thereafter be
      entitled to payments of principal of and interest on such deficiency advance
      in
      the same manner and at the same interest rate or rates as if it had originally
      made such Loan; provided that, (i) such defaulting Lender shall not be entitled
      to receive payments of principal, interest or fees with respect to such
      deficiency advance until such deficiency advance shall be paid by such Lender
      and (ii) upon payment to the Agent from such other Lender of the entire
      outstanding amount of each such deficiency advance, together with accrued and
      unpaid interest thereon, from the most recent date or dates interest was paid
      to
      the Agent by a Borrower on each Loan comprising the deficiency advance at the
      interest rate per annum for overnight borrowing by the Agent from the Federal
      Reserve Bank, then such payment shall be to the Agent as a Lender in full
      payment of such deficiency advance and such Borrower shall be deemed to have
      borrowed the amount of such deficiency advance from such other Lender as of
      the
      most recent date or dates, as the case may be, upon which any payments of
      interest were made by such Borrower thereon.

     

    
      
        
        

      

      
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    2.11.          Use
      of
      Proceeds.  The
      proceeds of each Loan made pursuant to the Revolving Credit Facility hereunder
      shall be used by the Applicable Borrower to (a) finance or reimburse a Borrower
      for up to the Allowed Percentage of an Eligible Asset, and 65% of the costs
      incurred in connection with any Approved Improvements or any Qualified
      Conversion or (b) subsequent to the initial purchase of an Eligible Asset,
      finance up to the Allowed Percentage of such Eligible Asset.

     

    2.12.          Designation
      of Borrowing
      Affiliate; Releases.

     

    (a)            
      An Authorized Representative may from time to time designate any Holdings
      Subsidiary Trust or Holdings SPC which has not joined in the execution of this
      Agreement as a “Borrowing Affiliate” hereunder by causing such Holdings
      Subsidiary Trust or Holdings SPC to execute and deliver a duly completed
      Assumption Letter (in the form attached hereto as Exhibit Q) to the
      Agent with the written acknowledgment of the Borrowers and the Agent at the
      foot
      thereof, together with (a) Facility Guaranties executed by each Beneficial
      Owner
      of any such Holdings Subsidiary Trust, by each Subsidiary of any such Beneficial
      Owner (other than such Holdings Subsidiary Trust), by each Subsidiary of such
      Holdings Subsidiary Trust or of such Holdings SPC and by the Applicable
      Intermediary (if any), (b) Security Agreements signed by such Holdings
      Subsidiary Trust or Holdings SPC, by each Beneficial Owner of any such Holdings
      Subsidiary Trust, by each Subsidiary of any such Beneficial Owner, by each
      Subsidiary of such Holdings Subsidiary Trust or Holdings SPC and by the
      Applicable Intermediary (if any), (c) Pledge Agreements signed by the respective
      Beneficial Owners and other owners, granting a security interest in the Pledged
      Interests in such Holdings Subsidiary Trust or Holdings SPC in any Subsidiary
      thereof, in any Beneficial Owner and in any Subsidiary thereof, and in the
      Applicable Intermediary (if any), and (d) all additional documents required
      under such Assumption Letter.  Upon such execution, delivery and
      consent, such Holdings Subsidiary Trust or Holdings SPC (as the case may be)
      shall for all purposes be a party hereto as a Borrower as fully as if it had
      executed and delivered this Agreement.

     

    (b)            
      So long as (w) all Loans made to or on behalf of any Borrower, together with
      all
      accrued interest on such Loans, have been paid in full, (x) all other
      outstanding Obligations of such Borrower (except Obligations to pay principal
      and interest on Loans other than those Loans described in clause (w)) have
      been
      paid in full, (y) no Default or Event of Default has occurred and will be
      continuing after giving effect to such termination, and (z) any prepayment
      required under Section
      2.3(b) has been made, then such Borrower may, by not less than three (3)
      days prior notice to the Agent (which shall promptly notify the Lenders
      thereof), (i) terminate its status as a “Borrowing Affiliate” and “Borrower”
hereunder and under the other Loan Documents, and (ii) (with respect to any
      Beneficial Owner of such Borrower) unless such Person also holds a beneficial
      interest in any other Borrower, terminate the status of such Person and any
      other Subsidiary of such Person as a “Guarantor” hereunder and under the other
      Loan Documents, and (iii) terminate the status of the Applicable Intermediary
      (if any) and any other Subsidiary of such Borrower as a “Guarantor” hereunder
      and under the other Loan Documents.  Upon such terminations (provided
      the conditions to such terminations are satisfied), the Agent shall take all
      actions reasonably requested by such Borrower (A) to release the Liens of the
      Agent on all Collateral owned by such Borrower and its Subsidiaries (including
      the Applicable Intermediary, if any) and to release such Borrower and such
      Subsidiaries from all of their 

     

    
      
        
        

      

      
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    respective
      obligations under the Loan Documents (including without limitation a written
      release to such effect), (B) unless such Beneficial Owner also holds a
      beneficial interest in any other Borrower, to release the Liens of the Agent
      on
      all Collateral owned by such Beneficial Owner and its other Subsidiaries and
      to
      release such Beneficial Owner and such other Subsidiaries from all of their
      respective obligations under the Loan Documents (including without limitation
      a
      written release to such effect), (C) to release the Lien of the Agent with
      respect to any Pledged Interests in such Borrower, its Subsidiaries and the
      Applicable Intermediary, and (D) (unless such Beneficial Owner also holds a
      beneficial interest in any other Borrower) to release the Lien of the Agent
      with
      respect to any Pledged Interests in such Beneficial Owner.  Any
      provision of this Section 2.12 or any
      other provision of any Loan Document notwithstanding, in no event shall AIH
      III
      or the Irish Holdco Party,  be released from its obligations to pay
      indemnification to, or reimburse any costs or expenses of, the Agent or any
      Lender (including without limitation the obligations under Article IV and Sections
      4.6, 7.15,
11.5
      and 11.9), which
      agreements and obligations shall survive any release or termination of any
      Credit Party (other than AIH III ) pursuant to this Section
      2.11.

     

    2.13.          Joint
      and Several
      Liability.  Each
      Borrower (including without limitation each Borrowing Affiliate) agrees and
      acknowledges that the Obligations (subject to the proviso in the last sentence
      in the definition of “Obligations” as such term is defined in Section 1.1
      herein) constitute and will constitute joint and several obligations and
      liabilities of the Borrowers; provided, however, that anything herein or in
      any
      other Loan Document to the contrary notwithstanding, the maximum liability
      of
      each Borrower with respect to the joint and several liability under this Section
      2.13 shall in no event exceed the amount which can be guaranteed by such
      Borrower under applicable federal, state and applicable foreign laws relating
      to
      the insolvency of debtors.  Each Borrower further agrees and
      acknowledges that all actions taken, elections made and notices and certificates
      furnished or received by it under or pursuant to the Loan Documents shall
      constitute the action, election, notice or certification of all of the Borrowers
      under the Loan Documents, and that each Authorized Representative shall have
      full authority to act for and on behalf of all of the Borrowers for all purposes
      of the Loan Documents. Each Borrower agrees that the joint and several liability
      of the Borrowers shall not be impaired or affected by any modification,
      supplement, extension or amendment of any contract or agreement to which the
      parties thereto may hereafter agree, nor by any modification, release or other
      alteration of any of the rights of the Agent or any Lender with respect to
      the
      Collateral other than as provided in Section 2.12(b) hereof, nor by any delay,
      extension of time, renewal, compromise or other indulgence granted by the Agent,
      any Lender or any other Person with respect to any of the Obligations, nor
      by
      any other agreements or arrangements whatever with any other Borrower or with
      anyone else, each Borrower hereby waiving all notice of any such delay,
      extension, release, substitution, renewal, compromise or any such delay,
      extension, release, substitution, renewal, compromise or other indulgence,
      and
      hereby consenting to be bound thereby as fully and effectually as if it had
      expressly agreed thereto in advance.  The liability of each Borrower
      hereunder is direct and unconditional as to all of the Obligations hereunder,
      and may be enforced without requiring the Agent, any Lender or any other Person
      first to resort to any other right, remedy or security; no Borrower shall have
      any right of subrogation, reimbursement or indemnity whatsoever, nor any right
      of recourse to security for indemnity whatsoever, nor any right of recourse
      to
      security for any of the Obligations hereunder, unless and until all of said
      Obligations have been paid in full; except as provided in Section 

     

    
      
        
        

      

      
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    2.12(b)
      hereof and subject to the proviso to the first sentence of this Section 2.13,
      nothing shall discharge or satisfy the liability of any Borrower hereunder
      except the full payment and performance of all of the Obligations; any and
      all
      present and future debts and obligations of each Borrower to the other Borrowers
      are hereby waived and postponed in favor of and subordinated to the full payment
      and performance of all present and future Obligations of the Borrowers to the
      Agent, the Lenders and any other Person.

     

    2.14.          Eligible
      Lease Involving
      Eligible Intermediary.  In
      lieu of leasing a Financed Eligible Asset directly to an Eligible Carrier,
      a
      Borrower may lease such Financed Eligible Asset directly to an Eligible
      Intermediary pursuant to an Eligible Lease described in clause (X) of the
      proviso to the definition of “Eligible Lease”; provided
      that

     

    (a)           
      such Eligible Intermediary simultaneously subleases such Eligible Asset to
      an
      Eligible Carrier pursuant to an Eligible Lease described in clause (Y) of the
      proviso to the definition of “Eligible Lease” and such sublease is pledged as
      collateral security for the obligations of the Eligible Intermediary under
      the
      head lease;

     

    (b)        
         in the case of any Loan with respect to such Eligible Asset,
      all Loan conditions that pertain to any Eligible Lease or other Lease by a
      Borrower of such Eligible Asset (including without limitation requirements
      concerning the perfection of Liens on Collateral, and delivery of copies of
      the
      Leases and Lessee Notices) shall be satisfied with respect to each such Lease
      to
      or by the Applicable Intermediary;

     

    (c)      
           all provisions of any Loan Document that pertain
      to any Eligible Lease or other Lease by a Borrower of such Eligible Asset shall
      apply to each such Lease to or by the Applicable Intermediary; and

     

    (d)          
       the lease/sublease structure shall not result in adverse tax or other
      consequences to the Agent or any Lender which have not been indemnified or
      otherwise addressed to the reasonable satisfaction of the Agent.

     

    ARTICLE
      III

     

    SECURITY

     

    3.1.           Security.  As
      security for the full and timely payment and performance of all Obligations,
      each Borrower will, or will cause the Credit Parties to, on or before the date
      of the initial Loan do or cause to be done all things necessary in the
      reasonable opinion of the Agent and its counsel to grant to the Agent for the
      benefit of the Lenders a duly perfected first priority security interest under
      all applicable laws in all Collateral subject to no prior Lien or other
      encumbrance (that, in each case, has not previously been satisfied in full)
      or
      restriction on transfer (other than Permitted Liens).

     

    3.2.           Further
      Assurances.  At
      the request of the Agent, each Borrower will, or will cause the other Credit
      Parties to, execute, by its duly authorized officers, alone or with the Agent,
      any certificate, instrument, statement or document, or to procure any such
      certificate, instrument, statement or document, or to take such other action
      (and pay all connected costs) 

     

    
      
        
        

      

      
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    which
      the Agent reasonably deems necessary from time to time to create, continue
      or
      preserve the liens and security interests in Collateral (and the perfection
      and
      priority thereof) of the Agent contemplated hereby and by the other Loan
      Documents and specifically including all Collateral acquired by any Borrower,
      or
      any Guarantor or any other Credit Party after the Closing Date.

     

    3.3.           Information
      Regarding
      Collateral.  AIH
      III,  the Irish Holdco Party and each Borrower represents, warrants
      and covenants that (i) the chief executive office of the Parent, AHC Ltd.,
      Ireland Holding Ltd. and each Credit Party providing Collateral pursuant to
      a
      Security Instrument (each, a “Grantor”) at the Closing Date is located at the
      address or addresses specified on Schedule 3.3, and
      (ii) Schedule
      3.3 (as may be amended, supplemented or modified from time to time)
      contains a true and complete list of (a) the name and address of each Grantor,
      (b) each location of the chief executive office and principal place of business
      of each Grantor and (c) the country of
      registration (if applicable) of each Eligible Asset.  No Borrower
      shall change, or permit any other Grantor to change, the location of its chief
      executive office or principal place of business, or use or permit any other
      Grantor to use, any additional trade style, except upon giving not less than
      thirty (30) days’ prior written notice to the Agent and taking or causing to be
      taken all such action at the Borrowers’ or such other Grantor’s expense as may
      be reasonably requested by the Agent to perfect or maintain the perfection
      of
      the Lien of the Agent in Collateral.

     

    3.4.           Quiet
      Enjoyment.  The
      Agent and each Lender hereby agree that, so long as no Lease Event of Default
      shall have occurred and be continuing under an Eligible Lease, it will not
      interfere with the quiet enjoyment of the possession and use of the Eligible
      Asset by the Applicable Carrier during the term of such Eligible Lease and
      it
      will (subject to any requirements or restrictions imposed by applicable law)
      dispose of its interest in the Eligible Asset leased under such Eligible Lease
      expressly subject to such Eligible Lease and on terms such that the purchaser
      provides a similar right of quiet enjoyment to such Applicable
      Carrier.  Upon the request of any Borrower, the Agent (on behalf of
      itself and the Lenders) will confirm the immediately preceding sentence in
      writing to any Applicable Carrier.

     

    ARTICLE
      IV

     

    CHANGE
      IN
      CIRCUMSTANCES

     

    4.1.        Requirements
      of
      Law.

     

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

     

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

     

    
      
        
        

      

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

     

    and
      the result of any of the foregoing is to increase the cost (other than a Tax)
      to
      such Lender, by an amount that such Lender deems to be material, of making,
      converting into, continuing or maintaining Eurodollar Rate Loans or to reduce
      any amount receivable hereunder in respect thereof (other than by reason of
      any
      Tax), then, in any such case, the Borrowers shall promptly pay such Lender,
      upon
      its demand, any additional amounts necessary to compensate such Lender (on
      an
      after-tax basis) for such increased cost or reduced amount
      receivable.  If any Lender becomes entitled to claim any additional
      amounts pursuant to this paragraph, it shall promptly notify the Borrowers
      (with
      a copy to the Agent) of the event by reason of which it has become so
      entitled.

     

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

     

    (c)          Each
      Lender shall promptly notify AIH III, the Irish Holdco Party and the Agent
      of
      any event of which it has knowledge occurring after the date hereof, which
      will
      entitle a Lender to compensation pursuant to this Section 4.1, and such
      Lender shall, upon written request by AIH III, or the Irish Holdco Party or
      any
      Borrower, designate a different Applicable Lending Office if such designation
      will avoid the need for, or reduce the amount of, such compensation and will
      not, in the judgment of such Lender, be otherwise disadvantageous to
      it.  A certificate as to any additional amounts payable pursuant to
      this Section submitted by any Lender to the Borrowers (with a copy to the Agent)
      shall be conclusive in the absence of manifest error.  Notwithstanding
      anything to the contrary in this Section, the Borrowers shall not be required
      to
      compensate a Lender pursuant to this Section for any amounts incurred more
      than
      three months prior to the date that such Lender notifies the Borrowers of such
      Lender’s intention to claim compensation therefor; provided that, if
      the
      circumstances giving rise to such claim have a retroactive effect, then such
      three-month period shall be extended to include the period of such retroactive
      effect.  The obligations of the Borrowers pursuant to this Section
      shall survive the termination of this Agreement and the payment of the Loans
      and
      all other amounts payable hereunder.

     

    4.2.          Limitation
      on Types of
      Loans.  If
      on or prior to the first day of any Interest Period for any Eurodollar Rate
      Loan:

     

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

     

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

     

    (b)           the
      Required Lenders determine (which determination shall be conclusive) and notify
      the Agent that the Eurodollar Rate will not adequately and fairly reflect the
      cost to the Lenders of funding Eurodollar Rate Loans for such Interest
      Period;

     

    then
      the Agent shall give the Borrowers prompt notice thereof specifying the relevant
      Type of Loans and the relevant amounts or periods, and so long as such condition
      remains in effect, the Lenders shall be under no obligation to make additional
      Loans of such Type, Continue Loans of such Type or to Convert Loans of any
      other
      Type into Loans of such Type, and the Borrowers shall, jointly and severally,
      on
      the last day(s) of the then current Interest Period(s) for the outstanding
      Loans
      of the affected Type, either prepay such Loans or Convert such Loans into Base
      Rate Loans in accordance with the terms of this Agreement.

     

    4.3.           Illegality.  Notwithstanding
      any other provision of this Agreement, in the event that it becomes unlawful
      for
      any Lender or its Applicable Lending Office to make, maintain, or fund
      Eurodollar Rate Loans hereunder, then such Lender shall promptly notify the
      Borrowers thereof and such Lender’s obligation to make or Continue Eurodollar
      Rate Loans and to Convert other Types of Loans into Eurodollar Rate Loans shall
      be suspended until such time as such Lender may again make, maintain, and fund
      Eurodollar Rate Loans (in which case the provisions of Section 4.4 shall be
      applicable).

     

    4.4.           Treatment
      of Affected
      Loans.  If
      the obligation of any Lender to make a Eurodollar Rate Loan or to Continue,
      or
      to Convert Loans of any other Type into, Loans of a particular Type shall be
      suspended pursuant to Section 4.1 or 4.3 hereof (Loans of such Type being herein
      called “Affected Loans” and such Type being herein called the “Affected Type”),
      such Lender’s Affected Loans shall be automatically Converted into Base Rate
      Loans on the last day(s) of the then current Interest Period(s) for Affected
      Loans (or, in the case of a Conversion required by Section 4.3 hereof, on such
      earlier date as such Lender may specify to the Borrowers with a copy to the
      Agent) and, unless and until such Lender gives notice as provided below that
      the
      circumstances specified in Section 4.1 or 4.3 hereof that gave rise to such
      Conversion no longer exist:

     

    (a)           to
      the extent that such Lender’s Affected Loans have been so Converted, all
      payments and prepayments of principal that would otherwise be applied to such
      Lender’s Affected Loans shall be applied instead to its Base Rate Loans;
      and

     

    (b)           all
      Loans that would otherwise be made or Continued by such Lender as Loans of
      the
      Affected Type shall be made or Continued instead as Base Rate Loans, and all
      Loans of such Lender that would otherwise be Converted into Loans of the
      Affected Type shall be Converted instead into (or shall remain as) Base Rate
      Loans.

     

    If
      such Lender gives notice to the Borrowers (with a copy to the Agent) that the
      circumstances specified in Section 4.1 or 4.3
      hereof that gave rise to the Conversion of such Lender’s Affected Loans pursuant
      to this Section
      4.4 no longer exist (which such Lender agrees to do promptly

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

     

    upon
      such circumstances ceasing to exist) at a time when Loans of the Affected Type
      made by other Lenders are outstanding, such Lender’s Base Rate Loans shall be
      automatically Converted, on the first day(s) of the next succeeding Interest
      Period(s) for such outstanding Loans of the Affected Type, to the extent
      necessary so that, after giving effect thereto, all Loans held by the Lenders
      holding Loans of the Affected Type and by such Lender are held pro rata (as
      to
      principal amounts, Types, and Interest Periods) in accordance with their
      respective Revolving Credit Commitments.

     

    4.5.           Compensation.  Upon
      the request of any Lender, AIH III, the Irish Holdco Party and the Borrowers,
      jointly and severally, shall pay to such Lender such amount or amounts as shall
      be sufficient (in the reasonable opinion of such Lender) to compensate it for
      any loss, cost, or expense incurred by it as a result of:

     

    (a)           any
      payment, prepayment, or Conversion of a Eurodollar Rate Loan for any reason
      (including, without limitation, the acceleration of the Loans pursuant to Section 9.1) on a
      date other than the last day of the Interest Period for such Loan;
      or

     

    (b)           any
      failure by any Borrower for any reason (including, without limitation, the
      failure of any condition precedent specified in Article V to be
      satisfied) to borrow, Convert, Continue, or prepay a Eurodollar Rate Loan on
      the
      date for such borrowing, Conversion, Continuation, or prepayment specified
      in
      the relevant notice of borrowing, prepayment, Continuation, or Conversion under
      this Agreement.

     

    4.6.          Taxes.

     

    (a)           Any
      and all payments by any Borrower to or for the account of any Lender or the
      Agent hereunder or under any other Loan Document shall be made free and clear
      of
      and without deduction or withholding for any and all Taxes, and all liabilities
      with respect thereto, now or hereafter imposed, levied, collected, withheld
      or
      assessed by any Governmental Authority, excluding, in the
      case of each Lender and the Agent, Taxes imposed on its income, receipts,
      capital, net worth or items of tax preference and franchise, doing business
      and
      similar Taxes (imposed on it in lieu of net income taxes), imposed on such
      Lender or Agent as a result of a present or former connection between the Agent
      or such Lender and the jurisdiction of the Governmental Authority imposing
      such
      tax or any political subdivision or taxing authority thereof or therein (other
      than any such connection arising solely from the Agent or such Lender having
      executed, delivered or performed its obligations or received a payment under,
      or
      enforced, this Agreement or any other Loan Document).  If any such
      non-excluded Taxes (“Indemnified Taxes”) or Other Taxes (as defined below) are
      required to be withheld after the date hereof from or in respect of any sum
      payable under this Agreement or any other Loan Document to any Lender or the
      Agent, (i) the sum payable shall be increased as necessary so that after making
      all required deductions (including deductions applicable to additional sums
      payable under this Section 4.6) such
      Lender or the Agent receives an amount equal to the sum it would have received
      had no such deductions been made, (ii) such Borrower shall make such deductions,
      (iii) such Borrower shall timely pay the full amount deducted to the relevant
      taxation authority or other authority in accordance with applicable law, and
      (iv) such Borrower shall furnish to the Agent, at its address referred to in
      Section 11.2,
      the original or a certified copy of a receipt evidencing payment thereof or
      other evidence of payment reasonably acceptable to such 

     

    
      
        
        

      

      
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    Lender
      or the Agent; provided, however,
      that the
      Borrowers shall not be required to increase such amounts payable to any Lender
      with respect to any Taxes (i) that are attributable to such Lender’s failure to
      comply with the requirements of paragraph (d) or (e) of this Section or (ii)
      that are United States or Irish withholding taxes imposed on amounts payable
      to
      such Lender at the time such Lender becomes a party to this Agreement, except
      to
      the extent that such Lender’s assignor (if any) was entitled, at the time of
      assignment, to receive additional amounts from the Borrowers with respect to
      such Taxes pursuant to this paragraph.

     

    (b)           In
      addition, AIH III, the Irish Holdco Party and the Borrowers agree, jointly
      and
      severally, to timely pay any and all present or future stamp or documentary
      taxes which arise from the execution or delivery of this Agreement or any other
      Loan Document or the provision of the security interest in any Collateral
      required hereunder (hereinafter referred to as “Other Taxes”).

     

    (c)           AIH
      III, the Irish Holdco Party and the Borrowers agree, jointly and severally,
      to
      indemnify each Lender and the Agent for the full amount of Indemnified Taxes
      and
      Other Taxes (including, without limitation, any Indemnified Taxes or Other
      Taxes
      imposed or asserted by any jurisdiction on amounts payable under this Section 4.6) paid by
      such Lender or the Agent (as the case may be) and any liability (including
      penalties, interest, and expenses) arising therefrom or with respect
      thereto.

     

    (d)           Each
      Lender, on or prior to the date of its execution and delivery of this Agreement
      in the case of each Lender listed on the signature pages hereof and on or prior
      to the date on which it becomes a Lender in the case of each other Lender,
      and
      from time to time thereafter if requested in writing by any Borrower or the
      Agent (unless such failure is due to a change in treaty, law or regulation
      occurring subsequent to the date on which a form originally was required to
      be
      provided), shall provide the Borrowers and the Agent with (i) a complete and
      properly executed Internal Revenue Service Form W-8BEN, W-8ECI or W-8IMY
      (including all required accompanying information), as appropriate, or any
      successor form prescribed by the Internal Revenue Service (including a United
      States taxpayer identification number), certifying that such Lender is entitled
      to benefits under an income tax treaty to which the United States is a party
      which reduces the rate of withholding tax on payments of interest, certifying
      that the Lender is eligible for the “portfolio interest exemption” or certifying
      that the income receivable pursuant to this Agreement is effectively connected
      with the conduct of a trade or business in the United States or (ii) Internal
      Revenue Service Form W-9 or any successor form prescribed by the Internal
      Revenue Service.  In addition, each Lender and the Agent agrees that
      it will (i) take all actions reasonably requested by AIH III, the Irish Holdco
      Party or a Borrower in writing that are consistent with applicable legal and
      regulatory restrictions to claim any available reductions or exemptions from
      Indemnified Taxes or Other Taxes  and (ii) otherwise cooperate with
      AIH III, the Irish Holdco Party and the Borrowers to minimize any amounts
      payable by AIH III, the Irish Holdco Party or the Borrowers under this Section 4.6; provided,
however,
      that in each
      case, any out-of-pocket cost relating to such action or cooperation requested
      by
      AIH III, the Irish Holdco Party or a Borrower shall be borne by AIH III, the
      Irish Holdco Party or such Borrower and no Lender shall be required to take
      any
      action that it determines in its sole good faith discretion, may be adverse
      in
      any non de minimis respect to it and not indemnified to its
      satisfaction.  Each Lender listed on the signature page hereto
      represents that it is a Qualifying Lender as of the Closing Date and each
      assignee represents that it is a Qualifying Lender as of the date such party
      becomes an assignee.

     

    
      
        
        

      

      
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    (e)           A
      Lender that is entitled to an exemption from or reduction of non-U.S.
      withholding tax under the law of the jurisdiction in which a Borrower is
      located, or any treaty to which such jurisdiction is a party, with respect
      to
      payments under this Agreement shall deliver to such Borrower (with a copy to
      the
      Agent), at the time or times prescribed by applicable law or reasonably
      requested by such Borrower, such properly completed and executed documentation
      prescribed by applicable law as will permit such payments to be made without
      withholding or at a reduced rate, provided that such
      Lender is legally entitled to complete, execute and deliver such documentation
      and in such Lender’s judgment such completion, execution or submission would not
      materially prejudice the legal position of such Lender.

     

    (f)           If
      AIH III, the Irish Holdco Party or any Borrower is required to pay additional
      amounts to or for the account of any Lender pursuant to this Section 4.6, then
      such Lender will agree to use reasonable efforts to change the jurisdiction
      of
      its Applicable Lending Office so as to eliminate or reduce any such additional
      payment which may thereafter accrue if such change, in the sole judgment of
      such
      Lender, is not otherwise disadvantageous to such Lender.

     

    (g)           Within
      thirty (30) days after the date of any payment of Taxes, AIH III, the Irish
      Holdco Party or the applicable Borrower shall furnish to the Agent the original
      or a certified copy of a receipt evidencing such payment or otherwise evidence
      of such payment as is reasonably acceptable to the Agent.

     

    (h)           If
      the Agent or any Lender receives a refund of any Taxes or Other Taxes as to
      which it has been indemnified by AIH III, the Irish Holdco Party or a Borrower
      or with respect to which AIH III, the Irish Holdco Party or a Borrower has
      paid
      additional amounts pursuant to this Section 4.6, it shall
      pay over such refund to AIH III, the Irish Holdco Party or such Borrower (but
      only to the extent of indemnity payments made, or additional amounts paid,
      by
      AIH III, the Irish Holdco Party or a Borrower under this Section 4.6 with
      respect to the Taxes or Other Taxes giving rise to such refund), net of all
      out-of-pocket expenses (including any net increase in Taxes imposed on such
      Person by reason of such refund and the payment by such Person pursuant to
      this
      sentence) of the Agent or such Lender and without interest (other than any
      interest paid by the relevant Governmental Authority with respect to such
      refund); provided, that AIH
      III, the Irish Holdco Party or the Borrower, upon the request of the Agent
      or
      such Lender, agrees to repay the amount paid over to AIH III, the Irish Holdco
      Party or such Borrower (plus any penalties, interest or other charges imposed
      by
      the relevant Governmental Authority) to the Agent or such Lender in the event
      the Agent or such Lender is required to repay such refund to such Governmental
      Authority.  This paragraph shall not be construed to require the Agent
      or any Lender to make available its tax returns (or any other information
      relating to its taxes which it deems confidential) to AIH III, the Irish Holdco
      Party or any Borrower or any other Person.

     

    (i)           Without
      prejudice to the survival of any other agreement of AIH III, the Irish Holdco
      Party or any Borrower hereunder, the agreements and obligations of AIH III,
      

     

    
      
        
        

      

      
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    the
      Irish Holdco Party and each Borrower contained in this Section 4.6 shall
      survive the termination of the Revolving Credit Commitments and the payment
      in
      full of the Loans.

     

    ARTICLE
      V

     

    CONDITIONS
      TO MAKING
      LOANS

     

    5.1.         Conditions
      of
      Closing.  The
      effectiveness of this Agreement is subject to the prior or concurrent
      satisfaction or waiver of each of the conditions precedent set forth in this
      Section 5.1.  In addition, the effectiveness of Irish Holdco’s
      accession to this Agreement, whether on or after the Closing Date, is subject
      to
      the prior or concurrent satisfaction or waiver of each of the conditions
      precedent set forth in this Section 5.1 as is applicable to the Irish Holdco
      Party.  For the limited purpose of this Section 5.1, the phrases
“shall have received”, “shall have approved”, “shall have demonstrated”, “shall
      have delivered” and similar phrases contemplating that future performances were
      required shall be construed as being performed or waived as of the Closing
      Date:

     

    (a)         the
      Agent shall have received, as of the Closing Date, in form and substance
      satisfactory to the Agent and Lenders, the following:

     

    (i)           executed
      originals of each of this Agreement, the initial Facility Guaranties, the
      initial Security Agreements, the initial Pledge Agreements  and the
      other initial Loan Documents, together with all schedules and exhibits
      thereto;

     

    (ii)           the
      favorable written opinion or opinions with respect to the Loan Documents and
      the
      transactions contemplated thereby of special counsel to the Credit Parties
      dated
      the Closing Date (including opinions of New York and Bermuda counsel and upon
      Irish Holdco becoming the Irish Holdco Party, Irish counsel), addressed to
      the
      Agent (on behalf of itself and the Lenders), substantially in the form of Exhibit G-1 and Exhibit
      G-3 or
      otherwise reasonably satisfactory to special counsel to the Agent;

     

    (iii)           resolutions
      of the boards of directors or other appropriate governing body (or of the
      appropriate committee thereof) of each Credit Party (except in the case of
      a
      Credit Party that is a trust), certified by its secretary or assistant secretary
      as of the Closing Date, approving and adopting the Loan Documents to be executed
      by such Person, and authorizing the execution and delivery thereof;

     

    (iv)           specimen
      signatures of officers of each Credit Party executing the Loan Documents on
      behalf of such party, certified by the secretary or assistant secretary of
      such
      party;

     

    (v)           the
      Organizational Documents of each Credit Party and each of the trustees for
      each
      Holdings Subsidiary Trust certified as of a recent date by the Secretary of
      State or comparable official of its jurisdiction of organization 

     

    
      
        
        

      

      
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    (provided
      that the Trust Agreement of a Holdings Subsidiary Trust may be certified by
      the
      secretary or assistant secretary of its Beneficial
      Owner);

     

    (vi)           certificates
      issued as of a recent date by the Secretaries of State or comparable officials
      of the respective jurisdictions of formation of each of the Credit Parties
      (excluding Holdings Subsidiary Trusts) as to the due existence and good standing
      of such Person;

     

    (vii)           notice
      of appointment of the initial Authorized Representative(s);

     

    (viii)          Uniform
      Commercial Code financing statements appropriate for filing in all places
      required by applicable law to perfect the Liens of the Agent under the Security
      Instruments as a first priority Lien as to items of Collateral in which a
      security interest may be perfected by the filing of financing statements, and
      such other documents and/or evidence of other actions as may be necessary under
      applicable law to perfect the Liens of the Agent under the Security Instruments
      as a first priority Lien in and to such other Collateral as the Agent may
      require;

     

    (ix)           the
      delivery by the Borrowers of all stock certificates and other certificates,
      if
      any, evidencing ownership of any Pledged Interests, accompanied in each case
      by
      duly executed stock or transfer powers (or other appropriate transfer documents)
      in blank affixed thereto; and

     

    (x)           the
      delivery by AIH III, the Irish Holdco Party and the Borrowers of “control
      agreements” that have been executed by the respective issuers (and consented to
      by the respective Credit Parties) with respect to any uncertificated Pledged
      Interests; and

     

    (xi)           evidence
      that any fees payable by any Credit Party on the Closing Date to the Agent
      and
      the Lenders have been paid in full; and

     

    (b)           in
      the good faith judgment of the Agent and the Lenders:

     

    (i)           
      no litigation, action, suit, investigation or other arbitral, administrative
      or
      judicial proceeding shall be pending or threatened which could reasonably be
      likely to result in a Material Adverse Effect; and

     

    (ii)           the
      Credit Parties shall have received all approvals, consents and waivers, and
      shall have made or given all necessary filings and notices as shall be required
      to consummate the transactions contemplated hereby without the occurrence of
      any
      default under, conflict with or violation of (A) any applicable law, rule,
      regulation, order or decree of any Governmental Authority or arbitral authority
      or (B) any agreement, document or instrument to which any of the Credit Parties
      is a party or by which any of them or their properties is bound.

     

    
      
        
        

      

      
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    5.2.        Conditions
      of Revolving
      Loans.  The
      obligation of the Lenders to make Revolving Loans hereunder on or subsequent
      to
      the Closing Date (other than additional loans to a Borrower in connection with
      Approved Improvements, or a Qualified Conversion) is subject to the conditions
      precedent that:

     

    (a)           each
      of the conditions to making the Revolving Credit Facility available to the
      Borrowers, as set forth in Section 5.1, shall
      have been satisfied on or prior to the date of the initial Loan after the
      Closing Date;

     

    (b)           the
      representations and warranties of the Credit Parties set forth in Article VI and in
      each of the other Loan Documents shall be true and correct in all material
      respects on and as of the date of such Loan, with the same effect as though
      such
      representations and warranties had been made on and as of such date, except
      to
      the extent that such representations and warranties expressly relate to an
      earlier date;

     

    (c)           the
      Borrowing Affiliate with respect to such Loan shall have executed and delivered
      to the Agent an Assumption Letter, and each Borrower and the Agent shall have
      executed such Assumption Letter and the Borrowing Affiliate shall have delivered
      to the Agent all other agreements, instruments and documents required by such
      Assumption Letter;

     

    (d)           the
      Borrowing Affiliate with respect to such Loan shall have delivered to the Agent
      (i) Facility Guaranties (if any) fully executed by any Beneficial Owner of
      such
      Borrowing Affiliate, by each Subsidiary of any such Beneficial Owner (other
      than
      such Borrowing Affiliate), by each Subsidiary of such Borrowing Affiliate and
      by
      the Applicable Intermediary (if any); (ii) Pledge Agreements fully executed
      by
      the appropriate pledgors, granting a security interest in all Pledged Interests
      with respect to each such Beneficial Owner, such Borrowing Affiliate, each
      Subsidiary of any Beneficial Owner, each Subsidiary of such Borrowing Affiliate,
      and the Applicable Intermediary (if any); (iii) Security Agreements fully
      executed by such Borrowing Affiliate, any Beneficial Owner of such Borrowing
      Affiliate, each Subsidiary of any Beneficial Owner, each Subsidiary of such
      Borrowing Affiliate, and the Applicable Intermediary (if any); and (iv) Lockbox
      Agreements executed by each Borrower;

     

    (e)           the
      Agent shall have received the latest drafts of the following within 5 Business
      Days prior to the date of the Loan, an organized pre-closing of the required
      documentation shall have occurred at least one Business Day prior to the date
      of
      the Loan, and the Agent shall have received final versions of the following,
      in
      form and substance satisfactory to the Agent and the Lenders, on or prior to
      the
      date of the Loan:

     

    (i)           each
      of the documents and instruments (including without limitation the opinions
      of
      counsel, the resolutions of boards of directors or other appropriate governing
      bodies or committees, the specimen signatures, officer’s certificates,
      Organizational Documents and governmental certificates (if any) of existence,
      qualification, good standing and assumed name) required by Section 5.1 as if
      such Borrowing Affiliate had been a Borrowing Affiliate (and its Beneficial
      Owner, their respective Subsidiaries and the Applicable Intermediary (if any)
      had been in such positions) on the Closing Date;

     

    
      
        
        

      

      
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    (ii)           with
      respect to each Financed Eligible Asset registered in the United States, the
      favorable written opinion with respect to the Loan Documents and the
      transactions contemplated thereby of FAA Counsel dated the date of such Loan,
      addressed to the Agent (on behalf of itself and the Lenders), substantially
      in
      the form of Exhibit
      G-2 or otherwise reasonably satisfactory to special counsel to the
      Agent;

     

    (iii)          with
      respect to every other Financed Eligible Asset, the favorable written opinion
      with respect to the Loan Documents and the transactions contemplated thereby
      of
      local counsel in each Applicable Foreign Jurisdiction dated the date of such
      Loan, addressed to the Agent (on behalf of itself and the Lenders),
      substantially in the forms of Exhibit G-3 and Exhibit
      G-4 or
      otherwise reasonably satisfactory to special counsel to the Agent;

     

    (iv)          certificates
      of insurance from qualified brokers of aircraft insurance or other evidence
      satisfactory to the Agent, evidencing all insurance required by the Loan
      Documents (including without limitation all insurance required by Exhibit L with
      respect to each Eligible Asset that is to be a Financed Eligible
      Asset);

     

    (v)           a
      Borrowing Notice;

     

    (vi)           a
      certificate of an Authorized Representative substantially in the form of Exhibit
      R containing computations of the Borrowing Base and providing information about
      the Financed Eligible Asset, in each case after giving effect to such Loan
      and
      any related Financed Eligible Asset;

     

    (vii)          Uniform
      Commercial Code financing statements appropriate for filing in all places
      required by applicable law to perfect the Liens of the Agent under the Security
      Instruments as a first priority Lien as to items of Collateral in which a
      security interest may be perfected by the filing of financing statements, and
      such other documents and/or evidence of other actions as may be necessary under
      applicable law to perfect the Liens of the Agent under the Security Instruments
      as a first priority Lien in and to such other Collateral as the Agent may
      require, including without limitation:

     

    (1)           the
      delivery by the Borrowers of all stock certificates and other certificates,
      if
      any, evidencing ownership of any Pledged Interests, accompanied in each case
      by
      duly executed stock or transfer powers (or other appropriate transfer documents)
      in blank affixed thereto; and

     

    (2)           the
      delivery by the Borrowers of “control agreements” that have been executed by the
      respective issuers (and consented to by the respective Credit Parties) with
      respect to any uncertificated Pledged Interests;

     

    
      
        
        

      

      
        44

        
          

        

      

      
        
        

      

    

     

    (3)           with
      respect to each Financed Eligible Asset registered in the United States,
      evidence of the filing with the FAA Recording Office all documents required
      by
      the FAA in order to protect the Applicable Borrower’s right, title and interest
      in such Financed Eligible Asset;

     

    (4)           with
      respect to each Financed Eligible Asset not registered in the United States,
      evidence of the filing with each applicable recording office in each Applicable
      Foreign Jurisdiction of all documents required by such office or any Applicable
      Foreign Aviation Law in order to protect the Applicable Borrower’s right, title
      and interest in such Financed Eligible Asset in such Applicable Foreign
      Jurisdiction;

     

    (5)           a
      copy of the executed purchase agreement and executed bill of sale evidencing
      the
      purchase by the Applicable Borrower of each Financed Eligible
      Asset;

     

    (6)           copies
      of the certificates of aircraft registration issued by the FAA and certificates
      of airworthiness issued by the FAA, in each case with respect to each Aircraft
      registered in the United States; and

     

    (7)           evidence
      of registration and other applicable qualification issued by any Applicable
      Foreign Jurisdiction to the extent such registration or qualification is
      required by an Applicable Foreign Aviation Law, in each case with respect to
      each Eligible Asset not registered in the United States;

     

    (viii)          results
      of a search of Liens filed with the FAA or any Applicable Foreign Jurisdiction
      with respect to any Eligible Asset that is or is to be a Financed Eligible
      Asset;

     

    (ix)           for
      each Financed Eligible Asset that will be subject to an Eligible Lease on the
      date of the initial Loan, copies of each such Eligible Lease; and

     

    (x)           
      for each Financed Eligible Asset that will be subject to an Eligible Lease
      on
      the date of the initial Loan for such Financed Eligible Asset, a Lessee Notice
      and evidence (which may be in the form of a legal opinion) that the Agent shall
      have the right, under the laws of the Applicable Foreign Jurisdiction, to
      enforce directly the Eligible Lease against the Lessee, including without
      limitation, the obligation of the Lessee to make payments under the Eligible
      Lease to the applicable Account; and

     

    (xi)           the
      written report of the Appraiser setting forth the Maintenance Adjusted Current
      Market Value of the Financed Eligible Asset that is the subject of such initial
      Loan.

     

    
      
        
        

      

      
        45

        
          

        

      

      
        
        

      

    

     

    (f)           
      at the time of (and after giving effect to) the initial Loan, no Default or
      Event of Default specified in Article IX shall have
      occurred and be continuing;

     

    (g)           
      immediately after giving effect to the initial Loan;

     

    (i)           the
      aggregate principal balance of all outstanding Revolving Loans for each Lender
      shall not exceed such Lender’s Revolving Credit Commitment; and

     

    (ii)           the
      Revolving Credit Outstandings shall not exceed the lesser of (x) the amount
      obtained by multiplying the Aggregate Allowed Percentage times the Borrowing
      Base and (y) the Total Revolving Credit Commitment.

     

    5.3.           Conditions
      of Subsequent
      Advances Under Revolving Loans.

     

      The
      obligation of the Lenders to make an additional loan to a Borrower in connection
      with Approved Improvements or a Qualified Conversion is subject to the
      conditions precedent that:

     

    (a)         the
      representations and warranties of the Credit Parties set forth in Article VI and in
      each of the other Loan Documents shall be true and correct in all material
      respects on and as of the date of such Loan, with the same effect as though
      such
      representations and warranties had been made on and as of such date, except
      to
      the extent that such representations and warranties expressly relate to an
      earlier date;

     

    (b)         the
      Agent shall have received final versions of the following at least one Business
      Day prior to the date of the Loan:

     

    (i)            a
      Borrowing Notice; and

     

    (ii)           a
      certificate of an Authorized Representative substantially in the form of Exhibit
      R containing computations of the Borrowing Base and providing information about
      the Financed Eligible Asset, in each case after giving effect to such Loan
      and
      any related Financed Eligible Asset;

     

    (c)       
       at the time of (and after giving effect to) the initial Loan, no Default
      or Event of Default specified in Article IX shall have
      occurred and be continuing; and

     

    (d)         immediately
      after giving effect to the initial Loan;

     

      (i)           the
      aggregate principal balance of all outstanding Revolving Loans for each Lender
      shall not exceed such Lender’s Revolving Credit Commitment;

     

      (ii)          the
      Revolving Credit Outstandings shall not exceed the lesser of (x) the amount
      obtained by multiplying the Aggregate Allowed Percentage times the Borrowing
      Base and (y) the Total Revolving Credit Commitment.

     

    
      
        
        

      

      
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    ARTICLE
      VI

     

    REPRESENTATIONS
      AND
      WARRANTIES

     

    AIH
      III, the Irish Holdco upon becoming the Irish Holdco Party each other Guarantor,
      and each Borrower represents and warrants with respect to itself, its
      Subsidiaries (if any) and each other Credit Party (which representations and
      warranties shall survive the delivery of the documents mentioned herein and
      the
      making of Loans), that:

     

    6.1.         Organization
      and
      Authority.

     

    (a)           Each
      Borrower, each Subsidiary and each other Credit Party is a trust, corporation,
      partnership or limited liability company duly organized and validly existing
      under the laws of the jurisdiction of its formation;

     

    (b)           Each
      Borrower, each Subsidiary and each other Credit Party (x) has the requisite
      power and authority to own its properties and assets and to carry on its
      business as now being conducted and as contemplated in the Loan Documents,
      and
      (y) is qualified to do business in every jurisdiction in which failure so to
      qualify would have a Material Adverse Effect;

     

    (c)           Each
      Borrower has the power and authority to execute, deliver and perform this
      Agreement and to borrow hereunder, and to execute, deliver and perform each
      of
      the other Loan Documents to which it is a party;

     

    (d)           Each
      Credit Party (other than the Borrowers) has the power and authority to execute,
      deliver and perform each of the Loan Documents to which it is a party;
      and

     

    (e)           When
      executed and delivered, each of the Loan Documents to which any Credit Party
      is
      a party will be the legal, valid and binding obligation or agreement, as the
      case may be, of such Credit Party (as the case may be), enforceable against
      such
      Credit Party (as the case may be) in accordance with its terms, subject to
      the
      effect of any applicable bankruptcy, moratorium, insolvency, reorganization
      or
      other similar law affecting the enforceability of creditors’ rights generally
      and to the effect of general principles of equity (whether considered in a
      proceeding at law or in equity);

     

    6.2.           Loan
      Documents.  The
      execution, delivery and performance by each Credit Party of each of the Loan
      Documents to which it is a party:

     

    (a)           have
      been duly authorized by all requisite Organizational Action of such Credit
      Party
      (as the case may be) required for the lawful execution, delivery and performance
      thereof;

     

    (b)           do
      not violate any provisions of (i) applicable law, rule or regulation, (ii)
      any
      judgment, writ, order, determination, decree or arbitral award of any
      Governmental Authority or arbitral authority binding on such Credit Party or
      their respective properties, or (iii) the Organizational Documents of such
      Credit Party;

     

    
      
        
        

      

      
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    (c)           does
      not and will not be in conflict with, result in a breach of or constitute an
      event of default, or an event which, with notice or lapse of time or both,
      would
      constitute an event of default, under any contract, indenture, agreement or
      other instrument or document to which such Credit Party is a party, or by which
      the properties or assets of such Credit Party are bound; and

     

    (d)           does
      not and will not result in the creation or imposition of any Lien upon any
      of
      the properties or assets of such Credit Party or any Subsidiary except any
      Liens
      in favor of the Agent and the Lenders created by the Security
      Instruments;

     

    6.3.           Solvency. 
      At the time of each Loan to a Borrower, such Borrower and each Beneficial Owner
      of such Borrower and each Eligible Intermediary, if any, is Solvent after giving
      effect to the transactions contemplated by the Loan Documents;

     

    6.4.           Subsidiaries
      and
      Stockholders.  No
      Borrower or Guarantor (other than AIH III and the Irish Holdco Party) has any
      Subsidiaries, except that a Guarantor may have a beneficial interest in a
      Borrower, a Borrower may own an Eligible Intermediary and a Borrower may be
      a
      Subsidiary of a Guarantor;

     

    6.5.           Ownership
      Interests.

     

    (a)           No
      Borrower or Guarantor owns any interest in any Person, except that a Guarantor
      may have a beneficial interest in a Borrower, and a Borrower may own an Eligible
      Intermediary; and

     

    (b)           AIH
      III or the Irish Holdco Party owns, directly or indirectly, all of the Capital
      Stock of each Borrower, except for directors’ qualifying shares, if
      any.

     

    6.6.           Liens.  The
      Agent (for itself and on behalf of the Lenders) has a first priority perfected
      Lien (subject to Permitted Liens) on all Collateral under the Security
      Instruments;

     

    6.7.           Title
      to
      Properties.  Each
      Borrower and each of its Subsidiaries, each Guarantor and each other Credit
      Party has good and marketable title to all its real and personal properties,
      subject to no transfer restrictions or Liens of any kind except as provided
      in
      the Security Instruments and the Leases; and

     

    6.8.           Taxes. 
      Except
      as set forth in Schedule 6.8, each
      Borrower, each of its Subsidiaries, each Guarantor and each other Credit Party
      has filed or caused to be filed all federal, state, local and foreign Tax
      returns in each case that are required to be filed by it and that, the failure
      to file, would have a Material Adverse Effect (individually or in the aggregate)
      and, except for Taxes and assessments being contested in good faith by
      appropriate proceedings diligently conducted and against which reserves in
      accordance with GAAP reflected in the financial statements most recently
      delivered pursuant to Section 7.1(a) and
      satisfactory to the Borrowers’ independent certified public accountants have
      been established, have paid or caused to be paid all Taxes as shown on said
      returns or on any assessment received by it, to the extent that such Taxes
      have
      become due;

     

    
      
        
        

      

      
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    6.9.          Other
      Agreements

     

    .  No
      Guarantor, other Credit Party nor any Subsidiary of AIH III or of the Irish
      Holdco Party:

     

    (i)           is
      a party to or subject to any judgment, order, decree, agreement, lease or
      instrument, or subject to other restrictions, which individually or in the
      aggregate could reasonably be expected to have a Material Adverse
      Effect;

     

    (ii)           is
      in default in the performance, observance or fulfillment of any of the
      obligations, covenants or conditions contained in any agreement or instrument
      to
      which such Guarantor, other Credit Party or such Subsidiary is a party, which
      default has, or if not remedied within any applicable grace period could
      reasonably be likely to have, a Material Adverse Effect; or

     

    (iii)           shall
      have, prior to its execution of the Assumption Letter, conducted business other
      than related to the acquisition, leasing, maintenances, financing (solely under
      the Loan Documents), ownership and disposition of Eligible Assets or have
      incurred  any liabilities except to the extent related to such
      business, including, without limitation, under the Eligible Lease to which
      it is
      a party, an aircraft acquisition, sale, maintenance or overhaul agreement and
      the Loan Documents, none of which liabilities (except (a) the purchase price
      in
      respect of an Eligible Asset, (b) liabilities in respect of Approved
      Improvements and (c) those arising under the Loan Documents and the Eligible
      Leases) are material to the Borrowers taken as a whole.

     

    6.10.        Litigation.  Except
      as set forth in Schedule 6.10, there
      is no action, suit, investigation or proceeding at law or in equity or by or
      before any governmental instrumentality or agency or arbitral body pending,
      or,
      to the knowledge of any Borrower, threatened by or against any Guarantor, any
      Borrower or any Subsidiary of AIH III or of the Irish Holdco Party or any other
      Credit Party or affecting any such Person or any properties or rights of any
      such Person, which could reasonably be likely to have a Material Adverse
      Effect;

     

    6.11.        Federal
      Regulations.  No
      part of the proceeds of any Loans, and no other extensions of credit hereunder,
      will be used (a) for “buying” or “carrying” any “margin stock” within the
      respective meanings of each of the quoted terms under Regulation U as now and
      from time to time hereafter in effect for any purpose that violates the
      provisions of the Regulations of the Board or (b) for any purpose that violates
      the provisions of the Regulations of the Board.  If requested by any
      Lender or the Agent, the Borrowers will furnish to the Agent and each Lender
      a
      statement to the foregoing effect in conformity with the requirements of FR
      Form
      G-3 or FR Form U-1, as applicable, referred to in Regulation U;

     

    6.12.                      Investment
      Company.  No
      Credit Party is an “investment company,” or “promoter” or “principal
      underwriter” for, an “investment company”, as such terms are defined in the
      Investment Company Act of 1940, as amended (15 U.S.C. § 80a-1, et
      seq.).  The application of the proceeds of the Loans and repayment
      thereof by each Borrower and the performance by each Borrower and the other
      Credit Parties of the transactions contemplated by the Loan Documents will
      not
      violate any provision of said Act, or any rule, regulation or order issued
      by
      the Securities and Exchange Commission thereunder, in each case as in effect
      on
      the date hereof;

     

    
      
        
        

      

      
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    6.13.                      Patents,
      Etc.  Each
      Borrower, each Guarantor and each other Credit Party owns or has the right
      to
      use, under valid license agreements or otherwise, all material patents,
      licenses, franchises, trademarks, trademark rights, trade names, trade name
      rights, trade secrets and copyrights necessary to or used in the conduct of
      its
      businesses as now conducted and as contemplated by the Loan Documents, without
      known conflict with any patent, license, franchise, trademark, trade secret,
      trade name, copyright, other proprietary right of any other Person;

     

    6.14.                      No
      Untrue
      Statement.  Neither
      (a) this Agreement nor any other Loan Document or certificate or document
      executed and delivered by or on behalf of any Borrower or any other Credit
      Party
      in accordance with or pursuant to any Loan Document nor (b) any written
      statement, representation, or warranty provided to the Agent in connection
      with
      the negotiation or preparation of the Loan Documents contains any
      misrepresentation or untrue statement of material fact or omits to state a
      material fact necessary, in light of the circumstance under which it was made,
      in order to make any such warranty, representation or statement contained
      therein not misleading;

     

    6.15.                      No
      Consents,
      Etc.  Neither
      the respective businesses or properties of the Credit Parties or any Subsidiary,
      nor any relationship among the Credit Parties or any Subsidiary and any other
      Person, nor any circumstance in connection with the execution, delivery and
      performance of the Loan Documents and the transactions contemplated thereby,
      is
      such as to require a consent, approval or authorization of, or filing,
      registration or qualification with, any Governmental Authority or any other
      Person on the part of any Credit Party as a condition to the execution, delivery
      and performance of, or consummation of the transactions contemplated by the
      Loan
      Documents, which, if not obtained or effected, would be reasonably likely to
      have a Material Adverse Effect, or if so, such consent, approval, authorization,
      filing, registration or qualification has been duly obtained or effected, as the
      case may
      be;

     

    6.16.                      Employee
      Benefit
      Plans.

     

    (a)           Neither
      any Guarantor nor any Borrower or any of their respective Subsidiaries has
      or
      has ever sponsored any Single Employer Plan, been a participating employer
      in
      any Multiemployer Plan, or had any obligation to fund any such
      plan;

     

    (b)           Neither
      any Credit Party nor any ERISA Affiliate has incurred any “accumulated funding
      deficiency” with respect to any Single Employer Plan or failure to satisfy the
      minimum funding standards (within the meaning of Section 412 of the Code or
      Section 302 of ERISA) applicable to such Single Employer Plan, whether or not
      waived; during the six-year period prior to the date on which this
      representation is made or deemed made or any other liability to the PBGC which
      remains outstanding, in each case, in an amount that would be reasonably likely
      to have a Material Adverse Effect;

     

    (c)           No
      Termination Event has occurred during the six-year period prior to the date
      on
      which this representation is made or deemed made or is reasonably expected
      to
      occur 

     

    
      
        
        

      

      
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    with
      respect to any Single Employer Plan or Multiemployer Plan, neither any Credit
      Party nor any ERISA Affiliate has incurred any unpaid withdrawal liability
      with
      respect to any Multiemployer Plan that, in each case, could be reasonably
      expected to have a Material Adverse Effect; and

     

    (d)           The
      present value of all accrued benefits under each Single Employer Plan (based
      on
      those assumptions used to fund such Single Employer Plan) did not, as of the
      last annual valuation date prior to the date on which this representation is
      made or deemed made for each such plan, exceed the then current value of the
      assets of such Single Employer Plan allocable to such benefits by a material
      amount;

     

    6.17.        No
      Default.  As
      of the date hereof, there does not exist any Default or Event of Default
      hereunder;

     

    6.18.        Environmental
      Laws.   Except
      as listed on Schedule
      6.18, each Borrower, each Guarantor and each Subsidiary of AIH III or of
      the Irish Holdco Party is in compliance with all applicable Environmental Laws
      and has been issued and currently maintains all required federal, state and
      local permits, licenses, certificates and approvals.  Except as listed
      on Schedule
      6.18, neither any Borrower, any Guarantor nor any Subsidiary of AIH III
      or of the Irish Holdco Party has been notified of any pending or threatened
      action, suit, proceeding or investigation, and neither any Borrower, any
      Guarantor nor any Subsidiary of AIH III or of the Irish Holdco Party is aware
      of
      any facts, which (a) calls into question, or could reasonably be expected to
      call into question, compliance by any Borrower, any Guarantor or any Subsidiary
      of AIH III or of the Irish Holdco Party with any Environmental Laws, (b) seeks,
      or could reasonably be expected to form the basis of a meritorious proceeding,
      to suspend, revoke or terminate any license, permit or approval necessary for
      the operation of any Borrower’s, any Guarantor’s or any of AIH III’s or of the
      Irish Holdco Party’s Subsidiary’s business or facilities or for the generation,
      handling, storage, treatment or disposal of any Hazardous Materials, or (c)
      seeks to cause, or could reasonably be expected to form the basis of a
      meritorious proceeding to cause, any property of any Borrower, any Guarantor
      or
      any Subsidiary of AIH III or of the Irish Holdco Party or other Credit Party
      to
      be subject to any restrictions on ownership, use, occupancy or transferability
      under any Environmental Law;

     

    6.19.       Employment
      Matters.  No
      Borrower, Guarantor or Credit Party has or has ever had any employee other
      than
      officers thereof; and

     

    6.20.      
      Taxes.  The
      Irish Holdco Party is eligible for the benefits of the Income Tax Treaty between
      the United States of America and Ireland.  No Borrower, to its
      knowledge, as of the date of this Agreement, is required to withhold or deduct
      any Taxes imposed by any non-U.S. Governmental Authority, in an amount or to
      an
      extent that would be reasonably expected to have a Material Adverse
      Effect.

     

    
      
        
        

      

      
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    ARTICLE
      VII

     

    AFFIRMATIVE
      COVENANTS

     

    Unless
      the Required Lenders shall otherwise consent in writing, AIH III, the Irish
      Holdco upon becoming the Irish Holdco Party and each Borrower will, and where
      applicable will cause each Guarantor and each Subsidiary (if any)
      to:

     

    7.1.           Financial
      Reports,
      Etc.

     

    (a)           As
      soon as practical and in any event within 90 days after the end of each Fiscal
      Year, deliver or cause to be delivered to the Agent and each Lender audited
      consolidated balance sheets of Parent and its Subsidiaries as at the end of
      such
      Fiscal Year, and the notes thereto (if any), and the relating audited
      consolidated statements of income, changes in stockholders’ (or members’) equity
      and cash flows, and the respective notes thereto (if any), for such Fiscal
      Year,
      setting forth comparative financial statements for the preceding year (if
      applicable), reported on by Ernst & Young LLP or other independent certified
      public accountants of nationally recognized standing all prepared in accordance
      with GAAP and accompanied by a certificate of an Authorized Representative,
      which certificate shall be in the form of Exhibit
      H;

     

    (b)           as
      soon as practical and in any event within 60 days after the end of each fiscal
      quarter (except the last fiscal quarter of the Fiscal Year), deliver to the
      Agent and each Lender consolidated income statements of Parent and its
      Subsidiaries prepared in accordance with GAAP and accompanied by a certificate
      of an Authorized Representative to the effect that such financial statements
      present fairly, in all material respects, the financial position of Parent
      and
      its Subsidiaries and of each of the Borrowers and their respective Subsidiaries
      as of the end of such fiscal period and the results of their operations for
      such
      fiscal period;

     

    (c)           as
      soon as practical and in any event within 10 days after the end of each calendar
      month with respect to a draft (for the Agent) and within 30 days after the
      end
      of each calendar month with respect to a final report (for the Agent and each
      Lender), deliver or cause to be delivered as set forth above a report in form
      and substance reasonably satisfactory to the Agent, stating that each Borrower
      is in compliance with the covenants and terms hereof and that no Default or
      Event of Default has occurred and is continuing, in each case as of the end
      of
      such month (the “Monthly Covenant Compliance Report”);

     

    (d)           promptly
      upon their becoming available to AIH III, the Irish Holdco Party or any
      Borrower, such Person shall deliver to the Agent and each Lender a copy of
      (i)
      all regular or special reports or effective registration statements which AIH
      III, the Irish Holdco Party, any Borrower, any Guarantor or any Subsidiary
      shall
      file with the Securities and Exchange Commission (or any successor thereto)
      or
      any securities exchange, (ii) any proxy statement distributed by AIH III, the
      Irish Holdco Party, any Borrower, any Guarantor or any Subsidiary to its
      shareholders, bondholders or the financial community in general, and (iii)
      any
      management letter or other report submitted to any Borrower, any Guarantor
      or
      any Subsidiary by independent accountants in connection with any annual, interim
      or special audit of any Borrower or any Subsidiary; and

     

    
      
        
        

      

      
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    (e)           promptly,
      from time to time, deliver or cause to be delivered to the Agent and each Lender
      such other information regarding AIH III’s, the Irish Holdco Party’s, any
      Borrower’s, any Guarantor’s and any Subsidiary’s operations, business affairs
      and financial condition as the Agent or such Lender may reasonably
      request.

     

    Subject
      to Section
      11.16, the Agent and the Lenders are hereby authorized to deliver a copy
      of any such financial or other information delivered hereunder to the Lenders
      (or any affiliate of any Lender) or to the Agent, to any Governmental Authority
      having jurisdiction over the Agent or any of the Lenders pursuant to any written
      request therefor or in the ordinary course of examination of loan files, or
      to
      any other Person who shall acquire or consider the assignment of, or acquisition
      of any participation interest in, any Obligation permitted by this
      Agreement;

     

    7.2.           Maintain
      Properties.  If
      a Financed Eligible Asset is not subject to an Eligible Lease, maintain and
      make
      repairs to such Financed Eligible Asset in compliance with the requirements
      set
      forth in Section
      3.4 of the Security Agreement; and each Borrower, Guarantor and
      Subsidiary shall maintain all other properties necessary to its operations
      in
      good working order and condition, make all needed repairs, replacements and
      renewals to such other properties, and maintain free from Liens all trademarks,
      trade names, patents, copyrights, trade secrets, know-how, and other
      intellectual property and proprietary information (or adequate licenses
      thereto), in each case as are reasonably necessary to conduct its business
      as
      currently conducted or as contemplated hereby, all in accordance with customary
      and prudent business practices;

     

    7.3.           Existence,
      Qualification,
      Etc.  Except
      as otherwise expressly permitted under Section 8.7, do or
      cause to be done all things necessary to preserve and keep in full force and
      effect its existence and all material rights and franchises, and maintain its
      license or qualification to do business as a foreign corporation and good
      standing in each jurisdiction in which its ownership or lease of property or
      the
      nature of its business makes such license or qualification
      necessary;

     

    7.4.           Regulations
      and
      Taxes.  Comply
      in all material respects with or contest in good faith all statutes and
      governmental regulations and timely pay all Taxes, assessments, governmental
      charges, claims for labor, supplies, rent and any other obligation which, if
      unpaid, would become a Lien other than a Permitted Lien against any of its
      properties;

     

    7.5.           Insurance.  Maintain
      or cause to be maintained with respect to each Financed Eligible Asset and
      all
      other Collateral the insurance described on Exhibit L and
      cause the
      Agent for itself and on behalf of the Lenders to be named additional insureds
      (in the case of any liability insurance) and loss payee or contract party (in
      the case of any hull insurance) on such insurance and on any and all other
      insurance maintained by any Credit Party with respect to such Financed Aircraft
      or provided by or on behalf of a lessee or other Person pursuant to the terms
      of
      any Lease;

     

    7.6.           True
      Books.  Keep
      true books of record and account in which full, true and correct entries will
      be
      made of all of its dealings and transactions, and set up on its books such
      reserves as may be required by GAAP with respect to doubtful accounts and all
      taxes, assessments,
      charges, levies and claims and with respect to its business in general, and
      include such reserves in interim as well as year-end financial
      statements;

     

    
      
        
        

      

      
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    7.7.           Right
      of
      Inspection.  Permit
      any Person designated by any Lender or the Agent to visit and inspect any
      Financed Eligible Asset, or any other property, corporate book or financial
      report of any Borrower or any Subsidiary and to discuss its affairs, finances
      and accounts with its principal officers and independent certified public
      accountants; and cause each Eligible Carrier to permit any Person designated
      by
      any Lender or any Agent to inspect any Financed Eligible Asset, all at
      reasonable times, at reasonable intervals and with reasonable prior notice,
      subject to any restriction on inspection contained in an Eligible Lease with
      respect to such Financed Eligible Asset, provided that
      notwithstanding any such Lease, (a) any Person designated by a Lender or the
      Agent may inspect such Financed Eligible Asset at any reasonable time upon
      an
      event of default under such Lease, and (b) upon any Event of Default, the
      Applicable Borrower will use its best efforts to cause the Applicable Carrier
      (and any other Person) to permit any Person designated by a Lender or the Agent
      to inspect such Financed Eligible Asset at any time;

     

    7.8.           Observe
      all
      Laws.  Conform
      to and duly observe in all material respects all laws, rules and regulations
      and
      all other valid requirements of any Governmental Authority with respect to
      the
      conduct of its business;

     

    7.9.           Governmental
      Licenses.  Obtain
      and maintain all licenses, permits, certifications and approvals of all
      applicable Governmental Authorities as are required for the conduct of its
      business as currently conducted and as contemplated by the Loan
      Documents;

     

    7.10.         Covenants
      Extending to Other
      Persons.  Cause
      each Guarantor and each of their respective Subsidiaries (if any) to do with
      respect to itself, its business and its assets, each of the things required
      of
      any Borrower in Sections 7.2 through
      7.9, and 7.18
      inclusive;

     

    7.11.        
      Officer’s Knowledge of
      Default.  Upon
      any officer of any Guarantor or any Borrower obtaining knowledge of any Default
      or Event of Default hereunder or under any other obligation of any Borrower
      or
      any Subsidiary or other Credit Party to any Lender, or any event, development
      or
      occurrence which could reasonably be expected to have a Material Adverse Effect,
      cause such officer or an Authorized Representative to promptly notify the Agent
      of the nature thereof, the period of existence thereof, and what action such
      Borrower or such Subsidiary or other Credit Party proposes to take with respect
      thereto;

     

    7.12.        
      Suits or Other
      Proceedings.  Upon
      any officer of any Guarantor or any Borrower obtaining knowledge of any action,
      suit, litigation, investigation, or other proceeding being instituted or
      threatened against any Borrower or any Subsidiary or other Credit Party, in
      any
      court or before any Governmental Authority, or any attachment, levy, execution
      or other process being instituted against any assets of any Borrower or any
      Subsidiary or other Credit Party, making a claim or claims in an aggregate
      amount greater than $250,000, exclusive of punitive damages,  not
      otherwise covered by insurance or that would otherwise be reasonably expected
      to
      have a Material Adverse Effect, promptly deliver to the Agent written notice
      thereof stating the nature and status of such action, suit, litigation,
      investigation, dispute, proceeding, levy, execution or other
      process;

     

    
      
        
        

      

      
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    7.13.         Notice
      of Environmental
      Complaint or Condition.  Promptly
      provide to the Agent true, accurate and complete copies of any and all notices,
      complaints, orders, directives, claims or citations received by any Borrower,
      any Guarantor or any Subsidiary relating to any (a) violation or alleged
      violation by any Borrower, any Guarantor or any Subsidiary of any applicable
      Environmental Law; (b) release or threatened release by any Borrower, any
      Guarantor or any Subsidiary, or by any Person handling, transporting or
      disposing of any Hazardous Material on behalf of any Borrower, any Guarantor
      or
      any Subsidiary, or at any facility or property owned or leased or operated
      by
      any Borrower, any Guarantor or any Subsidiary, of any Hazardous Material, except
      where occurring legally pursuant to a permit or license; or (c) liability or
      alleged liability of any Borrower, any Guarantor or any Subsidiary for the
      costs
      of cleaning up, removing, remediating or responding to a release of Hazardous
      Materials;

     

    7.14.         Environmental
      Compliance.  If
      any Borrower, any Guarantor or any Subsidiary shall receive any letter, notice,
      complaint, order, directive, claim or citation alleging that any Borrower,
      any
      Guarantor or any Subsidiary has violated any Environmental Law, has released
      any
      Hazardous Material, or is liable for the costs of cleaning up, removing,
      remediating or responding to a release of Hazardous Materials, any Borrower,
      any
      Guarantor and any Subsidiary shall, within the time period permitted and to
      the
      extent required by the applicable Environmental Law or the Governmental
      Authority responsible for enforcing such Environmental Law, remove or remedy,
      or
      cause the applicable Subsidiary to remove or remedy, such violation or release
      or satisfy such liability;

     

    7.15.         Indemnification.
      Without limiting the generality of Section 11.9, AIH III, the Irish Holdco
      Party
      and each Borrower hereby agrees jointly and severally to indemnify and hold
      the
      Agent and the Lenders, and their respective officers, directors, employees
      and
      agents, harmless from and against any and all claims, losses, penalties,
      liabilities, damages and expenses (including assessment and cleanup costs and
      reasonable attorneys’, consultants’ or other expert fees, expenses and
      disbursements) arising directly or indirectly from, out of or by reason of
      (a)
      the violation of any Environmental Law by any Borrower or any Subsidiary or
      with
      respect to any property owned, operated or leased by any Borrower or any
      Subsidiary or (b) the handling, storage, transportation, treatment, emission,
      release, discharge or disposal of any Hazardous Materials by or on behalf of
      any
      Borrower or any Subsidiary, or on or with respect to property owned or leased
      or
      operated by any Borrower or any Subsidiary.  The provisions of this
Section 7.15
      shall survive repayment of the Obligations and expiration or termination of
      this
      Agreement;

     

    7.16.         Further
      Assurances.  At
      the Borrowers’ cost and expense, upon request of the Agent, duly execute and
      deliver or cause to be duly executed and delivered, to the Agent such further
      instruments, documents (including any additional Facility Guaranties in
      connection with new Guarantors), certificates, financing and continuation
      statements, and do and cause to be done such further acts that may be reasonably
      necessary or advisable in the reasonable opinion of the Agent to carry out
      more
      effectively the provisions and purposes of this Agreement, the Security
      Instruments and the other Loan Documents;

     

    7.17.         Hedging
      Agreements.  Subject
      to Section 8.4,
      each Borrower or any Guarantor may, in its sole discretion, maintain Hedging
      Agreements with a Lender or a Lender Affiliate in an aggregate notional amount
      for the Borrowers and Guarantors not greater than the Total Revolving Credit
      Commitment;

     

    
      
        
        

      

      
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    7.18.        Continued
      Operations.  Subject
      to Section
      8.15, continue at all times to conduct its business and engage
      principally in the same line or lines of business substantially as heretofore
      conducted;

     

    7.19.        Maintenance
      of Eligible
      Assets; Other Covenants and Restrictions; Non-Discrimination.

     

    (a)           Ensure
      that any Lease with respect to any Financed Eligible Asset contains covenants
      and restrictions regarding the maintenance, alteration, replacement, pooling,
      sublease and (in the case of a Lease) return of such Eligible Asset by the
      Applicable Carrier, which covenants and restrictions satisfy the requirements
      of
Schedule
      7.19(a) hereto;

     

    (b)           Promptly
      and diligently take or cause to be taken all steps which a prudent international
      aircraft lessor or financier would reasonably take in light of all of the
      relevant circumstances to compel the relevant Eligible Carrier to comply with
      the terms of any Lease, or, if applicable and the Applicable Borrower is
      entitled to do so, to repossess the applicable Financed Eligible Asset (and,
      if
      a prudent international aircraft lessor or financier would determine it
      necessary or desirable, to de-register and export the same to a safe location)
      if any failure to comply with such Lease is not promptly remedied;

     

    7.20.        Re-registration
      of
Eligible
      Assets.  Ensure
      that any Lease with respect to any Eligible Asset contain covenants and
      restrictions regarding re-registration of such Eligible Asset, which covenants
      and restrictions satisfy the requirements of the Security
      Agreement;

     

    7.21.        Employee
      Benefit
      Plans.  Without
      limiting the generality of Section 8.9, with
      reasonable promptness, and in any event within thirty (30) days after any
      Borrower knows or has reason to know thereof, give notice to the Agent of (a)
      the establishment of any Single Employer Plan by the Borrower or any Subsidiary
      (which notice shall include a copy of such plan), (b) the failure of any Credit
      Party or any ERISA Affiliate to make a required installment or payment under
      Section 302 of ERISA or Section 412 of the Code by the due date; (c) the
      occurrence of a Termination Event, and/or (d) the institution of proceedings
      or
      the taking of any other action by the PBGC or any Credit Party or any ERISA
      Affiliate or any Multiemployer Plan with respect to the withdrawal from, or
      the
      termination, Reorganization or insolvency of, any Multiemployer Plan, or
      determination that any Multiemployer Plan is in endangered or critical status
      (within the meaning of Section 432 of the Code or Section 305 or Title IV of
      ERISA;

     

    7.22.        Accounts.  AIH
      III, the Irish Holdco Party, the Guarantors and the Borrowers shall establish
      the Accounts as provided in the Lockbox Agreement and shall deposit all proceeds
      (including without limitation rent) from any Lease of any Financed Eligible
      Asset to the Accounts designated under the Lockbox Agreement;

     

    7.23.        Eligible
      Lease; Lessee
      Notice.  Deliver
      to the Agent promptly upon execution, any Lease entered into by any Borrower,
      together with a Lessee Notice in connection with such Lease, the opinion
      referred to in Section
      5.2(e)(iii) and the evidence referred to in Section 5.2(e)(x);
      and

     

    
      
        
        

      

      
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    ARTICLE
      VIII

     

    NEGATIVE
      COVENANTS

     

    Unless
      the Required Lenders shall otherwise consent in writing, AIH III, the Irish
      Holdco upon becoming the Irish Holdco Party and each Borrower will not, and
      will
      cause each Guarantor and each Subsidiary thereof (if any) not to:

     

    8.1.          Acquisitions.  Enter
      into any agreement, contract, binding commitment or other arrangement providing
      for any Acquisition, or take any action to solicit the tender of securities
      or
      proxies in respect thereof in order to effect any Acquisition, except for the
      Acquisition of a Subsidiary as permitted by Section
      8.6;

     

    8.2.          Capital
      Expenditures.  Make
      or become committed to make any Capital Expenditures, except for Capital
      Expenditures to maintain or purchase Eligible Assets or in connection with
      Approved Improvements and Qualified Conversions;

     

    8.3.          Liens.  Incur,
      create or permit to exist any Lien, charge or other encumbrance of any nature
      whatsoever with respect to (a) any property or assets now owned or hereafter
      acquired by any Borrower, any Guarantor or any Subsidiary or (b) any Financed
      Eligible Asset, except the following (the “Permitted Liens”):

     

    (i)           Liens
      created under the Security Instruments in favor of the Agent and the Lenders;
      and Liens arising under the Eligible Leases in favor of the Applicable
      Intermediary (as lessor) or the Applicable Borrower which Liens in each case
      have been assigned to the Agent;

     

    (ii)           Liens
      set forth in Schedule
      6.7;

     

    (iii)          Liens
      imposed by law for Taxes (A) not yet due or (B) which are being contested in
      good faith by appropriate proceedings diligently conducted, each of which Liens
      in clause (B) above shall be fully bonded over, to the reasonable satisfaction
      of the Agent;

     

    (iv)          statutory
      Liens of landlords and Liens of mechanics, materialmen and other Liens imposed
      by law or created in the ordinary course of business and (i) in existence less
      than 90 days from the date of creation thereof for amounts not yet due or (ii)
      which are being contested in good faith by appropriate proceedings diligently
      conducted, which are inferior in respect of the Collateral to the Liens
      conferred under the Security Instruments or have been fully bonded over to
      the
      reasonable satisfaction of the Agent, and with respect to which adequate
      reserves or other appropriate provisions are being maintained in accordance
      with
      GAAP;

     

    
      
        
        

      

      
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    (v)           Liens
      arising out of any judgment or award with respect to which an appeal or
      proceeding for review is being prosecuted in good faith by appropriate
      proceedings diligently conducted, and with respect to which a stay of execution
      is in effect;

     

    (vi)          Liens
      created by the Applicable Carrier under an Eligible Lease that are not subject
      to clause (vii) below, which Liens are created without the knowledge of the
      Applicable Borrower and are released or fully bonded over to the reasonable
      satisfaction of the Agent within 30 days after the Applicable Borrower has
      notice or knowledge of any such Lien;

     

    (vii)         with
      respect to any Lease and the related Eligible Asset, (i) any “Permitted Liens”
(as defined in or the equivalent term in such Lease Agreement and as agreed
      to
      by the Agent) (except a Permitted Lien that is a Lessor Lien (as defined in
      or
      the equivalent term in such Lease Agreement)), and (ii) any other Lien created
      by a Lessee, a sublessee of a Lessee or any Person claiming by or through a
      Lessee or sublessee, in each case in this clause (ii) as agreed to by the Agent;
      provided, that
      with respect to Liens of the type listed in clause (ii), such Lien is being
      contested in good faith by appropriate proceedings or, upon the Applicable
      Borrower receiving notice or knowledge of such Lien, such Applicable Borrower
      is
      diligently and promptly enforcing the lessor’s rights against the
      Lessee;

     

    (viii)        any
      head lease in respect of any Eligible Asset;

     

    (ix)          any
      Lien from air navigation authority, airport tending, gate or handling (or
      similar) charges or levies (A) not yet overdue or (B) which are being contested
      in good faith by appropriate proceedings, each of which Liens in clause (B)
      above shall be fully bonded over, to the reasonable satisfaction of the
      Agent;

     

    (x)          Liens
      securing Indebtedness described in Section
      8.4(b);

     

    (xi)          Liens
      securing Indebtedness described in Section
      8.4(f);

     

    (xii)         Liens
      granted by a Borrower, Guarantor or any Subsidiary thereof in favor of a Lender
      or an Affiliate of a Lender in an aggregate amount not to exceed the lesser
      of
      (A) $10,000,000 and (B) 5% of the Borrowing Base, in each case in connection
      with Indebtedness permitted under Section
      8.4(c).

     

    8.4.          Indebtedness.  Incur,
      create, assume or permit to exist any Indebtedness of AIH III, any Guarantor
      or
      any Subsidiary thereof, howsoever evidenced, except:

     

    (a)           Indebtedness
      owing to (including guaranties in favor of) the Agent or any Lender in
      connection with this Agreement or other Loan Document;

     

    (b)           the
      endorsement of negotiable instruments for deposit or collection or similar
      transactions in the ordinary course of business;

     

    
      
        
        

      

      
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    (c)           Indebtedness
      arising from Hedging Agreements permitted under Section 7.17; provided
      that the
      aggregate notional amount of Hedging Agreements shall not exceed the Total
      Revolving Credit Commitment;

     

    (d)           unsecured
      intercompany Indebtedness for loans and advances made by AIH III, the Irish
      Holdco Party or any Beneficial Owner to a Borrower or a Guarantor, provided that such
      intercompany Indebtedness is evidenced by a promissory note or similar written
      instrument acceptable to the Agent which provides that such Indebtedness is
      subordinated to obligations, liabilities and undertakings of the holder or
      owner
      thereof under the Loan Documents on terms acceptable to the Agent;

     

    (e)           Contingent
      Obligations of AIH III, the Irish Holdco Party or any other Credit Party in
      support of the obligations of any Credit Party.

     

    (f)           
      Contingent Obligations of any Credit Party in support of any Subsidiary in
      connection with the purchase of an Eligible Asset or with an Eligible Lease
      pursuant to which such Subsidiary is the lessor; and

     

    (g)           Indebtedness
      existing on the date hereof and listed on Schedule 8.4
      hereof.

     

    8.5.           Transfer
      of
      Assets.  Sell,
      lease, transfer or otherwise dispose of any assets other than (a) leases by
      Borrowers and Applicable Intermediaries of Eligible Assets under Eligible
      Leases, (b) sales by Borrowers and Applicable Intermediaries of Eligible Assets
      or all of the beneficial interest or ownership of a Beneficial Owner or a
      Borrower, provided that (i)
      the
      purchaser of such Eligible Asset or beneficial interest from a Borrower or
      Applicable Intermediary shall have acknowledged receipt of the Applicable
      Borrower’s irrevocable instruction to pay the sales price for such Eligible
      Asset or beneficial interest directly to the Collection Account identified
      in
      the Lockbox Agreement to which the Applicable Borrower is a party, (ii) the
      net
      proceeds of such sales are promptly applied in accordance with Section 2.3(b), and
      (iii) at the time of any such sale the requirements of Section 2.12 for
      release of the respective Borrower or Guarantor have been satisfied, or (c)
      Engine swaps, interchange or pooling arrangements to the extent permitted under
      any Eligible Lease;

     

    8.6.           Subsidiaries;
      Investments.  Own,
      create or permit to exist any Subsidiary of AIH III, the Irish Holdco Party
      any
      Borrower or any Guarantor (except that a Guarantor may own beneficial interests
      in, or (subject to Section 8.4(d)) make
      advances to, a Borrower or another Guarantor and any Credit Party may own an
      Applicable Intermediary), or otherwise purchase, own, invest in or otherwise
      acquire, directly or indirectly, any stock or other securities, or make or
      permit to exist any interest whatsoever in any other Person or permit to exist
      any loans or advances to any Person, other than (i) loans referred to in Section 8.4(d), and
      (ii) loans to the Parent or any of its Subsidiaries from funds made available
      to
      such Borrower from distributions made under Section 5.1 of the
      applicable Lockbox Agreement;

     

    8.7.           Merger
      or
      Consolidation.  (a)
      Consolidate with or merge into any other Person, or (b) permit any other Person
      to merge into it, or (c) liquidate, wind-up or dissolve or sell, transfer or
      lease or otherwise dispose of all or a substantial part of its assets without
      the consent of the Agent, except as permitted by Section 8.5 and
      except in the case of a Borrower or Guarantor that simultaneously terminates
      its
      status as a Borrower or Guarantor hereunder in accordance with Section
      2.12;

     

    
      
        
        

      

      
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    8.8.           Transactions
      with
      Affiliates.  Other
      than transactions permitted under Section 8.7, enter
      into any transaction after the Closing Date, including, without limitation,
      the
      purchase, sale, lease or exchange of property, real or personal, or the
      rendering of any service, with any Affiliate of such Person, except (a) that
      such Persons may render services to a Borrower, a Guarantor, the Parent or
      their
      Subsidiaries for compensation at the same rates generally paid by Persons
      engaged in the same or similar businesses for the same or similar services,
      (b)
      that a Borrower, a Guarantor the Parent or any Subsidiary thereof may render
      services to such Persons for compensation at the same rates generally charged
      by
      such Borrower, such Guarantor or such Subsidiary, (c) in either case (a) and
      (b)
      in the ordinary course of business and pursuant to the reasonable requirements
      of a such Person’s business consistent with past practice of such Person and
      upon fair and reasonable terms no less favorable to such Person than would
      be
      obtained in a comparable arm’s-length transaction with a Person not an
      Affiliate,  (d) that any Borrower may make loans to the Parent or any
      of its Subsidiaries from funds made available to such Borrower from
      distributions made under Section 5.1 of the applicable Lockbox Agreement, and
      (e) that the Parent or any of its Subsidiaries may render services to the Credit
      Parties under comparable terms provided to its other Affiliates;

     

    8.9.           Employee
      Benefit Plans;
      Employees.  Sponsor
      any Employee Benefit Plan, become a participating employer in any Multiemployer
      Plan or agree to have any obligation to contribute to or fund any such plan,
      or
      hire or retain any employee other than officers thereof;

     

    8.10.         Fiscal
      Year.  Change
      its Fiscal Year, or have any fiscal year other than the Fiscal
      Year;

     

    8.11.         Dissolution,
      etc.  Wind
      up, liquidate or dissolve (voluntarily or involuntarily) or commence or suffer
      any proceedings seeking any such winding up, liquidation or dissolution, except
      in connection with a transaction permitted pursuant to Section
      8.7;

     

    8.12.         Change
      in
      Control.  Cause,
      suffer or permit to exist or occur any Change of Control;

     

    8.13.         Negative
      Pledge
      Clauses.  AIH
      III, the Irish Holdco Party, each Borrower and each Eligible Intermediary shall
      not enter into or cause, suffer or permit to exist any agreement with any Person
      other than the Agent and the Lenders pursuant to this Agreement or any other
      Loan Documents which prohibits or limits the ability of such Credit Party to
      create, incur, assume or suffer to exist any Lien upon any of its property,
      assets or revenues, whether now owned or hereafter acquired; provided that any
      Eligible Lease may contain such a prohibition or limitation so long as the
      prohibition or limitation does not apply to any Lien granted in favor of the
      Agent or any Lender pursuant to the Loan Documents;

     

    8.14.         Partnerships.  Become
      a general partner in any general or limited partnership;

     

    
      
        
        

      

      
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    8.15.        Business
      and
      Operations.  Engage
      in any (i) business or operations other than the ownership, financing, leasing
      and sale of Eligible Aircraft and Eligible Engines or the ownership of a
      Borrower, a Guarantor or Eligible Intermediary engaged in such business or
      operations, or matters reasonably incidental thereto, or the performance of
      the
      Loan Documents, provided, however,
      that, except
      as otherwise provided in Section 2.1(a), no
      Borrower that owns or is the Applicable Borrower with respect to any Aircraft
      or
      Engine may own or be the Applicable Borrower with respect to any other Aircraft
      or Engine and (ii) business in Bermuda or Ireland other than the performance
      of
      its obligations under the Loan Documents;  and

     

    8.16.    
         Ownership, Operation
      and
      Leasing of Financed Eligible Assets.

     

    (a)           Permit
      any Person other than a Borrower (or a Beneficial Owner solely by virtue of
      its
      beneficial interest in the respective Borrower) to own beneficially or of record
      any Financed Eligible Asset;

     

    (b)           Permit
      any Financed Eligible Asset to be leased, subleased or chartered to any Person
      other than the Applicable Carrier or the Applicable Intermediary, or to be
      operated by any Person other than the Applicable Borrower or the Applicable
      Carrier, except as permitted in the Security Agreement or any
      Lease;

     

    (c)           Permit
      any Financed Eligible Asset to be leased to an Eligible Carrier except under
      the
      terms of an Eligible Lease;

     

    (d)           Permit
      any Financed Eligible Asset to be flown into or located in any country (or
      part
      thereof) if as a result thereof such Financed Eligible Asset would not be
      covered by insurance;

     

    8.17.        Bank
      Accounts.  Permit
      any Borrower or other Credit Party to open or allow to exist any bank accounts
      for which the aggregate average daily balance, together with any bank accounts
      of the other Credit Parties, will be in excess of $500,000 unless the Agent
      is
      granted a Security Interest in such account by subjecting such account to a
      Lockbox Agreement or an Account Control Agreement.

     

    8.18.        Representations
      Regarding
      Agent and Lenders.  Represent
      or hold out, or permit any Credit Party or Applicable Carrier to represent
      or
      hold out, the Agent or any Lender as (a) the owner of any Financed Eligible
      Asset, (b) carrying goods or passengers on any Financed Aircraft, or (c) being
      in any way responsible for any operation of carriage (whether for hire or reward
      or gratuitously) which may be undertaken by any Borrower, Guarantor, Subsidiary
      or Applicable Carrier; or

     

    8.19.        AIH
      III, the Irish Holdco
      Party.  In
      the case of AIH III and the Irish Holdco Party, conduct, transact or otherwise
      engage in any business or operations other than those incidental to its voting,
      equity, beneficial or any other ownership interests of each Borrower and the
      performance of the Loan Documents; or

     

    
      
        
        

      

      
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    8.20.        Organizational
      Documents.  Amend
      its Organizational Documents without the consent of the Lenders and the
      Collateral Agent (as defined in the Security Agreement for such Credit Party);
      or

     

    8.21.        Borrowing
      Base
      Covenant.  Permit
      the aggregate principal amount of Loans outstanding hereunder to exceed the
      Aggregate Allowed Percentage of the Borrowing Base (the “Borrowing Base
      Covenant”).

     

    ARTICLE
      IX

     

    EVENTS
      OF DEFAULT AND
      ACCELERATION

     

    9.1.           Events
      of
      Default.  If
      any one or more of the following events (herein called “Events of Default”)
      shall occur for any reason whatsoever (and whether such occurrence shall be
      voluntary or involuntary or come about or be effected by operation of law or
      pursuant to or in compliance with any judgment, decree or order of any court
      or
      any order, rule or regulation of any Governmental Authority), that is to
      say:

     

    (a)           if
      default shall be made in the due and punctual payment of the principal of any
      Loan or other Obligation, when and as the same shall be due and payable whether
      pursuant to any provision of Article II, at
      maturity, by acceleration or otherwise; or

     

    (b)           if
      default shall be made in the due and punctual payment of any amount of interest
      on any Loan or other Obligation or of any fees or other amounts payable to
      any
      of the Lenders or the Agent within three (3) Business Days after the date on
      which the same shall be due and payable; or

     

    (c)           if
      default shall be made in the performance or observance of any covenant set
      forth
      in Sections
      7.5, 7.11,
7.12,
7.23
      or Article VIII
      hereunder or set forth in Section 9(h);
      or

     

    (d)           if
      a default shall be made in the performance or observance of, or shall occur
      under, any covenant, agreement or provision contained in this Agreement (other
      than as described in clauses (a), (b) or (c) above), or if a default shall
      be
      made in the performance or observance of, or shall occur under, any covenant,
      agreement or provision contained in any of the other Loan Documents (beyond
      any
      applicable grace period, if any, contained therein) or in any instrument or
      document evidencing or creating any obligation, guaranty, or Lien in favor
      of
      the Agent (acting in any capacity) or any of the Lenders or delivered to the
      Agent (acting in any capacity) or any of the Lenders in connection with or
      pursuant to this Agreement or any of the Obligations, and such default shall
      continue for 30 or more days after the earlier of receipt of notice of such
      default to an Authorized Representative from the Agent (acting in any capacity)
      or an officer of any Borrower becomes aware of such default, or if any Loan
      Document ceases to be in full force and effect (other than by reason of any
      action by the Agent (acting in any capacity)), or if without the written consent
      of the Lenders, this Agreement or any other Loan Document shall be disaffirmed
      or shall terminate, be terminable or be terminated or become void or
      unenforceable for any reason whatsoever (other than in accordance with its
      terms
      in the absence of default or by reason of any action by the Lenders or the
      Agent
      (acting in any capacity)); or

     

    
      
        
        

      

      
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    (e)           if
      there shall occur (i) a default, which is not waived, in the payment of any
      principal, interest, premium or other amount with respect to any Indebtedness
      or
      Rate Hedging Obligation (other than the Loans and other Obligations) of AIH
      III,
      the Irish Holdco Party, any Borrower or any of its Subsidiaries, or (ii) a
      default, which is not waived, in the performance, observance or fulfillment
      of
      any term or covenant contained in any agreement or instrument under or pursuant
      to which any such Indebtedness or Rate Hedging Obligation may have been issued,
      created, assumed, guaranteed or secured by AIH III, the Irish Holdco Party,
      any
      Borrower or any of its Subsidiaries, or (iii) any other event of default as
      specified in any agreement or instrument under or pursuant to which any such
      Indebtedness or Rate Hedging Obligation may have been issued, created, assumed,
      guaranteed or secured by AIH III, the Irish Holdco Party, any Borrower or any
      of
      its Subsidiaries, and such default or event of default under clause (i), (ii)
      or
      (iii) above shall continue for more than the period of grace, if any, therein
      specified, or such default or event of default under clause (i), (ii) or (iii)
      above shall permit the holder of any such Indebtedness (or any agent or trustee
      acting on behalf of one or more holders) to accelerate the maturity thereof;
      or

     

    (f)           if
      there shall occur an “Event of Default”, which is not waived under either the
      Parent Revolving Credit Agreement or the Existing Warehouse Credit Agreement;
      or

     

    (g)           if
      any representation, warranty or other statement of fact contained in any Loan
      Document or in any writing, certificate, report or statement at any time
      furnished to the Agent (acting in any capacity) or any Lender by or on behalf
      of
      any Borrower or any other Credit Party pursuant to or in connection with any
      Loan Document, or otherwise, shall be false or misleading in any material
      respect when given; or

     

    (h)           if
      any of the Parent Credit Parties, the Warehouse Credit Parties, AIH III, the
      Irish Holdco Party, the Borrowers, the Subsidiaries and the other Credit Parties
      shall be unable to pay its debts generally as they become due; or any of the
      Parent Credit Parties, the Existing Warehouse Credit Parties, AIH III, the
      Irish
      Holdco Party, the Borrowers, the Subsidiaries and the other Credit Parties
      shall
      file a petition to take advantage of any insolvency statute; make an assignment
      for the benefit of its creditors; commence a proceeding for the appointment
      of a
      receiver, trustee, examiner, liquidator or conservator of itself or of the
      whole
      or any substantial part of its property; file a petition or answer seeking
      liquidation, reorganization, examination or arrangement or similar relief under
      the federal bankruptcy laws or any other applicable law or statute;
      or

     

    (i)           if
      a court of competent jurisdiction shall enter an order, judgment or decree
      appointing a custodian, receiver, trustee, examiner, liquidator or conservator
      of any of the Parent Credit Parties, the Existing Warehouse Credit Parties,
      AIH
      III, the Irish Holdco Party, the Borrowers, the Subsidiaries and the other
      Credit Parties or of the whole or any substantial part of any such Person’s
      properties and such order, judgment or decree continues unstayed and in effect
      for a period of sixty (60) days, or approve a 

     

    
      
        
        

      

      
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    petition
      filed against any of the Parent Credit Parties, the Existing Warehouse Credit
      Parties, AIH III, the Irish Holdco Party, the Borrowers, the Subsidiaries and
      the other Credit Parties seeking liquidation, reorganization, examination or
      arrangement or similar relief under the federal bankruptcy laws or any other
      applicable law or statute of the United States of America or any state, which
      petition is not dismissed within sixty (60) days; or if, under the provisions
      of
      any other law for the relief or aid of debtors, a court of competent
      jurisdiction shall assume custody or control of the Parent Credit Parties,
      the
      Existing Warehouse Credit Parties, AIH III, the Irish Holdco Party, the
      Borrowers, the Subsidiaries and the other Credit Parties or of the whole or
      any
      substantial part of any such Person’s properties, which control is not
      relinquished within sixty (60) days; or if there is commenced against the any
      of
      the Parent Credit Parties, the Existing Warehouse Credit Parties, AIH III,
      the
      Irish Holdco Party, the Borrowers, the Subsidiaries and the other Credit Parties
      any proceeding or petition seeking reorganization, arrangement or similar relief
      under the federal bankruptcy laws or any other applicable law or statute of
      the
      United States of America or any state which proceeding or petition remains
      undismissed for a period of sixty (60) days; or if the any of the Parent Credit
      Parties, the Existing Warehouse Credit Parties, AIH III, the Irish Holdco Party,
      the Borrowers, the Subsidiaries and the other Credit Parties takes any action
      to
      indicate its consent to or approval of any such proceeding or petition;
      or

     

    (j)           if
      any Borrower or any of its Subsidiaries shall, other than in the ordinary course
      of business, suspend all or any part of its operations material to the conduct
      of its business of the Parent and its Subsidiaries taken as a whole for a period
      of more than 60 day; or

     

    (k)           if
      this Agreement or any other Loan Document shall for any reason not be, or be
      asserted by any Borrower or any other Credit Party or Subsidiary not to be,
      a
      legal, valid and binding obligation of any Borrower or any Credit Party (as
      the
      case may be) enforceable in accordance with its terms; or

     

    (l)           if
      any Lien of the Agent pursuant to any Loan Document shall for any reason not
      be,
      or be asserted by any Borrower or any other Credit Party or Subsidiary not
      to be
      a valid, first priority perfected Lien on the Collateral identified therein
      (except to the extent that such Lien is not required hereunder or under the
      Security Agreement to be a valid, first priority perfected Lien on such
      Collateral), subject to no other Liens except Permitted Liens; or

     

    (m)           (i)
      any Person shall engage in any “prohibited transaction” (as defined in Section
      406 of ERISA or Section 4975 of the Code) involving any Employee Benefit Plan,
      (ii) any “accumulated funding deficiency” (as defined in Section 302 of ERISA),
      or failure to satisfy the minimum funding standards (within the meaning of
      Section 412 of the Code or Section 302 of ERISA) applicable to such Plan,
      whether or not waived, shall exist with respect to any Single Employer Plan
      or
      any Lien in favor of the PBGC or a Single Employer Plan shall arise on the
      assets of any Borrower or any ERISA Affiliate, (iii) a Termination Event shall
      have occurred; (iv) a Reportable 

     

    
      
        
        

      

      
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    Event
      shall occur with respect to, or proceedings shall commence to have a trustee
      appointed, or a trustee shall be appointed, to administer or to terminate,
      any
      Single Employer Plan, which Reportable Event or commencement of proceedings
      or
      appointment of a trustee is likely to result in the termination of such Single
      Employer Plan for purposes of Title IV of ERISA, (v) any Single Employer Plan
      shall terminate for purposes of Title IV of ERISA, (vi) any Credit Party or
      any
      ERISA Affiliate shall, or in the reasonable opinion of the Required Lenders
      is
      likely to, incur any liability in connection with a withdrawal from, or the
      Insolvency or Reorganization of, a Multiemployer Plan; (vii) any other event
      or
      condition shall occur or exist with respect to a Employee Benefit Plan; and
      in
      each case in clauses (i) through (vii) above, such event or condition, together
      with all other such events or conditions, if any, could reasonably be expected
      to have a Material Adverse Effect;

     

    then,
      and in any such event and at any time thereafter, if such Event of Default
      or
      any other Event of Default shall continue to exist and not have been cured
      or
      waived,

     

    (A)           either
      or both of the following actions may be taken:  (i) the Agent, with
      the consent of the Required Lenders, may, and at the direction of the Required
      Lenders shall, declare any obligation of the Lenders to make further Loans
      terminated, whereupon the obligation of each Lender to make further Loans
      hereunder shall terminate immediately, and (ii) the Agent shall at the direction
      of the Required Lenders, at their option, declare by notice to the Borrowers
      any
      or all of the Obligations to be immediately due and payable, and the same,
      including all interest accrued thereon and all other obligations of any Borrower
      to the Agent and the Lenders, shall forthwith become immediately due and payable
      without presentment, demand, protest, notice or other formality of any kind,
      all
      of which are hereby expressly waived, anything contained herein or in any
      instrument evidencing the Obligations to the contrary notwithstanding; provided, however,
      that notwithstanding the above, if there shall occur an Event of Default under
      clause (g) or (h) above, then the obligation of the Lenders to make Loans
      hereunder shall automatically terminate and any and all of the Obligations
      shall
      be immediately due and payable without the necessity of any action by the Agent
      or the Required Lenders or notice to the Agent or the Lenders;

     

    (B)           each
      Borrower shall, upon demand of the Agent or the Required Lenders, promptly
      cause
      to be performed at Borrowers’ expense by independent certified public
      accountants acceptable to the Agent an audit of all Financed Eligible Asset;
      and

     

    (C)           the
      Agent and each of the Lenders shall have all of the rights and remedies
      available under the Loan Documents or under any applicable law, including
      without limitation all of the rights and remedies of a secured party under
      any
      applicable Uniform Commercial Code, the FAA Act, the Convention or any other
      applicable law.

     

    9.2.           Agent
      to
      Act.  In
      case any one or more Events of Default shall occur and not have been waived,
      the
      Agent may, and at the direction of the Required Lenders shall, proceed to
      protect and enforce their rights or remedies either by suit in equity or by
      action at law, or both, whether for the specific performance of any covenant,
      agreement or other provision contained herein or in any other Loan Document,
      or
      to enforce the payment of the Obligations or any other legal or equitable right
      or remedy.

     

    
      
        
        

      

      
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    9.3.           Cumulative
      Rights.  No
      right or remedy herein conferred upon the Lenders or the Agent is intended
      to be
      exclusive of any other rights or remedies contained herein or in any other
      Loan
      Document, and every such right or remedy shall be cumulative and shall be in
      addition to every other such right or remedy contained herein and therein or
      now
      or hereafter existing at law or in equity or by statute, or
      otherwise.

     

    9.4.           No
      Waiver.  No
      course of dealing between any Borrower and any Lender or the Agent or any
      failure or delay on the part of any Lender or the Agent in exercising any rights
      or remedies under any Loan Document or otherwise available to it shall operate
      as a waiver of any rights or remedies and no single or partial exercise of
      any
      rights or remedies shall operate as a waiver or preclude the exercise of any
      other rights or remedies hereunder or of the same right or remedy on a future
      occasion.

     

    9.5.           Allocation
      of
      Proceeds.  If
      an Event of Default has occurred and not been waived, and the maturity of the
      Loans has been accelerated pursuant to Article IX hereof, all payments received
      by the Agent hereunder, in respect of any principal of or interest on the
      Obligations or any other amounts payable by any Borrower hereunder, shall be
      applied by the Agent in the following order (or in such manner as the Required
      Lenders may determine):

     

    (a)           amounts
      due to the Lenders pursuant to Sections 2.9 and
      11.5;

     

    (b)           amounts
      due to the Agent pursuant to Section
      10.8;

     

    (c)           payments
      of interest on Loans, to be applied for the ratable benefit of the Lenders
      and
      amounts due to any of the Lenders in respect of Obligations consisting of
      liabilities under any Hedging Agreement with any of the Lenders on a pro rata
      basis according to the amounts owed;

     

    (d)           payments
      of principal of Loans, to be applied for the ratable benefit of the
      Lenders;

     

    (e)           amounts
      due to the Lenders pursuant to Sections 7.15 and
11.9;

     

    (f)           payments
      of all other amounts due under any of the Loan Documents, if any, to be applied
      for the ratable benefit of the Lenders; and

     

    (g)           any
      surplus remaining after application as provided for herein, to any Borrower
      or
      otherwise as may be required by applicable law.

     

    9.6.           Activities
      of Eligible
      Carriers.  Notwithstanding
      anything contained in this Agreement or any other Loan Document, the Credit
      Parties shall not be deemed to be in breach of their respective obligations
      hereunder or thereunder with respect to the care, maintenance, alteration,
      possession, return, replacement, pooling, subleasing, use or operation of any
      Financed Eligible Asset or any part thereof subject to an Eligible Lease by
      virtue of a default by the Applicable Carrier under such Eligible Lease so
      long
      as each of the following conditions is satisfied:

     

    
      
        
        

      

      
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    (a)           such
      default by the Applicable Carrier is not within the control of any Credit
      Party;

     

    (b)           the
      Credit Parties are in compliance with Section 7.19;
      and

     

    (c)           such
      default does not relate to any use or location of an Eligible Asset in any
      jurisdiction that constitutes an Event of Default hereunder, any failure to
      make
      any payment required by this Agreement or any other Loan Document when due
      hereunder or thereunder, or any failure to maintain any insurance required
      under
      this Agreement or any other Loan Document, any failure to maintain perfection
      of
      the Agent’s Lien on any Collateral.

     

    ARTICLE
      X

     

    THE
      AGENT

     

    10.1.         Appointment,
      Powers, and
      Immunities.  Each
      Lender hereby irrevocably appoints and authorizes the Agent to act as its agent
      under this Agreement and the other Loan Documents, as “Mortgagee” under each
      Security Agreement and as “Security Agent” under each Lockbox Agreement
      (references in this Article X to the term “Agent” being deemed to include as
      well such other capacities), with such powers and discretion as are specifically
      delegated to the Agent by the terms of this Agreement and the other Loan
      Documents, together with such other powers as are reasonably incidental
      thereto.  The Agent (which term as used in this sentence and in
      Section 10.5 and the first sentence of Section 10.6 hereof shall include its
      affiliates and its own and its affiliates’ officers, directors, employees, and
      agents):

     

    (a)           shall
      not have any duties or responsibilities except those expressly set forth in
      the
      Loan Documents and shall not be a trustee or fiduciary for any
      Lender;

     

    (b)           shall
      not be responsible to the Lenders for any recital, statement, representation,
      or
      warranty (whether written or oral) made in or in connection with any Loan
      Document or any certificate or other document referred to or provided for in,
      or
      received by any of them under, any Loan Document, or for the value, validity,
      effectiveness, genuineness, enforceability, or sufficiency of any Loan Document,
      or any other document referred to or provided for therein or for any failure
      by
      any Credit Party or any other Person to perform any of its obligations
      thereunder;

     

    (c)           shall
      not be responsible for or have any duty to ascertain, inquire into, or verify
      the performance or observance of any covenants or agreements by any Credit
      Party
      or the satisfaction of any condition or to inspect the property (including
      the
      books and records) of any Credit Party or any of its Subsidiaries or
      affiliates;

     

    (d)           shall
      not be required to initiate or conduct any litigation or collection proceedings
      under any Loan Document; and

     

    
      
        
        

      

      
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    (e)           shall
      not be responsible for any action taken or omitted to be taken by it under
      or in
      connection with any Loan Document, except for its own gross negligence or
      willful misconduct.

     

    The
      Agent may employ agents and attorneys-in-fact and shall not be responsible
      for
      the negligence or misconduct of any such agents or attorneys-in-fact selected
      by
      it with reasonable care.

     

    10.2.        Reliance
      by
      Agent.  The
      Agent shall be entitled to rely upon any certification, notice, instrument,
      writing, or other communication (including, without limitation, any thereof
      by
      telephone or facsimile) believed by it to be genuine and correct and to have
      been signed, sent or made by or on behalf of the proper Person or Persons,
      and
      upon advice and statements of legal counsel (including counsel for any Credit
      Party), independent accountants, and other experts selected by the
      Agent.  As to any matters not expressly provided for by the Loan
      Documents, the Agent shall not be required to exercise any discretion or take
      any action, but shall be required to act or to refrain from acting (and shall
      be
      fully protected in so acting or refraining from acting) upon the instructions
      of
      the Required Lenders, and such instructions shall be binding on all of the
      Lenders; provided, however, that the Agent shall not be required to take any
      action that exposes the Agent to personal liability or that is contrary to
      any
      Loan Document or applicable law or unless it shall first be indemnified to
      its
      satisfaction by the Lenders against any and all liability and expense which
      may
      be incurred by it by reason of taking any such action.

     

    10.3.        Defaults.  The
      Agent shall not be deemed to have knowledge or notice of the occurrence of
      a
      Default or Event of Default unless the Agent has received written notice from
      a
      Lender or a Borrower specifying such Default or Event of Default and stating
      that such notice is a “Notice of Default”.  In the event that the
      Agent receives such a notice of the occurrence of a Default or Event of Default,
      the Agent shall give prompt notice thereof to the Lenders.  The Agent
      shall (subject to Section 10.2 hereof) take such action with respect to such
      Default or Event of Default as shall reasonably be directed by the Required
      Lenders, provided that, unless and until the Agent shall have received such
      directions, the Agent may (but shall not be obligated to) take such action,
      or
      refrain from taking such action, with respect to such Default or Event of
      Default as it shall deem advisable in the best interest of the
      Lenders.

     

    10.4.        Rights
      as
      Lender.  With
      respect to its Revolving Credit Commitment and the Loans made by it, JPMCB
      (and
      any successor acting as Agent) in its capacity as a Lender hereunder shall
      have
      the same rights and powers hereunder as any other Lender and may exercise the
      same as though it were not acting as the Agent, and the term “Lender” or
“Lenders” shall, unless the context otherwise indicates, include the Agent in
      its individual capacity.  The Agent and its affiliates may (without
      having to account therefor to any Lender) accept deposits from, lend money
      to,
      make investments in, provide services to, and generally engage in any kind
      of
      lending, trust, or other business with any Credit Party or any of its
      Subsidiaries or affiliates as if it were not acting as Agent, and JPMCB (and
      any
      successor acting as Agent) and its affiliates may accept fees and other
      consideration from any Credit Party or any of its Subsidiaries or affiliates
      for
      services in connection with this Agreement or otherwise without having to
      account for the same to the Lenders.

     

    
      
        
        

      

      
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    10.5.        Indemnification.  The
      Lenders agree to indemnify the Agent (to the extent not reimbursed under Section
      11.9 hereof, but without limiting the obligations of any Borrower under such
      Section) ratably in accordance with their respective Revolving Credit
      Commitments, for any and all liabilities, obligations, losses, damages,
      penalties, actions, judgments, suits, costs, expenses (including reasonable
      attorneys’ fees), or disbursements of any kind and nature whatsoever that may be
      imposed on, incurred by or asserted against the Agent (including by any Lender)
      in any way relating to or arising out of any Loan Document or the transactions
      contemplated thereby or any action taken or omitted by the Agent under any
      Loan
      Document; provided that no Lender shall be liable for any of the foregoing
      to
      the extent they arise from the gross negligence or willful misconduct of the
      Person to be indemnified.  Without limitation of the foregoing, each
      Lender agrees to reimburse the Agent promptly upon demand for its ratable share
      of any costs or expenses payable by any Borrower under Section 11.5, to the
      extent that the Agent is not promptly reimbursed for such costs and expenses
      by
      any Borrower.  The agreements contained in this Section 10.5 shall
      survive payment in full of the Loans and all other amounts payable under this
      Agreement.

     

    10.6.        Non-Reliance
      on Agent and
      Other Lenders.  Each
      Lender agrees that it has, independently and without reliance on the Agent
      or
      any other Lender, and based on such documents and information as it has deemed
      appropriate, made its own credit analysis of the Credit Parties and their
      Subsidiaries and decision to enter into this Agreement and that it will,
      independently and without reliance upon the Agent or any other Lender, and
      based
      on such documents and information as it shall deem appropriate at the time,
      continue to make its own analysis and decisions in taking or not taking action
      under the Loan Documents.  Except for notices, reports, and other
      documents and information expressly required to be furnished to the Lenders
      by
      the Agent hereunder, the Agent shall not have any duty or responsibility to
      provide any Lender with any credit or other information concerning the affairs,
      financial condition, or business of any Credit Party or any of its Subsidiaries
      or affiliates that may come into the possession of the Agent or any of its
      affiliates.

     

    10.7.        Resignation
      of
      Agent.  The
      Agent may resign at any time by giving notice thereof to the Lenders and the
      Borrowers.  Upon any such resignation, the Required Lenders shall have
      the right to appoint a successor Agent, subject (so long as no Default or Event
      of Default has occurred and is continuing) to the written consent of an
      Authorized Representative, which consent shall not be unreasonably
      withheld.  If no successor Agent shall have been so appointed by the
      Required Lenders and shall have accepted such appointment within thirty (30)
      days after the retiring Agent’s giving of notice of resignation, then the
      retiring Agent may, on behalf of the Lenders, appoint a successor Agent which
      shall be a commercial bank organized under the laws of the United States of
      America having combined capital and surplus of at least
      $500,000,000.  Upon the acceptance of any appointment as Agent
      hereunder by a successor, such successor shall thereupon succeed to and become
      vested with all the rights, powers, discretion, privileges, and duties of the
      retiring Agent, and the retiring Agent shall be discharged from its duties
      and
      obligations hereunder.  After any retiring Agent’s resignation
      hereunder as Agent, the provisions of this Article X shall continue in effect
      for its benefit in respect of any actions taken or omitted to be taken by it
      while it was acting as Agent.

     

    
      
        
        

      

      
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    10.8.        Fees.  The
      Borrowers agree, jointly and severally, to pay to the Agent, for its individual
      account, an Agent’s fee as from time to time agreed to by any Borrower and the
      Agent in writing.

     

    ARTICLE
      XI

     

    MISCELLANEOUS

     

    11.1.        Assignments
      and
      Participations.  i)  Each
      Lender may assign to one or more Eligible Assignees all or a portion of its
      rights and obligations under this Agreement (including, without limitation,
      all
      or a portion of its Loans and its Revolving Credit Commitment); provided,
      however, that

     

    (i)           each
      such assignment shall be to an Eligible Assignee;

     

    (ii)           except
      in the case of an assignment to another Lender or an assignment of all of a
      Lender’s rights and obligations under this Agreement, any such partial
      assignment shall be in an amount at least equal to $5,000,000 or an integral
      multiple of $1,000,000 in excess thereof;

     

    (iii)           each
      such assignment by a Lender shall be of a constant, and not varying, percentage
      of all of its rights and obligations under this Agreement; and

     

    (iv)           the
      parties to such assignment shall execute and deliver to the Agent for its
      acceptance an Assignment and Acceptance in the form of Exhibit B hereto,
      together with a processing fee of $3,500 (which amount shall not be payable
      by
      any Borrower);

     

    (v)           except
      in the case of an assignment to another Lender, any assignment of all or any
      portion of the Revolving Credit Commitment shall require the consent of the
      Agent and, unless a Default or Event of Default has occurred and is continuing,
      an Authorized Representative, such consent in each case not to be unreasonably
      withheld; and

     

    (vi)           neither
      any Borrower nor AIH III nor the Irish Holdco Party shall incur any greater
      expense or liabilities (including, without limitation, indemnities and increased
      costs (other than with respect to taxes, which shall be governed by the
      provisions of Section
      4.6 hereof)) than it would have incurred had such assignment not taken
      place.

     

    Upon
      execution, delivery, and acceptance of such Assignment and Acceptance, the
      assignee thereunder shall be a party hereto and, to the extent of such
      assignment, have the obligations, rights, and benefits of a Lender hereunder
      and
      the assigning Lender shall, to the extent of such assignment, relinquish its
      rights and be released from its obligations under this Agreement. If the
      assignee is a Non-U.S. Lender, it shall deliver to the Borrowers and the Agent
      certification as to exemption from deduction or withholding of Taxes in
      accordance with Section
      4.6.

     

    (b)           The
      Agent shall maintain at its address referred to in Section 11.2 a copy
      of each Assignment and Acceptance delivered to and accepted by it and a register
      for the 

     

    
      
        
        

      

      
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    recordation
      of the names and addresses of the Lenders and the Revolving Credit Commitment
      of, and principal amount of the Loans owing to, each Lender from time to time
      (the “Register”).  The entries in the Register shall be conclusive and
      binding for all purposes, absent manifest error, and the Borrowers, the Agent
      and the Lenders may treat each Person whose name is recorded in the Register
      as
      a Lender hereunder for all purposes of this Agreement.  The Register
      shall be available for inspection by any Borrower or any Lender at any
      reasonable time and from time to time upon reasonable prior notice.

     

    (c)           Upon
      its receipt of an Assignment and Acceptance executed by the parties thereto,
      together with payment of the processing fee, the Agent shall, if such Assignment
      and Acceptance has been completed and is in substantially the form of Exhibit B hereto,
      (i)
      accept such Assignment and Acceptance, (ii) record the information contained
      therein in the Register and (iii) give prompt notice thereof to the parties
      thereto.

     

    (d)           Each
      Lender may sell participations to one or more Persons in all or a portion of
      its
      rights, obligations or rights and obligations under this Agreement (including
      all or a portion of its Revolving Credit Commitment or its Loans); provided, however,
      that (i)
      such Lender s obligations under this Agreement shall remain unchanged, (ii)
      such
      Lender shall remain solely responsible to the other parties hereto for the
      performance of such obligations, (iii) the participant shall be entitled to
      the
      benefit of the yield protection provisions contained in Article IV and the
      right of set-off contained in Section 11.3, (iv)
      neither any Borrower nor AIH III nor the Irish Holdco Party shall have any
      greater obligation to a participant than it would have had to such Lender in
      the
      absence of the existence of such participant and (v) each Borrower shall
      continue to deal solely and directly with such Lender in connection with such
      Lender’s rights and obligations under this Agreement, and such Lender shall
      retain the sole right to enforce the obligations of any Borrower relating to
      its
      Loans and to approve any amendment, modification, or waiver of any provision
      of
      this Agreement (other than amendments, modifications, or waivers decreasing
      the
      amount of principal of or the rate at which interest or fees are payable on
      such
      Loans, extending any scheduled principal payment date or date fixed for the
      payment of interest on such Loans, releasing all or substantially all of the
      Collateral (except for a release of Collateral in accordance with Section 2.12),
      releasing any Guarantor (except for a release of a Guarantor in accordance
      with
Section 2.12),
      or extending or increasing its Revolving Credit Commitment).

     

    (e)           Notwithstanding
      any other provision set forth in this Agreement, any Lender may at any time
      assign and pledge all or any portion of its Loans to any Federal Reserve Bank
      as
      collateral security pursuant to Regulation A and any Operating Circular issued
      by such Federal Reserve Bank.  No such assignment shall release the
      assigning Lender from its obligations hereunder.

     

    (f)           
      Any Lender may furnish any information concerning any Borrower or any of its
      Subsidiaries in the possession of such Lender from time to time to assignees
      and
      participants (including prospective assignees and participants), subject,
      however, to the provisions of Section
      11.16.

     

    11.2.        Notices.  All
      notices, requests and demands to or upon the respective parties hereto to be
      effective shall be in writing (including by facsimile), and, unless otherwise
      

     

    
      
        
        

      

      
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    expressly
      provided herein, shall be deemed to have been duly given or made when delivered,
      or three Business Days after being deposited in the mail, postage prepaid by
      certified or registered mail, return receipt requested, or, in the case of
      telecopy notice, when received, addressed as follows in the case of AIH III,
      the
      Irish Holdco Party, the Borrowers and the Agent, and as set forth in an
      administrative questionnaire delivered to the Agent in the case of the Lenders,
      or to such other address as may be hereafter notified by the respective parties
      hereto

     

    (a)           if
      to AIH III or any Borrower (or, in connection with notice of service of process
      with respect to any Credit Party):

    

    to
      Holdings or such Borrower (or such Credit Party, as applicable)

    c/o
      Aircastle Advisor LLC

    300
      First Stamford Place – Fifth Floor

    Stamford,
      CT  06902

    Attention:  Lease
      Management

    E-Mail:  leasemanagement@aircastleinv.com

    Facsimile:  (917)
      591-9106

    Telephone:  (203)
      504-1020

    

    (b)           if
      to the Irish Holdco Party or any Borrower organized under the laws
      ofIreland:

     

    c/o
      Aircastle Advisor (Ireland) Limited

    8
      FitzWilliam Place,

    Dublin
      2, Ireland

    

    Telephone:  011-353-1-665-0800

    Facsimile:  011-353-1-665-0801

    

    

    with
      a copy to:

    Aircastle
      Advisor LLC

    300
      First Stamford Place – Fifth Floor

    Stamford,
      CT  06902

    Attention:  Lease
      Management

    E-Mail:  leasemanagement@aircastleinv.com

    Facsimile:  (917)
      591-9106

    Telephone:  (203)
      504-1020

    

    

    (c)           if
      to the Agent:

     

    JPMorgan
      Chase Bank, N.A.

    1111
      Fannin Street, 10th
      Floor

    Houston,
      TX  77002

    Attention:  Alice
      Telles

     

    
      
        
        

      

      
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    Telephone:  (713)
      750-7941

    Facsimile:  (713)
      750-2938

    Electronic
      Mail:  Alice.h.telles@jpmchase.com

    

    with
      a copy to:

    

    JPMorgan
      Chase Bank, N.A

    270
      Park Avenue, 15th
      Floor

    New
      York, New York 10017

    Attention:  Vilma
      Francis

    Telephone:  (212)
      270-5484

    Facsimile:  (212)
      270-4016

    Electronic
      Mail:  Vilma.francis@jpmorgan.com

    

    (d)           if
      to any other Credit Party, at the address set forth on the signature page of
      the
      Facility Guaranty or Security Instrument executed by such Credit Party, as
      the
      case may be.

     

    11.3.        Right
      of Set-off;
      Adjustments.

     

    (a)           Upon
      the occurrence and during the continuance of any Event of Default, each Lender
      (and each of its affiliates) is hereby authorized at any time and from time
      to
      time, to the fullest extent permitted by law, to set off and apply any and
      all
      deposits (general or special, time or demand, provisional or final) at any
      time
      held and other indebtedness at any time owing by such Lender (or any of its
      affiliates) to or for the credit or the account of any Borrower against any
      and
      all of the obligations of any Borrower now or hereafter existing under this
      Agreement, irrespective of whether such Lender shall have made any demand under
      this Agreement and although such obligations may be unmatured.  Each
      Lender agrees promptly to notify the applicable Borrower after any such set-off
      and application made by such Lender; provided, however,
      that the
      failure to give such notice shall not affect the validity of such set-off and
      application.  The rights of each Lender under this Section 11.3 are in
      addition to other rights and remedies (including, without limitation, other
      rights of set-off) that such Lender may have.

     

    (b)           If
      any Lender (a “benefitted Lender”) shall at any time receive any payment of all
      or part of the Loans owing to it, or interest thereon, or receive any collateral
      in respect thereof (whether voluntarily or involuntarily, by set-off, or
      otherwise), in a greater proportion than any such payment to or collateral
      received by any other Lender, if any, in respect of such other Lender’s Loans
      owing to it, or interest thereon, such benefitted Lender shall purchase for
      cash
      from the other Lenders a participating interest in such portion of each such
      other Lender’s Loans owing to it, or shall provide such other Lenders with the
      benefits of any such collateral, or the proceeds thereof, as shall be necessary
      to cause such benefitted Lender to share the excess payment or benefits of
      such
      collateral or proceeds ratably with each of the Lenders; provided, however,
      that if all
      or any portion of such excess payment or benefits is thereafter recovered from
      such benefitted Lender, such purchase shall be rescinded, and the purchase
      price
      and benefits returned, to the extent of such recovery, but without
      interest.  Each Borrower agrees that any Lender so purchasing a
      participation from a Lender pursuant to this

     

    
      
        
        

      

      
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    Section
      11.3 may, to
      the fullest extent permitted by law, exercise all of its rights of payment
      (including the right of set-off) with respect to such participation as fully
      as
      if such Person were the direct creditor of the Borrowers in the amount of such
      participation.

     

    11.4.         Survival.  All
      covenants, agreements, representations and warranties made herein shall survive
      the making by the Lenders of the Loans and the execution and delivery to the
      Lenders of this Agreement and shall continue in full force and effect so long
      as
      any of Obligations remain outstanding or any Lender has any Loan hereunder
      or
      any Borrower has continuing obligations hereunder unless otherwise provided
      herein.  Whenever in this Agreement any of the parties hereto is
      referred to, such reference shall be deemed to include the successors and
      permitted assigns of such party and all covenants, provisions and agreements
      by
      or on behalf of any Borrower which are contained in the Loan Documents shall
      inure to the benefit of the successors and permitted assigns of the Lenders
      or
      any of them.

     

    11.5.        Expenses.  AIH
      III, the Irish Holdco Party and each Borrower agree, jointly and severally,
      to
      pay on demand (subject, in the case of preparation, execution, delivery and
      administration costs, to the Fee Letter), all reasonable costs and expenses
      of
      the Agent and the Joint Lead Arrangers in connection with the preparation,
      execution, delivery, administration, modification, and amendment of this
      Agreement, the other Loan Documents, subject to any cap that may have otherwise
      been agreed, and the other documents to be delivered hereunder, including,
      without limitation, the reasonable fees and expenses of counsel for the Agent
      (excluding the cost of internal counsel) with respect thereto and with respect
      to advising the Agent as to its rights and responsibilities under the Loan
      Documents.  AIH III, the Irish Holdco Party and each Borrower further
      agree, jointly and severally, to pay on demand all costs and expenses of the
      Agent and the Lenders, if any (including, without limitation, reasonable
      external attorneys’ fees and expenses), in connection with the enforcement
      (whether through negotiations, legal proceedings, or otherwise) of the Loan
      Documents and the other documents to be delivered hereunder.

     

    11.6.        Amendments
      and
      Waivers.  Neither
      this Agreement, any other Loan Document, nor any terms hereof or thereof may
      be
      amended, supplemented or modified except in accordance with the provisions
      of
      this Section 11.6.  The Required Lenders and each Credit Party party
      to the relevant Loan Document may, or, with the written consent of the Required
      Lenders, the Agent and each Credit Party party to the relevant Loan Document
      may, from time to time, (a) enter into written amendments, supplements or
      modifications hereto and to the other Loan Documents for the purpose of adding
      any provisions to this Agreement or the other Loan Documents or changing in
      any
      manner the rights of the Lenders or of the Loan Parties hereunder or thereunder
      or (b) waive, on such terms and conditions as the Required Lenders or the Agent,
      as the case may be, may specify in such instrument, any of the requirements
      of
      this Agreement or the other Loan Documents or any Default or Event of Default
      and its consequences; provided, however, that no such waiver and no such
      amendment, supplement or modification shall (i) forgive the principal amount
      or
      extend the final scheduled date of maturity of any Loan, reduce the stated
      rate
      of any interest or fee payable hereunder (except that any amendment or
      modification of defined terms used in the financial covenants in this Agreement
      shall not constitute a reduction in the rate of interest or fees for purposes
      of
      this clause (i) or extend the scheduled date of any payment thereof, or increase
      the amount or extend the expiration date of any Lender’s Revolving Credit
      Commitment, in each case without the written consent of each 

     

    
      
        
        

      

      
        74

        
          

        

      

      
        
        

      

    

     

    Lender
      directly affected thereby; (ii) eliminate or reduce the voting rights of any
      Lender under this Section 11.6 without the written consent of such Lender;
      (iii)
      reduce any percentage specified in the definition of Required Lenders, consent
      to the assignment or transfer by AIH III, the Irish Holdco Party or any Borrower
      of any of their respective rights and obligations under this Agreement and
      the
      other Loan Documents, release all or substantially all of the Collateral or
      release all or substantially all of the Guarantors from their obligations under
      the various Facility Guarantees, in the case of clauses (i) through (iii)
      without the written consent of all Lenders; or (iv) amend, modify or waive
      any
      provision of Article X without the written consent of the Agent.  Any
      such waiver and any such amendment, supplement or modification shall apply
      equally to each of the Lenders and shall be binding upon the Credit Parties,
      the
      Lenders, the Agent and all future holders of the Loans.  In the case
      of any waiver, the Credit Parties, the Lenders and the Agent shall be restored
      to their former position and rights hereunder and under the other Loan
      Documents, and any Default or Event of Default waived shall be deemed to be
      cured and not continuing; but no such waiver shall extend to any subsequent
      or
      other Default or Event of Default, or impair any right consequent
      thereon;

     

    No
      notice to or demand on any Borrower in any case shall entitle such Borrower
      or
      any other Borrower to any other or further notice or demand in similar or other
      circumstances, except as otherwise expressly provided herein.  No
      delay or omission on any Lender’s or the Agent’s part in exercising any right,
      remedy or option shall operate as a waiver of such or any other right, remedy
      or
      option or of any Default or Event of Default.

     

    11.7.         Counterparts.  This
      Agreement may be executed in any number of counterparts, each of which when
      so
      executed and delivered shall be deemed an original, and it shall not be
      necessary in making proof of this Agreement to produce or account for more
      than
      one such fully-executed counterpart.

     

    11.8.         Return
      of
      Funds.  If
      after receipt of any payment of all or any part of the Obligations, any Lender
      is for any reason compelled to surrender such payment to any Person because
      such
      payment is determined to be void or voidable as a preference, impermissible
      setoff, a diversion of trust funds or for any other reason, this Agreement
      shall
      continue in full force and each Borrower, jointly and severally, shall be liable
      to, and shall indemnify and hold the Agent or such Lender harmless for, the
      amount of such payment surrendered until the Agent or such Lender shall have
      been finally and irrevocably paid in full.  The provisions of the
      foregoing sentence shall be and remain effective notwithstanding any contrary
      action which may have been taken by the Agent or the Lenders in reliance upon
      such payment, and any such contrary action so taken shall be without prejudice
      to the Agent or the Lenders’ rights under this Agreement and shall be deemed to
      have been conditioned upon such payment having become final and
      irrevocable.

     

    11.9.        
      Indemnification;
      Limitation of Liability.

     

    (a)           
      AIH III, the Irish Holdco Party and each Borrower, jointly and severally, agree
      to indemnify and hold harmless the Agent (which term for purposes of this Section 11.9 includes
      the “Mortgagee” under each Security Agreement and the “Security Agent” under
      each Lockbox Agreement), the Joint Lead Arrangers and each Lender and each
      of their affiliates and their respective officers, directors, employees, agents,
      and advisors (each, an “Indemnified Party”) 

     

    
      
        
        

      

      
        75

        
          

        

      

      
        
        

      

    

     

    from
      and against any and all claims, damages, losses, liabilities, costs, and
      expenses  (including, without limitation, reasonable external
      attorneys’ fees, but excluding principal and accrued interest on any Loan) that
      may be incurred by or asserted or awarded against any Indemnified Party, in
      each
      case arising out of or in connection with or by reason of (including, without
      limitation, in connection with any investigation, litigation, or proceeding
      or
      preparation of defense in connection therewith) the Loan Documents, any of
      the
      transactions contemplated herein, any Aircraft, Engine or other Collateral,
      any
      possession, performance, transportation, management, sale, ownership,
      registration, mortgage, charging, control, maintenance, service, repair, design,
      testing, defect, overhaul, purchase, bearing, use or operation of any Aircraft,
      Engine or other Collateral, or the actual or proposed use of the proceeds of
      the
      Loans, except to the extent such claim, damage, loss, liability, cost, or
      expense is found in a final, non-appealable judgment by a court of competent
      jurisdiction to have resulted from such Indemnified Party’s gross negligence or
      willful misconduct.  In the case of an investigation, litigation or
      other proceeding to which the indemnity in this Section 11.9 applies,
      such indemnity shall be effective whether or not such investigation, litigation
      or proceeding is brought by AIH III, the Irish Holdco Party, any Borrower,
      its
      directors, shareholders or creditors or an Indemnified Party or any other Person
      or any Indemnified Party is otherwise a party thereto and whether or not the
      transactions contemplated hereby are consummated.  AIH III, the Irish
      Holdco Party and each Borrower agree that no Indemnified Party shall have any
      liability (whether direct or indirect, in contract or tort or otherwise) to
      it,
      any of its Subsidiaries, any Guarantor or any security holders or creditors
      thereof arising out of, related to or in connection with the transactions
      contemplated in any Loan Document, except to the extent that such liability
      directly results from such Indemnified Party’s gross negligence or willful
      misconduct.  AIH III, the Irish Holdco Party and each Borrower agree
      not to assert any claim against the Agent, the Joint Lead Arrangers, any Lender,
      any of their affiliates, or any of their respective directors, officers,
      employees, attorneys, agents, and advisers, on any theory of liability, for
      special, indirect, consequential, or punitive damages arising out of or
      otherwise relating to the Loan Documents, any of the transactions contemplated
      herein or the actual or proposed use of the proceeds of the Loans.

     

    (b)           Without
      prejudice to the survival of any other agreement of AIH III, the Irish Holdco
      Party or any Borrower hereunder, the agreements and obligations of AIH III,
      the
      Irish Holdco Party and each Borrower contained in this Section 11.9 shall
      survive the payment in full of the Loans and all other amounts payable under
      this Agreement.

     

    (c)           Except
      as expressly provided herein, each Lender, each Borrower and the Agent agree
      that this Agreement and each other Loan Document entered into by a Holdings
      Subsidiary Trust is executed by a Qualified Trustee, not individually but solely
      as Trustee under a Trust Agreement in the exercise of the power and authority
      conferred and vested in it as such Trustee, that each and all of the
      representations, undertakings and agreements by a Qualified Trustee, or for
      the
      purpose or with the intention of binding a Qualified Trustee, are made and
      intended for the purpose of binding only the Trust Estates (and, to the extent
      any Lender, Borrower or Agent has an interest therein, any liability insurance
      proceeds), and that in no case whatsoever shall any Qualified Trustee be
      personally liable for any loss in respect of such representations, undertakings
      and agreements, that nothing herein contained shall be construed as creating
      any
      liability on any Qualified Trustee individually or personally, to perform any
      covenant, either express or implied, herein, all such liability, if any, being
      expressly waived by 

     

    
      
        
        

      

      
        76

        
          

        

      

      
        
        

      

    

     

    each
      Lender, each Borrower and the Agent and by each and every Person now or
      hereafter claiming by, through or under such Persons except with respect to
      the
      gross negligence or willful misconduct of such Qualified Trustee or for any
      Liens on the Collateral arising from, through or under such Qualified Trustee
      in
      its individual capacity, and that so far as any Qualified Trustee, individually
      or personally is concerned, each Lender, each Borrower and the Agent and any
      Person claiming by, through or under such Persons shall look solely, except
      as
      provided above, to the Trust Estates (and, to the extent any Lender, Borrower
      or
      Agent has an interest therein, any liability insurance proceeds), for the
      performance of any obligation under this Credit Agreement and the other Loan
      Documents.  The term “Trustee” as used in this Section 11.9(c) shall
      include any Qualified Trustee succeeding a Qualified Trustee, as trustee under
      a
      Trust Agreement.  Any obligation of any Holdings Subsidiary Trust
      hereunder or under the other Loan Documents may be performed by a Beneficial
      Owner, and any such performance shall not be construed as revocation of the
      trust created by any Trust Agreement.

    
       

      11.10.      Joint
        Lead Arrangers.  The
        Joint Lead Arrangers shall not have any right, power, obligation, liability,
        responsibility or duty under this Agreement other than the rights to receive
        reimbursement or payment of costs or expenses incurred by them as provided
        in
        Section 11.5 and the right to indemnity under Section
        11.9.

    

     

    11.11.      Severability.  If
      any provision of this Agreement or the other Loan Documents shall be determined
      to be illegal or invalid as to one or more of the parties hereto, then such
      provision shall remain in effect with respect to all parties, if any, as to
      whom
      such provision is neither illegal nor invalid, and in any event all other
      provisions hereof shall remain effective and binding on the parties
      hereto.

     

    11.12.      Entire
      Agreement.  This
      Agreement, together with the other Loan Documents, constitutes the entire
      agreement among the parties with respect to the subject matter hereof and
      supersedes all previous proposals, negotiations, representations, and other
      communications between or among the parties, both oral and written, with respect
      thereto.

     

    11.13.      Payments.  All
      principal, interest, and other amounts to be paid by any Borrower under this
      Agreement and the other Loan Documents shall be paid to the Agent at the
      Principal Office in Dollars and in immediately available funds, without setoff,
      deduction or counterclaim.  Subject to the definition of “Interest
      Period” herein, whenever any payment under this Agreement or any other Loan
      Document shall be stated to be due on a day that is not a Business Day, such
      payment may be made on the next succeeding Business Day, and such extension
      of
      time in such case shall be included in the computation of interest and fees,
      as
      applicable, and as the case may be.

     

    11.14.      Confidentiality.  The
      Agent and each Lender (each, a “Lending Party”) agrees to keep confidential any
      information furnished or made available to it by AIH III, the Irish Holdco
      Party
      or any other Credit Party or any Affiliate thereof, pursuant to or in connection
      with this Agreement or the other Loan Documents; provided that nothing herein
      shall prevent any Lending Party from disclosing such information (a) to any
      other Lending Party or any affiliate of any Lending Party, or any officer,
      director, employee, agent, or advisor of any Lending Party or affiliate or
      any
      Lending Party, (b) to any other Person if reasonably incidental to the
      administration of the credit facility provided herein, (c) as required by any
      law, rule, or regulation, (d) upon the order of any court or administrative
      agency, (e) upon the request or demand of any regulatory agency or authority,
      (f) that is or becomes available to the public or that is or becomes available
      to any Lending Party other than as a result of a disclosure by any Lending
      Party
      prohibited by this Agreement, (g) in connection with any litigation to which
      such Lending 

     

    
      
        
        

      

      
        77

        
          

        

      

      
        
        

      

    

     

    Party
      or any of its affiliates may be a party, (h) to the extent necessary in
      connection with the exercise of any remedy under this Agreement or any other
      Loan Document, and (i) subject to provisions substantially similar to those
      contained in this Section, to any actual or proposed participant or
      assignee.

     

    11.15.      Governing
      Law; Waiver of
      Jury Trial.

     

    (a)           THIS
      AGREEMENT SHALL BE GOVERNED BY,
      AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
      YORK.

     

    (b)           AIH
      III, THE IRISH HOLDCO PARTY AND
      EACH BORROWER HEREBY EXPRESSLY AND IRREVOCABLY AGREES AND CONSENTS THAT ANY
      SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT AND
      THE
      TRANSACTIONS CONTEMPLATED HEREIN MAY BE INSTITUTED IN ANY STATE OR FEDERAL
      COURT
      SITTING IN THE COUNTY OF NEW YORK, STATE OF NEW YORK, UNITED STATES OF AMERICA
      AND, BY THE EXECUTION AND DELIVERY OF THIS AGREEMENT, AIH III, THE IRISH HOLDCO
      PARTY AND EACH BORROWER EXPRESSLY WAIVES ANY OBJECTION THAT IT MAY NOW OR
      HEREAFTER HAVE TO THE LAYING OF VENUE IN, OR TO THE EXERCISE OF JURISDICTION
      OVER IT AND ITS PROPERTY BY, ANY SUCH COURT IN ANY SUCH SUIT, ACTION OR
      PROCEEDING, AND AIH III, THE IRISH HOLDCO PARTY AND EACH BORROWER HEREBY
      IRREVOCABLY SUBMITS GENERALLY AND UNCONDITIONALLY TO THE JURISDICTION OF ANY
      SUCH COURT IN ANY SUCH SUIT, ACTION OR PROCEEDING.

     

    (c)           AIH
      III, THE IRISH HOLDCO PARTY AND
      EACH BORROWER AGREES THAT SERVICE OF PROCESS MAY BE MADE BY PERSONAL SERVICE
      OF
      A COPY OF THE SUMMONS AND COMPLAINT OR OTHER LEGAL PROCESS IN ANY SUCH SUIT,
      ACTION OR PROCEEDING, OR BY REGISTERED OR CERTIFIED MAIL (POSTAGE PREPAID)
      TO
      THE ADDRESS PROVIDED IN SECTION
      11.2(a), OR BY
      ANY OTHER METHOD OF SERVICE PROVIDED FOR UNDER THE APPLICABLE LAWS IN EFFECT
      IN
      THE STATE OF NEW YORK.

     

    (d)           NOTHING
      CONTAINED IN SUBSECTIONS
      (a) OR
(b)
      HEREOF SHALL PRECLUDE THE AGENT OR
      ANY LENDER FROM BRINGING ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR
      RELATING TO ANY LOAN DOCUMENT IN THE COURTS OF ANY OTHER
      JURISDICTION.  TO THE EXTENT PERMITTED BY THE APPLICABLE LAWS OF ANY
      SUCH JURISDICTION, AIH III, THE IRISH HOLDCO PARTY AND EACH BORROWER HEREBY
      IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY SUCH COURT AND EXPRESSLY WAIVES,
      IN RESPECT OF ANY SUCH SUIT, ACTION OR PROCEEDING, OBJECTION TO THE EXERCISE
      OF
      JURISDICTION OVER IT AND ITS PROPERTY BY ANY SUCH OTHER COURT OR COURTS WHICH
      NOW OR HEREAFTER MAY BE AVAILABLE UNDER APPLICABLE LAW.

     

    
      
        
        

      

      
        78

        
          

        

      

      
        
        

      

    

     

    (e)           IN
      ANY ACTION OR PROCEEDING TO
      ENFORCE OR DEFEND ANY RIGHTS OR REMEDIES UNDER OR RELATED TO ANY LOAN DOCUMENT
      OR ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR THAT MAY IN
      THE
      FUTURE BE DELIVERED IN CONNECTION THEREWITH, AIH III, THE IRISH HOLDCO PARTY,
      THE BORROWERS, THE AGENT AND THE LENDERS HEREBY AGREE, TO THE EXTENT PERMITTED
      BY APPLICABLE LAW, THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE
      A
      COURT AND NOT BEFORE A JURY AND HEREBY IRREVOCABLY WAIVE, TO THE EXTENT
      PERMITTED BY APPLICABLE LAW, ANY RIGHT SUCH PERSON MAY HAVE TO TRIAL BY JURY
      IN
      ANY SUCH ACTION OR PROCEEDING.

     

    11.16.      Judgment
      Currency.

     

    (a)           To
      the extent permitted by applicable law, if for the purposes of obtaining
      judgment in any court it is necessary to convert a sum due hereunder in United
      States Dollars into another currency, the parties hereto agree, to the fullest
      extent that they may effectively do so, that the rate of exchange used shall
      be
      determined in accordance with Section 1.3 of this Agreement on the Business
      Day
      preceding that on which final judgment is given.

     

    To
      the extent permitted by applicable law, the obligation of each Credit Party
      in
      respect of any sum due in United States Dollars from it to any Lender or the
      Agent hereunder shall, notwithstanding any judgment in a currency other than
      United States Dollars, be discharged only to the extent that on the Business
      Day
      following receipt by such Lender or the Agent (as the case may be) of any sum
      adjudged to be so due in such other currency, such Lender or the Agent (as
      the
      case may be) may in accordance with normal banking procedures purchase United
      States Dollars with such other currency; if the United States Dollars so
      purchased are less than such sum due to such Lender or the Agent (as the case
      may be) in United States Dollars, each Credit Party agrees, to the extent
      permitted by applicable law, as a separate obligation and notwithstanding any
      such judgment, to indemnify such Lender or the Agent (as the case may be)
      against such loss, and if the United States Dollars so purchased exceed such
      sum
      due to any Lender or the Agent (as the case may be) in United States Dollars,
      such Lender or the Agent (as the case may be) agrees to remit to each such
      Credit Party such excess.

     

    11.17.       USA
      PATRIOT
      Act.  Each
      Lender hereby notifies AIH III, the Irish Holdco Party and each Borrower that
      pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56
      (signed into law October 26, 2001)) (the “Act”), it is required to obtain,
      verify and record information that identifies each Borrower, which information
      includes the name and address of such Borrower and other information that will
      allow such Lender to identify each Borrower in accordance with the
      Act.

     

     

    
      
        
        

      

      
        79

        
          

        

      

      
        
        

      

    

     

     

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

     

    
       

      
        

        
          	 	
                  
                    AIRCASTLE
                      INVESTMENT HOLDINGS 3 LIMITED

                  

                
	 	 	 
	 	 	 
	 	
                  By:

                	/s/
                  David Walton  
                  	 
	 	 	
                  Name:

                	David
                  Walton
	 	 	
                  Title:

                	Assistant
                  Secretary and General Counsel 
	 	 	 	 
	 	 	 	 

        

        

      

      
        

        
          	 	 	 
	 	 	 
	 	
                  By:

                	/s/
                  Ron Wainshal 	 
	 	 	
                  Name:

                	Ron
                  Wainshal  
	 	 	
                  Title:

                	Chairman
                  and Chief Executive Officer  
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

        

        

      

      
 

    

     

    

    

    

    Signature
      Page to Revolving Credit Agreement (2008-A)

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    

    

    
      	 	
              JPMORGAN
                CHASE BANK, N.A., as Agent and as a Lender

            
	 	 	 
	 	 	 
	 	
              By:

            	  /s/
              Matthew H. Massie	 
	 	 	
              Name:

            	 Matthew
              H. Massie
	 	 	
              Title:

            	 Managing
              Director
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

    

    

    

    

    Signature
      Page to Revolving Credit Agreement (2008-A)

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

     

    
      

      
        	 	
                CALYON
                  NEW YORK BRANCH, as a Lender

              
	 	 	 
	 	 	 
	 	
                By:

              	  /s/
                Yevgeniya Levitin	 
	 	 	
                Name:

              	 Yevgeniya
                Levitin
	 	 	
                Title:

              	 Director
	 	 	 	 
	 	 	 	 
	 	 	 	 

      

      

    

    
      

      
        	 	 	 
	 	 	 
	 	
                By:

              	  /s/
                Brian Bolotin	 
	 	 	
                Name:

              	 Brian
                Bolotin
	 	 	
                Title:

              	 Managing
                Director
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

      

      

    

    
 

    

    Signature
      Page to Revolving Credit Agreement (2008-A)Exhibit 10.1

EXECUTION VERSION

$50,000,000

CREDIT AGREEMENT

among

TRICO MARINE SERVICES, INC.,

as Borrower

TRICO MARINE ASSETS, INC.,

and

TRICO MARINE OPERATORS, INC.,

as Guarantors

VARIOUS LENDERS

and

NORDEA BANK FINLAND PLC, NEW YORK BRANCH,

as Administrative Agent,

Lead Arranger and Book Runner

			
	 
	 
	 

Dated as of January 31, 2008

			
	 
	 
	 

TABLE OF CONTENTS

			
	 
	 
	Page

	 
	 
	 

	SECTION 1.

	Defined Terms 

	6

	 
	 
	 

	SECTION 2.

	Amount and Terms of Credit Facility

	17

	2.01

	Revolving Loan Commitments

	17

	2.02 

	Minimum Amount of Each Borrowing; Limitation on Number of Borrowings

	17

	2.03 

	Notice of Borrowing

	18

	2.04

	Disbursement of Funds

	18

	2.05 

	Revolving Notes

	18

	2.06 

	Conversions and Continuations

	19

	2.07 

	Pro Rata Borrowings

	19

	2.08

	Interest

	19

	2.09 

	Interest Periods

	20

	2.10 

	Increased Costs, Illegality, etc.

	21

	2.11 

	Compensation 

	22

	2.12 

	Change of Lending Office

	23

	2.13 

	Replacement of Lenders

	23

	 
	 
	 

	SECTION 3.

	Letters of Credit

	23

	3.01 

	Letters of Credit

	23

	3.02 

	Maximum Letter of Credit Outstandings; Maturities

	24

	3.03 

	Letter of Credit Requests; Minimum Stated Amount.

	24

	3.04 

	Letter of Credit Participations

	25

	3.05 

	Agreement to Repay Letter of Credit Drawings

	26

	3.06 

	Increased Costs

	27

	 
	 
	 

	SECTION 4. 

	Commitment Commission; Reductions of Commitment

	27

	4.01

	Fees

	27

	4.02 

	Voluntary Termination of Unutilized Commitments

	28

	4.03 

	Mandatory Reduction of Commitments

	29

	 
	 
	 

	SECTION 5.

	Prepayments; Payments; Taxes

	29

	5.01 

	Voluntary Prepayments

	29

	5.02 

	Mandatory Repayments

	30

	5.03

	Method and Place of Payment

	30

	5.04

	Net Payments; Taxes

	30

	 
	 
	 

	SECTION 6. 

	Conditions Precedent to the Effective Date

	32

	6.01 

	Execution of Agreement; Revolving Notes

	32

	6.02 

	Fees, etc.

	32

	6.03 

	Officer’s Certificate 

	32

	6.04

	Opinions of Counsel

	32

	6.05 

	Corporate Documents; Proceedings; etc

	32

	6.06 

	Pledge Agreement

	33

	6.07 

	Adverse Change; Approvals 

	33

	6.08 

	Litigation

	33

	6.09 

	Solvency Certificate

	33

	6.10 

	Financial Statements; Projections

	33

	 
	 
	 

	SECTION 7.

	Conditions Precedent to All Credit Events 

	34

	7.01 

	Effective Date 

	34

	7.02 

	No Default; Representations and Warranties

	34

	7.03 

	Notice of Borrowing

	34

			
	 
	 
	Page

	 
	 
	 

	SECTION 8. 

	Representations, Warranties and Agreements

	34

	8.01

	Corporate/Limited Liability Company/Limited Partnership Status

	34

	8.02 

	Corporate Power and Authority

	34

	8.03 

	No Violation

	35

	8.04

	Governmental Approvals

	35

	8.05 

	Financial Statements; Financial Condition; Undisclosed Liabilities; Projections; etc

	35

	8.06 

	Litigation

	36

	8.07 

	True and Complete Disclosure

	36

	8.08 

	Use of Proceeds; Margin Regulations

	36

	8.09 

	Tax Returns and Payments

	36

	8.10 

	Compliance with ERISA

	36

	8.11 

	The Security Documents

	37

	8.12 

	Subsidiaries

	37

	8.13 

	Compliance with Statutes, etc

	37

	8.14 

	Investment Company Act 

	38

	8.15 

	Environmental Matters

	38

	8.16 

	Labor Relations

	38

	8.17 

	Patents, Licenses, Franchises and Formulas

	38

	8.18

	Indebtedness

	38

	8.19 

	Insurance

	38

	8.20 

	Properties

	39

	8.21 

	Legal Names; Type of Organization (and Whether a Registered Organization); Jurisdiction of Organization; etc

	39

	 
	 
	 

	SECTION 9.

	Affirmative Covenants

	39

	9.01

	Information Covenants

	39

	9.02 

	Books, Records and Inspections 

	41

	9.03 

	Maintenance of Property; Insurance 

	41

	9.04 

	Existence; Franchises

	41

	9.05 

	Compliance with Statutes, etc

	41

	9.06

	Compliance with Environmental Laws

	42

	9.07 

	ERISA

	43

	9.08 

	End of Fiscal Years; Fiscal Quarters

	43

	9.09 

	Performance of Obligations 

	43

	9.10 

	Payment of Taxes

	43

	9.11 

	Additional Security; Additional Guarantors; Further Assurances

	44

	9.12 

	Use of Proceeds

	44

	9.13 

	Ownership of Credit Parties

	44

	 
	 
	 

	SECTION 10.

	Negative Covenants

	44

	10.01 

	Liens

	44

	10.02 

	Consolidation, Merger, Purchase or Sale of Assets, etc 

	46

	10.03 

	Dividends 

	48

	10.04 

	Indebtedness

	48

	10.05 

	Advances, Investments and Loans

	50

	10.06 

	Transactions with Affiliates

	51

	10.07 

	Maintenance Capital Expenditures

	51

	10.08 

	Consolidated Leverage Ratio

	51

	10.09 

	Consolidated Net Worth 

	52

	10.10 

	Free Liquidity

	52

	10.11 

	Limitations on Modifications of Certificate of Incorporation, By-Laws and  Certain Other Agreements, etc

	52

	10.12

	Limitation on Certain Restrictions on Subsidiaries

	52

	10.13 

	Limitation on Issuance of Capital Stock

	52

	10.14 

	Change of Legal Names; Type of Organization (and whether a Registered  Organization); Jurisdiction of Organization etc

	53

			
	 
	 
	Page

	 
	 
	 

	10.15

	Business 

	53

	10.16

	ERISA

	53

	 
	 
	 

	SECTION 11.

	Events of Default

	53

	11.01

	Payments

	53

	11.02

	Representations, etc.

	53

	11.03 

	Covenants

	53

	11.04 

	Default Under Other Agreements

	54

	11.05 

	Bankruptcy, etc.

	54

	11.06 

	ERISA

	54

	11.07 

	Security Documents

	54

	11.08 

	Guaranties 

	54

	11.09 

	Judgments

	55

	11.10 

	Change of Control

	55

	11.11

	Trico Subsea AS Credit Agreement

	55

	 
	 
	 

	SECTION 12.

	The Administrative Agent

	55

	12.01 

	Appointment

	55

	12.02 

	Nature of Duties

	55

	12.03

	Lack of Reliance on the Administrative Agent

	56

	12.04 

	Certain Rights of the Administrative Agent

	56

	12.05 

	Reliance

	56

	12.06 

	Indemnification

	56

	12.07 

	The Administrative Agent in its Individual Capacity

	57

	12.08 

	Holders

	57

	12.09 

	Resignation by the Administrative Agent

	57

	 
	 
	 

	SECTION 13.

	Guaranty

	58

	13.01 

	Guaranty

	58

	13.02 

	Bankruptcy

	58

	13.03 

	Nature of Liability

	58

	13.04 

	Independent Obligation

	58

	13.05 

	Authorization 

	58

	13.06 

	Reliance

	59

	13.07 

	Subordination.

	59

	13.08 

	Waiver

	60

	13.09 

	Payment

	60

	 
	 
	 

	SECTION 14.

	Miscellaneous 

	60

	14.01 

	Payment of Expenses, etc. 

	60

	14.02 

	Right of Setoff

	61

	14.03 

	Notices 

	62

	14.04 

	Benefit of Agreement; Assignments; Participations

	62

	14.05 

	No Waiver; Remedies Cumulative 

	64

	14.06 

	Payments Pro Rata 

	64

	14.07 

	Calculations; Computations

	64

	14.08 

	GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE; WAIVER OF JURY TRIAL

	65

	14.09 

	Counterparts

	65

	14.10 

	Effectiveness

	66

	14.11 

	Headings Descriptive

	66

	14.12 

	Amendment or Waiver; etc.

	66

	14.13 

	Survival

	67

	14.14 

	Domicile of Revolving Loans

	67

	14.15 

	Register 

	67

	14.16 

	Confidentiality 

	68

			
	 
	 
	Page

	 
	 
	 

	14.17 

	USA PATRIOT Act Notice 

	68

CREDIT AGREEMENT, dated as of January [__], 2008 (this “Agreement”), among TRICO MARINE SERVICES, INC., a Delaware corporation (the “Borrower”), TRICO MARINE ASSETS INC., a Delaware corporation, as a Guarantor (as defined below) and TRICO MARINE OPERATORS, INC., a Louisiana corporation, as a Guarantor, the Lenders party hereto from time to time, and NORDEA BANK FINLAND PLC, NEW YORK BRANCH (“Nordea”), as Administrative Agent (in such capacity, the “Administrative Agent”) and Lead Arranger for the Lenders (in such capacity, the “Lead Arranger”). All capitalized terms used herein and defined in Section 1 are used herein as therein defined.

W I T N E S S E T H:

WHEREAS, the Lenders are willing to extend credit to the Borrower, on the terms and conditions set forth herein. Accordingly, the parties hereto agree as follows: 

ARTICLE I

Definitions

SECTION1. Defined Terms. As used in this Agreement, the following terms shall have the meanings specified below: 

“Acquisition” shall mean the acquisition by Trico Supply AS (Norway), a wholly-owned subsidiary of the Borrower, of all or substantially all of the business (including, without limitation, all assets and related operations) of Trico Subsea ASA. 

“Administrative Agent” shall have the meaning provided in the first paragraph of this Agreement, and shall include any successor thereto. 

“Affiliate” shall mean, with respect to any Person, any other Person directly or indirectly controlling (including, but not limited to, all directors and officers of such Person), controlled by, or under direct or indirect common control with, such Person. A Person shall be deemed to control another Person if such Person possesses, directly or indirectly, the power (i) to vote 10% or more of the securities having ordinary voting power for the election of directors (or equivalent governing body) of such Person or (ii) to direct or cause the direction of the management and policies of such other Person, whether through the ownership of voting securities, by contract or otherwise; provided, however, that neither the Administrative Agent nor any Affiliate thereof shall be considered an Affiliate of the Borrower or any Subsidiary thereof. 

“Agreement” shall mean this Credit Agreement, as modified, supplemented, amended, restated, extended or renewed from time to time. 

“Applicable Margin” shall (x) in the case of Eurodollar Loans, initially mean a percentage per annum equal to 1.50%; provided that the Applicable Margin on the Revolving Loans shall be subject to adjustments as set forth in the pricing grid provided below based on meeting the Consolidated Leverage Ratio as set forth herein (but in any event, such adjustments are not to be commenced prior to the delivery of financial statements delivered in respect of the fiscal quarter ending on December 31, 2007); and (y) in the case of Base Rate Loans, mean a percentage per annum equal to 1.0% less than the then Applicable Margin for Eurodollar Loans: 

					
	Level

	 
	Consolidated Leverage Ratio

	 
	Percentage

	3

	 
	Greater than 2.50:1.00 

	 
	1.75%

	2

	 
	Greater than 1.00:1.00 or equal to or greater than 2.50:1.00 

	 
	1.50%

	1

	 
	Equal to or less than 1.00:1.00 

	 
	1.25%

The Consolidated Leverage Ratio used in a determination of the Applicable Margin shall be determined based on the delivery of a certificate of the Borrower (each, a “Quarterly Pricing Certificate”) by an authorized officer of the Borrower to the Administrative Agent (with a copy to be sent by the Administrative Agent to each Lender), within 45 days of the last day of any fiscal quarter of the Borrower, which certificate shall set forth the calculation of the Consolidated Leverage Ratio as at the last day of the Test Period ended immediately prior to the relevant date of the delivery of such Quarterly Pricing Certificate (each a “Start Date”) and the Applicable Margins which shall be thereafter applicable (until same are changed or cease to apply in accordance with the following sentences). The Applicable Margin so determined shall apply, except as set forth in the succeeding sentence, from the relevant Start Date to the earliest of (x) the date on which the next certificate is delivered to the Administrative Agent or (y) the date which is 45 days following the last day of the Test Period in which the previous Start Date occurred, at which time Level 3 pricing shall apply until such time, if any, as a Quarterly Pricing Certificate has been delivered showing the pricing for the respective period is at a Level below Level 3 (it being understood that, in the case of any Quarterly Pricing Certificate as so required, any reduction in the Applicable Margin shall apply only from and after the date of the delivery of the complying financial statements and officer’s certificate); provided further, that Level 3 pricing shall apply (i) at all times when any Default or Event of Default is in existence and (ii) for the period from the Effective Date to the date of the delivery of the Borrower’s financial  statements (and related officer’s certificate) in respect of its fiscal quarter ending on December 31, 2007. 

“Assignment and Assumption Agreement” shall mean the Assignment and Assumption Agreement substantially in the form of Exhibit J (appropriately completed). 

“Bankruptcy Code” shall have the meaning provided in Section 11.05. 

“Base Rate” shall mean for any day, a rate of interest per annum equal to the higher of (x) the Prime Rate for such day and (y) the sum of the Federal Funds Rate for such day plus 1/2 of 1% per annum. 

“Base Rate Loan” shall mean each Revolving Loan designated as such by the Borrower at the time of the incurrence thereof or conversion thereto. 

“Borrower” shall have the meaning set forth in the first paragraph of this Agreement. 

“Borrowing” shall mean the borrowing of Revolving Loans from all the Lenders (other than any Lender which has not funded its share of a Borrowing in accordance with this Agreement) having commitments on a given date and, in the case of Eurodollar Loans, having the same Interest Period. 

“Business Day” shall mean (i) for all purposes other than as covered by the following clause (ii), any day except Saturday, Sunday and any day which shall be in New York, New York a legal holiday or a day on which banking institutions are authorized or required by law or other government action to close and (ii) with respect to all notices and determinations in connection with, and payments of principal and interest on, Eurodollar Loans, any day which is a Business Day described in clause (i) above and which is also a day for trading by and between banks in U.S. dollar deposits in the applicable interbank Eurodollar market. 

“Capital Expenditures” shall mean, with respect to any Person, all expenditures by such Person which should be capitalized in accordance with GAAP (excluding Capitalized Lease Obligations). 

“Capital Stock” shall mean (i) in the case of a corporation, corporate stock, (ii) in the case of an association or business entity, any and all shares, interests, participations, rights or other equivalents of corporate stock, (iii) in the case of a partnership or limited liability company, partnership or membership interests (whether general or limited) and (iv) any other interest or participation that confers on a Person the right to receive a share of the profits and losses of, or distribution of assets of, the issuing Person. 

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

“Cash Equivalents” shall mean, as to any Person, (i) (x) Dollars and (y) in the case of any Foreign Subsidiary of the Borrower, Euros and such local currencies held by any such Foreign Subsidiary from time to time in the ordinary course of its business, (ii) securities issued or directly and fully guaranteed or insured by (x) in the case of a Foreign Subsidiary of the Borrower organized in Norway, Norway or any agency of instrumentality thereof (provided that the full faith and credit of Norway is pledged in support thereof) and (y) in all cases, the United States or any agency or instrumentality thereof (provided that the full faith and credit of the United States is pledged in support thereof), in either case having maturities of not more than six months from the date of acquisition, (iii) 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 six months from the date of acquisition thereof and, at the time of acquisition, having one of the two highest ratings obtainable from either S&P or Moody’s, (iv) time deposits, certificates of deposit and bankers acceptances of any Lender or any commercial bank organized under the laws of the United States, any State thereof or any other country which is a member of the Organization for Economic Cooperation and Development and, in each case, having total assets in excess of $10,000,000,000 (or an equivalent amount in the currency of any member country), (v) repurchase obligations with a term of not more than seven days for underlying securities of the types described in clause (ii)(y) above entered into with any bank meeting the qualifications specified in clause (iv) above, (vi) commercial paper issued by any Person incorporated in the United States rated at least A-1 or the equivalent thereof by S&P or at least P-1 or the equivalent thereof by Moody’s and in each case maturing not more than six months after the date of acquisition by such Person, (vii) investments in money market funds substantially all of whose assets are comprised of securities of the types described in clauses (i) through (vi) above and (viii) in the case of Foreign Subsidiaries of the Borrower, overnight deposits and demand deposit accounts (in the respective local currencies) maintained in the ordinary course of business. 

“CERCLA” shall mean the Comprehensive Environmental Response,  Compensation, and Liability Act of 1980, as amended, 42 U.S.C. § 9601 et seq. and all implementing regulations. 

“Change of Control” shall mean (i) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), shall become, or obtain rights (whether by means of warrants, options or otherwise) to become, the “beneficial owner” (as defined in Rules 13(d)-3 and 13(d)-5 under the Exchange Act), directly or indirectly, of more than 35% of the outstanding common stock of the Borrower; or (ii) the board of directors of the Borrower shall cease to consist of a majority of Continuing Directors. 

“Code” shall mean the Internal Revenue Code of 1986, as amended from time to time, and the regulations promulgated and rulings issued thereunder. Section references to the Code are to the Code, as in effect at the date of this Agreement and any subsequent provisions of the Code, amendatory thereof, supplemental thereto or substituted therefor. 

“Collateral” shall have the meaning given to such term in the Security Documents. 

“Collateral Agent” shall mean the Administrative Agent acting as collateral agent for the Secured Creditors pursuant to the Security Documents. 

“Consolidated EBITDA” shall mean, for any period, Consolidated Net Income for such period, before deducting therefrom (i) consolidated interest expense of the Borrower and its Subsidiaries for such period, (ii) provision for taxes based on income that were included in arriving at Consolidated Net Income for such period and (iii) the amount of all amortization of intangibles and depreciation to the extent that same was deducted in arriving at Consolidated Net Income for such period and without giving effect (x) to any extraordinary gains or extraordinary non-cash losses (except to the extent that any such extraordinary non-cash losses require a cash payment in a future period) and (y) to any or gains or losses from sales of assets other than from sales of inventory in the ordinary course of business. 

“Consolidated Indebtedness” shall mean, as at any date of determination, without duplication, the sum of (I) the aggregate stated balance sheet amount of all Indebtedness (but including, in any event, without limitation, the then outstanding principal amount of all Senior Notes, all Revolving Loans, all Unpaid Drawings, all Capitalized Lease Obligations and all purchase money Indebtedness) of the Borrower and its Subsidiaries at such time determined on a consolidated basis and (II) the aggregate amount of all Contingent Obligations of the Borrower and its Subsidiaries in respect of Indebtedness described in preceding clause (I) at such time determined on a consolidated basis. 

“Consolidated Leverage Ratio” shall mean, as at any date of determination, the  ratio of Consolidated Net Indebtedness as at such date to Consolidated EBITDA for the period of  four consecutive fiscal quarters most recently ending on or before such date. 

“Consolidated Net Indebtedness” shall mean, on any date, (i) Consolidated Indebtedness on such date minus (ii) unrestricted cash and Cash Equivalents of the Borrower and its Subsidiaries on such date. 

“Consolidated Net Income” shall mean, for any period, the net income (or loss) of the Borrower and its Subsidiaries for such period, determined on a consolidated basis (after any deduction for minority interests), provided that the net income of any Subsidiary of the Borrower shall be excluded to the extent that the declaration or payment of cash dividends or similar cash distributions by that Subsidiary of that net income is not at the date of determination permitted by operation of its charter or any agreement, instrument or law applicable to such Subsidiary and (iii) the net income (or loss) of any other Person acquired by the Borrower or a Subsidiary of the Borrower in a pooling of interests transaction for any period prior to the date of such acquisition shall be excluded. 

“Consolidated Net Worth” shall mean, with respect to any person, the Net Worth of such Person and its Subsidiaries determined on a consolidated basis after appropriate deduction for any minority interests in Subsidiaries. 

“Contingent Obligation” shall mean, as to any Person, any obligation of such Person as a result of such Person being a general partner of any other Person, unless the underlying obligation is expressly made non-recourse as to such general partner, and any obligation of such Person guaranteeing or intended to guarantee any Indebtedness, leases, dividends or other obligations (“primary obligations”) of any other Person (the “primary obligor”) in any manner, whether directly or indirectly, including, without limitation, any obligation of such Person, whether or not contingent, (i) to purchase any such primary obligation or any property constituting direct or indirect security therefor, (ii) to advance or supply funds (x) for the purchase or payment of any such primary obligation or (y) to maintain working capital or equity capital of the primary obligor or otherwise to maintain the net worth or solvency of the primary obligor, (iii) to purchase property, securities or services primarily for the purpose of assuring the owner of any such primary obligation of the ability of the primary obligor to make payment of such primary obligation or (iv) otherwise to assure or hold harmless the holder of such primary obligation against loss in respect thereof; provided, however, that the term Contingent Obligation shall not include endorsements of instruments for deposit or collection in the ordinary course of business or customary and reasonable indemnity obligations in effect on the Effective Date or entered into in connection with any acquisition or disposition of assets permitted by this Agreement. The amount of any Contingent Obligation shall be deemed to be an amount equal to the stated or determinable amount of the primary obligation in respect of which such Contingent Obligation is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof (assuming such Person is required to perform thereunder) as determined by such Person in good faith. 

“Continuing Directors” means the directors of the Borrower on the Effective Date, and each other director, if, in each case, such other director’s nomination for election to the board of directors of the Borrower is recommended by at least a majority of the then Continuing Directors. 

“Credit Documents” shall mean this Agreement (including the Guaranty), each Revolving Note, each Security Document, the Intercompany Subordination Agreement and, after the execution and delivery thereof, each additional guaranty executed pursuant to Section 9.11. 

“Credit Event” shall mean the making of any Revolving Loan or the issuance of any Letter of Credit. 

“Credit Party” shall mean the Borrower and each Guarantor. 

“Default” shall mean any event, act or condition which with notice or lapse of  time, or both, would constitute an Event of Default. 

“Defaulting Lender” shall mean any Lender with respect to which a Lender Default is in effect. 

“Dividend” with respect to any Person shall mean that such Person has declared or paid a dividend, distribution or returned any equity capital to its stockholders, partners or members or authorized or made any other distribution, payment or delivery of property (other than common equity of such Person) or cash to its stockholders, partners or members as such, or redeemed, retired, purchased or otherwise acquired, directly or indirectly, for a consideration (other than common equity of such Person) any shares of any class of its Capital Stock or any partnership or membership interests outstanding on or after the Effective Date (or any options or warrants issued by such Person with respect to its Capital Stock or other equity interests), or set aside any funds for any of the foregoing purposes, or shall have permitted any of its Subsidiaries to purchase or otherwise acquire for a consideration (other than common equity of such Person) any shares of any class of the Capital Stock of, or other equity interests in, such Person outstanding on or after the Effective Date (or any options or warrants issued by such Person with respect to its Capital Stock or other equity interests). Without limiting the foregoing, “Dividends” with respect to any Person shall also include all payments made or required to be made (other than common equity of such Person) by such Person with respect to any stock appreciation rights, plans, equity incentive or achievement plans or any similar plans or setting aside of any funds for the foregoing purposes. 

“Dollars” and the sign “$” shall each mean lawful money of the United States. 

“Domestic Subsidiary” shall mean, as to any Person, each Subsidiary of such Person that is organized under the laws of the United States, any state thereof or the District of Columbia. 

“Drawing” shall have the meaning provided in Section 3.05(b). 

“Effective Date” shall have the meaning provided in Section 14.10. 

“Eligible Transferee” shall mean and include a commercial bank, an insurance company, a finance company, a financial institution, any fund that invests in loans or any other “accredited investor” (as defined in Regulation D of the Securities Act). 

“Environmental Claim” shall mean any written claim, action, suit, cause of action or notice by any person or entity alleging potential liability arising out of, based on or resulting  from (a) the Release into the environment, of any Hazardous Material or (b) circumstances forming the basis of any violation, or alleged violation, of any Environmental Law. 

“Environmental Law” shall mean all applicable foreign, federal, state and local laws and regulations having the force and effect of law relating to the protection of the natural environment or imposing liability or standards of conduct concerning the use, handling, storage, or management of any Hazardous Material, each as in effect and as amended through the Effective Date. 

“ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended from time to time, and the regulations promulgated and rulings issued thereunder. Section references to ERISA are to ERISA, as in effect at the date of this Agreement and any subsequent provisions of ERISA, amendatory thereof, supplemental thereto or substituted therefor. 

“ERISA Affiliate” shall mean each person (as defined in Section 3(9) of ERISA) which together with the Borrower or a Subsidiary of the Borrower would be deemed to be a “single employer” within the meaning of Section 414(b), (c), (m) or (o) of the Code. 

“Eurodollar Loans” shall mean each Revolving Loan designated as such by the Borrower at the time of the incurrence thereof or conversion thereto. 

“Eurodollar Rate” shall mean with respect to each Interest Period for a Revolving Loan, (a) the offered rate (rounded upward to the nearest 1/100 of one percent) for deposits of Dollars for a period equivalent to such period at or about 11:00 A.M. (London time) on the second Business Day before the first day of such period as is displayed on Telerate page 3750 (British Bankers’ Association Interest Settlement Rates) (or such other page as may replace such page 3750 on such system or on any other system of the information vendor for the time being designated by the British Bankers’ Association to calculate the BBA Interest Settlement Rate (as defined in the British Bankers’ Association’s Recommended Terms and Conditions dated August 1985)), provided that if on such date no such rate is so displayed or, in the case of the initial Interest Period in respect of a Revolving Loan, if less than three Business Days’ prior notice of such Revolving Loan shall have been delivered to the Administrative Agent, the Eurodollar Rate for such period shall be the rate quoted to the Administrative Agent as the offered rate for deposits of Dollars in an amount approximately equal to the amount in relation to which the Eurodollar Rate is to be determined for a period equivalent to such applicable Interest Period by prime banks in the London interbank Eurodollar market at or about 11:00 A.M. (London time) on the second Business Day before the first day of such period, in each case divided (and rounded upward to the nearest 1/100 of 1%) by (b) a percentage equal to 100% minus the then stated maximum rate of all reserve requirements (including, without limitation, any marginal, emergency, supplemental, special or other reserves required by applicable law) applicable to any member bank of the Federal Reserve System in respect of Eurocurrency funding or liabilities as defined in Regulation D (or any successor category of liabilities under Regulation D). 

“Event of Default” shall have the meaning provided in Section 11. 

“Excluded Taxes” shall have the meaning provided in Section 5.04(a). 

“Existing Indebtedness” shall have the meaning provided in Section 8.18. 

“Facing Fee” shall have the meaning provided in Section 4.01(c). 

“Federal Funds Rate” shall mean, for any day, an interest rate per annum equal to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers on such day, as published for such day (or, if such day is not a Business Day, for the immediately preceding Business Day) by the Federal Reserve Bank of New York, or, if such rate is not so published for any day which is a Business Day, the average of the quotations at approximately 11:00 A.M. (New York time) on such day on such transactions received by the Administrative Agent from three Federal funds brokers of recognized standing selected by the Administrative Agent in its sole discretion. 

“Fees” shall mean all amounts payable pursuant to or referred to in Section 4.01. 

“Financial Covenants” shall collectively mean the financial covenants as set forth in Sections 10.08, 10.09 and 10.10. 

“Foreign Lender” shall mean any Lender that is not a United States person (as such term is defined in Section 7701(a)(30) of the Code). 

“Foreign Pension Plan” shall mean any plan, fund (including, without limitation, any superannuation fund) or other similar program established or maintained outside the United States of America by the Borrower or any one or more of its Subsidiaries primarily for the benefit of employees of the Borrower or such Subsidiaries residing outside the United States of America, which plan, fund or other similar program provides, or results in, retirement income, a deferral of income in contemplation of retirement or payments to be made upon termination of employment, and which plan is not subject to ERISA or the Code. 

“Foreign Subsidiary” shall mean, as to any Person, each Subsidiary of such Person which is not a Domestic Subsidiary. 

“Free Liquidity” shall mean at any time the sum of (x) the unrestricted cash and Cash Equivalents held by the Borrower and its Subsidiaries at such time and (y) the Total Unutilized Revolving Loan Commitment at such time. 

“GAAP” shall mean generally accepted accounting principles in the United States consistently applied. 

“Guaranteed Creditors” shall mean and include each of the Administrative Agent, the Collateral Agent, each Issuing Lender and the Lenders. 

“Guaranteed Obligations” shall mean (i) the full and prompt payment when due (whether at the stated maturity, by acceleration or otherwise) of each Obligation of the Borrower (including Obligations which, but for the automatic stay under Section 362(a) of the Bankruptcy Code, would become due and any interest accruing after the commencement of any bankruptcy, insolvency, receivership or similar proceeding at the rate provided for herein, whether or not such interest is an allowed claim in any such proceeding) and (ii) the full and prompt payment when due (whether at the stated maturity, by acceleration or otherwise) of all obligations (including obligations which, but for the automatic stay under Section 362(a) of the Bankruptcy Code, would become due), liabilities and indebtedness (including any interest accruing after the commencement of any bankruptcy, insolvency, receivership or similar proceeding at the rate provided for herein, whether or not such interest is an allowed claim in any such proceeding) of  the Borrower owing under any Interest Rate Protection Agreement or any Other Hedging Agreement entered into by the Borrower with any Lender or any affiliate thereof (even if such Lender subsequently ceases to be a Lender under this Agreement for any reason) so long as such Lender or affiliate participates in such Interest Rate Protection Agreement or such Other Hedging Agreement and their subsequent assigns, if any, whether now in existence or hereafter arising, and the due performance and compliance with all terms, conditions and agreements contained therein. 

“Guarantor” shall mean, collectively, Trico Marine Assets, Inc., Trico Marine Operators, Inc. and any Domestic Subsidiary which owns directly or indirectly any interest in said Persons. 

“Guaranty” shall mean the Guaranty set forth in Section 13 hereof. 

“Hazardous Materials” shall mean (a) any petroleum or petroleum products, radioactive materials, asbestos in any form that is or could become friable, ureaformaldehyde foam insulation, transformers or other equipment that contain dielectric fluid containing levels of polychlorinated biphenyls, and radon gas, (b) any chemicals, materials or substances defined as or included in the definition of “hazardous substances,” “hazardous waste,” “hazardous materials,” “extremely hazardous substances,” “restricted hazardous waste,” “toxic substances,” “toxic pollutants,” “contaminants,” or “pollutants,” or words of similar import, under any applicable Environmental Law, and (c) any other chemical, material or substance, exposure to which is prohibited, limited or regulated by any governmental authority under Environmental Laws. 

“Indebtedness” shall mean, as to any Person, without duplication, (i) all indebtedness (including principal, interest, fees and charges) of such Person for borrowed money or for the deferred purchase price of property or services, (ii) the maximum amount available to be drawn under all letters of credit, bankers’ acceptances and similar obligations issued for the account of such Person and all unpaid drawings in respect of such letters of credit, bankers’ acceptances and similar obligations, (iii) all Indebtedness of the types described in clause (i), (ii), (iv), (v), (vi) or (vii) of this definition secured by any Lien on any property owned by such Person, whether or not such Indebtedness has been assumed by such Person (provided that, if the Person has not assumed or otherwise become liable in respect of such Indebtedness, such Indebtedness shall be deemed to be in an amount equal to the fair market value of the property to which such Lien relates as determined in good faith by such Person), (iv) the aggregate amount of all Capitalized Lease Obligations of such Person, (v) all obligations of such Person to pay a specified purchase price for goods or services, whether or not delivered or accepted, i.e., take-orpay and similar obligations, (vi) all Contingent Obligations of such Person, and (vii) all obligations under any Interest Rate Protection Agreement, any Other Hedging Agreement or under any similar type of agreement. Notwithstanding the foregoing, Indebtedness shall not include (i) trade payables and accrued expenses incurred by any Person in accordance with customary practices and in the ordinary course of business of such Person or (ii) milestone payments and similar obligations incurred by any Person under any vessel purchase contract. 

“Intercompany Loan” shall have the meaning provided in Section 10.05(vii). 

“Intercompany Subordination Agreement” shall mean the Intercompany Subordination Agreement substantially in the form of Exhibit K (appropriately completed, and as the same may be amended, modified or supplemented from time to time in accordance with the terms hereof and thereof). 

“Interest Determination Date” shall mean, with respect to any Eurodollar Loan, the second Business Day prior to the commencement of any Interest Period relating to such Eurodollar Loan. 

“Interest Period” shall have the meaning provided in Section 2.09. 

“Interest Rate Protection Agreement” shall mean any interest rate swap agreement, interest rate cap agreement, interest collar agreement, interest rate hedging agreement or other similar agreement or arrangement. 

“Investments” shall have the meaning provided in Section 10.05. 

“Issuing Lender” shall mean (i) Nordea Bank Norge ASA, Grand Cayman Branch (which, for purposes of this definition, shall include any banking affiliate of Nordea Bank Norge ASA, Grand Cayman Branch) and (ii) any other Lender which at the request of the Borrower and with the consent of the Administrative Agent (which consent shall not be unreasonably withheld) agrees (in such Lender’s sole discretion) to become an Issuing Lender for the purpose of issuing Letters of Credit pursuant to Section 3. 

“Leaseholds” of any Person shall mean all the right, title and interest of such Person as lessee or licensee in, to and under leases or licenses of land, improvements and/or fixtures. 

“Lender” shall mean each financial institution listed on Schedule I, as well as any Person which becomes a “Lender” hereunder pursuant to Section 2.13 or 14.04(b). 

“Lender Default” shall mean (i) the refusal (which has not been retracted) or the failure of a Lender to make available its portion of any Borrowing or to fund its portion of any unreimbursed payment under Section 3.04(c) or (ii) a Lender having notified in writing the Borrower and/or the Administrative Agent that such Lender does not intend to comply with its obligations under Sections 2.01, 2.04 or 3. 

“Letter of Credit” shall have the meaning provided in Section 3.01(a). 

“Letter of Credit Fee” shall have the meaning provided in Section 4.01(b). 

“Letter of Credit Outstandings” shall mean, at any time, the sum of (i) the Stated Amount of all outstanding Letters of Credit and (ii) the aggregate amount of all Unpaid Drawings in respect of all Letters of Credit. 

“Letter of Credit Request” shall have the meaning provided in Section 3.03(a). 

“Lien” shall mean any mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or other), preference, priority or other security agreement of any kind or nature whatsoever (including, without limitation, any conditional sale or other title retention agreement, any financing or similar statement or notice filed under the UCC or any other similar recording or notice statute, and any lease having substantially the same effect as any of the foregoing). 

“Maintenance Capital Expenditures” shall mean Capital Expenditures incurred in connection with the maintenance, and repair of vessels which are owned by any Subsidiary of the Borrower. 

“Margin Stock” shall have the meaning provided in Regulation U. 

“Material Adverse Effect” shall mean a material adverse effect (w) on the rights or remedies of the Lenders, (x) or the ability of the Borrower and its Subsidiaries taken as a whole to perform its or their obligations to the Lenders, (y) on the Transaction or (z) on the property, assets, operations, liabilities or financial condition of the Borrower and its Subsidiaries taken as a whole. 

“Maturity Date” shall mean the third anniversary of the Effective Date. 

“Net Worth” shall mean, as to any Person, the sum of its Capital Stock, capital in excess of par or stated value of shares of its Capital Stock, retained earnings and any other account which, in accordance with GAAP, constitutes stockholders’ equity, but excluding any treasury stock and cumulative foreign translation adjustments. 

“Non-Defaulting Lender” shall mean and include each Lender other than a Defaulting Lender. 

“Notice of Borrowing” shall have the meaning provided in Section 2.03. 

“Notice Office” shall mean the office of the Administrative Agent located at 437 Madison Avenue, New York, New York 10022, or such other office as the Administrative Agent may hereafter designate in writing as such to the other parties hereto. 

“Obligations” shall mean all amounts owing to the Administrative Agent, the Collateral Agent, any Issuing Lender or any Lender pursuant to the terms of this Agreement or any other Credit Document. 

“OPA” shall mean the Oil Pollution Act of 1990, as amended, 33 U.S.C. § 2701 et seq. 

“Other Hedging Agreement” shall mean any foreign exchange contracts, currency swap agreements, commodity agreements or other similar agreements or arrangements designed to protect against the fluctuations in currency or commodity values. 

“Participant” shall have the meaning provided in Section 3.04(a). 

“PATRIOT Act” shall have the meaning provided in Section 14.17. 

“Payment Office” shall mean the office of the Administrative Agent located at 437 Madison Avenue, New York, New York 10022, or such other office as the Administrative Agent may hereafter designate in writing as such to the other parties hereto. 

“Percentage” of any Lender at any time shall mean a fraction (expressed as a percentage) the numerator of which is the Revolving Loan Commitment of such Lender at such time and the denominator of which is the Total Commitment at such time, provided that if the Percentage of any Lender is to be determined after the Total Commitment has been terminated, then the Percentages of such Lender shall be determined immediately prior (and without giving effect) to such termination. 

“Permitted Encumbrance” shall mean easements, rights-of-way, restrictions, encroachments, exceptions to title and other similar charges or encumbrances on any property of the Borrower or any of its Subsidiaries arising in the ordinary course of business which do not materially detract from the value of such. 

“Permitted Liens” shall have the meaning provided in Section 10.01. 

“Person” shall mean any individual, partnership, joint venture, firm, corporation, association, trust or other enterprise or any government or political subdivision or any agency, department or instrumentality thereof. 

“Plan” shall mean any pension plan as defined in Section 3(2) of ERISA, excluding any pension plan that is not subject to Title I or Title IV of ERISA, which is maintained or contributed to by (or to which there is an obligation to contribute of) the Borrower or a Subsidiary of the Borrower or any ERISA Affiliate, and each such plan for the five-year period immediately following the latest date on which the Borrower, or a Subsidiary of the 

Borrower or any ERISA Affiliate maintained, contributed to or had an obligation to contribute to such plan. 

“Pledge Agreement” shall have the meaning provided in Section 6.06. 

“Pledge Agreement Collateral” shall mean all “Collateral” as defined in the Pledge Agreement. 

“Prime Rate” shall mean the rate which the Administrative Agent announces from time to time as its prime lending rate, the Prime Rate to change when and as such prime lending rate changes. The Prime Rate is a reference rate and does not necessarily represent the lowest or best rate actually charged to any customer. The Administrative Agent may make commercial loans or other loans at rates of interest at, above or below the Prime Rate. 

“Projections” shall mean the detailed projected consolidated financial statements of the Borrower and its Subsidiaries for the three fiscal years ended after the Effective Date attached hereto as Schedule X. 

“Qualified Preferred Interests” shall mean any preferred stock of the Borrower so long as the terms of any such preferred stock (i) do not contain any mandatory put, redemption, repayment, sinking fund or other similar provision occurring prior to one year after the Maturity Date, (ii) do not require the cash payment of dividends, (iii) do not contain any covenants other than financial reporting requirements and (iv) do not grant the holder thereof any voting rights except for voting rights on fundamental matters such as mergers, consolidations, sales or all or substantially all of the assets of the issuer thereof, or liquidations involving the issuer thereof. 

“Quarterly Payment Date” shall mean the last Business Day of each March, June, September and December occurring after the Effective Date, commencing on March 31, 2008. 

“Real Property” of any Person shall mean all the right, title and interest of such Person in and to land, improvements and fixtures, including Leaseholds. 

“Register” shall have the meaning provided in Section 14.15. 

“Regulation D” shall mean Regulation D of the Board of Governors of the Federal Reserve System as from time to time in effect and any successor to all or a portion thereof establishing reserve requirements. 

“Regulation U” shall mean Regulation U of the Board of Governors of the Federal Reserve System as from time to time in effect and any successor to all or a portion thereof. 

“Regulation X” shall mean Regulation X of the Board of Governors of the Federal Reserve System as from time to time in effect and any successor to all or a portion thereof. 

“Release” shall mean actively or passively disposing, discharging, injecting, spilling, pumping, leaking, leaching, dumping, emitting, escaping, emptying, pouring, seeping, migrating or the like, into or upon any land or water or air, or otherwise entering into the environment. 

“Replaced Lender” shall have the meaning provided in Section 2.13. 

“Replacement Lender” shall have the meaning provided in Section 2.13. 

“Required Lenders” shall mean Non-Defaulting Lenders the sum of whose outstanding Revolving Loan Commitments (or after the termination thereof, outstanding Revolving Loans and Percentages of Letter of Credit Outstandings) represent an amount greater than 66 2/3% of the sum of the Total Commitment less the Revolving Loan Commitments of all Defaulting Lenders (or after the termination thereof, the sum of then total outstanding Revolving Loans of Non-Defaulting Lenders and the aggregate Percentages of all Non-Defaulting Lenders of the total Letter of Credit Outstandings at such time). 

“Returns” shall have the meaning provided in Section 8.09. 

“Revolving Loan” shall have the meaning provided in Section 2.01. 

“Revolving Loan Commitment” shall mean, for each Lender, the amount set forth opposite such Lender’s name in Schedule I hereto directly below the column entitled “Revolving Loan Commitment,” as same may be (x) reduced from time to time pursuant to Sections 4.02 and/or 11 or (y) adjusted from time to time as a result of assignments to or from such Lender pursuant to Section 2.13 or 14.04(b). 

“Revolving Note” shall have the meaning provided in Section 2.05(a). 

“SEC” shall mean the Securities and Exchange Commission or any successor thereto. 

“Section 5.04(b)(ii) Certificate” shall have the meaning provided in Section 5.04(b)(ii). 

“Secured Creditors” shall have the meaning assigned that term in the Security Documents. 

“Securities Act” shall mean the Securities Act of 1933, as amended. 

“Security Documents” shall mean the Pledge Agreement and each additional security document delivered pursuant to Section 9.11. 

“Senior Notes” shall mean the 3.00% Senior Convertible Debentures of the Borrower, due 2027, dated February 7, 2007. 

“Stated Amount” of each Letter of Credit shall mean, at any time, the maximum amount available to be drawn thereunder (in each case determined without regard to whether any conditions to drawing could then be met). 

“Subsidiary” shall mean, as to any Person, (i) any corporation more than 50% of whose stock of any class or classes having by the terms thereof ordinary voting power to elect a majority of the directors of such corporation (irrespective of whether or not at the time stock of any class or classes of such corporation shall have or might have voting power by reason of the happening of any contingency) is at the time owned by such Person and/or one or more Subsidiaries of such Person and (ii) any partnership, limited liability company, association, joint venture or other entity in which such Person and/or one or more Subsidiaries of such Person has more than a 50% equity interest at the time. 

“Taxes” shall have the meaning provided in Section 5.04. 

“Test Period” shall mean each period of four consecutive fiscal quarters then last ended, in each case taken as one accounting period. 

“Total Commitment” shall mean, at any time, the sum of the Revolving Loan Commitments of each of the Lenders. 

“Total Unutilized Revolving Loan Commitment” shall mean, at any time, an amount equal to the remainder of the then Total Commitment, less the aggregate principal amount of Revolving Loans then outstanding at such time less the Letter of Credit Outstandings at such time. 

“Transaction” shall mean, collectively, (i) the entering into of the Credit Documents and (ii) the payment of fees and expenses in connection with the foregoing. 

“Trico Marine Cayman Intercompany Loan” shall mean the loan in the original principal amount of $33,486,076.35 made by Trico Marine Cayman, L.P., acting through its general partner, Trico Holdco LLC, to Trico Supply pursuant to that certain Loan Agreement, dated as of November 8, 2007. 

“Trico Subsea AS” shall mean Trico Subsea AS, which is a wholly-owned subsidiary of Trico Supply. 

“Trico Subsea AS Credit Agreement” shall mean the certain credit agreement among Trico Subsea AS, Trico Supply, the lenders party thereto and Nordea Bank Finland Plc, as Administrative Agent, as amended, restated, supplemented or otherwise modified from time to time. 

“Trico Supply” shall mean Trico Supply AS (Norway). 

“Trico Supply Intercompany Loan” shall mean the loan from Trico Marine Operators, Inc. to Trico Supply in the initial principal amount of $194,000,000 pursuant to the Trico Supply Intercompany Loan Documentation. 

“Trico Supply Intercompany Loan Documentation” shall mean that certain promissory note dated November 8, 2007 between Trico Supply and Trico Marine Operators, Inc. 

“UCC” shall mean the Uniform Commercial Code as from time to time in effect in the relevant jurisdiction. 

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

“Unpaid Drawing” shall have the meaning provided in Section 3.05(a). 

“Wholly-Owned Foreign Subsidiary” shall mean, as to any Person, any Wholly-Owned Subsidiary of such Person that is also a Foreign Subsidiary of such Person. 

“Wholly-Owned Subsidiary” shall mean, as to any Person, (i) any corporation 100% of whose Capital Stock (other than director’s qualifying shares and/or other nominal amounts of shares required to be held other than by such Person under applicable law) is at the time owned by such Person and/or one or more Wholly-Owned Subsidiaries of such Person and  (ii) any partnership, limited liability company, association, joint venture or other entity in which such Person and/or one or more Wholly-Owned Subsidiaries of such Person has a 100% equity interest at such time. Unless otherwise indicated herein, or the context otherwise requires, all references herein to any Wholly-Owned Subsidiary or Wholly-Owned Subsidiaries shall mean and be deemed to be references to a Wholly-Owned Subsidiary or Wholly-Owned Subsidiaries, as the case may be, of the Borrower. 

ARTICLE II

The Credits

SECTION 2. Amount and Terms of Credit Facility.

2.01 Revolving Loan Commitments. Subject to and upon the terms and conditions set forth herein, each Lender severally agrees, at any time and from time to time on or after the Effective Date and prior to the Maturity Date, to make a revolving loan or revolving loans (each, a “Revolving Loan” and, collectively, the “Revolving Loans”) to the Borrower, which Revolving Loans (i) shall be denominated in Dollars, (ii) shall, at the option of the Borrower, be incurred and maintained as, and/or converted into, Base Rate Loans or Eurodollar Loans, (iii) may be repaid and reborrowed in accordance with the provisions hereof, and (iv) shall not exceed for any Lender at any time outstanding the aggregate principal amount which, when added to the product of (x) such Lender’s Percentage and (y) the sum, without duplication, of (i) the aggregate amount of all outstanding Revolving Loans and (ii) the aggregate amount of all Letter of Credit Outstandings (exclusive of Unpaid Drawings which are repaid with the proceeds of, and simultaneously with the incurrence of, the respective incurrence of Revolving Loans) at such time, equals the Revolving Loan Commitment of such Lender at such time. 

2.02 Minimum Amount of Each Borrowing; Limitation on Number of Borrowings. The aggregate principal amount of each Borrowing shall not be less than $2,500,000. More than one Borrowing may occur on the same date, but at no time shall there be outstanding more than eight Borrowings of Eurodollar Loans. 

2.03 Notice of Borrowing. Whenever the Borrower desires to incur (x) Eurodollar Loans hereunder, the Borrower shall give the Administrative Agent at the Notice Office at least three Business Days’ prior notice of each Eurodollar Loan to be incurred hereunder and (y) Base Rate Loans hereunder, the Borrower shall give the Administrative Agent at the Notice Office at least two Business Days’ prior notice of each Base Rate Loan to be incurred hereunder, provided that (in each case) any such notice shall be deemed to have been given on a certain day only if given before 11:00 A.M. (New York City time) on such day. Each such notice (each, a “Notice of Borrowing”), except as otherwise expressly provided in Section 2.10, shall be irrevocable and shall be given by the Borrower in the form of Exhibit A-1, appropriately completed to specify: (i) the aggregate principal amount of the Revolving Loans to be incurred pursuant to such Borrowing, (ii) the date of such Borrowing (which shall be a Business Day) and (iii) whether the Revolving Loans being incurred pursuant to such Borrowing are to be initially maintained as Base Rate Loans or, to the extent permitted hereunder, Eurodollar Loans and, if Eurodollar Loans, the initial Interest Period to be applicable thereto. The Administrative Agent shall promptly give each Lender notice of such proposed Borrowing, of such Lender’s proportionate share thereof and of the other matters required by the immediately preceding sentence to be specified in the Notice of Borrowing. Without in any way limiting the obligation of the Borrower to confirm in writing any telephonic notice of any Borrowing, the Administrative Agent may act without liability upon the basis of telephonic notice of such Borrowing, believed by the Administrative Agent in good faith to be from the president, the chief executive officer, the chief financial officer, chief accounting officer, chief administrative officer, the treasurer or the controller of the Borrower (or any other officer of the Borrower designated in writing to the Administrative Agent by the Borrower as being authorized to give such notices under this Agreement) prior to receipt of written confirmation. In each such case, the Borrower hereby waives the right to dispute the Administrative Agent’s record of the terms of such telephonic notice of such Borrowing, absent manifest error. 

2.04 Disbursement of Funds. No later than 12:00 Noon (New York time) on the date specified in each Notice of Borrowing, each Lender will make available its pro rata portion of each such Borrowing requested to be made on such date. All such amounts shall be made available in Dollars and in immediately available funds at the Payment Office and the Administrative Agent will make available to the Borrower (prior to 1:00 p.m. (New York time) on such day to the extent of funds actually received by the Administrative Agent prior to 12:00 Noon (New York time) on such day) at the Payment Office, in the account specified in the applicable Notice of Borrowing, the aggregate of the amounts so made available by the Lenders. Unless the Administrative Agent shall have been notified by any Lender prior to the date of Borrowing that such Lender does not intend to make available to the Administrative Agent such Lender’s portion of any Borrowing to be made on such date, the Administrative Agent may assume that such Lender has made such amount available to the Administrative Agent on such date of Borrowing and the Administrative Agent may (but shall not be obligated to), in reliance upon such assumption, make available to the Borrower a corresponding amount. If the Administrative Agent makes such corresponding amount available to the Borrower but such corresponding amount is not in fact made available to the Administrative Agent by such Lender, the Administrative Agent shall be entitled to recover such corresponding amount on demand from such Lender. If such Lender does not pay such corresponding amount forthwith upon the Administrative Agent’s demand therefor, the Administrative Agent shall promptly notify the Borrower and the Borrower shall immediately pay such corresponding amount to the Administrative Agent. The Administrative Agent also shall be entitled to recover on demand from such Lender or the Borrower, as the case may be, interest on such corresponding amount in respect of each day from the date such corresponding amount was made available by the Administrative Agent to the Borrower until the date such corresponding amount is recovered by the Administrative Agent, at a rate per annum equal to (i) if recovered from such Lender, at the overnight Federal Funds Rate for the first three days and at the interest rate otherwise applicable to such Revolving Loans for each day thereafter and (ii) if recovered from the Borrower, at the rate of interest applicable to the respective Borrowing, as determined pursuant to Section 2.08. Nothing in this Section 2.04 shall be deemed to relieve any Lender from its obligation to make Revolving Loans hereunder or to prejudice any rights which the Borrower may have against any Lender as a result of any failure by such Lender to make Revolving Loans hereunder. 

2.05 Revolving Notes. (a) The Borrower’s obligation to pay the principal of, and interest on, the Revolving Loans made by each Lender shall be evidenced in the Register maintained by the Administrative Agent pursuant to Section 14.15 and shall, if requested by such Lender as provided below, also be evidenced by a promissory note duly executed and delivered by the Borrower substantially in the form of Exhibit B, with blanks appropriately completed in conformity herewith (each a “Revolving Note” and, collectively, the “Revolving Notes”).

 

(b) Each Revolving Note shall (i) be executed by the Borrower, (ii) be payable to the Lender or its registered assigns and be dated the Effective Date (or, in the case of Revolving Notes issued after the Effective Date, be dated the date of the issuance thereof), (iii) be in a stated principal amount equal to the Revolving Loan Commitment of such Lender (or, if issued after the termination thereof, be in a stated principal amount equal to the outstanding Revolving Loans of such Lender at such time) and be payable in the principal amount of the Revolving Loans evidenced thereby, (iv) mature on the Maturity Date, (v) bear interest as provided in Section 2.08, (vi) be subject to voluntary prepayment and mandatory repayment as provided in Sections 5.01 and 5.02 and (vii) be entitled to the benefits of this Agreement and the other Credit Documents.

 

(c) Each Lender will note on its internal records the amount of each Revolving Loan made by it and each payment in respect thereof and will, prior to any transfer of any of its Revolving Notes, endorse on the reverse side thereof the outstanding principal amount of Revolving Loans evidenced thereby. Failure to make any such notation or any error in any such notation or endorsement shall not affect the Borrower’s obligations in respect of such Revolving Loans.

 

(d) Notwithstanding anything to the contrary contained above in this Section 2.05 or elsewhere in this Agreement, Revolving Notes shall only be delivered to Lenders which at any time specifically request the delivery of such Revolving Notes. No failure of any Lender to request or obtain a Revolving Note evidencing its Revolving Loans to the Borrower shall affect or in any manner impair the obligations of the Borrower to pay the Revolving Loans (and all related Obligations) incurred by the Borrower which would otherwise be evidenced thereby in accordance with the requirements of this Agreement, and shall not in any way affect the security or guaranties therefor provided pursuant to the various Credit Documents. Any Lender which does not have a Revolving Note evidencing its outstanding Revolving Loans shall in no event be required to make the notations otherwise described in preceding clause (c). At any time when any Lender requests the delivery of a Revolving Note to evidence any of its Revolving Loans, the Borrower shall (at its expense) promptly execute and deliver to the respective Lender the requested Revolving Note in the appropriate amount or amounts to evidence such Revolving Loans. 

2.06 Conversions and Continuations. The Borrower shall have the option, on any Business Day, (a) with respect to any Borrowing of Eurodollar Loans, to continue the Interest Period currently applicable to such Borrowing and (b) to convert all or a portion equal to at least the minimum borrowing amount of the outstanding principal amount of Revolving Loans made pursuant to one or more Borrowings (so long as of the same tranche) of one or more types of Revolving Loans into a Borrowing (of the same tranche) of another type of Revolving Loan, provided that, (i) except as otherwise provided in Section 2.10(b), Eurodollar Loans may be converted into Base Rate Loans only on the last day of an Interest Period applicable to the Revolving Loans being converted and no such partial conversion of Eurodollar Loans shall reduce the outstanding principal amount of such Eurodollar Loans made pursuant to a single Borrowing to less than the minimum borrowing amount applicable thereto, (ii) Base Rate Loans may only be converted into Eurodollar Loans if no Default or Event of Default is in existence on the date of the conversion and (iii) no conversion pursuant to this Section 2.06 shall result in a greater number of Borrowings of Eurodollar Loans than is permitted under Section 2.02. Each such conversion shall be effected by the Borrower by giving the Administrative Agent at the Notice Office prior to 11:00 A.M. (New York City time) at least (x) in the case of conversions of Base Rate Loans into Eurodollar Loans or continuation of Eurodollar Loans, three Business Days’ prior notice and (y) in the case of conversions of Eurodollar Loans into Base Rate Loans, three Business Days’ prior notice (each, a “Notice of Conversion/Continuation”), in each case in the form of Exhibit A-2, appropriately completed to specify the Revolving Loans to be so converted, the Borrowing or Borrowings pursuant to which such Revolving Loans were incurred and, if to be converted into Eurodollar Loans, the Interest Period to be initially applicable thereto. The Administrative Agent shall give each Lender prompt notice of any such proposed conversion or continuation affecting any of its Revolving Loans.

 

2.07 Pro Rata Borrowings. All Borrowings of Revolving Loans under this Agreement shall be incurred from the Lenders pro rata on the basis of their Revolving Loan Commitments. It is understood that no Lender shall be responsible for any default by any other Lender of its obligation to make Revolving Loans hereunder and that each Lender shall be obligated to make the Revolving Loans provided to be made by it hereunder, regardless of the failure of any other Lender to make its Revolving Loans hereunder.

 

2.08 Interest. (a) The Borrower agrees to pay interest in respect of the unpaid principal amount of each Base Rate Loan from the date of Borrowing thereof until the earlier of (i) the maturity thereof (whether by acceleration or otherwise) and (ii) the conversion of such Base Rate Loan to a Eurodollar Loan pursuant to Section 2.06 or 2.10(b), as applicable, at a rate per annum which shall be equal to the sum of the relevant Applicable Margin plus the Base Rate, each as in effect from time to time.

(b) The Borrower agrees to pay interest in respect of the unpaid principal amount of each Eurodollar Loan from the date of Borrowing thereof until the earlier of (i) the maturity thereof (whether by acceleration or otherwise) and (ii) the conversion of such Eurodollar Loan to a Base Rate Loan pursuant to Section 2.06 or 2.10(b), as applicable, at a rate per annum which shall, during each Interest Period applicable thereto, be equal to the sum of the relevant Applicable Margin as in effect from time to time during such Interest Period plus the Eurodollar Rate for such Interest Period. 

(c) Overdue principal and, to the extent permitted by law, overdue interest in respect of each Revolving Loan and any other overdue amount payable hereunder shall, in each case, bear interest at a rate per annum equal to 2% per annum in excess of the rate then borne by such Revolving Loans (or, if such overdue amount is not interest or principal in respect of the Revolving Loans, 2% per annum in excess of the rates then applicable to Base Rate Loans at such time). Interest that accrues under this Section 2.08(c) shall be payable on demand. 

(d) Accrued (and theretofore unpaid) interest in respect of Revolving Loans shall be payable on the last day of each Interest Period applicable thereto and, in the case of an Interest Period in excess of three months, on each date occurring at three month intervals after the first day of such Interest Period, on any repayment or prepayment (on the amount repaid or prepaid), at maturity (whether by acceleration or otherwise) and, after such maturity, on demand. 

(e) Accrued (and therefore unpaid) interest in respect of Base Rate Loans shall be payable quarterly in arrears on the last Business Day of each calendar quarter.

 

(f) Upon each Interest Determination Date, the Administrative Agent shall determine the Eurodollar Rate or Base Rate for each Interest Period applicable to the Revolving Loans to be made pursuant to the applicable Borrowing and shall promptly notify the Borrower and the Lenders thereof. Each such determination shall, absent manifest error, be final and conclusive and binding on all parties hereto. 

(g) All calculations of interest shall be based on a 360-day year and actual days elapsed, provided that all calculations of interest on Base Rate Loans based on the Prime Lending Rate shall be based on a 365/6-day year and actual days elapsed.

 

2.09 Interest Periods. At the time the Borrower gives any Notice of Borrowing in respect of the making of any Eurodollar Loan (in the case of the initial Interest Period applicable thereto) or prior to 11:00 a.m. (New York time) on the third Business Day prior to the expiration of an Interest Period applicable to such Eurodollar Loan (in the case of any subsequent Interest Period), the Borrower shall have the right to elect, by giving the Administrative Agent notice thereof, the interest period (each an “Interest Period”) applicable to such Eurodollar Loan, which Interest Period shall, at the option of the Borrower, be a one, three or six-month period (it being understood, however, that during the one month period preceding the Maturity Date, the Borrower, with the consent of the Administrative Agent, may select an Interest Period of less than one month so long as such Interest Period ends no later than the Maturity Date); provided that: 

(i) all Eurodollar Loans comprising a Borrowing shall at all times have the same Interest Period;

(ii) the initial Interest Period for any Eurodollar Loan shall commence on the date of Borrowing of such Revolving Loan (if initially borrowed as a Eurodollar Loan) or the date such Revolving Loan is converted from a Base Rate Loan to a Eurodollar Loan pursuant to Section 2.06, as applicable, and each Interest Period occurring thereafter in respect of such Eurodollar Loan shall commence on the day immediately following the day on which the immediately preceding Interest Period applicable thereto expires;

(iii) if any Interest Period relating to a Eurodollar Loan begins on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period, such Interest Period shall end on the last Business Day of such calendar month;

(iv) if any Interest Period would otherwise expire on a day which is not a Business Day, such Interest Period shall expire on the first succeeding Business Day; provided, however, that if any Interest Period for a Eurodollar Loan would otherwise expire on a day which is not a Business Day but is a day of the month after which no further Business Day occurs in such month, such Interest Period shall expire on the immediately preceding Business Day;

 

(v) no Interest Period longer than one month may be selected at any time when an Event of Default is then in existence;

 

(vi) no Interest Period in respect of any Borrowing shall be selected which extends beyond the Maturity Date; and

 

(vii) the selection of Interest Periods shall be subject to the provisions of Section 2.02.

 

If by 11:00 a.m. (New York time) on the third Business Day preceding the expiration of any Interest Period applicable to a Borrowing of Eurodollar Loans, the Borrower has failed to elect a new Interest Period to be applicable to such Revolving Loans as provided above, the Borrower shall be deemed to have elected a one month Interest Period to be applicable to such Revolving Loans effective as of the expiration date of such current Interest Period.

 

2.10 Increased Costs, Illegality, etc. (a) In the event that any Lender shall have determined (which determination shall, absent manifest error, be final and conclusive and binding upon all parties hereto but, with respect to clause (i) below, may be made only by the Administrative Agent): 

(i) on any Interest Determination Date that, by reason of any changes arising after the date of this Agreement affecting the applicable Eurodollar market, adequate and fair means do not exist for ascertaining the applicable interest rate on the basis provided for in the definition of Eurodollar Rate; or 

(ii) at any time, that such Lender shall incur increased costs or reductions in the amounts received or receivable hereunder with respect to any Eurodollar Loan because of (x) any change since the Effective Date in any applicable law or governmental rule, regulation, order, guideline or request (whether or not having the force of law) or in the interpretation or administration thereof and including the introduction of any new law or governmental rule, regulation, order, guideline or request, such as but not limited to: (A) a change in the basis of taxation of payment to any Lender of the principal of or interest on such Eurodollar Loan or any other amounts payable hereunder (except for the imposition of, or any change in, the rate of any Excluded Tax), but without duplication of any increased costs with respect to Taxes which are addressed in Section 5.04, or (B) a change in official reserve requirements but, in all events, excluding reserves required under Regulation D to the extent included in the computation of the Eurodollar Rate, and/or (y) other circumstances arising since the Effective Date affecting such Lender or the interbank Eurodollar market or the position of such Lender in such market; or 

(iii) at any time, that the making or continuance of any Eurodollar Loan has been made (x) unlawful by any law or governmental rule, regulation or order, (y) impossible by compliance by any Lender in good faith with any governmental request (whether or not having force of law) and/or (z) impracticable as a result of a contingency occurring after the Effective Date which materially and adversely affects the Eurodollar market;

 

then, and in any such event, such Lender (or the Administrative Agent, in the case of clause (i) above) shall promptly give notice (by telephone confirmed in writing) to the Borrower and, except in the case of clause (i) above, to the Administrative Agent of such determination (which notice the Administrative Agent shall promptly transmit to each of the other Lenders). Thereafter (x) in the case of clause (i) above, Eurodollar Loans shall no longer be available until such time as the Administrative Agent notifies the Borrower and the Lenders that the circumstances giving rise to such notice by the Administrative Agent no longer exist, and any Notice of Borrowing or Notice of Conversion/Continuation given by the Borrower with respect to Eurodollar Loans which have not yet been incurred (including by way of conversion) shall be deemed rescinded by the Borrower, (y) in the case of clause (ii) above, the Borrower agrees to pay to such Lender, upon such Lender’s written request therefor, such additional amounts (in the form of an increased rate of, or a different method of calculating, interest or otherwise as such Lender in its sole discretion shall determine) as shall be required to compensate such Lender for such increased costs or reductions in amounts received or receivable hereunder (a written notice as to the additional amounts owed to such Lender, showing in reasonable detail the basis for the calculation thereof, submitted to the Borrower by such Lender shall, absent manifest error, be final and conclusive and binding on all the parties hereto) and (z) in the case of clause (iii) above, the Borrower shall take one of the actions specified in Section 2.10(b) as promptly as possible and, in any event, within the time period required by law. 

(b) At any time that any Eurodollar Loan is affected by the circumstances described in Section 2.10(a)(ii), the Borrower may, and in the case of a Eurodollar Loan affected by the circumstances described in Section 2.10(a)(iii), the Borrower shall, either (x) if the affected Eurodollar Loan is then being made initially or pursuant to a conversion, cancel such Borrowing by giving the Administrative Agent telephonic notice (confirmed in writing) on the same date that the Borrower was notified by the affected Lender or the Administrative Agent pursuant to Section 2.10(a)(ii) or (iii) or (y) if the affected Eurodollar Loan is then outstanding, upon at least three Business Days’ written notice to the Administrative Agent, require the affected Lender to convert such Eurodollar Loan into a Base Rate Loan, provided that, if more than one Lender is affected at any time, then all affected Lenders must be treated the same pursuant to this Section 2.10(b). 

(c) If any Lender determines that after the Effective Date the introduction or effectiveness of or any change in any applicable law or governmental rule, regulation, order, guideline, directive or request (whether or not having the force of law) concerning capital adequacy, or any change in interpretation or administration thereof by any governmental authority, central bank or comparable agency will have the effect of increasing the amount of capital required or expected to be maintained by such Lender or any corporation controlling such Lender based on the existence of such Lender’s Revolving Loan Commitments hereunder or its obligations hereunder, then the Borrower agrees (to the extent applicable) to pay to such Lender, upon its written demand therefor, such additional amounts as shall be required to compensate such Lender or such other corporation for the increased cost to such Lender or such other corporation or the reduction in the rate of return to such Lender or such other corporation as a result of such increase of capital. In determining such additional amounts, each Lender will act reasonably and in good faith and will use averaging and attribution methods which are reasonable, provided that such Lender’s determination of compensation owing under this Section 2.10(c) shall, absent manifest error, be final and conclusive and binding on all the parties hereto. Each Lender, upon determining that any additional amounts will be payable pursuant to this Section 2.10(c), will give prompt written notice thereof to the Borrower, which notice shall show in reasonable detail the basis for calculation of such additional amounts.

 

2.11 Compensation. The Borrower agrees to compensate each Lender, upon its written request (which request shall set forth in reasonable detail the basis for requesting such compensation), for all reasonable losses, expenses and liabilities (including, without limitation, any such loss, expense or liability incurred by reason of the liquidation or reemployment of deposits or other funds required by such Lender to fund its Eurodollar Loans but excluding loss of anticipated profits) which such Lender may sustain in respect of Eurodollar Loans made to the Borrower: (i) if for any reason (other than a default by such Lender or the Administrative Agent) a Borrowing does not occur on a date specified therefor in a Notice of Borrowing (whether or not withdrawn by the Borrower or deemed withdrawn pursuant to Section 2.10(a)); (ii) if any prepayment or repayment (including any prepayment or repayment made pursuant to Section 2.10(a), Section 5.01, Section 5.02 or as a result of an acceleration of the Eurodollar Loans pursuant to Section 10) of any of its Revolving Loans, or assignment of any of its Revolving Loans pursuant to Section 2.13, occurs on a date which is not the last day of an Interest Period with respect thereto; (iii) if any prepayment of any of its Eurodollar Loans is not made on any date specified in a notice of prepayment given by the Borrower; or (iv) as a consequence of any other default by the Borrower to repay Eurodollar Loans or make payment on any Revolving Note held by such Lender when required by the terms of this Agreement.

 

2.12 Change of Lending Office. Each Lender agrees that upon the occurrence of any event giving rise to the operation of Section 2.10(a)(ii) or (iii), Section 2.10(b), Section 3.06 or Section 5.04 with respect to such Lender, it will, if requested by the Borrower, use reasonable efforts (subject to overall policy considerations of such Lender) to designate another lending office for any Revolving Loans or Letters of Credit affected by such event, provided that such designation is made on such terms that such Lender and its lending office suffer no economic, legal or regulatory disadvantage, with the object of avoiding the consequence of the event giving rise to the operation of such Section. Nothing in this Section 2.12 shall affect or postpone any of the obligations of the Borrower or the rights of any Lender provided in Sections 2.10, 3.06 and 5.04. 

2.13 Replacement of Lenders. If (x) any Lender becomes a Defaulting Lender or otherwise defaults in its obligations to make Revolving Loans or fund Unpaid Drawings, (y) upon the occurrence of any event giving rise to the operation of Section 2.10(a)(ii) or (iii), Section 2.10(b) or Section 5.04 with respect to any Lender which results in such Lender charging to the Borrower increased costs in excess of those being generally charged by the other Lenders, or (z) as provided in Section 14.12(b) in the case of certain refusals by a Lender to consent to certain proposed changes, waivers, discharges or terminations with respect to this Agreement which have been approved by the Required Lenders, the Borrower shall have the right to either replace such Lender (the “Replaced Lender”) with one or more Eligible Transferees, none of whom shall constitute a Defaulting Lender at the time of such replacement (collectively, the “Replacement Lender”) and each of whom shall be required to be reasonably acceptable to the 

Administrative Agent, provided that:

 

(i) at the time of any replacement pursuant to this Section 2.13, the Replacement Lender shall enter into one or more Assignment and Assumption Agreements pursuant to Section 14.04(b) (and with all fees payable pursuant to said Section 14.04(b) to be paid by the Replacement Lender) pursuant to which the Replacement Lender shall acquire all of the commitments and outstanding Revolving Loans of and, in each case all participations in Letters of Credit by, the Replaced Lender and, in connection therewith, shall pay to (x) the Replaced Lender in respect thereof an amount equal to the sum (without duplication) of (I) an amount equal to the principal of, and all accrued interest on, all outstanding Revolving Loans of the Replaced Lender, (II) an amount equal to all Unpaid Drawings that have been funded by (and not reimbursed to) such Replaced Lender, together with all then accrued unpaid interest with respect thereto at such time, and (III) an amount equal to all accrued, but theretofore unpaid, Fees owing to the Replaced Lender pursuant to Section 4.01 and (y) each Issuing Lender an amount equal to such Replaced Lender’s Percentage of any Unpaid Drawing (which at such time remains an Unpaid Drawing) to the extent such amount was not theretofore funded by such Replaced Lender to such Issuing Lender, together with all then accrued and unpaid interest with respect thereto at such time; and

 

(ii) all obligations of the Borrower due and owing to the Replaced Lender at such time (other than those specifically described in clause (i) above in respect of which the assignment purchase price has been, or is concurrently being, paid) shall be paid in full to such Replaced Lender concurrently with such replacement.

 

Upon the execution of the respective Assignment and Assumption Agreement, the payment of amounts referred to in clauses (i) and (ii) above and, if so requested by the Replacement Lender, delivery to the Replacement Lender of the appropriate Revolving Notes executed by the Borrower, the Replacement Lender shall become a Lender hereunder and the Replaced Lender shall cease to constitute a Lender hereunder, except with respect to indemnification provisions under this Agreement (including, without limitation, Sections 2.10, 2.11, 3.06, 5.04, 12.06 and 14.01), which shall survive as to such Replaced Lender. 

SECTION 3. Letters of Credit.

3.01 Letters of Credit. (a) Subject to and upon the terms and conditions set forth herein, the Borrower may request that an Issuing Lender issue, at any time and from time to time on and after the Effective Date and prior to the 30th day prior to the Maturity Date, for the Borrower, an irrevocable standby letter of credit or trade letter of credit, in a form customarily used by such Issuing Lender or in such other form as is reasonably acceptable to such Issuing Lender (each such letter of credit, a “Letter of Credit” and, collectively, the “Letters of Credit”). All Letters of Credit shall be denominated in Dollars and shall be issued on a sight basis only. 

(b) Subject to and upon the terms and conditions set forth herein, each Issuing Lender agrees that it will, at any time and from time to time on and after the Effective Date and prior to the 30th day prior to the Maturity Date, following its receipt of the respective Letter of Credit Request, issue for the Borrower, one or more Letters of Credit as are permitted to remain outstanding hereunder without giving rise to a Default or an Event of Default, provided that no Issuing Lender shall be under any obligation to issue any Letter of Credit of the types described above if at the time of such issuance:

 

(i) any order, judgment or decree of any governmental authority or arbitrator shall purport by its terms to enjoin or restrain such Issuing Lender from issuing such Letter of Credit or any requirement of law applicable to such Issuing Lender or any request or directive (whether or not having the force of law) from any governmental authority with jurisdiction over such Issuing Lender shall prohibit, or request that such Issuing Lender refrain from, the issuance of letters of credit generally or such Letter of Credit in particular or shall impose upon such Issuing Lender with respect to such Letter of Credit any restriction or reserve or capital requirement (for which such Issuing Lender is not otherwise compensated hereunder) not in effect with respect to such Issuing Lender on the date hereof, or any unreimbursed loss, cost or expense which was not applicable or in effect with respect to such Issuing Lender as of the date hereof and which such Issuing Lender reasonably and in good faith deems material to it; or

(ii) such Issuing Lender shall have received from the Borrower, any other Credit Party or the Required Lenders prior to the issuance of such Letter of Credit notice of the type described in the second sentence of Section 3.03(b).

 

(c) Schedule XIII contains a description of letters of credit that were issued for the account of the Borrower prior to the Effective Date and which remain outstanding on the Effective Date (and setting forth, with respect to each such letter of credit, (i) the name of the issuing lender, (ii) the letter of credit number, (iii) the name of the account party, (iv) the stated amount (which shall be in Dollars), (v) the name of the beneficiary and (vi) the expiry date. Each such letter of credit, including any extension or renewal thereof in accordance with the terms thereof and hereof (each, as amended from time to time in accordance with the terms thereof and hereof, an “Existing Letter of Credit”) shall constitute a “Letter of Credit” for all purposes of this Agreement and shall be deemed issued on the Effective Date. 

3.02 Maximum Letter of Credit Outstandings; Maturities. Notwithstanding anything to the contrary contained in this Agreement, (i) no Letter of Credit shall be issued the Stated Amount of which, when added to the Letter of Credit Outstandings (exclusive of Unpaid Drawings which are repaid on the date of, and prior to the issuance of, the respective Letter of Credit) at such time would exceed either (x) $10,000,000 or (y) when added to the aggregate principal amount of all Revolving Loans then outstanding, an amount equal to the Total Commitment at such time, and (ii) each Letter of Credit shall by its terms terminate on or before the earlier of (A) the date which occurs 12 months after the date of the issuance thereof (although any such Letter of Credit shall be extendible for successive periods of up to 12 months, but, in each case, not beyond the tenth Business Day prior to the Maturity Date, on terms acceptable to the respective Issuing Lender) and (B) ten Business Days prior to the Maturity Date.

 

3.03 Letter of Credit Requests; Minimum Stated Amount. (a) Whenever the Borrower desires that a Letter of Credit be issued, the Borrower shall give the Administrative Agent and the respective Issuing Lender at least five Business Days’ (or such shorter period as is acceptable to such Issuing Lender) written notice thereof (including by way of facsimile). Each notice shall be in the form of Exhibit C, appropriately completed (each a “Letter of Credit Request”).

 

(b) The making of each Letter of Credit Request shall be deemed to be a representation and warranty by the Borrower to the Lenders that such Letter of Credit may be issued in accordance with, and will not violate the requirements of, Section 3.02. Unless the respective Issuing Lender has received notice from the Borrower, any other Credit Party or the Required Lenders before it issues a Letter of Credit that one or more of the conditions specified in Section 6 or 7 (as applicable) are not then satisfied, or that the issuance of such Letter of Credit would violate Section 3.02, then such Issuing Lender shall, subject to the terms and conditions of this Agreement, issue the requested Letter of Credit for the account of the Borrower in accordance with such Issuing Lender’s usual and customary practices. Upon the issuance of or modification or amendment to any Letter of Credit, each Issuing Lender shall promptly notify the Borrower and the Administrative Agent, in writing of such issuance, modification or amendment and such notice shall be accompanied by a copy of such Letter of Credit or the respective 

modification or amendment thereto, as the case may be. Promptly after receipt of such notice the Administrative Agent shall notify the Participants, in writing, of such issuance, modification or amendment. Notwithstanding anything to the contrary contained in this Agreement, in the event that a Lender Default exists, no Issuing Lender shall be required to issue any Letter of Credit unless such Issuing Lender has entered into arrangements satisfactory to it and the Borrower to eliminate such Issuing Lender’s risk with respect to the participation in Letters of Credit by the Defaulting Lender or Lenders, including by cash collateralizing such Defaulting Lender’s or Lenders’ Percentage of the Letter of Credit Outstandings.

 

(c) The initial Stated Amount of each Letter of Credit shall not be less than $100,000 or such lesser amount as is acceptable to the respective Issuing Lender.

 

3.04 Letter of Credit Participations. (a) Immediately upon the issuance by an Issuing Lender of any Letter of Credit, such Issuing Lender shall be deemed to have sold and transferred to each Lender, and each such Lender (in its capacity under this Section 3.04, a “Participant”) shall be deemed irrevocably and unconditionally to have purchased and received from such Issuing Lender, without recourse or warranty, an undivided interest and participation, to the extent of such Participant’s Percentage, in such Letter of Credit, each drawing or payment made thereunder and the obligations of the Borrower under this Agreement with respect thereto, and any security therefor or guaranty pertaining thereto. Upon any change in the Revolving Loan Commitments or Percentages of the Lenders pursuant to Section 2.13 or 14.04(b), it is hereby agreed that, with respect to all outstanding Letters of Credit and Unpaid Drawings relating thereto, there shall be an automatic adjustment to the participations pursuant to this Section 3.04 to reflect the new Percentages of the assignor and assignee Lender, as the case may be.

 

(b) In determining whether to pay under any Letter of Credit, no Issuing Lender shall have any obligation relative to the other Lenders other than to confirm that any documents required to be delivered under such Letter of Credit appear to have been delivered and that they appear to substantially comply on their face with the requirements of such Letter of Credit. Any action taken or omitted to be taken by an Issuing Lender under or in connection with any Letter of Credit issued by it shall not create for such Issuing Lender any resulting liability to the Borrower, any other Credit Party, any Lender or any other Person unless such action is taken or omitted to be taken with gross negligence or willful misconduct on the part of such Issuing Lender (as determined by a court of competent jurisdiction in a final and nonappealable decision).

 

(c) In the event that any Issuing Lender makes any payment under any Letter of Credit issued by it and the Borrower shall not have reimbursed such amount in full to such Issuing Lender pursuant to Section 3.05(a), such Issuing Lender shall promptly notify the Administrative Agent, which shall promptly notify each Participant of such failure, and each Participant shall promptly and unconditionally pay to such Issuing Lender the amount of such 

Participant’s Percentage of such unreimbursed payment in Dollars and in same day funds. If the Administrative Agent so notifies, prior to 11:00 a.m. (New York time) on any Business Day, any Participant required to fund a payment under a Letter of Credit, such Participant shall make available to the respective Issuing Lender in Dollars such Participant’s Percentage of the amount of such payment on such Business Day in same day funds. If and to the extent such Participant shall not have so made its Percentage of the amount of such payment available to the respective Issuing Lender, such Participant agrees to pay to such Issuing Lender, forthwith on demand such amount, together with interest thereon, for each day from such date until the date such amount is paid to such Issuing Lender at the overnight Federal Funds Rate for the first three days and at the Base Rate, as in effect from time to time, plus the Applicable Margin as in effect from time to time minus [1%] for each day thereafter. The failure of any Participant to make available to an Issuing Lender its Percentage of any payment under any Letter of Credit issued by such Issuing Lender shall not relieve any other Participant of its obligation hereunder to make available to such Issuing Lender its Percentage of any payment under any Letter of Credit on the date required, as specified above, but no Participant shall be responsible for the failure of any other Participant to make available to such Issuing Lender such other Participant’s Percentage of any such payment.

(d) Whenever an Issuing Lender receives a payment of a reimbursement obligation as to which it has received any payments from the Participants pursuant to clause (c) above, such Issuing Lender shall pay to each such Participant which has paid its Percentage thereof, in Dollars and in same day funds, an amount equal to such Participant’s share (based upon the proportionate aggregate amount originally funded by such Participant to the aggregate amount funded by all Participants) of the principal amount of such reimbursement obligation and interest thereon accruing after the purchase of the respective participations.

 

(e) Upon the request of any Participant, each Issuing Lender shall furnish to such Participant copies of any Letter of Credit issued by it and such other documentation as may reasonably be requested by such Participant.

 

(f) The obligations of the Participants to make payments to each Issuing Lender with respect to Letters of Credit shall be irrevocable and not subject to any qualification or exception whatsoever and shall be made in accordance with the terms and conditions of this Agreement under all circumstances, including, without limitation, any of the following circumstances:

 

(i) any lack of validity or enforceability of this Agreement or any of the other Credit Documents;

 

(ii) the existence of any claim, setoff, defense or other right which the Borrower or any of its Subsidiaries may have at any time against a beneficiary named in a Letter of Credit, any transferee of any Letter of Credit (or any Person for whom any such transferee may be acting), the Administrative Agent, any Participant, or any other Person, whether in connection with this Agreement, any Letter of Credit, the transactions contemplated herein or any unrelated transactions (including any underlying transaction between the Borrower or any Subsidiary of the Borrower and the beneficiary named in any such Letter of Credit);

 

(iii) any draft, certificate or any other document presented under any Letter of Credit proving to be forged, fraudulent, invalid or insufficient in any respect or any statement therein being untrue or inaccurate in any respect;

 

(iv) the surrender or impairment of any security for the performance or observance of any of the terms of any of the Credit Documents; or 

(v) the occurrence of any Default or Event of Default.

 

3.05 Agreement to Repay Letter of Credit Drawings. (a) The Borrower agrees to reimburse each Issuing Lender, by making payment to the Administrative Agent in immediately available funds at the Payment Office, for any payment or disbursement made by such Issuing Lender under any Letter of Credit issued by it (each such amount, so paid until reimbursed, an “Unpaid Drawing”), not later than one Business Day following receipt by the 

Borrower of notice of such payment or disbursement (provided that no such notice shall be required to be given if a Default or an Event of Default under Section 11.05 shall have occurred and be continuing, in which case the Unpaid Drawing shall be due and payable immediately without presentment, demand, protest or notice of any kind (all of which are hereby waived by the Borrower)), with interest on the amount so paid or disbursed by such Issuing Lender, to the extent not reimbursed prior to 12:00 Noon (New York time) on the date of such payment or disbursement, from and including the date paid or disbursed to but excluding the date such Issuing Lender was reimbursed by the Borrower therefor at a rate per annum equal to the Base Rate, as in effect from time to time, plus the Applicable Margin; provided, however, to the extent such amounts are not reimbursed (pursuant to the Borrowing pursuant to clause (b) below or otherwise) prior to 12:00 Noon (New York time) on the third Business Day following the receipt by the Borrower of notice of such payment or disbursement or following the occurrence of a Default or an Event of Default under Section 11.05, interest shall thereafter accrue on the amounts so paid or disbursed by such Issuing Lender (and until reimbursed by the Borrower) at a rate per annum equal to the Base Rate in effect from time to time plus the Applicable Margin plus 2%, with such interest to be payable on demand. Each Issuing Lender shall give the Borrower prompt written notice of each Drawing under any Letter of Credit issued by it, provided that the failure to give any such notice shall in no way affect, impair or diminish the Borrower’s obligations hereunder. Upon a written notice from the Administrative Agent, each Lender agrees to make Revolving Loans to the Borrower in an amount equal to its Percentage of an Unpaid Drawing the proceeds of which shall be applied to the repayment of such Unpaid Drawing whether or not the conditions set forth in Section 7 are satisfied at such time. The Revolving Loans made pursuant to the immediately succeeding sentence shall initially be Base Rate Loans. 

(b) If the Borrower fails to reimburse the Issuing Lender pursuant to the terms of clause (a) above, the Issuing Lender shall notify the Administrative Agent and the Administrative Agent shall notify each Lender of the applicable Unpaid Drawing, the payment then due from the Borrower in respect thereof and such Lender’s Percentage thereof. Each Lender shall pay by wire transfer of immediately available funds to the Administrative Agent at the Payment Office not later than 2:00 p.m., New York time, on such date (or, if such Lender shall have 

received such notice later than 12:00 noon, New York time, on any day, not later than 11:00 a.m., New York time, on the immediately following Business Day), an amount equal to such Lender’s Percentage of the Unpaid Drawing whether or not the conditions precedent set forth in Section 7 have been satisfied at such time. Such Revolving Loans shall initially be maintained as Base Rate Loans and the Administrative Agent shall promptly pay the proceeds thereof to the Issuing Lender to reimburse and satisfy such Unpaid Drawing. The Administrative 

Agent will promptly pay to the Issuing Bank any amounts received by it from the Borrower pursuant to the above paragraph prior to the time that any Lender makes any Revolving Loan pursuant to the terms of this Section and any such amounts received by the Administrative Agent from the Borrower thereafter will be promptly remitted by the Administrative Agent to the Lenders that shall have made such payments and to the Issuing Lender, as appropriate. The Revolving Loans made pursuant to this Section 3.05(b) shall initially be Base Rate Loans.

 

(c) The obligations of the Borrower under this Section 3.05 to reimburse each Issuing Lender with respect to drafts, demands and other presentations for payment under Letters of Credit issued by it (each a “Drawing”) (including, in each case, interest thereon) shall be absolute and unconditional under any and all circumstances and irrespective of any setoff, counterclaim or defense to payment which the Borrower may have or have had against any Lender (including in its capacity as an Issuing Lender or as a Participant), including, without limitation, any defense based upon the failure of any drawing under a Letter of Credit to conform to the terms of the Letter of Credit or any nonapplication or misapplication by the beneficiary of the proceeds of such Drawing; provided, however, the Borrower shall be obligated to reimburse any Issuing Lender for any wrongful payment made by such Issuing Lender under a Letter of Credit issued by it as a result of acts or omissions constituting willful misconduct or gross negligence on the part of such Issuing Lender (as determined by a court of competent jurisdiction in a final and non-appealable decision). 

3.06 Increased Costs. If at any time after the Effective Date, the introduction or effectiveness of or any change in any applicable law, rule, regulation, order, guideline or request or in the interpretation or administration thereof by any governmental authority charged with the interpretation or administration thereof, or compliance by any Issuing Lender or any Participant with any request or directive by any such governmental authority (whether or not having the force of law), shall either (i) impose, modify or make applicable any reserve, deposit, capital adequacy or similar requirement against letters of credit issued by any Issuing Lender or participated in by any Participant, or (ii) impose on any Issuing Lender or any Participant any other conditions relating, directly or indirectly, to this Agreement or any Letter of Credit; and the result of any of the foregoing is to increase the cost to any Issuing Lender or any Participant of issuing, maintaining or participating in any Letter of Credit, or reduce the amount of any sum received or receivable by any Issuing Lender or any Participant hereunder or reduce the rate of return on its capital with respect to Letters of Credit (except for the imposition of, or any change in, the rate of any Excluded Tax), then, upon the delivery of the certificate referred to below to the Borrower by any Issuing Lender or any Participant (a copy of which certificate shall be sent by such Issuing Lender or such Participant to the Administrative Agent), the Borrower agrees to pay to such Issuing Lender or such Participant such additional amount or amounts as will compensate such Issuing Lender or such Participant for such increased cost or reduction in the amount receivable or reduction on the rate of return on its capital. Any Issuing Lender or any Participant, upon determining that any additional amounts will be payable pursuant to this Section 3.06, will give prompt written notice thereof to the Borrower, which notice shall include a certificate submitted to the Borrower by such Issuing Lender or such Participant (a copy of which certificate shall be sent by the Issuing Lender or such Participant to the Administrative Agent), setting forth in reasonable detail the basis for the calculation of such additional amount or amounts necessary to compensate such Issuing Lender or such Participant. The certificate required to be delivered pursuant to this Section 3.06 shall, absent manifest error, be final and conclusive and binding on the Borrower.

 

SECTION 4. Commitment Commission; Reductions of Commitment.

4.01 Fees. (a) The Borrower agrees to pay to the Administrative Agent for distribution to each Non-Defaulting Lender, a commitment commission (the “Commitment Commission”) for the period from and including the Effective Date to and including the Maturity Date (or such earlier date on which the Total Commitment has been terminated), computed at a rate per annum equal to 40% of the Applicable Margin then in effect for Eurodollar Loans on the daily undrawn portion of the Total Commitment. Accrued Commitment Commission shall be due and payable quarterly in arrears on each Quarterly Payment Date and on the Maturity Date (or such earlier date upon which the Total Commitment is terminated).

 

(b) The Borrower agrees to pay to the Administrative Agent for distribution to each Lender (based on each such Lender’s respective Percentage), a fee in respect of each Letter of Credit (the “Letter of Credit Fee”) for the period from and including the date of issuance of such Letter of Credit to and including the date of termination or expiration of such Letter of Credit, computed at a rate per annum equal to the Applicable Margin then in effect for 

Eurodollar Loans from time to time on the daily Stated Amount of each such Letter of Credit after giving effect to any amounts drawn and unreimbursed thereunder. Accrued Letter of Credit Fees shall be due and payable quarterly in arrears on each Quarterly Payment Date and on the Maturity Date (or such earlier date upon which the Total Commitment is terminated).

 

(c) The Borrower agrees to pay directly to each Issuing Lender, for its own account, a facing fee in respect of each Letter of Credit issued by it (the “Facing Fee”) for the period from and including the date of issuance of such Letter of Credit to and including the date of termination or expiration of such Letter of Credit, computed at a rate per annum equal to 1/4 of 1% on the daily Stated Amount of such Letter of Credit (after giving effect to any amounts drawn and unreimbursed thereunder), provided that in any event the minimum amount of Facing Fees payable in any twelve-month period for each Letter of Credit shall be not less than $500; it being agreed that, on the day of issuance of any Letter of Credit and on each anniversary thereof prior to the termination or expiration of such Letter of Credit, if $500 will exceed the amount of Facing Fees that will accrue with respect to such Letter of Credit for the immediately succeeding twelve-month period, the full $500 shall be payable on the date of issuance of such Letter of Credit and on each such anniversary thereof. Except as otherwise provided in the proviso to the immediately preceding sentence, accrued Facing Fees shall be due and payable quarterly in arrears on each Quarterly Payment Date and upon the first day on or after the termination of the Total Commitment upon which no Letters of Credit remain outstanding.

 

(d) The Borrower agrees to pay to each Issuing Lender, for its own account, upon each payment under, issuance of, or amendment to, any Letter of Credit issued by it, such amount as shall at the time of such event be the administrative charge and the reasonable expenses which such Issuing Lender is generally imposing in connection with such occurrence with respect to letters of credit.

 

(e) The Borrower agrees to pay to the Administrative Agent such fees as may be agreed to in writing from time to time by Borrower and/or the Administrative Agent.

 

(f) The Commitment Commission, Letter of Credit Fee, the Facing Fee and any other fees shall be based on a 360-day year and actual days elapsed.

 

4.02 Voluntary Termination of Unutilized Commitments. (a) Upon at least three Business Day’s prior notice to the Administrative Agent at the Notice Office (which notice the Administrative Agent shall promptly transmit to each of the Lenders), the Borrower shall have the right, at any time or from time to time, without premium or penalty, to terminate the Total Unutilized Revolving Loan Commitment, in whole or in part, pursuant to this Section 4.02(a), in integral multiples of $1,000,000 in the case of partial reductions thereto, provided that each such reduction shall apply proportionately to permanently reduce the Revolving Loan Commitment of each Lender.

(b) In the event of certain refusals by a Lender as provided in Section 14.12(b) to consent to certain proposed changes, waivers, discharges or terminations with respect to this Agreement which have been approved by the Required Lenders, the Borrower may, subject to the requirements of Section 14.12(b) and upon five Business Days’ written notice to the Administrative Agent at the Notice Office (which notice the Administrative Agent shall promptly transmit to each of the Lenders), terminate the Revolving Loan Commitment of such Lender so long as all Revolving Loans, together with accrued and unpaid interest, Fees and all other amounts, owing to such Lender (including all amounts, if any, owing pursuant to Section 2.11) are repaid concurrently with the effectiveness of such termination pursuant to Section 5.01(b) (at which time Schedule I shall be deemed modified to reflect such changed amounts) and such Lender’s Percentage of all outstanding Letters of Credit is cash collateralized in a manner reasonably satisfactory to the Administrative Agent and the respective Issuing Lender(s), and at such time such Lender shall no longer constitute a “Lender” for purposes of this Agreement, except with respect to indemnification provisions under this Agreement (including, without limitation, Sections 2.10, 2.11, 3.06, 5.04, 12.06 and 14.01), which shall survive as to such repaid Lender.

 

4.03 Mandatory Reduction of Commitments. (a) The Total Commitment (and the Revolving Loan Commitment of each Lender) shall terminate in its entirety on January 31, 2008 unless the Effective Date shall have occurred on or prior to such date.

 

(b) In addition to any other mandatory commitment reductions pursuant to this Section 4.03, the Total Commitment (and the Revolving Loan Commitment of each Lender) shall terminate in its entirety on the Maturity Date.

 

(c) In addition to any other mandatory commitment reductions pursuant to this Section 4.03, the Total Commitment shall be reduced to (i) $40,000,000 on the first anniversary of the Effective Date and (ii) $30,000,000 on the second anniversary of the Effective Date.

 

(d) Each reduction to, or termination of, the Total Commitment pursuant to this Section 4.03 shall be applied to proportionately reduce or terminate, as the case may be, the Revolving Loan Commitment of each Lender.

 

SECTION 5. Prepayments; Payments; Taxes.

5.01 Voluntary Prepayments. (a) The Borrower shall have the right to prepay the Revolving Loans, without premium or penalty, in whole or in part at any time and from time to time on the following terms and conditions:

 

(i) the Borrower shall give the Administrative Agent prior to 12:00 Noon (New York time) at the Notice Office at least three Business Days’ prior written notice (or telephonic notice promptly confirmed in writing) of its intent to prepay such Revolving Loans, the amount of such prepayment and the specific Borrowing or Borrowings pursuant to which such Revolving Loans were made, and which notice the Administrative Agent shall promptly transmit to each of the Lenders;

(ii) each prepayment shall be in an aggregate principal amount of at least $1,000,000 (or such lesser amount as is reasonably acceptable to the Administrative Agent), provided that no partial prepayment of Revolving Loans made pursuant to any Borrowing shall reduce the outstanding Revolving Loans made pursuant to such Borrowing to an amount less than $1,000,000;

 

(iii) at the time of any prepayment of Eurodollar Loans pursuant to this Section 5.01 on any date other than the last day of the Interest Period applicable thereto, the Borrower shall pay the amounts required to be paid pursuant to Section 2.11; and

 

(iv) each prepayment pursuant to this Section 5.01(a) in respect of any Revolving Loans made pursuant to a Borrowing shall be applied pro rata among such Revolving Loans, provided that at the Borrower’s election in connection with any prepayment of Revolving Loans pursuant to this Section 5.01(a), such prepayment shall not, so long as no Default or Event of Default then exists, be applied to any Revolving Loan of a Defaulting Lender.

 

(b) In the event of a refusal by a Lender to consent to certain proposed changes, waivers, discharges or terminations with respect to this Agreement which have been approved by the Required Lenders as (and to the extent) provided in Section 14.12(b), the Borrower may, upon five Business Days’ prior written notice to the Administrative Agent at the Notice Office (which notice the Administrative Agent shall promptly transmit to each of the Lenders), repay all Revolving Loans of such Lender (including all amounts, if any, owing pursuant to Section 2.11), together with accrued and unpaid interest, Fees and all other amounts then owing to such Lender in accordance with, and subject to the requirements of, said Section 14.12(b), so long as (A) the Revolving Loan Commitment of such Lender is terminated concurrently with such prepayment (at which time Schedule I shall be deemed modified to reflect the changed Revolving Loan Commitments), (B) such Lender’s Percentage of all outstanding Letters of Credit is cash collateralized in a manner reasonably satisfactory to the Administrative Agent and the respective Issuing Lender(s), and (C) the consents, if any, required under Section 14.12(b) in connection with the prepayment pursuant to this clause (b) have been obtained.

 

5.02 Mandatory Repayments. (a) On any day on which the sum of (I) the aggregate outstanding principal amount of all Revolving Loans (after giving effect to all other repayments thereof on such date) and (II) the aggregate amount of all Letter of Credit Outstandings exceeds the Total Commitment at such time, the Borrower shall repay on such date the principal of Revolving Loans in an amount equal to such excess. If, after giving effect to the repayment of all outstanding Revolving Loans, the aggregate amount of the Letter of Credit Outstandings exceeds the Total Commitment at such time, the Borrower shall pay to the Administrative Agent at the Payment Office on such day an amount of cash and/or Cash Equivalents equal to the amount of such excess (up to a maximum amount equal to the Letter of Credit Outstandings at such time), such cash and/or Cash Equivalents to be held as security for all obligations of the Borrower to the Issuing Lenders and the Lenders hereunder in a cash collateral account to be established by the Administrative Agent (until such time as the aggregate amount of Letter of Credit Outstandings no longer exceeds the Total Commitment, at which time such cash and/or Cash Equivalents shall be returned to the Borrower in the manner it so directs).

(b) With respect to each repayment of Revolving Loans required by this Section 5.02, the Borrower may designate the specific Borrowing or Borrowings pursuant to which such Revolving Loans were made, provided that (i) repayments of Eurodollar Loans pursuant to this Section 5.02 may only be made on the last day of an Interest Period applicable thereto unless all Revolving Loans with Interest Periods ending on such date of required repayment or which are Base Rate Loans have been paid in full and (ii) each repayment of any Revolving Loans comprising a Borrowing shall be applied pro rata among such Revolving Loans. In the absence of a designation by the Borrower as described in the preceding sentence, the Administrative Agent shall, subject to the above, make such designation in its sole discretion.

 

(c) Notwithstanding anything to the contrary contained elsewhere in this Agreement, all then outstanding Revolving Loans shall be repaid in full on the Maturity Date. 

5.03 Method and Place of Payment. Except as otherwise specifically provided herein, (i) all Obligations under this Agreement and under any Revolving Note shall be the obligation of the Borrower and (ii) all payments under this Agreement and under any Revolving Note shall be made to the Administrative Agent for the account of the Lender or Lenders entitled thereto not later than 12:00 Noon (New York time) on the date when due and shall be made in Dollars in immediately available funds at the Payment Office. Any payments under this Agreement or under any Revolving Note which are made later than 12:00 Noon (New York time) on any day shall be deemed to have been made on the next succeeding Business Day. Whenever any payment to be made hereunder or under any Revolving Note shall be stated to be due on a day which is not a Business Day, the due date thereof shall be extended to the next succeeding Business Day and, with respect to payments of principal, interest shall be payable at the applicable rate during such extension.

 

5.04 Net Payments; Taxes. (a) All payments made by any Credit Party hereunder or under any other Credit Document will be made without setoff, counterclaim or other defense. Except as provided in Section 5.04(b), all such payments will be made free and clear of, and without deduction or withholding for, any present or future taxes, levies, imposts, duties, fees, assessments or other charges of whatever nature now or hereafter imposed by any jurisdiction or by any political subdivision or taxing authority thereof or therein with respect to such payments (but excluding, with respect to the Administrative Agent, any Lender or any other recipient of any payment to be made by or on account of any obligation of the Borrower hereunder, (i) taxes imposed on or measured by its overall net income (however denominated), and franchise taxes imposed (in lieu of net income taxes), by the jurisdiction (or any political subdivision or taxing authority thereof) under the laws of which such recipient is organized or in which its principal office is located or, in the case of any Lender, in which its applicable lending office is located, (ii) any branch profits taxes imposed by the United States of America or any similar tax imposed by any other jurisdiction in which the principle office or applicable lending office of the Administrative Agent or the Lender, as the case may be, is located , and (iii) in the case of a Foreign Lender, any withholding tax that is imposed on amounts payable to such Foreign Lender at the time such Foreign Lender designates a new lending office or is attributable to such Foreign Lender’s failure to comply with Section 5.04(b), except to the extent that such Foreign Lender was entitled at the time of the designation of the new lending office to receive additional amounts from the Borrower with respect to such withholding tax pursuant to Section 5.04(a) 

(collectively, the “Excluded Taxes”), and all interest, penalties or similar liabilities with respect to such non-excluded taxes, levies, imposts, duties, fees, assessments or other charges (all such non-excluded taxes, levies, imposts, duties, fees, assessments or other charges being referred to collectively as “Taxes”). If any Taxes are required to be deducted or withheld, the Borrower agrees to pay the full amount of such Taxes, and such additional amounts as may be necessary so that every payment under this Agreement or under any Revolving Note, after withholding or deduction for or on account of any Taxes, will not be less than the amount provided for herein or in such Revolving Note. The Borrower will furnish to the Administrative Agent as soon as practicable after the date the payment of any Taxes is due pursuant to applicable law certified copies of tax receipts or other evidence of such payment reasonably acceptable to the Administrative Agent. The Borrower agrees to indemnify and hold harmless each Lender, and reimburse such Lender upon its written request, for the amount of any Taxes so levied or imposed and paid by such Lender; provided that, no Lender shall be indemnified for any Taxes hereunder unless such Lender shall make written demand on the Borrower for reimbursement hereunder no later than 180 days after the earlier of (i) the date on which such Lender makes payment of such Taxes and (ii) the date on which the relevant jurisdiction or any political subdivision or taxing authority thereof makes initial written demand upon such Lender for payment of such Taxes. 

(b) Each Lender that is not an “exempt recipient” (as such term is defined in Section 1.6049-4(c)(1)(ii) in the United States Treasury Regulations), as reasonably determined by the Borrower or the Administrative Agent, if requested by the Borrower or the Administrative Agent, shall deliver such documentation (including Form W-9) prescribed by applicable law or reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements. In addition, each Foreign Lender agrees to deliver to the Borrower and the Administrative Agent on or prior to the Effective Date (i) two accurate and complete original signed copies of Internal Revenue Service Form W-8ECI or Form W-8BEN (with respect to a complete exemption under an income tax treaty) (or successor forms) certifying to such Foreign Lender’s entitlement as of such date to a complete exemption from United States withholding tax with respect to payments to be made under this Agreement and under any Revolving Note, or (ii) if the Foreign Lender is not a “bank” within the meaning of Section 881(c)(3)(A) of the Code and cannot deliver either Internal Revenue Service Form W-8ECI or Form W-8BEN (with respect to a complete exemption under an income tax treaty) (or any successor forms) pursuant to clause (i) above, (x) a certificate substantially in the form of Exhibit D (any such certificate, a “Section 5.04(b)(ii) Certificate”) and (y) two accurate and complete original signed copies of Internal Revenue Service Form W-8BEN (with respect to the portfolio interest exemption) (or successor form) certifying to such Foreign Lender’s entitlement as of such date to a complete exemption from United States withholding tax with respect to payments of interest to be made under this Agreement and under any Revolving Note. In addition, each Foreign Lender agrees that from time to time after the Effective Date, when a lapse in time or change in circumstances renders the previous certification obsolete or inaccurate in any material respect, such Foreign Lender will deliver to the Borrower and the Administrative Agent two new accurate and complete original signed copies of Internal Revenue Service Form W-8ECI, Form W-8BEN (with respect to the benefits of any income tax treaty), or Form W-8BEN (with respect to the portfolio interest exemption) and a Section 5.04(b)(ii) Certificate, as the case may be, and such other forms as may be required in order to confirm or establish the entitlement of such Foreign Lender to a continued exemption from or reduction in United States withholding tax with respect to payments under this Agreement and any Revolving Note, or such Foreign Lender shall immediately notify the Borrower and the Administrative Agent of its inability to deliver any such Form or Certificate, in which case such Foreign Lender shall not be required to deliver any such Form or Certificate pursuant to this Section 5.04(b). Notwithstanding anything to the contrary contained in Section 5.04(a), but subject to Section 14.04(b) and the immediately succeeding sentence, (x) the Borrower shall be entitled, to the extent it is required to do so by law, to deduct or withhold Taxes imposed by the United States (or any political subdivision or taxing authority thereof or therein) from interest, Fees or other amounts payable hereunder for the account of any Foreign Lender to the extent that such Foreign Lender has not provided to the Borrower U.S. Internal Revenue Service Forms and the Section 5.04(b)(ii) Certificate, as applicable, that establish a complete exemption from such deduction or withholding and (y) the Borrower shall not be obligated pursuant to Section 5.04(a) to gross-up payments to be made to a Foreign Lender in respect of Taxes imposed by the United States if (I) such Foreign Lender has not provided to the Borrower the Internal Revenue Service 

Forms and the Section 5.04(b)(ii) Certificate, as applicable, required to be provided to the Borrower pursuant to this Section 5.04(b) or (II) in the case of a payment, other than interest, to a Foreign Lender described in clause (ii) above, to the extent that such Forms do not establish a complete exemption from withholding of such Taxes. Notwithstanding anything to the contrary contained in the preceding sentence or elsewhere in this Section 5.04 and except as set forth in Section 14.04(b), the Borrower agrees to pay any additional amounts and to indemnify each Foreign Lender with respect to Taxes in the manner set forth in Section 5.04(a) in respect of any amounts deducted or withheld by it as described in the immediately preceding sentence as a result of any changes that are effective after the Effective Date in any applicable law, treaty, governmental rule, regulation, guideline or order, or in the interpretation thereof, relating to the deducting or withholding of Taxes. 

(c) If the Administrative Agent or a Lender determines, in its sole discretion, that it has received a refund of any Taxes as to which it has been indemnified by the Borrower or with respect to which the Borrower has paid additional amounts pursuant to this Section 5.04, it shall pay to the Borrower an amount equal to such refund (but only to the extent of indemnity payments made, or additional amounts paid, by the Borrower under this Section with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses of the Administrative Agent or such Lender, as the case may be, and without interest (other than any interest paid by the relevant jurisdiction or any political subdivision or taxing authority thereof with respect to such refund), provided, however, that (i) the Administrative Agent or Lender, as the case may be, may determine, in its sole discretion consistent with the policies of the Administrative Agent or Lender, as the case may be, whether to seek a refund; and (ii) the Borrower, upon the request of the Administrative Agent or such Lender, agrees to repay the amount paid over to the Borrower (plus any penalties, interest or other charges imposed by the relevant jurisdiction or any political subdivision or taxing authority thereof) to the Administrative Agent or such Lender in the event the Administrative Agent or such Lender is required to repay such refund to such jurisdiction or any political subdivision or taxing authority thereof. This paragraph shall not be construed to require the Administrative Agent or any Lender to make available its tax returns (or any other information that it deems confidential) to the Borrower or any other Person.

SECTION 6. Conditions Precedent to the Effective Date. The occurrence of the Effective Date pursuant to Section 14.10 is subject to the satisfaction of the following conditions: 

6.01 Execution of Agreement; Revolving Notes. On or prior to the Effective Date, (i) this Agreement shall have been executed and delivered as provided in Section 14.10 and (ii) there shall have been delivered to the Administrative Agent, for the account of each of the Lenders that has requested same, the appropriate Revolving Notes executed by the Borrower, in each case in the amount, maturity and as otherwise provided herein.

 

6.02 Fees, etc. On the Effective Date, the Borrower shall have paid to the Administrative Agent and the Lenders all costs, fees and expenses (including, without limitation, reasonable legal fees and expenses of outside legal counsel to the Administrative Agent) payable to the Administrative Agent and the Lenders to the extent then due.

 

6.03 Officer’s Certificate. On the Effective Date, the Administrative Agent shall have received a certificate, dated the Effective Date, and signed by the chairman of the board, the chief executive officer, the president or any vice president of the Borrower, certifying on behalf of the Borrower that all of the conditions set forth in Sections 6.07, 6.09 and 7.02 have been satisfied on such date.

 

6.04 Opinions of Counsel. On the Effective Date, the Administrative Agent shall have received from Vinson & Elkins L.L.P., counsel to each Credit Party, an opinion addressed to the Administrative Agent and each of the Lenders and dated the Effective Date covering the matters set forth in Exhibit E and such other matters incident to the transactions contemplated herein as the Administrative Agent may reasonably request.

 

6.05 Corporate Documents; Proceedings; etc. (a) On the Effective Date, the Administrative Agent shall have received a certificate from each Credit Party, dated the Effective Date, signed by the chairman of 

the board, the chief executive officer, the president or any vice president of each Credit Party, and attested to by the secretary or any assistant secretary of such Credit Party, in the form of Exhibit F, with appropriate insertions, together with copies of the Certificate of Incorporation and By-Laws (or equivalent organizational documents) of such Credit Party and the resolutions of such Credit Party referred to in such certificate, and each of the foregoing shall be reasonably acceptable to the Administrative Agent.

 

(b) On the Effective Date, all corporate, limited liability company, partnership and legal proceedings, and all instruments and agreements in connection with the transactions contemplated by this Agreement and the other Credit Documents, shall be reasonably satisfactory in form and substance to the Administrative Agent, and the Administrative Agent shall have received all information and copies of all documents and papers, including records of corporate, limited liability company and partnership proceedings, governmental approvals, good standing certificates and bring-down telegrams or facsimiles, if any, which the Administrative Agent reasonably may have requested in connection therewith, such documents and papers, where appropriate, to be certified by proper corporate or governmental authorities.

6.06 Pledge Agreement. On or before the Effective Date, each Credit Party shall have duly authorized, executed and delivered the Pledge Agreement in the form of Exhibit G (as modified, supplemented, restated and/or amended from time to time, the “Pledge Agreement”) covering all of the present and future Pledge Agreement Collateral in each case together with:

 

(i) the delivery to the Collateral Agent, as pledgee, of all of the Pledge Agreement Collateral referred to therein, accompanied by executed and undated endorsements for transfer;

 

(ii) Financing Statements (Form UCC-1) in proper form for filing under the UCC or in other appropriate filing offices of each jurisdiction as may be necessary or, in the reasonable opinion of the Collateral Agent desirable, to perfect the security interests purported to be created by the Pledge Agreement;

 

(iii) certified copies of requests for information or copies (Form UCC-11), or equivalent reports, listing all effective financing statements that name a Credit Party as debtor and that are filed in such Credit Party’s jurisdiction of organization, together with copies of such other financing statements that name the Borrower as debtor (none of which shall cover the Collateral except (x) to the extent evidencing Permitted Liens or (y) in respect of which the Collateral Agent shall have received Form UCC-3 Termination Statements (or such other termination statements as shall be required by local law) fully executed for filing); and 

(iv) evidence that all other actions necessary or, in the reasonable opinion of the Collateral Agent desirable, to perfect and protect the security interests purported to be created by the Pledge Agreement have been taken.

 

6.07 Adverse Change; Approvals. (a) Since September 30, 2007, nothing shall have occurred (and neither the Administrative Agent nor any of the Lenders shall have become aware of any facts or conditions not previously known to it or them) which could reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect.

 

(b) On or prior to the Effective Date, all necessary governmental (domestic and foreign) and third party approvals and/or consents in connection with the Transaction and the other transactions contemplated hereby shall have been obtained and remain in effect, and all applicable waiting periods with respect thereto shall have expired without any action being taken by any competent authority which restrains, prevents or imposes materially adverse conditions upon the consummation of the Transaction or the other transactions contemplated by the Credit Documents or otherwise referred to herein or therein. On the Effective Date, there shall not exist any judgment, order, injunction or other restraint issued or filed or a hearing seeking injunctive relief or other restraint pending or notified prohibiting or imposing materially adverse conditions upon the Transaction or the other transactions contemplated by the Credit Documents or otherwise referred to herein or therein.

6.08 Litigation. On the Effective Date, there shall be no actions, suits, investigations or proceedings pending or threatened by any entity (private or governmental) (i) with respect to the Transaction, this Agreement or any other Credit Document or (ii) which could reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect.

 

6.09 Solvency Certificate. On or before the Effective Date, the Administrative Agent shall have received a solvency certificate from the chief financial officer of the Borrower, in the form of Exhibit H which shall be addressed to the Administrative Agent and each of the Lenders and dated the Effective Date, setting forth the conclusion that, after giving effect to the Transaction and the incurrence of all the financings contemplated hereby, the Borrower and its Subsidiaries, taken as a whole, are not insolvent and will not be rendered insolvent by the incurrence of such indebtedness, and will not be left with unreasonably small capital with which to engage in their respective businesses and will not have incurred debts beyond their ability to pay such debts as they mature.

 

6.10 Financial Statements; Projections. On or prior to the Effective Date, the Administrative Agent shall have received copies of the financial statements and Projections referred to in Sections 8.05(a) and (d), which historical financial statements and Projections shall be in form and substance reasonably satisfactory to the Administrative Agent.

 

SECTION 7. Conditions Precedent to All Credit Events. The obligation of each Lender to make Revolving Loans (including Revolving Loans made on the Effective Date), and the obligation of each Issuing Lender to issue Letters of Credit (including Letters of Credit issued on the Effective Date) is subject, at the time of each such Credit Event (except as hereinafter indicated), to the satisfaction of the following conditions: 

7.01 Effective Date. The Effective Date shall have occurred.

 

7.02 No Default; Representations and Warranties. At the time of each Credit Event and also after giving effect thereto (i) there shall exist no Default or Event of Default and (ii) all representations and warranties contained herein and in each other Credit Document shall be true and correct in all material respects with the same effect as though such representations and warranties had been made on the date of such Credit Event (it being understood and agreed that any representation or warranty which by its terms is made as of a specified date shall be required to be true and correct in all material respects only as of such specified date).

 

7.03 Notice of Borrowing. (a) Prior to the making of each Revolving Loan, the Administrative Agent shall have received the Notice of Borrowing required by Section 2.03.

 

(b) Prior to the issuance of each Letter of Credit, the Administrative Agent and the respective Issuing Lender shall have received a Letter of Credit Request pursuant to Section 3.03(a). 

The occurrence of the Effective Date and the acceptance of the benefits of each Credit Event shall constitute a representation and warranty by the Borrower to the Administrative Agent and each of the Lenders that all the conditions specified in Section 6 (with respect to Credit Events occurring on the Effective Date) and in this Section 7 (with respect to Credit Events occurring on or after the Effective Date) and applicable to such Credit Event have been satisfied as of that time. All of the Revolving Notes, certificates, legal opinions and other documents and papers referred to in Section 6 and in this Section 7, unless otherwise specified, shall be delivered to the Administrative Agent at the Notice Office for the account of each of the Lenders and, except for the Revolving Notes, in sufficient counterparts for each of the Lenders and shall be in form and substance reasonably satisfactory to the Administrative Agent. 

SECTION 8. Representations, Warranties and Agreements. In order to induce the Lenders to enter into this Agreement and to make the Revolving Loans and issue and/or participate in the Letters of Credit provided for herein, the Borrower makes the following representations, warranties and agreements, in each case after giving effect to the Transaction as consummated on the Effective Date, all of which shall survive the execution and delivery of this Agreement and the Revolving Notes and the making of the Revolving 

Loans and the issuance of the Letters of Credit, with the occurrence of each Credit Event on or after the Effective Date being deemed to constitute a representation and warranty that the matters specified in this Section 8 are true and correct in all material respects on and as of the Effective Date and on the date of each such Credit Event (it being understood and agreed that any representation or warranty which by its terms is made as of a specified date shall be required to be true and correct in all material respects only as of such specified date): 

8.01 Corporate/Limited Liability Company/Limited Partnership Status. The Borrower and each of its Subsidiaries (i) is a duly organized and validly existing corporation, limited liability company or partnership, as the case may be, in good standing under the laws of the jurisdiction of its organization, (ii) has the corporate or other applicable power and authority to own its property and assets and to transact the business in which it is engaged and presently proposes to engage and (iii) is duly qualified and is authorized to do business and is in good standing in each jurisdiction where the ownership, leasing or operation of its property or the conduct of its business requires such qualifications, except for failures to be so qualified which, either individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect.

 

8.02 Corporate Power and Authority. Each Credit Party has the corporate or other applicable power and authority to execute, deliver and perform the terms and provisions of each of the Credit Documents to which it is party and has taken all necessary corporate or other applicable action to authorize the execution, delivery and performance by it of each of such Credit Documents. Each Credit Party has duly executed and delivered each of the Credit Documents to which it is party, and each of such Credit Documents constitutes its legal, valid and binding obligation enforceable in accordance with its terms, except to the extent that the enforceability thereof may be limited by applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other similar laws generally affecting creditors’ rights and by equitable principles (regardless of whether enforcement is sought in equity or at law).

 

8.03 No Violation. Neither the execution, delivery or performance by any Credit Party of the Credit Documents to which it is a party, nor compliance by it with the terms and provisions thereof, (i) will contravene any provision of any law, statute, rule or regulation or any order, writ, injunction or decree of any court or governmental instrumentality, (ii) will conflict with or result in any breach of any of the terms, covenants, conditions or provisions of, or constitute a default under, or result in the creation or imposition of (or the obligation to create or impose) any Lien (except pursuant to the Security Documents) upon any of the properties or assets any Credit Party pursuant to the terms of any indenture, mortgage, deed of trust, credit agreement or loan agreement, or any other material agreement, contract or instrument, in each case to which any Credit Party is a party or by which it or any material portion of its property or assets is bound or to which it may be subject or (iii) will violate any provision of the certificate or articles of incorporation or by-laws (or equivalent organizational documents) of any Credit Party. 

8.04 Governmental Approvals. No order, consent, approval, license, authorization or validation of, or filing, recording or registration with (except for those that have otherwise been obtained or made on or prior to the Effective Date), or exemption by, any governmental or public body or authority, or any subdivision thereof, is required to be obtained or made by, or on behalf of, any Credit Party to authorize, or is required to be obtained or made by, or on behalf of, any Credit Party in connection with, (i) the execution, delivery and performance of any Credit Document (other than such filings, recordations or registrations as may be required to perfect a Lien in the Collateral granted pursuant to the Credit Documents) or (ii) the legality, validity, binding effect or enforceability of any Credit Document.

 

8.05 Financial Statements; Financial Condition; Undisclosed Liabilities; Projections; etc. (a) The consolidated balance sheet of the Borrower and its Subsidiaries for the Borrower’s fiscal year ended on December 31, 2006, and the consolidated balance sheet of the Borrower and its Subsidiaries for the Borrower’s fiscal quarter ended on September 30, 2007 and (in each case) the related consolidated statements of income, cash flows and shareholders’ equity of the Borrower and its Subsidiaries for such fiscal year or fiscal quarter ended on such dates, as the case may be, copies of which have been furnished to the Administrative Agent and the Lenders prior to the Effective Date, present fairly in all material respects the consolidated financial position of the Borrower and its Subsidiaries at the dates of such balance sheets 

and the consolidated results of the operations of the Borrower and its Subsidiaries for the periods covered thereby. All of the foregoing historical financial statements have been prepared in accordance with GAAP consistently applied (except, in the case of the aforementioned quarterly financial statements, for normal year-end audit adjustments and the absence of footnotes).

 

(b) On and as of the Effective Date, and after giving effect to the Transaction and to all Indebtedness (including the Revolving Loans) being incurred or assumed and Liens created by the Credit Parties in connection therewith, the Credit Parties, taken as a whole, are not insolvent and will not be rendered insolvent by the incurrence of such indebtedness, and will not be left with unreasonably small capital with which to engage in their respective businesses and will not have incurred debts beyond their ability to pay such debts as they mature.

 

(c) Except as fully disclosed in the financial statements referred to in Section 8.05(a), there were as of the Effective Date no liabilities or obligations with respect to the Borrower or any of its Subsidiaries of any nature whatsoever (whether absolute, accrued, contingent or otherwise and whether or not due) which, either individually or in the aggregate, could reasonably be expected to be material to the Borrower and its Subsidiaries taken as a whole. As of the Effective Date, the Credit Parties know of no reasonable basis for the assertion against it or any of its Subsidiaries of any liability or obligation of any nature whatsoever that is not fully disclosed in the financial statements or referred to in Section 8.05(a) which, either individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect. 

(d) On and as of the Effective Date, the Projections which have been delivered to the Administrative Agent and the Lenders prior to the Effective Date have been prepared in good faith and are based on reasonable assumptions, and there are no statements or conclusions in any of the Projections which are based upon or include information known to the Borrower to be misleading in any material respect or which fail to take into account material information known to the Borrower regarding the matters reported therein; it being recognized by the Lenders, however, that projections as to future events are not be viewed as facts and that actual results during the period or periods covered by the Projections may differ from the projections results.

 

(e) Since September 30, 2007, no event has occurred or other circumstances arisen that has had, or could reasonably be expected to have, a Material Adverse Effect.

 

8.06 Litigation. There are no actions, suits or proceedings pending or, to the knowledge of the Borrower, threatened (i) with respect to the Transaction or any Credit Document or (ii) that could reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect.

 

8.07 True and Complete Disclosure. All factual information (taken as a whole) furnished by or on behalf of the Borrower in writing to the Administrative Agent or any Lender (including, without limitation, all information contained in the Credit Documents but excluding all Projections) for purposes of or in connection with this Agreement, the other Credit Documents or any transaction contemplated herein or therein is, and all other such factual information (taken as a whole) hereafter furnished by or on behalf of the Borrower in writing to the Administrative Agent or any Lender will be, true and accurate in all material respects on the date as of which such information is dated or certified and not incomplete by omitting to state any fact necessary to make such information (taken as a whole) not misleading in any material respect at such time in light of the circumstances under which such information was provided. 

8.08 Use of Proceeds; Margin Regulations. (a) (i) All proceeds of all Revolving Loans shall be used (x) to pay fees and expenses incurred in connection with the Transaction and (y) for the Borrower’s and its Subsidiaries’ general corporate and working capital purposes and (ii) all Letters of Credit shall be issued for, and the proceeds of all Drawings under all Letters of Credit shall be utilized in connection with, the Borrower’s and its Subsidiaries’ general corporate and working capital purposes (other than for obligations of the Borrower and its Subsidiaries that arise in connection with the Senior Notes).

 

(b) No part of any Credit Event (or the proceeds thereof) will be used to purchase or carry any Margin Stock or to extend credit for the purpose of purchasing or carrying any Margin Stock. Neither the 

making of any Revolving Loan nor the use of the proceeds thereof nor the occurrence of any other Credit Event will violate or be inconsistent with the provisions of Regulation U or X of the Board of Governors of the Federal Reserve System.

8.09 Tax Returns and Payments. The Borrower and each of its Subsidiaries have timely filed or caused to be timely filed with the appropriate taxing authority all returns, statements, forms and reports for taxes (the “Returns”) required to be filed by, or with respect to the income, properties or operations of, the Borrower and/or any of its Subsidiaries. The Returns accurately reflect in all material respects all liability for taxes of the Borrower and its Subsidiaries as a whole for the periods covered thereby. The Borrower and each of its Subsidiaries has paid all taxes and assessments payable by it, other than those that are being contested in good faith and adequately disclosed and fully provided for on the financial statements of the Borrower and its Subsidiaries in accordance with GAAP. There is no action, suit, proceeding, investigation, audit or claim now pending or, to the best knowledge of the Borrower or any of its Subsidiaries, threatened by any authority regarding any taxes relating to the Borrower or any of its Subsidiaries that, either individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect. Except as set forth on Schedule XII, neither the Borrower nor any of its Subsidiaries has entered into an agreement or waiver or been requested to enter into an agreement or waiver extending any statute of limitations relating to the payment or collection of taxes of the Borrower or any of its Subsidiaries, or is aware of any circumstances that would cause the taxable years or other taxable periods of the Borrower or any of its Subsidiaries not to be subject to the normally applicable statute of limitations. Neither the Borrower nor any of its Subsidiaries has incurred, or will incur, any material tax liability in connection with the Transaction or any other transactions contemplated hereby (it being understood that the representation contained in this sentence does not cover any future tax liabilities of the Borrower or any of its Subsidiaries arising as a result of the operation of their businesses in the ordinary course of business).

 

8.10 Compliance with ERISA. (a) Schedule III sets forth, as of the Effective Date, the name of each Plan and Foreign Pension Plan. Neither the Borrower nor any Subsidiary of the Borrower nor any ERISA Affiliate has ever sponsored, maintained or made any contributions to or has any liability in respect of any Plan which is subject to Title IV of ERISA or Section 302 of ERISA or Section 412 of the Code; each Plan has been maintained and operated in compliance with the provisions of ERISA and, to the extent applicable, the Code, except as would not reasonably be expected to result in a Material Adverse Effect, including but not limited to the provisions thereunder respecting prohibited transactions. Each Plan (and each related trust, if any) which is intended to be qualified under Section 401(a) of the Code has received a favorable determination letter from the IRS to the effect that it meets the requirements of Sections 401(a) and 501(a) of the Code covering all tax law changes prior to the Economic Growth and Tax Relief Reconciliation Act of 2001 or is comprised of a master or prototype plan that has received a favorable opinion letter from the IRS. All material contributions required to be made with respect to a Plan have been timely made or have been reflected on the most recent consolidated balance sheet filed prior to the date hereof or accrued in the accounting records of the Borrower and its Subsidiaries. Neither the Borrower nor any Subsidiary of the Borrower nor any ERISA Affiliate has pending, or is considering filing, an application under the IRS Employee Plans Compliance Resolution System or the Department of Labor’s Voluntary Fiduciary Correction Program with respect to any Plan. No action, suit, proceeding, hearing, audit or investigation with respect to the administration, operation or the investment of assets of any Plan (other than routine claims for benefits) is pending, expected or threatened. Except as would not result in a Material Adverse Effect, each group health plan (as defined in Section 607(1) of ERISA or Section 4980B(g)(2) of the Code) which covers or has covered employees or former employees of the Borrower, any Subsidiary of the Borrower, or any ERISA Affiliate has at all times been operated in compliance with the provisions of Part 6 of subtitle B of Title I of ERISA and Section 4980B of the Code. Each group health plan (as defined in 45 Code of Federal Regulations Section 160.103) which covers or has covered employees or former employees of the Borrower, any Subsidiary of the Borrower, or any ERISA Affiliate has at all times been operated in compliance with the provisions of the Health Insurance Portability and Accountability Act of 1996 and the regulations promulgated thereunder, except as would not reasonably be expected to result in a Material Adverse Effect. The Borrower, any Subsidiary of the Borrower or any ERISA Affiliate, as appropriate, may terminate each such Plan at any time (or at any time subsequent to the expiration of any applicable bargaining agreement) in the discretion of such Person without liability to any Person other than for benefits accrued prior to the date of such termination. The Borrower and each of its 

Subsidiaries may cease contributions to or terminate any employee benefit plan maintained by any of them without incurring any liability that would result in a Material Adverse Effect. 

(b) Each Foreign Pension Plan has been maintained in compliance with its terms and with the requirements of any and all applicable laws, statutes, rules, regulations and orders, except as would not result in a Material Adverse Effect, and has been maintained, where required, in good standing with applicable regulatory authorities. All material contributions required to be made with respect to a Foreign Pension Plan have been timely made. Neither the Borrower nor any of its Subsidiaries has incurred any obligation in connection with the termination of, or withdrawal from, any Foreign Pension Plan that would reasonably be expected to result in a Material Adverse Effect. The present value of the accrued benefit liabilities (whether or not vested) under each Foreign Pension Plan, determined as of the end of the Borrower’s most recently ended fiscal year on the basis of then current actuarial assumptions, each of which is reasonable, did not exceed the current value of the assets of such Foreign Pension Plan allocable to such benefit liabilities by an amount that could reasonably be expected to have a Material Adverse Effect.

 

8.11 The Security Documents. Each of the Security Documents creates in favor of the Collateral Agent for the benefit of the Secured Creditors a legal, valid and enforceable fully perfected first priority security interest in and Lien on all right, title and interest of the Credit Parties in the Collateral described therein, subject to no other Liens other than Permitted Liens. No filings or recordings are required in order to perfect the security interests created under any Security Document except for filings or recordings which shall have been made on or prior to the Effective Date.

 

8.12 Subsidiaries. On the Effective Date, the Borrower has no Subsidiaries other than those Subsidiaries listed on Schedule IV (which Schedule identifies the correct legal name, direct owner, percentage ownership and jurisdiction of organization of each such Subsidiary on the Effective Date).

 

8.13 Compliance with Statutes, etc. The Borrower and each of its Subsidiaries is in compliance with all applicable statutes, regulations and orders of, and all applicable restrictions imposed by, all governmental bodies, domestic or foreign, in respect of the conduct of its business and the ownership of its property (including, without limitation, Environmental Laws), except such noncompliances as could not, either individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. 

8.14 Investment Company Act. No Credit Party is an “investment company” or a company “controlled” by an “investment company,” within the meaning of the Investment Company Act of 1940, as amended.

 

8.15 Environmental Matters. Except as could not, either individually or in the aggregate, reasonably be expected to have a Material Adverse Effect:

 

(a) The Borrower and each of its Subsidiaries are in compliance with all applicable Environmental Laws and the requirements of any permits issued under such Environmental Laws. There are no pending or, to the knowledge of the Borrower, threatened Environmental Claims against the Borrower or any of its Subsidiaries or any vessel or Real Property owned, leased or operated by the Borrower or any of its Subsidiaries (including any such claim against the Borrower or any of its Subsidiaries or any vessel or Real Property arising out of the ownership, lease or operation by the Borrower or any of its Subsidiaries of any vessel or Real Property formerly owned, leased or operated by the Borrower or any of its Subsidiaries but no longer owned, leased or operated by the Borrower or any of its Subsidiaries). All licenses, permits, registrations or approvals required for the business of the Borrower and each of its Subsidiaries under any Environmental Law have been secured and the Borrower and each of its Subsidiaries is in compliance therewith. To the knowledge of the Borrower, there are no facts, circumstances, conditions or occurrences in respect of any vessel or Real Property currently owned or operated by the Borrower or any of its Subsidiaries that are reasonably likely (i) to form the basis of an Environmental Claim against the Parent, any of its Subsidiaries or any vessel or Real Property owned by the Borrower or any of its Subsidiaries, or (ii) to cause such vessel or Real Property to be subject to any restrictions on its ownership, occupancy, use or transferability under any Environmental Law.

 

(b) Hazardous Materials have not at any time been generated, used, treated or stored on, or transported to or from, or Released on or from, any vessel or Real Property owned, leased or operated by the Borrower or any of its Subsidiaries or, to the knowledge of the Borrower, any property adjoining or adjacent to any Real Property, by the Borrower or its Subsidiaries during the time the Borrower or its Subsidiaries owned, lease or operated any vessel or Real Property, in violation of Environmental Laws.

 

8.16 Labor Relations. Neither the Borrower nor any of its Subsidiaries is engaged in any unfair labor practice that, either individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect. There is (i) no unfair labor practice complaint pending against the Borrower or any of its Subsidiaries or, to the Borrower’s knowledge, threatened against any of them before the National Labor Relations Board, and no grievance or arbitration proceeding arising out of or under any collective bargaining agreement is so pending against the Borrower or any of its Subsidiaries or, to the Borrower’s or the Borrower’s knowledge, threatened against any of them, (ii) no strike, labor dispute, slowdown or stoppage pending against the Borrower or any of its Subsidiaries or, to the Borrower’s or the Borrower’s knowledge, threatened against the Borrower or any of its Subsidiaries and (iii) no union representation proceeding pending with respect to the employees of the Borrower or any of its Subsidiaries, except (with respect to the matters specified in clauses (i), (ii) and (iii) above) as could not, either individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. 

8.17 Patents, Licenses, Franchises and Formulas. The Borrower and each of its Subsidiaries owns, or has the right to use, all material patents, trademarks, permits, service marks, trade names, copyrights, licenses, franchises and formulas, and has obtained assignments of all leases and other rights of whatever nature, necessary for the present conduct of its business, without any known conflict with the rights of others, except for such failures and conflicts which could not, either individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.

 

8.18 Indebtedness. Schedule V sets forth a list of all Indebtedness (excluding the Obligations, the obligations in respect of Senior Notes and other items of Indebtedness that are independently justified under Section 10.04 (other than under clause (iii) thereof)) of the Borrower and its Subsidiaries as of the Effective Date and which is to remain outstanding after giving effect to the Transaction (the “Existing Indebtedness”), in each case (other than in the case of loans made by the Borrower to its Subsidiaries) showing the approximate aggregate principal amount thereof and the name of the borrower and any other entity which directly or indirectly guarantees such debt. On the Effective Date, the Borrower is not the obligor in respect of any Intercompany Loan.

 

8.19 Insurance. Schedule VI sets forth a list of all insurance maintained by each Credit Party as of the Effective Date, with the amounts insured (and any deductibles) set forth therein.

 

8.20 Properties. The Borrower and each of its Subsidiaries have good and marketable title to all properties owned by them, including all property reflected in the balance sheets referred to in Section 8.05(a) (except as sold or otherwise disposed of since the date of such balance sheet in the ordinary course of business or as permitted by the terms of this Agreement), free and clear of all Liens, other than Permitted Liens.

 

8.21 Legal Names; Type of Organization (and Whether a Registered Organization); Jurisdiction of Organization; etc. Schedule VII sets forth, as of the Effective Date, the legal name of each Credit Party, the type of organization of each Credit Party, whether or not each Credit Party is a registered organization, the jurisdiction of organization of each Credit Party and the organizational identification number (if any) of the Borrower and each Credit Party. 

SECTION 9. Affirmative Covenants. The Borrower hereby covenants and agrees that on and after the Effective Date and until the Total Commitment has been terminated and no Letters of Credit or Revolving Notes are outstanding and all Revolving Loans, together with interest, Fees and all other Obligations (other than indemnities described in Section 14.13 which are not then due and payable) incurred hereunder and thereunder, are paid in full: 

9.01 Information Covenants. The Borrower will furnish to the Administrative Agent:

(a) Quarterly Financial Statements. Within 45 days after the close of the first three quarterly accounting periods in each fiscal year of the Borrower, (i) the consolidated and consolidating balance sheet of the Borrower and its Subsidiaries as at the end of such quarterly accounting period and the related consolidated and consolidating statements of income and retained earnings and statement of cash flows for such quarterly accounting period and for the elapsed portion of the fiscal year ended with the last day of such quarterly accounting period, in each case setting forth comparative figures for the corresponding quarterly accounting period in the prior fiscal year and comparable budgeted figures for such quarterly accounting period as set forth in the respective budget delivered pursuant to Section 9.01(d), all of which shall be certified by the chief financial officer of the Borrower that they fairly present in all material respects in accordance with GAAP the financial condition of the Borrower and its Subsidiaries as of the dates indicated and the results of their operations for the periods indicated, subject to normal year-end audit adjustments and the absence of footnotes, and (ii) management’s discussion and analysis of the important operational and financial developments during such quarterly accounting period.

 

(b) Annual Financial Statements. Within 90 days after the close of each fiscal year of the Borrower, (i) the consolidated and consolidating balance sheet of the Borrower and its Subsidiaries as at the end of such fiscal year and the related consolidated and consolidating statements of income and retained earnings and statement of cash flows for such fiscal year setting forth comparative figures for the preceding fiscal year and certified on an unqualified basis (whether as to scope of audit, going concern or otherwise) by PricewaterhouseCoopers or other independent certified public accountants of recognized national standing reasonably acceptable to the Administrative Agent, and, so long as not contrary to the then current recommendations of the American Institute of Certified Public Accountants, accompanied by a report of such accounting firm stating that in connection with its regular audit of the financial statements of the Borrower and its Subsidiaries, which audit was conducted in accordance with generally accepted auditing standards, no Default or Event of Default relating to financial or accounting matters has occurred and is continuing has come to the attention of such accounting firm or, if in the opinion of such accounting firm such a Default or an Event of Default has occurred and is continuing, a statement as to the nature and period of existence thereof (it being understood that such accounting firm shall not be liable directly or indirectly to any Person for any failure to obtain knowledge of any such violations), and (ii) management’s discussion and analysis of the important operational and financial developments during such fiscal year.

 

(c) Management Letters. Promptly after the Borrower or any of its Subsidiaries’ receipt thereof, a copy of any “management letter” received from its certified public accountants and management’s response thereto.

 

(d) Budgets. No later than 30 days following the first day of each fiscal year of the Borrower (beginning with the Borrower’s fiscal year commencing on January 1, 2008), (i) a budget in form reasonably satisfactory to the Administrative Agent (including budgeted statements of income for the Borrower and its Subsidiaries on a consolidated basis) for each of the four quarters of such fiscal year prepared in detail and (ii) projections for such fiscal year and the immediately succeeding two fiscal years, which shall include key operating assumptions, EBITDA projections and debt and cost projections.

(e) Officer’s Certificates. At the time of the delivery of the financial statements provided for in Sections 9.01(a) and (b), a compliance certificate from the chief financial officer of the Borrower in the form of Exhibit I certifying on behalf of the Borrower that, to such officer’s knowledge after due inquiry, no Default or Event of Default has occurred and is continuing or, if any Default or Event of Default has occurred and is continuing, specifying the nature and extent thereof, which certificate shall (i) set forth in reasonable detail the calculations required to establish whether the Credit Parties were in compliance with the provisions of the Financial Covenants at the end of such fiscal quarter or year, as the case may be, and (ii) certify that there have been no changes to any of Schedule VII and Annex A of the Pledge Agreement, in each case since the Effective Date or, if later, since the date of the most recent certificate delivered pursuant to this Section 9.01(e), or if there have been any such changes, a list in reasonable detail of such changes (but, in each case with respect to this clause (ii), only to the extent that such changes are required to be reported to the Collateral Agent pursuant to the terms of such Security Documents) and whether the Credit Parties have otherwise taken all actions required to be taken by them pursuant to such Security Documents in connection with any such changes.

 

(f) Notice of Default, Litigation or Event of Loss. Promptly, and in any event within three Business Days after the Borrower or any of its Subsidiaries obtains knowledge thereof, notice of (i) the occurrence of any event which constitutes a Default or an Event of Default, which notice shall specify the nature thereof, the period of existence thereof and what action the Borrower proposes to take with respect thereto, (ii) any litigation or governmental investigation or proceeding pending or threatened (x) against the Borrower or any of its Subsidiaries which, either individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect or (y) with respect to the Transaction or any Credit Document, (iii) any event of loss in respect of any vessel and (iv) any other event, change or circumstance that has had, or could reasonably be expected to have, a Material Adverse Effect.

 

(g) Environmental Matters. As soon as possible, and in any event within ten Business Days after, the Borrower or any of its Subsidiaries obtains knowledge thereof, written notice of any of the following environmental matters occurring after the Effective Date, except to the extent that such environmental matters could not, either individually or in the aggregate, be reasonably expected to have a Material Adverse Effect:

 

(i) any Environmental Claim pending or threatened in writing against the Borrower or any of its Subsidiaries or any vessel or Real Property owned, operated or occupied by the Borrower or any of its Subsidiaries; 

(ii) any condition or occurrence on or arising from any vessel or Real Property owned, operated or occupied by the Borrower or any of its Subsidiaries that (a) results in noncompliance by the Borrower or such Subsidiary with any applicable Environmental Law or (b) could reasonably be expected to form the basis of an Environmental Claim in excess of $5,000,000 against the Borrower or any of its Subsidiaries or any such vessel or Real Property;

 

(iii) any condition or occurrence on any vessel or Real Property owned, operated or occupied by the Borrower or any of its Subsidiaries that could reasonably be expected to cause such vessel or Real Property to be subject to any restrictions on the ownership, occupancy, use or transferability by the Borrower or such Subsidiary of such vessel or Real Property under any Environmental Law; and 

(iv) the taking of any removal or remedial action in response to the actual or alleged presence of any Hazardous Material on any vessel or Real Property owned, operated or occupied by the Borrower or any of its Subsidiaries as required by any Environmental Law or any governmental or other administrative agency; provided that in any event the Borrower shall deliver to the Administrative Agent all notices received by the Borrower or any of its Subsidiaries from any government or governmental agency under, or pursuant to, CERCLA or OPA that identify the Borrower or any of its Subsidiaries as potentially responsible parties for remediation costs or otherwise notify the Borrower or any of its Subsidiaries of potential liability under CERCLA or OPA, as the case may be.

 

All such notices shall reasonably describe the nature of the claim, investigation, condition, occurrence or removal or remedial action and the Borrower’s or such Subsidiary’s response thereto. In addition, the Borrower will provide the Administrative Agent such reasonable additional information as may be requested by the Administrative Agent or the Required Lenders. 

(h) Other Information. Promptly after the filing or delivery thereof, copies of any filings and registrations with, and reports to, the SEC by the Borrower or any of its Subsidiaries and copies of all financial statements, proxy statements, notices and reports as the Borrower or any of its Subsidiaries shall send generally to holders of their Capital Stock or of any of its Indebtedness (including the Senior Notes), in their capacity as such holders (to the extent not theretofore delivered to the Lenders pursuant to this Agreement) and, with reasonable promptness, such other information or documents (financial or otherwise) as the Administrative Agent on its own behalf or on behalf of the Required Lenders may reasonably request from time to time.

 

9.02 Books, Records and Inspections. The Borrower will, and will cause each of its Subsidiaries to, keep proper books of record and account in which full, true and correct entries, in conformity in all material respects with GAAP and all requirements of law, shall be made of all dealings and transactions in relation to its business. The Borrower will, and will cause each of its Subsidiaries to, permit officers and designated representatives of the Administrative Agent and the Lenders as a group to visit and inspect, under guidance of officers of the Borrower or any of its Subsidiaries, any of the properties of the Borrower or its Subsidiaries, and to examine the books of account of the Borrower or such Subsidiaries and discuss the affairs, finances and accounts of the Borrower or such Subsidiaries with, and be advised as to the same by, its and their officers and independent accountants, all upon reasonable advance notice and at such reasonable times and intervals and to such reasonable extent as the Administrative Agent or such Lender may request; provided that, so long as no Event of Default has occurred and is continuing, such visits, inspections and examination shall occur no more frequently that once per calendar year 

9.03 Maintenance of Property; Insurance. The Borrower will, and will cause each of its Subsidiaries to, (i) keep all material property necessary to its business in good working order and condition (ordinary wear and tear and loss or damage by casualty or condemnation excepted), (ii) maintain with financially sound and reputable insurance companies insurance on its properties in at least such amounts and against all such risks as is consistent and in accordance with normal industry practice for similarly situated insureds and (iii) furnish to the Administrative Agent, at the written request of the Administrative Agent or any Lender, a complete description of the material terms of insurance carried. 

9.04 Existence; Franchises. The Borrower will, and will cause each of its Subsidiaries to, do or cause to be done all things necessary to preserve and keep in full force and effect its existence and its material rights, franchises, licenses, permits, copyrights, trademarks and patents (if any) used in its business; provided, however, that nothing in this Section 9.04 shall prevent (i) sales or other dispositions of assets, consolidations, mergers, dissolutions or liquidations by or involving the Borrower or any of its Subsidiaries which are permitted in accordance with Section 10.02 or (ii) the withdrawal by the Borrower or any of its Subsidiaries of its qualification as a foreign corporation, partnership or limited liability company, as the case may be, in any jurisdiction if such withdrawal could not, either individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. 

9.05 Compliance with Statutes, etc. The Borrower will, and will cause each of its Subsidiaries to, comply with all applicable statutes, regulations and orders of, and all applicable restrictions imposed by, all governmental bodies, domestic or foreign, in respect of the conduct of its business and the ownership of its property (including applicable statutes, regulations, orders and restrictions relating to environmental standards and controls), except such non-compliances as could not, either individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. 

9.06 Compliance with Environmental Laws. The Borrower will, and will cause each of its Subsidiaries to, comply with all applicable Environmental Laws, except such non-compliances as could not, either individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, comply in all material respects with all permits issued pursuant to Environmental Laws applicable to, or required by, the ownership or use of any vessel or Real Property now or hereafter owned, operated or occupied by the Borrower or any of its Subsidiaries (except such non-compliances as could not, either individually or in the aggregate, reasonably be expected to have a Material Adverse Effect), and will pay or cause to be paid all costs and expenses incurred in connection with maintaining such compliance (except to the extent being contested in good faith), and will keep or cause to be kept each such vessel and all such Real Property free and clear of any Liens imposed pursuant to such Environmental Laws (other than Liens arising from any cost or other obligation arising under Environmental Law that the Borrower or such Subsidiary is contesting in good faith). Neither the Borrower nor any of its Subsidiaries will generate, use, treat, store, release or dispose of, or permit the generation, use, treatment, storage, release or disposal of, Hazardous Materials on any vessel or Real Property now or hereafter owned or operated or occupied by the Borrower or any of its Subsidiaries, or transport or permit the transportation of Hazardous Materials to or from any ports, vessels or Real Properties except in compliance in all material respects with all applicable Environmental Laws. The Borrower will, and will cause each of its Subsidiaries to, maintain insurance on 

the vessels and Real Properties owned, leased or operated by it in at least such amounts as are in accordance with normal industry practice for similarly situated insureds, against losses from oil spills and other environmental pollution. 

9.07 ERISA. As soon as possible and, in any event, within ten (10) days after any Credit Party or any ERISA Affiliate knows or has reason to know of the occurrence of any of the following, the Borrower will deliver to each of the Lenders a certificate of the chief financial officer of the Borrower setting forth the full details as to such occurrence and the action, if any, that such Credit Party or ERISA Affiliate is required or proposes to take, together with any notices required or proposed to be given or filed by such Credit Party, the Plan administrator or such ERISA Affiliate to or with any government agency, or a Plan participant and any notices received by such Credit Party or ERISA Affiliate from any government agency, or a Plan participant with respect thereto: that any material contribution required to be made with respect to a Plan or Foreign Pension Plan has not been timely made; or any Credit Party may incur any material liability pursuant to any employee welfare benefit plan (as defined in Section 3(1) of ERISA) that provides benefits to retired employees or other former employees (other than as required by Section 601 of ERISA) or any Plan or any Foreign Pension Plan, or with respect to a group health plan (as defined in Section 607(1) of ERISA, Section 4980B(g)(2) of the Code or 45 Code of Federal Regulations Section 160.103) under Section 4980B of the Code and/or the Health Insurance Portability and Accountability Act of 1996. Upon request by the Administrative Agent or any Lender, the Borrower will deliver to the Administrative Agent or each such Lender, as the case may be, a complete copy of the annual report (on Internal Revenue Service Form 5500-series) of each Plan (including, to the extent required, the related financial and actuarial statements and opinions and other supporting statements, certifications, schedules and information) required to be filed with the Internal Revenue Service and all communications received by the Borrower, any Subsidiary of the Borrower or any ERISA Affiliate from the IRS or any other government agency with respect to each Plan of the Borrower, any Subsidiary of the Borrower or any ERISA Affiliate. In addition to any certificates or notices delivered to the Lenders pursuant to the first sentence hereof, copies of any records, documents or other information required to be furnished to any government agency, and any notices received by any Credit Party or any ERISA Affiliate with respect to any Plan or Foreign 

Pension Plan from any government or governmental agency shall be delivered to the Lenders no later than ten (10) days after the date such records, documents and/or information has been furnished to any government agency or such notice has been received by the Borrower, the Subsidiary or the ERISA Affiliate, as applicable. Each Credit Party shall ensure that all Foreign Pension Plans administered by it obtain or retain (as applicable) registered status under and as required by applicable law and are administered in a timely manner in all respects in compliance with all applicable laws except where the failure to do any of the foregoing would not be reasonably likely to result in a Material Adverse Effect. 

9.08 End of Fiscal Years; Fiscal Quarters. The Borrower will cause (x) each of its, and each of its Subsidiaries’, fiscal years to end on December 31st of each year and (y) fiscal quarters to end on March 31, June 30, September 30 and December 31. 

9.09 Performance of Obligations. The Borrower will, and will cause each of its Subsidiaries to, perform all of its obligations under the terms of each mortgage, indenture, security agreement, loan agreement or credit agreement and each other agreement, contract or instrument by which it is bound, except such non-performances as could not, either individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. 

9.10 Payment of Taxes. The Borrower will, and will cause each of its Subsidiaries to pay and discharge, all taxes, assessments and governmental charges or levies imposed upon it or upon its income or profits, or upon any properties belonging to it, in each case on a timely basis, and all lawful claims which, if unpaid, might become a Lien or charge upon any properties of the Borrower and any of its Subsidiaries not otherwise permitted under Section 10.01; provided that neither the Borrower nor any of its Subsidiaries shall be required to pay any such tax, assessment, charge, levy or claim which is being contested in good faith and by proper proceedings if it has maintained adequate reserves with respect thereto in accordance with GAAP.

 

9.11 Additional Security; Additional Guarantors; Further Assurances. (a) Each Credit Party shall, at any time and from time to time, at the expense of such Credit Party, promptly execute and deliver all further instruments and documents, and take all further action, that may be reasonably necessary, or that the Administrative Agent may reasonably require, to perfect and protect any Lien granted or purported to be granted under the Security Documents, or to enable the Collateral Agent to exercise and enforce its rights and remedies with respect to any Collateral. Without limiting the generality of the foregoing, the Borrower will execute and file, or cause to be filed, such financing or continuation statements under the UCC (or any non-U.S. equivalent thereto), or amendments thereto, and such other instruments or notices, as may be reasonably necessary, or that the Administrative Agent may reasonably require, to protect and preserve the Liens granted or purported to be granted hereby and by the other Credit Documents. 

(b) Each Credit Party hereby authorizes the Collateral Agent to file one or more financing or continuation statements under the UCC (or any non-U.S. equivalent thereto), and amendments thereto, relative to all or any part of the Collateral without the signature of such Credit Party, where permitted by law. The Collateral Agent will promptly send such Credit Party a copy of any financing or continuation statements which it may file without the signature of such Credit Party and the filing or recordation information with respect thereto. 

(c) The Borrower will cause each Subsidiary of the Borrower which owns any direct or indirect interest in Trico Marine Assets, Inc. or Trico Marine Operators, Inc. or which owns any direct interest in Trico Marine Cayman, L.P., in each case, promptly following such Subsidiary’s acquisition of such interest, to execute and deliver a counterpart to the Guaranty and the Pledge Agreement (or, if requested by the Administrative Agent, a joinder agreement in respect of the Guaranty and the Pledge Agreement) and, in connection therewith, promptly execute and deliver all further instruments, and take all further action, that the Administrative Agent may reasonably require (including, without limitation, the provision of officers’ certificates, resolutions, good standing certificates and opinions of counsel), in each case to the reasonable satisfaction of the Administrative Agent. 

9.12 Use of Proceeds. The Borrower will use Letters of Credit and the proceeds of the Revolving Loans only as provided in Section 8.08.

9.13 Ownership of Credit Parties. The Borrower shall directly or indirectly own 100% of the Capital Stock or other equity interests of each other Credit Party. 

SECTION 10. Negative Covenants. The Borrower hereby covenants and agrees that on and after the Effective Date and thereafter for so long as this Agreement is in effect and until the Total Commitment has been terminated, no Letters of Credit or Revolving Notes are outstanding and all Revolving Loans, together with interest, Fees and all other Obligations (other than any indemnities described in Section 14.13 which are not then due and payable) incurred hereunder and thereunder, are paid in full: 

10.01 Liens. The Borrower will not, and will not permit any of its Subsidiaries to, create, incur, assume or suffer to exist any Lien upon or with respect to any property or assets (real or personal, tangible or intangible) of the Borrower or any of its Subsidiaries, whether now owned or hereafter acquired, or sell any such property or assets subject to an understanding or agreement, contingent or otherwise, to repurchase such property or assets (including sales of accounts receivable with recourse to the Borrower or any of its Subsidiaries), or collaterally assign any right to receive income or permit the filing of any financing statement under the UCC or any other similar notice of Lien under any similar recording or notice statute; provided that the provisions of this Section 10.01 shall not prevent the creation, incurrence, assumption or existence of the following (Liens described below are herein referred to as “Permitted Liens”): 

(i) inchoate Liens for taxes, assessments or governmental charges or levies not yet due or Liens for taxes, assessments or governmental charges or levies being contested in good faith and by appropriate proceedings for which adequate reserves have been established in accordance with GAAP; 

(ii) Liens in respect of property or assets of the Borrower or any of its Subsidiaries imposed by law, which were incurred in the ordinary course of business and do not secure Indebtedness for borrowed money, such as maritime privileges, carriers’, warehousemen’s, materialmen’s and mechanics’ liens and other similar Liens which are in existence less than 120 days from the date of creation thereof, and (x) which do not in the aggregate materially detract from the value of the Borrower’s or such Subsidiary’s property or assets or materially impair the use thereof in the operation of the business of the Borrower or such Subsidiary or (y) which are being contested in good faith by appropriate proceedings, which proceedings have the effect of preventing the forfeiture or sale of the property or assets subject to any such Lien; 

(iii) Liens in existence on the Effective Date which are listed, and the property subject thereto described, in Schedule VIII, and any refinancing, renewals, replacements and extensions thereof, provided that the aggregate principal amount of the Indebtedness, if any, secured by such Liens does not exceed the amount permitted under Section 10.04(iii); 

(iv) Liens created pursuant to the Security Documents; 

(v) Liens upon assets of the Borrower or any of its Subsidiaries subject to Capitalized Lease Obligations to the extent such Capitalized Lease Obligations are permitted by Section 10.04 (iv), provided that, except as otherwise permitted by clause (xvii) of this Section 10.01, (x) such Liens only serve to secure the payment of Indebtedness arising under such Capitalized Lease Obligation and (y) the Lien encumbering the asset giving rise to the Capitalized Lease Obligation does not encumber any other asset of the Borrower or any Subsidiary of the Borrower; 

(vi) Liens placed upon Real Property, equipment, machinery or vessels (including, in each case, any accounts receivable and other general intangibles associated therewith) acquired or constructed after the Effective Date and used in the ordinary course of business of the Borrower or any of its Subsidiaries and placed at the time of the acquisition or construction thereof by the Borrower or such Subsidiary or within 270 days after such acquisition or the completion of such construction, as the case may be, to secure Indebtedness incurred to pay all or a portion of the purchase price or construction cost thereof or to secure Indebtedness incurred solely for the purpose of financing the acquisition or construction of any such equipment, machinery or vessels or extensions, renewals or replacements of any of the foregoing for the same or a lesser amount, provided that, except as otherwise permitted by clause (xvii) of this Section 10.01, (x) the Indebtedness secured by such Liens is permitted by Section 10.04(v) and (y) in all events, the Lien encumbering the equipment, machinery or vessels (and related accounts receivable and other general intangibles) so acquired or constructed does not encumber any other asset of the Borrower or any of its Subsidiaries and, provided further that individual financings of equipment, machinery or vessels by a single lender or a group of co-lenders may be cross-collateralized to other financings of equipment, machinery or vessels provided solely by such lender or group of lenders; 

(vii) zoning restrictions, easements, trackage rights, leases (other than Capital Leases), licenses, special assessments, rights-of-way, restrictions, encroachments and other similar charges or encumbrances, and minor title deficiencies, in each case not securing Indebtedness and not materially interfering with the ordinary conduct of the business of the Borrower or any of its Subsidiaries;

(viii) Liens arising from precautionary UCC financing statement filings regarding operating leases entered into in the ordinary course of business; 

(ix) Liens arising out of the existence of judgments or awards in respect of which the Borrower or any of its Subsidiaries shall in good faith be prosecuting an appeal or proceedings for review and in respect of which there shall have been secured a subsisting stay of execution pending such appeal or proceedings, provided that the aggregate amount of all cash (including the stated amount of all letters of credit) and the fair market value of all other property subject to such Liens does not exceed $20,000,000 at any time outstanding; 

(x) statutory and common law landlords’ liens under leases to which the Borrower or any of its Subsidiaries is a party; 

(xi) deposits or pledges required in the ordinary course of business in connection with, or to secure payment of, payroll taxes, workmen’s compensation, unemployment insurance, old age pensions or other social security obligations (other than any Lien imposed by ERISA) and Liens securing the performance of bids, tenders, leases and contracts in the ordinary course of business, statutory obligations, surety bonds, performance bonds and other obligations of a like nature incurred in the ordinary course of business and consistent with past practice, provided that, in each case, such Liens (I) do not encumber any Collateral, (II) do not secure the payment of Indebtedness and (III) do not in the aggregate impair in any material respect the use of the property of the Borrower or any of its Subsidiaries in the operation of their business; 

(xii) Permitted Encumbrances; 

(xiii) Liens on assets of Trico Subsea AS and the Subsidiaries thereof securing the obligations of

Trico Subsea AS under the Trico Subsea AS Credit Agreement; 

(xiv) Liens for crew’s wages, for wages of stevedores or for general average, salvage (including contract salvage) or collision; (xv) Liens in favor of customs and revenue authorities arising as a matter of law to secure payment of customs duties in connection with the importation of goods; 

(xvi) Liens arising out of the sale and lease-back transactions permitted under Section 10.02, so long as such Liens attach only to the property sold and being leased in such transaction and any accessions thereto or proceeds thereof and related property; and 

(xvii) Liens (other than Liens on any of the Collateral) not otherwise permitted pursuant to this Section 10.01 which secure obligations permitted under this Agreement (other than Indebtedness for, or in respect of, borrowed money) not exceeding $5,000,000 in the aggregate at any time outstanding and which apply to property and/or assets with an aggregate fair market value (as determined by the Borrower in good faith) not to exceed at any time the amount referenced above in this clause (xvii). 

In connection with the granting of Liens described in clauses (v) and (vi) above by the Borrower or any of its Subsidiaries, the Administrative Agent and the Collateral Agent shall be authorized to take any actions deemed appropriate by it in connection therewith (including, without limitation, by executing appropriate lien releases or lien subordination agreements in favor of the holder or holders of such Liens, in either case solely with respect to the item or items of equipment or other assets subject to such Liens). 

10.02 Consolidation, Merger, Purchase or Sale of Assets, etc. The Borrower will not, and will not permit any of its Subsidiaries to, wind up, liquidate or dissolve its affairs or enter into any partnership, joint venture, or transaction of merger or consolidation, or convey, sell, lease, charter or otherwise dispose of all or any part of its property or assets, or any of the Collateral or enter into any sale-leaseback transactions, except that:

(i) (x) Investments by the Borrower and its Subsidiaries shall be permitted in accordance with Section 10.05 and (y) Capital Expenditures by the Subsidiaries of the Borrower shall be permitted to the extent not in violation of Section 10.07; 

(ii) the Subsidiaries of the Borrower may sell any asset, including vessels (and  any related equipment and spare parts), provided that (x) no Default or Event of Default is then in existence or would result from each such sale, (y) each such sale is made at least at fair market value (as determined in good faith by the chief executive officer or the chief financial officer of 

the Borrower) and (z) other than in the case of transfers to joint ventures for purposes of employment of vessels in Mexico or Brazil, 75% of the consideration in respect of each such sale shall consist of cash or Cash Equivalents received by the respective Subsidiary of the Borrower which owned such vessel on the date of consummation of each such sale, provided that for purposes of the 75% cash or Cash Equivalent consideration requirement in the foregoing clause (z), (a) the amount of any Indebtedness of the Borrower or any Subsidiary (as shown on the Borrower’s or such Subsidiary’s most recent balance sheet or in the notes thereto) that is assumed by the transferee of any such assets and (b) the amount of any trade-in value applied to the purchase price of any replacement assets acquired in connection with such sale transfer or disposition shall be deemed to be cash; 

(iii) any Subsidiary of the Borrower may lease (as lessee) or license (as licensee) real or personal property (so long as any such lease or license does not create a Capitalized Lease Obligation except to the extent permitted by Section 10.04(iv)); 

(iv) any Subsidiary of the Borrower may sell or discount, in each case without recourse and in the ordinary course of business, overdue accounts receivable arising in the ordinary course of business, but only in connection with the compromise or collection thereof consistent with customary industry practice (and not as part of any bulk sale or financing transaction); 

(v) the Borrower or any Subsidiary may sell or otherwise transfer all or any part of its business, properties or assets to the Borrower or any Guarantor, in each case so long as all actions necessary or desirable to preserve, protect and maintain the security interest and Lien of the Collateral Agent in any Collateral involved in any such transaction are taken to the reasonable satisfaction of the Collateral Agent; 

(vi) any Subsidiary of the Borrower may merge with and into, or be dissolved or liquidated into, the Borrower, any Guarantor or any other Subsidiary of the Borrower, so long as (w) in the case of any such merger, dissolution or liquidation involving the Borrower, the Borrower is the surviving corporation of any such merger, dissolution or liquidation, (x) except as provided in preceding clause (w), in the cases of any such merger, dissolution or liquidation involving a Guarantor, a Guarantor is the surviving corporation of any such merger, dissolution or liquidation, (y) in the case of any such merger, dissolution or liquidation involving Subsidiaries of the Borrower that are not Credit Parties, a Subsidiary of the Borrower is the surviving corporation of any such merger, dissolution or liquidation, and (z) in all cases, the security interests granted to the Collateral Agent for the benefit of the Secured Creditors pursuant to the Security Documents shall remain in full force and effect and perfected (to at least the same extent as in effect immediately prior to such merger, dissolution or liquidation);

(vii) any Subsidiary of the Borrower may enter into demise, bareboat, time, voyage and other charter or lease arrangements pursuant to which any such Subsidiary charters or leases out a vessel to another Subsidiary of the Borrower or to a third Person, in each case so long as (x) such arrangements are entered into in the ordinary course of business and (y) such arrangements do not materially impair the value of the vessel or vessels subject to such arrangements; 

(viii) any Foreign Subsidiary of the Borrower that is not a Credit Party may sell or otherwise transfer all or any part of its business, properties or assets to any Wholly-Owned Foreign Subsidiary of the Borrower; 

(ix) any Subsidiary of the Borrower may sell obsolete or worn-out equipment or materials in the ordinary course of business; 

(x) any Subsidiary of the Borrower may enter into sale-leaseback transactions provided that the aggregate remaining present value outstanding under the leases relating to such sale-leaseback transactions entered into pursuant to this clause (x) does not exceed at any one time outstanding $4,000,000; and 

(xi) sales, transfers, leases or other dispositions of assets by each Credit Party not otherwise permitted by this Section 10.02; provided that the aggregate gross proceeds of any or alls assets sold, transferred, leased or otherwise disposed of in reliance upon this paragraph (xi) shall not exceed during any fiscal year $5,000,000. 

To the extent the Required Lenders waive the provisions of this Section 10.02 with respect to the sale of any Collateral, or any Collateral is sold as permitted by this Section 10.02, such Collateral (unless sold to either Borrower or a Subsidiary of the Borrower) shall be sold free and clear of the Liens created by the Security Documents, and the Administrative Agent and Collateral Agent shall be authorized to take any actions deemed appropriate in order to effect the foregoing. Notwithstanding anything to the contrary contained above in this Section 10.02, in no event shall the Borrower of any of its Subsidiaries sell, lease or otherwise dispose of assets otherwise permitted under this Section 10.02 that, in the aggregate, constitute all or any substantial part of the assets of the Borrower and its Subsidiaries taken as a whole, provided that this sentence shall not apply to sales, leases and other dispositions otherwise permitted pursuant to Sections 10.02(v), (vi) and (viii). 

10.03 Dividends. The Borrower will not, and will not permit any of its Subsidiaries to, authorize, declare or pay any Dividends with respect to the Borrower or any of its Subsidiaries, except that: 

(i) any Subsidiary of the Borrower may pay cash Dividends to the Borrower or to any other Wholly-Owned Subsidiary of the Borrower which is a Credit Party and any Subsidiary of the Borrower which is not a Guarantor also may pay cash Dividends to a Wholly-Owned Subsidiary of the Borrower; 

(ii) any non-Wholly-Owned Subsidiary of the Borrower may pay cash Dividends to its shareholders generally so long as the Borrower or its respective Subsidiary which owns the equity interest in the Subsidiary paying such Dividends receives at least its proportionate share thereof (based upon its relative holding of the equity interest in such Subsidiary paying such Dividends and taking into account the relative preferences, if any, of the various classes of equity interests of such Subsidiary); 

(iii) the Borrower may pay Dividends on its Qualified Preferred Interests solely through the issuance of additional shares of its Qualified Preferred Interests but not in cash; and 

(iv) the Borrower may pay Dividends, provided that (x) no Default or Event of Default exists at the time of payment thereof or after giving effect thereto and (y) the aggregate amount of Dividends paid pursuant to this clause (iv) shall not exceed an amount equal to 50% of the Consolidated Net Income of the Borrower for the period commencing on January 1, 2008 and ending on the last day of the fiscal quarter ended prior to the date of payment for which financial statements have been provided to the Administrative Agent pursuant to Section 9.01(a) or (b). 

10.04 Indebtedness. The Borrower will not, and will not permit any of its Subsidiaries to, contract, create, incur, assume or suffer to exist any Indebtedness, except: 

(i) Indebtedness incurred pursuant to this Agreement and the other Credit Documents; 

(ii) Indebtedness under (x) Interest Rate Protection Agreements which are nonspeculative in nature and are entered into with respect to other Indebtedness permitted to remain outstanding or be incurred, as the case may be, pursuant to this Section 10.04, and (y) Indebtedness evidenced by Other Hedging Agreements entered into pursuant to Section 10.05(vi); 

(iii) (A) Existing Indebtedness listed on Schedule V (including Indebtedness incurred pursuant to commitments listed thereon) and (B) Indebtedness issued to refinance or replace any such Existing Indebtedness, provided that (I) the obligor or obligors on the Existing Indebtedness so refinanced or replaced is the obligor or obligors on such refinancing or replacement 

Indebtedness, (II) the principal amount of the Indebtedness issued to refinance or replace such Existing Indebtedness is not increased beyond the greater of (x) the sum of (m) the amount outstanding thereunder, including accrued and unpaid interest, fees, expenses and other charges, on the date of such refinancing or replacement (and, in the case of revolving credit facilities, the maximum amount available for borrowing thereunder is not increased above the amount in place on the Effective Date (as such amount may have been reduced as provided in preceding clause (A))) plus (n) reasonable fees and expenses incurred in connection with such refinancing or replacement and (y) the lesser of 60% of the appraised fair market value of the assets securing such Existing Indebtedness and the amount of Indebtedness which could be incurred, such that the Borrower would be in compliance with the Financial Covenants on a pro forma basis after giving effect to the incurrence thereof, (III) such Indebtedness is not secured other than by Liens on the assets of the Borrower or any Subsidiary of the Borrower which were previously subject to Liens securing the Existing Indebtedness being refinanced or replaced as permitted by Section 10.01(iii) or Liens otherwise permitted under Section 10.01(xvii), and (IV) at the time of, and immediately after giving effect to, the incurrence of such refinancing or replacement Indebtedness, no Default or Event of Default shall be in existence; 

(iv) Indebtedness of any Subsidiary of the Borrower evidenced by Capitalized Lease Obligations, provided that (x) at the time of, and after giving effect thereto, no Default or Event of Default shall be in existence and (y) in no event shall the sum of the aggregate principal amount of all Capitalized Lease Obligations permitted by this clause (iv) exceed $25,000,000 at any time outstanding; 

(v) purchase money Indebtedness of the Borrower or any Subsidiary described in Section 10.01(vi), provided that (x) no Default or Event of Default exists at the time of the incurrence thereof and after giving effect thereto and after giving effect thereto and (y) after giving effect to the incurrence thereof the Borrower is in compliance with the Financial Covenants on a pro forma basis; 

(vi) unsecured Indebtedness of the Borrower and the Guarantors, provided that (x) no Default or Event of Default exists at the time of the incurrence thereof and after giving effect thereto and (y) after giving effect to the incurrence thereof the Borrower is in compliance with the Financial Covenants on a pro forma basis; 

(vii) intercompany Indebtedness to the extent permitted by Section 10.05(vii); 

(viii) (x) Contingent Obligations of any Subsidiary of the Borrower (other than the Borrower and the Guarantors) with respect to Indebtedness and lease obligations of any other Subsidiary of the Borrower otherwise permitted under this Agreement and (y) Contingent Obligations of the Borrower and the Guarantors in the form of guaranties of Indebtedness of their Subsidiaries permitted under Sections 10.04(iv) and (xv) and of obligations of their Subsidiaries under operating leases entered into in the ordinary course of business; 

(ix) Indebtedness of any Subsidiary of the Borrower with respect to performance bonds, surety bonds, appeal bonds or customs bonds required in the ordinary course of business or in connection with the enforcement of rights or claims of the Borrower or any of its Subsidiaries, provided that the aggregate outstanding amount of all such performance bonds, surety bonds, appeal bonds and customs bonds permitted by this subsection (ix) shall not at any time exceed $10,000,000; 

(x) Indebtedness under operating leases entered into in the ordinary course of business; 

(xi) Indebtedness under the Senior Notes; 

(xii) intercompany Indebtedness existing under the Trico Supply Intercompany Loan Documentation and the Trico Cayman Intercompany Loan; 

(xiii) indebtedness consisting of the financing of insurance premiums; 

(xiv) Indebtedness of Trico Subsea AS and its Subsidiaries and Trico Supply AS and Trico Supply under the Trico Subsea AS Credit Agreement provided that in no event shall the aggregate principal amount thereof exceed $100,000,000 less the amount of permanent principal payments thereunder; and 

(xv) so long as no Default or Event of Default then exists or would result therefrom, additional Indebtedness of the Subsidiaries of the Borrower not to exceed $5,000,000 in aggregate principal amount at any time outstanding, which Indebtedness shall be unsecured. 

10.05 Advances, Investments and Loans. The Borrower will not, and will not permit any of its Subsidiaries to, directly or indirectly, lend money or credit or make advances to any Person, or purchase or acquire any stock, obligations or securities of, or any other interest in, or make any capital contribution to, any other Person, or purchase or own a futures contract or otherwise become liable for the purchase or sale of currency or other commodities at a future date in the nature of a futures contract (each of the foregoing an “Investment” and, collectively, “Investments”), except that the following shall be permitted: 

(i) the Subsidiaries of the Borrower may acquire and hold accounts receivables owing to any of them; 

(ii) the Subsidiaries of the Borrower may acquire and hold cash and Cash Equivalents; 

(iii) the Borrower and its Subsidiaries may hold the Investments held by them on the Effective Date and described on Schedule X, provided that such Investments may be renewed or reinvested upon the expiration or maturity thereof, and provided further that any additional Investments made with respect thereto shall be permitted only if permitted under the other provisions of this Section 10.05; 

(iv) the Subsidiaries of the Borrower may acquire and own investments (including debt obligations) received in connection with the bankruptcy or reorganization of suppliers and customers and in good faith settlement of delinquent obligations of, and other disputes with, customers and suppliers arising in the ordinary course of business;

(v) the Borrower and its Subsidiaries may make loans and advances to their officers, employees and consultants in the ordinary course of business not to exceed $500,000 in the aggregate at any time outstanding (calculated without regard to write-downs or write-offs thereof) and (ii) advances of payroll payments and expenses to employees in the ordinary course of business;

 

(vi) (x) the Borrower and its Subsidiaries may enter into Interest Rate Protection Agreements to the extent permitted by Section 10.04(ii) and (y) the Subsidiaries of the Borrower may enter into and perform their obligations under Other Hedging Agreements entered into in the ordinary course of business so long as each such Other Hedging Agreement is non-speculative in nature; 

(vii) (A) the Borrower and its Subsidiaries may make intercompany loans and advances between and among one another, (B) Subsidiaries of the Borrower may make intercompany loans and advances to the Borrower and/or the Guarantors and (C) Wholly-Owned Subsidiaries of the Borrower that are not Credit Parties may make intercompany loans and advances between or among one another (collectively referred to herein as “Intercompany Loans”), in each case so long as (x) each Intercompany Loan made to a Credit Party is subject to the provisions of the Intercompany Subordination Agreement (which Intercompany Subordination Agreement must have been executed by the obligor and obligee of each such Intercompany Loan), and (y) the aggregate principal amount of such Intercompany Loans made by the Borrower and the 

Guarantors to Subsidiaries of the Borrower which are not Credit Parties shall not exceed at any one time outstanding the sum of (x) $25,000,000 and (y) the net cash proceeds received by the Borrower after the Effective Date from the issuance of its common Equity Interests; 

(viii) the Borrower and its Subsidiaries may incur Contingent Obligations permitted pursuant to Section 10.04(viii); 

(ix) the Borrower and its Subsidiaries may hold Investments arising out of non-cash consideration for the sale of assets permitted by Section 10.02(ii);

 

(x) Investments permitted pursuant to Section 10.04; 

(xi) the Borrower and its Subsidiaries may acquire equity interests in a Person which immediately after such acquisition and the related transactions becomes a Subsidiary of the Borrower, provided that (x) no Default or Event of Default exists at the time thereof or after giving effect thereto and (y) after giving effect thereto, the Borrower will be in compliance with the Financial Covenants on a pro forma basis; and 

(xii) so long as no Default or Event of Default then exists or would result therefrom, the Subsidiaries of the Borrower may make cash capital contributions and/or loans to joint ventures and other Subsidiaries of the Borrower that are not Credit Parties in an aggregate amount not to exceed $10,000,000 in any fiscal year of the Borrower. 

10.06 Transactions with Affiliates. The Borrower will not, and will not permit any of its Subsidiaries to, enter into any transaction or series of related transactions with any Affiliate of the Borrower or any of its Subsidiaries, other than in the ordinary course of business and on terms and conditions substantially as favorable to the Borrower or such Subsidiary as would reasonably be obtained by the Borrower or such Subsidiary at that time in a comparable arm’s-length transaction with a Person other than an Affiliate, except that the following in any event shall be permitted:

 

(i) Dividends may be paid to the extent provided in Section 10.03;

(ii)loans may be made and other transactions (including the incurrence of Contingent Obligations) may be entered into by the Borrower and its Subsidiaries to the extent permitted by Sections 10.02, 10.04 and 10.05; 

(iii) customary fees may be paid to non-officer directors of the Borrower and its Subsidiaries; 

(iv) the Borrower and its Subsidiaries may enter into, and may make payments under, employment agreements, employee benefits plans, stock option plans, indemnification provisions and other similar compensatory arrangements (including arrangements made with respect to bonuses) with officers, employees and directors of the Borrower and its Subsidiaries in the ordinary course of business;

 

(v) the Borrower and its Subsidiaries may enter into employment agreements or arrangements with their respective officers and employees in the ordinary course of business; and

 

(vi) other transactions existing on the Effective Date and set forth on Schedule XI. 

10.07 Maintenance Capital Expenditures. The Borrower will not, and will not permit any of its Subsidiaries to, make any Maintenance Capital Expenditures, except that the Subsidiaries of the Borrower may make Maintenance Capital Expenditures in an amount not to exceed $15,000,000 in any fiscal year. 

10.08 Consolidated Leverage Ratio. The Borrower will not permit the Consolidated Leverage Ratio on the last day of any fiscal quarter of the Borrower to be greater than 4:00:1:00.

10.09 Consolidated Net Worth. The Borrower will not permit its Consolidated Net Worth on the last day of any fiscal quarter of the Borrower to be less than (i) 80% of Consolidated Net Worth on the Effective Date plus (ii) 50% of cumulative Consolidated Net Income (if positive) for the period, commencing on January 1, 2008 and ending on the last day of such fiscal quarter plus (iii) 100% of the face amount of any equity interests issued by the Borrower after the Effective Date. 

10.10 Free Liquidity. The Borrower shall maintain at all times Free Liquidity 

of not less than $5,000,000. 

10.11 Limitations on Modifications of Certificate of Incorporation, By-Laws and Certain Other Agreements, etc. The Borrower will not, and will not permit any of its Subsidiaries to: 

(i) amend, modify or change its certificate or articles of incorporation (including, without limitation, by the filing or modification of any certificate or articles of designation), certificate of formation, limited liability company agreement or by-laws (or the equivalent organizational documents), as applicable, or any agreement entered into by it with respect to its Capital Stock or other equity interests, or enter into any new agreement with respect to its Capital Stock or other equity interests, unless such amendment, modification, change or other action contemplated by this clause (iii) could not reasonably be expected to be materially adverse to the interests of the Lenders; 

(ii) amend, modify or change any provision of the Trico Supply Intercompany Loan Documentation, except for amendments to the interest rate and other terms thereof necessary to comply with applicable law or any rule, regulation, judgment or similar act of any governmental authority; or 

(iii) prepay, discharge or forgive all or any portion of the Trico Supply Intercompany Loan, provided that repayments of the Trico Supply Intercompany Loan shall be permitted if after giving effect thereto, the remaining principal balance thereof shall equal or exceed the Total Commitment. 

10.12 Limitation on Certain Restrictions on Subsidiaries. The Borrower will not, and will not permit any of its Subsidiaries to, directly or indirectly, create or otherwise cause or suffer to exist or become effective any encumbrance or restriction on the ability of any such Subsidiary to (a) pay dividends or make any other distributions on its capital stock or any other interest or participation in its profits owned by the Borrower or any of its Subsidiaries, or pay any Indebtedness owed to the Borrower or any of its Subsidiaries, (b) make loans or advances to the Borrower or any of its Subsidiaries or (c) transfer any of its properties or assets to the Borrower or any of its Subsidiaries, except for such encumbrances or restrictions existing under or by reason of (i) applicable law, (ii) this Agreement and the other Credit Documents, the Senior Notes, the Trico Subsea AS Credit Agreement, Trico Cayman Intercompany Loan and the Trico Supply Intercompany Loan Documentation, (iii) customary provisions restricting subletting or assignment of any lease governing any leasehold interest of the Borrower or any of its Subsidiaries, (iv) customary provisions restricting assignment of any agreement entered into by the Borrower or any of its Subsidiaries in the ordinary course of business, (v) restrictions on the transfer of any asset pending the close of the sale of such asset, and (vi) restrictions on the transfer of any asset subject to a Lien permitted by Section 10.01(iii), (v) or (vi). 

10.13 Limitation on Issuance of Capital Stock. (a) The Borrower will not, and will not permit any of its Subsidiaries to, issue (i) any preferred stock or other preferred equity interests, other than Qualified Preferred Interests of the Borrower or (ii) any redeemable common stock or other redeemable common equity interests other than common stock or other redeemable common equity interests that is redeemable at the sole option of the Borrower or such Subsidiary, as the case may be. 

(b) The Borrower will not permit any of its Subsidiaries to issue any Capital Stock or other equity interests (including by way of sales of treasury stock) or any options or warrants to purchase, or securities convertible into, Capital Stock or other equity interests, except (i) for transfers and replacements of then outstanding shares of Capital Stock or other equity interests, (ii) for stock splits, stock dividends and issuances which do not decrease the percentage ownership of the Borrower or any Credit Party in any class of the Capital Stock or other equity interests of such Credit Party, or (iii) to qualify directors to the extent required by applicable law, (iv) for issuances by newly created or acquired Subsidiaries in accordance with the terms of this Agreement. 

10.14 Change of Legal Names; Type of Organization (and whether a Registered Organization); Jurisdiction of Organization etc. No Credit Party will change its legal name, its type of organization, its status as a registered organization (in the case of a registered organization), its jurisdiction of organization, its location, or its organizational identification number (if any), except that any such changes shall be permitted (so long as not in violation of the applicable requirements of the Security Documents and so long as same do not involve (x) a registered organization ceasing to constitute the same, (y) either ceasing to constitute a corporation or (z) changing its jurisdiction of organization or location from the United States or a State thereof to a jurisdiction of organization or location, as the case may be, outside the United 

States or a State thereof) if (i) it shall have given to the Collateral Agent not less than 15 days’ prior written notice of each change to the information listed on Schedule VII (as adjusted for any subsequent changes thereto previously made in accordance with this sentence), together with a supplement to Schedule VII which shall correct all information contained therein for each Credit Party, and (ii) in connection with the respective such change or changes, it shall have taken all action reasonably requested by the Collateral Agent to maintain the security interests of the Collateral Agent in the Collateral intended to be granted hereby at all times fully perfected and in full force and effect. 

10.15 Business. The Borrower will not, and will not permit any of its Subsidiaries to, engage in any business other than any business conducted by the Borrower and its Subsidiaries on the Effective Date and any other business or activities as may be substantially similar, incidental or related thereto. 

10.16 ERISA. The Borrower will not and will not, permit any of its Subsidiaries, nor any ERISA Affiliate, to (i) engage in any “prohibited transaction” within the meaning of Section 406 of ERISA or Section 4975 of the Code which could result in a material liability for the Borrower or any of its Subsidiaries; or (ii) sponsor, maintain, make contributions to or incur liabilities in respect of any Plan which is subject to Title IV of ERISA or Section 302 of ERISA or Section 412 of the Code. 

SECTION 11. Events of Default. Upon the occurrence of any of the following specified events (each an “Event of Default”): 

11.01 Payments. Either the Borrower shall (i) default in the payment when due of any principal of any Revolving Loan or any Revolving Note or (ii) default, and such default shall continue unremedied for more than three Business Days, in the payment when due of any interest on any Revolving Loan or Revolving Note, or any Fees or any other amounts owing hereunder or thereunder; or 

11.02 Representations, etc. Any representation, warranty or statement made or deemed made by any Credit Party herein or in any other Credit Document or in any certificate delivered pursuant hereto or thereto shall prove to be untrue in any material respect on the date as of which made or deemed made; or 

11.03 Covenants. The Borrower or any of its Subsidiaries shall (i) default in the due performance or observance by it of any term, covenant or agreement contained in Sections 9.01(g), 9.08, 9.11(c), 9.12, 9.13 or Section 10 or (ii) default in the due performance or observance by it of any other term, covenant or agreement (other than those referred to in Section 11.01, 11.02 or clause (i) of this Section 11.03) contained in this Agreement and, in the case of this clause (ii), such default shall continue unremedied for a period of 30 days after written notice to the defaulting party by the Administrative Agent or the Required Lenders; or 

11.04 Default Under Other Agreements. (i) The Borrower or any of its Subsidiaries shall default in any payment of any Indebtedness (other than the Obligations) beyond the period of grace, if any, provided in the instrument or agreement under which such Indebtedness was created or (ii) the Borrower or any of its Subsidiaries shall default in the observance or performance of any agreement or condition relating to any Indebtedness (other than the Obligations) or contained in any instrument or agreement evidencing, securing or relating thereto, or any other event shall occur or condition exist, the effect of which default or other event or condition is to cause, or to permit the holder or holders of such Indebtedness (or a trustee or agent on behalf of such holder or holders) to cause (determined without regard to whether any notice is required), any such Indebtedness to become due prior to its stated maturity or, provided that it shall not be a Default or Event of Default under this Section 11.04 unless the aggregate principal amount of all Indebtedness as described in preceding clauses (i) through (ii), inclusive, is at least $10,000,000; or

11.05 Bankruptcy, etc. The Borrower or any of its Subsidiaries shall commence a voluntary case concerning itself under Title 11 of the United States Code entitled “Bankruptcy,” as now or hereafter in effect, or any successor thereto (the “Bankruptcy Code”); or an involuntary case is commenced against the Borrower or any of its Subsidiaries and the petition is not controverted within 10 days after service of summons, or is not dismissed within 60 days, after commencement of the case; or a custodian (as defined in the Bankruptcy Code) is appointed for, or takes charge of, all or substantially all of the property of the Borrower or any of its Subsidiaries or the Borrower or any of its Subsidiaries commences any other proceeding under any reorganization, arrangement, adjustment of debt, relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction whether now or hereafter in effect relating to the Borrower or any of its Subsidiaries or there is commenced against the Borrower or any of its Subsidiaries any such proceeding which remains undismissed for a period of 60 days, or the Borrower or any of its Subsidiaries is adjudicated insolvent or bankrupt; or any order of relief or other order approving any such case or proceeding is entered; or the Borrower or any of its Subsidiaries suffers any appointment of any custodian or the like for it or any substantial part of its property to continue undischarged or unstayed for a period of 60 days; or the Borrower or any of its Subsidiaries makes a general assignment for the benefit of creditors; or any corporate action is taken by the Borrower or any of its Subsidiaries for the purpose of effecting any of the foregoing; or 

11.06 ERISA. (a) A contribution required to be made with respect to a Plan or a Foreign Pension Plan is not timely made, or the Borrower or any of its Subsidiaries has incurred or is reasonably likely to incur liabilities pursuant to one or more employee welfare benefit plans (as defined in Section 3(1) of ERISA) that provide benefits to retired employees or other former employees (other than as required by Section 601 of ERISA) or Plans or Foreign Pension Plans, or the Borrower or any of its Subsidiaries has incurred or is reasonably likely to incur any liability on account of a group health plan (as defined in Section 607(1) of ERISA, Section 4980B(g)(2) of the Code or 45 Code of Federal Regulations Section 160.103) under Section 4980B of the Code and/or the Health Insurance Portability and Accountability Act of 1996; (b) there shall result from any such event or events the imposition of a lien, the granting of a security interest, or a liability or a material risk of incurring a liability; and (c) such lien, security interest or liability, individually and/or in the aggregate, in the opinion of the Required Lenders, has had, or could reasonably be expected to have, a Material Adverse Effect; or 

11.07 Security Documents. At any time after the execution and delivery thereof, any of the Security Documents shall cease to be in full force and effect, or shall cease in to give the Collateral Agent for the benefit of the Secured Creditors the Liens, rights, powers and privileges purported to be created thereby (including, without limitation, a perfected security interest in, and Lien on, all of the Collateral), in favor of the Collateral Agent, superior to and prior to the rights of all third Persons (except in connection with Permitted Liens), and subject to no other Liens (except Permitted Liens); or 

11.08 Guaranties. The Guaranty or any provision thereof shall cease to be in full force and effect, or any Guarantor or any Person acting by or on behalf of such Guarantor shall deny or disaffirm such Guarantor’s obligations under the Guaranty or any Guarantor shall default in the due performance or observance of any term, covenant or agreement on its part to be performed or observed pursuant to the Guaranty; or 

11.09 Judgments. One or more judgments or decrees shall be entered against the Borrower or any of its Subsidiaries involving in the aggregate for the Borrower and its Subsidiaries a liability (not paid or fully covered by a reputable and solvent insurance company) and such judgments and decrees either shall be final and non-appealable or shall not be vacated, discharged or stayed or bonded pending appeal for any period of 60 consecutive days, and the aggregate amount of all such judgments, to the extent not covered by insurance, equals or exceeds $5,000,000; or 

11.10 Change of Control. A Change of Control shall occur; or 

11.11 Trico Subsea AS Credit Agreement. An event of default under and as defined in the Trico Subsea AS Credit Agreement shall have occurred. 

then, and in any such event, and at any time thereafter, if any Event of Default shall then be continuing, the Administrative Agent, upon the written request of the Required Lenders, shall by written notice to the Borrower, take any or all of the following actions, without prejudice to the rights of the Administrative Agent, any Lender or the holder of any Revolving Note to enforce its claims against any Credit Party (provided that, if an Event of Default specified in Section 11.05 shall occur with respect to the Borrower, the result which would occur upon the giving of written notice by the Administrative Agent to the Borrower as specified in clauses (i) and (ii) below shall occur automatically without the giving of any such notice): (i) declare the Total Commitment terminated, whereupon all Revolving Loan Commitments of each Lender shall forthwith terminate immediately and any Commitment Commission shall forthwith become due and payable without any other notice of any kind; (ii) declare the principal of and any accrued interest in respect of all Revolving Loans and the Revolving Notes and all Obligations owing hereunder and thereunder to be, whereupon the same shall become, forthwith due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby waived by each Credit Party; (iii) terminate any Letter of Credit which may be terminated in accordance with its terms; (iv) direct the Borrower to pay (and the Borrower hereby agrees upon receipt of such notice, or upon the occurrence of Event of Default specified in Section 11.05 with respect to the Borrower, to pay) to the Collateral Agent at the Payment Office such additional amount of cash or Cash Equivalents, to be held as security by the Collateral Agent, as is equal to the aggregate Stated Amount of all Letters of Credit issued for the account of the Borrower then outstanding; (v) enforce, as Collateral Agent, all of the Liens and security interests created pursuant to the Security Documents; and (vi) apply any cash collateral held by the Administrative Agent pursuant to Section 4.02 to the repayment of the Obligation in Section 4.02. 

SECTION 12. The Administrative Agent.

12.01 Appointment. The Lenders hereby irrevocably designate and appoint Nordea Bank Finland Plc, New York Branch, as Administrative Agent (for purposes of this Section 12 and Section 14.01, the term “Administrative Agent” also shall include Nordea Bank Finland Plc, New York Branch (and/or any of its affiliates) in its capacity as Collateral Agent pursuant to the Security Documents and in its capacity as Lead Arranger and Book Runner in connection with this Agreement and the financings contemplated hereby) to act as specified herein and in the other Credit Documents. Each Lender hereby irrevocably authorizes, and each holder of any Revolving Note by the acceptance of such Revolving Note shall be deemed irrevocably to authorize, the Administrative Agent to take such action on its behalf under the provisions of this Agreement, the other Credit Documents and any other instruments and agreements referred to herein or therein and to exercise such powers and to perform such duties hereunder and thereunder as are specifically delegated to or required of the Administrative Agent by the terms hereof and thereof and such other powers as are reasonably incidental thereto. The Administrative Agent may perform any of its respective duties hereunder by or through its officers, directors, agents, employees or affiliates. 

12.02 Nature of Duties. The Administrative Agent shall not have any duties or responsibilities except those expressly set forth in this Agreement and in the other Credit Documents. Neither the Administrative Agent nor any of its officers, directors, agents, employees or affiliates shall be liable for any action taken or omitted by it or them hereunder or under any other Credit Document or in connection herewith or therewith, unless caused by its or their gross negligence or willful misconduct (as determined by a court of competent jurisdiction in final and non–appealable decision). The duties of the Administrative 

Agent shall be mechanical and administrative in nature; the Administrative Agent shall not have by reason of this Agreement or any other Credit Document a fiduciary relationship in respect of any Lender or the holder of any Revolving Note; and nothing in this Agreement or any other Credit Document, expressed or implied, is intended to or shall be so construed as to impose upon the Administrative Agent any obligations in respect of this Agreement or any other Credit Document except as expressly set forth herein or therein. 

12.03 Lack of Reliance on the Administrative Agent. Independently and without reliance upon the Administrative Agent, each Lender and the holder of each Revolving Note, to the extent it deems appropriate, has made and shall continue to make (i) its own independent investigation of the financial condition and affairs of the Borrower and its Subsidiaries in connection with the making and the continuance of the Revolving Loans and the taking or not taking of any action in connection herewith and (ii) its own appraisal of the creditworthiness of the Borrower and its Subsidiaries and, except as expressly provided in this Agreement, the Administrative Agent shall not have any duty or responsibility, either initially or on a continuing basis, to provide any Lender or the holder of any Revolving Note with any credit or other information with respect thereto, whether coming into its possession before the making of the Revolving Loans or at any time or times thereafter. The Administrative Agent shall not be responsible to any Lender or the holder of any Revolving Note for any recitals, statements, information, representations or warranties herein or in any document, certificate or other writing delivered in connection herewith or for the execution, effectiveness, genuineness, validity, enforceability, perfection, collectibility, priority or sufficiency of this Agreement or any other Credit Document or the financial condition of the Borrower and its Subsidiaries or be required to make any inquiry concerning either the performance or observance of any of the terms, provisions or conditions of this Agreement or any other Credit Document, or the financial condition of the Borrower and its Subsidiaries or the existence or possible existence of any Default or Event of Default.

12.04 Certain Rights of the Administrative Agent. If the Administrative Agent requests instructions from the Required Lenders with respect to any act or action (including failure to act) in connection with this Agreement or any other Credit Document, the Administrative Agent shall be entitled to refrain from such act or taking such action unless and until the Administrative Agent shall have received instructions from the Required Lenders; and the Administrative Agent shall not incur liability to any Lender by reason of so refraining. Without limiting the foregoing, neither any Lender nor the holder of any Revolving Note shall have any right of action whatsoever against the Administrative Agent as a result of the Administrative Agent acting or refraining from acting hereunder or under any other Credit Document in accordance with the instructions of the Required Lenders. 

12.05 Reliance. The Administrative Agent shall be entitled to rely, and shall be fully protected in relying, upon any note, writing, resolution, notice, statement, certificate, telex, teletype or telecopier message, cablegram, radiogram, order or other document or telephone message signed, sent or made by any Person that the Administrative Agent believed to be the proper Person, and, with respect to all legal matters pertaining to this Agreement and any other Credit Document and its duties hereunder and thereunder, upon advice of counsel selected by the Administrative Agent. 

12.06 Indemnification. To the extent the Administrative Agent (or any affiliate thereof) is not reimbursed and indemnified by the Borrower, the Lenders will reimburse and indemnify the Administrative Agent (and any affiliate thereof), in proportion to their respective “percentage” as used in determining the Required Lenders determined as if there were no Defaulting Lenders), for and against any and all liabilities, obligations, losses, damages, penalties, claims, actions, judgments, costs, expenses or disbursements of whatsoever kind or nature which may be imposed on, asserted against or incurred by the Administrative Agent (or any affiliate thereof) in performing its duties hereunder or under any other Credit Document, or in any way relating to or arising out of this Agreement or any other Credit Document; provided that no Lender shall be liable for any portion of such liabilities, obligations, losses, damages, penalties, claims, actions, judgments, suits, costs, expenses or disbursements resulting from the Administrative Agent’s (or such affiliate’s) gross negligence or willful misconduct (as determined by a court of competent jurisdiction in a final and non-appealable decision).

12.07 The Administrative Agent in its Individual Capacity. With respect to its obligation to make Revolving Loans, or issue or participate in Letters of Credit, under this Agreement, the Administrative Agent shall have the rights and powers specified herein for a “Lender” and may exercise the same rights and powers as though it were not performing the duties specified herein; and the term “Lender,” “Required Lenders,” “holders of Revolving Notes” or any similar terms shall, unless the context clearly indicates otherwise, include the Administrative Agent in its respective individual capacities. The Administrative Agent and its affiliates may accept deposits from, lend money to, and generally engage in any kind of banking, investment banking, trust or other business with, or provide debt financing, equity capital or other services (including financial advisory services) to any Credit Party or any Affiliate of any Credit Party (or any Person engaged in a similar business with any Credit Party or any Affiliate thereof) as if they were not performing the duties specified herein, and may accept fees and other consideration from any Credit Party or any Affiliate of any Credit Party for services in connection with this Agreement and otherwise without having to account for the same to the Lenders.

 

12.08 Holders. The Administrative Agent may deem and treat the payee of any Revolving Note as the owner thereof for all purposes hereof unless and until a written notice of the assignment, transfer or endorsement thereof, as the case may be, shall have been filed with the Administrative Agent. Any request, authority or consent of any Person who, at the time of making such request or giving such authority or consent, is the holder of any Revolving Note shall be conclusive and binding on any subsequent holder, transferee, assignee or endorsee, as the case may be, of such Revolving Note or of any Revolving Note or Revolving Notes issued in exchange therefor.

12.09 Resignation by the Administrative Agent. (a) The Administrative Agent may resign from the performance of all its respective functions and duties hereunder and/or under the other Credit Documents at any time by giving 15 Business Days’ prior written notice to the Lenders and, unless a Default or an Event of Default under Section 11.05 then exists, the Borrower. Any such resignation by an Administrative Agent hereunder shall also constitute its resignation as an Issuing Lender, in which case the resigning Administrative Agent (x) shall not be required to issue any further Letters of Credit hereunder and (y) shall maintain all of its rights as Issuing Lender with respect to any Letters of Credit issued by it, prior to the date of such resignation. Such resignation shall take effect upon the appointment of a successor 

Administrative Agent pursuant to clauses (b) and (c) below or as otherwise provided below. 

(b) Upon any such notice of resignation by the Administrative Agent, the Required Lenders shall appoint a successor Administrative Agent hereunder or thereunder who shall be a commercial bank or trust company reasonably acceptable to the Borrower, which acceptance shall not be unreasonably withheld or delayed (provided that the Borrower’s approval shall not be required if an Event of Default then exists). 

(c) If a successor Administrative Agent shall not have been so appointed within such 15 Business Day period, the Administrative Agent, with the consent of the Borrower (which consent shall not be unreasonably withheld or delayed, provided that the Borrower’s consent shall not be required if an Event of Default then exists), shall then appoint a successor Administrative Agent who shall serve as Administrative Agent hereunder or thereunder until such time, if any, as the Required Lenders appoint a successor Administrative Agent as provided above. 

(d) If no successor Administrative Agent has been appointed pursuant to clause (b) or (c) above by the 30th Business Day after the date such notice of resignation was given by the Administrative Agent, the Administrative Agent’s resignation shall become effective and the Required Lenders shall thereafter perform all the duties of the Administrative Agent hereunder and/or under any other Credit Document until such time, if any, as the Required Lenders appoint a successor Administrative Agent as provided above. 

SECTION 13. Guaranty.

13.01 Guaranty. In order to induce the Administrative Agent, the Issuing Lenders and the Lenders to enter into this Agreement and to extend credit hereunder, and in recognition of the direct benefits to be received by the Borrower from the proceeds of the Revolving Loans and the issuance of the Letters of Credit, the Guarantors hereby agree with the Guaranteed Creditors as follows: the Guarantors hereby and unconditionally and irrevocably guarantee to the Guaranteed Creditors, as primary obligor and not merely as surety, the full and prompt payment when due, whether upon maturity, acceleration or otherwise, of any and all of the Guaranteed Obligations to the Guaranteed Creditors. If any or all of the Guaranteed Obligations becomes due and payable hereunder, the Guarantors, unconditionally and irrevocably, promise to pay such indebtedness to the Administrative Agent and/or the other Guaranteed Creditors, or order, on demand, together with any and all reasonable documented out-of-pocket expenses which may be incurred by the Administrative Agent and the other Guaranteed Creditors in collecting any of the Guaranteed Obligations. If claim is ever made upon any Guaranteed Creditor for repayment or recovery of any amount or amounts received in payment or on account of any of the Guaranteed Obligations and any of the aforesaid payees repays all or part of said amount by reason of (i) any judgment, decree or order of any court or administrative body having jurisdiction over such payee or any of its property or (ii) any settlement or compromise of any such claim effected by such payee with any such claimant (including the Borrower), then and in such event the Guarantors agree that any such judgment, decree, order, settlement or compromise shall be binding upon the Guarantors, notwithstanding any revocation of this Guaranty or other instrument evidencing any liability of the Borrower, and the Guarantors shall be and remain liable to the aforesaid payees hereunder for the amount so repaid or recovered to the same extent as if such amount had never originally been received by any such payee. 

13.02 Bankruptcy. Additionally, the Guarantors unconditionally and irrevocably guarantee to the Guaranteed Creditors the payment of any and all of the Guaranteed Obligations whether or not due or payable by the Borrower upon the occurrence of any of the events specified in Section 11.05, and unconditionally, irrevocably, jointly and severally promises to pay such indebtedness to the Guaranteed Creditors, or order, on demand. 

13.03 Nature of Liability. The liability of the Guarantors hereunder is exclusive and independent of any security for or other guaranty of the Guaranteed Obligations, whether executed by the Guarantors, any other guarantor or by any other party, and the liability of the Guarantors hereunder shall not be affected or impaired by (a) any direction as to application of payment by the Borrower or by any other party, or (b) any other continuing or other guaranty, undertaking or maximum liability of a guarantor or of any other party as to the Guaranteed Obligations, or (c) any payment on or in reduction of any such other guaranty or undertaking, or (d) any dissolution, termination or increase, decrease or change in personnel by the Borrower, or (e) any payment made to any Guaranteed Creditor on the Guaranteed Obligations which any such Guaranteed Creditor repays to the Borrower or any other Subsidiary of the Borrower pursuant to court order in any bankruptcy, reorganization, arrangement, moratorium or other debtor relief proceeding, and the Borrower waives any right to the deferral or modification of its obligations hereunder by reason of any such proceeding, or (f) any action or inaction of the type described in Section 13.05. 

13.04 Independent Obligation. The obligations of the Guarantors hereunder are independent of the obligations of any other guarantor, any other party or the Borrower, and a separate action or actions may be brought and prosecuted against the Guarantors whether or not action is brought against any other guarantor, any other party or the Borrower and whether or not any other guarantor, any other party or the Borrower be joined in any such action or actions. The Guarantors waive, to the fullest extent permitted by law, the benefit of any statute of limitations affecting its liability hereunder or the enforcement thereof. Any payment by the Borrower or other circumstance which operates to toll any statute of limitations as to the Borrower shall operate to toll the statute of limitations as to the Guarantors. 

13.05 Authorization. The Guarantors authorize the Guaranteed Creditors without notice or demand (except as shall be required by applicable statute or this Agreement  and cannot be waived), and without affecting or impairing its liability hereunder, from time to time to: 

(a) in accordance with the terms and provisions of this Agreement and the other Credit Documents, change the manner, place or terms of payment of, and/or change or extend the time of payment of, renew, increase, accelerate or alter, any of the Guaranteed Obligations (including any increase or decrease in the principal amount thereof or the rate of interest or fees thereon), any security therefor, or any liability incurred directly or indirectly in respect thereof, and this Guaranty made shall apply to such Guaranteed Obligations as so changed, extended, renewed or altered;

 

(b) take and hold security for the payment of the Guaranteed Obligations and sell, exchange, release, impair, surrender, realize upon or otherwise deal with in any manner and in any order any property by whomsoever at any time pledged or mortgaged to secure, or howsoever securing, the Guaranteed Obligations or any liabilities (including any of those hereunder) incurred directly or indirectly in respect thereof or hereof, and/or any offset thereagainst;

 

(c) exercise or refrain from exercising any rights against the Borrower, any other Credit Party or others or otherwise act or refrain from acting; 

(d) release or substitute any one or more endorsers, guarantors, the Borrower, other Credit Parties or other obligors; 

(e) settle or compromise any of the Guaranteed Obligations, any security therefore or any liability (including any of those hereunder) incurred directly or indirectly in respect thereof or hereof, and may subordinate the payment of all or any part thereof to the payment of any liability (whether due or not) of the Borrower to its creditors other than the Guaranteed Creditors;

(f) apply any sums by whomsoever paid or howsoever realized to any liability or liabilities of the Borrower to the Guaranteed Creditors regardless of what liability or liabilities of the Borrower remain unpaid;

(g) consent to or waive any breach of, or any act, omission or default under, this Agreement or any other Credit Document or any of the instruments or agreements referred to herein or therein, or, pursuant to the terms of the Credit Documents, otherwise amend, modify or supplement this Agreement or any other Credit Document or any of such other instruments or agreements; and/or 

(h) take any other action which would, under otherwise applicable principles of common law, give rise to a legal or equitable discharge of the Guarantors from their liabilities under this Guaranty.

 

13.06 Reliance. It is not necessary for any Guaranteed Creditor to inquire into the capacity or powers of the Guarantors or any of their Subsidiaries or the officers, directors, partners or agents acting or purporting to act on their behalf, and any Guaranteed Obligations made or created in reliance upon the professed exercise of such powers shall be guaranteed hereunder. 

13.07 Subordination. Any indebtedness of the Borrower now or hereafter owing to the Guarantors is hereby subordinated to the Guaranteed Obligations of the Borrower owing to the Guaranteed Creditors; and if the Administrative Agent so requests at a time when an Event of Default exists, all such indebtedness of the Borrower to the Guarantors shall be collected, enforced and received by the Guarantors for the benefit of the Guaranteed Creditors and be paid over to the Administrative Agent on behalf of the Guaranteed Creditors on account of the Guaranteed Obligations, but without affecting or impairing in any manner the liability of the Guarantors under the other provisions of this Guaranty. Prior to the transfer by the Guarantors of any note or negotiable instrument evidencing any such indebtedness of the Borrower to the Guarantors, the Guarantors shall mark such note or negotiable instrument with a legend that the same is subject to this subordination. Without limiting the generality of the foregoing, the Guarantors hereby agree with the Guaranteed Creditors that they will not exercise any right of subrogation which they may at any time otherwise have as a result of this Guaranty (whether contractual, under Section 509 of the Bankruptcy Code or otherwise) until all Guaranteed Obligations have been paid in full in cash. If and to the extent required in order for the Guaranteed Obligations of any Guarantor to be enforceable under applicable federal, state and other laws relating to the insolvency of debtors, the maximum liability of such Guarantor 

hereunder shall be limited to the greatest amount which can lawfully be guaranteed by such Guarantor under such laws, after giving effect to any rights of contribution, reimbursement and subrogation arising under this Section 13.07. 

13.08 Waiver. (a) The Guarantors waive any right (except as shall be required by applicable statute and cannot be waived) to require any Guaranteed Creditor to (i) proceed against the Borrower, any other guarantor or any other party, (ii) proceed against or exhaust any security held from the Borrower, any other guarantor or any other party or (iii) pursue any other remedy in any Guaranteed Creditor’s power whatsoever. The Guarantors waive any defense based on or arising out of any defense of the Borrower, any other guarantor or any other party, other than payment in full in cash of the Guaranteed Obligations, based on or arising out of the disability of the Borrower, any other guarantor or any other party, or the validity, legality or unenforceability of the Guaranteed Obligations or any part thereof from any cause, or the cessation from any cause of the liability of the Borrower other than payment in full in cash of the Guaranteed Obligations. The Guaranteed Creditors may, at their election, foreclose on any security held by the Administrative Agent or any other Guaranteed Creditor by one or more judicial or nonjudicial sales, whether or not every aspect of any such sale is commercially reasonable (to the extent such sale is permitted by applicable law), or exercise any other right or remedy the Guaranteed Creditors may have against the Borrower, or any other party, or any security, without affecting or impairing in any way the liability of the Guarantors hereunder except to the extent the Guaranteed Obligations have been paid in cash. The Guarantors waive any defense arising out of any such election by the Guaranteed Creditors, even though such election operates to impair or extinguish any right of reimbursement or subrogation or other right or remedy of the Guarantors against the Borrower, or any other party or any security.

(b) The Guarantors waive all presentments, demands for performance, protests and notices, including, without limitation, notices of nonperformance, notices of protest, notices of dishonor, notices of acceptance of this Guaranty, and notices of the existence, creation or incurring of new or additional Guaranteed Obligations. The Guarantors assume all responsibility for being and keeping themselves informed of the Borrower’s financial condition and assets, and of all other circumstances bearing upon the risk of nonpayment of the Guaranteed Obligations and the nature, scope and extent of the risks which the Guarantors assume and incur hereunder, and agree that neither the Administrative Agent nor any of the other Guaranteed Creditors shall have any duty to advise the Guarantors of information known to them regarding such circumstances or risks. 

13.09 Payment. All payments made by the Guarantors pursuant to this Section 13 shall be made in Dollars. All payments made by the Guarantors pursuant to this Section 13 will be made without setoff, counterclaim or other defense. 

SECTION 14.  Miscellaneous.

14.01 Payment of Expenses, etc. The Borrower agrees to: (i) whether or not the transactions herein contemplated are consummated, pay all reasonable out-of-pocket costs and expenses of the Administrative Agent (including, without limitation, the reasonable fees and disbursements of White & Case LLP and the Administrative Agent’s local maritime counsel and the Administrative Agent’s consultants) in connection with the preparation, execution and delivery of this Agreement and the other Credit Documents and the documents and instruments referred to herein and therein and any amendment, waiver or consent relating hereto or thereto, of the Administrative Agent in connection with its syndication efforts with respect to this 

Agreement and of the Administrative Agent and, after the occurrence of an Event of Default, each of the Issuing Lenders and Lenders in connection with the enforcement of this Agreement and the other Credit Documents and the documents and instruments referred to herein and therein or in connection with any refinancing or restructuring of the credit arrangements provided under this Agreement in the nature of a “work-out” or pursuant to any insolvency or bankruptcy proceedings (including, in each case without limitation, the reasonable fees and disbursements of counsel and consultants for the Administrative Agent and, after the occurrence of an Event of Default, counsel for each of the Issuing Lenders and Lenders); (ii) pay and hold the Administrative Agent, each of the Issuing Lenders and each of the Lenders harmless from 

and against any and all present and future stamp, documentary, transfer, sales and use, value added, excise and other similar taxes with respect to the foregoing matters, the performance of any obligation under this 

Agreement or any other Credit Document or any payment thereunder, and save the Administrative Agent, each of the Issuing Lenders and each of the Lenders harmless from and against any and all liabilities with respect to or resulting from any delay or omission (other than to the extent attributable to the Administrative Agent, such Issuing Lender or such Lender) to pay such taxes; and (iii) indemnify the Administrative Agent, the Collateral Agent, each Issuing Lender and each Lender, and each of their respective officers, directors, employees, representatives, agents, affiliates, trustees and investment advisors from and hold each of them harmless against any and all liabilities, obligations (including removal or remedial actions), losses, damages, penalties, claims, actions, judgments, suits, costs, expenses and disbursements (including reasonable attorneys’ and consultants’ fees and disbursements) incurred by, imposed on or assessed against any of them as a result of, or arising out of, or in any way related to, or by 

reason of, (a) any investigation, litigation or other proceeding (whether or not the Administrative Agent, any Issuing Lender or any Lender is a party thereto and whether or not such investigation, litigation or other proceeding is brought by or on behalf of any Credit Party) related to the entering into and/or performance of this Agreement or any other Credit Document or the use of any Letter of Credit or the proceeds of any Revolving Loans hereunder or the consummation of the Transaction or any other transactions contemplated herein or in any other Credit Document or the exercise of any of their rights or remedies provided herein or in the other Credit Documents, or (b) the Release of Hazardous Materials by the Borrower or any of the Borrower’s Subsidiaries into the air, surface water or groundwater or on the surface or subsurface of any vessel or Real Property at any time owned, operated or occupied by the Borrower, or any of the Borrower’s Subsidiaries, the generation, storage, transportation, handling, disposal or Release of Hazardous Materials by the Borrower or any of the Borrower’s Subsidiaries at any location, 

whether or not owned, leased or operated by the Borrower or any of the Borrower’s Subsidiaries, the non-compliance of any vessel or Real Property with Environmental Laws (including applicable permits thereunder) applicable to any vessel or Real Property, or any Environmental Claim asserted against the Borrower or any of the Borrower’s Subsidiaries, or any vessel or Real Property at any time owned, operated or occupied by the Borrower or any of the Borrower’s Subsidiaries, including, in each case, without limitation, the reasonable fees and disbursements of counsel and other consultants incurred in connection with any such investigation, litigation or other proceeding (but excluding any losses, liabilities, claims, damages or expenses to the extent incurred by reason of the gross negligence or willful misconduct of the Person to be indemnified (as determined by a court of competent jurisdiction in a final and non-appealable decision) or caused by the actions or inactions of the Person to be indemnified. To the extent that the undertaking to indemnify, pay or hold harmless the Administrative Agent, any Issuing Lender or 

any Lender set forth in the preceding sentence may be unenforceable because it is violative of any law or public policy, the Borrower shall make the maximum contribution to the payment and satisfaction of each of the indemnified liabilities which is permissible under applicable law. 

14.02 Right of Setoff. In addition to any rights now or hereafter granted under applicable law or otherwise, and not by way of limitation of any such rights, upon the occurrence and during the continuance of an Event of Default, the Administrative Agent, each Issuing Lender and each Lender is hereby authorized at any time or from time to time, without presentment, demand, protest or other notice of any kind to any Credit Party or to any other Person, any such notice being hereby expressly waived, to set off and to appropriate and apply any and all deposits (general or special) and any other Indebtedness at any time held or owing by the Administrative Agent, such Issuing Lender or such Lender (including, without limitation, by branches and agencies of the Administrative Agent, such Issuing Lender or such Lender 

wherever located) to or for the credit or the account of the Borrower or any of its Subsidiaries against and on account of the Obligations and liabilities of the Credit Parties to the Administrative Agent, such Issuing Lender or such Lender under this Agreement or under any of the other Credit Documents, including, without limitation, all interests in Obligations purchased by such Lender pursuant to Section 14.06(b), and all other claims of any nature or description arising out of or connected with this Agreement or any other Credit Document, irrespective of whether or not the Administrative Agent, such Issuing Lender or such Lender shall have made any demand hereunder and although said Obligations, liabilities or claims, or any of them, shall be contingent or unmatured. 

14.03 Notices. Except as otherwise expressly provided herein, all notices and other communications provided for hereunder shall be in writing (including telegraphic, telex, telecopier or cable communication) and mailed, telegraphed, telexed, telecopied, cabled or delivered: if to any Credit Party, at the address specified opposite its signature below or in the other relevant Credit Documents; if to any Lender, at its address specified on Schedule II; and if to the Administrative Agent, at the Notice Office; or, as to any Credit Party or the Administrative Agent, at such other address as shall be designated by such party in a written notice to the other parties hereto and, as to each Lender, at such other address as shall be designated by such Lender in a written notice to the Borrower and the Administrative Agent. All such notices and communications shall, when mailed, telegraphed, telexed, telecopied, or cabled or sent by 

overnight courier, be effective when deposited in the mails, delivered to the telegraph company, cable company or overnight courier as the case may be, or sent by telex or telecopier, except that notices and communications to the Administrative Agent shall not be effective until received by the Administrative Agent. All notices and other communications given to any party hereto in accordance with the provisions of this Agreement shall be deemed to have been given on the date of receipt if delivered by hand or overnight courier service, sent by telecopier or on the date five Business Days after dispatch by certified or registered mail if mailed, in each case delivered, sent or mailed (properly addressed) to such party as provided in this Section 14.03 or in accordance with the latest unrevoked direction from such party given in accordance with this Section 14.03. 

14.04 Benefit of Agreement; Assignments; Participations. 

(a) This Agreement shall be binding upon and inure to the benefit of and be enforceable by the respective successors and assigns of the parties hereto; provided, however, that the Borrower may not assign or transfer any of its rights, obligations or interest hereunder or under any other Credit Document without the prior written consent of the Lenders, (which shall not be unreasonably withheld or delayed), and, provided further, that, although any Lender may transfer, assign or grant participations in its rights hereunder, such Lender shall remain a “Lender” for all purposes hereunder (and may not transfer or assign all or any portion of its Revolving Loan Commitments hereunder except as provided in Sections 2.13 and 14.04(b)) and the transferee, assignee or participant, as the case may be, shall not constitute a “Lender” hereunder and, provided further, that no Lender shall transfer or grant any participation under which the participant shall have rights to approve any amendment to or waiver of this Agreement or any other Credit Document except to the extent such amendment or waiver would (i) extend the final scheduled maturity of any Revolving Loan or Revolving Note or Letter of Credit (unless such Letter of Credit is not extended beyond the Maturity Date) in which such participant is participating, or reduce the rate or extend the time of payment of interest or Fees thereon (except in connection with a waiver of applicability of any post-default increase in interest rates) or reduce the principal amount thereof (it being understood that any amendment or modification to the financial definitions in this Agreement or to Section 14.07(a) shall not constitute a reduction in the rate of interest or Fees payable hereunder) or increase the amount of the participant’s participation over the amount thereof then in effect (it being understood that a waiver of any Default or Event of Default or of a mandatory reduction in the Total Commitment shall not constitute a change in the terms of such participation, and that an increase in any Revolving Loan Commitment (or the available portion thereof) or Revolving Loan shall be permitted without the consent of any participant if the participant’s participation is not increased as a result thereof), (ii) consent to the assignment or transfer by the Borrower of any of its rights and obligations under this Agreement or (iii) release all or substantially all of the Collateral under all of the Security Documents (except as expressly provided in the Credit Documents) supporting the Revolving Loans or Letters of Credit hereunder in which such participant is 

participating. In the case of any such participation, the participant shall not have any rights under this Agreement or any of the other Credit Documents (the participant’s rights against such Lender in respect of such participation to be those set forth in the agreement executed by such Lender in favor of the participant relating thereto) and all amounts payable by the Borrower hereunder shall be determined as if such Lender had not sold such participation. 

(b) Notwithstanding the foregoing, any Lender (or any Lender together with one or more other Lenders) may (x) assign all or a portion of its Revolving Loan Commitment and related outstanding Obligations hereunder to (i) (A) its parent company and/or any affiliate of such other Lender which is at least 50% owned by such Lender or its parent company or (B) to one or more other Lenders or any affiliate of any such Lender which is at least 50% owned by such other Lender or its parent company (provided that any fund that invests in loans and is managed or advised by the same investment advisor of another fund which is a Lender (or by an Affiliate of such investment advisor) shall be treated as an affiliate of such other Lender for the purposes of this sub-clause (x)(i)(B)), or (ii) in the case of any Lender that is a fund that invests in loans, any other fund that invests in loans and is managed or advised by the same investment 

advisor of any Lender or by an Affiliate of such investment advisor or (iii) to one or more Lenders or (y) assign all, or if less than all, a portion equal to at least $5.0 million in the aggregate for the assigning Lender or assigning Lenders, of such Revolving Loan Commitments and related outstanding Obligations hereunder to one or more Eligible Transferees (treating any fund that invests in bank loans and any other fund that invests in bank loans and is managed or advised by the same investment advisor of such fund or by an Affiliate of such investment advisor as a single Eligible Transferee), each of which assignees shall become a party to this Agreement as a Lender by execution of an Assignment and Assumption Agreement, provided that (i) at such time, Schedule I shall be deemed modified to reflect the Revolving Loan Commitments and/or outstanding Revolving Loans, as the case may be, of such new Lender and of the existing Lenders, (ii) upon the surrender of the relevant Revolving Notes by the assigning Lender, new Revolving Notes will be issued, at the Borrower’s expense, to such new Lender and to the assigning Lender upon the request of such new Lender or assigning Lender, such new Revolving Notes to be in conformity with the requirements of Section 2.05 (with appropriate modifications) to the extent needed to reflect the revised Revolving Loan Commitments and/or outstanding Revolving Loans, as the case may be, (iii) the consent of (x) the Administrative Agent and each Issuing Lender and (y) so long as no Default or Event of Default is then in existence, the Borrower shall, in each case, be required in connection with any such assignment pursuant to clause (y) above (each of which consents shall not be unreasonably withheld or 

delayed), (iv) the Administrative Agent shall receive at the time of each such assignment, from the assigning or assignee Lender, the payment of a non-refundable assignment fee of $3,500 and (v) no such transfer or assignment will be effective until recorded by the Administrative Agent on the Register pursuant to Section 14.15. To the extent of any assignment pursuant to this Section 14.04(b), the assigning Lender shall be relieved of its obligations hereunder with respect to its assigned Revolving Loan Commitments and outstanding Revolving Loans. At the time of each assignment pursuant to this Section 14.04(b) to a Person which is not already a Lender hereunder and which is not a United States person (as such term is defined in Section 7701(a)(30) of the Code) for U.S. Federal income tax purposes, the respective assignee Lender 

shall, to the extent legally entitled to do so, provide to the Borrower the appropriate Internal Revenue Service Forms (and, if applicable, a Section 5.04(b)(ii) Certificate described in Section 5.04(b)) to the extent such forms would provide a complete exemption from or reduction in United States withholding tax. In addition, each respective assignee Lender that is not an “exempt recipient” (as such term is defined in Section 1.6049-4(c)(1)(ii) in the United States Treasury Regulations), as reasonably determined by the Borrower or the Administrative Agent, shall deliver such documentation (including Form W-9) prescribed by applicable law or reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent to determine whether or not such assignee Lender is subject to backup withholding or information reporting requirements. To the extent that an assignment of 

all or any portion of a Lender’s Revolving Loan Commitments and related outstanding Obligations pursuant to Section 2.13 or this Section 14.04(b) would, at the time of such assignment, result in increased costs under Section 2.10 or 3.06 or additional amounts or indemnification under Section 5.04 hereof from those being charged by the respective assigning Lender prior to such assignment, then the Borrower shall not be obligated to pay such increased costs, additional amounts or indemnification (although the Borrower, in accordance with and pursuant to the other provisions of this Agreement, shall be obligated to pay any other increased costs of the type described above resulting from changes after the date of the respective assignment). 

(b) Nothing in this Agreement shall prevent or prohibit any Lender from pledging its Revolving Loans and Revolving Notes hereunder to a Federal Reserve Bank in support of borrowings made by such Lender from such Federal Reserve Bank and, with prior notification to the Administrative Agent (but without the consent of the Administrative Agent or the Borrower), any Lender which is a fund may pledge all or any portion of its Revolving Loans and Revolving Notes to its trustee or to a collateral agent providing credit or credit support to such Lender in support of its obligations to such trustee, such collateral agent or a holder of such obligations, as the case may be. No pledge pursuant to this clause (c) shall release the transferor Lender from any of its obligations hereunder. 

14.05 No Waiver; Remedies Cumulative. No failure or delay on the part of the Administrative Agent, the Collateral Agent, any Issuing Lender or any Lender in exercising any right, power or privilege hereunder or under any other Credit Document and no course of dealing between the Borrower or any other Credit Party and the Administrative Agent, the Collateral Agent, any Issuing Lender or any Lender shall operate as a waiver thereof; nor shall any single or partial exercise of any right, power or privilege hereunder or under any other Credit Document preclude any other or further exercise thereof or the exercise of any other right, power or privilege hereunder or thereunder. The rights, powers and remedies herein or in any other Credit Document expressly provided are cumulative and not exclusive of any rights, powers or remedies which the Administrative Agent, the Collateral Agent, any Issuing Lender or any Lender would otherwise have. No notice to or demand on any Credit Party in any case shall entitle any Credit Party to any other or further notice or demand in similar or other circumstances or constitute a waiver of the rights of the Administrative Agent, the Collateral Agent, any Issuing Lender or any Lender to any other or further action in any circumstances without notice or demand. 

14.06 Payments Pro Rata. (a) Except as otherwise provided in this Agreement, the Administrative Agent agrees that promptly after its receipt of each payment from or on behalf of the Borrower in respect of any Obligations hereunder, the Administrative Agent shall distribute such payment to the Lenders entitled thereto (other than any Lender that has consented in writing to waive its pro rata share of any such payment) pro rata based upon their respective shares, if any, of the Obligations with respect to which such payment was received. 

(b) Each of the Lenders agrees that, if it should receive any amount hereunder (whether by voluntary payment, by realization upon security, by the exercise of the right of setoff or banker’s lien, by counterclaim or cross action, by the enforcement of any right under the Credit Documents, or otherwise), which is applicable to the payment of the principal of, or interest on, the Revolving Loans, Unpaid Drawings, or Fees, of a sum which with respect to the related sum or sums received by other Lenders is in a greater proportion than the total of such Obligation then owed and due to such Lender bears to the total of such Obligation then owed and due to all of the Lenders immediately prior to such receipt, then such Lender receiving such excess payment shall purchase for cash without recourse or warranty from the other Lenders an interest in the Obligations of the respective Credit Party to such Lenders in such amount as shall 

result in a proportional participation by all the Lenders in such amount; provided that if all or any portion of such excess amount is thereafter recovered from such Lenders, such purchase shall be rescinded and the purchase price restored to the extent of such recovery, but without interest. 

(c) Notwithstanding anything to the contrary contained herein, the provisions of the preceding Sections 14.06(a) and (b) shall be subject to the express provisions of this Agreement which require, or permit, differing payments to be made to Non-Defaulting Lenders as opposed to Defaulting Lenders. 

14.07 Calculations; Computations.  (a) The financial statements to be furnished to the Lenders pursuant hereto shall be made and prepared in accordance with GAAP in the United States consistently applied throughout the periods involved (except as set forth in the notes thereto or as otherwise disclosed in writing by the Borrower to the Lenders to the extent, in each case, permitted by the terms of this Agreement); provided that, except as otherwise specifically provided herein, all computations of the Applicable Margin, and all computations and all definitions (including accounting terms) used in determining compliance with the Financial Covenants, shall utilize generally accepted accounting principles and policies in conformity with, and consistent with, those used to prepare the historical audited consolidated financial statements of the Borrower and its Subsidiaries referred to in Section 8.05(a). 

(b) All computations of interest, Commitment Commission and other Fees hereunder shall be made on the basis of a year of 360 days for the actual number of days (including the first day but excluding the last day; except that in the case of Letter of Credit Fees and Facing Fees, the last day shall be included) occurring in the period for which such interest, Commitment Commission or other Fees are payable. 

14.08 GOVERNING LAW; SUBMISSION TO JURISDICTION; 

VENUE; WAIVER OF JURY TRIAL. (a) THIS AGREEMENT AND THE OTHER CREDIT DOCUMENTS AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND THEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK. ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK, IN EACH CASE WHICH ARE LOCATED IN THE COUNTY OF NEW YORK, AND, BY EXECUTION AND DELIVERY OF THIS 

AGREEMENT OR ANY OTHER CREDIT DOCUMENT, EACH PARTY HERETO HEREBY IRREVOCABLY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS. EACH PARTY HERETO HEREBY FURTHER IRREVOCABLY WAIVES ANY CLAIM THAT ANY SUCH COURTS LACK PERSONAL JURISDICTION OVER SUCH PARTY, AND AGREES NOT TO PLEAD OR CLAIM, IN ANY LEGAL ACTION PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENTS BROUGHT IN ANY OF THE AFOREMENTIONED COURTS, THAT SUCH COURTS LACK PERSONAL 

JURISDICTION OVER SUCH PARTY. EACH PARTY HERETO FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO SUCH PERSON AT THE ADDRESS SET FORTH IN SECTION 14.03, SUCH SERVICE TO BECOME EFFECTIVE 30 DAYS AFTER SUCH MAILING. THE BORROWER HEREBY IRREVOCABLY WAIVES ANY OBJECTION TO SUCH SERVICE OF PROCESS AND FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY ACTION OR PROCEEDING COMMENCED HEREUNDER OR UNDER ANY OTHER CREDIT DOCUMENT THAT SERVICE OF PROCESS WAS IN ANY WAY INVALID OR INEFFECTIVE. NOTHING 

HEREIN SHALL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANY OTHER PARTY HERETO. 

(b) EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY OF THE AFORESAID ACTIONS OR PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT BROUGHT IN THE COURTS REFERRED TO IN CLAUSE (a) ABOVE AND HEREBY FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. 

(c) EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE OTHER CREDIT DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. 

14.09 Counterparts. This Agreement may be executed in any number of counterparts and by the different parties hereto on separate counterparts, each of which when so executed and delivered shall be an original, but all of which shall together constitute one and the same instrument. A set of counterparts executed by all the parties hereto shall be lodged with the Borrower and the Administrative Agent. 

14.10 Effectiveness. This Agreement shall become effective on the date (the “Effective Date”) on which (i) the Borrower, the Administrative Agent and each of the Lenders shall have signed a counterpart hereof (whether the same or different counterparts) and (ii) the conditions set forth in Section 6 are met to the reasonable satisfaction of the Administrative Agent and the Lenders. Unless the Administrative Agent has received actual notice from any Lender that the conditions contained in Section 6 have not been met to its reasonable satisfaction, upon the satisfaction of the condition described in clause (i) of the immediately preceding sentence and upon the Administrative Agent’s good faith determination that the conditions described in clause (ii) of the immediately preceding sentence have been met, then the Effective Date shall have been deemed to have occurred and all conditions contained in Section 6 shall be deemed satisfied or waived by the Administrative Agent and each Lender. The Administrative Agent will give the Borrower and each Lender prompt written notice of the occurrence of the Effective Date.

 

14.11 Headings Descriptive. The headings of the several sections and subsections of this Agreement are inserted for convenience only and shall not in any way affect the meaning or construction of any provision of this Agreement. 

14.12 Amendment or Waiver; etc. (a) Neither this Agreement nor any other Credit Document nor any terms hereof or thereof may be changed, waived, discharged or terminated unless such change, waiver, discharge or termination is in writing signed by the respective Credit Parties party hereto or thereto and the Required Lenders (although additional parties may be added to (and annexes may be modified to reflect such additions), and Subsidiaries of the Borrower may be released from, the Guaranty and the Security Documents in accordance with the provisions hereof and thereof without the consent of the other Credit Parties party thereto or the Required Lenders), provided that no such change, waiver, discharge or termination shall, without the consent of each Lender (other than a Defaulting Lender) (with Obligations being directly affected in the case of following clause (i)), (i) extend the final scheduled maturity of any Revolving Loan or Revolving Note, or extend the stated expiration date of any Letter of Credit beyond the Maturity Date, or reduce the rate or extend the time of payment of interest thereon, or reduce the amount, or extend the time of payment, of any Fees (except in connection with the waiver of applicability of any post-default increase in interest rates), or reduce the principal amount of any Revolving Loan (it being understood that any amendment or modification to the financial definitions in this Agreement or to Section 14.07(a) shall not constitute a reduction in the rate of interest or the amount of Fees for the purposes of 

this clause (i)), (ii) release all or substantially all of the Collateral (except as expressly provided in the Credit Documents) under all the Security Documents, (iii) amend, modify or waive any provision of this Section 14.12, (except for technical amendments with respect to additional extensions of credit pursuant to this Agreement which afford the protections to such additional extensions of credit of the type provided to the Revolving Loan Commitments on the Effective Date), (iv) reduce the percentage specified in the definition of Required Lenders (it being understood that, with the consent of the Required Lenders, additional extensions of credit pursuant to this Agreement may be included in the determination of the Required Lenders on substantially the same basis as the extensions of Revolving Loan Commitments are included on the Effective Date) or (v) consent to the assignment or transfer by the Borrower of any of their 

respective rights and obligations under this Agreement; provided further, that no such change, waiver, discharge or termination shall (1) increase the Revolving Loan Commitments of any Lender over the amount thereof then in effect without the consent of such Lender (it being understood that waivers or modifications of conditions precedent, covenants, Defaults or Events of Default or of a mandatory reduction in the Total Revolving Commitment shall not constitute an increase of the Revolving Loan Commitment of any Lender, and that an increase in the available portion of any Revolving Loan Commitment of any Lender shall not constitute an increase of the Revolving Loan Commitment of such Lender), (2) without the consent of each Issuing Lender, amend, modify or waive any provision of Section 3 or alter its rights or obligations with respect to Letters of Credit, (3) without the consent of the Administrative Agent, amend, modify or waive any provision of Section 12 or any other provision as same relates to the rights or obligations of the Administrative Agent or (4) without the consent of the Collateral 

Agent, amend, modify or waive any provision relating to the rights or obligations of the Collateral Agent. 

(b) If, in connection with any proposed change, waiver, discharge or termination of any of the provisions of this Agreement as contemplated by clauses (i) through (v), inclusive, of the first proviso to Section 14.12(a), the consent of the Required Lenders is obtained but the consent of one or more of such Lenders whose consent is required is not obtained, then the Borrower shall have the right, so long as all non-consenting Lenders whose individual consent is required are treated as described in either clauses (A) or (B) below, to either (A) replace such non-consenting Lender or Lenders with one or more Replacement Lenders pursuant to Section 2.13 so long as at the time of such replacement, each such Replacement 

Lender consents to the proposed change, waiver, discharge or termination or (B) terminate such non-consenting Lender’s Revolving Loan Commitment and/or repay each outstanding Revolving Loan of such Lender in accordance with Section 4.02(b) and/or 5.01(b), provided that, unless the Revolving Loan Commitments that are terminated, and the Revolving Loans repaid, pursuant to preceding clause (B) are immediately replaced in full at such time through the addition of new Lenders or the increase of the Revolving Loan Commitments and/or outstanding Revolving Loans of existing Lenders (who in each case must specifically consent thereto), provided further, that in any event, the Borrower shall not have the right to replace a Lender, terminate its Revolving Loan or repay its Revolving Loans solely as a result of the exercise of such Lender’s rights (and the withholding of any required consent by such Lender) pursuant to the second proviso to Section 14.12(a). 

14.13 Survival. All indemnities set forth herein including, without limitation, in Sections 2.10, 2.11, 3.06, 5.04, 12.06 and 14.01 shall survive the execution, delivery and termination of this Agreement and the Revolving Notes and the making and repayment of the Obligations. 

14.14 Domicile of Revolving Loans. Each Lender may transfer and carry its Revolving Loans at, to or for the account of any office, Subsidiary or Affiliate of such Lender. Notwithstanding anything to the contrary contained herein, to the extent that a transfer of Revolving Loans pursuant to this Section 14.14 would, at the time of such transfer, result in increased costs under Section 2.10, 2.11, 3.06 or 5.04 from those being charged by the respective Lender prior to such transfer, then the Borrower shall not be obligated to pay such increased costs (although the Borrower shall be obligated to pay any other increased costs of the type described above resulting from changes after the date of the respective transfer). 

14.15 Register. The Borrower hereby designates the Administrative Agent to serve as its agent, solely for purposes of this Section 14.15, to maintain a register (the “Register”) on which it will record the Revolving Loan Commitments from time to time of each of the Lenders, the Revolving Loans made by each of the Lenders and each repayment in respect of the principal amount of the Revolving Loans of each Lender. Failure to make any such recordation, or any error in such recordation, shall not affect the Borrower’s obligations in respect of such Revolving Loans. With respect to any Lender, the transfer of the Revolving Loan Commitments of such Lender and the rights to the principal of, and interest on, any Revolving Loan made pursuant to such Revolving Loan Commitments shall not be effective until such transfer is recorded on the Register maintained by the Administrative Agent with respect to ownership of such Revolving Loan Commitments and Revolving Loans and prior to such recordation all amounts owing to the transferor with respect to such Revolving Loan Commitments and Revolving Loans shall remain owing to the transferor. The registration of assignment or transfer of all or part of any Revolving Loan Commitments and Revolving Loans shall be recorded by the Administrative Agent on the Register only upon the acceptance by the Administrative Agent of a properly executed and delivered Assignment and Assumption Agreement pursuant to Section 14.04(b). Coincident with the delivery of such an Assignment 

and Assumption Agreement to the Administrative Agent for acceptance and registration of assignment or transfer of all or part of a Revolving Loan, or as soon thereafter as practicable, the assigning or transferor Lender shall surrender the Revolving Note (if any) evidencing such Revolving Loan, and thereupon one or more new Revolving Notes in the same aggregate principal amount shall be issued to the assigning or transferor Lender and/or the new Lender at the request of any such Lender. The Borrower agrees to indemnify the Administrative Agent from and against any and all losses, claims, damages and liabilities of whatsoever nature which may be imposed on, asserted against or incurred by the Administrative Agent in performing its duties under this Section 14.15. 

14.16 Confidentiality. (a) Subject to the provisions of clause (b) of this Section 14.16, each Lender agrees that it will use its reasonable efforts not to disclose without the prior consent of the Borrower (other than to its employees, auditors, advisors or counsel or to another Lender if such Lender or such Lender’s holding or parent company or board of trustees in its sole discretion determines that any such party should have access to such information, provided such Persons shall be subject to the provisions of this Section 14.16 to the same extent as such Lender) any information with respect to the Borrower or any of its Subsidiaries which is now or in the future furnished pursuant to this Agreement or any other Credit Document, provided that any Lender may disclose any such information (i) as has become generally available to the public other than by virtue of a breach of this Section 14.16(a) by the respective Lender, (ii) as may be required or appropriate in any report, statement or testimony submitted to any municipal, state or Federal regulatory body having or claiming to have jurisdiction over such Lender or to the Federal Reserve Board or the Federal Deposit Insurance Corporation or similar organizations (whether in the United States or elsewhere) or their successors, (iii) as may be required or appropriate in respect to any summons or subpoena or in connection with any litigation, (iv) in order to comply with any law, order, regulation or ruling applicable to such Lender, (v) to the Administrative Agent or the Collateral Agent, (vi) to any direct or indirect contractual counterparty in any swap, hedge or similar agreement (or to any such contractual 

counterparty’s professional advisor), so long as such contractual counterparty (or such professional advisor) agrees to be bound by the provisions of this Section 14.16, and (vii) to any prospective or actual transferee or participant in connection with any contemplated transfer or participation of any of the Revolving Notes or Revolving Loan Commitments or any interest therein by such Lender, provided that such prospective transferee agrees to be bound by the confidentiality provisions contained in this Section 14.16. 

(b) The Borrower hereby acknowledges and agrees that each Lender may share with any of its affiliates, and such affiliates may share with such Lender, any information related to the Borrower or any of its Subsidiaries (including, without limitation, any non-public customer information regarding the creditworthiness of the Borrower and its Subsidiaries), provided such Persons shall be subject to the provisions of this Section 14.16 to the same extent as such Lender. 

14.17 USA PATRIOT Act Notice. Each Lender hereby notifies each Credit Party that pursuant to the requirements of the USA PATRIOT Act (Title III of Pub.: 107-56 (signed into law October 26, 2001)) (the “PATRIOT Act”), it is required to obtain, verify, and record information that identifies each Credit Party, which information includes the name of each Credit Party and other information that will allow such Lender to identify each Credit Party in accordance with the PATRIOT Act, and each Credit Party agrees to provide such information from time to time to any Lender. 

IN WITNESS WHEREOF, the parties hereto have caused their duly authorized officers to execute and deliver this Agreement as of the date first above written.

					
	Address:

	 
	 
	 

	3200 Southwest Freeway, Suite 2950

	 
	 
	TRICO MARINE SERVICES, INC.

	Houston, Texas 77057

	 
	 
	 
	 

	Attention: Geoff Jones

	 
	 
	 
	 

	Tel: No.: (713) 780-9926

	 
	By:

	/s/ Geoff Jones

	 

	Fax No.: (713) 750-0062

	 
	Name:

	Geoff Jones

	 

	 
	 
	Title:

	VP & CFO

	 

	 
	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	TRICO MARINE ASSETS, INC.

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	By:

	/s/ Rishi Varma

	 

	 
	 
	Name:

	Rishi Varma

	 

	 
	 
	Title:

	VP & General Counsel

	 

	 
	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	TRICO MARINE OPERATIONS, INC.

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	By:

	/s/ Rishi Varma

	 

	 
	 
	Name:

	Rishi Varma

	 

	 
	 
	Title:

	VP & General Counsel

	 

	 
	 
	 
	 
	 

					
	 
	 
	 
	 

	 
	 
	 
	NORDEA BANK FINLAND PLC,

	 
	 
	 
	NEW YORK BRANCH, Individually and as 

	 
	 
	 
	Administrative Agent and Lead Arranger

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	By:

	/s/ Martin Lunder

	 

	 
	 
	Name:

	Martin Lunder

	 

	 
	 
	Title:

	Senior Vice President

	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	By:

	/s/ Martin Kahm

	 

	 
	 
	Name:

	Martin Kahm

	 

	 
	 
	Title:

	Vice President

	 

	 
	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	NORDEA BANK NORGE ASA,

 GRAND CAYMAN BRANCH, Individually and as

	 
	 
	 
	Lender and Issuing Lender

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	By:

	/s/ Martin Lunder

	 

	 
	 
	Name:

	Martin Lunder

	 

	 
	 
	Title:

	Senior Vice President

	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	By:

	/s/ Martin Kahm

	 

	 
	 
	Name:

	Martin Kahm

	 

	 
	 
	Title:

	Vice President

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