Document:

Exhibit 24.1

	

EXHIBIT 10.61 

$750,000,000 

BRIDGE LOAN AGREEMENT 

dated as of 

February 7, 2001 

among 

Ultramar Diamond
Shamrock Corporation 

The Banks Party Hereto 

The Chase Manhattan
Bank, 

as Administrative Agent 

and 

Bank of America, N.A., 

as Syndication Agent  

 

J.P. Morgan, a Division
of Chase Securities Inc.

and

Banc of America Securities LLC, 

Co-Lead Arrangers and Co-Bookrunners 

	

TABLE OF CONTENTS

PAGE       

ARTICLE 1 
DEFINITIONS 

		
	Section 1.01.  Definitions	 	1	 
	Section 1.02.  Accounting Terms and Determinations	 	16	 
	Section 1.03.  Types of Borrowings	 	17	 

	

ARTICLE 2 
THE CREDITS 

		
	Section 2.01.  Commitments to Lend	 	17	 
	Section 2.02.  Loans and Borrowings	 	17	 
	Section 2.03.  Notice of Borrowing	 	17	 
	Section 2.04.  Notice to Banks; Funding of Loans	 	18	 
	Section 2.05.  Notes	 	19	 
	Section 2.06.  Maturity of Loans	 	19	 
	Section 2.07.  Interest Rates	 	19	 
	Section 2.08.  Fees	 	21	 
	Section 2.09.  Termination or Reduction of Commitment	 	21	 
	Section 2.10.  Method of Electing Interest Rates	 	21	 
	Section 2.11.  Optional Prepayments	 	23	 
	Section 2.12.  Mandatory Prepayment	 	23	 
	Section 2.13.  General Provisions as to Payments	 	24	 
	Section 2.14.  Funding Losses	 	24	 
	Section 2.15.  Computation of Interest and Fees	 	25	 
	Section 2.16.  Regulation D Compensation	 	25	 
	Section 2.17.  Fees and Other Terms	 	25	 

	

ARTICLE 3  
CONDITIONS 

		
	Section 3.01.  Closing	 	25	 
	Section 3.02.  Each Credit Event	 	26	 

	

ARTICLE 4
REPRESENTATIONS AND
WARRANTIES 

		
	Section 4.01.  Existence and Business; Power and Authorization; Enforceable Obligations	 	27	 
	Section 4.02.  No Violation	 	27	 
	Section 4.03.  Litigation	 	28	 
	Section 4.04.  Financial Information	 	28	 
	Section 4.05.  Material Adverse Change	 	28	 

	

i 

	

		
	Section 4.06.  Use of Proceeds; Margin Regulations	 
	28	 	 
	Section 4.07.  Governmental Approvals	 	29	 
	Section 4.08.  Investment Company Act; Public Utility Holding Company Act	 	29	 
	Section 4.09.  No Default	 	29	 
	Section 4.10.  U.S. Taxes	 	29	 
	Section 4.11.  Foreign Taxes	 	29	 
	Section 4.12.  ERISA	 	29	 
	Section 4.13.  Ownership of Property; Liens	 	30	 
	Section 4.14.  Accuracy and Completeness of Information	 
	30	 
	Section 4.15.  Environmental Matters	 	30	 
	Section 4.16.  Significant Subsidiaries	 	31	 
	Section 4.17.  Solvency	 	31	 

	

ARTICLE 5
 AFFIRMATIVE COVENANTS

		
	Section 5.01.  Information Covenants	 	31	 
	Section 5.02.  Books, Records and Inspections	 	35	 
	Section 5.03.  Payment of Taxes	 	35	 
	Section 5.04.  Compliance with Law	 	35	 
	Section 5.05.  Existence, Etc	 	35	 
	Section 5.06.  Insurance	 	36	 
	Section 5.07.  Maintenance of Property	 	36	 
	Section 5.08.  Ownership of Subsidiaries	 	36	 

	

ARTICLE 6
NEGATIVE COVENANTS 

		
	Section 6.01.  Restriction on Fundamental Changes	 	36	 
	Section 6.02.  Transactions with Affiliates	 	37	 
	Section 6.03.  Liens	 	37	 
	Section 6.04.  Use of Proceeds; Margin Regulations	 	39	 
	Section 6.05.  Environmental Matters	 	39	 
	Section 6.06.  Leverage Ratio	 	39	 
	Section 6.07.  Interest Coverage Ratio	 	39	 

	

ARTICLE 7
NOTICE OF AMENDMENTS
AND WAIVERS

		
	Section 7.01.  Solicitation of Banks	 	39	 

	

ii

	

ARTICLE 8  
EVENTS OF DEFAULT;
REMEDIES 

		
	Section 8.01.  Events of Default	 	40	 
	Section 8.02.  Rights and Remedies	 	42	 

	

ARTICLE 9
THE AGENTS 

		
	Section 9.01.  Appointment and Authorization	 	42	 
	Section 9.02.  Administrative Agent and Affiliates	 	42	 
	Section 9.03.  Action by Administrative Agent	 	43	 
	Section 9.04.  Consultation with Experts	 	43	 
	Section 9.05.  Liability of Administrative Agent	 	43	 
	Section 9.06.  Indemnification	 	43	 
	Section 9.07.  Credit Decision	 	44	 
	Section 9.08.  Successor Administrative Agent	 	44	 
	Section 9.09.  Agents’ Fees	 	44	 
	Section 9.10.  Other Agents	 	44	 

	

ARTICLE 10
CHANGE IN CIRCUMSTANCES 

		
	Section 10.01.  Basis for Determining Interest Rate Inadequate or Unfair	 	44	 
	Section 10.02.  Illegality	 	45	 
	Section 10.03.  Increased Cost and Reduced Return	 	46	 
	Section 10.04.  Taxes	 	47	 
	Section 10.05.  Base Rate Loans Substituted for Affected Euro-Dollar Loans	 	48	 

	

ARTICLE 11
MISCELLANEOUS 

		
	Section 11.01.  Notices	 	49	 
	Section 11.02.  No Waivers	 	49	 
	Section 11.03.  Expenses; Indemnification	 	49	 
	Section 11.04.  Sharing of Set-offs	 	50	 
	Section 11.05.  Amendments and Waivers	 	50	 
	Section 11.06.  Successors and Assigns	 	51	 
	Section 11.07.  Collateral	 	52	 
	Section 11.08.  Governing Law; Submission to Jurisdiction	 
	52	 
	Section 11.09.  Counterparts; Integration; Effectiveness	 
	53	 
	Section 11.10.  WAIVER OF JURY TRIAL	 	53	 

	

iii

	

COMMITMENT SCHEDULE
PRICING SCHEDULE
SCHEDULE
1.1 — Significant Subsidiaries
SCHEDULE 4.12 — Plans 

EXHIBIT A — Note 
EXHIBIT
B — Opinion of Counsel for the Borrower 
EXHIBIT C — Opinion of Special Counsel
for the Administrative Agent
 EXHIBIT D — Assignment and Assumption Agreement 

iv 

	

     BRIDGE
LOAN AGREEMENT dated as of February 7, 2001 among ULTRAMAR DIAMOND SHAMROCK CORPORATION,
the BANKS party hereto, THE CHASE MANHATTAN BANK, as Administrative Agent and BANK OF
AMERICA, N.A., as Syndication Agent.  

     The
parties hereto agree as follows: 

ARTICLE 1 
DEFINITIONS 

     SECTION
1.1. Definitions. The following terms, as used herein, have the following meanings: 

     “Adjusted
Consolidated Debt” means, without duplication, (i) Indebtedness which
is or should be reflected on a consolidated balance sheet of the Borrower and
its Consolidated Subsidiaries, minus (ii) to the extent reflected as assets on a
consolidated balance sheet of the Borrower and its Consolidated Subsidiaries,
the sum of all (a) direct obligations of the United States of America, or of any
agency thereof, or obligations guaranteed as to principal and interest by the
United States of America, or of any agency thereof, in either case maturing not
more than 180 days from the date of acquisition thereof by such Person; (b)
cash; (c) time deposits, bankers acceptances or certificates of deposit issued
by a Restricted Bank maturing not more than 180 days from the date of
acquisition thereof; (d) commercial paper rated A-2 or better or P-2 or better
by S&P or Moody’s, respectively, maturing not more than 180 days from
the date of acquisition thereof; and (e) other debt obligations rated at least
A- by S&P or A3 by Moody’s maturing not more than 180 days from the
date of acquisition thereof. 

     “Administrative
Questionnaire” means, with respect to each Bank, an administrative
questionnaire in the form prepared by the Administrative Agent, completed by
such Bank and returned to the Administrative Agent (with a copy to the
Borrower). 

     “Affiliate”
means, with respect to any Person, any other Person directly or indirectly
controlling, controlled by, or under direct or indirect common control with such
Person. For purposes of this definition, a Person will be deemed to control
another Person if such Person possesses, directly or indirectly, the power to
(a) vote 10% or more of the securities having ordinary voting power for the
election of directors of such other Person or (b) 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. 

     “Administrative
Agent” means The Chase Manhattan Bank in its capacity as administrative
agent for the Banks hereunder, and its successors in such capacity. 

	

     “Agent”
means either of the Administrative Agent or the Syndication Agent. 

     “Applicable
Lending Office” means, with respect to any Bank, (i) in the case of its
Base Rate Loans, its Domestic Lending Office and, (ii) in the case of its
Euro-Dollar Loans, its Euro-Dollar Lending Office. 

     “Assignee”
has the meaning set forth in Section 11.06(c). 

     “Authorized
Officer” means (i) with respect to any Person that is a corporation,
the chief executive officer, the president, any executive vice president, any
senior vice president, any vice president, the treasurer, or the chief financial
officer of such Person, (ii) with respect to any Person that is a partnership,
the president, any executive vice president, any senior vice president, any vice
president, the treasurer or the chief financial officer of a general partner of
such Person, (iii) with respect to any Person that is a limited liability
company, the president, any executive vice president, any senior vice president,
any vice president, the treasurer or the chief financial officer of a member of
such Person, or (iv) with respect to any other Person, such representative of
such Person that is approved by the Administrative Agent in writing. No Person
will be deemed to be an Authorized Officer until named on a certificate of
incumbency of such Person delivered to the Administrative Agent on or after the
Effective Date. 

     “Availability
Period” means the period from and including the Effective Date to but
excluding the earlier of the Termination Date and the date of termination of the
Commitments. 

     “Bank”
means each bank listed on the signature pages hereof, each Assignee which
becomes a Bank pursuant to Section 11.06(c), and their respective successors. 

     “Bankruptcy
Code” means Title 11, Section 101 et seq. of the United States
Code titled “Bankruptcy,” as amended from time to time, and any
successor statute thereto. 

     “Base
Rate” means, for any day, a rate per annum equal to the higher of (i)
the Prime Rate for such day and (ii) the sum of ’ of 1% plus the Federal
Funds Rate for such day. 

     “Base
Rate Loan” means a Loan which bears interest at the Base Rate pursuant
to the applicable Notice of Borrowing or Notice of Interest Rate Election or the
provisions of Article 10. 

     “Borrower”
means Ultramar Diamond Shamrock Corporation, a Delaware corporation, and its
successors. 

2

	

     “Borrower’s
1999 Form 10-K” means the Borrower’s annual report on Form 10-K
for 1999, as filed with the Securities and Exchange Commission pursuant to the
Securities Exchange Act of 1934. 

     “Borrower’s
September 2000 Form 10-Q” means the Borrower’s quarterly report on
Form 10-Q for the quarter ended September 30, 2000, as filed with the Securities
and Exchange Commission pursuant to the Securities Exchange Act of 1934. 

     “Borrowing”
has the meaning set forth in Section 1.03. 

     “Canadian
Revolver” means the Credit Agreement dated as of December 19, 1996
among the Borrower, Canadian Ultramar Company, the banks listed therein and
Canadian Imperial Bank of Commerce, as agent, as the same may be amended,
modified or supplemented from time to time and any successor credit facility
refinancing all or a portion thereof. 

     “Capital
Lease” means any lease which in accordance with GAAP is required to be
capitalized on a consolidated balance sheet of the Borrower and its Consolidated
Subsidiaries, and for purposes of this Agreement, the amount of these
obligations will be the amount so capitalized. 

     “Change
of Control” will be deemed to have occurred at such time as any Person
or any Persons acting together which would constitute a “group” (a
“Group”) for purposes of Section 13(d) of the Securities Exchange Act
becomes the beneficial owner of 35% or more of the total voting power of all
classes of voting stock of the Borrower or such Person or Group succeeds in
having sufficient of its nominees elected to the board of directors of the
Borrower such that such nominees, when added to any existing director remaining
on the board of directors of the Borrower after such election who is an
Affiliate of such Group, will constitute a majority of the board of directors of
the Borrower. 

     “Closing
Date” means the date of the initial Borrowing. 

     “Code”
means the Internal Revenue Code of 1986, as amended from time to time, and any
successor statute. 

     “Commitment”
means (i) with respect to each Bank listed on the Commitment Schedule, the
amount set forth opposite the name of such Bank on the Commitment Schedule and
(ii) with respect to each Assignee which becomes a Bank pursuant to Section
11.06(c), the amount of the Commitment thereby assumed by it, in each case as
such amount may be changed from time to time pursuant to Section 2.09 or
11.06(b), or in any such case the obligation to make Loans hereunder not to
exceed such amount, as the context may require. 

 3

	

     “Commitment
Increase” shall have the meaning set forth in clause (e) of the
definition of Prepayment Event. 

     “Consolidated
Cash Interest Expense” means, for any period, Consolidated Interest
Expense excluding, however, interest expense not payable in cash (including
amortization of discount). 

     “Consolidated
EBITDA” means, for any period, the sum of (i) Consolidated Net Income
for such period plus (ii) to the extent deducted in the determination of such
Consolidated Net Income, (A) provisions for taxes based on income, (B)
Consolidated Interest Expense, (C) depreciation, (D) amortization and (E)
distributions made to the holders of TOPrS, all as determined on a consolidated
basis for the Borrower and its Consolidated Subsidiaries. 

     “Consolidated
Interest Expense” means, for any period, total interest expense
(including that portion attributable to Capital Leases in accordance with GAAP
and capitalized interest that is payable in cash), net of interest income, of
the Borrower and its Consolidated Subsidiaries on a consolidated basis with
respect to all outstanding Indebtedness of the Borrower and its Consolidated
Subsidiaries, including without limitation, all commissions, discounts, other
fees and charges owed with respect to letters of credit and bankers’
acceptance financing and distributions made to the holders of TOPrS. 

     “Consolidated
Net Income” means, for any period, the net income (or loss) of the
Borrower and its Consolidated Subsidiaries for such period; provided that
there shall be excluded from such calculation (i) any after-tax gains or losses
attributable to asset sales (other than sales in the ordinary course of
business) or returned surplus assets of any Plan and (ii) to the extent not
included in clause (i), any net extraordinary gains or net extraordinary losses. 

     “Consolidated
Net Tangible Assets” means at any date the total consolidated assets of
the Borrower and its Consolidated Subsidiaries less all goodwill, trade names,
trademarks, patents, unamortized debt discount and expense and other like
intangible items. 

     “Consolidated
Net Worth” shall mean, at any date, the sum of (i) the consolidated
shareholders’ equity of the Borrower and its Consolidated Subsidiaries plus
(ii) 50% of the liquidation value of outstanding TOPrS, each determined as of
such date, all computed in conformity with GAAP. 

     “Consolidated
Subsidiary” means at any date any Subsidiary or other entity the
accounts of which would be consolidated with those of the Borrower in its
consolidated financial statements if such statements were prepared as of such
date. 

     “Contest”
means, with respect to any Tax, Lien, or claim, a contest pursued in good faith
and by appropriate proceedings diligently conducted or pursued by other reasonable methods, so long as the
failure to pay or discharge any such Tax, Lien or claim during the pendency of such
contest would not otherwise have a Material Adverse Effect on the Person subject to any
such Tax, Lien or claim. 

 4

	

     “Contingent
Obligation” means, with respect to any Person, any obligation of such
Person guaranteeing or intended to guarantee any Indebtedness (“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, (a) to purchase any such
primary obligation or any property constituting direct or indirect security
therefor from the primary obligee, (b) to advance or supply funds (1) for the
payment of any such primary obligation or (2) to maintain working capital or
equity capital of the primary obligor or otherwise to maintain the net worth or
solvency of the primary obligor, (c) to purchase property, securities or
services primarily for the purpose of assuring the primary obligee of the
ability of the primary obligor to make payment of such primary obligation but
excluding agreements on the part of such Person to supply crude oil or petroleum
products or feedstock, or (d) otherwise to assure or hold harmless the primary
obligee against loss in respect of such primary obligation; provided,
however, that the term Contingent Obligation does not include endorsements of
instruments for deposit or collection in the ordinary course of business. 

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

     “Domestic
Business Day”  means any day except a Saturday, Sunday or other day on
which commercial banks in New York City are authorized or required by law to
close. 

     “Domestic
Lending Office” means, as to each Bank, its office located at its
address set forth in its Administrative Questionnaire (or identified in its
Administrative Questionnaire as its Domestic Lending Office) or such other
office as such Bank may hereafter designate as its Domestic Lending Office by
notice to the Borrower and the Administrative Agent. 

     “Effective
Date” means the date this Agreement becomes effective in accordance
with Section 11.09. 

     “Environmental
Approvals” means any Governmental Approvals required under applicable
Environmental Laws. 

     “Environmental
Claim” means any written notice, claim, demand or similar communication
by any Person alleging potential liability (including, without limitation,
potential liability for investigatory costs, cleanup costs, governmental
response costs, natural resources damages, property damages, personal injuries,
fines or penalties) arising out of, based on or resulting from (i) the presence,
or release into the environment, of any Material of
Environmental Concern at any location, whether or not owned by such Person or (ii)
circumstances forming the basis of any violation, or alleged violation, of any
Environmental Law or Environmental Approval.

 5

	

     “Environmental
Laws” means all Laws relating to pollution or protection of human
health or the environment (including, without limitation, ambient air, surface
water, ground water, land surface or subsurface strata), including, without
limitation, Laws relating to emissions, discharges, releases or threatened
releases of Materials of Environmental Concern, or otherwise relating to the
manufacture, processing, distribution, use, treatment, storage, disposal,
transport or handling of Materials of Environmental Concern. 

     “Equity
Interests” means shares of capital stock, partnership interests,
membership interests in a limited liability company, beneficial interests in a
trust or other equity ownership interests in a Person. 

     “ERISA”
means the Employee Retirement Income Security Act of 1974, as amended from time
to time. 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
Controlled Group” means the group consisting of the Borrower and all
members of a controlled group of corporations and all trades or businesses
(whether or not incorporated) under common control with the Borrower that,
together with the Borrower, are treated as a single employer under regulations
of the PBGC. 

     “ERISA
Plan” means (i) any Plan that (a) is not a Multiemployer Plan and (b)
has Unfunded Liabilities and (ii) any Plan that is a Multiemployer Plan. 

     “Euro-Dollar
Business Day” means any Domestic Business Day on which commercial banks
are open for international business (including dealings in dollar deposits) in
London. 

     “Euro-Dollar
Lending Office” means, as to each Bank, its office, branch or affiliate
located at its address set forth in its Administrative Questionnaire (or
identified in its Administrative Questionnaire as its Euro-Dollar Lending
Office) or such other office, branch or affiliate of such Bank as it may
hereafter designate as its Euro-Dollar Lending Office by notice to the Borrower
and the Administrative Agent. 

     “Euro-Dollar
Loan” means a Loan which bears interest at a Euro-Dollar Rate pursuant
to the applicable Notice of Borrowing or Notice of Interest Rate Election. 

     “Euro-Dollar
Margin” means a rate per annum determined in accordance with the
Pricing Schedule. 

 6

	

     “Euro-Dollar
Rate” means a rate of interest determined pursuant to Section 2.07(b)
on the basis of a London Interbank Offered Rate. 

     “Euro-Dollar
Reserve Percentage” means for any day that percentage (expressed as a
decimal) which is in effect on such day, as prescribed by the Board of Governors
of the Federal Reserve System (or any successor) for determining the maximum
reserve requirement for a member bank of the Federal Reserve System in New York
City with deposits exceeding five billion dollars in respect of
“Eurocurrency liabilities” (or in respect of any other category of
liabilities which includes deposits by reference to which the interest rate on
Euro-Dollar Loans is determined or any category of extensions of credit or other
assets which includes loans by a non-United States office of any Bank to United
States residents). 

     “Event
of Bankruptcy” means, with respect to any Person, the occurrence of any
of the following events: 

	 	
     (i)
the commencement by such Person of a voluntary case concerning itself under the
Bankruptcy Code or similar Law;

	 	
     (ii)
an involuntary case is commenced against such Person and the petition is not controverted
within 30 days, or is not dismissed within 60 days, after commencement of the case;

	 	
     (iii)
a custodian (as defined in the Bankruptcy Code) is appointed for, or takes charge of, all
or substantially all of the property of such Person or such Person commences any other
proceedings 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 such Person or there is commenced against such Person any
such proceeding which remains undismissed for a period of 60 days;

	 	
     (iv)
the entrance of any order for relief or other order approving any such case or proceeding
involving such Person;

	 	
     (v)
such Person is adjudicated insolvent or bankrupt;

	 	
     (vi)
such Person 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;

	 	
     (vii)
such Person makes a general assignment for the benefit of creditors;

	 	
     (viii)
such Person shall fail to pay, or shall state that it is unable to pay, or shall be
unable to pay, its debts generally as they become due;

	

7 

	

	 	
     (ix)
such Person shall by any act or failure to act consent to, approve of or acquiesce in any
of the foregoing for a period of 60 days; or

	 	
     (x)
any partnership or corporate action, as the case may be, is taken by such Person for the
purpose of effecting any of the foregoing.

	

     “Event
of Default” means the occurrence of any of the events described in
Section 8.01. 

     “Existing
A/R Facility” means the Credit Card and Trade Receivables Purchase
Agreements dated as of March 29, 1999 among certain of the Borrower’s
Subsidiaries, Asset Securitization Cooperative Corporation and Canadian Imperial
Bank of Commerce, as the same may be amended, modified or supplemented from time
to time and any successor credit facility refinancing all or a portion thereof. 

     “Existing
Committed Facilities” means (i) the Canadian Revolver, (ii) the
Existing Revolver and (iii) the Existing A/R Facility. 

     “Existing
Revolver” means the Credit Agreement dated as of July 28, 1997, as
amended December 31, 1998 among the Company, the banks party thereto and Morgan
Guaranty Trust Company of New York, as agent, as the same may be amended,
modified or supplemented from time to time and any successor credit facility
refinancing all or a portion thereof. 

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

     “Fee
Letter” means that certain Fee Letter, dated as of February 7, 2001, among the Borrower,
J.P. Morgan, a division of Chase Securities Inc,. and Banc of America Securities LLC. 

     “Fiscal
Quarter” means a fiscal quarter of the Borrower. 

 8

	

     “Fiscal Year”
means a fiscal year of the Borrower. 

     “GAAP”
means generally accepted accounting principles as in effect from time to time,
applied on a basis consistent (except for changes with respect to which the
Borrower”s independent public accountants concur) with the most recent
audited consolidated financial statements of the Borrower and its Consolidated
Subsidiaries delivered to the Banks. 

     “Governmental
Approval” means any authorization, consent, approval, license, lease,
ruling, permit, certification, exemption or filing for registration by or with
any Governmental Authority. 

     “Governmental
Authority” means any nation, state, sovereign, or government, any
federal, regional, state, local or political subdivision and any entity
exercising executive, legislative, judicial, regulatory or administrative
functions of or pertaining to government. 

     “Group
of Loans” means at any time a group of Loans consisting of (i) all
Loans which are Base Rate Loans at such time or (ii) all Euro-Dollar Loans
having the same Interest Period at such time; provided that, if a Loan of
any particular Bank is converted to or made as a Base Rate Loan pursuant to
Article 10, such Loan shall be included in the same Group or Groups of Loans
from time to time as it would have been in if it had not been so converted or
made. 

     “Indebtedness”
means, of any Person, without duplication, (i) all obligations of such Person
for borrowed money or for the deferred purchase price of property or services
(other than current trade payables within credit terms normally prevailing in
the industry and accrued liabilities incurred in the ordinary course of business
of such Person), (ii) all obligations of such Person in respect of principal
evidenced by a note, bond, debenture or similar instrument, (iii) the
obligations of such Person which are capitalized under Capital Leases, (iv) all
non-contingent obligations (and, for purposes of Sections 6.03 and 8.01(d), all
contingent obligations) of such Person to reimburse any bank or other Person in
respect of amounts paid under a letter of credit or similar instrument, (v) all
Indebtedness of any other Person secured by any Lien on any property owned by
such Person, whether or not such Indebtedness has been assumed by such Person,
(vi) all obligations of such Person in respect of surety bonds, appeal bonds or
other similar instruments, (vii) in the case of UDS Capital I, 50% of the
liquidation value of outstanding TOPrS and (viii) all Contingent Obligations of
such Person. 

     “Indemnitee”
has the meaning set forth in Section 11.03(a). 

     “Interest
Period” means, with respect to each Euro-Dollar Loan, the period
commencing on the date of borrowing specified in the applicable Notice of
Borrowing or on the date specified in an applicable Notice of Interest Rate
Election and ending one, two, three or six months thereafter, as the Borrower
may elect in such notice; provided that: 

9 

	

	 	
     (i)
any Interest Period which would otherwise end on a day which is not a Euro-Dollar
Business Day will be extended to the next succeeding Euro-Dollar Business Day unless such
Euro-Dollar Business Day falls in another calendar month, in which case such Interest
Period will end on the next preceding Euro-Dollar Business Day;

	 	
     (ii)
any Interest Period which begins on the last Euro-Dollar Business Day of a calendar month
(or on a day for which there is no numerically corresponding day in the calendar month at
the end of such Interest Period) will, subject to clause (iii) below, end on the last
Euro-Dollar Business Day of a calendar month; and

	 	
     (iii)
any Interest Period which would otherwise end after the Termination Date will end on the
Termination Date.

	

     “Interest
Rate Protection Agreements” means any interest rate exchange, collar,
cap or similar agreements providing interest rate protection entered into by the
Borrower or any of its Subsidiaries. 

     “Investment”
means any investment in any Person, whether by means of share purchase, capital
contribution, loan, Guarantee, time deposit or otherwise (but not including any
demand deposit). 

     “Law”
means, with respect to any Governmental Authority, any constitutional provision,
law, statute, rule, regulation, ordinance, treaty, order, decree, judgment,
decision, certificate, holding, injunction, Governmental Approval or requirement
of such Government Authority along with the interpretation and administration
thereof by any Governmental Authority charged with the interpretation or
administration thereof. Unless the context clearly indicates otherwise, the term
“Law” includes each of the foregoing (and each provision thereof) as
in effect at the time in question, including any amendments, supplements,
replacements, or other modifications thereto or thereof, and whether or not in
effect at the date of this Agreement. 

     “Lien”
means, with respect to any asset, any mortgage, lien, pledge, charge, security
interest or encumbrance of any kind, or any other type of preferential
arrangement that has substantially the same practical effect as a security
interest, in respect of such asset. For the purposes of this Agreement, the
Borrower or any Subsidiary will be deemed to own subject to a Lien any asset
which it has acquired or holds subject to the interest of a vendor or lessor
under any conditional sale agreement, Capital Lease or other title retention
agreement relating to such asset. 

     “Loan”
means a loan made by a Bank pursuant to Section 2.01; provided that, if
any such loan or loans (or portions thereof) are combined or subdivided pursuant
to a Notice of Interest Rate Election, the term Loan refers to the combined
principal amount resulting from such
combination or to each of the separate principal amounts resulting from such subdivision,
as the case may be.

10 

	

     “Loan
Documents” means this Agreement and the Notes. 

     “London
Interbank Offered Rate” has the meaning set forth in Section 2.07(b). 

     “Margin Stock”
has the meaning provided such term in Regulation U. 

     “Material
Adverse Effect” means a material adverse effect upon (i) the business,
results of operations or financial condition of the Borrower and its
Consolidated Subsidiaries taken as a whole, (ii) the ability of the Borrower to
perform under any Loan Document or (iii) the ability of any of the Banks to
enforce any of the Obligations or any of their rights and remedies against the
Borrower under the Loan Documents. 

     “Material
Financial Obligation” means a principal or face amount of Indebtedness
and/or payment or collateralization obligations in respect of Interest Rate
Protection Agreements of the Borrower and/or one or more of its Subsidiaries,
arising in one or more related or unrelated transactions, exceeding in the
aggregate $25,000,000. 

     “Materials
of Environmental Concern” means all materials, substances and wastes
regulated as hazardous under Environmental Laws. 

     “Moody’s”means
Moody’s Investors Service, Inc. 

     “Multiemployer
Plan” means a Plan which is a “multiemployer plan” as defined
in Section 4001(a)(3) of ERISA. 

     “Net
Cash Proceeds” means, with respect to any event (a) the cash proceeds
received in respect of such event including (i) any cash received in respect of
any non-cash proceeds, but only as and when received, (ii) in the case of a
casualty, insurance proceeds, and (iii) in the case of a condemnation or similar
event, condemnation awards and similar payments, net of (b) the sum of (i) all
reasonable fees and out-of-pocket expenses paid by the Borrower and the
Subsidiaries to third parties (other than Affiliates) in connection with such
event, (ii) in the case of a sale, transfer or other disposition of an asset
(including pursuant to a sale and leaseback transaction or a casualty or a
condemnation or similar proceeding), the amount of all payments required to be
made by the Borrower and the Subsidiaries as a result of such event to repay
Indebtedness (other than Loans) secured by such asset or otherwise subject to
mandatory prepayment as a result of such event, and (iii) the amount of all
taxes paid (or reasonably estimated to be payable) by the Borrower and the
Subsidiaries, and the amount of any reserves established by the Borrower and the Subsidiaries to fund contingent
liabilities reasonably estimated to be payable, in each case during the year that such
event occurred or the next succeeding year and that are directly attributable to such
event (as determined reasonably and in good faith by the chief financial officer of the
Borrower). With respect to any Commitment Increase, the Borrower shall be deemed to have
received cash proceeds on the date of such Commitment Increase in the amount of such
Commitment Increase.

 11

	

     “Notes”
means promissory notes of the Borrower, substantially in the form of Exhibit A
hereto, evidencing the Borrower’s obligation to repay the Loans, and
“Note” means any one of such promissory notes issued hereunder. 

     “Notice
of Borrowing” has the meaning set forth in Section 2.03. 

     “Notice of
Interest Rate Election” has the meaning set forth in Section 2.10. 

     “Obligations”
means all obligations, liabilities and indebtedness of every nature of the
Borrower from time to time owing to the Administrative Agent or any Bank under
any Loan Document including, without limitation, (i) all principal, interest,
and fees, (ii) any amounts the Administrative Agent or any Bank expends on
behalf of the Borrower because the Borrower under the Loan Documents fails to
make any such payment when required under the terms of any Loan Document, (iii)
all amounts required to be paid under any indemnification or similar provision
and (iv) all fees and expenses required to be paid pursuant to Section 11.03 of
this Agreement. 

     “Parent”
means, with respect to any Bank, any Person controlling such Bank. 

     “Participant”
has the meaning set forth in Section 11.06(a). 

     “PBGC”
means the Pension Benefit Guaranty Corporation established under ERISA, or any
successor thereto. 

     “Permitted
Transaction” has the meaning set forth in Section 6.01(a). 

     “Person”
means an individual, a corporation, a limited liability company, a partnership,
an association, a trust or any other entity or organization, including a
government or political subdivision or an agency or instrumentality thereof. 

     “Plan”
means any employee benefit plan covered by Title IV of ERISA, the funding
requirements of which: (i) were the responsibility of the Borrower or a member
of the ERISA Controlled Group at any time within the five years immediately
preceding the Effective Date, (ii) are currently the responsibility of the
Borrower or a member of the ERISA Controlled Group, or (iii) hereafter become
the responsibility of the Borrower or a member of the ERISA Controlled Group,
including any such plans as may have been, or may hereafter be, terminated for
whatever reason; provided, however, that solely for purposes of Section 4.12 and
Section 5.01(e) hereof, (A) the term “ERISA Controlled Group”in clauses (i) and
(ii) will not include a Person that was a member of the ERISA Controlled Group solely as a
result of the acquisition of a member of such ERISA Controlled Group by Lasmo plc and (B)
the Ultramar U.S. Employees Retirement Plan with respect to any period on or after
January 1, 1993 should not be considered a Plan under clause (i).  

12 

	

     “Prepayment
Event” means: (a) any sale, lease or other disposition (including any
such transaction effected by way of merger or consolidation) by the Borrower or
any of its Subsidiaries of any asset, including without limitation any
sale-leaseback transaction, whether or not involving a Capital Lease, but
excluding (i) dispositions of temporary cash investments, inventory and used,
surplus or worn out equipment in the ordinary course of business, (ii)
dispositions to the Borrower or a wholly-owned Subsidiary of the Borrower and
(iii) dispositions of accounts receivable and related assets pursuant to the
Existing A/R Facility; provided that a disposition of assets not excluded
by clauses (i) through (iii) above after the Effective Date shall not constitute
a Prepayment Event unless and until (and only to the extent that) the aggregate
Net Cash Proceeds from such disposition, when combined with all other such
dispositions previously made after the Effective Date, exceeds $10,000,000; or 

     (b)
any casualty or other insured damage to, or any taking under power of eminent
domain or by condemnation or similar proceeding of, any property or asset of the
Borrower or any Subsidiary, but only to the extent that the Net Cash Proceeds
therefrom that have not been applied to repair, restore or replace such property
or asset within 180 days after such event exceed $10,000,000; or 

     (c)
the issuance by the Borrower or any Subsidiary of any Equity Interests, or the
receipt by the Borrower or any Subsidiary of any capital contribution, other
than (i) any such issuance of Equity Interests to, or receipt of any such
capital contribution from, the Borrower or a Subsidiary and (ii) the issuance by
the Borrower of common stock held through the Borrower’s existing grantor
stock ownership program; or 

     (d)
the incurrence by the Borrower or any Subsidiary of any Indebtedness, other than
(i) Indebtedness under the Existing Committed Facilities and (ii) issuance by
the Borrower of commercial paper backstopped by the Existing Committed
Facilities; or 

     (e)
any amendment to or replacement after the Effective Date of any of the Existing
Committed Facilities which provides for an increase (a “Commitment
Increase”) in the principal amount of loans and letters of credit
available to the Borrower thereunder. 

     “Pricing
Schedule” means the Pricing Schedule attached hereto. 

 13

	

     “Prime
Rate” means the rate of interest publicly announced by The Chase
Manhattan Bank in New York City from time to time as its Prime Rate. 

     “PUHCA”
means the Public Utility Holding Company Act of 1935, as amended. 

     “Quarterly
Payment Dates” means each March 31, June 30, September 30 and December
31. 

     “Reference
Banks” means the principal London offices of The Chase Manhattan Bank
and Bank of America, N.A. 

     “Regulations
D, T, U and X” means such Regulations of the Federal Reserve Board as
may be from time to time in effect and any successor to all or any portion
thereof. 

     “Regulation
S-X” means Regulation S-X of the SEC and any successor to all or any
portion thereof. 

     “Reportable
Event” has the meaning set forth in Section 4043(c) of ERISA (other
than a Reportable Event as to which the provision of 30 days’ notice to the
PBGC is waived under applicable regulations or with respect to which the PBGC
has by public notice announced that it will not impose penalties for failure to
comply), or is the occurrence of any of the events described in Section 4063(a)
or 4068(a) of ERISA. 

     “Required
Banks” means at any time Banks having at least 66-2/3% of the aggregate
amount of the sum of the total unused Commitments at such time or, if the
Commitments shall have terminated, holding Notes evidencing at least 66-2/3% of
the aggregate unpaid principal amount of the Loans. 

     “Restricted
Bank” means (i) any Bank, (ii) any “Bank” under the Existing
Revolver, (iii) any “Lender” under the Canadian Revolver and (iv) any
other commercial bank whose unsecured long-term debt is rated BBB+ or better by
S&P and Baa1 or better by Moody’s. 

     “S
& P” means Standard & Poor’s Ratings Services. 

     “SEC”
means the Securities and Exchange Commission. 

     “Securities
Exchange Act” means the Securities Exchange Act of 1934, as amended
from time to time. 

     “Significant
Subsidiary” means (i) each of the Subsidiaries set forth in Schedule
1.1 and their respective successors and (ii) any other Subsidiary of the
Borrower which is or would hereafter be classified as a “significant
subsidiary” of the Borrower under Regulation S-X of the
Securities and Exchange Commission as in effect on the date hereof.  

 14

	

     “Solvent”
when used with respect to any Person, means that, as of any date of
determination, (a) the amount of the “present fair saleable value” of
the assets of such Person will, as of such date, exceed the amount of all
“liabilities of such Person, contingent or otherwise”, as of such
date, as such quoted terms are determined in accordance with applicable federal
and state laws governing determinations of the insolvency of debtors, (b) the
present fair saleable value of the assets of such Person will, as of such date,
be greater than the amount that will be required to pay the liability of such
Person on its debts as such debts become absolute and matured, (c) such Person
will not have, as of such date, an unreasonably small amount of capital with
which to conduct its business, and (d) such Person will be able to pay its debts
as they mature. For purposes of this definition, (i) “debt” means
liability on a “claim”, and (ii) “claim” means any (x) right
to payment, whether or not such a right is reduced to judgment, liquidated,
unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed,
legal, equitable, secured or unsecured or (y) right to an equitable remedy for
breach of performance if such breach gives rise to a right to payment, whether
or not such right to an equitable remedy is reduced to judgment, fixed,
contingent, matured or unmatured, disputed, undisputed, secured or unsecured. 

     “Subsidiary”
means, with respect to any Person, (i) any corporation 50% or more 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
have or might have voting power by reason of the happening of any contingency)
is at the time owned by such Person directly or indirectly through Subsidiaries
and (ii) any partnership, limited liability company, association, joint venture,
trust or other entity in which such Person, directly or indirectly through
Subsidiaries, is either a general partner, has a 50% or greater equity interest
at the time or otherwise owns a controlling interest. 

     “Syndication
Agent” means Bank of America, N.A., in its capacity as syndication agent in respect
of this Agreement. 

     “Termination
Date” means February 5, 2002, or, if such day is not a Euro-Dollar
Business Day, the next preceding Euro-Dollar Business Day. 

     “Termination
Event” means (i) a Reportable Event, or (ii) the initiation of any
action by the Borrower, any member of the ERISA Controlled Group or any ERISA
Plan fiduciary to terminate an ERISA Plan (other than pursuant to Section
4041(b) of ERISA) or the treatment of an amendment to an ERISA Plan as a
termination under ERISA, or (iii) the institution of proceedings by the PBGC
under Section 4042 of ERISA to terminate an ERISA Plan or to appoint a trustee
to administer any ERISA Plan. 

 15

	

     “TOPrS”
means the 8.32% Trust Originated Preferred Securities of UDS Capital I described
in the Prospectus Supplement dated as of June 20, 1997. 

     “Unfunded
Liabilities” means, with respect to any Plan at any time, the amount
(if any) by which (i) the actuarial present value of accumulated benefits under
such Plan exceeds (ii) the fair market value of all Plan assets allocable to
such benefits, all determined as of the then most recent valuation date for such
Plan (on the basis of the assumptions used in the most recent actuarial
valuation report for such Plans). 

     “United
States” means the United States of America, including the States and
the District of Columbia, but excluding its territories and possessions. 

     SECTION
1.2. Accounting Terms and Determinations. Unless otherwise specified
herein, all accounting terms used herein shall be interpreted, all accounting
determinations hereunder shall be made, and all financial statements required to
be delivered hereunder shall be prepared in accordance with GAAP;
provided that, if the Borrower notifies the Administrative Agent that the
Borrower wishes to amend any covenant in Article 5 or Article 6 or the
definition of any term used therein to eliminate the effect of any change in
GAAP on the operation of such covenant (or if the Administrative Agent notifies
the Borrower that the Required Banks wish to amend Article 5 or Article 6 or any
such definition for such purpose), then the Borrower’s compliance with such
covenant shall be determined on the basis of GAAP in effect immediately before
the relevant change in GAAP became effective, until either such notice is
withdrawn or such covenant or definition is amended in a manner satisfactory to
the Borrower and the Required Banks. 

     SECTION
1.3. Types of Borrowings. The term “Borrowing” denotes the
aggregation of Loans to be made by the Banks to the Borrower pursuant to Article
2 on the same day, all of which Loans are of the same type (subject to Article
10) and, except in the case of Base Rate Loans, have the same initial Interest
Period. Borrowings are classified for purposes of this Agreement by reference to
the pricing of Loans comprising such Borrowing (e.g., a “Euro-Dollar
Borrowing” is a Borrowing comprised of Euro-Dollar Loans). 

ARTICLE 2

THE CREDITS 

     SECTION
2.1. Commitments to Lend. Subject to the terms and conditions set forth
in this Agreement, each Bank severally agrees to make Loans to the Borrower from
time to time during the Availability Period in an aggregate principal amount
that will not result in such Bank’s Loans exceeding such Bank’s
Commitment. Within the foregoing limits and subject to the terms and conditions
set forth herein, the Borrower may borrow under this
Section, prepay Loans to the extent permitted by Section 2.11 and reborrow at any time
during the Availability Period under this Section.  

16 

	

     SECTION
2.2. Loans and Borrowings. (a)  Each Loan shall be made as part
of a Borrowing consisting of Loans made by the Banks ratably in accordance with
their respective Commitments. The failure of any Bank to make any Loan required
to be made by it shall not relieve any other Bank of its obligations hereunder;
provided that the Commitments of the Banks are several and no Bank shall be
responsible for any other Bank’s failure to make Loans as required. 

            (b)
Each Borrowing shall be made entirely in Base Rate or Euro-Dollar Loans, as the Borrower
may request in accordance herewith. At the time that each Borrowing comprised of Base
Rate Loans is made, and at the commencement of each initial Interest Period for any
Borrowing comprised of Euro-Dollar Loans, such Borrowing shall be in an aggregate
principal amount of $5,000,000 or any larger multiple of $1,000,000; provided that such
Borrowing may be in an aggregate amount that is equal to the entire unused balance of the
Commitment. Both Base Rate Loans and Euro-Dollar Loans may be outstanding at the same
time. 

            (c)
Notwithstanding any other provision of this Agreement, the Borrower shall not be entitled
to request, or to elect to convert or continue, any Borrowing if the Interest Period
requested with respect thereto would end after the Termination Date. 

     SECTION
2.3. Notice of Borrowing. The Borrower shall give the Administrative
Agent notice (a “Notice of Borrowing”) not later than 10:30 A.M. (New
York City time) on (a) the date of each Base Rate Borrowing, and (b) the third
Euro-Dollar Business Day before each Euro-Dollar Borrowing, specifying: 

	 	
     (i)
the date of such Borrowing, which shall be a Domestic Business Day in the case of a Base
Rate Borrowing or a Euro-Dollar Business Day in the case of a Euro-Dollar Borrowing and
in any case shall be on or after the Effective Date but on or prior to the Termination
Date;

	 	
     (ii)
the aggregate amount of such Borrowing;

	 	
     (iii)
whether the Loans comprising such Borrowing are to bear interest initially at the Base
Rate or a Euro-Dollar Rate; and

	 	
     (iv)
in the case of a Euro-Dollar Borrowing, the duration of the initial Interest Period
applicable thereto, subject to the provisions of the definition of Interest Period.

	

 17

	

     SECTION
2.4. Notice to Banks; Funding of Loans. (a) Promptly after receiving a
Notice of Borrowing, the Administrative Agent shall notify each Bank of the
contents thereof and of such Bank’s share of such Borrowing and such Notice
of Borrowing shall not thereafter be revocable by the Borrower. 

     (b)
Not later than 1:00 P.M. (New York City time) on the date of each Borrowing, each Bank
shall make available its share of such Borrowing, in Federal or other funds immediately
available in New York City, to the Administrative Agent at its address referred to in
Section 11.01. Unless the Administrative Agent determines that any applicable condition
specified in Article 3 has not been satisfied, the Administrative Agent will make the
funds so received from the Banks available to the Borrower at the Administrative Agent's
aforesaid address. 

     (c)
Unless the Administrative Agent shall have received notice from a Bank before the date of
any Borrowing that such Bank will not make available to the Administrative Agent such
Bank's share of such Borrowing, the Administrative Agent may assume that such Bank has
made such share available to the Administrative Agent on the date of such Borrowing in
accordance with subsection (b) of this Section and the Administrative Agent may, in
reliance upon such assumption, make available to the Borrower on such date a
corresponding amount. If and to the extent that such Bank shall not have so made such
share available to the Administrative Agent, such Bank and, if such Bank shall have
failed to do so within three Domestic Business Days of demand therefor by the
Administrative Agent, the Borrower severally agree to repay to the Administrative Agent
forthwith on demand such corresponding amount together with interest thereon, for each
day from the date such amount is made available to the Borrower until the date such
amount is repaid to the Administrative Agent, at the Federal Funds Rate. If such Bank
shall repay to the Administrative Agent such corresponding amount, such amount so repaid
shall constitute such Bank's Loan included in such Borrowing for purposes of this
Agreement. 

     SECTION
2.5. Notes. (a) The Borrower’s obligation to repay the Loans of each
Bank shall be evidenced by a single Note payable to the order of such Bank for
the account of its Applicable Lending Office in an amount equal to the aggregate
unpaid principal amount of such Bank’s Loans. 

     (b)
Each Bank may, by notice to the Borrower and the Administrative Agent, request that the
Borrower's obligation to repay such Bank's Loans of a particular type be evidenced by a
separate Note in an amount equal to the aggregate unpaid principal amount of such Loans.
Each such Note shall be in substantially the form of Exhibit A hereto with appropriate
modifications to reflect the fact that it relates solely to Loans of the relevant type.
Each reference in this Agreement to the "Note" of such Bank shall be deemed to refer to
and include any or all of such Notes, as the context may require. 

18 

	

     (c)
Promptly after receiving each Bank's Note pursuant to Section 3.01(a), 3.01(d), the
Administrative Agent shall forward such Note to such Bank. Each Bank shall record the
date, amount and type of each Loan made by it and the date and amount of each payment of
principal made by the Borrower with respect thereto, and may, if such Bank so elects in
connection with any transfer or enforcement of its Note, endorse on the schedule forming
a part thereof appropriate notations to evidence the foregoing information with respect
to each such Loan then outstanding; provided that a Bank's failure to make any such
recordation or endorsement shall not affect the Borrower's obligations hereunder or under
the Notes. Each Bank is hereby irrevocably authorized by the Borrower so to endorse its
Note and to attach to and make a part of its Note a continuation of any such schedule as
and when required. 

     SECTION
2.6. Maturity of Loans. Each Loan shall mature, and the principal amount
thereof shall be due and payable (together with interest accrued thereon), on
the Termination Date. 

     SECTION
2.7. Interest Rates. (a) The unpaid principal amount of each Base Rate
Loan shall bear interest on the outstanding principal amount thereof, for each
day from the date such Loan is made until it becomes due, at a rate per annum
equal to the Base Rate for such day. Such interest shall be payable (i)
quarterly in arrears on each Quarterly Payment Date, (ii) with respect to the
principal amount of any Base Rate Loan converted to a Euro-Dollar Loan or
prepaid, on the date such amount is so converted or prepaid, and (iii) on the
Termination Date. Any overdue principal of or interest on any Base Rate Loan
shall bear interest, payable on demand, for each day until paid at a rate per
annum equal to the sum of 1% plus the Base Rate for such day. 

     (b)
The unpaid principal amount of each Euro-Dollar Loan shall bear interest on the
outstanding principal amount thereof, for each day during each Interest Period applicable
thereto, at a rate per annum equal to the sum of the Euro-Dollar Margin for such day plus
the London Interbank Offered Rate applicable to such Interest Period. Such interest shall
be payable for each Interest Period on the last day thereof and, if such Interest Period
is longer than three months, at intervals of three months after the first day thereof. 

     The
“London Interbank Offered Rate” applicable to any Interest
Period means the average (rounded upward, if necessary, to the next higher 1/16
of 1%) of the respective rates per annum at which deposits in dollars are
offered to each of the Reference Banks in the London interbank market at
approximately 11:00 A.M. (London time) two Euro-Dollar Business Days before the
first day of such Interest Period in an amount approximately equal to the
principal amount of the Euro-Dollar Loan of such Reference Bank to which such
Interest Period is to apply and for a period of time comparable to such Interest
Period. 

 19

	

     (c)
Any overdue principal of or interest on any Euro-Dollar Loan shall bear interest, payable
on demand, for each day until paid at a rate per annum equal to the sum of 1% plus the
Euro-Dollar Margin for such day plus the higher of (i) the London Interbank Offered Rate
applicable to such Loan at the date such payment was due and (ii) the quotient obtained
(rounded upwards, if necessary, to the next higher 1/100 of 1%) by dividing (x) the
average (rounded upwards, if necessary, to the next higher 1/16 of 1%) of the respective
rates per annum at which one day (or, if such amount due remains unpaid more than three
Euro-Dollar Business Days, then for such other period of time not longer than six months
as the Administrative Agent may select) deposits in dollars in an amount approximately
equal to such overdue payment due to each of the Reference Banks are offered to such
Reference Bank in the London interbank market for the applicable period determined as
provided above by (y) 1.00 minus the Euro-Dollar Reserve Percentage (or, if the
circumstances described in clause (a) or (b) of Section 10.01 shall exist, at a rate per
annum equal to the sum of 1% plus the rate applicable to Base Rate Loans for such day). 

     (d)
The Administrative Agent shall determine each interest rate applicable to the Loans
hereunder. The Administrative Agent shall promptly notify the Borrower and the Banks of
each rate of interest so determined, and its determination thereof shall be conclusive in
the absence of manifest error. 

     (e)
Each Reference Bank agrees to use its best efforts to furnish quotations to the
Administrative Agent as contemplated by this Section. If any Reference Bank does not
furnish a timely quotation, the Administrative Agent shall determine the relevant
interest rate on the basis of the quotation or quotations furnished by the remaining
Reference Bank or Banks or, if none of such quotations is available on a timely basis,
the provisions of Section 10.01 shall apply. 

     SECTION 2.8. Fees.
(a) The Borrower shall pay to the Administrative Agent, for the account of the
Banks, a commitment fee at the Commitment Fee Rate (determined daily in
accordance with the Pricing Schedule). Such commitment fee shall accrue from and
including the Effective Date to but excluding the date on which the Commitments
terminate in their entirety, on the daily aggregate unused amount of the
Commitments. Such commitment fee shall be allocated among the Banks ratably in
proportion to their Commitments. (b) Fees accrued under this Section shall be
payable quarterly in arrears on each Quarterly Payment Date and on the date on
which the Commitments terminate in their entirety. 

     SECTION
2.9. Termination or Reduction of Commitment. (a) The Borrower may, upon
at least three Domestic Business Days’ notice to the Administrative Agent,
(i) terminate the Commitments at any time, or (ii) ratably reduce the
Commitments from time to time by an amount of $5,000,000 or any larger multiple
of $1,000,000. Promptly after receiving a notice pursuant to this subsection,
the Administrative Agent shall notify each Bank of the contents thereof. Each
notice delivered by the Borrower pursuant
to this Section shall be irrevocable; provided that a notice of termination of the
Commitments delivered by the Borrower may state that such notice is conditioned upon the
effectiveness of other credit facilities, in which case such notice may be revoked by the
Borrower (by notice to the Administrative Agent on or prior to the specified effective
date) if such condition is not satisfied.  

 20

	

     (b) If
the Borrower or any of its Subsidiaries shall at any time, or from time to time, after
the Effective Date but prior to the Termination Date receive any Net Cash Proceeds of any
Prepayment Event, then the Commitments shall at such time be reduced in an aggregate
amount equal to the amount of such Net Cash Proceeds. Each such reduction of Commitments
shall be applied ratably to the respective Commitment of each Bank until all such
Commitments have been reduced to zero. The Borrower shall give the Administrative Agent
prompt notice of each reduction in Commitments pursuant to this Section and promptly
thereafter the Administrative Agent shall notify each Bank thereof. 

     (c)
Unless previously terminated, the Commitments shall terminate in their entirety at the
close of business on the Termination Date. 

     SECTION
2.10. Method of Electing Interest Rates. (a) The Loans included in each
Borrowing shall bear interest initially at the type of rate specified by the
Borrower in the applicable Notice of Borrowing. Thereafter, the Borrower may
from time to time elect to change or continue the type of interest rate borne by
each Group of Loans (subject to subsection (d) of this Section and the
provisions of Article 10), as follows: 

	 	
     (i)
if such Loans are Base Rate Loans, the Borrower may elect to convert such Loans to
Euro-Dollar Loans as of any Euro-Dollar Business Day; and

	 	
     (ii)
if such Loans are Euro-Dollar Loans, the Borrower may elect to convert such Loans to Base
Rate Loans or elect to continue such Loans as Euro-Dollar Loans for an additional
Interest Period, subject to Section 2.14 if any such conversion is effective on any day
other than the last day of the then current Interest Period applicable to such Loans.

	

Each such election shall be
made by delivering a notice (a “Notice of Interest Rate Election”) to
the Administrative Agent not later than 10:30 A.M. (New York City time) on the
third Euro-Dollar Business Day before the conversion or continuation selected in
such notice is to be effective. A Notice of Interest Rate Election may, if it so
specifies, apply to only a portion of the aggregate principal amount of the
relevant Group of Loans; provided that (i) such portion is allocated
ratably among the Loans comprising such Group and (ii) the portion to which such
Notice applies, and the remaining portion to which it does not apply, are each
$5,000,000 or any larger multiple of $1,000,000. If no such
notice is timely received before the end of an Interest Period for any Group of
Euro-Dollar Loans, the Borrower shall be deemed to have elected that such Group of Loans
be converted to Base Rate Loans at the end of such Interest Period.  

21 

	

     (b)
Each Notice of Interest Rate Election shall specify: 

	 	
     (i)
the Group of Loans (or portion thereof) to which such notice applies;

	 	
     (ii)
the date on which the conversion or continuation selected in such notice is to be
effective, which shall comply with the applicable clause of subsection (a) above;

	 	
     (iii)
if the Loans comprising such Group are to be converted, the new type of Loans and, if the
Loans resulting from such conversion are to be Euro-Dollar Loans, the duration of the
next succeeding Interest Period applicable thereto; and

	 	
     (iv)
if such Loans are to be continued as Euro-Dollar Loans for an additional Interest Period,
the duration of such additional Interest Period.

	

Each Interest Period
specified in a Notice of Interest Rate Election shall comply with the provisions
of the definition of Interest Period. 

     (c)
Promptly after receiving a Notice of Interest Rate Election from the Borrower
pursuant to subsection (a) above, the Administrative Agent shall notify each
Bank of the contents thereof and such notice shall not thereafter be revocable
by the Borrower. 

     (d)
The Borrower shall not be entitled to elect to convert any Loans to, or continue
any Loans for an additional Interest Period as, Euro-Dollar Loans if a Default
shall have occurred and be continuing when the Borrower delivers notice of such
election to the Administrative Agent. 

     SECTION
2.11. Optional Prepayments. (a) Subject in the case of any Euro-Dollar
Loans to Section 2.14, the Borrower may, upon at least one Domestic Business
Day’s notice to the Administrative Agent, without penalty or premium except
as specified herein, prepay any Group of Base Rate Loans or upon at least three
Euro-Dollar Business Days’ notice to the Administrative Agent, prepay any
Group of Euro-Dollar Loans, in each case in whole at any time, or from time to
time in part in amounts aggregating $5,000,000 or any larger multiple of
$1,000,000, by paying the principal amount to be prepaid together with interest
accrued thereon to the date of prepayment. Each such
optional prepayment shall be applied to prepay ratably the Loans of the several Banks
included in such Group of Loans.  

 22

	

     (b)
Promptly upon receiving a notice of prepayment pursuant to this Section, the
Administrative Agent shall notify each Bank of the contents thereof and of such
Bank’s ratable share of such prepayment, and such notice shall not
thereafter be revocable by the Borrower. 

     SECTION
2.12. Mandatory Prepayment. (a) In the event and on each occasion on and
after the Closing Date that any Net Cash Proceeds are received by or on behalf
of the Borrower or any Subsidiary in respect of any Prepayment Event while any
Loans remain unpaid, the Borrower shall, within three Euro-Dollar Business Days
after such Net Cash Proceeds are received, prepay the Loans in an aggregate
amount equal to such Net Cash Proceeds together with interest accrued thereon to
the date of prepayment. Each such mandatory prepayment shall be applied to
prepay ratably the Loans of the several Banks. 

     (b)
Prior to any mandatory prepayment of the Loans pursuant to this Section, the
Borrower shall select the Group or Groups of Loans to be prepaid and shall
notify the Administrative Agent by telephone (confirmed by telecopy) of such
prepayment (i) in the case of prepayment of a Group of Euro-Dollar Loans (which
shall be subject to Section 2.14), not later than 11:00 a.m., New York City
time, three Euro-Dollar Business Days before the date of prepayment or (ii) in
the case of prepayment of a Group of Base Rate Loans, not later than 11:00 a.m.,
New York City time, one Domestic Business Day before the date of prepayment. 

     (c)
Promptly upon receiving a notice of prepayment pursuant to this Section, the
Administrative Agent shall notify each Bank of the contents thereof and of such
Bank’s ratable share of such prepayment, and such notice shall not
thereafter be revocable by the Borrower; provided that, if a notice of
prepayment is given in connection with a conditional notice of termination of
the Commitments as contemplated by Section 2.09, then such notice of
prepayment may be revoked if such notice of termination is revoked in accordance
with Section 2.09. Prepayments shall be accompanied by accrued interest to
the extent required by Section 2.07. 

     SECTION
2.13. General Provisions as to Payments. (a) The Borrower shall make each
payment of principal of, and interest on, the Loans and of fees hereunder,
without set-off, counterclaim or other deduction, not later than 1:00 P.M. (New
York City time) on the date when due, in Federal or other funds immediately
available in New York City, to the Administrative Agent at its address referred
to in Section 11.01. The Administrative Agent will promptly distribute to each
Bank its ratable share of each such payment received by the Administrative Agent
for the account of the Banks. Whenever any payment of principal of, or interest
on, the Base Rate Loans or of fees shall be due on a day which is not a Domestic
Business Day, the date for payment thereof shall be extended to the next
succeeding Domestic Business Day. Whenever any payment of principal of, or
interest on, the Euro-Dollar Loans shall be due on a day which is not a
Euro-Dollar Business Day, the date for payment thereof shall be extended to
the next succeeding Euro-Dollar Business Day unless such Euro-Dollar Business Day falls
in another calendar month, in which case the date for payment thereof shall be the next
preceding Euro-Dollar Business Day. If the date for any payment of principal is extended
by operation of law or otherwise, interest thereon shall be payable for such extended
time.  

 23

	

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

     SECTION
2.14. Funding Losses. If the Borrower makes any payment of principal with
respect to any Euro-Dollar Loan or any Euro-Dollar Loan is converted (pursuant
to Article 2 or 8 or Section 10.02) on any day other than the last day of an
Interest Period applicable thereto, or the last day of an applicable period
fixed pursuant to Section 2.07(c), or if the Borrower fails to borrow, prepay,
convert or continue any Euro-Dollar Loans after notice has been given to any
Bank in accordance with Section 2.04(a), 2.10(c), 2.11(b), or 2.12(c), by reason
of a failure to satisfy a condition thereto or otherwise, the Borrower shall
reimburse each Bank within 15 days after demand for any resulting loss or
expense incurred by it (or by an existing or prospective Participant in the
related Loan), including (without limitation) any loss incurred in obtaining,
liquidating or employing deposits from third parties, but excluding loss of
margin for the period after such payment or conversion or failure to borrow,
prepay, convert or continue; provided that such Bank shall have delivered
to the Borrower a certificate as to the amount of such loss or expense, which
certificate shall be conclusive in the absence of manifest error. 

     SECTION
2.15. Computation of Interest and Fees. Interest based on the Prime Rate
hereunder shall be computed on the basis of a year of 365 days (or 366 days in a
leap year) and paid for the actual number of days elapsed (including the first
day but excluding the last day). All other interest and fees shall be computed
on the basis of a year of 360 days and paid for the actual number of days
elapsed (including the first day but excluding the last day). 

 24

	

     SECTION
2.16. Regulation D Compensation. Each Bank may require the Borrower to
pay, contemporaneously with each payment of interest on the Euro-Dollar Loans,
additional interest on the related Euro-Dollar Loan of such Bank at a rate per
annum determined by such Bank up to but not exceeding the excess of (i (A) the
applicable London Interbank Offered Rate divided by (B) one minus the
Euro-Dollar Reserve Percentage over (ii) the applicable London Interbank Offered
Rate. Any Bank wishing to require payment of such additional interest (x) shall
so notify the Borrower and the Administrative Agent, in which case such
additional interest on the Euro-Dollar Loans of such Bank shall be payable to
such Bank at the place indicated in such notice with respect to each Interest
Period commencing at least three Euro-Dollar Business Days after such Bank gives
such notice and (y) shall notify the Borrower at least five Euro-Dollar Business
Days before each date on which interest is payable on the Euro-Dollar Loans of
the amount then due it under this Section. 

     SECTION
2.17. Fees and Other Terms. The Borrower will pay the fees under, and
will comply with, and be bound by, its agreements and obligations contained in
the Fee Letter, as if fully set forth herein. 

ARTICLE 3

CONDITIONS 

     SECTION
3.1. Closing. The obligation of any Bank to make a Loan hereunder shall
not become effective until the date on which each of the following conditions is
satisfied (or waived in accordance with Section 11.05): 

     (a)
receipt by the Administrative Agent of a duly executed Note for the account of
each Bank dated the Closing Date and complying with the provisions of Section
2.05. 

     (b)
receipt by the Administrative Agent of an opinion of the Managing Attorney of
the Borrower, substantially in the form of Exhibit B hereto and covering such
additional matters relating to the transactions contemplated hereby as the
Required Banks may reasonably request. 

     (c)
receipt by the Administrative Agent of an opinion of Vinson & Elkins L.L.P., special
counsel for the Administrative Agent, substantially in the form of Exhibit C hereto and
covering such additional matters relating to the transactions contemplated hereby as the
Required Banks may reasonably request. 

     (d)
receipt by the Administrative Agent of a properly completed and duly executed
Form U-1 with respect to the Loans and this Agreement. 

25 

	

     (e)
receipt by the Administrative Agent of all documents the Administrative Agent
may reasonably request relating to the existence of the Borrower, the corporate
authority for and the validity of this Agreement and the Notes, and any other
matters relevant hereto, all in form and substance satisfactory to the
Administrative Agent. 

     (f)
receipt by the Administrative Agent, for its own account or for the account of the Banks,
as the case may be, all fees, costs and expenses due and payable pursuant to the Fee
Letter and Section 11.03. 

     The
obligations of the Banks to make Loans hereunder shall not become effective
unless each of the foregoing conditions is satisfied (or waived pursuant to
Section 11.05) at or prior to 5:00 p.m., New York City time, on May 31, 2001
(and, in the event such conditions are not so satisfied or waived, the
Commitments shall terminate at such time). 

     SECTION
3.2. Each Credit Event. The obligation of each Bank to make, convert or continue a Loan
on the occasion of any Borrowing is subject to the satisfaction of the following
conditions: 

     (a)
receipt by the Administrative Agent of a Notice of Borrowing as required by Section 2.03. 

     (b)
the fact that, immediately after such Borrowing, the aggregate outstanding
principal amount of the Loans will not exceed the aggregate amount of the
Commitments; 

     (c)
the fact that, immediately before and after such Borrowing, no Default shall have
occurred and be continuing; 

     (d)
the fact that the representations and warranties of the Borrower contained in
this Agreement shall be true on and as of the date of such Borrowing. 

     Each
Borrowing shall be deemed to be a representation and warranty by the Borrower on
the date of such Borrowing as to the facts specified in clauses (b), (c) and (d)
of this Section. 

ARTICLE 4

  REPRESENTATIONS AND WARRANTIES 

     In
order to induce the Agents and the Banks to enter into this Agreement and to
make the Loans the Borrower makes the following representations and warranties: 

     SECTION
4.1. Existence and Business; Power and Authorization; Enforceable
Obligations. (a The Borrower is a corporation duly organized in accordance with the
Laws of the State of Delaware. The Borrower (i) has the corporate power and authority to own its property and assets and to
transact the business in which it is engaged or presently proposes to engage and (ii) is
authorized to do business as a corporation and is in good standing in each jurisdiction
in which it is required to be authorized to do business, except where the failure to be
so authorized or in good standing could not reasonably be expected to have a Material
Adverse Effect. No Governmental Approval (other than those already obtained) is necessary
in connection with the formation and continued existence of the Borrower, except where
the failure to obtain such Governmental Approval could not reasonably be expected to have
a Material Adverse Effect.  

 26

	

     (b)
The Borrower has the corporate power and authority to execute, deliver, and
perform its obligations under this Agreement and the other Loan Documents. The
Borrower has corporate power and authority to borrow hereunder. 

     (c)
The Borrower has taken all necessary corporate action to authorize the
execution, delivery and performance of the Loan Documents. No consent or
authorization of, filing with or other act by or in respect of any Governmental
Authority or other Person is required in connection with the execution, delivery
and performance by the Borrower of the Loan Documents or the validity and
enforceability of the Loan Documents. 

     (d)
This Agreement and each other Loan Document has been duly executed and delivered
on behalf of the Borrower and is a legal, valid and binding obligation of the
Borrower enforceable in accordance with its terms except as the enforcement
thereof may be limited by applicable bankruptcy, insolvency or similar Laws
affecting the enforcement of rights of creditors generally and except to the
extent that enforcement of rights and remedies set forth therein may be limited
by equitable principles (regardless of whether enforcement is considered in a
court of law or a proceeding in equity). 

     SECTION
4.2. No Violation. Neither the execution, delivery and performance by the
Borrower of the Loan Documents, nor compliance by it with the terms and
provisions thereof nor the consummation of the transactions contemplated
thereby, (i) will contravene in any material respect any applicable provision of
Law, (ii will conflict with or result in any breach of any of the terms and
conditions of, or result in the creation or imposition of (or the obligation to
create or impose) any Lien upon any of the property or assets of the Borrower
pursuant to the terms of, any material agreement or instrument to which the
Borrower is a party or by which it or any of its property or assets is bound, or
(iii) will violate any provision of the certificate of incorporation or by-laws
or other organizational documents of the Borrower. 

 27

	

     SECTION
4.3. Litigation. There are no actions, suits, investigations or
proceedings by or before any Governmental Authority or arbitrator pending or, to
the best knowledge of the Borrower,
threatened which could reasonably be expected to have a Material Adverse Effect or
seeking to enjoin or challenge the purchase by the Borrower of its common stock described
in Section 6.04.  

     SECTION
4.4. Financial Information. (a) The consolidated balance sheet of the
Borrower and its Consolidated Subsidiaries as of December 31, 1999, and the
related consolidated statements of income and cash flows for the fiscal year
then ended, reported on by Arthur Andersen LLP and set forth in the
Borrower’s 1999 Form 10-K, a copy of which has been delivered to each of
the Banks, fairly present, in conformity with GAAP the consolidated financial
position of the Borrower and its Consolidated Subsidiaries as of such date and
their consolidated results of operations and cash flows for such fiscal year. 

     (b)
The unaudited consolidated balance sheet of the Borrower and its Consolidated
Subsidiaries as of September 30, 2000 and the related unaudited consolidated
statements of income and cash flows for the three months then ended, set forth
in the Borrower’s September 2000 Form 10-Q, a copy of which has been
delivered to each of the Banks, fairly present, in conformity with GAAP or SEC
regulation, the consolidated financial position of the Borrower as of such date
and its consolidated results of operations and cash flows for such three month
period (subject to year-end adjustments). 

     SECTION
4.5. Material Adverse Change. Since December 31, 1999, there has occurred
no event, act or condition which has had, or could reasonably be expected to
have, a Material Adverse Effect. 

     SECTION
4.6. Use of Proceeds; Margin Regulations. Following application of the
proceeds of each Loan, not more than 25 percent of the value of the assets which
are subject to any arrangement with the Administrative Agent or any Bank (herein
or otherwise) whereby the Borrower’s right or ability to sell, pledge or
otherwise dispose of assets in any way is restricted (or pursuant to which the
exercise of any such right is or may be cause for accelerating the maturity of
all or any portion of the Loans or any other amount payable hereunder or under
any such other arrangement) will be Margin Stock. No proceeds of any Loan have
been used in violation of Section 6.04. 

     SECTION
4.7. Governmental Approvals. All Governmental Approvals which under
applicable Law are required to have been obtained prior to the date this
representation is made or deemed made in connection with the due execution,
delivery and performance by the Borrower of the Loan Documents to which it is a
party have been obtained. 

     SECTION
4.8. Investment Company Act; Public Utility Holding Company Act. The
Borrower is not (i) an “investment company” or a company
“controlled” by an “investment company,” within the meaning
of the Investment Company Act of 1940, as amended, or (ii) a “holding
company”or a company controlled by a “holding company”within the meaning
of PUHCA.  

28 

	

     SECTION
4.9. No Default. No Default has occurred and is continuing. 

     SECTION
4.10. U.S. Taxes. The Borrower and each of its Subsidiaries have filed all United States
Federal income tax returns and all other material United States tax returns which to
their knowledge are required to be filed by them and have paid all taxes due pursuant to
such returns or pursuant to any assessment received by them, except as are being
contested in good faith or which could not reasonably be expected to have a Material
Adverse Effect. 

     SECTION
4.11. Foreign Taxes. The Borrower and each of its Subsidiaries have filed
or caused to be filed all income tax returns in all relevant foreign
jurisdictions and all other material foreign tax returns which are to their
knowledge required to be filed by them and have paid all taxes due pursuant to
such returns or pursuant to any assessment received by the Borrower or any of
its Subsidiaries, except as are being contested in good faith or which could not
reasonably be expected to have a Material Adverse Effect. 

     SECTION
4.12. ERISA. As of the Closing Date, the Borrower is responsible for
funding no Plans other than those listed on the Schedule having the same number
as this Section. No accumulated funding deficiency (as defined in Section 412 of
the Code or Section 302 of ERISA) or Reportable Event has occurred with respect
to any Plan which could reasonably be expected to have a Material Adverse
Effect. There are no Unfunded Liabilities under any Plan which when added to the
aggregate amount of Unfunded Liabilities with respect to all other Plans at such
time could reasonably be expected to have a Material Adverse Effect. The
Borrower and each member of the ERISA Controlled Group have not failed to comply
with the requirements of Section 515 of ERISA with respect to any Multiemployer
Plan and are not in “default” (as defined in Section 4219(c)(5) of
ERISA) with respect to payments to a Multiemployer Plan to an extent which could
reasonably be expected to have a Material Adverse Effect. The aggregate
potential total withdrawal liability payments of the Borrower and the members of
the ERISA Controlled Group as determined in accordance with Title IV of ERISA as
if the Borrower and the members of the ERISA Controlled Group had completely
withdrawn from all Multiemployer Plans is not equal to or greater than an amount
which could reasonably be expected to have a Material Adverse Effect. To the
knowledge of the Borrower and each member of the ERISA Controlled Group, no
Multiemployer Plan is or is likely to be in reorganization (as defined in
Section 4241 or ERISA or Section 418 of the Code) or is insolvent (as defined in
Section 4245 of ERISA). No liability to the PBGC (other than required premium
payments), the Internal Revenue Service, any Plan or any trust established under
Title IV of ERISA has been, or is expected by the Borrower or any member of the
ERISA Controlled Group to be, incurred by the Borrower or any member of the
ERISA Controlled Group which could reasonably be
expected to have a Material Adverse
Effect. No Lien under Section 412(n) of the Code or 302(f) of ERISA or requirement to
provide security under Section 401(a)(29) of the Code or Section 307 of ERISA has been or
is reasonably expected by the Borrower or any member of the ERISA Controlled Group to be
imposed on the assets of the Borrower or any member of the ERISA Controlled Group. With
respect to any employee benefit plan covered under Title IV of ERISA that is excluded
from the definition of Plan by the proviso at the end of such definition, no liability,
penalty, Lien or security interest has been incurred or is expected to be incurred which
could reasonably be expected to have a Material Adverse Effect, and to the Borrower’s
knowledge no other event or condition has occurred or exists which could reasonably be
expected to have a Material Adverse Effect.  

 29

	

     SECTION
4.13. Ownership of Property; Liens. The Borrower and each of its
Consolidated Subsidiaries has good and marketable title to all of its property
except for any defects which could not reasonably be expected to have a Material
Adverse Effect, subject to no Lien of any kind except Liens permitted pursuant
to Section 6.03 hereof. 

     SECTION
4.14. Accuracy and Completeness of Information. All historical
information heretofore or contemporaneously furnished by the Borrower in writing
to any Agent or Bank for purposes of or in connection with this Agreement is, to
the knowledge of the Borrower, true and accurate in all material respects on the
date as of which such information is dated and not incomplete by omitting to
state any material fact necessary to make such information (taken as a whole)
not misleading at such time. 

     SECTION
4.15. Environmental Matters. (a) Except in each case as could not
reasonably be expected to have a Material Adverse Effect (i) the Borrower and
its Significant Subsidiaries are in compliance with all applicable Environmental
Laws, (ii the Borrower and its Significant Subsidiaries have all Environmental
Approvals required to operate its business as presently conducted and is in
compliance with the terms and conditions thereof, (iii) the Borrower and its
Significant Subsidiaries have not received any communication (written or oral)
from a Governmental Authority that alleges that the Borrower is not in
compliance with all Environmental Laws and Environmental Approvals and (iv) to
the Borrower’s knowledge there are no circumstances that may prevent or
interfere with such compliance in the future. 

     (b)
There is no Environmental Claim pending or, to the Borrower’s knowledge,
threatened against the Borrower or any Significant Subsidiary which could
reasonably be expected to have a Material Adverse Effect. 

     (c)
Without in any way limiting the generality of the foregoing, except in each case
as could not reasonably be expected to have a Material Adverse Effect (i) there
are no on-site or off-site locations in which the Borrower or any Significant
Subsidiary have stored, disposed or arranged for the disposal of Materials of
Environmental Concern in violation
of any Environmental Law (ii) there are no underground storage tanks located on property
owned or leased by the Borrower or any Significant Subsidiary in violation of any
Environmental Law, (iii) there is no asbestos contained in or forming part of any
building, building component, structure or office space owned or leased by the Borrower
or any Significant Subsidiary and (iv no polychlorinated biphenyls (PCBs) are used or
stored at any property or leased by the Borrower or any Significant Subsidiary in
violation of any Environmental Law.

 30

	

     SECTION
4.16. Significant Subsidiaries. Each of the Borrower’s Significant
Subsidiaries is a corporation, partnership, limited liability company,
association or other entity duly organized, validly existing and in good
standing under the laws of its jurisdiction of organization, and has all powers
and all material government licenses, authorizations, consents and approvals
required to carry on its business as now conducted except for such powers,
licenses, authorizations, consents or approvals the absence of which could not
reasonably be expected to have a Material Adverse Effect. 

     SECTION
4.17. Solvency. The Borrower is, and after giving effect to the
incurrence of all Indebtedness and obligations being incurred in connection
herewith and to the use of proceeds of the Loans as provided in Section 6.04,
will be and will continue to be, Solvent. 

ARTICLE 5

AFFIRMATIVE
COVENANTS 

     The
Borrower covenants and agrees that, so long as any Bank has any Commitment
hereunder or any Obligation remains unpaid unless otherwise agreed by the
Required Banks: 

     SECTION
5.1. Information Covenants. The Borrower will furnish to each Bank: 

     (a)
Quarterly Financial Statements. Within 60 days after the close of each
fiscal quarter (other than the fourth fiscal quarter) in each fiscal year of the
Borrower, the unaudited consolidated balance sheet of the Borrower as at the end
of such quarterly period and the related consolidated statements of income and
cash flows for such quarterly period and for the elapsed portion of the fiscal
year ended with the last day of such quarterly period, and in each case setting
forth comparative figures for the related periods in the prior fiscal year; 

     (b)
Annual Financial Statements. Within 120 days after the close of each
fiscal year of the Borrower, the audited consolidated balance sheet of the
Borrower as at the end of such fiscal year and the related consolidated
statements of income and cash flows for such fiscal year,
setting forth in each case in comparative form the figures for the previous fiscal year,
all reported on in a manner acceptable to the SEC by independent public accountants of
nationally recognized standing;  

 31

	

     (c)
Officer’s Certificate. At the time of the delivery of the financial
statements referred to in clauses (a) and (b) above, a certificate of an
Authorized Officer of the Borrower which certifies (x) that such financial
statements fairly present the financial condition and the results of operations
of the Borrower on the dates and for the period indicated, except as disclosed
in the notes thereto, in accordance with GAAP, subject, in the case of interim
financial statements, to normally recurring year-end adjustments, (y) the
detailed calculations made pursuant to Sections 6.06 and 6.07 as of the last day
of such period and (z) that such Authorized Officer has reviewed the terms of
the Loan Documents and has made, or caused to be made under his or her
supervision, a review in reasonable detail of the business and financial
condition of the Borrower during the accounting period covered by such financial
statements, and that as a result of such review such Authorized Officer has
concluded that no Default has occurred and is continuing as of the date of such
certificate or, if any Default has occurred and is continuing, specifying the
nature and extent thereof and the action the Borrower proposes to take in
respect thereof; 

     (d)
Notice of Default, Litigation or Other Event. Promptly and in any event
within three Domestic Business Days after the Borrower obtains knowledge
thereof, notice of (i) the occurrence of any Event of Default and (ii) any
litigation or governmental proceeding pending or threatened against the Borrower
or any Significant Subsidiary which could reasonably be expected to have a
Material Adverse Effect; 

     (e)
ERISA. 

	 	
     (i)
Except as could not reasonably be expected to have a Material Adverse Effect, as soon as
possible and in any event within twenty days after the Borrower or any member of its
ERISA Controlled Group knows, or has reason to know, that:

	 	     (A)
any Termination Event with respect to a Plan has occurred or will occur, or

	 	     (B)
any condition exists with respect to a Plan which presents a material risk of termination
of the Plan (if such Plan has Unfunded Liabilities) or imposition of an excise tax or
other material liability on the Borrower or any member of the ERISA Controlled Group, or

	

32 

	

	 	    (C)
the Borrower or any member of the ERISA Controlled Group has applied for a waiver of the
minimum funding standard under Section 412 of the Code or Section 302 of ERISA or an
accumulated funding deficiency has been incurred, or

	 	     (D)
the Borrower or any member of the ERISA Controlled Group has engaged in a "prohibited
transaction," as defined in Section 4975 of the Code or as described in Section 406 of
ERISA, that is not exempt under Section 4975 of the Code and Section 408 of ERISA, or

	 	     (E)
there exists any Unfunded Liabilities under any Plan giving rise to a Lien under ERISA or
the Code, or

	 	     (F)
any condition exists with respect to a Multiemployer Plan which presents a material risk
of a partial or complete withdrawal (as described in Section 4203 or 4205 of ERISA) by
the Borrower or any member of the ERISA Controlled Group from a Multiemployer Plan, or

	 	     (G)
the Borrower or any member of the ERISA Controlled Group is in "default" (as defined in
Section 4219(c)(5) of ERISA) with respect to payments to a Multiemployer Plan, or

	 	    (H)
a Multiemployer Plan is in "reorganization" (as defined in Section 418 of the Code or
Section 4241 of ERISA) or is "insolvent" (as defined in Section 4245 of ERISA), or

	 	     (I)
the Borrower and/or any member of the ERISA Controlled Group have incurred any withdrawal
liability (as determined in accordance with Title IV of ERISA), or

	 	     (J)
there is an action brought against the Borrower or any member of the ERISA Controlled
Group under Section 502 of ERISA with respect to its failure to comply with Section 515
of ERISA, certificate of an Authorized Officer of the Borrower setting forth the details
of each of the events described in clauses (A) through (J) above, as applicable, and the
action which the Borrower or the applicable member of the ERISA Controlled Group proposes
to take with respect thereto, together with a copy of any notice or filing from the PBGC
or which may be required by the PBGC or other agency of the United States government with
respect to each of the events described in clauses (A) through (J) above, as applicable.

	

33 

	

	 	
     (ii)
As soon as possible and in any event within ten days after the receipt by the Borrower or
any member of its ERISA Controlled Group of a demand letter from the PBGC notifying the
Borrower or such member of the ERISA Controlled Group of its final decision finding
liability which, if remaining unpaid, could reasonably be expected to have a Material
Adverse Effect and the date by which such liability must be paid, a copy of such letter,
together with a certificate an Authorized Officer of the Borrower setting forth the
action which the Borrower or such member of the ERISA Controlled Group proposes to take
with respect thereto.

	 	
     (iii)
With respect to any employee benefit plan covered by Title IV of ERISA that is excluded
from the definition of Plan by the proviso at the end of such definition, as soon as
possible and in any event within ten days after the receipt by the Borrower or any member
of the ERISA Controlled Group of any notice, whether or not in writing, that any material
liability, penalty or Lien has been or could reasonably be expected to be asserted
against it with respect to such plan, a certificate of an Authorized Officer of the
Borrower setting forth the relevant details and the action which the Borrower or the
applicable member of its ERISA Controlled Group proposes to take with respect thereto,
together with a copy of such notice, if any.

	

     (f)
Environmental Matters. Promptly and in any event within ten Domestic
Business Days after the existence of any of the following conditions, a
certificate of an Authorized Officer of the Borrower specifying in detail the
nature of such condition and the Borrower’s proposed response thereto, in
each case if the occurrence of such event could reasonably be expected to have a
Material Adverse Effect: (i) the receipt by the Borrower of any communication
(written or oral), whether from a Governmental Authority or other Person that
alleges that the Borrower or any Significant Subsidiary is not in compliance
with applicable Environmental Laws or Environmental Approvals, (ii) any
Authorized Officer of the Borrower shall obtain actual knowledge that there
exists any Environmental Claim pending or threatened against the Borrower or any
Significant Subsidiary, or (iii) any release, emission, discharge or disposal of
any Material of Environmental Concern that could reasonably be expected to form
the basis of any Environmental Claim against the Borrower or any Significant
Subsidiary. The Borrower will also maintain and make available for inspection by
the Administrative Agent and the Banks and their agents and employees accurate
and complete records of all investigations, studies, sampling and testing
conducted, and any and all remedial actions taken, by the Borrower or, to its
knowledge and to the extent obtained by the Borrower, by any Governmental
Authority or other Person in respect of Materials of Environmental Concern on or
affecting the properties of the Borrower and its Subsidiaries. 

 34

	

     (g)
Other Information. From time to time, such other information or documents (financial or
otherwise) as the Administrative Agent or any Bank may reasonably request. 

     SECTION
5.2. Books, Records and Inspections. The Borrower will keep proper books
of record and account in which full, true and correct entries in conformity with
GAAP and all requirements of Law shall be made of all dealings and transactions
in relation to its business and activities. The Borrower will permit officers
and designated representatives of the Administrative Agent or any Bank to visit
and inspect any of the properties of the Borrower, and to examine the books of
record and account of the Borrower, and discuss the affairs, finances and
accounts of the Borrower with, and be advised as to the same by, its and their
officers and independent accountants, all upon reasonable notice and at such
reasonable times and intervals as the Administrative Agent or such Bank may
desire. 

     SECTION
5.3. Payment of Taxes. The Borrower will, and will cause its Subsidiaries
to, pay and discharge all material taxes, assessments and governmental charges
or levies imposed on it or on its income or profits or on any of its property
prior to the date on which penalties attach hereto, except that neither the
Borrower nor any such Subsidiary will be required hereby to pay any such tax,
assessment, charge or levy the payment of which is the subject of a Contest. 

     SECTION
5.4. Compliance with Law. (a) The Borrower will own, operate and maintain
its business in compliance with all Laws, except such noncompliance as could
not, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect. 

     (b)
The Borrower will keep each of its property and assets free of any Lien imposed pursuant
to Environmental Laws which could reasonably be expected to have a Material Adverse
Effect and is not the subject of a Contest, and will pay or cause to be paid when due any
and all costs necessary to accomplish the foregoing, including, without limitation, the
cost of identifying the nature and extent of the presence of any such Materials of
Environmental Concern on any real property owned or leased by the Borrower, and the cost
of delineation, removal, treatment and disposal of any such Materials of Environmental
Concern. 

     SECTION
5.5. Existence, Etc. The Borrower will preserve and maintain its
corporate existence, and all material rights and material franchises, and cause
each of its Subsidiaries to preserve and maintain its material rights and
material franchises except as permitted under Section 6.01; provided that
neither the Borrower not any of its Subsidiaries shall be required to maintain
any such rights or franchises, the maintenance of which is determined by it in
good faith not to be in its best interest in the conduct of business. 

35 

	

     SECTION
5.6. Insurance. The Borrower will maintain or cause to be maintained with
financially sound and reputable insurers, insurance with respect to its
properties and business, and the properties and business of its Subsidiaries,
against loss or damages of the kinds customarily insured against by reputable
companies in the same or similar businesses, such insurance to be of such types
and in such amounts (with such deductible amounts or other forms of
self-insurance) as is customary for such companies under similar circumstances. 

     SECTION
5.7. Maintenance of Property. The Borrower will keep, and cause each of
its Subsidiaries to keep, all property necessary to their respective businesses
in good working order and condition (ordinary wear and tear excepted);
provided that neither the Borrower nor any of its Subsidiaries shall be
required to maintain any property, the maintenance of which is determined by it
in good faith not to be in its best interest in the conduct of business. 

     SECTION
5.8. Ownership of Subsidiaries. The Borrower will own, directly or indirectly, 100% of
the outstanding voting securities of each of its Significant Subsidiaries.

ARTICLE 6

NEGATIVE
COVENANTS 

     The
Borrower covenants and agrees that, so long as any Bank has any Commitment
hereunder or any Obligation remains unpaid, unless otherwise agreed by the
Required Banks: 

     SECTION
6.1. Restriction on Fundamental Changes. (a) The Borrower will not enter
into any merger or consolidation, liquidate, wind-up or dissolve (or suffer any
liquidation or dissolution), discontinue substantially all of its business or
convey, lease, sell, transfer or otherwise dispose of, in one transaction or
series of transactions, all or substantially all of its business or property;
provided that the Borrower may effect such a merger, consolidation or
sale (a “Permitted Transaction”) so long as after giving effect to
such transaction, (x) no Default shall exist, (y) the surviving entity or
purchaser, if other than the Borrower, assumes, pursuant to the terms of such
transaction, each of the obligations of the Borrower under the Loan Documents
and (z) such assumption is expressly evidenced by an agreement executed and
delivered to the Banks within 30 days of such transaction in a form reasonably
satisfactory to the Administrative Agent. Without limiting the generality of the
foregoing, the transfer of more than 50% of the Borrower’s Consolidated Net
Tangible Assets shall be deemed, for the purposes of this Section 6.01(a), a
transfer of all or substantially all of the assets of the Borrower. 

 36

	

     (b) No
transaction permitted by this Section 6.01 shall result in a discharge or novation of the
Borrower under the Loan Documents. The Administrative Agent may require as a condition to
any transaction permitted by this Section 6.01 evidence (including legal opinions)
reasonably satisfactory to the Administrative Agent establishing satisfaction of the
conditions set forth in this Section 6.01. 

     SECTION
6.2. Transactions with Affiliates. Neither the Borrower nor any
Subsidiary will enter into any transaction or series of related transactions,
whether or not in the ordinary course of business, with any Affiliate (other
than in any such Affiliate’s capacity as a director or executive officer of
the Borrower) on terms that are less favorable to the Borrower than those terms
that might be obtained in a comparable arms-length transaction at the time from
a Person who is not an Affiliate, in each case excluding transactions among the
Borrower and its Subsidiaries. 

     SECTION
6.3. Liens. Neither the Borrower nor any Subsidiary will create, incur,
assume or suffer to exist, directly or indirectly, any Lien on any of its assets
now owned or hereinafter acquired, other than the following: 

	 	
     (i)
Liens existing on the date hereof which are not otherwise permitted under paragraphs (ii)
through (xi) below and which Liens secure Indebtedness outstanding on the date hereof in
an aggregate principal amount not exceeding $10,000,000;

	 	
     (ii)
Liens for taxes not yet due or which are subject to a Contest;

	 	
     (iii)
Statutory Liens of landlords and Liens of carriers, warehousemen, mechanics, materialmen,
and other similar Liens and any other Liens imposed by Law (other than any Lien imposed
by ERISA or pursuant to any Environmental Law) created in the ordinary course of business
for amounts not yet due or which are subject to a Contest;

	 	
     (iv)
Liens (other than any Lien imposed by ERISA or pursuant to any Environmental Law)
incurred or deposits made in the ordinary course of business in connection with workers'
compensation, unemployment insurance and other types of social security, or to secure the
performance of tenders, statutory obligations, surety and appeal bonds, bids, leases,
government contracts, performance and return-of-money bonds, and other similar
obligations (exclusive of obligations for the payment of borrowed money);

	 	
     (v)
Easements, rights-of-way, zoning, and similar restrictions and other similar charges or
encumbrances that do not materially interfere with the conduct of the business of the
Borrower or any of its Subsidiaries and which do not detract materially from the value of
the property to which they
attach or impair materially the use
thereof by the Borrower or any of its Subsidiaries or have a Material Adverse Effect; 

	

37 

	

	 	
     (vi)
purchase money Liens not to exceed 100% of the applicable purchase price; provided that
such Lien shall attach within 180 days of the acquisition of the related asset and in no
event shall such Lien attach to current assets of the Borrower or any of its Significant
Subsidiaries;

	 	
     (vii)
any Lien existing on any asset prior to the acquisition thereof by the Borrower or any of
its Subsidiaries, whether by purchase, consolidation, merger, exchange or otherwise and
not created in contemplation of such acquisition; provided that in no event shall such
Lien attach to current assets of the Borrower or any of its Significant Subsidiaries;

	 	
     (viii)
Liens securing Environmental Claims (which, for the purposes of this paragraph (viii)
shall be limited to undetermined or inchoate Liens arising pursuant to applicable
Environmental Laws, arising in the ordinary course of business of the Borrower, and in
respect of which no steps or proceedings have been taken to enforce such Lien);

	 	
     (ix)
Liens imposed by ERISA which could not reasonably be expected to have a Material Adverse
Effect;

	 	
     (x)
Liens on time deposit, demand, custodial or other banking accounts of the Borrower or any
Subsidiary, if such accounts exist for the purpose of funding or securing insurance
obligations of any Subsidiary engaged in the business of providing commercial insurance
or reinsurance and which are in accordance with prudent business practices and industry
standards;

	 	
     (xi)
Liens on commingled stored crude oil and product inventory existing to secure obligations
of parties with which the Borrower or its Subsidiaries have entered into crude oil
processing and crude oil and product storage agreements;

	 	
     (xii) extensions, renewals and replacements of Liens referred to in paragraphs (i) through (x);
provided, that any such extension, renewal or replacement Lien shall be limited to the
property or assets covered by the Lien extended, renewed or replaced and that the
obligations secured by any such extension, renewal or replacement Lien shall be in an
amount not greater than the amount of the obligations secured by the Lien extended,
renewed or replaced; and

	 	
     (xiii)
Liens other than those described in paragraphs (i) through (xii) above; provided that the
aggregate outstanding principal amount of
Indebtedness secured by such Liens
shall at no time exceed 10% of Consolidated Net Worth. 

	

38 

	

     SECTION
6.4. Use of Proceeds; Margin Regulations. The proceeds of the Loans will
be used by the Borrower to (a) purchase the Borrower’s common stock, $.01
par value per share, to make settlements with respect to the purchase of such
common stock pursuant to agreements entered into by the Borrower with other
Persons, and to pay fees and expenses in connection therewith, or (b) to repay
other Indebtedness of the Borrower the proceeds of which were used for the
purposes described in clause (a) of this Section. The Borrower shall not use the
proceeds of any Loan in a manner that will violate or be inconsistent with the
provisions of any law or regulation, including without limitation, Regulations
T, U or X. 

     SECTION
6.5. Environmental Matters. Except in each case where such activity could
not reasonably be expected to have a Material Adverse Effect, the Borrower shall
not permit (a) any underground storage tanks to be located on any property owned
or leased by the Borrower in violation of any Environmental Law, (b) any
asbestos to be contained in or form part of any building, building component,
structure or office space owned or leased by the Borrower, and (c) any
polychlorinated biphenyls (PCB’s) to be used or stored at any property
owned or leased by the Borrower. 

     SECTION
6.6. Leverage Ratio. Adjusted Consolidated Debt will at no time exceed 60% of the sum of
Adjusted Consolidated Debt and Consolidated Net Worth. 

     SECTION
6.7. Interest Coverage Ratio. The ratio (the “Interest Coverage
Ratio”) of (x) Consolidated EBITDA to (y) Consolidated Cash Interest
Expense will not, for any period of four consecutive Fiscal Quarters, be less
than 2.5:1.0. 

ARTICLE 7

NOTICE OF
AMENDMENTS AND WAIVERS 

     SECTION
7.1. Solicitation of Banks. The Borrower will not solicit, request or
negotiate for or with respect to any proposed amendment, modification or waiver
of any affirmative or negative covenant or event of default contained in any
Existing Committed Facility (including by way of replacement thereof) unless the
Banks shall be informed thereof by the Borrower and the Borrower will solicit,
request or negotiate (but no Bank shall be under any obligation to accept) the
benefit of the same by way of an amendment, modification or waiver to this
Agreement in accordance with Section 11.05, and the Banks shall be supplied by
the Borrower with sufficient information to enable the Banks to make an informed
decision with respect thereto. The Borrower will not, directly or indirectly,
pay or cause to be paid any remuneration, whether by way of supplemental or
additional interest, fee or
otherwise, to any holder of
Indebtedness under any Existing Committed Facility as consideration for or as an
inducement to the entering into by such amendment, modification or waiver unless such
remuneration is paid on a comparable basis to the Banks for a comparable amendment,
modification or waiver to the terms hereof.  

 39

	

ARTICLE 8

EVENTS OF
DEFAULT; REMEDIES 

     SECTION
8.1. Events of Default. Each of the following events, acts, occurrences
or conditions shall constitute an Event of Default under this Agreement,
regardless of whether such event, act, occurrence or condition is voluntary or
involuntary or results from the operation of Law or pursuant to or as a result
of compliance by any Person with any judgment, decree, order, rule or regulation
of any Governmental Authority: 

     (a)
Failure to Make Payments. The Borrower shall (i) default in the payment
when due of any principal on the Loans or (ii) default in the payment when due
of any interest or fees hereunder for a period of five Domestic Business Days
after such interest or fees are due and payable. 

     (b)
Breach of Representation or Warranty. Any representation or warranty made in any Loan
Document or in any certificate or statement delivered pursuant thereto shall prove to be
false or misleading in any material respect on the date as of which made or deemed made. 

     (c)
Breach of Covenants. (i) The Borrower shall fail to perform or observe any covenant or
obligation arising under Section 6.01, 6.04, 6.06 or 6.07, or (ii) the Borrower shall
fail to perform or observe any other covenant or obligation arising under this Agreement
or under any other Loan Document and, in the case of this clause (ii), such failure shall
continue for a period of 30 days. 

     (d)
Default Under Other Agreements. The Borrower or any Significant Subsidiary shall default
in the payment when due (whether by scheduled maturity, required prepayment,
acceleration, demand or otherwise) of any amount owing in respect of principal or
interest (subject, in the case of interest, to any applicable grace period) in respect of
any Material Financial Obligation, including the Existing Revolver and the Reimbursement
Agreement; or the Borrower or any Significant Subsidiary shall default in the performance
or observance of any other obligation or condition with respect to any Material Financial
Obligation or any other event shall occur or condition exist, if, as a result, such
Material Financial Obligation has become or can then be declared to be due and payable
prior to its stated maturity other than as a result of a regularly scheduled payment.  

40 

	

     (e)
Bankruptcy, Etc. Any Event of Bankruptcy shall occur with respect to the Borrower or any
Significant Subsidiary.  

     (f)
Dissolution. Any order, judgment, or decree shall be entered against the
Borrower or any Significant Subsidiary decreeing its involuntary dissolution or
split up and such order shall remain undischarged and unstayed for a period in
excess of 30 days; or the Borrower shall otherwise dissolve or cease to exist
(except as permitted by Section 6.01). 

     (g)
ERISA. (i) Any Termination Event shall occur, or (ii) any Plan shall incur an
"accumulated funding deficiency" (as defined in Section 412 of the Code or Section 302 of
ERISA), whether or not waived or (iii) the Borrower or a member of its ERISA Controlled
Group shall have engaged in a transaction which is prohibited under Section 4975 of the
Code or Section 406 of ERISA which could result in the imposition of liability on the
Borrower or any member of its ERISA Controlled Group, or (iv) the Borrower or any member
of its ERISA Controlled Group shall fail to pay when due an amount which it shall have
become liable to pay to the PBGC, any Plan or a trust established under Title IV of
ERISA, or (v) a condition shall exist by reason of which the PBGC would be entitled to
obtain a decree adjudicating that an ERISA Plan must be terminated or have a trustee
appointed to administer any ERISA Plan, or (vi) the Borrower or a member of its ERISA
Controlled Group suffers a partial or complete withdrawal from a Multiemployer plan or is
in "default" (as defined in Section 4219(c)(5) of ERISA) with respect to payments to a
Multiemployer Plan, or (vii) a proceeding shall be instituted against the Borrower or any
member of its ERISA Controlled Group to enforce Section 515 of ERISA, or (viii) any other
event or condition shall occur or exist with respect to any Plan which could subject the
Borrower or any member of its ERISA Controlled Group to any tax, penalty or other
liability, and in each case in clauses (i) through (viii) of this Section 8.01(h), such
event or condition, together with all other such events or conditions, if any, could
reasonably be expected to result in a lien, security interest, liability or penalty which
in the aggregate could reasonably be expected to have a Material Adverse Effect. 

     (h)
Judgments. Any judgment or decree shall be entered by a court or courts of competent
jurisdiction against the Borrower or any Significant Subsidiary and such judgment or
decree (i) shall be in an amount greater than or equal to $25,000,000 and (ii) has not
been discharged, bonded, or vacated within thirty days from entry. 

     (i)
Change of Control. A Change of Control shall occur. 

     SECTION
8.2. Rights and Remedies. (a) Upon the occurrence of any Event of Default
described in Section 8.01(e), the Commitments shall automatically and
immediately terminate and the unpaid principal amount of and any and all accrued
interest on the Loans and any and
all accrued fees and other Obligations shall automatically become immediately due and
payable, with all additional interest from time to time accrued thereon and without
presentation, demand, or protest or other requirements of any kind (including, without
limitation, diligence, presentment, notice of intent to demand or accelerate and notice
of acceleration), all of which are hereby expressly waived by the Borrower, and the
obligation of each Bank to make any Loan hereunder shall thereupon terminate.  

41 

	

     (b)
Upon the occurrence and during the continuance of any Event of Default (other than an
Event of Default described in Section 8.01(e)), the Administrative Agent shall at the
request of the Required Banks, by notice to the Borrower (i) declare that the Commitments
are terminated, whereupon the Commitments and the obligation of each Bank to make any
Loan hereunder shall immediately terminate, and (ii) declare the unpaid principal amount
of and any and all accrued and unpaid fees and other Obligations to be, and the same
shall thereupon be, immediately due and payable with all additional interest from time to
time accrued thereon and without presentation, demand, or protest or other requirements
of any kind (including, without limitation, diligence, presentment, notice of intent to
demand or accelerate and notice of acceleration), all of which are hereby expressly
waived by the Borrower. 

ARTICLE 9

THE AGENTS 

     SECTION
9.1. Appointment and Authorization. Each Bank irrevocably appoints and
authorizes the Administrative Agent to take such action as agent on its behalf
and to exercise such powers under this Agreement and the Notes as are delegated
to the Administrative Agent by the terms hereof or thereof, together with all
such powers as are reasonably incidental thereto. 

     SECTION
9.2. Administrative Agent and Affiliates. The bank serving as
Administrative Agent hereunder shall have the same rights and powers under this
Agreement as any other Bank and may exercise or refrain from exercising the same
as though it were not the Administrative Agent, and such bank and its affiliates
may accept deposits from, lend money to, and generally engage in any kind of
business with the Borrower or any Subsidiary or affiliate of the Borrower as if
it were not the Administrative Agent. 

     SECTION
9.3. Action by Administrative Agent. The obligations of the
Administrative Agent hereunder are only those expressly set forth herein.
Without limiting the generality of the foregoing, the Administrative Agent shall
not be required to take any action with respect to any Default, except as
expressly provided in Article 8. 

 42

	

     SECTION
9.4. Consultation with Experts. The Administrative Agent may consult with
legal counsel (who may be counsel for the Borrower), independent public
accountants and other experts selected by it and shall not be liable for any
action taken or omitted to be taken by it in good faith in accordance with the
advice of such counsel, accountants or experts. 

     SECTION
9.5. Liability of Administrative Agent. Neither the Administrative Agent
nor any of its affiliates nor any of their respective directors, officers,
agents or employees shall be liable for any action taken or not taken by it in
connection herewith (i) with the consent or at the request of the Required Banks
(or such different number of Banks as any provision hereof expressly requires
for such consent or request) or (ii) in the absence of its own gross negligence
or willful misconduct. Neither the Administrative Agent nor any of its
affiliates nor any of their respective directors, officers, agents or employees
shall be responsible for or have any duty to ascertain, inquire into or verify
(A) any statement, warranty or representation made in connection with this
Agreement or any borrowing hereunder; (B) the performance or observance of any
of the covenants or agreements of the Borrower; (C) the satisfaction of any
condition specified in Article 3, except receipt of items required to be
delivered to the Administrative Agent; or (D) the validity, effectiveness or
genuineness of this Agreement, the Notes or any other instrument or writing
furnished in connection herewith. The Administrative Agent shall not incur any
liability by acting in reliance upon any notice, consent, certificate, statement
or other writing (which may be a bank wire, telex, facsimile or similar writing)
believed by it to be genuine or to be signed by the proper party or parties.
Without limiting the generality of the foregoing, the use of the term
“agent” in this Agreement with reference to the Administrative Agent
is not intended to connote any fiduciary or other implied (or express)
obligations arising under agency doctrine of any applicable Law. Instead, such
term is used merely as a matter of market custom and is intended to create or
reflect only an administrative relationship between independent contracting
parties. 

     SECTION
9.6. Indemnification. Each Bank shall, ratably in accordance with its
Commitment, indemnify the Administrative Agent, its affiliates and their
respective directors, officers, agents and employees (to the extent not
reimbursed by the Borrower) against any cost, expense (including counsel fees
and disbursements), claim, demand, action, loss or liability (except such as
result from such indemnitees’ gross negligence or willful misconduct) that
such indemnitees may suffer or incur in connection with this Agreement or any
action taken or omitted by such indemnitees hereunder. 

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

 43

	

     SECTION
9.8. Successor Administrative Agent. The Administrative Agent may resign
at any time by giving notice thereof to the Banks and the Borrower. Upon any
such resignation, the Required Banks shall have the right to appoint a successor
Administrative Agent. If no successor Administrative Agent shall have been so
appointed by the Required Banks, and shall have accepted such appointment,
within 30 days after the retiring Administrative Agent gives notice of
resignation, then the retiring Administrative Agent may, on behalf of the Banks,
appoint a successor Administrative Agent, which shall be a commercial bank
organized or licensed under the Laws of the United States or of any State
thereof and having a combined capital and surplus of at least $100,000,000. Upon
the acceptance of its appointment as Administrative Agent hereunder by a
successor Administrative Agent, such successor Administrative Agent shall
thereupon succeed to and become vested with all the rights and duties of the
retiring Administrative Agent, and the retiring Administrative Agent shall be
discharged from its duties and obligations hereunder. After any retiring
Administrative Agent resigns as Administrative Agent hereunder, the provisions
of this Article shall inure to its benefit as to actions taken or omitted to be
taken by it while it was Administrative Agent. 

     SECTION
9.9. Agents/Fees. The Borrower shall pay to each Agent for its own account fees in the
amounts and at the times previously agreed upon by the Borrower and such Agent. 

     SECTION
9.10. Other Agents. Nothing in this Agreement shall impose upon any Agent other than the
Administration Agent, in such capacity, any duty or responsibility whatsoever. 

ARTICLE 10

CHANGE IN
CIRCUMSTANCES 

     SECTION
10.1. Basis for Determining Interest Rate Inadequate or Unfair . If on or
before the first day of any Interest Period for any Euro-Dollar Loan: 

     (a)
the Administrative Agent is advised by the Reference Banks that deposits in dollars (in
the applicable amounts) are not being offered to the Reference Banks in the relevant
market for such Interest Period, or 

     (b) in
the case of Euro-Dollar Loans, Banks having 66-2/3% or more of the aggregate principal
amount of the affected Loans advise the Administrative Agent
that the London Interbank Offered
Rate, as determined by the Administrative Agent will not adequately and fairly reflect
the cost to such Banks of funding their Euro-Dollar Loans, as the case may be, for such
Interest Period, the Administrative Agent shall forthwith give notice thereof to the
Borrower and the Banks, whereupon until the Administrative Agent notifies the Borrower
that the circumstances giving rise to such suspension no longer exist, (i) the
obligations of the Banks to make Euro-Dollar Loans, or to continue or convert outstanding
Loans as or into Euro-Dollar Loans shall be suspended and (ii) each outstanding
Euro-Dollar Loan shall be converted into a Base Rate Loan on the last day of the then
current Interest Period applicable thereto. Unless the Borrower notifies the
Administrative Agent at least two Domestic Business Days before the date of any affected
Borrowing for which a Notice of Borrowing has previously been given that it elects not to
borrow on such date, such Borrowing shall instead be made as a Base Rate Borrowing.  

 44

	

     SECTION
10.2. Illegality. If, on or after the date hereof, the adoption of any
applicable Law, rule or regulation, or any change in any applicable Law, rule or
regulation, or any change in the interpretation or administration thereof by any
governmental authority, central bank or comparable agency charged with the
interpretation or administration thereof, or compliance by any Bank (or its
Euro-Dollar Lending Office) with any request or directive (whether or not having
the force of Law) of any such authority, central bank or comparable agency shall
make it unlawful or impossible for any Bank (or its Euro-Dollar Lending Office)
to make, maintain or fund its Euro-Dollar Loans and such Bank shall so notify
the Administrative Agent, the Administrative Agent shall forthwith give notice
thereof to the other Banks and the Borrower, whereupon until such Bank notifies
the Borrower and the Administrative Agent that the circumstances giving rise to
such suspension no longer exist, the obligation of such Bank to make Euro-Dollar
Loans, or to continue or convert outstanding Loans as or into Euro-Dollar Loans,
shall be suspended. Before giving any notice to the Administrative Agent
pursuant to this Section, such Bank shall designate a different Euro-Dollar
Lending Office if such designation will avoid the need for giving such notice
and will not, in the judgment of such Bank, be otherwise disadvantageous to such
Bank. If such notice is given, each Euro-Dollar Loan of such Bank then
outstanding shall be converted to a Base Rate Loan either (a) on the last day of
the then current Interest Period applicable to such Euro-Dollar Loan if such
Bank may lawfully continue to maintain and fund such Loan as a Euro-Dollar Loan
to such day or (b) immediately if such Bank shall determine that it may not
lawfully continue to maintain and fund such Loan as a Euro-Dollar Loan to such
day. 

     SECTION
10.3. Increased Cost and Reduced Return. (a) If on or after the date
hereof, the adoption of any applicable Law, rule or regulation, or any change in
any applicable Law, rule or regulation, or any change in the interpretation or
administration thereof by any governmental authority, central bank or comparable
agency charged with the interpretation or administration thereof, or compliance
by any Bank (or its Applicable Lending
Office) with any request or directive (whether or not having the force of Law) of any
such authority, central bank or comparable agency shall impose, modify or deem applicable
any reserve (including, without limitation, any such requirement imposed by the Board of
Governors of the Federal Reserve System, but excluding with respect to any Euro-Dollar
Loan any such requirement with respect to which such Bank is entitled to compensation
during the relevant Interest Period under Section 2.16), special deposit, insurance
assessment or similar requirement against assets of, deposits with or for the account of,
or credit extended by, any Bank (or its Applicable Lending Office) or shall impose on any
Bank (or its Applicable Lending Office) or on the London interbank market any other
condition affecting its Euro-Dollar Loans, its Note or its obligation to make Euro-Dollar
Loans and the result of any of the foregoing is to increase the cost to such Bank (or its
Applicable Lending Office) of making or maintaining any Euro-Dollar Loan, or to reduce
the amount of any sum received or receivable by such Bank (or its Applicable Lending
Office) under this Agreement or under its Note with respect thereto, by an amount deemed
by such Bank to be material, then, within 15 days after demand by such Bank (with a copy
to the Administrative Agent), the Borrower shall pay to such Bank such additional amount
or amounts as will compensate such Bank for such increased cost or reduction.  

 45

	

     (b) If
any Bank shall have determined that, after the date hereof, the adoption of any
applicable Law, rule or regulation regarding capital adequacy, or any change in any such
Law, rule or regulation, or any change in the interpretation or administration thereof by
any governmental authority, central bank or comparable agency charged with the
interpretation or administration thereof, or any request or directive regarding capital
adequacy (whether or not having the force of Law) of any such authority, central bank or
comparable agency, has or would have the effect of reducing the rate of return on capital
of such Bank (or its Parent) as a consequence of such Bank's obligations hereunder to a
level below that which such Bank (or its Parent) could have achieved but for such
adoption, change, request or directive (taking into consideration its policies with
respect to capital adequacy) by an amount deemed by such Bank to be material, then from
time to time, within 15 days after demand by such Bank (with a copy to the Administrative
Agent), the Borrower shall pay to such Bank such additional amount or amounts as will
compensate such Bank (or its Parent) for such reduction. 

     (c)
Each Bank will promptly notify the Borrower and the Administrative Agent of any event of
which it has knowledge, occurring after the date hereof, which will entitle such Bank to
compensation pursuant to this Section and will designate a different 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 Bank, be otherwise disadvantageous to such Bank. A
certificate of any Bank claiming compensation under this Section and setting forth the
additional amount or amounts to be paid to it hereunder shall be conclusive in the
absence of manifest error. In determining such amount, such Bank
may use any reasonable averaging and attribution methods.  

 46

	

     SECTION
10.4. Taxes. (a) For the purposes of this Section, the following terms have the following
meanings:  

     “Taxes”
means any and all present or future taxes, duties, levies, imposts, deductions,
charges or withholdings with respect to any payment by the Borrower pursuant to
this Agreement or under any Note, and all liabilities with respect thereto,
excluding (i) in the case of each Bank and Agent, taxes imposed on its
income, and franchise or similar taxes imposed on it, by a jurisdiction under
the Laws of which such Bank or Agent (as the case may be) is organized or in
which its principal executive office is located or, in the case of each Bank, in
which its Applicable Lending Office is located and (ii) in the case of each
Bank, any United States withholding tax imposed on such payment at a rate up to
(but not exceeding) the rate at which United States withholding tax would have
been imposed on such a payment to such Bank under the Laws and treaties in
effect when such Bank first became a party to this Agreement. 

     “Other
Taxes” means any present or future stamp or documentary taxes and any
other excise or property taxes, or similar charges or levies, which arise from
any payment made pursuant to this Agreement or under any Note or from the
execution or delivery of, or otherwise with respect to, this Agreement or any
Note. 

     (b)
All payments by the Borrower to or for the account of any Bank or Agent hereunder or
under any Note shall be made without deduction for any Taxes or Other Taxes; provided
that, if the Borrower shall be required by Law to deduct any Taxes or Other Taxes from
any such payment, (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) such Bank or Agent (as the case may be) receives an amount
equal to the sum it would have received had no such deductions been made, (ii) the
Borrower shall make such deductions, (iii) the Borrower shall pay the full amount
deducted to the relevant taxation authority or other authority in accordance with
applicable Law and (iv) the Borrower shall furnish to the Administrative Agent, at its
address referred to in Section 11.01, the original or a certified copy of a receipt
evidencing payment thereof. 

     (c)
The Borrower agrees to indemnify each Bank and Agent for the full amount of Taxes and
Other Taxes (including, without limitation, any Taxes or Other Taxes imposed or asserted
by any jurisdiction on amounts payable under this Section) paid by such Bank or Agent (as
the case may be) and any liability (including penalties, interest and expenses) arising
therefrom or with respect thereto. This indemnification shall be paid within 15 days
after such Bank or Agent (as the case may be) makes demand therefor. 

 47

	

     (d)
Each Bank organized under the Laws of a jurisdiction outside the United States, before it
signs and delivers this Agreement in the case of each Bank listed on the signature pages
hereof and before it becomes a Bank in the case of each other Bank, and from time to time
thereafter if requested in writing by the Borrower (but only so long as such Bank remains
lawfully able to do so), shall provide the Borrower and the Administrative Agent with
Internal Revenue Service form W-8BEN or W-8ECI, as appropriate, or any successor form
prescribed by the Internal Revenue Service, certifying that such Bank is entitled to
benefits under an income tax treaty to which the United States is a party which exempts
the Bank from United States withholding tax or reduces the rate of withholding tax on
payments of interest for the account of such Bank or certifying that the income
receivable pursuant to this Agreement is effectively connected with the conduct of a
trade or business in the United States. 

     (e)
For any period with respect to which a Bank has failed to provide the Borrower or the
Administrative Agent with the appropriate form pursuant to Section 10.04(d) (unless such
failure is due to a change in treaty, Law or regulation occurring after the date on which
such form originally was required to be provided), such Bank shall not be entitled to
indemnification under Section 11.03(b) or (c) with respect to Taxes imposed by the United
States; provided that if a Bank, which is otherwise exempt from or subject to a reduced
rate of withholding tax, becomes subject to Taxes because of its failure to deliver a
form required hereunder, the Borrower shall take such steps as such Bank shall reasonably
request to assist such Bank to recover such Taxes. 

     (f) If
the Borrower is required to pay additional amounts to or for the account of any Bank
pursuant to this Section, then such Bank will change the jurisdiction of its Applicable
Lending Office if, in the judgment of such Bank, such change (i) will eliminate or reduce
any such additional payment which may thereafter accrue and (ii) is not otherwise
disadvantageous to such Bank. 

     SECTION
10.5. Base Rate Loans Substituted for Affected Euro-Dollar Loans. If (i)
the obligation of any Bank to make, or to continue or convert outstanding Loans
as or to, Euro-Dollar Loans has been suspended pursuant to Section 10.02 or (ii)
any Bank has demanded compensation under Section 10.03 with respect to its
Euro-Dollar Loans, and in either case the Borrower shall, by at least five
Euro-Dollar Business Days’ prior notice to such Bank through the
Administrative Agent, have elected that the provisions of this Section shall
apply to such Bank, then, unless and until such Bank notifies the Borrower that
the circumstances giving rise to such suspension or demand for compensation no
longer exist, all Loans which would otherwise be made by such Bank as (or
continued as or converted into) Euro-Dollar Loans, shall instead be Base Rate
Loans (on which interest and principal shall be payable contemporaneously with
the related Euro-Dollar Loans of the other Banks).
If such Bank notifies the Borrower
that the circumstances giving rise to such suspension or demand for compensation no
longer exist, the principal amount of each such Base Rate Loan shall be converted into a
Euro-Dollar Loan on the first day of the next succeeding Interest Period applicable to
the related Euro-Dollar Loans of the other Banks.  

48 

	

ARTICLE 11

MISCELLANEOUS 

     SECTION
11.1. Notices. All notices, requests and other communications to any
party hereunder shall be in writing (including bank wire, telex, facsimile or
similar writing) and shall be given to such party: (a) in the case of the
Borrower or the Administrative Agent, at its address, facsimile number or telex
number set forth on the signature pages hereof, (b) in the case of any Bank, at
its address, facsimile number or telex number set forth in its Administrative
Questionnaire or (c) in the case of any party, at such other address, facsimile
number or telex number as such party may hereafter specify for the purpose by
notice to the Administrative Agent and the Borrower. Each such notice, request
or other communication shall be effective (i) if given by telex, when such telex
is transmitted to the telex number referred to in this Section and the
appropriate answerback is received, (ii) if given by facsimile, when transmitted
to the facsimile number referred to in this Section and confirmation of receipt
is received, (iii) if given by mail, 72 hours after such communication is
deposited in the mails with first class postage prepaid, addressed as aforesaid
or (iv) if given by any other means, when delivered at the address referred to
in this Section; provided that notices to the Administrative Agent under
Article 2 or Article 10 shall not be effective until received. 

     SECTION
11.2. No Waivers. No failure or delay by any Agent or Bank in exercising
any right, power or privilege hereunder or under any Note shall operate as a
waiver thereof nor shall any single or partial exercise thereof preclude any
other or further exercise thereof or the exercise of any other right, power or
privilege. The rights and remedies herein provided shall be cumulative and not
exclusive of any rights or remedies provided by Law. 

     SECTION
11.3. Expenses; Indemnification. (a) The Borrower shall pay (i) all
reasonable out-of-pocket expenses of the Administrative Agent, including
reasonable fees and disbursements of special counsel for the Administrative
Agent, in connection with the preparation and administration of this Agreement,
any waiver or consent hereunder or any amendment hereof or any Default or
alleged Default hereunder and (ii) if an Event of Default occurs, all reasonable
out-of-pocket expenses incurred by each Agent and Bank, including the reasonable
fees and disbursements of counsel, in connection with such Event of Default and
collection, bankruptcy, insolvency and other enforcement proceedings resulting
therefrom. 

 49

	

     (b)
The Borrower agrees to indemnify each Agent and Bank, their respective affiliates and the
respective directors, officers, agents and employees of the foregoing (each an
"Indemnitee") and hold each Indemnitee harmless from and against any and all liabilities,
losses, damages, costs and expenses of any kind, including, without limitation, the
reasonable fees and disbursements of counsel, which may be incurred by such Indemnitee in
connection with any investigative, administrative or judicial proceeding (whether or not
such Indemnitee shall be designated a party thereto) brought or threatened relating to or
arising out of this Agreement or any actual or proposed use of proceeds of Loans
hereunder; provided that no Indemnitee shall have the right to be indemnified hereunder
for such Indemnitee's (i) own gross negligence or willful misconduct or (ii) default in
the performance of its own express contractual duties to the Borrower, in each case as
determined by a court of competent jurisdiction. 

     SECTION
11.4. Sharing of Set-offs. Each Bank agrees that if it shall, by
exercising any right of set-off or counterclaim or otherwise, receive payment of
a proportion of the aggregate amount of principal and interest then due with
respect to any Note held by it which is greater than the proportion received by
any other Bank in respect of the aggregate amount of principal and interest then
due with respect to any Note held by such other Bank, the Bank receiving such
proportionately greater payment shall purchase such participations in the Notes
held by the other Banks, and such other adjustments shall be made, as may be
required so that all such payments of principal and interest with respect to the
Notes held by the Banks shall be shared by the Banks pro rata; provided
that nothing in this Section shall impair the right of any Bank to exercise any
right of set-off or counterclaim it may have and to apply the amount subject to
such exercise to the payment of indebtedness of the Borrower other than its
indebtedness hereunder. The Borrower agrees, to the fullest extent it may
effectively do so under applicable Law, that any holder of a participation in a
Note, whether or not acquired pursuant to the foregoing arrangements, may
exercise rights of set-off or counterclaim and other rights with respect to such
participation as fully as if such holder of a participation were a direct
creditor of the Borrower in the amount of such participation. 

     SECTION
11.5. Amendments and Waivers. Any provision of this Agreement or the
Notes may be amended or waived if, but only if, such amendment or waiver is in
writing and is signed by the Borrower and the Required Banks (and, if the rights
or duties of any Agent are affected thereby, by such Agent); provided
that no such amendment or waiver shall, unless signed by all the Banks, (i)
increase or decrease the Commitment of any Bank (except for a ratable decrease
in the Commitments of all Banks) or subject any Bank to any additional
obligation, (ii) reduce the principal of or rate of interest on any Loan or any
interest thereon or any fees hereunder, (iii) postpone the date fixed for any
payment of principal of or interest on any Loan or interest thereon or any fees
hereunder or for the termination of any Commitment, (iv) change the definition
of “Required Banks” under Section 1.01 or (v) change the
percentage of the Commitments or of
the aggregate unpaid principal amount of the Notes, or the number of Banks, which shall
be required for the Banks or any of them to take any action under this Section or any
other provision of this Agreement.  

 50

	

     SECTION
11.6. Successors and Assigns. (a) The provisions of this Agreement shall
be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns, except that the Borrower may not assign or
otherwise transfer (other than pursuant to a Permitted Transaction) any of its
rights under this Agreement without the prior written consent of all Banks. 

     (b)
Any Bank may at any time grant to one or more banks or other institutions (each a
"Participant") participating interests in its Commitment or any or all of its Loans. If a
Bank grants any such participating interest to a Participant, whether or not upon notice
to the Borrower and the Administrative Agent, such Bank shall remain responsible for the
performance of its obligations hereunder, and the Borrower and the Administrative Agent
shall continue to deal solely and directly with such Bank in connection with such Bank's
rights and obligations under this Agreement. Any agreement pursuant to which any Bank may
grant such a participating interest shall provide that such Bank shall retain the sole
right and responsibility to enforce the Borrower's obligations hereunder including,
without limitation, the right to approve any amendment, modification or waiver of any
provision of this Agreement; provided that such participation agreement may provide that
such Bank will not agree to any modification, amendment or waiver of this Agreement
described in clause (i), (ii) or (iii) of Section 11.05 without the consent of the
Participant. The Borrower agrees that each Participant shall, to the extent provided in
its participation agreement, be entitled to the benefits of Section 2.16 and Article 10
with respect to its participating interest. An assignment or other transfer which is not
permitted by subsection (c) or (d) below shall be given effect for purposes of this
Agreement only to the extent of a participating interest granted in accordance with this
subsection. 

     (c)
Any Bank may at any time assign to one or more banks or other institutions (each an
"Assignee") all, or a proportionate part (equivalent to an initial Commitment of not less
than $10,000,000) of all, of its rights and obligations under this Agreement and the
Notes, and such Assignee shall assume such rights and obligations, pursuant to an
Assignment and Assumption Agreement in substantially the form of Exhibit D hereto signed
by such Assignee and such transferor Bank, with (and subject to) the subscribed consent
of the Borrower, which shall not be unreasonably withheld, and the Administrative Agent;
provided that (i) if an Assignee is an affiliate of such transferor Bank or was a Bank
immediately before such assignment, no such consent of the Borrower or the Administrative
Agent shall be required and (ii) if an Event of Default has occurred and is continuing,
no such consent of the Borrower shall be required. When such instrument has been signed
and delivered by the parties thereto and such Assignee has paid to such transferor
Bank the purchase price agreed
between such transferor Bank and such Assignee, such Assignee shall be a Bank party to
this Agreement and shall have all the rights and obligations of a Bank with a Commitment
as set forth in such instrument of assumption, and the transferor Bank shall be released
from its obligations hereunder to a corresponding extent, and no further consent or
action by any party shall be required. Upon the consummation of any assignment pursuant
to this subsection, the transferor Bank, the Administrative Agent and the Borrower shall
make appropriate arrangements so that, if required, a new Note is issued to the Assignee.
In connection with any such assignment, the transferor Bank shall pay to the
Administrative Agent an administrative fee for processing such assignment in the amount
of $3,500. If the Assignee is not incorporated under the Laws of the United States or a
state thereof, it shall deliver to the Borrower and the Agent certification as to
exemption from deduction or withholding of any United States federal income taxes in
accordance with Section 10.03.  

 51

	

     (d)
Any Bank may at any time assign all or any portion of its rights under this Agreement and
its Note to a Federal Reserve Bank. No such assignment shall release the transferor Bank
from its obligations hereunder. 

     (e) No
Assignee, Participant or other transferee of any Bank's rights shall be entitled to
receive any greater payment under Section 10.03 or 10.04 than such Bank would have been
entitled to receive with respect to the rights transferred, unless such transfer is made
with the Borrower's prior written consent or by reason of the provisions of Section
10.02, 10.03 or 10.04 requiring such Bank to designate a different Applicable Lending
Office under certain circumstances or at a time when the circumstances giving rise to
such greater payment did not exist. 

     SECTION
11.7. Collateral. Each of the Banks represents to each Agent and each of
the other Banks that it in good faith is not relying upon any Margin Stock as
collateral in the extension or maintenance of the credit provided for in this
Agreement. 

     SECTION
11.8. Governing Law; Submission to Jurisdiction. This Agreement and each
Note shall be governed by and construed in accordance with the Laws of the State
of New York. The Borrower hereby submits to the nonexclusive jurisdiction of the
United States District Court for the Southern District of New York and of any
New York State court sitting in New York City for purposes of all legal
proceedings arising out of or relating to this Agreement or the transactions
contemplated hereby. The Borrower irrevocably waives, to the fullest extent
permitted by Law, any objection which it may now or hereafter have to the laying
of the venue of any such proceeding brought in such a court and any claim that
any such proceeding brought in such a court has been brought in an inconvenient
forum. 

52 

	

     SECTION
11.9. Counterparts; Integration; Effectiveness. This Agreement may be
signed in any number of counterparts, each of which shall be an original, with
the same effect as if the signatures thereto and hereto were upon the same
instrument. This Agreement constitutes the entire agreement and understanding
among the parties hereto and supersedes any and all prior agreements and
understandings, oral or written, relating to the subject matter hereof;
provided that the provisions of the Fee Letter relating to potential
syndication of this Agreement and the undertakings of Borrower in connection
therewith shall remain in full force and effect. This Agreement shall become
effective when the Administrative Agent has received from each of the parties
hereto a counterpart hereof signed by such party or facsimile or other written
confirmation satisfactory to the Administrative Agent confirming that such party
has signed a counterpart hereof. 

     SECTION
11.10. WAIVER OF JURY TRIAL. EACH OF THE BORROWER, THE AGENTS AND THE
BANKS HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY. 

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

			
	    	
ULTRAMAR DIAMOND SHAMROCK 

CORPORATION

	    	By:	
/s/ Steven A. Blank
——————————

Steven A. Blank

Vice President and Treasurer

	
Address:

6000 North Loop 1604 West,

San Antonio, TX 78249

Facsimile: 210-592-2010

	    	    
	    	
THE CHASE MANHATTAN BANK, as

Administrative Agent and Bank

	    	By:	
/s/ Steven Nordaker
——————————
Name:  
Steven Nordaker
Title:   
Managing Director

	

53 

	

			
	
Address:

One Chase Manhattan Plaza, 8th Floor

New York, New York 10081

Attention of Muniram Appanna

Facsimile: (212) 552-2261;

with a copy to:

The Chase Manhattan Bank

707 Travis

Houston, Texas 77002

Attention of Kelly Schrock

Facsimile: (713) 216-2291

	    	    
	    	
BANK OF AMERICA, N.A.,

   as Syndication Agent and as

               Bank

	    	
By:	
/s/  Claire Liu
——————————

Name: Claire M. Liu

Title: Managing Director

	

 54

	

COMMITMENT SCHEDULE

		
	
Name of 
Lender	Commitment
	
The Chase Manhattan Bank	$375,000,000
	
Bank of America, N.A.	$375,000,000

	
Total:	
$750,000,000

	

PRICING SCHEDULE

     Each
of “Commitment Fee Rate” and “Euro-Dollar Margin” means, for
any day, the rate set forth below in the row opposite such term and in the
column corresponding to the Pricing Level that applies for such day: 

							
	
Pricing Level	
Level I	
Level II	
Level III	
Level IV	
Level V	
Level VI
	Commitment Fee Rate	.10%	.125%	.15%	.175%	.30%	.375%
	Euro-Dollar Margin	.75%	.875%	1.00%	1.125%	1.75%	2.25%

	

     For
purposes of this Schedule, the following terms have the following meanings,
subject to the final paragraph of this Pricing Schedule: 

     “Level
I Pricing” applies for any day if, on such day, the Borrower’s
long-term debt is rated BBB+ or higher by S&P and Baa1 or higher by
Moody’s. 

     “Level
II Pricing” applies for any day if, on such day, (i) the Borrower’s
long-term debt is rated BBB or higher by S&P and Baa2 or higher by
Moody’s and (ii) Level I Pricing does not apply. 

     “Level
III Pricing” applies for any day if, on such day, (i) the Borrower’s
long-term debt is rated (x) BBB or higher by S&P and Baa3 or higher by
Moody’s or (y) Baa2 or higher by Moody’s and BBB- or higher by S&P
and (ii) neither Level I Pricing nor Level II Pricing applies. 

     “Level
IV Pricing” applies for any day if, on such day, (i) the Borrower’s
long-term debt is rated BBB- or higher by S&P and Baa3 or higher by
Moody’s and (ii) none of Level I Pricing, Level II Pricing and Level III
Pricing applies. 

     “Level
V Pricing” applies for any day if, on such day, (i) the Borrower’s
long-term debt is rated BB+ or higher by S&P and Ba1 or higher by
Moody’s and (ii) none of Level I Pricing, Level II Pricing, Level III
Pricing and Level IV Pricing applies. 

     “Level
VI Pricing” applies for any day if no other Pricing Level applies for such
day. 

     “Pricing
Level” refers to the determination of which of Level I, Level II, Level
III, Level IV or Level V Pricing applies for any day. 

	

     The
credit ratings to be utilized for purposes of this Schedule are those assigned
to the senior unsecured long-term debt securities of the Borrower without
third-party credit enhancement, and any rating assigned to any other debt
security of the Borrower shall be disregarded. The ratings in effect for any day
are those in effect at the close of business on such day. 

2 

	

SCHEDULE 1.1 

SIGNIFICANT
SUBSIDIARIES

Canadian Ultramar Company 

Diamond Shamrock Refining and
Marketing Company 

D-S Venture Company, L.L.C.  

Diamond Shamrock Refining Company,
L.P. 

TPI Petroleum, Inc. 

Ultramar Credit Corporation 

Ultramar Inc. 

Ultramar Ltee 

	

SCHEDULE 4.12 
PLANS

Ultramar Diamond Shamrock
Corporation Employees’Retirement Plan 

UDS 401(k) Retirement Savings Plan 

UDS Pension Plan 

	

EXHIBIT A - Note 

Note

New York, New York

          
               
      , 2001 

     For
value received, Ultramar Diamond Shamrock Corporation, a Delaware corporation
(the “Borrower”), promises to pay to the order of        
             
(the “Bank”), for the account of its Applicable Lending Office, the
unpaid principal amount of each Loan made by the Bank to the Borrower pursuant
to the Bridge Loan Agreement referred to below on the maturity date provided for
in the Bridge Loan Agreement. The Borrower promises to pay interest on the
unpaid principal amount of each such Loan on the dates and at the rate or rates
provided for in the Bridge Loan Agreement. All such payments of principal and
interest shall be made in lawful money of the United States in Federal or other
immediately available funds at the office of The Chase Manhattan Bank, One Chase
Manhattan Plaza, New York, New York. 

     All
Loans made by the Bank, the respective types thereof and all repayments of the
principal thereof shall be recorded by the Bank and, if the Bank so elects in
connection with any transfer or enforcement hereof, appropriate notations to
evidence the foregoing information with respect to each such Loan then
outstanding may be endorsed by the Bank on the schedule attached hereto, or on a
continuation of such schedule attached to and made a part hereof;
provided that the failure of the Bank to make any such recordation or
endorsement shall not affect the Borrower’s obligations hereunder or under
the Bridge Loan Agreement. 

     This
note is one of the Notes referred to in the Bridge Loan Agreement dated as of
February 7, 2001 among Ultramar Diamond Shamrock Corporation, the Banks party
thereto, The Chase Manhattan Bank, as Administrative Agent and Bank of America,
N.A. as Syndication Agent (as the same may be amended from time to time, the
“Bridge Loan Agreement”). Terms defined in the Bridge Loan Agreement
are used herein with the same meanings. Reference is made to the Bridge Loan
Agreement for provisions for the prepayment hereof and the acceleration of the
maturity hereof. 

			Ultramar Diamond Shamrock Corporation

By: 
         ——————————————

Name
Title

	

Loans and Payments of
Principal

					
	Date	Amount
of
Loan	Type
of
Loan	Amount of
Principal
Repaid	Notation
Made By
	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

 2

	

EXHIBIT B - Opinion of
Counsel for the Borrower 

Opinion of 
Managing
Attorney of the Borrower 

February 7, 2001 

To the Banks and the Agents

Referred to Below

c/o The Chase Manhattan Bank

,as Administrative Agent 

Ladies and Gentlemen: 

     I
am a Managing Attorney of Ultramar Diamond Shamrock Corporation (the
“Borrower”) and I am familiar with the Bridge Loan Agreement dated as
of February 7, 2001 (the “Bridge Loan Agreement”) among the
Borrower, The Chase Manhattan Bank, as Administrative Agent, and Bank of
America, N.A., as Syndication Agent. Terms defined in the Bridge Loan Agreement
are used herein as therein defined. The Bridge Loan Agreement and the Notes are
collectively referred to as the “Documents.” This opinion is being
rendered to you pursuant to Section 3.01(b) of the Bridge Loan Agreement. 

     I
have examined such corporate documents of the Borrower, certificates of public
officials, and other agreements, instruments, certificates and documents as I
have deemed necessary as a basis for the opinions expressed herein. 

     In
rendering the opinions expressed below, I have assumed, with your permission and
without independent verification, that: 

	 	
     (a)
the signatures of all persons (other than the Borrower) signing documents in connection
with which this opinion is rendered are genuine and authorized;

	 	
     (b)
all documents submitted to me as originals or duplicate originals are authentic;

	 	
     (c)
all documents submitted to me as copies, whether certified or not, conform to authentic
original documents; and

	 	
     (d)
all parties to the Bridge Loan Agreement (other than the Borrower) have full power and
authority to execute, deliver and perform their obligations under such documents, and all
such documents have been duly authorized by all necessary action on the part of parties
thereto (other than the Borrower), have been duly executed and delivered by such other
parties, and are valid, binding and enforceable obligations of such other parties.

	

     Subject
to the foregoing and to further qualifications and limitations set forth below,
I am of the opinion that: 

     1.
The Borrower is a corporation duly incorporated, validly existing and in good
standing under the laws of Delaware and has all corporate powers and all
material governmental licenses, authorizations, consents and approvals required
to carry on its business as now conducted. 

     2.
The execution, delivery and performance by the Borrower of the Bridge Loan
Agreement and the Notes (a) are within the Borrower’s corporate powers, (b)
have been duly authorized by all necessary corporate action, (c) do not require
any action by or in respect of, or filing with, any governmental body, agency or
official and (d) do not contravene, or constitute a default under, any provision
of applicable Law or regulation or of the Borrower’s certificate of
incorporation or by-laws or, to the best of my knowledge, of any material
agreement, judgment, injunction, order, decree or other instrument binding upon
the Borrower or any of its Significant Subsidiaries or result in the creation or
imposition of any Lien on any asset of the Borrower or any of its Significant
Subsidiaries. 

     3.
The Bridge Loan Agreement constitutes a valid and binding agreement of the
Borrower and each Note issued thereunder today constitutes a valid and binding
obligation of the Borrower, in each case enforceable in accordance with its
terms. 

     4.
There is no action, suit or proceeding pending against, or to the best of my
knowledge threatened against or affecting, the Borrower or any of its
Subsidiaries before any court or arbitrator or any governmental body, agency or
official which could reasonably be expected to have a Material Adverse Effect or
which in any manner draws into question the validity of the Bridge Loan
Agreement or the Notes. 

     5.
Each of the Borrower’s corporate Significant Subsidiaries is a corporation,
partnership or limited liability company validly existing and in good standing
under the laws of its jurisdiction of formation except where the failure to
validly exist or to be in good standing could not reasonably be expected to have
a Material Adverse Effect. 

     My
opinions are subject to the following qualifications: 

	 	
     (i)
my opinions are subject to the effect of bankruptcy, insolvency, reorganization,
arrangement, moratorium or other similar laws affecting creditors' or secured creditors'
rights generally;

	

 2

	

	 	
     (ii)
the binding effect and enforceability of the Documents and the availability of injunctive
relief or other equitable remedies thereunder are subject to the effect of general
principles of equity (regardless of whether enforcement is considered in proceedings at
law or in equity);

	 	
     (iii)
the binding effect and the enforceability of the Documents are subject to the effect of
laws and judicial decisions which have imposed duties and standards of conduct
(including, without limitation, obligations of good faith, fair dealing and
reasonableness) upon creditors or secured creditors;

	 	
     (iv)
I express no opinion as to the enforceability of cumulative remedies to the extent such
cumulative remedies purport to or would have the effect of compensating the party
entitled to the benefits thereof in amounts in excess of the actual loss suffered by such
party;

	 	
     (v)
requirements in the Documents specifying that provisions thereof may only be waived in
writing may not be valid, binding or enforceable to the extent that an oral agreement or
an implied agreement by trade practice or course of conduct has been created modifying
any provision of such documents;

	 	
     (vi)
waivers of equitable rights and defenses may not be valid, binding or enforceable under
state or federal law;

	 	
     (vii)
I express no opinion as to the enforceability of the indemnification provisions of the
Documents insofar as said provisions contravene public policy; and

	 	
     (viii)
I am admitted to practice law in the State of Texas and as such, I express no opinion as
to, or the effect or applicability of, any laws other than the General Corporation Law of
the State of Delaware, the laws of the State of Texas and the federal laws of the United
States of America.

	

     My opinions
are limited to the specific issues addressed and are limited in all respects to
laws and facts existing on the date hereof. By rendering these opinions, I do
not undertake to advise you of any changes in such laws or facts which may occur
after the date hereof. 

 3

	

     This
letter is furnished to you pursuant to the Bridge Loan Agreement and is not to
be relied upon by any other person or entity or used, circulated, quoted or
otherwise relied upon for any other purpose except that it may be relied upon as
of the date hereof, in addition to the Persons to which it is addressed, by
Persons which become Banks after the date hereof. 

Sincerely, 

 4

	

EXHIBIT C - Opinion of
Special Counsel for the Agent 

Opinion of 

Vinson & Elkins L.L.P., Special Counsel 

for the Agent 

February ___, 2001 

     We
have participated in the preparation of the Bridge Loan Agreement dated as of
February ___, 2001 (the “Bridge Loan Agreement”) among Ultramar
Diamond Shamrock Corporation, a Delaware corporation (the “Borrower”),
The Chase Manhattan Bank, as Administrative Agent and Bank of America, N.A., as
Syndication Agent and have acted as special counsel for the Administrative Agent
for the purpose of rendering this opinion pursuant to Section 3.01(c) of the
Bridge Loan Agreement. Terms defined in the Bridge Loan Agreement are used
herein as defined therein. 

     In
connection with the opinions herein expressed, we have (i) investigated
such questions of law, (ii) examined such corporate documents and records
of the Borrower, and certificates of public officials, and (iii) received
such information from officers and representatives of the Borrower as we have
deemed necessary or appropriate for the purposes of this opinion. 

     In
rendering the opinions herein set forth, we have assumed (i) the due
authorization, execution and delivery of the Bridge Loan Agreement by all
parties thereto, (ii) the legal capacity of natural persons, (iii) the
genuineness of all signatures, (iv) the authenticity of all documents
submitted to us as originals, and (v) the conformity to original documents
of all documents submitted to us as copies. As to various questions of fact
material to our opinion, we have relied upon the representations made in the
Bridge Loan Agreement. 

     Based
upon the foregoing and subject to the qualifications, exceptions, limitations,
and assumptions set forth herein, we are of the opinion that the Bridge Loan
Agreement constitutes the legal, valid and binding obligation of Borrower
enforceable in accordance with its terms. 

     The
opinion set forth above is subject in all respects to the following
qualifications, limitations, exceptions and assumptions: 

	

     (1)
The opinion set forth above is subject, as to enforceability, to the effect of
any applicable bankruptcy (including, without limitation, preference and
fraudulent conveyance), insolvency, reorganization, moratorium or similar laws
affecting creditors’ rights generally. The enforceability opinions set
forth above are also subject to the effect of general principles of equity
(regardless of whether considered in proceedings in equity or at law),
including, without limitation, concepts of materiality, reasonableness, good
faith and fair dealing, and the possible unavailability of specific performance
or injunctive relief. 

     (2) We
express no opinion with respect to the following provisions to the extent that the same
are contained in the Bridge Loan Agreement: 

	 	
     (i)
provisions purporting to waive rights to notices, objections, demands, legal defenses,
statutes of limitation, rights of trial by jury, and other benefits or rights that cannot
be waived under applicable law;

	 	
     (ii)
provisions purporting to affect the jurisdiction or venue of courts;

	 	
     (iii)
provisions granting powers of attorney or authority to act to execute documents or to act
by power of attorney on behalf of another party;

	 	
     (iv)
provisions releasing, exculpating or exempting a party from, or requiring indemnification
of a party for, liability for its own action or inaction, to the extent that the same are
inconsistent with public policy;

	 	
     (v)
provisions purporting to establish evidentiary standards for suits or proceedings to
enforce the Bridge Loan Agreement;

	 	
     (vi)
provisions that decisions by a party are conclusive; and

	 	
     (vii)
provisions relating to offsets and to rights of subrogation.

	

     (3)
The opinions expressed herein are as of the date hereof only, and we assume no
obligation to update or supplement such opinions to reflect any fact or
circumstance that may hereafter come to our attention or any change that may
hereafter occur or become effective. 

     (4)
The opinions herein expressed and the statements herein made are limited in all
respect to the laws of the State of New York and the applicable federal laws of
the United States. 

     The
opinions herein have been furnished at your request and are solely for your
benefit and the benefit of your permitted participants and assigns in connection
with the subject transaction and may not relied upon by any other Person or
furnished to anyone else without the prior written consent of the undersigned
other than (i) for disclosure to regulatory authorities having jurisdiction over
the Administrative Agent, or (ii) as disclosed in connection with any permitted
assignment, transfer or participation in respect of the Bridge Loan Agreement. 

3 

	

		
	   	
Very truly yours,

VINSON & ELKINS L.L.P.

	

 3

	

EXHIBIT D - Assignment
and Assumption Agreement 

Assignment and
Assumption Agreement

     AGREEMENT
dated as of _________, 200_ among <NAME OF ASSIGNOR> (the
“Assignor”), <NAME OF ASSIGNEE> (the “Assignee”),
Ultramar Diamond Shamrock Corporation (the “Borrower”) and THE CHASE
MANHATTAN BANK, as Administrative Agent (the “Administrative Agent”). 

     WHEREAS,
this Assignment and Assumption Agreement (the “Agreement”) relates to
the Bridge Loan Agreement dated as of February 7, 2001 among the Borrower, the
Assignor and the other Banks party thereto, as Banks, and the Administrative
Agent (as amended from time to time, the “Bridge Loan Agreement”); 

     [WHEREAS,
as provided under the Bridge Loan Agreement, the Assignor has a Commitment to
make Loans to the Borrower in an aggregate principal amount at any time
outstanding not to exceed $____________; and] 

     [WHEREAS,
Loans made to the Borrower by the Assignor under the Bridge Loan Agreement in
the aggregate principal amount of $__________ are outstanding at the date
hereof; and] 

     WHEREAS,
the Assignor proposes to assign to the Assignee all of the rights of the
Assignor under the Bridge Loan Agreement in respect of a portion of its
[Commitment] [Loans] thereunder in an amount equal to $__________ (the
“Assigned Amount”), and the Assignee proposes to accept assignment of
such rights and assume the corresponding obligations from the Assignor on such
terms; 

     NOW,
THEREFORE, in consideration of the foregoing and the mutual agreements contained
herein, the parties hereto agree as follows: 

     SECTION
1. Definitions. All capitalized terms not otherwise defined herein have the respective
meanings set forth in the Bridge Loan Agreement. 

	

     SECTION
2. Assignment. The Assignor hereby assigns and sells to the Assignee all
of the rights of the Assignor under the Bridge Loan Agreement to the extent of
the Assigned Amount, and the Assignee hereby accepts such assignment from the
Assignor and assumes all of the obligations of the Assignor under the Bridge
Loan Agreement to the extent of the Assigned Amount. Upon the execution and
delivery hereof by the Assignor, the Assignee, [the Borrower, and the
Administrative Agent] and the payment of the amounts specified in Section 3
required to be paid on the date hereof [(i)] the Assignee shall, as of the date
hereof, succeed to the rights and be obligated to perform the obligations of a
Bank under the Bridge Loan Agreement with [a Commitment][outstanding Loans] in
an amount equal to the Assigned Amount, [and (ii) the Commitment of the Assignor
shall, as of the date hereof, be reduced by a like amount and] the Assignor
released from its obligations under the Bridge Loan Agreement to the extent such
obligations have been assumed by the Assignee. The assignment provided for
herein shall be without recourse to the Assignor. 

     SECTION
3. Payments. As consideration for the assignment and sale contemplated in
Section 2 hereof, the Assignee shall pay to the Assignor on the date hereof in
Federal funds the amount heretofore agreed between them. (1) It is
understood that commitment and/or facility fees accrued before the date hereof
are for the account of the Assignor and such fees accruing on and after the date
hereof are for the account of the Assignee. Each of the Assignor and the
Assignee agrees that if it receives any amount under the Bridge Loan Agreement
which is for the account of the other party hereto, it shall receive the same
for the account of such other party to the extent of such other party’s
interest therein and promptly pay the same to such other party. 

     SECTION
4. Consent of the [Borrower and the Administrative Agent]. This Agreement
is conditioned upon the consent of [the Borrower and the Administrative Agent]
pursuant to Section 11.06(c) of the Bridge Loan Agreement. The execution of this
Agreement by such Persons is evidence of their consent. [Pursuant to Section
11.06(c), the Borrower agrees to execute and deliver a Note payable to the order
of the Assignee to evidence the assignment and assumption provided for herein.] 

     SECTION
5. Non-reliance on Assignor. The Assignor makes no representation or
warranty in connection with, and shall have no responsibility with respect to,
the solvency, financial condition, or statements of the Borrower, or the
validity and enforceability of the Borrower’s obligations under the Bridge
Loan Agreement or any Note. The Assignee acknowledges that it has, independently
and without reliance on the Assignor, and based on such documents and
information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Agreement and will continue to be responsible for
making its own independent appraisal of the business, affairs and financial
condition of the Borrower. 

          
          
           
         

     (1) Amount
should combine principle together with accrued interest and breakage compensation, if
any, to be paid by the Assignee, net of any portion of any upfront fee to be paid by the
Assignor to the Assignee. It may be preferable in an appropriate case to specify these
amounts generically or by formula rather than as a fixed sum. 

2 

	

     SECTION
6. Governing Law. This Agreement shall be governed by and construed in accordance with
the Laws of the State of New York. 

     SECTION
7. Counterparts. This Agreement may be signed in any number of
counterparts, each of which shall be an original, with the same effect as if the
signatures thereto and hereto were upon the same instrument. 

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

			[NAME OF ASSIGNOR]

By: 
       ——————————————

Name:
Title:

			[NAME OF ASSIGNEE]

By: 
       ——————————————

Name:
Title:

			[ULTRAMAR DIAMOND SHAMROCK      CORPORATION]

By: 
       ——————————————

Name:
Title:

			[THE CHASE MANHATTAN BANK],
    as Adminstrative Agent

By: 
       ——————————————

Name:
Title:

	

3Exhibit 10.62

	

EXHIBIT 10.62 

STOCK PURCHASE AGREEMENT

     This
Stock Purchase Agreement (this “Agreement”), dated as of February 7,
2001, is by and among Ultramar Diamond Shamrock Corporation a Delaware
corporation (“Buyer”) and TotalFinaElf, S.A., a French corporation and
Total Finance, S.A., a French corporation (collectively, the
“Seller”). 

RECITALS:

     A.
Seller acquired shares of Buyer’s common stock, par value $0.01 (the
“Common Stock”) in 1997 pursuant to Buyer’s acquisition by merger
of Total Petroleum (North American) Ltd. 

     B.
The Board of Directors of Buyer is expected to approve a share buyback program,
under which Buyer plans to repurchase up to $850 million worth of Common Stock
(the “Share Repurchase”). 

     C.
As part of the Share Repurchase, Buyer desires to purchase from Seller and
Seller desires to sell to Buyer, 7,050,109 shares (the “Shares”) of
Common Stock, upon the terms and conditions set forth in this Agreement. 

AGREEMENT:

     In
consideration of the mutual agreements set forth in this Agreement, Buyer and
Seller hereby agree as follows: 

ARTICLE I

DEFINITIONS

     1.1
Definitions. As used in this Agreement the following terms shall have the meanings set
forth below:  

     “Governmental
Authority” means any domestic or foreign national, state, multi-state,
municipal or other local government, any subdivision, agency, instrumentality,
department, board, commission or authority thereof, or any quasi-governmental or
private body exercising any regulatory or taxing authority thereunder or any
federal, state, local or foreign court, tribunal or arbitrator. 

     “Laws”
means any law, statute, rule, code, regulation, ordinance or other legally
enforceable requirement of any Governmental Authority. 

	

     “Lien”
means any security interest, mortgage, pledge, encumbrance, lien, charge,
Option, adverse claim or restriction of any kind, including, but not limited to,
any restriction on the use, voting, transfer, receipt of income or other
exercise of any attributes of ownership. 

     “Option”
means any option, warrant, call, convertible or exchangeable security,
subscription, claim, unsatisfied preemptive right, commitment, other agreement
or right of similar nature. 

ARTICLE II

SALE AND PURCHASE OF
SHARES

     2.1
Sale and Purchase of Shares. The closing of the purchase
and sale of the Shares (the “Closing”) shall take place at
Buyer’s corporate offices, 6000 North Loop 1604 West, San Antonio, Texas
78249, February 13, 2001or at such other place, date and time as the parties may
agree (such date being referred to as the “Closing Date”). At the
Closing, (a) Seller shall sell, assign and transfer all of the Shares to Buyer,
(b) Seller shall deliver or cause to be delivered to Buyer one or more stock
certificates representing the Shares owned by Seller, with duly executed stock
powers reasonably satisfactory to Buyer in proper form for transfer, (c) Seller
shall transfer all of the Shares free and clear of all Liens, and (d) Buyer
shall purchase and acquire the Shares and pay and deliver to Seller the Purchase
Price (as defined in Section 2.2) and (e) Buyer shall deliver to Seller an
opinion of counsel to Buyer covering in substance the matters addressed in
Sections 3.2(a) and (b). 

     2.2
Purchase Price. In full consideration for the Shares, Buyer
shall pay to Seller by bank wire transfer of immediately available funds an
aggregate amount in cash equal to $32.85 per share of Common Stock multiplied by
the number of Share(the “Purchase Price”). 

ARTICLE III

REPRESENTATIONS AND
WARRANTIES

     3.1
Seller represents and warrants to Buyer as of the date of this Agreement as follows: 

     (a)
Authority. Seller has all requisite power and authority to enter
into and perform its obligations under this Agreement and to consummate the
transactions contemplated herein, and this Agreement has been duly executed and
delivered by Seller pursuant to all necessary authorization and is the legal,
valid and binding obligation of such Seller enforceable against Seller in
accordance with its terms, except as limited by (i) applicable bankruptcy,
reorganization, insolvency, moratorium or other similar laws affecting the
enforcement of creditors’ rights generally from time to time in effect and
(ii) the availability of equitable remedies (regardless of whether
enforceability is considered in a proceeding at law or in equity). 

2 

	

     (b)
Title. Seller (i) is the record and beneficial owner of all of the
Shares; (ii) has full power, right and authority to make and enter into
this Agreement and to sell, assign, transfer and deliver the Shares to Buyer,
and (iii) has good and valid title to the Shares, free and clear of all Liens
and Options. Upon the consummation of the transactions contemplated by this
Agreement in accordance with the terms hereof, Buyer shall acquire good and
marketable title to the Shares, free and clear of all Liens. To the best
knowledge of Seller, the Shares represent the only ownership interest that
Seller has in Buyer, and after the Closing Date, Seller will not own any of
Buyer’s Common Stock. 

     3.2
Buyer represents and warrants to Seller as of the date of this Agreement as follows: 

     (a)
Authority. Buyer has all requisite authority to enter into
and perform its obligations under this Agreement and to consummate the
transactions contemplated herein, and this Agreement has been duly executed and
delivered by Buyer pursuant to all necessary authorization (subject only to the
provisions of Section 4.1) and is the legal, valid and binding obligation of
Buyer enforceable against Buyer in accordance with its terms, except as limited
by (i) applicable bankruptcy, reorganization, insolvency, moratorium or other
similar laws affecting the enforcement of creditors’ rights generally from
time to time in effect, and (ii) the availability of equitable remedies
(regardless of whether enforceability is considered in a proceeding at law or in
equity). 

     (b)
No Conflict. No consent, authorization, approval, order or
permit of or from, or declaration or filing with, any federal, state, local or
other Governmental Authority or court or other tribunal is required for the
execution, delivery or performance of this Agreement by Buyer. No consent of any
party to any agreement to which Buyer is a party is required for the execution,
delivery or performance of this Agreement by Buyer. The execution, delivery and
performance of this Agreement by Buyer will not violate, result in a breach of
or conflict with Buyer’s certificate incorporation or by-laws, any law,
rule, regulation, order or decree binding on Buyer, or any agreement to which
Buyer is a party. 

     (c) No
Brokers. Neither Buyer nor any person acting on behalf of Buyer has incurred any
obligation to any finder, broker or similar person in connection with the transactions
contemplated hereby.  

     (d)
SEC Reports. All documents filed by Buyer pursuant to
the Securities Exchange Act of 1934, as amended, and the rules and regulations
thereunder (the “Exchange Act”), since September 30, 1997, (i) were
prepared in accordance with the requirements of the Exchange Act, (ii) did not
at the time they were filed contain any untrue statement of a material fact,
(iii) did not at the time they were filed omit to state a material fact
necessary to make the statements therein, in light of the circumstances in which
they were made, not misleading. From the date as of which information is given
in the most recent report filed by Buyer under the Exchange Act, there has not
been any material change or development relating to Buyer or its business and
Buyer is not engaged in any discussions or negotiations regarding any
extraordinary transaction. 

3 

	

     3.3
Each party shall indemnify and hold the other harmless from and against any and
all damage, cost, actions, claims, expenses (including reasonable attorneys fees
and expenses) and other liability arising from or relating to any breach by such
party of any representation, warranty or agreement of such party contained in
this Agreement. 

ARTICLE IV

CONDITIONS TO CLOSING

     4.1
Condition to Obligation of the Parties. The respective
obligations of the Seller and Buyer to consummate the transactions contemplated
by this Agreement shall be conditioned on the representations and warranties of
the other party contained herein being true and correct as if made on the
Closing Date and such other party shall have performed all of its obligations
required to be performed hereunder. 

ARTICLE V

MISCELLANEOUS AND GENERAL

     5.1
Successors and Assigns. This Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
assigns, but shall not be assignable by any party hereto without the prior
written consent of the other parties hereto. 

     5.2
Third Party Beneficiaries . Each party hereto intends that this
Agreement shall not benefit or create any right or cause of action in or on
behalf of any person other than the parties hereto. 

     5.3
Complete Agreement .  This Agreement and the schedules hereto and
the other documents delivered by the parties in connection herewith contain the
complete agreement between the parties hereto with respect to the transactions
contemplated hereby and thereby and supersede all prior agreements and
understandings between the parties hereto with respect thereto. 

     5.4
Captions; References. The captions contained in this Agreement are
for convenience of reference only and do not form a part of this Agreement. When
a reference is made in this Agreement to a Section or an Article, such reference
shall be to a Section or an Article of this Agreement, unless otherwise
indicated. 

     5.5
Amendment. This Agreement may be amended or modified only by an instrument in writing
duly executed by the parties to this Agreement.  

4 

	

     5.6
Waiver. At any time prior to the Closing, the parties hereto may
(i) extend the time for the performance of any of the obligations or other acts
of the parties hereto, (ii) waive any inaccuracies in the representations and
warranties contained herein or in any document delivered pursuant hereto, or
(iii) waive compliance with any of the agreements or conditions contained
herein, to the extent permitted by applicable Law. Any agreement on the part of
a party hereto to any such extension or waiver shall be valid only if set forth
in a writing signed on behalf of such party. 

     5.7
Governing Law. This Agreement shall be governed by, and construed and enforced in
accordance with, the laws of the State of Delaware, without regard to its rules of
conflict of laws.  

     5.8
Severability. Any term or provision of this Agreement that is
invalid or unenforceable in any jurisdiction shall, as to that jurisdiction, be
ineffective to the extent of such invalidity or unenforceability without
rendering invalid or unenforceable the remaining terms and provisions of this
Agreement or affecting the validity or enforceability of any of the terms or
provisions of this Agreement in any other jurisdiction. If any provision of this
Agreement is so broad as to be unenforceable, the provision shall be interpreted
to be only so broad as is enforceable. 

     5.9
Counterparts. This Agreement may be executed in one or more counterparts, each of which
shall be deemed an original but all of which shall constitute but one instrument. 

     5.10
Other Agreement. The Stockholder Agreement between Buyer
and Total Fina Elf S.A. dated as of April 15, 1997, shall be terminated and of
no further force or effect as of the Closing Date and no party shall have any
further obligation to the other under such agreement except in regard to the
Topna Tradename License and Topna Technology License contemplated thereby. 

[REMAINDER OF THIS PAGE
INTENTIONALLY LEFT BLANK]

5 

	

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

		ULTRAMAR DIAMOND SHAMROCK
CORPORATION
	 
		By: /s/ Steven Blank
       ——————————————————
——
		Name: Steven Blank
Title: Vice President and Treasurer
	 
		TOTALFINAELF, S.A.
	 
		By: /s/ R. Castaigne
       ——————————————————
——
		Name: R. Castaigne
Title: CFO
	 
		TOTAL FINANCE S.A.
	 
		By: /s/ R. Castaigne
       ——————————————————
——
		Name: R. Castaigne
Title: Authorized Signatory

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