Document:

Facility Agreement

 Exhibit 10.1 
  
 

 
  

			
	 	 	Allen & Overy Bratislava, s.r.o.
		
	 	 	 FACILITY AGREEMENT

		
	 	 	€195,000,000
		
	 	 	CREDIT FACILITY
		
	 	 	FOR
		
	 	 	U. S. Steel Košice, s.r.o.
		
	 	 	ARRANGED BY
		
	 	 	ING BANK N.V., pobočka zahraničnej banky
		
	 	 	CITIBANK, N.A. Bahrain
		
	 	 	Slovenská sporitel’ňa, a.s.
		
	 	 	WITH ING BANK N.V. AS FACILITY AGENT
		
	 	 	 15 DECEMBER 2005

 CONTENTS 
  

					
	 Clause

	  	 	  	Page

	 1.
	  	Interpretation	  	1
	 2.
	  	Facility	  	10
	 3.
	  	Purpose	  	11
	 4.
	  	Conditions precedent	  	11
	 5.
	  	Utilisation - Loans	  	11
	 6.
	  	Optional Currencies	  	12
	 7.
	  	Repayment	  	14
	 8.
	  	Prepayment and cancellation	  	14
	 9.
	  	Interest	  	17
	 10.
	  	Terms	  	18
	 11.
	  	Market disruption	  	18
	 12.
	  	Taxes	  	19
	 13.
	  	Increased Costs	  	21
	 14.
	  	Mitigation	  	22
	 15.
	  	Payments	  	22
	 16.
	  	Representations and Warranties	  	24
	 17.
	  	Undertakings	  	28
	 18.
	  	Events of Default	  	32
	 19.
	  	The Administrative Parties	  	34
	 20.
	  	Evidence and Calculations	  	39
	 21.
	  	Fees	  	39
	 22.
	  	Indemnities and Break Costs	  	40
	 23.
	  	Expenses	  	41
	 24.
	  	Amendments and waivers	  	42
	 25.
	  	Changes to the Parties	  	43
	 26.
	  	Disclosure of Information	  	45
	 27.
	  	Set-off	  	46
	 28.
	  	Pro rata sharing	  	46
	 29.
	  	Severability	  	47
	 30.
	  	Counterparts	  	47
	 31.
	  	Notices	  	47
	 32.
	  	Language	  	48
	 33.
	  	Waiver of Immunity	  	49
	 34.
	  	Governing law	  	49
	 35.
	  	Enforcement	  	49
		
	Schedule	  	 
			
	 1.
	  	Original Parties	  	51
	 2.
	  	Form of Request	  	52
	 3.
	  	Form of Transfer Certificate	  	53
	 4.
	  	Conditions Precedent Documents	  	54
	 5.
	  	Form of Legal Opinion of Legal Adviser to the Company	  	55
	 6.
	  	Form Of Legal Opinion of Allen & Overy – Slovak Law	  	59
	 7.
	  	Form of Legal Opinion of Allen & Overy – English Law	  	64
		
	 Signatories
	  	67

 THIS AGREEMENT is dated 15 December 2005 BETWEEN: 
  

	(1)	U. S. Steel Košice, s.r.o., with its registered seat at Vstupný areál U. S. Steel, Košice 044 54, Slovak Republic, registered in the Commercial
Register of District Court Košice I, insert No. 11711/V, section Sro, company identification number (IČO): 36 199 222 (the Company); 

  

	(2)	CITIBANK, N.A. Bahrain, ING BANK N.V., pobočka zahraničnej banky AND Slovenská sporitel’ňa, a.s. as mandated lead arrangers (in this
capacity the Arrangers); 

  

	(3)	THE FINANCIAL INSTITUTIONS listed in Part I of Schedule 1 (Original Lenders) as original lenders (the Original Lenders); and 

  

	(4)	ING BANK N.V. as facility agent (in this capacity the Facility Agent). 

  
 IT IS AGREED as follows: 
  

	1.	INTERPRETATION 

  

	1.1	Definitions 

  

	  	In this Agreement: 

  

	  	Administrative Party means each Arranger and the Facility Agent. 

  

	  	Affiliate means a Subsidiary or a Holding Company of a person or any other Subsidiary of that Holding Company. 

  

	  	Assets means a person’s present and future business, undertaking, properties, assets and revenues (including any uncalled capital). 

  

	  	Availability Period means the period from and including the date of this Agreement to and including the date one calendar month before the Final Maturity Date.

  

	  	Break Costs means the amount (if any) which a Lender is entitled to receive under this Agreement as compensation if any part of a Loan or overdue amount is prepaid as
calculated in accordance with Clause 22.3(b). 

  

	  	Business Day means a day (other than a Saturday or a Sunday) on which banks are open for general business in London, in New York and in Bratislava and:

  

	 	(a)	if on that day a payment in or a purchase of a currency (other than euro) is to be made, the principal financial centre of the country of that currency; or 

 

	 	(b)	if on that day a payment in or a purchase of euro is to be made, which is also a TARGET Day. 

  

	  	Central Bank means the National Bank of Slovakia. 

  

	  	Commitment means: 

  

	 	(a)	for an Original Lender, the amount set opposite its name in Schedule 1 (Original Parties) under the heading Commitments and the amount of any other Commitment it acquires;
and 

  

	 	(b)	for any other Lender, the amount of any Commitment it acquires, to the extent not cancelled, transferred or reduced under this Agreement. 

  

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	  	Default means an Event of Default or an event or circumstance which, with the giving of notice, lapse of time or fulfilment of any other applicable condition (or any
combination of the foregoing) set out in Clause 18 (Events of Default), would constitute an Event of Default. 

  

	  	Dollars and USD mean the lawful currency for the time being of the United States of America. 

  

	  	ERISA means the United States Employee Retirement Income Security Act of 1974, to which the following definitions apply: 

  

	 	  	- Code means the United States Internal Revenue Code of 1986. 

  

	 	  	- ERISA Affiliate means any person treated as a single employer with the Company for the purpose of section 414 of the Code. 

  

	 	  	- Plan means an employee benefit plan as defined in section 3(3) of ERISA: 

  

	 	(a)	maintained by the Company or any ERISA Affiliate; or 

  

	 	(b)	to which the Company or any ERISA Affiliate is required to make any payment or contribution. 

  

	 	  	- Reportable Event means: 

  

	 	(a)	an event specified as such in section 4043 of ERISA or any related regulation, other than an event in relation to which the requirement to give notice of that event is waived by any
regulation; or 

  

	 	(b)	a failure to meet the minimum funding standard under section 412 of the Code or section 302 of ERISA, whether or not there has been any waiver of notice or waiver of the minimum
funding standard under section 412 of the Code. 

  

	  	EURIBOR means for any Loan or overdue amount in euro: 

  

	 	(a)	the applicable Screen Rate; or 

  

	 	(b)	if no Screen Rate is available for the Term of that Loan or overdue amount, the arithmetic mean (rounded upward to four decimal places) of the rates as supplied to the Facility
Agent at its request quoted by the Reference Banks to leading banks in the relevant interbank market, 

  

	  	as of 11.00 a.m. (Central European time (CET)) on the Rate Fixing Day for the offering of deposits in euro for a period comparable to its Term. 

  

	  	euro means the single currency of the Participating Member States. 

  

	  	Event of Default means an event specified as such in Clause 18 of this Agreement. 

  

	  	Existing Facility refers to the facility with the Company as borrower, dated 17 December 2001 as amended. 

  

	  	Facility means the credit facility made available under this Agreement. 

  

	  	Facility Office means the office(s) notified by a Lender to the Facility Agent: 

  

	 	(a)	on or before the date it becomes a Lender; or 

  

 2 

	 	(b)	by not less than five Business Days’ notice, 

  

	  	as the office(s) through which it will perform its obligations under this Agreement. 

  

	  	Fee Letter means any letter entered into by reference to this Agreement between one or more Administrative Parties and the Company setting out the amount of certain fees
referred to in this Agreement. 

  

	  	Final Maturity Date means the first anniversary of the date of this Agreement. 

  

	  	Finance Document means: 

  

	 	(a)	this Agreement; 

  

	 	(b)	a Fee Letter; 

  

	 	(c)	a Transfer Certificate; or 

  

	 	(d)	any other document designated as such by the Facility Agent and the Company. 

  

	  	Finance Party means a Lender or an Administrative Party. 

  

	  	Financial Indebtedness means, without duplication, Indebtedness (whether being principal, premium, interest or other amounts) for or in respect of: 

 

	 	(a)	money borrowed; 

  

	 	(b)	liabilities under or in respect of any acceptance or acceptance credit; 

  

	 	(c)	any notes, bonds, debentures, debenture stock, loan stock or other debt securities offered, issued or distributed whether by way of public offer, private placing, acquisition
consideration or otherwise and whether issued for cash or in whole or in part for a consideration other than cash; 

  

	 	(d)	any interest rate and/or currency swap, forward foreign exchange transaction, financial or commodity futures transaction, commodity swap or other derivative transaction;

  

	 	(e)	liabilities pursuant to any lease which are capitalised in accordance with USGAAP; or 

  

	 	(f)	liabilities under any guarantee, indemnity or other assurance against financial loss given in relation to any of the above. 

  

	  	Fixed Assets means, in relation to the Group, those assets treated as Fixed Assets for the purposes of the Latest Accounts. 

  

	  	Group means the Company and its Subsidiaries. 

  

	  	Holding Company of any other person, means an entity in respect of which that other person is a Subsidiary. 

  

	  	Increased Cost means: 

  

	 	(a)	an additional or increased cost; 

  

 3 

	 	(b)	a reduction in the rate of return under this Agreement or on a Finance Party’s (or its Affiliate’s) overall capital; or 

  

	 	(c)	a reduction of an amount due and payable under any Finance Document, 

  

	  	which is incurred or suffered by a Finance Party or its Affiliates but only to the extent attributable to that Finance Party having entered into any Finance Document or funding or
performing its obligations under any Finance Document. 

  

	  	Indebtedness means any obligation for the payment or repayment of money in whatever currency denominated, whether as principal or as surety and whether present or future,
actual, deferred or contingent. 

  

	  	Latest Accounts means the audited consolidated financial statements of the Group last delivered to the Facility Agent under Clause 17.2 (Financial information).

  

	  	Lender means: 

  

	 	(a)	an Original Lender; or 

  

	 	(b)	any person which becomes a Lender after the date of this Agreement. 

  

	  	LIBOR means, for a Term of any Loan or overdue amount denominated in a currency other than euro: 

  

	 	(a)	the applicable Screen Rate; or 

  

	 	(b)	if no Screen Rate is available for the relevant currency or Term of that Loan or overdue amount, the arithmetic mean (rounded upward to four decimal places) of the rates, as
supplied to the Facility Agent at its request, quoted by the Reference Banks to leading banks in the London interbank market, as of 11.00 a.m. on the Rate Fixing Day for the offering of deposits in the currency of that Loan or overdue amount for a
period comparable to its Term. 

  

	  	Loan means, unless otherwise stated in this Agreement, the principal amount of each borrowing under this Agreement or the principal amount outstanding of that borrowing, in
each case pursuant to Clauses 2.1 and 5 and the terms and conditions relevant thereto under this Agreement. 

  

	  	Majority Lenders means, at any time, Lenders: 

  

	 	(a)	whose share in the outstanding Loans and whose undrawn Commitments then aggregate 66 2/3 per cent. or more of the aggregate of all the outstanding Loans and the undrawn Commitments of all the Lenders; or 

  

	 	(b)	if there is no Loan then outstanding, whose undrawn Commitments then aggregate 66 2/3 per cent. or more of the Total Commitments; or 

  

	 	(c)	if there is no Loan then outstanding and the Total Commitments have been reduced to zero, whose Commitments aggregated 66 2/3 per cent. or more of the Total Commitments immediately before the reduction. 

  

	  	Mandatory Cost means the cost as reasonably determined by a Lender, imputed to that Lender of compliance with: 

  

	 	(a)	any banking supervision or other costs imposed by the Bank of England or the United Kingdom Financial Services Authority; and 

  

 4 

	 	(b)	any other applicable regulatory or central bank requirements relating to any Loan, including any reserve asset requirements of the European Central Bank or the Central Bank.

  

	  	Margin means 0.20 per cent. per annum. 

  

	  	Margin Regulations means Regulations U and X issued by the Board of Governors of the United States Federal Reserve System. 

  

	  	Margin Stock has the meaning given to it in the Margin Regulations. 

  

	  	Material Subsidiary means any Subsidiary of the Company: 

  

	 	(a)	whose total assets (being the total of fixed assets and current assets) (consolidated in the case of a Subsidiary which itself has one or more Subsidiaries) represent not less than
7.5 per cent. of Total Assets; and/or 

  

	 	(b)	whose gross revenues (being gross revenues less internal revenues (excluding exceptionals), before operating expenses and depreciation) (consolidated in the case of a Subsidiary
which itself has one or more Subsidiaries) represent not less than 7.5 per cent. of the consolidated gross revenues of the Group (being gross revenues (excluding exceptionals) before operating expenses and depreciation on a consolidated basis as
shown in the Latest Accounts), 

  

	  	as calculated, in the case of a Subsidiary, from the then latest audited financial statements (consolidated or, as the case may be, unconsolidated) of the Subsidiary or, in the case
of the Group, the Latest Accounts. 

  

	  	Maturity Date means, for a Loan, the last day of its Term. 

  

	  	Participating Member State means a member state of the European Communities that adopts or has adopted the euro as its lawful currency under the legislation of the European
Community for Economic Monetary Union. 

  

	  	Party means a party to this Agreement. 

  

	  	Permitted Disposal means any of the following: 

  

	 	(a)	disposals of Assets in the ordinary course of trading at arms’ length; 

  

	 	(b)	disposals on normal commercial terms of obsolete Assets or Assets no longer used or useful in the Company’s business; 

  

	 	(c)	payment of cash as consideration for the acquisition of any Asset on normal commercial terms; 

  

	 	(d)	temporary application of funds not immediately required in the Company’s business for the purchase of investments or the realisation of such investments;

  

	 	(e)	exchange of Assets for other assets of a similar nature and value, or the sale of Assets on normal commercial terms for cash that is payable in full on completion of the sale and is
to be, and is, applied toward the purchase of similar Assets within six months; 

  

	 	(f)	disposals of Assets located outside the Republic; and 

  

	 	(g)	any disposal which the Facility Agent agrees in writing is a Permitted Disposal upon the approval of the Majority Lenders. 

  

 5 

	    	Permitted Merger means: 

  

	 	(a)	a merger of any Subsidiary (which has a positive consolidated net worth) of the Company into the Company, such that the Company acquires all the assets and liabilities of such
Subsidiary and the Company is the surviving legal entity, provided the Company’s post-merger consolidated net worth equals or exceeds the immediately preceding pre-merger consolidated net worth of the Company and that Subsidiary as determined
on the basis of accounting principles and practices consistent with the preparation of the Latest Accounts; 

  

	 	(b)	any other merger or corporate restructuring approved in advance in writing by the Facility Agent (acting on the instructions of the Majority Lenders); 

  

	 	(c)	a merger of any Subsidiary of United States Steel Corporation into the Company, such that the Company acquires all the assets and liabilities of such Subsidiary and the Company is
the surviving legal entity, provided the Company’s post-merger consolidated net worth equals or exceeds the immediately preceding pre-merger consolidated net worth of the Company and that Subsidiary as determined on the basis of accounting
principles and practices consistent with the preparation of the Latest Accounts. 

  

	    	Permitted Security Interest means any of the following: 

  

	 	(a)	Security Interests existing on the date of this Agreement and disclosed to the Facility Agent in writing; 

  

	 	(b)	any Security Interests incurred in connection with the acquisition of any asset, the assumption of any Security Interest previously existing on such acquired asset or any Security
Interest existing on any asset of any person when it becomes a Subsidiary of the Company in each case provided that the Indebtedness secured by such Security Interest does not exceed the fair market value of that asset as at the date of that
acquisition; 

  

	 	(c)	easements, rights-of-way, minor defects or irregularities in title and other similar encumbrances on real property having no material adverse effect on the then current use or value
of such real property, or on the then current conduct of the business of any member of the Group; 

  

	 	(d)	unexercised liens for taxes not being delinquent or contested in good faith by appropriate proceedings and for which reserves, adequate under USGAAP, are being maintained;

  

	 	(e)	any Security Interest on equipment of the Company arising solely under leases of such equipment that, in accordance with USGAAP, are required to be capitalised, provided that any
such Security Interest extends to no other property and secures no other Indebtedness and the Indebtedness secured by any such Security Interest does not exceed the fair market value of such equipment; 

  

	 	(f)	purchase money Security Interests on equipment acquired by the Company after the Completion Date incurred simultaneously with or within 45 days after the completion of installation
thereof solely to secure payment of all or part of the purchase price thereof provided that each such Security Interest secures no other Indebtedness and extends to no other property and the Indebtedness secured by any such Security Interest does
not exceed the fair market value of such equipment; 

  

	 	(g)	liens arising solely by operation of law (or by an agreement evidencing the same) in the ordinary course of Company’s business in respect of Indebtedness that either: (i) has
been due for less than 90 days or (ii) is being contested in good faith by appropriate means and for which reserves, adequate under USGAAP, are being maintained; 

  

 6 

	 	(h)	Security Interests arising out of title retention provisions in a supplier’s standard conditions of supply of goods acquired by Company in the ordinary course of its business;

  

	 	(i)	any Security Interest approved by the Facility Agent with the approval of the Majority Lenders; and 

  

	 	(j)	any renewal of or substitution for any Security Interest permitted under any preceding paragraph. 

  

	    	Pro Rata Share means on a particular date: 

  

	 	(a)	the proportion which a Lender’s share of the Loans (if any) bears to all the Loans; 

  

	 	(b)	if there is no Loan outstanding on that date, the proportion which its Commitment bears to the Total Commitments on that date; or 

  

	 	(c)	if the Total Commitments have been cancelled, the proportion which its Commitment bore to the Total Commitments immediately before being cancelled. 

  

	    	Rate Fixing Day means: 

  

	 	(a)	the second Business Day before the first day of a Term for a Loan denominated in any other currency (other than euro); or 

  

	 	(b)	the second TARGET Day before the first day of a Term for a Loan denominated in euro, 

  

	    	or such other day as the Facility Agent, in consultation with the Company, determines is generally treated as the rate fixing day by market practice in the relevant interbank
market. 

  

	    	Reference Banks means the Facility Agent, and any other bank or financial institution appointed as such by the Facility Agent under this Agreement. 

 

	    	Relevant Taxes means Taxes imposed or levied by the Republic (or any political subdivision or taxing authority of the Republic) or by any other jurisdiction from or through
which any payment is made by the Company under the Finance Document, but excludes Taxes imposed by the Republic which are so imposed as a direct consequence of the relevant Finance Party maintaining a permanent establishment in the Republic and of
that establishment being directly involved in any Loan. 

  

	    	Repeating Representations and Warranties means the representations and warranties that are deemed to be repeated under this Agreement. 

  

	    	Republic means the Slovak Republic. 

  

	    	Request means a request made by the Company for a Loan, substantially in the form of Schedule 2 (Form of Request). 

  

	    	Rollover Loan means one or more Loans: 

  

	 	(a)	to be made on the same day that a maturing Loan is due to be repaid; 

  

	 	(b)	the aggregate amount of which is equal to or less than the maturing Loan; and 

  

	 	(c)	in the same currency as the maturing Loan. 

  

 7 

	    	Screen Rate means: 

  

	 	(a)	for LIBOR, the British Bankers Association Interest Settlement Rate; and 

  

	 	(b)	for EURIBOR, the percentage rate per annum determined by the Banking Federation of the European Union, 

  

	    	for the relevant currency and Term displayed on the appropriate page of the Telerate screen. If the relevant page is replaced or the service ceases to be available, the Facility
Agent (after consultation with the Company and the Majority Lenders) may specify another page or service displaying the appropriate rate. 

  

	    	Security Interest means any mortgage, pledge, lien, charge (including a floating charge), assignment (whether conditional or otherwise), hypothecation or security interest or
any other agreement or arrangement having the effect of conferring security, or any other arrangement having a similar economic effect including (without limitation) total transfer, ‘flawed asset’, sale and repurchase, buyback or
conditional transfer arrangements. 

  

	    	Slovak Accounting Standards means the generally accepted accounting principles and practices in the Republic, in effect from time to time. 

  

	    	Subsidiary means an entity of which a person has direct or indirect control or owns directly or indirectly more than 50 per cent. of the voting capital or similar right of
ownership and control for this purpose means the power to direct the management and the policies of the entity whether through the ownership of share capital, contract or otherwise. 

  

	    	TARGET Day means a day on which the Trans-European Automated Real-time Gross Settlement Express Transfer payment system is open for the settlement of payments in euro.

  

	    	Tax means any tax, levy, impost, duty or other charge or withholding of a similar nature (including any penalty or interest related thereto). 

  

	    	Term means each period determined under this Agreement by reference to which interest on a Loan or an overdue amount is calculated. 

  

	    	Total Assets means the amount that is the aggregate of the Total Fixed Assets (less intangibles, other than externally produced and purchased software) and the amount shown
as the total of the current assets of the Group in the Latest Accounts. 

  

	    	Total Fixed Assets means the amount shown as the total of the Fixed Assets of the Group in the Latest Accounts. 

  

	    	Total Commitments means the aggregate of the Commitments of all the Lenders. 

  

	    	Transfer Certificate means a certificate in the form of Schedule 3 (Form of Transfer Certificate) with such amendments as the Facility Agent may approve or reasonably require
or any other form agreed between the Facility Agent and the Company in writing. 

  

	    	USGAAP means the generally accepted accounting principles and practices in the United States of America in effect from time to time. 

  

	    	Utilisation Date means each date on which the Facility is utilised. 

  

 8 

	1.2	Construction 

  

	(a)	In this Agreement, unless the contrary intention appears, a reference to: 

  

	 	(i)	an amendment includes a supplement, novation, restatement or re-enactment and amended is to be construed accordingly; 

  

	 	    	an authorisation includes an authorisation, consent, approval, resolution, licence, exemption, filing, registration or notarisation; 

  

	 	    	disposal means a sale, transfer, grant, lease or other disposal, whether voluntary or involuntary, and dispose will be construed accordingly; 

 

	 	    	indebtedness includes any obligation (whether incurred as principal or as surety) for the payment or repayment of money; 

  

	 	    	know your customer requirements are the identification checks that a Finance Party requests in order to meet its obligations under any applicable law or regulation to
identify a person who is (or is to become) its customer; 

  

	 	    	a person includes any individual, company, corporation, unincorporated association or body (including a partnership, trust, joint venture or consortium), government, state,
agency, organisation or other entity whether or not having separate legal personality; 

  

	 	    	a regulation includes any regulation, rule, official directive, request or guideline (whether or not having the force of law but, if not having the force of law, being of a
type with which any person to which it applies is accustomed to comply) of any governmental, inter-governmental or supranational body, agency, department or regulatory, self-regulatory or other authority or organisation; 

  

	 	(ii)	a currency is a reference to the lawful currency for the time being of the relevant country; 

  

	 	(iii)	a Default being outstanding means that it has not been remedied or waived; 

  

	 	(iv)	a provision of law is a reference to that provision as extended, applied, amended or re-enacted and includes any subordinate legislation; 

  

	 	(v)	a Clause, a Subclause or a Schedule is a reference to a clause or subclause of, or a schedule to, this Agreement; 

  

	 	(vi)	a Party or any other person includes its successors in title, permitted assigns and permitted transferees; 

  

	 	(vii)	a Finance Document or another document is a reference to that Finance Document or other document as amended; and 

  

	 	(viii)	a time of day is a reference to London Time. 

  

	(b)	Unless the contrary intention appears, a reference to a month or months is a reference to a period starting on one day in a calendar month and ending on the
numerically corresponding day in the next calendar month or the calendar month in which it is to end, except that: 

  

	 	(i)	if the numerically corresponding day is not a Business Day, the period will end on the next Business Day in that month (if there is one) or the preceding Business Day (if there is
not); 

  

 9 

	 	(ii)	if there is no numerically corresponding day in that month, that period will end on the last Business Day in that month; and 

  

	 	(iii)	notwithstanding sub-paragraph (i) above, a period that commences on the last Business Day of a month will end on the last Business Day in that calendar month.

  

					
	 (c)
	 	 (i)
	 	 Unless expressly provided to the contrary in a Finance Document, a person who is not a party to a Finance Document may not enforce any of its terms under the
Contracts (Rights of Third Parties) Act 1999.

  

	 	(ii)	Notwithstanding any term of any Finance Document, the consent of any third party is not required for any variation (including any release or compromise of any liability under) or
termination of that Finance Document. 

  

	(d)	A reference to a Party will not include that Party if it has ceased to be a Party under this Agreement. 

  

	(e)	Unless the contrary intention appears: 

  

	 	(i)	a term used in any other Finance Document or in any notice given in connection with any Finance Document has the same meaning in that Finance Document or notice as in this
Agreement; 

  

	 	(ii)	if there is an inconsistency between this Agreement and any other Finance Document, this Agreement will prevail; 

  

	 	(iii)	any non-payment obligations of the Company under the Finance Documents remain in force for so long as any payment obligation is or may be outstanding under the Finance Documents;
and 

  

	 	(iv)	the headings in this Agreement do not affect its interpretation. 

  

	2.	FACILITY 

  

	2.1	Revolving facility 

  

	    	Subject to the terms of this Agreement, the Lenders make available to the Company a revolving credit facility in an aggregate amount equal to the Total Commitments.

  

	2.2	Nature of a Finance Party’s rights and obligations 

  

	    	Unless otherwise agreed in writing by all the Finance Parties: 

  

	 	(a)	the obligations of a Finance Party under the Finance Documents are several. Failure of a Finance Party to perform its obligations does not affect the obligations of any other Party
under the Finance Documents. No Finance Party is responsible for the obligations of any other Finance Party under the Finance Documents; and 

  

	 	(b)	the rights of a Finance Party under the Finance Documents are separate and independent rights, and a debt arising under the Finance Documents to a Finance Party is a separate and
independent debt. A Finance Party may, except as otherwise stated in the Finance Documents and without prejudice to Clause 24, separately enforce those rights. 

  

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	3.	PURPOSE 

  

	3.1	Loans 

  

	    	Each Loan must be used by the Company for general business purposes. 

  

	3.2	No obligation to monitor 

  

	    	No Finance Party is bound to monitor or verify the utilisation of the Facility. 

  

	4.	CONDITIONS PRECEDENT 

  

	4.1	Conditions precedent documents 

  

	    	A Request may not be given by the Company until the Facility Agent has notified the Company and the Lenders that it has received all of the documents and evidence set out in
Schedule 4 (Conditions precedent documents) in form and substance satisfactory to the Facility Agent. The Facility Agent must give this notification as soon as reasonably practicable. 

  

	4.2	Further conditions precedent 

  

	    	The obligations of each Lender to advance its participation in any Loan are subject to the further conditions precedent that on both the date of the Request and the Utilisation Date
for that Loan: 

  

	 	(a)	the Repeating Representations and Warranties are correct in all material respects; and 

  

	 	(b)	no Default or, in the case of a Rollover Loan, no Event of Default, is outstanding or would result from the advance of the Loan. 

  

	4.3	Drawstop 

  

	    	A Request may not be made in any case where the Company is in default under the Existing Facility of any payment obligation (or payment obligations in aggregate) in an amount equal
to or in excess of USD100,000 or its equivalent in other currencies (a Drawstop Event). Following a Drawstop Event, no further Requests may be made until the Facility Agent notifies the Company in writing that it may submit a Request. The
Facility Agent shall so notify the Company promptly after the Facility Agent receives evidence reasonably satisfactory to it that such default or defaults: (i) are no longer continuing; or (ii) are waived in accordance with the ING Facility
Agreement; or (iii) a combination of (i) and (ii), whereby, following such waivers (if any), such default or defaults (if any) are in aggregate in an amount less than USD100,000 or its equivalent in other currencies. 

  

	4.4	Maximum number 

  

	    	Unless the Facility Agent agrees, a Request may not be given if, as a result, there would be more than five Loans outstanding. 

  

	5.	UTILISATION - LOANS 

  

	5.1	Giving of Requests 

  

	(a)	The Company may borrow a Loan by giving to the Facility Agent a duly completed Request. 

  

	(b)	Unless the Facility Agent otherwise agrees, the latest time for receipt by the Facility Agent of the first duly completed Request is 10.00 a.m. two Business Days before the Rate
Fixing Day for the proposed borrowing, and for subsequent proposed borrowings the latest time for receipt by the Facility Agent of the duly completed Request is 10.00 a.m. three Business Days before the Rate Fixing Day for the proposed borrowing.

  

 11 

	(c)	Each Request is irrevocable unless otherwise agreed by the Facility Agent upon the approval of the Majority Lenders. 

  

	5.2	Completion of Requests 

  

	    	A Request will not be regarded as having been duly completed unless: 

  

	 	(a)	the Utilisation Date is a Business Day falling within the Availability Period; and 

  

	 	(b)	the proposed currency, amount and Term comply with this Agreement. 

  

	 	Only	one Loan may be requested in a Request. 

  

	5.3	Amount of Loan 

  

	(a)	Except as provided below, the amount of the Loan must be a minimum of €10,000,000 and in integral multiples of €1,000,000 or its equivalent. 

  

	(b)	The amount of the Loan may also be the balance of the undrawn Total Commitments or such other amount as the Facility Agent or the Lenders may agree. 

  

	(c)	The amount of each Lender’s share of the Loan will be its Pro Rata Share on the proposed Utilisation Date. 

  

	5.4	Advance of Loan 

  

	(a)	The Facility Agent must promptly notify each Lender of the details of the requested Loan and the amount of its share in that Loan. 

  

	(b)	No Lender is obliged to participate in a Loan if, as a result 

  

	 	(i)	its share in the Loans would exceed its Commitment; or 

  

	 	(ii)	the Loans would exceed the Total Commitments. 

  

	(c)	If the conditions set out in this Agreement have been met, each Lender must make its share in the Loan available to the Facility Agent for the Company on the Utilisation Date and
the Facility Agent shall make the funds received from the Lenders available to the Company on the Utilisation Date. 

  

	6.	OPTIONAL CURRENCIES 

  

	6.1	General 

  

	    	In this Clause: 

  

	    	Facility Agent’s Spot Rate of Exchange means the Facility Agent’s spot rate of exchange for the purchase of Optional Currency in the London foreign exchange market
with euros at or about 11.00 a.m. on a particular day. 

  

	    	Original Euro Amount of a Loan or part of a Loan means: 

  

	 	(a)	if the Loan is denominated in euros, its amount; or 

  

 12 

	 	(b)	unless adjusted below, if the Loan is denominated in an Optional Currency for a Term, its equivalent in euros calculated on the basis of the Facility Agent’s Spot Rate of
Exchange one Business Day before the Rate Fixing Day for that Term. 

  

	    	Optional Currency means any currency (other than euros) in which a Loan may be denominated under this Agreement. 

  

	6.2	Selection 

  

	(a)	The Company must select the currency of a Loan in its Request. 

  

	(b)	The amount of a Loan requested in an Optional Currency must be a minimum amount of the equivalent of €10,000,000 and in integral multiples of €1,000,000 or its equivalent
in an Optional Currency. 

  

	(c)	Unless the Facility Agent otherwise agrees, the Loans may not be denominated at any one time in more than 2 currencies. 

  

	6.3	Conditions relating to Optional Currencies 

  

	(a)	A Loan may be denominated in an Optional Currency for a Term if: 

  

	 	(i)	that Optional Currency is readily available in the amount required and freely convertible into euros in the relevant interbank market on the Rate Fixing Day and the first day of
that Term; or 

  

	 	(ii)	that Optional Currency is United States Dollars. 

  

	(b)	If the Facility Agent has received a request from the Company for a currency to be approved as an Optional Currency, the Facility Agent must, within five Business Days, confirm to
the Company: 

  

	 	(i)	whether or not the Lenders have given their approval; and 

  

	 	(ii)	if approval has been given, the minimum amount (and, if required, integral multiples) for any Loan in that currency. 

  

	6.4	Revocation of currency 

  

	(a)	Notwithstanding any other term of this Agreement, if before 9.30 a.m. on any Rate Fixing Day the Facility Agent receives notice from a Lender that: 

  

	 	(i)	the Optional Currency requested is not readily available to it in the relevant interbank market in the amount and for the period required; or 

  

	 	(ii)	participating in a Loan in the proposed Optional Currency might contravene any law or regulation applicable to it, 

  

	    	the Facility Agent must give notice to the Company to that effect promptly and in any event before 11.00 a.m. on that day. 

  

	(b)	In this event: 

  

	 	(i)	that Lender must participate in the Loan in euros; and 

  

 13 

	 	(ii)	the share of that Lender in the Loan and any other similarly affected Lender(s) will be treated as a separate Loan denominated in euros during that Term. 

 

	(c)	Any part of a Loan treated as a separate Loan under this Subclause will not be taken into account for the purposes of any limit on the number of Loans or currencies outstanding at
any one time. 

  

	(d)	A Loan will still be treated as a Rollover Loan if it is not denominated in the same currency as the maturing Loan by reason only of the operation of this Subclause.

  

	6.5	Optional Currency equivalents 

  

	    	The equivalent in euros of a Loan or part of a Loan in an Optional Currency for the purposes of calculating: 

  

	 	(a)	whether any limit under this Agreement has been exceeded; 

  

	 	(b)	the amount of a Loan; 

  

	 	(c)	the share of a Lender in a Loan; 

  

	 	(d)	the amount of any repayment or prepayment of a Loan; or 

  

	 	(e)	the undrawn amount of a Lender’s Commitment, 

  

	    	is its euro Amount. 

  

	6.6	Notification 

  

	    	The Facility Agent must notify the Lenders and the Company of the relevant euro Amount (and the applicable Agent’s Spot Rate of Exchange) promptly after they are ascertained.

  

	7.	REPAYMENT 

  

	(a)	The Company must repay each Loan made to it in full on its Maturity Date. 

  

	(b)	Subject to the other terms of this Agreement, any amounts repaid under paragraph (a) above may be re-borrowed. 

  

	8.	PREPAYMENT AND CANCELLATION 

  

	8.1	Mandatory prepayment - illegality 

  

	    	If at any time: 

  

	 	(a)	it is necessary under the laws and constitution of the Republic: 

  

	 	(i)	in order to enable any Lender to enforce its rights under the Finance Documents; or 

  

	 	(ii)	by reason only of the execution, delivery and performance of this Agreement by any Lender, 

  

	 	    	that any Lender should be licensed, qualified or otherwise entitled to carry on business in the Republic; 

  

 14 

	 	(b)	a Lender is or will be deemed to be resident, domiciled or carrying on business in or subject to the laws of the Republic by reason only of the execution, delivery, performance
and/or enforcement of any Finance Document; 

  

	 	(c)	in any proceedings taken in the Republic in respect of any Finance Document or for the enforcement of any Finance Document, the choice of English law as the governing law of the
Finance Document will not be recognised; or 

  

	 	(d)	it is or becomes unlawful in any applicable jurisdiction for a Lender to give effect to any of its obligations as contemplated by this Agreement or to fund or maintain its
participation in any Loan, 

  

	    	and the occurrence of any of the foregoing causes a Lender (acting reasonably) to believe it is materially prejudiced thereby then: 

  

	 	(i)	the relevant Lender may notify the Company (through the Facility Agent) accordingly; and 

  

	 	(ii)	the Company shall forthwith prepay that Lender’s participation in all the Loans, together with all other amounts payable by it to that Lender under the Finance Documents and
the Commitment of that Lender shall forthwith be reduced to zero, 

  

	    	except that paragraphs (a) and (b) above do not apply to any Lender acting through its Facility Office or having a permanently established office or branch in the Republic.

  

	8.2	Mandatory prepayment - change of control 

  

	(a)	The Company shall, within ten days after the occurrence of a Change of Control notify such to the Facility Agent, and the Facility Agent shall promptly notify each Lender thereof.
Such notice shall describe in reasonable detail the facts and circumstances giving rise thereto and the date of such Change of Control and each Lender may, by notice to the Company and the Facility Agent given not later than fifty days after the
date of such Change of Control, declare any amounts payable by the Company under the Finance Documents for its account to be, and such amounts shall become, due and payable, in each case on the sixtieth day after the date of such Change of Control
(or if such day is not a Business Day, the succeeding day that is), without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Company. 

  

	(b)	For purposes of paragraph (a) above, the following terms have the following meanings: 

  

	    	A Change of Control shall occur if: 

  

	 	(i)	any person or group of persons shall have acquired beneficial ownership (within the meaning of Section 13(d) or 14(d) of the U.S. Securities Exchange Act of
1934, as amended, and the applicable rules and regulations thereunder), or shares of Voting Stock representing 35 per cent. or more of the Voting Power of United States Steel Corporation; 

  

	 	(ii)	during any period of twenty-five consecutive months, commencing before or after the date of this Agreement, individuals who at the beginning of such twenty-five month period were
directors of United States Steel Corporation (together with any replacement or additional directors whose election was recommended by the incumbent directors of United States Steel Corporation or who were elected by a majority of directors then in
office) cease to constitute a majority of the board of directors of United States Steel Corporation; or 

  

	 	(iii)	any person or group of related persons shall acquire all or substantially all of the assets of United States Steel Corporation, unless United States Steel Corporation shall have
merged or 

  

 15 

	 	    	consolidated with or transferred all or substantially all of its assets to another corporation and the surviving or successor or transferee corporation is no more leveraged than was
United States Steel Corporation) immediately prior to such event. For the purposes of this definition, the term leveraged when used with respect to any corporation shall mean the percentage represented by the total assets of that corporation
divided by its stockholders’ equity, in each case determined and as would be shown in a consolidated balance sheet of such corporation prepared in accordance with USGAAP. 

  

	    	Voting Power as applied to the stock of any corporation means the total voting power represented by all outstanding Voting Stock of such corporation.

  

	    	Voting Stock as applied to the stock of any corporation means stock of any class or classes (however designated) having ordinary voting power for the election of the
directors of such corporation, other than stock having such power only by reason of the happening of a contingency. 

  

	8.3	Voluntary prepayment 

  

	(a)	The Company may, by giving not less than five Business Days’ prior notice to the Facility Agent, prepay any Loan at any time in whole or in part. 

  

	(b)	A prepayment of part of a Loan must be in a minimum amount of €10,000,000 or its equivalent in an Optional Currency and an integral multiple of €1,000,000 or its
equivalent in an Optional Currency and is subject to Break Costs. 

  

	8.4	Automatic cancellation 

  

	    	The Commitment of each Lender will be automatically cancelled at the close of business on the last day of the Availability Period. 

  

	8.5	Voluntary cancellation 

  

	(a)	The Company may, by giving not less than five Business Days’ prior notice to the Facility Agent, cancel the unutilised amount of the Total Commitments in whole or in part.

  

	(b)	Partial cancellation of the Total Commitments must be in a minimum amount of €10,000,000 or its equivalent in an Optional Currency and an integral multiple of €1,000,000
or its equivalent in an Optional Currency. 

  

	(c)	Any cancellation in part will be applied against the Commitment of each Lender pro rata. 

  

	8.6	Prepayment and cancellation 

  

	(a)	If the Company is, or will be, required to pay to a Lender a Tax Payment or an Increased Cost, the Company may, while the requirement continues, give notice to the Facility Agent
requesting prepayment and cancellation in respect of that Lender. 

  

	(b)	After notification under paragraph (a) above: 

  

	 	(i)	the Company must repay or prepay that Lender’s share in each Loan on the date specified in paragraph (c) below; and 

  

	 	(ii)	the Commitment of that Lender will be immediately cancelled. 

  

	(c)	The date for repayment or prepayment of a Lender’s share in a Loan will be the last day of the Term for that Loan or, if earlier, the date specified by the Company in its
notification. 

  

 16 

	8.7	Re-borrowing of Loans 

  

	    	Any voluntary prepayment of a Loan may be re-borrowed on the terms of this Agreement. Any mandatory or involuntary prepayment of a Loan may not be re-borrowed.

  

	8.8	Miscellaneous provisions 

  

	(a)	Any notice of prepayment and/or cancellation under this Agreement is irrevocable and must specify the relevant date(s) and the affected Loans and Commitments. The Facility Agent
must notify the Lenders promptly of receipt of any such notice. 

  

	(b)	All prepayments under this Agreement must be made with accrued interest on the amount prepaid. No premium or penalty is payable in respect of any prepayment except for Break Costs.

  

	(c)	The Majority Lenders may agree a shorter notice period for a voluntary prepayment or a voluntary cancellation. 

  

	(d)	No prepayment or cancellation is allowed except in accordance with the express terms of this Agreement. 

  

	(e)	No amount of the Total Commitments cancelled under this Agreement may subsequently be reinstated. 

  

	9.	INTEREST 

  

	9.1	Calculation of interest 

  

	    	The rate of interest on each Loan for each Term is the percentage rate per annum equal to the aggregate of the applicable: 

  

	 	(a)	Margin; 

  

	 	(b)	EURIBOR or, in the case of a Loan in an Optional Currency, LIBOR; and 

  

	 	(c)	Mandatory Cost. 

  

	9.2	Payment of interest 

  

	    	Except where it is provided to the contrary in this Agreement, the Company must pay accrued interest on each Loan made to it on the last day of each applicable Term and also, if the
Term is longer than six months, on the dates falling at six-month intervals after the first day of that Term. 

  

	9.3	Interest on overdue amounts 

  

	(a)	If the Company fails to pay any amount payable by it under the Finance Documents, it must immediately on demand by the Facility Agent pay interest on the overdue amount from its due
date up to the date of actual payment, both before, and after judgement. 

  

	(b)	Interest on an overdue amount is payable at a rate determined by the Facility Agent to be 1 per cent. per annum above the rate which would have been payable if the overdue amount
had, during the period of non-payment, constituted a Loan in the currency of the overdue amount. For this purpose, the Facility Agent may (acting reasonably): 

  

	 	(i)	select successive Terms of any duration of up to three months (an Interest Period); and 

  

 17 

	 	(ii)	determine the appropriate Rate Fixing Day for that Term. 

  

	(c)	Notwithstanding paragraph (b) above, if the overdue amount is a principal amount of a Loan and becomes due and payable prior to the last day of its current Term, then:

  

	 	(i)	the first Term for that overdue amount will be the unexpired portion of that Term; and 

  

	 	(ii)	the rate of interest on the overdue amount for that first Term will be 1 per cent. per annum above the rate then payable on that Loan. 

  

	    	After the expiry of the first Term for that overdue amount, the rate on the overdue amount will be calculated in accordance with paragraph (b) above. 

  

	(d)	Interest (if unpaid) on an overdue amount will be compounded with that overdue amount at the end of each of its Terms but will remain immediately due and payable.

  

	9.4	Notification of rates of interest 

  

	    	The Facility Agent must promptly notify each relevant Party of the determination of a rate of interest under this Agreement. 

  

	10.	TERMS 

  

	10.1	Selection 

  

	(a)	Each Loan has one Term only. 

  

	(b)	The Company must select the Term for a Loan in the relevant Request. 

  

	(c)	Subject to the following provisions of this Clause, each Term for a Loan will be one, two, three or six months or any other period agreed in writing by the Lenders acting
unanimously. 

  

	10.2	No overrunning the Final Maturity Date 

  

	    	If a Term would otherwise overrun the Final Maturity Date, it will be shortened so that it ends on the Final Maturity Date in which case the Company will have no obligation to pay
Break costs or other costs arising from the shortening. 

  

	10.3	Notification 

  

	    	The Facility Agent must notify the Company and the Lenders of the duration of each Term promptly after ascertaining its duration. 

  

	11.	MARKET DISRUPTION 

  

	11.1	Failure of a Reference Bank to supply a rate 

  

	    	If LIBOR or EURIBOR is to be calculated by reference to the Reference Banks but a Reference Bank does not supply a rate by noon on a Rate Fixing Day, the applicable LIBOR or EURIBOR
will, subject as provided below, be calculated on the basis of the rates of the remaining Reference Banks. 

  

	11.2	Market disruption 

  

	(a)	In this Clause, each of the following events is a market disruption event: 

  

	 	(i)	LIBOR EURIBOR is to be calculated by reference to the Reference Banks but no, or only one, Reference Bank supplies a rate by noon on the Rate Fixing Day; or

  

 18 

	 	(ii)	the Facility Agent receives by close of business on the Rate Fixing Day notification from Lenders whose shares in the relevant Loan exceed 30 per cent. of that Loan that the cost to
them of obtaining matching deposits in the relevant interbank market is in excess of LIBOR or EURIBOR for the relevant Term. 

  

	(b)	The Facility Agent must promptly notify the Company and the Lenders of a market disruption event. 

  

	(c)	After notification under paragraph (b) above, the rate of interest on each Lender’s share in the affected Loan for the relevant Term will be the aggregate of the applicable:

  

	 	(i)	Margin; 

  

	 	(ii)	rate notified to the Facility Agent by that Lender as soon as practicable to be that which expresses as a percentage rate per annum the cost to that Lender of funding its share in
that Loan from whatever source it may reasonably select; and 

  

	 	(iii)	Mandatory Cost. 

  

	11.3	Alternative basis of interest or funding 

  

	(a)	If a market disruption event occurs and the Facility Agent or the Company so requires, the Company and the Facility Agent must enter into negotiations for a period of not more than
30 days with a view to agreeing an alternative basis for determining the rate of interest and/or funding for the affected Loan and any future Loan. 

  

	(b)	Any alternative basis agreed will be, with the prior consent of all the Lenders, binding on the Company and the Lenders. 

  

	12.	TAXES 

  

	12.1	Gross-up 

  

	    	All payments by the Company under the Finance Documents shall be made without any deduction and free and clear of and without deduction for or on account of any Taxes, except to the
extent that the Company is required by law to make payment subject to any Taxes. If any Relevant Tax or amounts in respect of any Relevant Tax must be deducted from any amounts payable or paid by the Company, or paid or payable by the Facility Agent
to a Lender, under the Finance Documents, the Company shall, subject to Clause 12.4 (Exception to the gross-up), pay such additional amounts as may be necessary to ensure that the relevant Lender receives a net amount equal to the full amount which
it would have received had payment not been made subject to Relevant Tax. 

  

	12.2	Tax receipts 

  

	    	All Taxes required by law to be deducted or withheld by the Company from any amounts paid or payable under the Finance Documents shall be paid by the Company when due and the
Company shall, within 15 days of receipt of evidence of the payment being made, deliver the same to the Facility Agent. 

  

 19 

	12.3	Reimbursement of tax credit 

  

	(a)	If: 

  

	 	(i)	the Company pays any additional amount (a Tax Payment) under Clause 12.1 (Gross-up) for the account of a Lender; and 

  

	 	(ii)	the Lender effectively obtains, or could have effectively obtained by taking reasonable action (in which case the Lender shall be treated as actually having obtained), a refund of
Tax, or credit against Tax, by reason of that Tax Payment (a Tax Credit), 

  

	    	then the Lender shall reimburse to the Company such amount as the Lender shall reasonably determine to be the proportion of the Tax Credit as will leave the Lender (after that
reimbursement) in no better or worse position than it would have been in if the Tax Payment had not been required. Notwithstanding sub-clause (ii) above, a Lender may choose not to make or to limit the amount or alter the timing of any Tax Credit if
to do otherwise would result in a material adverse effect to the Lender or on its relationship with the relevant Tax authority. Upon reasonable request from the Company, the Lender shall provide the Company with a certification concerning whether or
not a Tax Credit was obtained or was attempted to be obtained by the Lender as well as reasonable detail concerning the amount of the Tax Credit. No Finance Party is obliged to disclose any information regarding its Tax affairs or computations to
any other person. 

  

	12.4	Exception to the gross-up 

  

	    	The Company is not required to pay an additional amount for the account of a Lender under Clause 12.1 (Gross-up): 

  

	 	(i)	to the extent that the obligation to pay the additional amount would not have arisen but for the failure by that Lender to provide (within a reasonable period after being requested
to do so by the Company or the Facility Agent and at the cost of the Company) any form, certificate or other documentation: 

  

	 	(A)	the provision of which would have relieved (in whole or in part) the Company from the relevant withholding obligation; and 

  

	 	(B)	which it is fully within the power of the Lender to provide; 

  

	 	(ii)	if that Lender has not complied with its obligations under Clause 12.5(a) (Tax confirmation) for a period of 90 days from the date that Lender became aware that it could not give
the confirmation referred to in Clause 12.5(a) (Tax confirmation); or 

  

	 	(iii)	the confirmation provided by that Lender under Clause 12.5(a) (Tax confirmation) is incorrect when made. 

  

	12.5	Tax confirmation 

  

	(a)	Each Lender (other than a Lender with its Facility Office situated in the Republic) confirms to the Company that on the date of this Agreement (or if it only subsequently becomes a
Party to this Agreement, on that date) under the terms of a double taxation treaty between the jurisdiction in which that Lender is resident and the Republic payments due to it under the Finance Documents may be made without deduction or withholding
on account of any Tax imposed or levied by the Republic (or any political subdivision or taxing authority of the Republic) under the laws of the Republic, as interpreted and applied at that time. 

  

 20 

	(b)	If a Lender becomes aware that it could not, on any particular day, give the confirmation referred to in paragraph (a) above, it shall promptly but in any event within 90 days,
notify such to the Company (through the Facility Agent). 

  

	12.6	Stamp taxes 

  

	    	The Company must pay and indemnify each Finance Party against any stamp duty, registration or other similar Tax payable in connection with the entry into, performance or enforcement
of any Finance Document, except for any such Tax payable in connection with the entry into of a Transfer Certificate. 

  

	12.7	Value added taxes 

  

	(a)	Any amount (including costs, fees and expenses) payable under a Finance Document by the Company is exclusive of any value added tax or similar tax that might be chargeable in
connection with that amount. If any such value added tax or similar tax is chargeable, the Company must pay (in addition to and at the same time as it pays that amount) an amount equal to the amount of that value added tax or similar tax.

  

	(b)	The obligation of the Company under paragraph (a) above will be reduced to the extent that the Finance Party is entitled to repayment or a credit in respect of the relevant value
added tax or similar tax. 

  

	13.	INCREASED COSTS 

  

	13.1	Increased Costs 

  

	    	Except as provided below in this Clause, the Company must pay to a Finance Party the amount of any Increased Cost incurred by that Finance Party or its Affiliates as a result of:

  

	 	(a)	the introduction of, or any change in, or any change in the interpretation or application of, any law or regulation; or 

  

	 	(b)	compliance with any law or regulation made after the date of this Agreement. 

  

	    	Each Finance Party agrees to notify the Company promptly upon becoming aware that this Clause 13.1 applies. 

  

	13.2	Exceptions 

  

	    	The Company need not make any payment for an Increased Cost to the extent that the Increased Cost is: 

  

	 	(a)	compensated for under another Clause, or would have been but for an exception to that Clause; 

  

	 	(b)	a tax on the overall net income of a Finance Party or its Affiliate; 

  

	 	(c)	attributable to a Finance Party or its Holding Company wilfully failing to comply with any law or regulation; 

  

	 	(d)	on failure of the relevant Finance Party to notify the Company of that increased cost within 45 days of becoming aware of it. 

  

 21 

	13.3	Claims 

  

	    	A Finance Party intending to make a claim for an Increased Cost must notify the Facility Agent promptly of the circumstances giving rise to, and the amount of, the claim, following
which the Facility Agent will promptly notify the Company of the circumstances giving rise to, and the amount of, the claim. 

  

	14.	MITIGATION 

  

	    	If circumstances arise which would, or would on the giving of notice, result in: 

  

	 	(a)	any additional amounts becoming payable under Clause 12 (Taxes); or 

  

	 	(b)	any amount becoming payable under Clause 13 (Increased costs); or 

  

	 	(c)	any prepayment or cancellation under Clause 8 (Prepayment and Cancellation), 

  

	    	then, without limiting the obligations of the Company under this Agreement and without prejudice to the terms of Clauses 12 (Taxes), 13 (Increased costs) and 8 (Prepayment and
Cancellation), the relevant Lender shall, in consultation with the Company, take such reasonable steps as may be open to it to mitigate or remove the relevant circumstance, including (without limitation) changing its Facility Office to one in
another jurisdiction or the transfer of its rights and obligations under this Agreement to another person, unless to do so might (in the reasonable opinion of the Lender) be materially prejudicial to it. 

  

	15.	PAYMENTS 

  

	15.1	Place 

  

	    	Unless a Finance Document specifies that payments under it are to be made in another manner, all payments by a Party (other than the Facility Agent) under the Finance Documents must
be made to the Facility Agent to its account at such office or bank: 

  

	 	(a)	in the principal financial centre of the country of the relevant currency; or 

  

	 	(b)	in the case of euro, in the principal financial centre of a Participating Member State or London, 

  

	    	as it may notify to that Party for this purpose by not less than 10 Business Days’ prior notice. 

  

	15.2	Funds 

  

	    	Payments under the Finance Documents to the Facility Agent must be made for value on the due date at such times and in such funds as the Facility Agent may acting reasonably specify
to the Party concerned as being customary at the time for the settlement of transactions in the relevant currency in the place for payment. 

  

	15.3	Currency 

  

	(a)	Unless a Finance Document specifies that payments under it are to be made in a different manner, the currency of each amount payable under the Finance Documents is determined under
this Clause. 

  

	(b)	Interest is payable in the currency in which the relevant amount in respect of which it is payable is denominated. 

  

 22 

	(c)	A repayment or prepayment of any principal amount is payable in the currency in which that principal amount is denominated on its due date. 

  

	(d)	Amounts payable in respect of costs and expenses are payable in the currency in which they are incurred. 

  

	(e)	Each other amount payable under the Finance Documents is payable in euro. 

  

	15.4	Distribution 

  

	(a)	Each payment received by the Facility Agent under the Finance Documents for another Party must, except as provided below, be made available by the Facility Agent to that Party by
payment on the date and in the currency and funds of receipt to its account with such office or bank: 

  

	 	(i)	in the principal financial centre of the country of the relevant currency; or 

  

	 	(ii)	in the case of euro, in the principal financial centre of a Participating Member State or London, 

  

	    	as it may notify to the Facility Agent for this purpose by not less than 4 Business Days’ prior notice. 

  

	(b)	The Facility Agent may apply any amount received by it for the Company in or towards payment (as soon as practicable after receipt) of any amount due from the Company under the
Finance Documents or in or towards the purchase of any amount of any currency to be so applied. 

  

	(c)	Where a sum is paid to the Facility Agent under this Agreement for another Party, the Facility Agent is not obliged to pay that sum to that Party until it has established that it
has actually received it. However, the Facility Agent may assume that the sum has been paid to it, and, in reliance on that assumption, make available to that Party a corresponding amount. If it transpires that the sum has not been received by the
Facility Agent, that Party must immediately on demand by the Facility Agent refund any corresponding amount made available to it together with interest on that amount from the date of payment to the date of receipt by the Facility Agent at a rate
calculated by the Facility Agent to reflect its cost of funds. 

  

	15.5	No set-off or counterclaim 

  

	    	All payments made by the Company under the Finance Documents must be made without (and free and clear of any deduction for) set-off or counterclaim. 

  

	15.6	Business Days 

  

	(a)	If a payment under the Finance Documents is due on a day that is not a Business Day, the due date for that payment will instead be the next Business Day in the same calendar month
(if there is one) or the preceding Business Day (if there is not) or whatever day the Facility Agent determines is market practice. 

  

	(b)	During any extension of the due date for payment of any principal under this Agreement interest is payable on that principal at the rate payable on the original due date.

  

	15.7	Partial payments 

  

	(a)	If any Administrative Party receives a payment insufficient to discharge all the amounts then due and payable by the Company under the Finance Documents, the Administrative Party
must apply that payment towards the obligations of the Company under the Finance Documents in the following order: 

  

	 	(i)	first, in or towards payment pro rata of any unpaid fees, costs and expenses of the Facility Agent, and then any other Administrative Party under the Finance Documents;

  

 23 

	 	(ii)	secondly, in or towards payment pro rata of any accrued interest or fee due but unpaid under this Agreement; 

  

	 	(iii)	thirdly, in or towards payment pro rata of any principal amount due but unpaid under this Agreement; and 

  

	 	(iv)	fourthly, in or towards payment pro rata of any other sum due but unpaid under the Finance Documents. 

  

	(b)	The Facility Agent must, if so directed by all the Lenders, vary the order set out in sub-paragraphs (a)(ii) to (iv) above. 

  

	(c)	This Subclause will override any appropriation made by the Company. 

  

	15.8	Timing of payments 

  

	    	If a Finance Document does not provide for when a particular payment is due, that payment will be due 30 days after receipt by the Company of a claim (accompanied by, if available,
separate invoices) signed on behalf of the relevant Finance Party specifying the amount due, the provision of the Finance Document under which the Company’s liability to pay arises and setting out in reasonable detail a calculation of the
amount due. 

  

	16.	REPRESENTATIONS AND WARRANTIES 

  

	16.1	Representations and warranties 

  

	    	The Company makes the representations and warranties set out in this Clause 16 (Representations and warranties) to each Finance Party. 

  

	16.2	Status 

  

	(a)	It is a limited liability company or, in the case of a Material Subsidiary, a company limited by shares or a limited liability company, in each case duly organised and validly
existing under: 

  

	 	(i)	the laws of the Republic; or 

  

	 	(ii)	in the case of a Material Subsidiary operating and carrying on business in another jurisdiction, in that jurisdiction. 

  

	(b)	It has the power to own its property and Assets. 

  

	(c)	It has power to carry on its business as it is now being conducted. 

  

	16.3	Powers and authority 

  

	    	It has the power to enter into and perform, and has taken all necessary action to authorise, the execution, delivery and performance of the Finance Documents to which it is or will
be a party and the transactions contemplated by those Finance Documents. 

  

 24 

	16.4	Legal validity 

  

	    	Each Finance Document to which it is a party: 

  

	 	(a)	constitutes, or when executed will constitute, its legal, valid and binding obligation enforceable in accordance with its terms; and 

  

	 	(b)	is in proper form for its enforcement in the Republic if accompanied by a certified Slovak translation; 

  

	    	save that enforcement of the Company’s obligations under the Finance Documents may be affected by insolvency, bankruptcy and similar laws affecting the rights of creditors
generally. 

  

	16.5	Non-conflict 

  

	    	The execution, delivery and performance of the Finance Documents to which it is or will be a party will not: 

  

	 	(a)	violate in any respect any provision of: 

  

	 	(i)	any applicable law or regulation of the Republic or any order of any governmental, judicial or public body or authority in the Republic; or 

  

	 	(ii)	the laws and documents incorporating and constituting the Company; or 

  

	 	(iii)	any mortgage, agreement or other financial undertaking or instrument to which the Company is a party or which is binding upon or any Assets of the Company; or

  

	 	(b)	to the best of the Company’s knowledge result in the creation or imposition of any Security Interest on any Assets of the Company pursuant to the provisions of any mortgage,
agreement or other undertaking or instrument to which the Company is a party or which is binding upon it. 

  

	16.6	No default 

  

	    	No Default is outstanding. 

  

	16.7	Authorisations 

  

	    	All authorisations and other requirements of governmental, judicial and public bodies and authorities required by any member of the Group or advisable in connection with the
execution, delivery, performance, validity and enforceability of the Finance Documents have been obtained or effected and are in full force and effect. 

  

	16.8	Litigation 

  

	    	Except to the extent as disclosed in writing to the Facility Agent: 

  

	 	(a)	there is no litigation, arbitration or administrative proceedings relating to any member of the Group that is material to the Company, the same are not current or pending or, to the
knowledge of the Company, threatened; and 

  

	 	(b)	no litigation, arbitration or administrative proceedings are current or pending or, to the knowledge of the Company, threatened, which would reasonably be expected to have a
material adverse effect on the ability of the Company to perform its obligations under the Finance Documents. 

  

 25 

	16.9	Title 

  

	    	Except to the extent disclosed in writing to the Facility Agent, it has valid leases or good and marketable title to all its material Fixed Assets which are reflected in the most
recent audited consolidated financial statements of the Group delivered to the Facility Agent under Clause 17.2 (Financial Information), subject to any disposal permitted under Clause 17.10 (Disposals) and to no Security Interest securing
Financial Indebtedness over such Fixed Assets, except any Permitted Security Interest. 

  

	16.10	Borrowing limits 

  

	    	The borrowing of the full amount available under this Agreement will not cause any limit on its borrowing or other powers or on the exercise of such powers by its board of directors
whether imposed by the Company’s Articles of Association or similar document or by statute, regulation, or agreement, to be exceeded. 

  

	16.11	Immunity 

  

	    	Subject to any general provisions of law with respect to immunity of certain assets from attachment and from execution, referred to in any legal opinion required under this
Agreement, it is not entitled to claim immunity from suit, attachment, enforcement or other legal process in the Republic. 

  

	16.12	Solvency 

  

	(a)	It is not insolvent, nor do its liabilities exceed its assets; and 

  

	(b)	it has not taken any action nor, so far as it is aware have any steps been taken or legal proceedings been started or threatened against it for winding-up, dissolution,
reorganisation, or bankruptcy the enforcement of any encumbrance over its assets or for the appointment of a receiver, administrative receiver or administrator, trustee or similar officer of it or of any or all of its assets or revenues.

  

	16.13	Information 

  

	(a)	All factual information provided in writing by an officer of any member of the Group, United States Steel Corporation or any Subsidiary of United States Steel Corporation to the
Finance Parties in connection with the Finance Documents was true and accurate in all material respects as at its date or (if appropriate) as at the date (if any) at which it is stated to be given by that person. 

  

	(b)	Nothing was omitted from the information referred to in paragraph (a) above which, if disclosed, would make that information untrue or misleading in any material respect.

  

	(c)	Nothing has occurred since the date of the information referred to in paragraph (a) above which, if disclosed, would make that information untrue or mislead in any material
respect. 

  

	16.14	No notarial deed 

  

	    	No member of the Group has created any notarial deed (as referred to in section 41.2 of the Slovak Act No. 233/1995 Coll. and section 274(e) of the Slovak Act No. 99/1963
Coll., as amended respectively) in relation to any Financial Indebtedness. 

  

 26 

	16.15	Financial statements 

  

	    	Its audited consolidated financial statements most recently delivered to the Facility Agent (which, at the date of this Agreement, are the Financial Statements dated
31 December 2004): 

  

	 	(a)	have been prepared in accordance with accounting principles and practices generally accepted in its jurisdiction of incorporation, consistently applied; and

  

	 	(b)	fairly represent its consolidated financial condition as at the date to which they were drawn up, 

  

	    	except, in each case, as disclosed to the contrary in those financial statements. 

  

	16.16	Slovak Banking Act 

  

	 	(a)	It represents that it is not a person having any special relationship (osobitný vzt’ah) as defined in the Slovak Act No. 483/2001 Coll., as amended, to any
Lender. 

  

	 	(b)	When making any payment under or in connection with any Finance Document, it will use solely the funds owned by it. 

  

	 	(c)	It is entering into each Finance Document as a principal and not as agent and, in its own name on its own account. 

  

	16.17	ERISA 

  

	    	Each Plan of the Company and of each ERISA Affiliate of the Company complies in all material respects with all applicable requirements of law and regulation. No Reportable Event has
occurred with respect to any Plan, and no steps have been taken to terminate any Plan. Neither the Borrower nor any of its ERISA Affiliates has had a complete or partial withdrawal from any Multiemployer Plan or initiated any steps to do so.

  

	16.18	Margin Regulations 

  

	    	Neither the Company nor any of its Subsidiaries is engaged principally, or as one of its important activities, in the business of extending credit for the purpose of purchasing or
carrying Margin Stock. 

  

	16.19	Times for making representations and warranties 

  

	(a)	The representations and warranties set out in this Clause are made by the Company on the date of this Agreement. 

  

	(b)	Unless a representation and warranty is expressed to be given at a specific date, each representation and warranty is deemed to be repeated by the Company on the date of each
Request and the first day of each Term except that the representations and warranties in Clause 16.5(a)(iii) and (b) (Non-conflict), 16.8(a) (Litigation) and 16.17 (ERISA) shall not be repeated by the Company. 

  

	(c)	When a representation and warranty is repeated, it is applied to the circumstances existing at the time of repetition. 

  

 27 

	17.	UNDERTAKINGS 

  

	17.1	Duration 

  

	    	The undertakings in this Clause 17 (Undertakings) remain in force from the date of this Agreement for so long as any amount is or may be outstanding under any Finance Document.

  

	17.2	Financial Information 

  

	    	The Company shall furnish to the Facility Agent in sufficient copies for all Lenders: 

  

	 	(a)	the audited unconsolidated financial statements of the Company including the report of independent auditors and accompanying notes for each of its financial years as soon as
practicable (and in any event within 120 days after the end of each of its financial years), 

  
 and 
  
 the audited consolidated financial statements of the Group including the report of independent auditors and accompanying notes for each of its financial
years as soon as practicable (and in any event within 30 days from the date when the consolidated financial statements are required to be prepared by law), 
  
 such financial statements: 
  

	 	(i)	to be prepared in accordance with Slovak Accounting Standards consistently applied; 

  

	 	(ii)	to be audited by an internationally recognised firm of accountants; 

  

	 	(iii)	to give a true and fair view of the financial condition of the Group and the result of its operations for the period ended on the date to which such financial statements were
prepared; and 

  

	 	(iv)	signed by two senior officers of the Company; 

  

	 	(b)	the unaudited consolidated financial statements of the Group to be prepared in accordance with USGAAP consistently applied, semi-annually, i.e.: 

  

	 	(i)	for each of its financial years as soon as practicable (and in any event within 120 days after the end of each of its financial years) certified by the chief financial officer (or
equivalent) of the Company; and 

  

	 	(ii)	for the first half of each of its financial years as soon as practicable (and in any event within 60 days after the end of the first half of each of its financial years) certified
by the chief financial officer (or equivalent) of the Company; and 

  

	 	(c)	together with the financial statements referred to in paragraph (a) above, a certificate of the Company signed by the chief financial officer (or equivalent) of the Company
certifying: 

  

	 	(i)	that no Event of Default has occurred (or, if it has, specifying it and the steps being taken to remedy it); and 

  

	 	(ii)	the identity of its Material Subsidiaries. 

  

 28 

	17.3	Information - miscellaneous 

  

	(a)	The Company shall furnish to the Facility Agent from time to time with reasonable promptness, such further information regarding the business and financial condition of the Company
as the Facility Agent may reasonably request. 

  

	(b)	The Company shall promptly notify the Facility Agent of any material business or financial event, including without limitation, any litigation, arbitration, administrative or other
proceedings being commenced, which would reasonably be expected adversely to affect its ability to perform its obligations under the Finance Documents. 

  

	(c)	Subject to paragraph (d) below, The Company must promptly on the request of any Finance Party supply to that Finance Party any documentation or other evidence which is
reasonably requested by that Finance Party (whether for itself, on behalf of any Finance Party or any prospective new Lender) to enable a Finance Party or prospective new Lender to carry out and be satisfied with the results of all applicable know
your customer requirements. 

  

	(d)	The Company is only required to supply any information under paragraph (a) above, if the necessary information is not already available to the relevant Finance Party and the
requirement arises as a result of: 

  

	 	(i)	the introduction of any change in (or in the interpretation, administration or application of) any law or regulation made after the date of this Agreement; 

 

	 	(ii)	any change in the status of the Company or any change in the composition of shareholders of the Company after the date of this Agreement; or 

  

	 	(iii)	a proposed assignment or transfer by the Lender of any of its rights and/or obligations under this Agreement to a person that is not a Lender before that assignment or transfer.

  

	(e)	Each Lender must promptly on the request of the Facility Agent supply to the Facility Agent any documentation or other evidence which is reasonably required by the Facility Agent to
carry out and be satisfied with the results of all know your customer requirements. 

  

	(f)	The Company shall promptly, but no later than on 30th day after the date of the Agreement, deliver to the Facility Agent a copy of a resolution of the executives of the Company
approving the terms of, and the transactions contemplated by, this Agreement, certified by an Authorised Signatory of the Company to be true, correct and complete and in full force and effect at its date. 

  

	17.4	Authorisations 

  
 The Company shall obtain and promptly renew from time to time all authorisations as may be required under any applicable law or regulation to enable it to
perform its obligations under the Finance Documents, or required for the validity or enforceability of any Finance Document, shall comply with the terms of the same and will ensure the availability and transferability of sufficient foreign exchange
to enable it to comply with its obligations under the Finance Documents. 
  

	17.5	Corporate existence 

  

	(a)	The Company shall maintain its corporate existence and its right to carry on its operations and will acquire, maintain and renew all rights, licences, concessions, contracts,
powers, privileges, leases, lands, sanctions and franchises necessary or useful for the conduct of its operations except, in each case, where the failure to do so would not reasonably be expected to materially adversely affect the Company’s
ability to perform its obligations under the Finance Documents. 

  

 29 

	(b)	The Company shall not: 

  

	 	(i)	change its name; or 

  

	 	(ii)	change its financial year end from 31st December. 

  

	17.6	Insurance 

  

	    	The Company shall, and shall procure that each Material Subsidiary shall, effect and maintain such insurance over and in respect of its Assets and business covering such risks and
in such amounts as United States Steel Corporation maintains from time to time with respect to other similar steel-making facilities owned by United States Steel Corporation, subject to such deductibles and other forms of self-insurance as from time
to time are generally applicable to such other steel-making facilities provided such coverage is available to the Company on similar or better terms. 

  

	17.7	Notification of Default 

  

	    	The Company shall notify the Facility Agent of any Default promptly upon becoming aware of its occurrence. 

  

	17.8	Pari passu 

  

	    	The Company shall procure that its obligations under the Finance Documents do and will constitute its direct, unconditional, unsecured, unsubordinated and general obligations and do
and will rank at least pari passu with all other present and future unsecured and unsubordinated Financial Indebtedness issued, created or assumed by it other than amounts which are afforded priority by applicable law.

  

	17.9	Negative pledge 

  

	    	The Company shall not, and shall procure that none of its Material Subsidiaries shall, without the prior consent of the Facility Agent in writing, create, assume or permit to exist
any Security Interest over all or any of its Assets to secure Financial Indebtedness other than a Permitted Security Interest. 

  

	17.10	Disposals 

  

	(a)	Except with the prior consent of the Facility Agent in writing or as provided in paragraph (b) below, the Company shall not, and shall procure that none of its Material
Subsidiaries shall, either in a single transaction or in a series of transactions whether related or not and whether voluntary or involuntary, sell, transfer, grant or lease or otherwise dispose of (in each case whether conditionally or otherwise)
any of its Fixed Assets other than Permitted Disposals. 

  

	(b)	Notwithstanding paragraph (a) above, in any financial year of the Company, Fixed Assets having an aggregate book value in, or included for the purposes of, the Latest
Accounts, not exceeding the aggregate of: 

  

	 	(i)	15 per cent. of all Fixed Assets (as shown in or included for the purposes of the Latest Accounts); and 

  

	 	(ii)	any amount of the 15 per cent. not disposed of in the immediately preceding financial year of the Company, 

  

 30 

	    	may be disposed of where the disposal is a sale on arm’s length commercial terms, provided that the cumulative totals of the percentage figures referred to in each of
sub-paragraphs (i) and (ii) above, until the Final Maturity Date, do not exceed 50 per cent. of all Fixed Assets. 

  

	17.11	Mergers 

  

	    	The Company shall not, without the prior consent of the Facility Agent in writing, enter into any merger or other arrangement of a similar nature other than a Permitted Merger.

  

	17.12	Change of business 

  

	    	Except with the prior consent of the Facility Agent in writing, the Company shall not and shall procure that none of its Material Subsidiaries shall, make or threaten to make any
substantial change in its business as conducted on the date of this Agreement. 

  

	17.13	Environmental compliance 

  

	    	Except to the extent disclosed in writing to the Facility Agent, the Company shall, and shall procure that each Material Subsidiary shall, comply with applicable Environmental Law
except where failure to do so would not reasonably be expected to have a material adverse effect on the ability of the Company to perform its obligations under the Finance Documents. For this purpose, Environmental Law means:

  

	 	(a)	all environmental authorisations applicable to the Company and each Material Subsidiary; and 

  

	 	(b)	all other applicable environmental laws, rules and regulations concerning the protection of human health or the environment or the transportation of any substance capable of causing
harm to man or any other living organism or the environment or public health or welfare, including, without limitation, hazardous, toxic, radioactive or dangerous waste. 

  

	17.14	Lending and Borrowing 

  

	    	The Company shall not, and the Company shall procure that no member of the Group shall incur any Financial Indebtedness other than: 

  

	 	(a)	amounts up to €500,000,000 (or its equivalent) in aggregate as external debt (including amounts borrowed under the Finance Documents), and combined internal and external debt
up to €600,000,000 (or its equivalent) in aggregate (including amounts borrowed under the Finance Documents); 

  

	 	(b)	Financial Indebtedness upon terms approved by the Facility Agent acting on the instructions of the Majority Lenders; 

  

	 	(c)	currency and commodity hedging used only to mitigate the risks relating to fluctuations in currencies and commodity prices, provided each such hedging arrangement is entered into
for a period no longer than 18 months. 

  

	 	(d)	operating lease obligations; 

  

	 	(e)	trade payables and other contractual obligations to suppliers and customers in the ordinary course of trading; 

  

 31 

	 	(f)	debt subordinated to the Loans under subordination agreements acceptable to the Facility Agent; 

  

	 	(g)	Financial Indebtedness disclosed in writing to the Facility Agent on the date of this Agreement; and 

  

	 	(h)	any refinance of any of the above up to the same principal amount. 

  

	17.15	No notarial deed 

  

	    	The Company shall not and the Company shall procure that no other member of the Group will, create any notarial deed (as referred to in section 41.2 of the Slovak Act
No. 233/1995 Coll., as amended) in relation to any Financial Indebtedness. 

  

	17.16	Capital Expenditure 

  

	    	The Company shall procure that no member of the Group, other than a Material Subsidiary or the Company, shall, without the consent of an Instructing Group notified to the Company by
the Facility Agent in writing, make any capital expenditure, where in any financial year the aggregate amount of such capital expenditure made (by members of the Group not being the Company or a Material Subsidiary) would exceed U.S.$10,000,000.

  

	17.17	No Margin Stock 

  

	    	The Company may not: 

  

	 	(a)	extend credit for the purpose, directly or indirectly, of buying or carrying Margin Stock; or 

  

	 	(b)	use any Loan or allow any Loan to be used, directly or indirectly, to buy or carry Margin Stock or for any other purpose in violation of the Margin Regulations.

  

	18.	EVENTS OF DEFAULT 

  

	18.1	Events of Default 

  

	    	Each of the events set out in Clauses 18.2 (Non-payment) to 18.11 (Material adverse change) (inclusive) is an Event of Default (whether or not caused by any reason whatsoever
outside the control of the Company or any other person). 

  

	18.2	Non-payment 

  

	    	The Company does not pay on the due date any amount payable by it under the Finance Documents at the place at and in the currency in which it is expressed to be payable and (if the
failure to pay is caused solely by technical or administrative error) it is not remedied within five Business Days of its due date. 

  

	18.3	Breach of other obligations 

  

	    	The Company fails to comply with any of its obligations under the Finance Documents (other than those referred to in Clause 18.2 (Non-payment)) and the failure to comply (if it
is capable of remedy) remains unremedied for 30 days after the Facility Agent gives the Company notice of the failure to comply. 

  

 32 

	18.4	Misrepresentation 

  

	    	Any representation, warranty or statement made or repeated in the Finance Documents or in any written certificate or statement delivered, made or issued by or on behalf of the
Company under the Finance Documents or in connection with the Finance Documents shall at any time be incorrect in any respect when so made or repeated or deemed to be made or repeated and the circumstances giving rise to such misrepresentation would
reasonably be expected to have a material adverse effect on the ability of the Company to perform its obligations under the Finance Documents. 

  

	18.5	Insolvency/enforcement 

  

	(a)	Any action shall be taken by the Company or one of its Affiliates for the dissolution or termination of existence or liquidation of the Company; or 

  

	(b)	an application by the Company for a bankruptcy judgement, commencement of settlement procedure (dohodovacie konanie) or restructuring (reštrukturalizácia)
or moratorium, or an arrangement with creditors of the Company is entered into, or any other proceeding or arrangement by which the Assets of the Company are submitted to the control of its creditors occurs or is entered into; or

  

	(c)	the Company is adjudged a bankrupt; or 

  

	(d)	there shall be appointed a liquidator, trustee, administrator, receiver or similar officer of the Company or a receiver of all or substantially all of the Assets of the Company; or

  

	(e)	all or substantially all of the Assets of the Company shall be attached or distrained upon or the same shall become subject at any time to any order of a court or other process and
such attachment, distraint, order or process shall remain in effect and shall not be discharged within thirty days; or 

  

	(f)	the Company shall become insolvent or its liabilities exceed its assets or be declared insolvent by a competent governmental or judicial authority or shall admit in writing its
inability to pay its debts as they fall due; or 

  

	(g)	a moratorium shall be made or declared in respect of all or any Financial Indebtedness of the Company. 

  

	18.6	Cessation of business 

  

	    	The Company ceases or threatens to cease to carry on the whole or a substantial part of its business, save as permitted by Clause 17.10 (Disposals), save for in the case of a
Material Subsidiary, for the purposes of a Permitted Merger. 

  

	18.7	Revocation of authorisation 

  

	(a)	Any authorisation or other requirement of any governmental, judicial or public body or authority necessary to enable the Company under any applicable law or regulation to perform
its obligations under the Finance Documents or for its businesses or required for the validity or enforceability of the Finance Documents shall be modified, revoked, withdrawn or withheld in any material respect or shall fail to remain in full force
and effect for more than 30 days. 

  

	(b)	The Company fails to comply with any authorisation or other requirement set out in paragraph (a) above. 

  

 33 

	18.8	Expropriation 

  

	    	All or any substantial part of the Assets of the Company shall be seized or expropriated by any authority. 

  

	18.9	Unlawfulness 

  

	    	At any time it is unlawful for the Company to perform such of its obligations under the Finance Document as are, in the reasonable opinion of the Facility Agent, material.

  

	18.10	Ownership of the Company 

  

	    	The entire commercial participation of the Company or the entire commercial participation or share capital of a Material Subsidiary (as determined on an annualised basis for the
financial year ended 31st December, 2004) after the date of this Agreement ceases to be directly or indirectly beneficially owned by United States Steel Corporation, unless such cessation results from a Permitted Merger.

  

	18.11	Material adverse change 

  

	    	There shall occur any material adverse change in the business, Assets, regulation or financial condition of the Company that would reasonably be expected to have a material adverse
effect on the Company’s ability to perform its obligations under the Finance Documents. 

  

	18.12	Acceleration 

  

	    	If an Event of Default is outstanding, the Facility Agent may, and must if so directed by the Majority Lenders, by notice to the Company: 

  

	 	(a)	cancel the Total Commitments; and/or 

  

	 	(b)	declare that all or part of any amounts outstanding under the Finance Documents are: 

  

	 	(i)	immediately due and payable; and/or 

  

	 	(ii)	payable on demand by the Facility Agent acting on the instructions of the Majority Lenders. 

  

	    	Any notice given under this Subclause will take effect in accordance with its terms. 

  

	19.	THE ADMINISTRATIVE PARTIES 

  

	19.1	Appointment and duties of the Facility Agent 

  

	    	Each Finance Party (other than the Facility Agent) irrevocably appoints the Facility Agent to act as its agent under and in connection with the Finance Documents, and irrevocably
authorises the Facility Agent on its behalf to perform the duties and to exercise the rights, powers and discretions that are specifically delegated to it under or in connection with the Finance Documents, together with any other incidental rights,
powers and discretions. The Facility Agent has only those duties which are expressly specified in the Finance Documents, and those duties are solely of a mechanical and administrative nature. 

  

	19.2	Role of the Arrangers 

  

	    	Except as specifically provided in the Finance Documents, none of the Arrangers has any obligations of any kind to any other Party in connection with any Finance Document.

  

 34 

	19.3	No fiduciary duties 

  

	    	Except as specifically provided in a Finance Document, nothing in the Finance Documents makes an Administrative Party a trustee or fiduciary for any other Party or any other person.
No Administrative Party need hold in trust any moneys paid to it for a Party or be liable to account for interest on those moneys. 

  

	19.4	Individual position of an Administrative Party 

  

	(a)	If it is also a Lender, each Administrative Party has the same rights and powers under the Finance Documents as any other Lender and may exercise those rights and powers as though
it were not an Administrative Party. 

  

	(b)	Each Administrative Party may: 

  

	 	(i)	carry on any business with the Company or its related entities (including acting as an agent or a trustee for any other financing); and 

  

	 	(ii)	retain any profits or remuneration it receives under the Finance Documents or in relation to any other business it carries on with the Company or its related entities.

  

	19.5	Reliance 

  

	    	The Facility Agent may: 

  

	 	(a)	rely on any notice or document believed by it to be genuine and correct and to have been signed by, or with the authority of, the proper person; 

  

	 	(b)	rely on any statement made by any person regarding any matters that may reasonably be assumed to be within his knowledge or within his power to verify; 

  

	 	(c)	engage, pay for and rely on professional advisers selected by it (including those representing a Party other than the Facility Agent); and 

  

	 	(d)	act under the Finance Documents through its personnel and agents. 

  

	19.6	Majority Lenders’ instructions 

  

	(a)	The Facility Agent is fully protected if it acts on the instructions of the Majority Lenders in the exercise of any right, power or discretion or any matter not expressly provided
for in the Finance Documents. Any such instructions given by the Majority Lenders will be binding on all the Lenders. In the absence of instructions, the Facility Agent may act as it considers to be in the best interests of all the Lenders.

  

	(b)	The Facility Agent is not authorised to act on behalf of a Lender (without first obtaining that Lender’s consent) in any legal or arbitration proceedings in connection with any
Finance Document. 

  

	(c)	The Facility Agent may require the receipt of security satisfactory to it, whether by way of payment in advance or otherwise, against any liability or loss which it may incur in
complying with the instructions of the Majority Lenders. 

  

	19.7	Responsibility 

  

	(a)	No Administrative Party is responsible to any other Finance Party for the adequacy, accuracy or completeness of: 

  

	 	(i)	any Finance Document or any other document; or 

  

 35 

	 	(ii)	any statement or information (whether written or oral) made in or supplied in connection with any Finance Document. 

  

	(b)	Without affecting the responsibility of the Company for information supplied by it or on its behalf in connection with any Finance Document, each Lender confirms that it:

  

	 	(i)	has made, and will continue to make, its own independent appraisal of all risks arising under or in connection with the Finance Documents (including the financial condition and
affairs of the Company and its related entities and the nature and extent of any recourse against any Party or its assets); and 

  

	 	(ii)	has not relied exclusively on any information provided to it by any Administrative Party in connection with any Finance Document. 

  

	19.8	Exclusion of liability 

  

	(a)	The Facility Agent is not liable to any other Finance Party for any action taken or not taken by it in connection with any Finance Document, unless directly caused by its gross
negligence or wilful misconduct. 

  

	(b)	No Party may take any proceedings against any officer, employee or agent of the Facility Agent in respect of any claim it might have against the Facility Agent or in respect of any
act or omission of any kind by that officer, employee or agent in connection with any Finance Document. Any officer, employee or agent of the Facility Agent may rely on this Subclause and enforce its terms under the Contracts (Rights of Third
Parties) Act 1999. 

  

	(c)	The Facility Agent is not liable for any delay (or any related consequences) in crediting an account with an amount required under the Finance Documents to be paid by the Facility
Agent if the Facility Agent has taken all necessary steps as soon as reasonably practicable to comply with the regulations or operating procedures of any recognised clearing or settlement system used by the Facility Agent for that purpose.

  

	(d)	Nothing in this Agreement will oblige any Administrative Party to satisfy any know your customer requirement in relation to the identity of any person on behalf of any other Finance
Party. 

  

	(e)	Each Finance Party confirms to each Administrative Party that it is solely responsible for any know your customer requirements it is required to carry out and that it may not rely
on any statement in relation to those requirements made by any other person. 

  

	19.9	Default 

  

	(a)	The Facility Agent is not obliged to monitor or enquire whether a Default has occurred. The Facility Agent is not deemed to have knowledge of the occurrence of a Default.

  

	(b)	If the Facility Agent: 

  

	 	(i)	receives notice from a Party referring to this Agreement, describing a Default and stating that the event is a Default; or 

  

	 	(ii)	is aware of the non-payment of any principal or interest or any fee payable to a Lender under this Agreement, 

  

	    	it must promptly notify the Lenders. 

  

 36 

	19.10	Information 

  

	(a)	The Facility Agent must promptly forward to the person concerned the original or a copy of any document that is delivered to the Facility Agent by a Party for that person.

  

	(b)	Except where a Finance Document specifically provides otherwise, the Facility Agent is not obliged to review or check the adequacy, accuracy or completeness of any document it
forwards to another Party. 

  

	(c)	Except as provided above, the Facility Agent has no duty: 

  

	 	(i)	either initially or on a continuing basis to provide any Lender with any credit or other information concerning the risks arising under or in connection with the Finance Documents
(including any information relating to the financial condition or affairs of the Company or its related entities or the nature or extent of recourse against any Party or its assets) whether coming into its possession before, on or after the date of
this Agreement; or 

  

	 	(ii)	unless specifically requested to do so by a Lender in accordance with a Finance Document, to request any certificate or other document from the Company. 

  

	(d)	In acting as the Facility Agent, the agency division of the Facility Agent is treated as a separate entity from its other divisions and departments. Any information acquired by the
Facility Agent which, in its opinion, is acquired by it otherwise than in its capacity as the Facility Agent may be treated as confidential by the Facility Agent and will not be treated as information possessed by the Facility Agent in its capacity
as such. 

  

	(e)	The Company irrevocably authorises the Facility Agent to disclose to the other Finance Parties any information which, in its opinion, is received by it in its capacity as the
Facility Agent. 

  

	(f)	The Facility Agent is not obliged to disclose to any person any confidential information supplied to it by or on behalf of a member of the Group solely for the purpose of evaluating
whether any waiver or amendment is required in respect of any term of the Finance Documents. 

  

	19.11	Indemnities 

  

	(a)	Without limiting the liability of the Company under the Finance Documents, each Lender must indemnify the Facility Agent for that Lender’s Pro Rata Share of any loss or
liability incurred by the Facility Agent in acting as the Facility Agent, except to the extent that the loss or liability is caused by the Facility Agent’s gross negligence or wilful misconduct. 

  

	(b)	The Facility Agent may deduct from any amount received by it for a Lender any amount due to the Facility Agent from that Lender under a Finance Document but unpaid and a Lender may
deduct from any amount owed to the Facility Agent any amount due to that Lender from the Facility Agent under a Finance Document but unpaid. 

  

	19.12	Compliance 

  

	(a)	The Facility Agent may refrain from doing anything (including the disclosure of any information) which might, in its opinion, constitute a breach of any law or regulation or be
otherwise actionable at the suit of any person, and may do anything which, in its opinion, is necessary or desirable to comply with any law or regulation. 

  

 37 

	(b)	Without limiting paragraph (a) above, the Facility Agent need not disclose any information relating to the Company or any of its related entities if the disclosure might, in
the opinion of the Facility Agent, constitute a breach of any law or regulation or any duty of secrecy or confidentiality or be otherwise actionable at the suit of any person. 

  

	19.13	Resignation of the Facility Agent 

  

	(a)	The Facility Agent may resign and appoint any of its Affiliates as successor Facility Agent by giving notice to the Lenders and the Company. 

  

	(b)	Alternatively, the Facility Agent may resign by giving notice to the Lenders and the Company, in which case the Majority Lenders may appoint a successor Facility Agent.

  

	(c)	If no successor Facility Agent has been appointed under paragraph (b) above within 30 days after notice of resignation was given, the Facility Agent may appoint a
successor Facility Agent. 

  

	(d)	The person(s) appointing a successor Facility Agent must, if practicable, consult with the Company prior to the appointment. Any successor Facility Agent must have an office in the
Republic. 

  

	(e)	The resignation of the Facility Agent and the appointment of any successor Facility Agent will both become effective only when the successor Facility Agent notifies all the Parties
that it accepts its appointment. On giving the notification, the successor Facility Agent will succeed to the position of the Facility Agent and the term Facility Agent will mean the successor Facility Agent. 

  

	(f)	The retiring Facility Agent must, at its own cost, make available to the successor Facility Agent such documents and records and provide such assistance as the successor Facility
Agent may reasonably request for the purposes of performing its functions as the Facility Agent under the Finance Documents. 

  

	(g)	Upon its resignation becoming effective, this Clause will continue to benefit the retiring Facility Agent in respect of any action taken or not taken by it in connection with
the Finance Documents while it was the Facility Agent, and, subject to paragraph (f) above, it will have no further obligations under any Finance Document. 

  

	(h)	The Majority Lenders may, by notice to the Facility Agent, require it to resign under paragraph (b) above. 

  

	19.14	Relationship with Lenders 

  

	(a)	The Facility Agent may treat each Lender as a Lender, entitled to payments under this Agreement and as acting through its Facility Office(s) until it has received not less than five
Business Days’ prior notice from that Lender to the contrary. 

  

	(b)	The Facility Agent may at any time, and must if requested to do so by the Majority Lenders, convene a meeting of the Lenders. 

  

	(c)	The Facility Agent must keep a register of all the Parties and supply any other Party with a copy of the register on request. The register will include each Lender’s Facility
Office(s) and contact details for the purposes of this Agreement. 

  

	19.15	Facility Agent’s management time 

  

	    	If the Facility Agent requires, any amount payable to the Facility Agent by any Party under any indemnity or in respect of any costs or expenses incurred by the Facility Agent under
the Finance 

  

 38 

	    	Documents after the date of this Agreement may include the cost of using its management time or other resources and will be calculated on the basis of such reasonable daily or
hourly rates as the Facility Agent may notify to the relevant Party. This is in addition to any amount in respect of fees or expenses paid or payable to the Facility Agent under any other term of the Finance Documents. 

  

	19.16	Notice period 

  

	    	Where this Agreement specifies a minimum period of notice to be given to the Facility Agent, the Facility Agent may, at its discretion, accept a shorter notice period.

  

	20.	EVIDENCE AND CALCULATIONS 

  

	20.1	Accounts 

  

	    	Accounts maintained by a Finance Party in connection with this Agreement are prima facie evidence of the matters to which they relate. 

  

	20.2	Certificates and determinations 

  

	    	Any certification or determination by a Finance Party of a rate or amount under the Finance Documents will be, in the absence of manifest error, conclusive evidence of the matters
to which it relates. 

  

	20.3	Calculations 

  

	    	Any interest or fee accruing under this Agreement accrues from day to day and is calculated on the basis of the actual number of days elapsed and a year of 360 or 365 days or
otherwise, depending on what the Facility Agent determines, after consultation with the Company, is market practice. 

  

	21.	FEES 

  

	21.1	Arrangement fee 

  

	    	The Company must pay to the Facility Agent an Arrangement Fee in the manner agreed in the Fee Letter. The Arrangement Fee is payable to the Facility Agent, to be divided amongst the
Arrangers pro-rata to their Commitments expressed in Schedule 1, and is payable regardless of whether or not the Company draws down under this Facility Agreement. 

  

	21.2	Facility Agent’s fee 

  

	    	The Company must pay to the Facility Agent for its own account an agency fee in the manner agreed in the Fee Letter between the Facility Agent and the Company.

  

	21.3	Commitment fee 

  

	    	The Company must pay a commitment fee computed at the rate of 0.10 per cent. per annum on the undrawn, uncancelled amount of each Lender’s Commitment.

  

	    	Accrued commitment fee is payable quarterly in arrear. Accrued commitment fee is also payable to the Facility Agent for a Lender on the date its Commitment is cancelled in full.

  

	21.4	Participation fee 

  

	    	The Company must pay a participation fee computed at the rate of 0.05 per cent. flat on €195,000,000, being €97,500, on the earlier of the date of first utilisation
and the date 15 days after 

  

 39 

	    	the date of the signing of this Facility Agreement. The Participation Fee is payable to the Facility Agent, to be divided amongst the Lenders pro-rata to their participation in the
lending under the Facility Agreement, and is payable regardless of whether or not the Company draws down under this Facility Agreement. 

  

	22.	INDEMNITIES AND BREAK COSTS 

  

	22.1	Currency indemnity 

  

	(a)	If a Finance Party receives an amount in respect of the Company’s liability under the Finance Documents (other than by reason of the Facility Agent not performing its
obligations under this Agreement) or if that liability is converted into a claim, proof, judgement or order in a currency other than the currency (the contractual currency) in which the liability is expressed to be payable under the relevant
Finance Document: 

  

	 	(i)	the Company shall indemnify that Finance Party as an independent obligation against any loss or liability arising out of or as a result of the conversion; 

 

	 	(ii)	if the amount received by that Finance Party, when converted into the contractual currency at a market rate in the usual course of its business is less than the amount owed in the
contractual currency, the Company concerned shall pay to that Finance Party an amount in the contractual currency equal to the deficit; and 

  

	 	(iii)	the Company shall pay to the Finance Party concerned any exchange costs and taxes payable in connection with any such conversion. 

  

	(b)	The Company waives any right it may have in any jurisdiction to pay any amount under the Finance Documents in a currency other than that in which it is expressed to be payable.

  

	22.2	Other indemnities 

  

	(a)	The Company must indemnify each Finance Party against any loss or liability that a Finance Party incurs as a consequence of: 

  

	 	(i)	the occurrence of any Event of Default; 

  

	 	(ii)	Clause 18.12 (Acceleration); 

  

	 	(iii)	any failure by the Company to pay any amount due under a Finance Document on its due date, including any resulting from any distribution or redistribution of any amount among the
Lenders under this Agreement; 

  

	 	(iv)	(other than by reason of negligence or default by that Finance Party) a Loan not being made after a Request has been delivered for that Loan and not cancelled; or

  

	 	(v)	a Loan (or part of a Loan) not being prepaid in accordance with a notice of prepayment. 

  

	    	The Company’s liability in each case includes any loss or expense on account of funds borrowed, contracted for or utilised to fund any amount payable under any Finance
Document, any amount repaid or prepaid or any Loan. 

  

	(b)	The Company must indemnify the Facility Agent against any loss or liability incurred by the Facility Agent as a result of: 

  

	 	(i)	investigating any event which the Facility Agent reasonably believes to be a Default; or 

  

 40 

	 	(ii)	acting or relying on any notice that it reasonably believes to be genuine, correct and appropriately authorised. 

  

	22.3	Break Costs 

  

	(a)	The Company must pay to each Lender its Break Costs. 

  

	(b)	Break Costs are the amount (if any) reasonably determined by the relevant Lender concerned by which: 

  

	 	(i)	the interest which that Lender would have received for the period from the date of receipt of any part of its share in a Loan or an overdue amount to the last day of the applicable
Term for that Loan or overdue amount if the principal or overdue amount received had been paid on the last day of that Term; 

  

	    	exceeds 

  

	 	(ii)	the amount which that Lender would be able to obtain by placing an amount equal to the amount received by it on deposit with a leading bank in the appropriate interbank market for a
period starting on the Business Day following receipt and ending on the last day of the applicable Term. 

  

	(c)	Each Lender must promptly supply to the Facility Agent for the Company details of the amount of any Break Costs claimed by it under this Subclause. 

  

	23.	EXPENSES 

  

	23.1	Initial costs 

  

	    	The Company must pay to each Administrative Party the amount of all costs and expenses (including legal fees) reasonably incurred by it in connection with the negotiation and
preparation (regardless of whether any Loan is drawn down), printing, execution and syndication of the Finance Documents, with a cap on legal fees of USD25,000.00 in relation to this Clause 23.1. 

  

	23.2	Subsequent costs 

  

	    	The Company must pay to the Facility Agent the amount of all costs and expenses (including legal fees) reasonably incurred by it in connection with: 

  

	 	(a)	the negotiation, preparation, printing and execution of any Finance Document (other than a Transfer Certificate) executed after the date of this Agreement; and

  

	 	(b)	any amendment, waiver or consent requested by or on behalf of the Company or specifically allowed by this Agreement. 

  

	23.3	Enforcement costs 

  

	    	The Company must pay to each Finance Party the amount of all costs and expenses (including legal fees) incurred by it in connection with the enforcement of, or the preservation of
any rights under, any Finance Document following an Event of Default. 

  

 41 

	24.	AMENDMENTS AND WAIVERS 

  

	24.1	Procedure 

  

	(a)	Except as provided in this Clause, any term of the Finance Documents may be amended or waived with the agreement of the Company and the Majority Lenders. The Facility Agent may
effect, on behalf of any Finance Party, an amendment or waiver allowed under this Clause. 

  

	(b)	The Facility Agent must promptly notify the other Parties of any amendment or waiver effected by it under paragraph (a) above. Any such amendment or waiver is binding on all
the Parties. 

  

	24.2	Exceptions 

  

	(a)	An amendment or waiver which relates to: 

  

	 	(i)	the definition of Majority Lenders in Clause 1.1 (Definitions); 

  

	 	(ii)	an extension of the date of payment of any amount to a Lender under the Finance Documents; 

  

	 	(iii)	a reduction in the Margin or a reduction in the amount of any payment of principal, interest, fee or other amount payable to a Lender under the Finance Documents;

  

	 	(iv)	an increase in, or an extension of, a Commitment or the Total Commitments; 

  

	 	(v)	a release of the Company; 

  

	 	(vi)	a term of a Finance Document which expressly requires the consent of each Lender; 

  

	 	(vii)	the right of a Lender to assign or transfer its rights or obligations under the Finance Documents; or 

  

	 	(viii)	this Clause, 

  

	    	may only be made with the consent of all the Lenders. 

  

	(b)	An amendment or waiver that relates to the rights or obligations of an Administrative Party may only be made with the consent of that Administrative Party. 

 

	(c)	A Fee Letter may be amended or waived with the agreement of the Administrative Party that is a party to that Fee Letter and the Company. 

  

	24.3	Change of currency 

  

	    	If a change in any currency of a country occurs (including where there is more than one currency or currency unit recognised at the same time as the lawful currency of a country),
the Finance Documents will be amended to the extent the Facility Agent (acting reasonably and after consultation with the Company) determines is necessary to reflect the change. 

  

	24.4	Waivers and remedies cumulative 

  

	    	The rights of each Finance Party under the Finance Documents: 

  

	 	(a)	may be exercised as often as necessary; 

  

 42 

	 	(b)	are cumulative and not exclusive of its rights under the general law; and 

  

	 	(c)	may be waived only in writing and specifically. 

  

	    	Delay in exercising or non-exercise of any right is not a waiver of that right. 

  

	25.	CHANGES TO THE PARTIES 

  

	25.1	General 

  

	    	In this Clause: 

  

	    	Transfer Date means, for a Transfer Certificate, the later of: 

  

	 	(a)	the proposed Transfer Date specified in that Transfer Certificate; and 

  

	 	(b)	the date on which the Facility Agent executes that Transfer Certificate. 

  

	25.2	Assignments and transfers by the Company 

  

	    	The Company may not assign or transfer any of its rights and obligations under the Finance Documents without the prior consent of all the Lenders. 

  

	25.3	Assignments and transfers by Lenders 

  

	(a)	A Lender (the Existing Lender) may, with the consent of the Company (such consent not to be unreasonably withheld or delayed) at any time assign or transfer (including by way
of novation) any of its rights and obligations under this Agreement to another bank or financial institution (the New Lender). 

  

	(b)	A transfer of obligations will be effective only if either: 

  

	 	(i)	the obligations are novated in accordance with the following provisions of this Clause; or 

  

	 	(ii)	the New Lender confirms to the Facility Agent and the Company in form and substance satisfactory to the Facility Agent that it is bound by the terms of this Agreement as a Lender.
On the transfer becoming effective in this manner the Existing Lender will be released from its obligations under this Agreement to the extent that they are transferred to the New Lender. 

  

	(c)	Unless the Facility Agent otherwise agrees, the New Lender must pay to the Facility Agent for its own account, on or before the date any assignment or transfer occurs, a fee of
USD1,000. 

  

	(d)	Any reference in this Agreement to a Lender includes a New Lender but excludes a Lender if no amount is or may be owed to or by it under this Agreement. 

  

	25.4	Procedure for transfer by way of novations 

  

	(a)	A novation is effected if: 

  

	 	(i)	the Existing Lender and the New Lender deliver to the Facility Agent and the Company a duly completed Transfer Certificate; and 

  

	 	(ii)	the Facility Agent and the Company execute it. 

  

 43 

	    	The Facility Agent must execute as soon as reasonably practicable a Transfer Certificate delivered to it and which appears on its face to be in order. 

  

	(b)	Each Party (other than the Company, the Existing Lender and the New Lender) irrevocably authorises the Facility Agent to execute any duly completed Transfer Certificate on its
behalf. 

  

	(c)	On the Transfer Date: 

  

	 	(i)	the New Lender will assume the rights and obligations of the Existing Lender expressed to be the subject of the novation in the Transfer Certificate in substitution for the Existing
Lender; and 

  

	 	(ii)	the Existing Lender will be released from those obligations and cease to have those rights. 

  

	25.5	Limitation of responsibility of Existing Lender 

  

	    	Unless expressly agreed to the contrary, an Existing Lender makes no representation or warranty and assumes no responsibility to a New Lender for: 

  

	 	(a)	the financial condition of the Company; or 

  

	 	(b)	the legality, validity, effectiveness, enforceability, adequacy, accuracy, completeness or performance of: 

  

	 	(i)	any Finance Document or any other document; 

  

	 	(ii)	any statement or information (whether written or oral) made in or supplied in connection with any Finance Document, or 

  

	 	(iii)	any observance by the Company of its obligations under any Finance Document or other documents. 

  

	(c)	Each New Lender confirms to the Existing Lender and the other Finance Parties that it: 

  

	 	(i)	has made, and will continue to make, its own independent appraisal of all risks arising under or in connection with the Finance Documents (including the financial condition and
affairs of the Company and its related entities and the nature and extent of any recourse against any Party or its assets) in connection with its participation in this Agreement; and 

  

	 	(ii)	has not relied exclusively on any information supplied to it by the Existing Lender in connection with any Finance Document. 

  

	(d)	Nothing in any Finance Document requires an Existing Lender to: 

  

	 	(i)	accept a re-transfer from a New Lender of any of the rights and obligations assigned or transferred under this Clause; or 

  

	 	(ii)	support any losses incurred by the New Lender by reason of the non-performance by the Company of its obligations under any Finance Document or otherwise. 

 

 44 

	25.6	Costs resulting from change of Lender or Facility Office 

  

	    	If: 

  

	 	(a)	a Lender assigns or transfers any of its rights and obligations under the Finance Documents or changes its Facility Office; and 

  

	 	(b)	as a result of circumstances existing at the date the assignment, transfer or change occurs, the Company would be obliged to pay a Tax Payment or an Increased Cost,

  

	    	then, unless the assignment, transfer or change is made by a Lender to mitigate any circumstances giving rise to the Tax Payment, Increased Cost or right to be prepaid and/or
cancelled by reason of illegality, the Company need only pay that Tax Payment or Increased Cost to the same extent that it would have been obliged to if no assignment, transfer or change had occurred. 

  

	25.7	Changes to the Reference Banks 

  

	    	If a Reference Bank (or, if a Reference Bank is not a Lender, the Lender of which it is an Affiliate) ceases to be a Lender, the Facility Agent must (in consultation with the
Company) appoint another Lender or an Affiliate of a Lender to replace that Reference Bank. 

  

	26.	DISCLOSURE OF INFORMATION 

  

	(a)	Each Finance Party must keep confidential any information supplied to it by or on behalf of the Company in connection with the Finance Documents. However, a Finance Party is
entitled to disclose information: 

  

	 	(i)	which is publicly available, other than as a result of a breach by that Finance Party of this Clause; 

  

	 	(ii)	in connection with any legal or arbitration proceedings; 

  

	 	(iii)	if required to do so under any law or regulation; 

  

	 	(iv)	to a governmental, banking, taxation or other regulatory authority; 

  

	 	(v)	to its professional advisers; 

  

	 	(vi)	to the extent allowed under paragraph (b) or (c) below; or 

  

	 	(vii)	with the agreement of the Company. 

  

	(b)	A Finance Party may (save in relation to any Fee Letter to which it is not a party) disclose to an Affiliate or any person with whom it may enter, or has entered into, any kind of
transfer, participation or other agreement in relation to this Agreement (a participant): 

  

	 	(i)	a copy of any Finance Document; and 

  

	 	(ii)	any information which that Finance Party has acquired under or in connection with any Finance Document. 

  

	    	However, before a participant may receive any confidential information, it must agree with the relevant Finance Party to keep that information confidential on the terms of
paragraph (a) above. 

  

 45 

	 	(c)	This Clause supersedes any previous confidentiality undertaking given by a Finance Party in connection with this Agreement prior to it becoming a Party. 

  

	27.	SET-OFF 

  

	(a)	A Finance Party may set off any matured obligation owed to it by the Company under the Finance Documents (to the extent beneficially owned by that Finance Party) against any
obligation (whether or not matured) owed by that Finance Party to the Company, regardless of the place of payment, booking branch or currency of either obligation. If the obligations are in different currencies, the Finance Party may convert either
obligation at a market rate of exchange in its usual course of business for the purpose of the set-off. If either obligation is unliquidated or unascertained, the Finance Party may set off in an amount estimated by it in good faith to be the amount
of that obligation. 

  

	(b)	The Company agrees to and confirms the Lenders rights of banker’s lien and set-off under applicable law and nothing herein shall be deemed a waiver or prohibition of such
right. Each Finance Party agrees to exercise such rights only after the Company’s failure to pay following proper demand and to promptly notify the Company after any such set off and application; provided, however, that the failure to give such
notice shall not affect the validity of such set-off and application. 

  

	28.	PRO RATA SHARING 

  

	28.1	Redistribution 

  

	    	If any amount owing by the Company under this Agreement to a Lender (the recovering Lender) is discharged by payment, set-off or any other manner other than through the
Facility Agent under this Agreement (a recovery), then: 

  

	 	(a)	the recovering Lender must, within three Business Days, supply details of the recovery to the Facility Agent; 

  

	 	(b)	the Facility Agent must calculate whether the recovery is in excess of the amount which the recovering Lender would have received if the recovery had been received by the Facility
Agent under this Agreement; and 

  

	 	(c)	the recovering Lender must pay to the Facility Agent an amount equal to the excess (the redistribution). 

  

	28.2	Effect of redistribution 

  

	(a)	The Facility Agent must treat redistribution as if it were a payment by the Company under this Agreement and distribute it among the Lenders accordingly. 

 

	(b)	When the Facility Agent makes a distribution under paragraph (a) above, the recovering Lender will be subrogated to the rights of the Finance Parties which have shared in that
redistribution. 

  

	(c)	If and to the extent that the recovering Lender is not able to rely on any rights of subrogation under paragraph (b) above, the Company will owe the recovering Lender a debt
which is equal to the redistribution, immediately payable and of the type originally discharged. 

  

	    	If: 

  

	 	(i)	a recovering Lender must subsequently return a recovery, or an amount measured by reference to a recovery, to the Company; and 

  

 46 

	 	(ii)	the recovering Lender has paid redistribution in relation to that recovery, 

  

	    	each Finance Party must reimburse the recovering Lender all or the appropriate portion of the redistribution paid to that Finance Party, together with interest for the period while
it held the re-distribution. In this event, the subrogation in paragraph (b) above will operate in reverse to the extent of the reimbursement. 

  

	28.3	Exceptions 

  

	    	Notwithstanding any other term of this Clause, a recovering Lender need not pay redistribution to the extent that: 

  

	 	(a)	it would not, after the payment, have a valid claim against the Company in the amount of the redistribution; or 

  

	 	(b)	it would be sharing with another Finance Party any amount that the recovering Lender has received or recovered as a result of legal or arbitration proceedings, where:

  

	 	(i)	the recovering Lender notified the Facility Agent of those proceedings; and 

  

	 	(ii)	the other Finance Party had an opportunity to participate in those proceedings but did not do so or did not take separate legal or arbitration proceedings as soon as reasonably
practicable after receiving notice of them. 

  

	29.	SEVERABILITY 

  

	    	If a term of a Finance Document is or becomes illegal, invalid or unenforceable in any jurisdiction, that shall not affect: 

  

	 	(a)	the validity or enforceability in that jurisdiction of any other term of the Finance Documents; or 

  

	 	(b)	the validity or enforceability in other jurisdictions of that or any other term of the Finance Documents. 

  

	30.	COUNTERPARTS 

  

	    	Each Finance Document may be executed in any number of counterparts. This has the same effect as if the signatures on the counterparts were on a single copy of the Finance Document.

  

	31.	NOTICES 

  

	31.1	Giving of notices 

  

	    	All notices or other communications under or in connection with this Agreement shall be given in writing and, unless otherwise stated, may be made by letter or facsimile. Any such
notice will be deemed to be given as follows: 

  

	 	(a)	if by letter, when delivered personally or on actual receipt; and 

  

	 	(b)	if by facsimile, when received in legible form. 

  

	    	However, a notice given in accordance with the above but received on a non-working day or after business hours in the place of receipt will only be deemed to be given on the next
working day in that place. 

  

 47 

	31.2	Addresses for notices 

  

	(a)	The address and facsimile number of the Company are: 

  

	    	U. S. Steel Košice, s.r.o. 

	    	Vstupný areál U. S. Steel 

	    	04454 Košice, 

	    	The Slovak Republic 

	    	Attention:         Chief Financial Officer 

	    	Fax:                  421-95-673-0858 

  

	    	and copied to: 

  

	    	United States Steel Corporation 

	    	600 Grant Street 

	    	Pittsburgh, PA 15219 

	    	Attention:         Assistant Treasurer - Finance & Risk Management 

	    	Fax:                  001 412 433 4756 

  

	    	or such other as the Company may notify to the Facility Agent by not less than five Business Days’ notice. 

  

	(b)	The address and facsimile number of the Facility Agent are: 

  

	    	ING Bank N.V. 

	    	60 London Wall 

	    	London EC2M 5TQ 

	    	United Kingdom 

  

	    	Attention:               Daniel Kerry / Craig Baker 

	    	Tel number:           + 44 207 767 5616 / 5617 

  

	    	Fax number:           + 44 207 767 7324 

  

	    	E-mail:                   daniel.kerry@uk.ing.com / craig.baker@uk.ing.com

  

	    	or such other as the Facility Agent may notify to the other Parties by not less than five Business Days’ notice. 

  

	31.3	The Company 

  

	    	All formal communication under the Finance Documents to or from the Company must be sent through the Facility Agent. 

  

	32.	LANGUAGE 

  

	(a)	Any notice given in connection with a Finance Document must be in English. 

  

	(b)	Any other document provided in connection with a Finance Document must be: 

  

	 	(i)	in English; or 

  

 48 

	 	(ii)	(unless the Facility Agent and the Company otherwise agree) accompanied by a certified English translation. In this case, the English translation prevails unless the document is a
statutory or other official document. 

  

	33.	WAIVER OF IMMUNITY 

  

	    	The Company irrevocably and unconditionally: 

  

	 	(a)	agrees that if a Finance Party brings proceedings against it or its assets in relation to a Finance Document, no immunity from those proceedings (including, without limitation,
suit, attachment prior to judgement, other attachment, the obtaining of judgement, execution or other enforcement) will be claimed by or on behalf of itself or with respect to its assets; 

  

	 	(b)	waives any such right of immunity which it or its assets now has or may subsequently acquire; and 

  

	 	(c)	consents generally in respect of any such proceedings to the giving of any relief or the issue of any process in connection with those proceedings, including, without limitation,
the making, enforcement or execution against any assets whatsoever (irrespective of its use or intended use) of any order or judgement which may be made or given in those proceedings. 

  

	34.	GOVERNING LAW 

  

	    	This Agreement is governed by English law. 

  

	35.	ENFORCEMENT 

  

	35.1	Submission 

  

	 	(a)	For the benefit of the Finance Parties, the Company agrees that the courts of England have jurisdiction to settle any disputes in connection with any Finance Document and
accordingly submits to the jurisdiction of the English courts. 

  

	 	(b)	To the extent allowed by law, the Finance Parties may take: 

  

	 	(i)	proceedings in any other court; and 

  

	 	(ii)	concurrent proceedings in any number of jurisdictions. 

  

	35.2	Service of process 

  

	    	Without prejudice to any other mode of service, the Company: 

  

	 	(a)	irrevocably appoints The London Law Agency Limited 69 Southampton Row, London WC1B 4ET, England as its agent for service of process in relation to any proceedings before the English
courts in connection with any Finance Document; 

  

	 	(b)	agrees to maintain such an agent for service of process in England for so long as any amount is outstanding under this Agreement; 

  

	 	(c)	agrees that failure by the process agent to notify the Company of the process will not invalidate the proceedings concerned; 

  

 49 

	 	(d)	consents to the service of process relating to any such proceedings by prepaid posting of a copy of the process to its address for the time being applying under Clause 31.2
(Addresses for notices); and 

  

	 	(e)	agrees that if the appointment of any person mentioned in paragraph (a) above ceases to be effective, the Company shall immediately appoint a further person in England to
accept service of process on its behalf in England and, failing such appointment within 15 days, the Facility Agent is entitled to appoint such a person by notice to the Company. 

  

	35.3	Forum convenience and enforcement abroad 

  

	    	The Company: 

  

	 	(a)	waives objection to the English courts on grounds of inconvenient forum or otherwise as regards proceedings in connection with a Finance Document; and 

  

	 	(b)	agrees that a judgement or order of an English court in connection with a Finance Document is conclusive and binding on it and may be enforced against it in the courts of any other
jurisdiction. 

  

	35.4	Non-exclusivity 

  

	    	Nothing in this Clause 35 limits the right of a Finance Party to bring proceedings against the Company in connection with any Finance Document: 

  

	 	(a)	in any other court of competent jurisdiction; or 

  

	 	(b)	concurrently in more than one jurisdiction. 

  

	35.5	Arbitration 

  

	    	Notwithstanding the foregoing, the Parties agree that, if the Facility Agent and the Company so require, any dispute arising out of or in connection with this Agreement (including
any question regarding its existence, validity or termination) shall be referred to and finally resolved by arbitration under the Rules of the London Court of International Arbitration (the Rules) which Rules are deemed to be incorporated by
reference into this Clause 35.5. The Tribunal shall consist of a sole arbitrator agreed upon by the Company and the Facility Agent in writing (subject to the Rules) or, if not so agreed within 21 days of the Facility Agent and the Company
requiring the dispute to be referred to arbitration, a sole arbitrator appointed in accordance with the Rules. The place of any such arbitration shall be London and the language English. 

  

	35.6	Waiver of trial by jury 

  

	    	EACH PARTY WAIVES ANY RIGHT IT MAY HAVE TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION IN CONNECTION WITH ANY FINANCE DOCUMENT OR ANY TRANSACTION CONTEMPLATED BY ANY FINANCE
DOCUMENT. THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO TRIAL BY COURT. 

  
 This Agreement has been entered into on the date stated at the beginning of this Agreement. 
  

 50 

 SCHEDULE 1 
  

ORIGINAL PARTIES 
  
 PART 1 
  
 ORIGINAL LENDERS 
  

				
	 Name of Original

	  	Lender Commitments

	 Citibank, N.A. Bahrain
 P.O.Box 548
 Manama
 Kingdom of Bahrain
	  	€	65,000,000
		
	 ING BANK N.V., pobočka zahraničnej banky
 Jesenského 4/C
 814 99 Bratislava
 Slovakia
	  	€	65,000,000
		
	 Slovenská sporitel’ňa, a.s.
 Suché mýto 4
 816 07 Bratislava
	  	€	65,000,000
	 	  	
	

	 Total Commitments
	  	€	195,000,000
	 	  	
	

  

 51 

 SCHEDULE 2 
  

FORM OF REQUEST 
  

			
	To:	  	ING BANK N.V. as Facility Agent
		
	From:	  	[                    ]
		
	Date:	  	[            ], 2005

  
 U. S. Steel
Košice, s.r.o. 
  
 €195,000,000 Facility Agreement

 dated [    ] December, 2005 (the Agreement) 
  

	1.	We refer to the Agreement. This is a Request. 

  

	2.	We wish to borrow a Loan on the following terms: 

  

	 	(a)	Utilisation Date: [        ], 200[    ] 

  

	 	(b)	Amount/currency:
[                            ] 

  

	 	(c)	Term: [                            ].

  

	3.	Our [payment/delivery] instructions are:
[                                    ]. 

  

	4.	We confirm that each condition precedent under the Agreement that must be satisfied on the date of this Request is so satisfied. 

  

	5.	This Request is irrevocable. 

  
 By: 
 [            ] 
  

 52 

 SCHEDULE 3 
  

FORM OF TRANSFER CERTIFICATE 
  

			
	To: 	  	ING BANK N.V. as Facility Agent
		
	From:	  	[THE EXISTING LENDER] (the Existing Lender) and [THE NEW LENDER] (the New Lender)
		
	Date:	  	[        ], 200[  ]

  
 U. S. Steel
Košice, s.r.o. 
  
 €195,000,000 Facility Agreement

 dated [    ] December, 2005 (the Agreement) 
  
 We refer to the Agreement. This is a Transfer Certificate. 
  

	1.	The Existing Lender transfers by novation to the New Lender the Existing Lender’s rights and obligations referred to in the Schedule below in accordance with the terms of the
Agreement. 

  

	2.	The proposed Transfer Date is [        ], 200[    ]. 

  

	3.	The administrative details of the New Lender for the purposes of the Agreement are set out in the Schedule. 

  

	4.	This Transfer Certificate is governed by English law. 

  
 THE SCHEDULE 
  
 Rights and obligations to be transferred by novation 
 [insert relevant details,
including applicable Commitment (or part)] 
  
 Administrative
details of the New Lender 
 [insert details of Facility Office, address for notices and payment details etc.] 
  

									
	[EXISTING LENDER]	 	 	 	[NEW LENDER]
					
	By:	 	 	 	 	 	By:	 	 

  
 The
Transfer Date is confirmed by the Facility Agent as [        ], 200[  ]1. 
  

			
	ING BANK N.V.
		
	By:	 	 
	
	Accepted:
	
	U. S. Steel Košice, s.r.o.
		
	By:	 	  

		
	By:	 	  

  

 53 

 SCHEDULE 4 
  

CONDITIONS PRECEDENT DOCUMENTS 
  

	1.	A copy of the constitutional documents of the Company. 

  

	2.	A specimen of the signature of each person authorised to sign this Agreement on behalf of the Company and to sign and/or despatch all documents and notices to be signed and/or
despatched by the Company under or in connection with this Agreement. 

  

	3.	Evidence that the process agent referred to in Clause 35.2 (Service of process) has accepted its appointment under that Clause. 

  

	4.	An extract from the Company’s entry in the Commercial Registry, sealed/stamped by the Košice Commercial Registry, as at a date no earlier than one week prior to the date
of the Agreement and certified by an Authorised Signatory of the Company, as at a date no earlier than the date of this Agreement, confirming the accuracy of all facts shown in the extract, except with respect to the attached amendments which have
been filed with the Commercial Registry. 

  

	5.	A copy of any other authorisation or other document, opinion or assurance which the Facility Agent, acting reasonably, considers to be necessary or desirable in connection with the
entry into and performance of, and the transactions contemplated by, any Finance Document or for the validity and enforceability of any Finance Document. 

  

	6.	Audited consolidated financial statements of the Company for the year ended 31 December 2004 and the unaudited consolidated financial statements of the Company for the semi
annual period ended 30 June 2005 certified by the chief financial officer (or equivalent) of the Company. 

  

	7.	A certificate of an authorised signatory of United States Steel Corporation certifying that the Company is a 100% owned Subsidiary of United States Steel Corporation.

  

	8.	A certificate of an authorised signatory of the Company certifying that each copy document delivered under this Schedule 4 is correct, complete and in full force and effect as at a
date no earlier than the date of this Agreement. 

  

	 9.        
	 (a)      A legal opinion of a legal adviser in the Republic, substantially in the form of Schedule
5, addressed to the Facility Agent; 

  

	 	(b)	a legal opinion of Allen & Overy, legal advisers to the Lenders in the Republic, substantially in the form of Schedule 6, addressed to the Facility Agent; and

  

	 	(c)	a legal opinion of Allen & Overy, legal advisers in England to the Lenders, substantially in the form of Schedule 7, addressed to the Facility Agent.

  

 54 

 SCHEDULE 5 
  

FORM OF LEGAL OPINION OF LEGAL ADVISER TO THE COMPANY 
  
 [date]                                 
  
 ING BANK N.V. 
 [            ] 
  
 Dear Sirs, 
  
 U. S. Steel Košice, s.r.o. (the Company) €195,000,000 
 Facility Agreement dated [ ] December, 2005 (the Agreement) 
  
 I am an Assistant General Counsel of the Company and am authorized to practice law in the Slovak Republic. 
  
 Terms defined in the Agreement and not defined otherwise herein shall have the same meanings
when used herein as therein. 
  
 I have examined originals or copies of such
corporate records of the Company, governmental authorisations or orders, certificates of public officials and of representatives of the Company and other documents, as I have deemed relevant and necessary as the basis of, and have made all due and
necessary enquiries for the purpose of giving, my opinion. 
  
 In giving this opinion I have also examined: 
  

	1.	an executed copy of the Agreement; 

  

	2.	the following corporate documents of the Company: 

  

	 	(a)	extract of the Company Register of the District Court Košice 1, Section Sro, No. 11711/V of [ th] [ ], 2005 in respect of the Company; 

  

	 	(b)	a copy of the foundation agreement of the Company dated 7th June, 2000; and 

  

	 	(c)	a copy of the Memorandum of Association of the Company in full writing dated 28 November 2005. 

  
 In giving this opinion I have assumed: 
  

	(a)	that the Agreement has been duly authorised, executed and delivered by or on behalf of each of the parties thereto other than the Company; and 

  

	(b)	that the Agreement constitutes a legal, valid, binding and enforceable obligation of the Company in accordance with its terms under English law, and is binding on the Parties.

  
 This opinion is limited to the substantive laws of the Slovak
Republic currently in force and I have made no investigation and no opinion is expressed or implied as to the laws of any other jurisdiction. I express no opinion as to matters of fact. This opinion is given subject to matters not disclosed to me
and about which I have no knowledge. I assume that there are no facts that would affect the conclusions in this opinion. 
  

 55 

 Based on the foregoing and subject to the assumptions set out above and the qualifications set out below, I am of the
opinion that, so far as the laws of the Slovak Republic are concerned at the date of this opinion: 
  

	1.	Status. The Company is a limited liability company organised under the laws of the Slovak Republic. 

  

	2.	Powers and authority. The Company has the corporate power and authority to enter into and perform the obligations expressed to be assumed by it under the Agreement and to
borrow thereunder and, subject to a duly passed resolution of the executives of the Company approving the terms of, and the transactions contemplated by the Agreement and authorising the relevant members of the Company’s statutory body to
execute the Agreement on behalf of the Company, has taken all necessary corporate action to authorise the execution of the Agreement and the borrowing of the Loans. According to Section 13(4) and 133(3) of the Slovak Commercial Code (Act
No. 513/1991 Coll., as amended), any restriction of the authority of a company’s statutory body to act for the company shall be ineffective vis-à-vis third parties (any disclosure of that restriction notwithstanding).

  

	3.	Execution. The Agreement has been duly executed and delivered by the Company. 

  

	4.	Legal validity. The Agreement constitutes a legal, valid, binding and enforceable obligation of the Company in accordance with its terms and (subject to the preparation of
the official translation into the Slovak language) is in the proper form for its enforcement in the courts of the Slovak Republic. 

  

	5.	Non-conflict. The execution by the Company of the Agreement does not, and its performance of that agreement will not, violate: (i) any mandatory provision of any Slovak law
or regulation or the Constitution of the Slovak Republic; (ii) the constitutional documents of the Company referred to in paragraph 2(a) to (c) above; or (iii) any other agreement, document or obligation which is binding upon the Company or any of
its Assets. 

  

	6.	Consents. No authorisations, approvals, consents, licences, exemptions, filings, registrations, notarisations or other requirements of governmental, judicial or public bodies
and authorities of the Slovak Republic are required in connection with the Company’s entry into or performance of the Agreement, or for its validity or enforceability against the Company. 

  

	7.	Signatories. [    ] and [    ] have the right and power to execute the Agreement and to give any notices to the Facility Agent
thereunder. 

  

	8.	Pari passu ranking. The obligations of the Company under the Agreement rank at least pari passu with all its other present or future unsecured and unsubordinated
obligations, save as provided under mandatory provisions of Slovak law. 

  

	9.	Borrowing limits. The borrowing of the full amount available under the Agreement will not cause any limit on the Company’s borrowing or other powers or on the exercise
of such powers by its board of directors, whether imposed by the Company’s Articles of Association or similar document or by statute, regulation, or agreement, to be exceeded. 

  

	10.	Stamp duties. Except for court fees and sworn translators’ fees payable in connection with proceedings to enforce the Agreement and for any applicable notarial charges,
there are no stamp, transfer or registration fees or similar taxes, charges or duties payable in the Slovak Republic in connection with the execution or enforcement of the Agreement. 

  

 56 

	11.	No immunity. 

  

	 	(a)	The Company is subject to civil and commercial law with respect to its obligations under the Agreement, and its entry into and performance of the Agreement constitutes private and
commercial acts; 

  

	 	(b)	neither the Company nor any of its assets located in the Slovak Republic enjoys any right of immunity from suit, attachment prior to judgement or other legal process in respect of
its obligations under the Agreement. 

  

	12.	Bankruptcy. The Company has not been declared bankrupt and no step has been or is being taken by the Company nor am I aware of any other step being taken in respect of the
Company, for bankruptcy or any similar proceedings in relation to the Company or any of its Assets. 

  

	13.	Application of governing law. The choice of English law as the governing law of the Agreement would be upheld as a valid choice of law by the courts of the Slovak Republic.

  

	14.	Submission to jurisdiction. The submission by the Company to the jurisdiction of the English courts and arbitration under Clause 35 of the Agreement is a valid and binding
submission to jurisdiction in respect of the Agreement and not subject to revocation. 

  

	15.	Enforcement of foreign judgements/arbitration awards. 

  

	 	A judgement duly obtained in the English courts shall be recognised and enforced in the Slovak Republic unless: 

  

	 	(a)	the matter is one within the exclusive competence of the courts of the Slovak Republic pursuant to its laws, or is one beyond the competence of any judicial proceedings of a foreign
authority, as determined by the laws of the Slovak Republic; or 

  

	 	(b)	the decision is not final or enforceable in the state where it has been issued; or 

  

	 	(c)	the decision is not a decision on the merits of the matter; or 

  

	 	(d)	the party against whom such judgement is sought to be enforced has been deprived of an opportunity to participate in the foreign proceedings, especially if the summons or notice of
the commencement of the foreign proceedings has not been duly served on the party; this exception does not apply if the party has not filed an appeal against the foreign judgement which has been duly served on it or if the party has waived the
applicability of this exception; or 

  

	 	(e)	a final decision in the same matter has previously been reached by a court of the Slovak Republic or by a foreign authority if that foreign authority’s decision has been, or
would be, enforced in the Slovak Republic; or 

  

	 	(f)	recognition of the foreign judgement would be contrary to public policy (ordre public) of the Slovak Republic. 

  

	 	Subject to compliance with, and on the assumption that none of the grounds for refusal to enforce an arbitral award as set out in, the New York Convention on the Recognition and
Enforcement of Foreign Arbitral Awards dated 10th June, 1958 (the Convention) are applicable, an
arbitral award obtained against the Company in arbitration proceedings based on or in connection with the Agreement, in accordance with the relevant clauses thereof, will be enforced in the Slovak Republic in accordance with the provisions of the
Convention, provided that a Slovak court has the jurisdiction. 

  

 57 

	16.	Foreign currency judgements/arbitration awards. A judgement duly obtained in the courts of England or an arbitral award in respect of the Agreement given in euros or United
States Dollars, and being enforced in the Slovak Republic in euros or United States Dollars respectively, would be implemented in euros or United States Dollars respectively. 

  
 The qualifications to which this opinion is subject are as
follows: 
  

	1.	The validity, enforceability and effectiveness of the Agreement against the Company are limited by all bankruptcy, insolvency, moratorium and other laws affecting creditors’
rights generally. 

  

	2.	References in this opinion to the term “enforceable” mean that each obligation or document is of a type and form which the Slovak courts would enforce. It is not certain,
however, that each obligation or document will be enforced in accordance with its terms in every circumstance, enforcement being subject to inter alia the nature of the remedies available in the Slovak courts, the acceptance by such courts of
jurisdiction, the power of such courts to stay proceedings, the provisions of other principles of law of general application (such as e.g. the concept of fair business conduct) and all limitations resulting from the laws of bankruptcy, insolvency,
liquidation, forced administration, any statutes of limitation and lapse of time or other laws affecting generally the enforcement of creditors’ rights. 

  

	3.	Any subsidies or other funds obtained by the Company from the state budget or from the budget of European Communities or any assets purchased from funds originated from the state
budget are immune from attachment and from execution and would not be available to creditors in any enforcement proceedings. 

  

	4.	Under the Foreign Exchange Act No. 202/1995 Coll., as amended, if a foreign exchange emergency is declared by the Government of the Slovak Republic, payments in foreign
currency or abroad generally may be suspended for the duration of such emergency (not to exceed three months at any one time). 

  

	5.	The effectiveness of terms exculpating a party from a liability or duty otherwise owed is limited by law. 

  

	6.	Slovak courts may not give effect to any indemnity for legal costs incurred by a litigant in proceedings before Slovak courts. 

  
 This opinion expresses Slovak legal concepts in English. Such concepts are not always capable
of precise expression in English without the extensive comparative law analysis which would not be appropriate for an opinion of this kind. 
  
 This opinion is given exclusively in connection with the Agreement and for no other purpose. It is strictly limited to the matters set forth herein and no opinion may be
inferred or implied beyond that expressly stated herein. 
  
 This opinion is given
solely to the Finance Parties that are the original parties to the Agreement and may not be given to or relied upon, by any other person. 
  
 Yours faithfully, [            ] 
  
 Assistant General Counsel 
  

 58 

 SCHEDULE 6 
  

FORM OF LEGAL OPINION OF ALLEN & OVERY – SLOVAK LAW 
  
 [Allen & Overy Letterhead] 
  
 [date]                                 
  
 ING BANK N.V. 

	[            	] 

  
 Dear Sirs, 
  
 U. S. Steel Košice, s.r.o. (the Company) €195,000,000 
 Facility Agreement dated [    ] December, 2005 (the Agreement) 
  
 I have acted as legal advisor in the Slovak Republic to the Original Lenders as to the laws of the Slovak Republic in connection with the Agreement between the Company,
the Arrangers, the Facility Agent and the Financial Institutions listed in the Agreement. 
  
 Terms defined in the Agreement and not defined otherwise herein shall have the same meanings when used herein as therein. 
  
 DOCUMENTS 
  
 For the purposes of this opinion, I have examined the following documents: 
  

	1.	an executed copy of the Agreement; 

  

	2.	the following corporate documents of the Company, certified by an authorised signatory for and on behalf of the Company as being true, correct and complete as at a date no earlier
than the date of the Agreement: 

  

	 	(a)	an extract of the Company Register of the District Court Košice 1, Section Sro, No. 11711/V of [ th] [    ], 2005 in respect of the Company;

  

	 	(b)	a copy of the foundation agreement of the Company dated 7th June, 2000; and 

  

	 	(c)	a copy of the Memorandum of Association of the Company in full writing dated 28 November 2005. 

  
 I have not examined any other document entered into by or affecting the Company or any corporate or other records of the Company and have
not made any other inquiries concerning it. 
  
 ASSUMPTIONS 
  
 In giving this opinion I have assumed: 
  

	(a)	that the Parties (other than the Company) have taken all necessary actions (including corporate action) to authorise the entry into and performance of the Agreement and that the
Agreement has been duly authorised, executed and delivered by or on behalf of the Parties (other than the Company) in accordance with all applicable laws and their respective constitutional documents; 

  

 59 

	(b)	the genuineness of all signatures on all documents, the authenticity and completeness of all documents submitted to me as originals and the completeness and conformity to the
original documents of all documents submitted to me as copies; 

  

	(c)	that the documents referred to in paragraph 2 above were at their date, and remain, accurate and are in full force and effect; 

  

	(d)	that the Agreement, and the transactions contemplated thereby, constitutes a legal, valid, binding and enforceable obligation of the Parties (including the Company) in accordance
with its terms under English law, and is binding on the Parties; 

  

	(e)	that the Parties (other than the Company) have the requisite power, capacity and authority to enter into and perform the Agreement; 

  

	(f)	that the authorisation, execution, delivery and performance of the Agreement will not contravene any of the provisions of the constitutional documents of any Party (other than the
Company); 

  

	(g)	that no provision of the laws of any jurisdiction other than the Slovak Republic affects the conclusions of the opinion (e.g. insofar as any obligation is to be performed in any
jurisdiction outside the Slovak Republic, its performance will not be illegal or ineffective by virtue of the law of, or contrary to public policy in, that jurisdiction); and 

  

	(h)	that no petition has been filed to declare bankruptcy with respect to the Company over its assets. 

  
 This opinion is limited to the law of the Slovak Republic currently in force and I have made no investigation and no opinion is expressed or
implied as to the laws of any other jurisdiction. I express no opinion on any EU Directives not implemented in the Slovak domestic law. I express no opinion as to matters of fact. This opinion is given subject to matters not disclosed to me and
about which I have no knowledge. I assume that there are no matters of fact that would affect the conclusions in this opinion. 
  
 I have not advised as to matters of taxation law and practice. 
  
 OPINION 
  
 Based on the foregoing and subject to the assumptions set out above and the qualifications set out below, I am of the opinion that, so far as the laws of the Slovak
Republic are concerned at the date of this opinion: 
  

	1.	Status. The Company is a limited liability company organised under the laws of the Slovak Republic. 

  

	2.	Powers and authority. The Company has the corporate power to enter into and perform the obligations expressed to be assumed by it under the Agreement and to borrow under the
Agreement and, subject to a duly passed resolution of the executives of the Company approving the terms of, and the transactions contemplated by the Agreement and authorising the relevant members of the Company’s statutory body to execute the
Agreement on behalf of the Company, has taken all necessary corporate action to authorise the execution of the Agreement and the borrowing of the Loans. According to Section 13(4) and 133(3) of the Slovak Commercial Code (Act No. 513/1991
Coll., as amended), any restriction of the authority of a company’s statutory body to act for the company shall be ineffective vis-à-vis third parties (any disclosure of that restriction notwithstanding). 

 

 60 

	3.	Legal validity. The Agreement constitutes a legal, valid, binding and enforceable obligation of the Company in accordance with its terms and (subject to the preparation of
the official translation into the Slovak language) is in the proper form for its enforcement in the courts of the Slovak Republic. 

  

	4.	Non-conflict. The execution by the Company of the Agreement does not, and its performance of that agreement will not, violate: (i) any mandatory provision of any Slovak
law or regulation or the Constitution of the Slovak Republic; or (ii) the constitutional documents of the Company referred to in paragraphs 2(a) to (c) above. 

  

	5.	Consents. No authorisations, approvals, consents, licences, exemptions, filings, registrations, notarisations or other requirements of governmental, judicial or public bodies
and authorities of the Slovak Republic are required in connection with the Company’s entry into or performance of the Agreement, or for its validity or enforceability against the Company. 

  

	6.	No immunity. 

  

	 	(a)	The Company is subject to civil and commercial law with respect to its obligations under the Agreement, and its entry into and performance of the Agreement constitutes private and
commercial acts. 

  

	 	(b)	Neither the Company nor any of its assets located in the Slovak Republic enjoys any right of immunity from suit, attachment prior to judgement or other legal process in respect of
its obligations under the Agreement. 

  

	7.	Stamp duties. Except for court fees and sworn translators’ fees payable in connection with proceedings to enforce the Agreement and for any applicable notarial charges,
there are no stamp, transfer or registration fees or similar taxes, charges or duties payable in the Slovak Republic in connection with the execution or enforcement of the Agreement. 

  

	8.	Governing law. The choice of English law as the governing law of the Agreement would be upheld as a valid choice of law by the courts of the Slovak Republic.

  

	9.	Enforcement of foreign judgments/arbitration awards. A judgement duly obtained in the English courts shall be recognised and enforced in the Slovak Republic unless:

  

	 	(a)	the matter is one within the exclusive competence of the courts of the Slovak Republic pursuant to its laws, or is one beyond the competence of any judicial proceedings of a foreign
authority, as determined by the laws of the Slovak Republic; or 

  

	 	(b)	the decision is not final or enforceable in the state where it has been issued; or 

  

	 	(c)	the decision is not a decision on the merits of the matter; or 

  

	 	(d)	the party against whom such judgement is sought to be enforced has been deprived of an opportunity to participate in the foreign proceedings, especially if the summons or notice of
the commencement of the foreign proceedings has not been duly served on the party; this exception does not apply if the party has not filed an appeal against the foreign judgement which has been duly served on it or if the party has waived the
applicability of this exception; or 

  

	 	(e)	a final decision in the same matter has previously been reached by a court of the Slovak Republic or by a foreign authority if that foreign authority’s decision has been, or
would be, enforced in the Slovak Republic; or 

  

 61 

	 	(f)	recognition of the foreign judgement would be contrary to public policy (ordre public) of the Slovak Republic. 

  

	10.	Subject to compliance with, and on the assumption that none of the grounds for refusal to enforce an arbitral award as set out in, the New York Convention on the Recognition and
Enforcement of Foreign Arbitral Awards dated 10th June, 1958 (the Convention) are applicable, an
arbitral award obtained against the Company in arbitration proceedings based on or in connection with the Agreement, in accordance with the relevant clauses thereof, will be enforced in the Slovak Republic in accordance with the provisions of the
Convention, provided that a Slovak court has the jurisdiction. 

  

	11.	Foreign currency judgements/arbitration awards. A judgement duly obtained in the courts of England or an arbitral award in respect of the Agreement given in euros or United
States Dollars, and being enforced in the Slovak Republic in euros or United States Dollars respectively, would be implemented in euros or United States Dollars respectively. 

  

	12.	Submission to jurisdiction. The submission by the Company to the jurisdiction of English courts or, as the case may be, consent to arbitration in accordance with the Rules of
the London Court of International Arbitration, will be recognised as a valid and binding submission to jurisdiction and consent to arbitration in respect of the Agreement. 

  
 QUALIFICATIONS 
  
 The qualifications to which this opinion is subject are as follows: 
  

	(a)	The validity, enforceability and effectiveness of the Agreement against the Company are limited by all bankruptcy, insolvency, moratorium and other laws affecting creditors’
rights generally. 

  

	(b)	References in this opinion to the term “enforceable” mean that each obligation or document is of a type and form which the Slovak courts would enforce. It is not certain,
however, that each obligation or document will be enforced in accordance with its terms in every circumstance, enforcement being subject to inter alia the nature of the remedies available in the Slovak courts, the acceptance by such courts of
jurisdiction, the power of such courts to stay proceedings, the provisions of other principles of law of general application (such as e.g. the concept of fair business conduct) and all limitations resulting from the laws of bankruptcy, insolvency,
liquidation, forced administration, any statutes of limitation and lapse of time or other laws affecting generally the enforcement of creditors’ rights. 

  

	(c)	Any subsidies or other funds obtained by the Company from the state budget or from the budget of European Communities or any assets purchased from funds originated from the state
budget are immune from attachment and from execution and would not be available to creditors in any enforcement proceedings. 

  

	(d)	Under the Foreign Exchange Act No. 202/1995 Coll., as amended, if a foreign exchange emergency is declared by the Government of the Slovak Republic, payments in foreign
currency or abroad generally may be suspended for the duration of such emergency (not to exceed three months at any one time). 

  

	(e)	The effectiveness of terms exculpating a party from a liability or duty otherwise owed is limited by law. 

  

	(f)	Slovak courts may not give effect to any indemnity for legal costs incurred by a litigant in proceedings before Slovak courts. 

  

 62 

 GENERAL 
  
 This opinion expresses Slovak legal concepts in English. Such concepts are not always capable of precise expression in English without the extensive comparative law
analysis which would not be appropriate for an opinion of this kind. 
  
 This
opinion is given exclusively in connection with the Agreement and for no other purpose. It is strictly limited to the matters set forth herein and no opinion may be inferred or implied beyond that expressly stated herein. It is also given on the
basis that we have no obligation to notify any addressee of this opinion of any change in Slovak law or its application after the date of this opinion. 
  
 This opinion is given solely to the Original Lenders and may not be given to or relied upon by any other person. You may not give copies of this opinion to others without
our prior written permission. 
  
 Yours
faithfully, 
  
 Igor Pálka 
 Advocate 
 Allen & Overy
Bratislava, s.r.o. 
  

 63 

 SCHEDULE 7 
  

FORM OF LEGAL OPINION OF ALLEN & OVERY – ENGLISH LAW 
  
 [Allen & Overy Letterhead] 
  
 [date]                                     
    
  
 ING BANK N.V. 

	[            ]	

  
 Dear Sirs, 
  
 U. S. Steel Košice, s.r.o.
(the Company) €195,000,000 
 Facility Agreement dated [    ] December, 2005 (the Agreement) 
  
 We have acted as English legal advisers to ING Bank N.V. as Facility Agent in connection with
the Agreement between the Company, the Arrangers, the Facility Agent and the Financial Institutions listed in the Agreement. 
  
 Terms defined in the Agreement and not defined otherwise herein shall have the same meanings when used herein as therein. 
  
 We have examined an executed copy of the Agreement and the opinion of Allen & Overy
Bratislava, s.r.o. referred to in Schedule 4 (Conditions Precedent Documents) to the Agreement. 
  
 We have not examined any other document entered into by or affecting the Company or any corporate or other records of the Company and have not made any other inquiries concerning it. 
  
 In giving this opinion we have assumed: 
  

	(a)	that the Agreement has been duly authorised, executed and delivered by or on behalf of each of the parties thereto; 

  

	(b)	the genuineness of all signatures on all documents, the authenticity and completeness of all documents submitted to us as originals, and the completeness and conformity to the
original documents of all documents submitted to us as copies; 

  

	(c)	that the Agreement constitutes a legal, valid, binding and enforceable obligation of the Company in accordance with its terms under Slovak law, and is binding on the Parties and in
this regard we have relied on the opinion of Allen & Overy Bratislava, s.r.o. referred to above; and 

  

	(d)	in relation to any arbitration in connection with this Agreement, the arbitrator will, in making any determination, have regard to the facts and circumstances of any matter in
dispute in a manner consistent with that of any English court. 

  
 This opinion is limited to the substantive laws of England & Wales currently in force and we have made no investigation and no opinion is expressed or implied as to the laws of any other jurisdiction. We express no opinion as to
matters of fact. This opinion is given subject to matters not disclosed to use and about which we have no knowledge. We assume that there are no facts that would affect the conclusions in this opinion. 
  

 64 

 Based on the foregoing and subject to the assumptions set out above and the qualifications set out below, we are of the
opinion that, so far as the laws of England & Wales are concerned at the date of this opinion: 
  

	1.	Legal validity: The Agreement constitutes a legal, valid and binding obligation of the Company enforceable against the Company, except that the enforceability of such
obligations may be limited by (i) bankruptcy, insolvency, reorganisation, moratorium or other similar laws affecting creditors’ rights generally and (ii) general principles of law including, without limitation, concepts of
materiality, reasonableness, good faith and fair dealing. 

  

	2.	Legality and contraventions: The execution and delivery by the Company of the Agreement and the assumption or performance of its obligations thereunder, do not and will not
violate in any respect any provision of any applicable English law or regulation. 

  

	3.	Consents and Registration Requirements: No authorisation, approval, consent, licence, exemption, registration or filing of or with any governmental, public or regulatory
authority or agency in England is necessary in relation to the execution and delivery by the Company of the Agreement, or the assumption or performance of obligations thereunder. 

  

	4.	Stamp Duty: No ad valorem stamp duties, registration fees or other similar duties, taxes or charges are payable in England in respect of the execution or delivery of the
Agreement. 

  

	5.	Arbitration and Jurisdiction 

  

	 	(a)	The submission by the Company to the jurisdiction of the English courts or, as the case may be, (conditional) consent to arbitration in accordance with the Rules of the London Court
of International Arbitration, will be recognised as a valid submission to jurisdiction and (conditional) consent to arbitration in respect of the Agreement. 

  

	 	(b)	An award made pursuant to arbitration conducted in accordance with the requirements of the arbitration clause in the Agreement would be enforceable in the Courts of England pursuant
to, and subject to, the exceptions and provisions of the Arbitration Act 1996. 

  

	 	(c)	The choice of English law to govern the Agreement would be recognised and upheld as a valid choice of law by the English courts or an arbitral tribunal convened pursuant to the
Agreement. 

  

	 	(d)	An arbitration award obtained in accordance with the Agreement will be enforced in accordance with the 1958 New York Convention on the reciprocal enforcement of arbitration awards.

  
 The qualifications to which this opinion is subject are as
follows: 
  

	(a)	As used in this opinion, the term enforceable means that the obligations assumed by the relevant party under the relevant document are of a type and form enforced by the
courts in England. The term does not address the extent to which a judgement or arbitration award will be enforceable outside England. Nor is it certain that each obligation will necessarily be capable of enforcement in England in accordance with
its terms in every circumstance, such enforcement being, in any event, subject to rules governing the enforceability of arbitration awards, the nature of the remedies available in the courts in England and other principles of law, equity and
procedure of general application. 

  

	(b)	This opinion is subject to all limitations resulting from the laws of bankruptcy, insolvency, liquidation and other laws of general application relating to or affecting the rights
of creditors. 

  

 65 

	(c)	Any provision in the Agreement for interest to be paid on overdue amounts at a rate in excess of the pre-default rate may amount to a penalty under English law and may therefore not
be recoverable. 

  

	(d)	Under certain circumstances, a court or arbitral tribunal in England may not treat as conclusive those certificates, judgements, determinations, records and opinions which the
Agreement states are to be so treated (for example without limitation, if a certificate, judgement, determination, record or opinion could be shown to have been in manifest error or to have an unreasonable or arbitrary basis or not to have been made
in good faith). 

  

	(e)	The effectiveness of terms exculpating a party from a liability or duty otherwise owed is limited by law. 

  

	(f)	A court or arbitral tribunal in England will not necessarily give full effect to an indemnity for the costs of litigation or enforcement incurred by an unsuccessful litigant.

  

	(g)	The Agreement may under English law be amended orally by the parties thereto notwithstanding provisions therein to the contrary. 

  

	(h)	Failure or delay in exercising any right may constitute a waiver of that right in spite of provisions to the contrary in the Agreement, for example, in circumstances where such
failure amounts to an implied representation that the right has been waived and it is reasonable in the circumstances for the Company to rely on this representation. 

  

	(i)	Any obligations requiring an indemnity in respect of stamp duties may be void in respect of stamp duty payable in the United Kingdom. 

  

	(j)	A court or arbitrator in England may allow set-off or counterclaim in circumstances in which it is fair and equitable to do so. 

  

	(k)	[Where legal proceedings are brought in respect of a matter which the Parties have agreed to arbitrate under Clause 35.5, the English courts may grant a stay of those legal
proceedings unless satisfied that the arbitration agreement is null and void, inoperative or incapable of being performed.] 

  

	(l)	The enforceability of the Agreement will be subject to the limitations set out in our Slovak law legal opinion of even date. 

  
 This opinion is given exclusively in connection with the Agreement and for no other purpose.
It is strictly limited to the matters set forth herein and no opinion may be inferred or implied beyond that expressly stated herein. 
  
 This opinion is given solely to the Original Lenders and may not be given to or relied upon by any other person. 
  
 Yours faithfully, 
  
  
 [    ] 
  

 66 

 SIGNATORIES 
  

			
	
	Company
	
	U. S. STEEL KOŠICE, s.r.o.
		
	By:	  	 /s/ JAMES F. CONNOR

	 	  	Executive
		
	By:	  	 /s/ KENNETH R. PEPPERNEY

	 	  	Executive
	
	Arrangers
	
	CITIBANK, N.A. Bahrain
		
	By:	  	 /s/ IGOR KOTTMAN

	 	  	Under a power of attorney
		
	By:	  	 /s/ JÚLIA LACHKÁ

	 	  	Under a power of attorney
	
	ING BANK N.V., pobočka zahraničnej banky
		
	By:	  	 /s/ HANS VAN ESSEN

	 	  	General Manager
		
	By:	  	 /s/ JAROSLAV VITTEK

	 	  	Director Wholesale Products
	
	SLOVENSKÁ SPORITEL’ŇA, a.s.
		
	By:	  	 /s/ BENEDIKT VON KEMPIS

	 	  	Director of Corporate Banking Division
		
	By:	  	 /s/ ZLATA SMOLKOVÁ

	 	  	Head of Corporate Clients Department
	
	Facility Agent
	
	ING BANK N.V.
		
	By:	  	 /s/ EDWARD BAILEY

	 	  	Analyst, under a Power of Attorney

  

 67 

			
	Original Lenders
	
	CITIBANK, N.A. Bahrain
		
	By:	  	 /s/ JÚLIA LACHKÁ

	 	  	Under a power of attorney
		
	By:	  	 /s/ IGOR KOTTMAN

	 	  	Under a power of attorney
	
	ING BANK N.V., pobočka zahraničnej banky
		
	By:	  	 /s/ HANS VAN ESSEN

	 	  	General Manager
		
	By:	  	 /s/ JAROSLAV VITTEK

	 	  	Director Wholesale Products
	
	SLOVENSKÁ SPORITEL’ŇA, a.s.
		
	By:	  	 /s/ BENEDIKT VON KEMPIS

	 	  	Director of Corporate Banking Division
		
	By:	  	 /s/ ZLATA SMOLKOVÁ

	 	  	Head of Corporate Clients Department

  

 68Revolving Credit Agreement

 Exhibit 10.1 
  
 REVOLVING CREDIT AGREEMENT 
  
 dated as of December 14, 2005 
  
 between 
  
 AMERIS BANCORP 
 as Borrower 
  
 and 
  
 SUNTRUST BANK 
 as Lender 

 REVOLVING CREDIT AGREEMENT 
  
 THIS REVOLVING CREDIT AGREEMENT (this “Agreement”) is made and entered into as of December 14,
2005, by and between AMERIS BANCORP, a Georgia corporation (the “Borrower”) and SUNTRUST BANK, a Georgia banking corporation (the “Lender”). 
  
 WITNESSETH: 
  
 WHEREAS, the Borrower has requested the Lender, and the Lender has agreed, subject to the terms and conditions of this Agreement, to establish a
two year revolving credit facility in an original principal amount of $20,000,000; 
  
 NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, the Borrower and the Lender agree as follows: 
  
 ARTICLE I 
  
 DEFINITIONS; CONSTRUCTION 
  
 Section 1.1. Definitions. In addition to the other terms defined herein, the following terms used herein shall have the meanings herein
specified (to be equally applicable to both the singular and plural forms of the terms defined): 
  
 “Acquisition” shall mean any transaction or a series of related transactions for the purpose of, or resulting, directly or
indirectly, in (a) the acquisition of all or substantially all of the assets of a Person, or of any business or division of any Person, (b) the acquisition of greater than 50% of the capital stock, partnership interest, membership interest
or other equity of any Person, or otherwise causing a Person to become a Subsidiary, or (c) a merger or consolidation of, or any other combination with, another Person (other than a Person that is a Subsidiary), provided that the Borrower or
any Subsidiary is the surviving entity. 
  
 “Affiliate” shall mean, as to any Person, any other Person that directly, or indirectly through one or more intermediaries, Controls, is Controlled by, or is under common Control with, such Person. 
  
 “Allowance for Loan and Lease Losses” shall mean the
amount set forth under the line item “allowance for loan and lease losses” on the Borrower’s consolidated balance sheet delivered under either Section 5.1(a) or 5.1(b) as determined in accordance with
GAAP. 
  
 “Availability Period” shall mean
the period from the Closing Date to the Commitment Termination Date. 
  
 “Base Rate” shall mean the higher of (i) the per annum rate which the Lender publicly announces from time to time to be its prime lending rate, as in effect from time to time, and (ii) the Federal Funds
Rate, as in effect from time to time, plus one-half of one percent (0.50%). The Lender’s prime lending rate is a reference rate and does not necessarily represent the lowest or best rate charged to customers. The Lender may make
commercial loans or other loans at rates of interest at, above or below the Lender’s prime lending rate. Each change in the Lender’s prime lending rate shall be effective from and including the date such change is publicly announced as
being effective. 
  

 1 

 “Business Day” shall mean any day other than a Saturday, Sunday or other day on
which commercial banks in Atlanta, Georgia are authorized or required by law to close. 
  
 “Call Report” shall mean, with respect to a Financial Institution Subsidiary, the “Consolidated Reports of Condition and Income” (FFIEC Form 031 or 041 or any successor form of
the Federal Financial Institutions Examination Council). 
  
 “Change in Control” shall mean (a) with respect to the Borrower, the occurrence of one or more of the following events: (i) any sale, lease, exchange or other transfer (in a single transaction or a series
of related transactions) of all or substantially all of the assets of the Borrower to any Person or “group” (within the meaning of the Securities Exchange Act of 1934 and the rules of the Securities and Exchange Commission thereunder in
effect on the date hereof), (ii) the acquisition of ownership, directly or indirectly, beneficially or of record, by any Person or “group” (within the meaning of the Securities Exchange Act of 1934 and the rules of the Securities and
Exchange Commission thereunder as in effect on the date hereof) of 25% or more of the outstanding shares of the voting stock of the Borrower or (iii) occupation of a majority of the seats (other than vacant seats) on the board of directors of
the Borrower by Persons who were neither (A) nominated by the current board of directors or (B) appointed by directors so nominated, or (b) the Borrower shall own, directly or indirectly, less than 100% of the voting stock of any
Financial Institution Subsidiary. 
  
 “Change in
Law” shall mean (i) the adoption of any applicable law, rule or regulation after the date of this Agreement, (ii) any change in any applicable law, rule or regulation, or any change in the interpretation or application
thereof, by any Governmental Authority after the date of this Agreement, or (iii) compliance by the Lender (or for purposes of Section 2.10(b), by the Lender’s holding company, if applicable) with any request, guideline
or directive (whether or not having the force of law) of any Governmental Authority made or issued after the date of this Agreement. 
  
 “Closing Date” shall mean the date on which the conditions precedent set forth in Section 3.1 and
Section 3.2 have been satisfied or waived in accordance with Section 9.2, and unless otherwise indicated, shall be the date of this Agreement. 
  
 “Code” shall mean the Internal Revenue Code of 1986, as amended an in effect from time to time.

  
 “Commitment Termination Date” shall
mean December 31, 2007, or such later date as the Revolving Commitment has been extended pursuant to Section 2.3, or earlier if terminated pursuant to Section 2.3 or Section 8.1. 
  
 “Control” shall mean the power, directly or
indirectly, either to (i) vote 5% or more of securities having ordinary voting power for the election of directors (or persons performing similar functions) of a Person or (ii) direct or cause the direction of the management and policies
of a Person, whether through the ability to exercise voting power, by contract or otherwise. The terms “Controlling”, “Controlled by”, and “under common Control with” have
meanings correlative thereto. 
  
 “Default” shall mean any condition or event that, with the giving of notice or the lapse of time or both, would constitute an Event of Default. 
  
 “Default Interest” shall have the meaning set forth in Section 2.5(b).

  
 “Dollar(s)” and the sign
“$” shall mean lawful money of the United States of America. 
  

 2 

 “Environmental Laws” shall mean all laws, rules, regulations, codes, ordinances,
orders, decrees, judgments, injunctions, notices or binding agreements issued, promulgated or entered into by or with any Governmental Authority, relating in any way to the environment, preservation or reclamation of natural resources, the
management, Release or threatened Release of any Hazardous Material or to health and safety matters. 
  
 “Environmental Liability” shall mean any liability, contingent or otherwise (including any liability for damages, costs of
environmental investigation and remediation, costs of administrative oversight, fines, natural resource damages, penalties or indemnities), of the Borrower or any Subsidiary directly or indirectly resulting from or based upon (a) any actual or
alleged violation of any Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) any actual or alleged exposure to any Hazardous Materials, (d) the Release
or threatened Release of any Hazardous Materials or (e) any contract, agreement or other consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing. 
  
 “ERISA” shall mean the Employee Retirement Income
Security Act of 1974, as amended from time to time, and any successor statute. 
  
 “ERISA Affiliate” shall mean any trade or business (whether or not incorporated), which, together with the Borrower, is treated as a single employer under Section 414(b) or (c) of the
Code or, solely for the purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a single employer under Section 414 of the Code. 
  

“ERISA Event” shall mean (a) any “reportable event”, as defined in Section 4043 of ERISA or the
regulations issued thereunder with respect to a Plan (other than an event for which the 30-day notice period is waived); (b) the existence with respect to any Plan of an “accumulated funding deficiency” (as defined in Section 412
of the Code or Section 302 of ERISA), whether or not waived; (c) the filing pursuant to Section 412(d) of the Code or Section 303(d) of ERISA of an application for a waiver of the minimum funding standard with respect to any
Plan; (d) the incurrence by the Borrower or any of its ERISA Affiliates of any liability under Title IV of ERISA with respect to the termination of any Plan; (e) the receipt by the Borrower or any ERISA Affiliate from the PBGC or a plan
administrator appointed by the PBGC of any notice relating to an intention to terminate any Plan or Plans or to appoint a trustee to administer any Plan; (f) the incurrence by the Borrower or any of its ERISA Affiliates of any liability with
respect to the withdrawal or partial withdrawal from any Plan or Multiemployer Plan; or (g) the receipt by the Borrower or any ERISA Affiliate of any notice, or the receipt by any Multiemployer Plan from the Borrower or any ERISA Affiliate of
any notice, concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected to be, insolvent or in reorganization, within the meaning of Title IV of ERISA. 
  
 “Eurodollar” when used in reference to any Revolving
Loan, refers to whether such Revolving Loan bears interest at a rate determined by reference to LIBOR. 
  
 “Event of Default” shall have the meaning provided in Article VIII. 
  
 “Federal Funds Rate” shall mean, for any day, the
rate per annum (rounded upwards, if necessary, to the next 1/100th of 1%) equal to the weighted average of the rates
on overnight Federal funds transactions with member banks of the Federal Reserve System arranged by Federal funds brokers, as published by the Federal Reserve Bank of New York on the next succeeding Business Day or if such rate is not so published
for any Business Day, the Federal Funds Rate for such day shall be the average rounded upwards, if necessary, to the next 1/100th of 1% of the quotations for such day on such transactions received by the Lender from three Federal funds brokers of
recognized standing selected by the Lender. 
  

 3 

 “Financial Institution Subsidiary” shall mean each of (a) the regulated
financial institutions set forth on Schedule 4.12, and (b) each other Subsidiary hereafter formed or acquired that is a regulated financial institution. 
  
 “Fiscal Quarter” shall mean each fiscal quarter (including the fiscal quarter at the fiscal
year-end) of the Borrower and its Subsidiaries. 
  
 “FR
Report Y-9C” shall mean the “Consolidated Financial Statements for Bank Holding Companies-FR Y-9C” submitted by the Borrower as required by Section 5(c) of the Bank Holding Company Act (12 U.S.C. 1844) and
Section 225.5(b) of Regulation Y [12 CFR 225.5(b)], or any successor or similar replacement report. 
  
 “FR Report Y9-LP” shall mean the “Parent Company Only Financial Statements for Large Bank Holding Companies-FR Y-9LP”
submitted by the Borrower as required by Section 5(c) of the Bank Holding Company Act (12 U.S.C. 1844) and Section 225.5(b) of Regulation Y [12 CFR 225.5(b)], or any successor or similar replacement report. 
  
 “GAAP” shall mean generally accepted accounting
principles in the United States applied on a consistent basis and subject to the terms of Section 1.2. 
  
 “Governmental Authority” shall mean the government of the United States of America, any other nation or any political subdivision
thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining
to government. 
  
 “Hazardous
Materials” means all explosive or radioactive substances or wastes and all hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum distillates, asbestos or asbestos containing materials,
polychlorinated biphenyls, radon gas, infectious or medical wastes and all other substances or wastes of any nature regulated pursuant to any Environmental Law. 
  

“Hedging Agreements” shall mean interest rate swap, cap or collar agreements, interest rate future or option contracts,
currency swap agreements, currency future or option contracts, foreign exchange contracts (forward and/or spot), commodity agreements and other similar agreements or arrangements designed to protect against fluctuations in interest rates, currency
values or commodity values. 
  
 “Indebtedness” of any Person shall mean, without duplication (i) all obligations of such Person for borrowed money, (ii) all obligations of such Person evidenced by bonds, debentures, notes or other similar
instruments, (iii) all obligations of such Person in respect of the deferred purchase price of property or services (other than trade payables incurred in the ordinary course of business), (iv) all obligations of such Person under any
conditional sale or other title retention agreement(s) relating to property acquired by such Person, (v) all obligations of such Person under capital leases and all monetary obligations of such Person under Synthetic Leases, (vi) all
obligations, contingent or otherwise, of such Person in respect of letters of credit, acceptances or similar extensions of credit, (vii) all guarantees by such Person of Indebtedness of others, (viii) all Indebtedness of a third party
secured by any Lien on property owned by such Person, whether or not such Indebtedness has been assumed by such Person, (ix) all obligations of such Person, contingent or otherwise, to purchase, redeem, retire or otherwise acquire for value any
common stock of such Person, and (x) all net obligations incurred by such Person under Hedging Agreements. 
  
 “Interest Period” shall mean, with respect to any Eurodollar Loan, a period of one month, provided that (i) the initial
Interest Period may have an actual duration of less than one month, depending on the initial funding date and (ii) no Interest Period may extend beyond the Commitment Termination Date. 
  

 4 

 “Interest Rate Determination Date” shall mean the date that the initial Revolving
Loan is funded and the first Business Day of each calendar month thereafter. 
  
 “Investments” shall have the meaning set forth in Section 7.6 hereof. 
  
 “Lien” shall mean any mortgage, pledge, security interest, lien (statutory or otherwise), charge, encumbrance, hypothecation,
assignment, deposit arrangement, or other arrangement having the practical effect of the foregoing or any preference, priority or other security agreement or preferential arrangement of any kind or nature whatsoever (including any conditional sale
or other title retention agreement and any capital lease having the same economic effect as any of the foregoing). 
  
 “LIBOR” shall mean that rate per annum effective on each Interest Rate Determination Date that is equal to the quotient of:

  
 (i) the rate per annum for deposits in U. S. dollars for a
one-month period on that page of the Telerate, Reuters or Bloomberg reporting services (whichever one is then currently being used by Lender for quotations in U. S. Dollars) which displays the British Bankers’ Association Interest Settlement
Rates for deposits in U. S. Dollars as of 11:00 a.m. (London, England time) on the day that is two Business Days prior to the Interest Rate Determination Date, or if such page or service shall cease to be available, such other page or such other
service (as the case may be) for the purpose of displaying British Bankers’ Association Interest Settlement Rates for U. S. Dollars as Lender, in its discretion, shall select; provided, that if Lender determines that the relevant
foregoing sources are unavailable for the relevant Interest Period, LIBOR shall mean the rate of interest determined by Lender to be the average (rounded upward, if necessary, to the nearest 1/100th of 1%) of the rates per annum at which deposits in
U. S. Dollars are offered to Lender two (2) Business Days preceding the Interest Rate Determination Date by leading banks in the London interbank market as of 10:00 a. m. (Atlanta, Georgia time) for delivery on the Interest Rate Determination
Date, divided by 
  
 (ii) a percentage equal to 1.00 minus the
maximum reserve percentages (including any emergency, supplemental, special or other marginal reserves) expressed as a decimal (rounded upward to the next 1/100th of 1%) in effect on any day to which the Bank is subject with respect to any LIBOR
loan pursuant to regulations issued by the Board of Governors of the Federal Reserve System with respect to eurocurrency funding (currently referred to as “eurocurrency liabilities” under Regulation D). This percentage will be adjusted
automatically on and as of the effective date of any change in any reserve percentage. 
  
 “Loan Documents” shall mean, collectively, this Agreement, the Revolving Credit Note, the Pledge Agreement, any Hedging Agreement entered into with Lender in connection with the Indebtedness
under this Agreement or the Revolving Credit Note and any and all other instruments, agreements, documents and writings executed in connection with any of the foregoing. 
  
 “Material Adverse Effect” shall mean, with respect to any event, act, condition or occurrence of
whatever nature (including any adverse determination in any litigation, arbitration, or governmental investigation or proceeding), whether singly or in conjunction with any other event or events, act or acts, condition or conditions, occurrence or
occurrences whether or not related, a material adverse change in, or a 
  

 5 

 material adverse effect on, (i) the business, results of operations, financial condition, assets, liabilities or
prospects of the Borrower and of the Borrower and its Subsidiaries taken as a whole, (ii) the ability of the Borrower to perform any of its obligations under the Loan Documents, (iii) the rights and remedies of the Lender under any of the
Loan Documents or (iv) the legality, validity or enforceability of any of the Loan Documents. 
  
 “Multiemployer Plan” shall have the meaning set forth in Section 4001(a)(3) of ERISA. 
  
 “Nonperforming Assets” shall mean the sum of
(a) Nonperforming Loans, and (b) Other Real Estate Owned (determined in accordance with, and as set forth on, Borrower’s FR Report Y-9C). 
  
 “Nonperforming Loans” shall mean the sum of (a) nonaccrual loans and lease financing receivables, (b) loans and
lease financing receivables that are contractually past due 90 days or more as to interest or principal and are still accruing interest, and (c) loans for which the terms have been modified due to a deterioration in the financial position of
the borrower (determined in accordance with, and as set forth on, Borrower’s FR Report Y-9C). 
  
 “Notice of Borrowing” shall have the meaning as set forth in Section 2.2. 
  
 “Obligations” shall mean all amounts owing by the
Borrower to the Lender pursuant to or in connection with this Agreement or any other Loan Document, including without limitation, all principal, interest (including any interest accruing after the filing of any petition in bankruptcy or the
commencement of any insolvency, reorganization or like proceeding relating to the Borrower, whether or not a claim for post-filing or post-petition interest is allowed in such proceeding), all reimbursement obligations, all net obligations under
Hedging Agreements entered into between Borrower and Lender or its Affiliates, fees, expenses, indemnification and reimbursement payments, costs and expenses (including all fees and expenses of counsel to the Lender incurred pursuant to this
Agreement or any other Loan Document), whether direct or indirect, absolute or contingent, liquidated or unliquidated, now existing or hereafter arising hereunder or thereunder, together with all renewals, extensions, modifications or refinancings
thereof. 
  
 “Other Real Estate Owned”
shall mean the sum of (a) real estate acquired in satisfaction of debts previously contracted and (b) other real estate owned, as set forth on Schedule HC-M of Borrower’s FR Report Y-9C. 
  
 “Participant” shall have the meaning set forth in
Section 9.4(c). 
  
 “Payment
Office” shall mean the office of the Lender located at 303 Peachtree Street, Atlanta, Georgia 30308, or such other location as to which the Lender shall have given written notice to the Borrower. 
  
 “PBGC” shall mean the Pension Benefit Guaranty
Corporation referred to and defined in ERISA, and any successor entity performing similar functions. 
  
 “Permitted Encumbrances” shall mean 
  
 (i) Liens imposed by law for taxes not yet due or which are being contested in good faith by appropriate proceedings and with respect to
which adequate reserves are being maintained in accordance with GAAP; 
  
 (ii) statutory Liens of landlords and Liens of carriers, warehousemen, mechanics, materialmen and other Liens imposed by law created in the ordinary course of business for amounts 
  

 6 

 not yet due or which are being contested in good faith by appropriate proceedings and with respect to
which adequate reserves are being maintained in accordance with GAAP; 
  
 (iii) pledges and deposits made in the ordinary course of business in compliance with workers’ compensation, unemployment insurance and other social security laws or regulations; 
  
 (iv) deposits to secure the performance of bids, trade
contracts, leases, statutory obligations, surety and appeal bonds, performance bonds and other obligations of a like nature, in each case in the ordinary course of business; 
  
 (v) judgment and attachment liens not giving rise to an Event of Default or Liens created by or existing
from any litigation or legal proceeding that are currently being contested in good faith by appropriate proceedings and with respect to which adequate reserves are being maintained in accordance with GAAP; and 
  
 (vi) easements, zoning restrictions, rights-of-way and
similar encumbrances on real property imposed by law or arising in the ordinary course of business that do not secure any monetary obligations and do not materially detract from the value of the affected property or materially interfere with the
ordinary conduct of business of the Borrower and its Subsidiaries taken as a whole; 
  
 provided, that the term “Permitted Encumbrances” shall not include any Lien securing Indebtedness. 
  
 “Person” shall mean any individual, partnership, firm, corporation, association, joint venture, limited liability company, trust
or other entity, or any Governmental Authority. 
  
 “Plan” means any employee pension benefit plan (other than a Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA, and in respect of which
the Borrower or any ERISA Affiliate is (or, if such plan were terminated, would under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA. 
  
 “Pledge Agreement” shall mean that certain Security
Agreement-Certificated Securities, Notes, Instruments, etc. dated as of even date herewith by the Borrower in favor of the Lender. 
  
 “Regulation D” shall mean Regulation D of the Board of Governors of the Federal Reserve System, as the same may be in
effect from time to time, and any successor regulations. 
  
 “Release” means any release, spill, emission, leaking, dumping, injection, pouring, deposit, disposal, discharge, dispersal, leaching or migration into the environment (including ambient air, surface water,
groundwater, land surface or subsurface strata) or within any building, structure, facility or fixture. 
  
 “Responsible Officer” shall mean any of the president, the chief executive officer, the chief operating officer, the chief
financial officer, the treasurer or a vice president of the Borrower or such other representative of the Borrower as may be designated in writing by any one of the foregoing with the consent of the Lender; and, with respect to the financial
covenants only, the chief financial officer or the treasurer of the Borrower. 
  
 “Revolving Commitment” shall mean the obligation of the Lender to make Revolving Loans to the Borrower in an aggregate principal amount not exceeding $20,000,000. 
  
 “Revolving Loan” shall mean a loan made by the Lender
to the Borrower under its Revolving Commitment, which will at all times be a Eurodollar Loan except under the circumstances set forth in Section 2.8 or Section 2.9 hereof. 
  

 7 

 “Revolving Credit Note” shall mean a promissory note of the Borrower payable to
the order of the Lender in the principal amount of the Revolving Commitment, in substantially the form of Exhibit A. 
  
 “Subsidiary” shall mean, with respect to any Person (the “parent”), any corporation, partnership, joint
venture, limited liability company, association or other entity the accounts of which would be consolidated with those of the parent in the parent’s consolidated financial statements if such financial statements were prepared in accordance with
GAAP as of such date, as well as any other corporation, partnership, joint venture, limited liability company, association or other entity (i) of which securities or other ownership interests representing more than 30% of the equity or more
than 30% of the ordinary voting power, or in the case of a partnership, more than 30% of the general partnership interests are, as of such date, owned, Controlled or held, or (ii) that is, as of such date, otherwise Controlled, by the parent or
one or more subsidiaries of the parent or by the parent and one or more subsidiaries of the parent. Unless otherwise indicated, all references to “Subsidiary” hereunder shall mean a Subsidiary of the Borrower. 
  
 “Synthetic Lease” of any Person shall mean (a) a
lease designed to have the characteristics of a loan for federal income tax purposes while obtaining operating lease treatment for financial accounting purposes, or (b) an agreement for the use or possession of property creating obligations
that are not required to appear on the balance sheet of such Person but which, upon the insolvency or bankruptcy of such Person would be characterized by a court of competent jurisdiction as indebtedness of such Person. 
  
 “Tangible Net Worth” shall mean, as of any date, the
total shareholders’ equity of the Borrower and its Subsidiaries that would be reflected on the Borrower’s consolidated balance sheet as of such date prepared in accordance with GAAP, minus the amount of all assets of the
Borrower and its Subsidiaries that would be classified as intangible assets (including without limitation goodwill and net core deposit intangible) on the Borrower’s consolidated balance sheet as of such date prepared in accordance with GAAP.

  
 “Total Loans” shall mean for the
Borrower on a consolidated basis the line item “Loans net of unearned income” set forth on the Borrower’s consolidated balance sheet delivered pursuant to Section 5.1(a) and (b). 
  
 “Total Tangible Assets” shall mean, as of any
date, the total assets of the Borrower and its Subsidiaries that would be reflected on the Borrower’s consolidated balance sheet as of such date prepared in accordance with GAAP, minus the amount of all assets of the Borrower and
its Subsidiaries that would be classified as intangible assets (including without limitation goodwill and net core deposit intangible) on the Borrower’s consolidated balance sheet as of such date prepared in accordance with GAAP. 
  
 “Withdrawal Liability” shall mean liability to a
Multiemployer Plan as a result of a complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of Subtitle E of Title IV of ERISA. 
  
 Section 1.2. Accounting Terms and Determination. Unless otherwise defined or 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 as in effect from time to time,
applied on a basis consistent (except for such changes approved by the Borrower’s independent public accountants) with the most recent audited consolidated financial statement of the Borrower delivered pursuant to
Section 5.1(a); provided, that if the Borrower notifies the Lender that the Borrower wishes to amend any covenant in Article VI to eliminate the effect of any change in GAAP on the operation of such covenant (or if the
Lender notifies the Borrower that it wishes to amend Article VI 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 is amended in a manner satisfactory to the Borrower and the Lender. 
  

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 Section 1.3. Terms Generally. The definitions of terms herein shall apply
equally to the singular and plural forms of the terms defined. The words “include”, “includes” and “including” shall be deemed to be followed by the phase “without limitation”. In the computation of periods of
time from a specified date to a later specified date, the word “from” means “from and including” and the word “to” means “to but excluding”. Unless the context requires otherwise (i) any definition of or
reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as it was originally executed or as it may from time to time be amended, supplemented or otherwise
modified (subject to any restrictions on such amendments, supplements or modifications set forth herein), (ii) any reference herein to any Person shall be construed to include such Person’s successors and permitted assigns, (iii) the
words “hereof”, “herein” and “hereunder” and words of similar import shall be construed to refer to this Agreement as a whole and not to any particular provision hereof, (iv) all references to Articles, Sections,
Exhibits and Schedules shall be construed to refer to Articles, Sections, Exhibits and Schedules to this Agreement and (v) all references to a specific time shall be construed to refer to the time in the city and state of the
Lender’s principal office, unless otherwise indicated. 
  
 ARTICLE II 
  
 AMOUNT AND TERMS OF THE
REVOLVING COMMITMENT 
  
 Section 2.1. Revolving
Loans and Revolving Credit Note. (a) Subject to the terms and conditions set forth herein, the Lender agrees to make Revolving Loans to the Borrower, from time to time during the Availability Period, in an aggregate principal amount
outstanding at any time not to exceed the Revolving Commitment. During the Availability Period, the Borrower shall be entitled to borrow, prepay and reborrow Revolving Loans in accordance with the terms and conditions of this Agreement;
provided, that the Borrower may not borrow or reborrow should there exist a Default or Event of Default. 
  
 (b) The Borrower’s obligation to pay the principal of, and interest on, Revolving Loans shall be evidenced by the records of the Lender and by the
Revolving Credit Note. The entries made in such records and/or on the schedule annexed to the Revolving Credit Note shall be prima facie evidence of the existence and amounts of the obligations of the Borrower therein recorded;
provided, that the failure or delay of the Lender in maintaining or making entries into any such record or on such schedule or any error therein shall not in any manner affect the obligation of the Borrower to repay the Revolving Loans (both
principal and unpaid accrued interest) in accordance with the terms of this Agreement. 
  
 Section 2.2. Procedure for Revolving Loans. The Borrower shall give the Lender written notice (or telephonic notice promptly confirmed in writing) of each Revolving Loan substantially in the
form of Exhibit 2.2 (a “Notice of Borrowing”) prior to 11:00 a.m. two (2) Business Days prior to which a Revolving Loan is being requested. Each Notice of Borrowing shall be irrevocable and shall specify:
(i) the principal amount of the Revolving Loan, and (ii) the proposed date of the Revolving Loan (which shall be a Business Day). Upon the satisfaction of the applicable conditions set forth in Article III hereof, the Lender will make the
proceeds of each Revolving Loan available to the Borrower at the Payment Office on the date specified in the applicable Notice of Borrowing by crediting an account maintained by the Borrower with the Lender or at the Borrower’s option, by
effecting a wire transfer of such amount to an account designated by the Borrower to the Lender. 
  

 9 

 Section 2.3. Optional Reduction and Termination and/or Extension of Revolving
Commitment. 
  
 (a) The Revolving Commitment shall
terminate on the Commitment Termination Date; provided, that the Commitment Termination Date may be extended by the Lender for additional 364-day periods in its sole discretion upon receiving a written request from the Borrower not earlier
than 60 days and not later than 45 days prior to then existing Commitment Termination Date for an extension. Upon the receipt of such request, the Lender shall use its best efforts to notify the Borrower not later than 30 days prior to any
Commitment Termination Date whether it will extend the then existing Commitment Termination Date for an additional 364-day period; provided, that the failure of the Lender to give any such notice to the Borrower shall mean that the then
existing Commitment Termination Date will not be so extended. 
  
 Section 2.4. Repayment and Prepayments of Revolving Loans.  
  
 (a) The outstanding principal amount of all Revolving Loans shall be due and payable (together with accrued and unpaid interest thereon) on the Commitment
Termination Date. 
  
 (b) The Borrower shall have the right at any
time and from time to time to prepay any Revolving Loan, in whole or in part, without premium or penalty, on any Business Day. 
  
 (c) All prepayments shall be applied first to any outstanding Base Rate Loans and then to Eurodollar Loans. 
  
 Section 2.5. Interest on Loans. 
  
 (a) The Borrower shall pay interest on each Eurodollar Loan at LIBOR,
plus0.95% per annum. If a Base Rate Loan shall be outstanding under the circumstances set forth in Section 2.8 or Section 2.9, then the Borrower shall pay interest on each Base Rate Loan at the Base Rate in effect from
time to time. 
  
 (b) While an Event of Default exists or after
acceleration, at the option of the Lender, the Borrower shall pay interest (“Default Interest”) with respect to all Eurodollar Loans at the rate otherwise applicable for the then-current Interest Period plus an additional
2% per annum until the last day of such Interest Period, and thereafter, and with respect to all Base Rate Loans and all other Obligations hereunder (other than Loans), at the Base Rate, plus 2% per annum. 
  
 (c) Interest on the principal amount of all Revolving Loans shall accrue from
and including the date such Revolving Loans are made to but excluding the date of any repayment thereof. Interest on Revolving Loans shall be payable on the last day of each March, June, September and December and on the Commitment Termination Date.
All Default Interest shall be payable on demand. 
  
 (d) The
Lender shall determine each interest rate applicable to the Revolving Loans hereunder and shall promptly notify the Borrower of such rate in writing (or by telephone, promptly confirmed in writing). Any such determination shall be conclusive and
binding for all purposes, absent manifest error. 
  
 Section 2.6. Fees. The Borrower agrees to pay to the Lender a commitment fee, which shall accrue at 0.10% per annum on the daily amount of the unused Revolving Commitment during the Availability Period. Accrued
commitment fees shall be payable in arrears on the last day of each March, June, September and December of each year and on the Commitment Termination Date, commencing on December 31, 2005. 
  
 Section 2.7. Computation of Interest and Fees. All
computations of interest and fees hereunder shall be made on the basis of a year of 360 days for the actual number of days (including the first day but excluding the last day) occurring in the period for which such interest or fees are payable
(to the extent computed on the basis of days elapsed). Each determination by the Lender of an interest amount or fee hereunder shall be made in good faith and, except for manifest error, shall be final, conclusive and binding for all purposes.

  

 10 

 Section 2.8. Inability to Determine Interest Rates. If prior to the commencement of
any Interest Period for any Eurodollar Loan, the Lender shall have determined (which determination shall be conclusive and binding upon the Borrower) that (a) by reason of circumstances affecting the relevant interbank market, adequate
means do not exist for ascertaining LIBOR for such Interest Period, or (b) LIBOR does not adequately and fairly reflect the cost to the Lender of making, funding or maintaining its Eurodollar Loans for such Interest Period, the Lender shall
give written notice (or telephonic notice, promptly confirmed in writing) to the Borrower as soon as practicable thereafter. Until the Lender notifies the Borrower that the circumstances giving rise to such notice no longer exist, (x) the
obligation of the Lender to make Eurodollar Loans or to continue outstanding Revolving Loans as Eurodollar Loans shall be suspended and (y) all such affected Revolving Loans shall be converted into Base Rate Loans on the last day of the then
current Interest Period unless the Borrower elects to prepay such Revolving Loans in accordance with this Agreement. 
  
 Section 2.9. Illegality. If any Change in Law shall make it unlawful or impossible for the Lender to make, maintain or fund any
Eurodollar Loan, the Lender shall promptly give notice thereof to the Borrower, whereupon until the Lender notifies the Borrower that the circumstances giving rise to such suspension no longer exist, the obligation of the Lender to make Eurodollar
Loans, or to continue any outstanding Revolving Loans as Eurodollar Loans, shall be suspended. Any new Revolving Loan shall be made as a Base Rate Loan and all then outstanding Eurodollar Loans shall be converted to a Base Rate Loan either
(x) on the last day of the then current Interest Period if the Lender may lawfully continue to maintain such Eurodollar Loans to such date or (y) immediately if the Lender shall determine that it may not lawfully continue to maintain such
Eurodollar Loans to such date. 
  
 Section 2.10.
Increased Costs. 
  
 (a) If any Change
in Law shall: 
  
 (i) impose, modify or deem
applicable any reserve, special deposit or similar requirement that is not otherwise included in the determination of LIBOR hereunder against assets of, deposits with or for the account of, or credit extended by, the Lender (except any such reserve
requirement reflected in the calculation of LIBOR); or 
  
 (ii) impose on the Lender or the eurodollar interbank market any other condition affecting this Agreement or any Eurodollar Loans made by the Lender; and the result of the foregoing is to increase the cost to the Lender of making,
continuing or maintaining a Eurodollar Loan or to reduce the amount received or receivable by the Lender hereunder (whether of principal, interest or any other amount), then the Borrower shall promptly pay, upon written notice from and demand by the
Lender, within five Business Days after the date of such notice and demand, additional amount or amounts sufficient to compensate the Lender for such additional costs incurred or reduction suffered. 
  
 (b) If the Lender shall have determined that on or after the date of this
Agreement any Change in Law regarding capital requirements has or would have the effect of reducing the rate of return on the Lender’s capital (or on the capital of the Lender’s parent corporation) as a consequence of its obligations
hereunder to a level below that which the Lender or the Lender’s parent corporation could have achieved but for such Change in Law (taking into consideration the Lender’s policies or the policies of the Lender’s parent corporation
with respect to capital adequacy) then, from time to time, within five (5) Business Days after receipt by the Borrower of written demand by the Lender, the Borrower shall pay to the Lender such additional amounts as will compensate the Lender
or the Lender’s parent corporation for any such reduction suffered. 
  

 11 

 (c) A certificate of the Lender setting forth the amount or amounts necessary to compensate the Lender or
its parent corporation, as the case may be, specified in paragraph (a) or (b) of this Section shall be delivered to the Borrower and shall be conclusive, absent manifest error. The Borrower shall pay the Lender such amount or amounts
within 10 days after receipt thereof. 
  
 (d) Failure or delay on
the part of the Lender to demand compensation pursuant to this Section shall not constitute a waiver of the Lender’s right to demand such compensation. 
  
 Section 2.11. Payments Generally. The Borrower shall make each payment required to be made by it hereunder (whether of principal,
interest, fees, or of amounts payable under Section 2.10 or otherwise) prior to 12:00 noon, on the date when due, in immediately available funds, without set-off or counterclaim. Any amounts received after such time on any date may, in
the discretion of the Lender, be deemed to have been received on the next succeeding Business Day for purposes of calculating interest thereon. All such payments shall be made to the Lender at its Payment Office. If any payment hereunder shall be
due on a day that is not a Business Day, the date for payment shall be extended to the next succeeding Business Day, and, in the case of any payment accruing interest, interest thereon shall be made payable for the period of such extension. All
payments hereunder shall be made in Dollars. 
  
 ARTICLE III

  
 CONDITIONS PRECEDENT TO REVOLVING LOANS

  
 Section 3.1. Conditions To Initial
Revolving Loan. The obligation of the Lender to make the initial Revolving Loan hereunder is subject to the receipt by the Lender of the following documents in form and substance reasonably satisfactory to the Lender: 
  
 (a) this Agreement duly executed and delivered by the Borrower; 

 
 (b) a duly executed Revolving Credit Note; 
  
 (c) a duly executed Pledge Agreement granting a security interest in American
Banking Company (to be renamed Ameris Bank following the combination of seven Financial Institution Subsidiaries into a single charter), together with stock powers signed in blank, representing 100% of the shares of stock of American Banking
Company; 
  
 (d) a certificate of the Secretary or Assistant
Secretary of the Borrower, attaching and certifying copies of its bylaws and of the resolutions of its boards of directors, authorizing the execution, delivery and performance of the Loan Documents and certifying the name, title and true signature
of each officer of the Borrower authorized to execute the Loan Documents; 
  
 (e) certified copies of the articles of incorporation of the Borrower, together with good standing certificates (or the equivalent) as may be available from the Secretary of State of the jurisdiction of incorporation
of the Borrower and American Banking Company and each other jurisdiction where the Borrower or such Subsidiary is required to be qualified to do business as a foreign corporation; 
  
 (f) a favorable written opinion of Rogers & Hardin LLP, counsel to the Borrower, addressed to the Lender, and
covering such matters relating to the Borrower, the Loan Documents and the transactions contemplated therein as the Lender shall reasonably request; and 
  

 12 

 (g) a duly executed funds disbursement agreement. 
  
 Section 3.2. Each Revolving Loan. The obligation of
the Lender to make each Revolving Loan is subject to the satisfaction of the following conditions: 
  
 (a) at the time of and immediately after giving effect to such Revolving Loan, no Default or Event of Default shall exist; 
  
 (b) all representations and warranties of the Borrower herein shall be true
and correct in all material respects on and as of the date of such Revolving Loan both before and after giving effect thereto; 
  
 (c) since December 31, 2004, there shall have been no change which has had or could reasonably be expected to have a Material Adverse Effect;

  
 (d) the Lender shall have received a duly executed Notice of
Borrowing in accordance with Section 2.2 hereof; and 
  
 (e) the Lender shall have received such other documents, certificates, information or legal opinions as it may reasonably request, all in form and substance reasonably satisfactory to the Lender. 
  
 The making of each Revolving Loan shall be deemed to constitute a
representation and warranty by the Borrower on the date thereof as to the matters specified in paragraphs (a), (b) and (c) of this Section 3.2. 
  
 ARTICLE IV 
  
 REPRESENTATIONS AND WARRANTIES 
  
 The Borrower represents and warrants to the Lender as follows: 
  

Section 4.1. Existence; Power. Each of the Borrower and each of its Subsidiaries (i) is duly organized, validly
existing and in good standing as a corporation under the laws of the jurisdiction of its organization, (ii) has all requisite power and authority to carry on its business as now conducted, and (iii) is duly qualified to do business, and is
in good standing, in each jurisdiction where such qualification is required, except where a failure to be so qualified could not reasonably be expected to result in a Material Adverse Effect. 
  
 Section 4.2. Organizational Power; Authorization. The
execution, delivery and performance by the Borrower of each of the Loan Documents are within the Borrower’s corporate powers and have been duly authorized by all necessary corporate, and if required, stockholder, action. This Agreement has been
duly executed and delivered by the Borrower and constitutes, and each other Loan Document when executed and delivered by the Borrower will constitute, valid and binding obligations of the Borrower, enforceable against it in accordance with their
respective terms, except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws affecting the enforcement of creditors’ rights generally and by general principles of equity. 
  
 Section 4.3. Governmental Approvals; No Conflicts.
The execution, delivery and performance by the Borrower of this Agreement and the other Loan Documents (a) do not require any consent or approval of, registration or filing with, or any action by, any Governmental Authority, except those as
have 
  

 13 

 been obtained or made and are in full force and effect, (b) will not violate any applicable law or regulation or the
articles of incorporation or by-laws of the Borrower or any order of any Governmental Authority, (c) will not violate or result in a default under any indenture, material agreement or other material instrument binding on the Borrower or any of
its Subsidiaries or any of its assets or give rise to a right thereunder to require any payment to be made by the Borrower or any of its Subsidiaries and (d) will not result in the creation or imposition of any Lien on any asset of the Borrower
or any of its Subsidiaries, except Liens (if any) created under the Loan Documents. 
  
 Section 4.4. Financial Statements. The Borrower has furnished to the Lender (i) the audited consolidated balance sheet of the Borrower and its Subsidiaries as of December 31, 2004
and the related consolidated statements of income, shareholders’ equity and cash flows for the fiscal year then ended prepared by Mauldin & Jenkins, LLC and (ii) the unaudited consolidated balance sheet of the Borrower and its
Subsidiaries as at the end of June 30, 2005, and the related unaudited consolidated statements of income and cash flows for the fiscal quarter and year-to-date period then ending, certified by a Responsible Officer. Such financial statements
fairly present, in all material respects, the consolidated financial position of the Borrower and its Subsidiaries as of such dates and the consolidated results of operations and cash flows for such periods in conformity with GAAP consistently
applied, subject to year end audit adjustments and the absence of footnotes in the case of the statements referred to in clause (ii). Since December 31, 2004, there have been no changes with respect to the Borrower and its Subsidiaries which
have had or could reasonably be expected to have, singly or in the aggregate, a Material Adverse Effect. 
  
 Section 4.5. Litigation Matters. No litigation, investigation or proceeding of or before any arbitrators or Governmental Authorities is
pending against, or, to the knowledge of the Borrower, threatened against or affecting the Borrower or any of its Subsidiaries (i) as to which there is a reasonable possibility of an adverse determination that could reasonably be expected to
have, either individually or in the aggregate, a Material Adverse Effect or (ii) which in any manner draws into question the validity or enforceability of this Agreement or any other Loan Document. 
  
 Section 4.6. Compliance with Laws and Agreements. The
Borrower and each Subsidiary is in compliance with (a) all applicable laws (including without limitation all Environmental Laws and all federal and state banking statutes) and all rules, regulations (including without limitation all federal and
state banking regulations) and orders of any Governmental Authority, and (b) all indentures, agreements or other instruments binding upon it or its properties, except where non-compliance, either singly or in the aggregate, could not reasonably
be expected to result in a Material Adverse Effect. 
  
 Section 4.7. Investment Company Act, Etc. Neither the Borrower nor any of its Subsidiaries is (a) an “investment company”, as defined in, or subject to regulation under, the Investment Company Act of 1940,
as amended, or (b) a “holding company” as defined in, or subject to regulation under, the Public Utility Holding Company Act of 1935, as amended. 
  

Section 4.8. Taxes. The Borrower and its Subsidiaries have timely filed or caused to be filed all Federal income tax returns and all
other material tax returns that are required to be filed by them, and have paid all taxes shown to be due and payable on such returns or on any assessments made against it or its property and all other taxes, fees or other charges imposed on it or
any of its property by any Governmental Authority, except (i) to the extent the failure to do so would not have a Material Adverse Effect or (ii) where the same are currently being contested in good faith by appropriate proceedings and for
which the Borrower or such Subsidiary, as the case may be, has set aside on its books adequate reserves. 
  
 Section 4.9. Margin Regulations. None of the proceeds of any of the Revolving Loans will be used for “purchasing” or
“carrying” any “margin stock” with the respective meanings of each of such terms under Regulation U as now and from time to time hereafter in effect or for any purpose that violates the provisions of Regulation U. 
  

 14 

 Section 4.10. ERISA. No ERISA Event has occurred or is reasonably expected to occur
that, when taken together with all other such ERISA Events for which liability is reasonably expected to occur, could reasonably be expected to result in a Material Adverse Effect. The present value of all accumulated benefit obligations under each
Plan (based on the assumptions used for purposes of Statement of Financial Standards No. 87) did not, as of the date of the most recent financial statements reflecting such amounts, exceed the fair market value of the assets of all such Plan,
and the present value of all accumulated benefit obligations of all underfunded Plans (based on the assumptions used for purposes of Statement of Financial Standards No. 87) did not, as of the date of the most recent financial statements
reflecting such amounts, exceed the fair market value of the assets of all such underfunded Plans. 
  
 Section 4.11. Disclosure. The Borrower has disclosed to the Lender all agreements, instruments, and corporate or other restrictions to
which the Borrower or any of its Subsidiaries is subject, and all other matters known to any of them, that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect. None of the reports (including without
limitation all reports that the Borrower is required to file with the Securities and Exchange Commission), financial statements, certificates or other information furnished by or on behalf of the Borrower to the Lender in connection with the
negotiation of this Agreement or any other Loan Document or delivered hereunder or thereunder (as modified or supplemented by any other information so furnished) contains any material misstatement of fact or omits to state any material fact
necessary to make the statements therein, taken as a whole, in light of the circumstances under which they were made, not misleading. 
  
 Section 4.12. Subsidiaries. Schedule 4.12 sets forth the name of, the ownership interest of the Borrower in, and the jurisdiction of
incorporation of, each Financial Institution Subsidiary and each other Subsidiary, in each case as of the Closing Date. 
  
 Section 4.13. Dividend Restrictions; Other Restrictions. (a) No Financial Institution Subsidiary has violated any applicable
regulatory restrictions on dividends, and no Governmental Authority has taken any action to restrict the payment of dividends by any Financial Institution Subsidiary. 
  
 (b) Neither the Borrower nor any Subsidiary is under investigation by, or is operating under any restrictions (excluding any
restrictions on the payment of dividends referenced in subsection (a) above) imposed by or agreed to with, any Governmental Authority, other than routine examinations by such Governmental Authorities. 
  
 Section 4.14. Capital Measures. On the Closing Date, both
the Borrower and each Financial Institution Subsidiary have been, or are deemed to have been, notified by the appropriate Governmental Authority having regulatory authority over each of them that each of them is “well capitalized”, as
determined in accordance with any regulations established by such Governmental Authority. 
  
 Section 4.15. FDIC Insurance. The deposits of each Financial Institution Subsidiary that is an “insured depository institution” (within the meaning of § 12 U. S. C. 1831(c)) are
insured by the FDIC and no act has occurred that would adversely affect the status of such Financial Institution Subsidiary as an FDIC insured bank. 
  
 Section 4.16. OFAC. Neither the Borrower nor any of its Subsidiaries (i) is a person whose property or interest in property is
blocked or subject to blocking pursuant to Section 1 of Executive Order 13224 of September 23, 2001 Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079
(2001)), (ii) engages in any dealings or 
  

 15 

 transactions prohibited by Section 2 of such executive order, or is otherwise associated with any such person in any
manner violative of Section 2 or (iii) is a person on the list of Specially Designated Nationals and Blocked Persons or subject to the limitations or prohibitions under any other U.S. Department of Treasury’s Office of Foreign Assets
Control regulation or executive order. 
  
 Section 4.17.
Patriot Act. Each of the Borrower and its Subsidiaries is in compliance, in all material respects, with (i) the Trading with the Enemy Act, as amended, and each of the foreign assets control regulations of the United States Treasury
Department (31 CFR, Subtitle B, Chapter V, as amended) and any other enabling legislation or executive order relating thereto and (ii) the Uniting And Strengthening America By Providing Appropriate Tools Required To Intercept And Obstruct
Terrorism (USA Patriot Act of 2001). No part of the proceeds of the Obligations will be used, directly or indirectly, for any payments to any governmental official or employee, political party, official of a political party, candidate for political
office, or anyone else acting in an official capacity, in order to obtain, retain or direct business or obtain any improper advantage, in violation of the United States Foreign Corrupt Practices Act of 1977, as amended. 
  
 ARTICLE V 
  
 AFFIRMATIVE COVENANTS 
  
 The Borrower covenants and agrees that so long as the Lender has a Revolving
Commitment hereunder or the principal of and interest on any Revolving Loan or any fee remains unpaid: 
  
 Section 5.1. Financial Statements and Other Information. The Borrower will deliver to the Lender: 
  
 (a) as soon as available and in any event within 90 days after the end of
each fiscal year of Borrower, a copy of the annual audited report for such fiscal year for the Borrower and its Subsidiaries, containing (i) a consolidated balance sheet and the related consolidated statements of income, of changes in
shareholders’ equity and of cash flows (together with all footnotes thereto), and (ii) a condensed balance sheet of the Borrower only and the related condensed statements of income and of cash flows, setting forth in each case in
comparative form the figures for the previous fiscal year, all in reasonable detail and reported on by Mauldin & Jenkins, LLC or other independent public accountants of nationally recognized standing (without a “going concern” or
like qualification, exception or explanation and without any qualification or exception as to scope of such audit) to the effect that such financial statements present fairly in all material respects the financial condition and the results of
operations and cash flows on a consolidated basis of the Borrower for such fiscal year in accordance with GAAP and that the examination by such accountants in connection with such financial statements has been made in accordance with generally
accepted auditing standards; 
  
 (b) as soon as available and in
any event within 45 days after the end of each of the first three fiscal quarters of each fiscal year of the Borrower, an unaudited balance sheet of the Borrower and its Subsidiaries on a consolidated basis and of the Borrower on a stand alone basis
as of the end of such fiscal quarter and the related unaudited statements of income and cash flows of the Borrower and its Subsidiaries on a consolidated basis and of the Borrower on a stand alone basis, each for such fiscal quarter and the then
elapsed portion of such fiscal year, setting forth in each case in comparative form the figures for the corresponding quarter and the corresponding portion of Borrower’s previous fiscal year, all certified by the chief financial officer or
treasurer of the Borrower as presenting fairly in all material respects the financial condition and results of operations of the Borrower and its Subsidiaries on a consolidated basis and of the Borrower on a stand alone basis in accordance with
GAAP, subject to normal year-end audit adjustments and the absence of footnotes; 
  

 16 

 (c) concurrently with the delivery of the financial statements referred to in clauses (a) and
(b) above, a certificate of a Responsible Officer, (i) certifying as to whether there exists a Default or Event of Default on the date of such certificate, and if a Default or an Event of Default then exists, specifying the details thereof
and the action which the Borrower has taken or proposes to take with respect thereto, and (ii) setting forth in reasonable detail calculations demonstrating compliance with Article VI; 
  
 (d) concurrently with the delivery of the financial statements referred to in
clauses (a) and (b) above, duly executed copies of the Borrower’s then-current FR Report Y-9C and FR Report Y-9LP and a duly executed copy of the then-current Call Report for each Financial Institution Subsidiary; 
  
 (e) promptly after the same become publicly available, copies of all periodic
and other reports, proxy statements and other materials filed with the Securities and Exchange Commission, or any Governmental Authority succeeding to any or all functions of said Commission, or with any national securities exchange, or distributed
by the Borrower to its shareholders generally, as the case may be; and 
  
 (f) promptly following any request therefor, such other information regarding the results of operations, business affairs and financial condition of the Borrower or any Subsidiary as the Lender may reasonably request. 
  
 Section 5.2. Notices of Material Events. The Borrower will
furnish to the Lender prompt written notice of the following: 
  
 (a) the occurrence of any Default or Event of Default; 
  
 (b) the filing or commencement of any action, suit or proceeding by or before any arbitrator or Governmental Authority against or, to the knowledge of the Borrower, affecting the Borrower or any Subsidiary which, if adversely determined,
could reasonably be expected to result in a Material Adverse Effect; 
  
 (c) the occurrence of any ERISA Event that alone, or together with any other ERISA Events that have occurred, could reasonably be expected to result in liability of the Borrower and its Subsidiaries in an aggregate amount exceeding
$500,000; 
  
 (d) any investigation of the Borrower or any
Subsidiary by any Governmental Agency having regulatory authority over the Borrower or any such Subsidiary (other than routine examinations of the Borrower and/or any such Subsidiary); 
  
 (e) the issuance of any cease and desist order, written agreement, cancellation of insurance or other public or enforcement
action by the FDIC or other Governmental Authority having regulatory authority over the Borrower or any Subsidiary; 
  
 (f) the issuance of any memorandum of understanding or proposed disciplinary action by or from any Governmental Authority having regulatory authority over
the Borrower or any Subsidiary, to the extent that the Borrower or any such Subsidiary is permitted to disclose such information (provided that the Borrower shall take all reasonable efforts to obtain any necessary regulatory consents); 

 
 (e) any other development that results in, or could reasonably be expected
to result in, a Material Adverse Effect. 
  
 Each notice delivered
under this Section shall be accompanied by a written statement of a Responsible Officer setting forth the details of the event or development requiring such notice and any action taken or proposed to be taken with respect thereto. 
  

 17 

 Section 5.3. Existence; Conduct of Business; Management. The Borrower will, and will
cause each of its Subsidiaries to, do or cause to be done all things necessary to preserve, renew and maintain in full force and effect its legal existence and its respective rights, licenses, permits, privileges, franchises, patents, copyrights,
trademarks and trade names material to the conduct of its business and will continue to engage in the same business as presently conducted or such other businesses that are reasonably related thereto; provided, that nothing in this Section
shall prohibit any transaction permitted under Section 7.3. The Borrower will, and will cause each of its Subsidiaries to, retain a Chief Executive Officer, Chief Financial Officer and other senior management team of professionals with
such skills and experience as shall be sufficient to manage the respective affairs of the Borrower and its Subsidiaries. 
  
 Section 5.4. Compliance with Laws, Etc. The Borrower will, and will cause each of its Subsidiaries to, comply with all laws, rules,
regulations and requirements of any Governmental Authority (including without limitation all federal and state banking statutes and regulations) applicable to its assets, except where the failure to do so, either individually or in the aggregate,
could not reasonably be expected to result in a Material Adverse Effect. 
  
 Section 5.5. Books and Records. The Borrower will, and will cause each of its Subsidiaries to, keep proper books of record and account in which full, true and correct entries shall be made of all
dealings and transactions in relation to its business and activities to the extent necessary to prepare the consolidated financial statements of Borrower in conformity with GAAP. 
  
 Section 5.6. Visitation, Inspection, Etc. The Borrower will, and will cause each of its Subsidiaries to,
permit any representative of the Lender to visit and inspect its properties, to examine its books and records and to make copies and take extracts therefrom, and to discuss its affairs, finances and accounts with any of its officers and with its
independent certified public accountants, all at such reasonable times and as often as the Lender may reasonably request after reasonable prior notice to the Borrower. 
  
 Section 5.7. Maintenance of Properties; Insurance. (a) The Borrower will, and will cause each of its
Subsidiaries to, (i) keep and maintain all property material to the conduct of its business in good working order and condition, ordinary wear and tear excepted, except where the failure to do so, either individually or it the aggregate, could
not reasonably be expected to result in a Material Adverse Effect and (ii) maintain with financially sound and reputable insurance companies, insurance with respect to its properties and business, and the properties and business of its
Subsidiaries, against loss or damage of the kinds customarily insured against by companies in the same or similar businesses operating in the same or similar locations. 
  
 (b) The deposits of each Financial Institution Subsidiary will at all times be insured by the Federal Deposit Insurance
Corporation (“FDIC”). 
  
 Section 5.8. Use of Proceeds. The Borrower will use the proceeds of all Revolving Loans to finance working capital needs (including without limitation Acquisitions) and for other general corporate purposes of the Borrower
and its Subsidiaries. No part of the proceeds of any Revolving Loan will be used, whether directly or indirectly, for any purpose that would violate any rule or regulation of the Board of Governors of the Federal Reserve System, including Regulation
T, U or X. 
  
 Section 5.9. Payment of
Obligations. The Borrower will, and will cause each of its Subsidiaries to, pay and discharge at or before maturity, all of its obligations and liabilities (including without limitation all tax liabilities and claims that could result in a
statutory Lien) before the same shall become delinquent or in default, except where (a) the validity or amount thereof is being contested in good faith by appropriate proceedings, (b) the Borrower or such Subsidiary has set aside on its
books adequate reserves with respect thereto in accordance with GAAP and (c) the failure to make payment pending such contest could not reasonably be expected to result in a Material Adverse Effect. 
  

 18 

 ARTICLE VI 
  
 FINANCIAL COVENANTS 
  
 The Borrower covenants and agrees that so long as the Lender has its Revolving Commitment hereunder or the principal of or interest on or any Revolving
Loan remains unpaid or any fee remains unpaid: 
  
 Section 6.1. Return on Average Assets. The Borrower on a consolidated basis will have at the end of each Fiscal Quarter a calendar year-to-date Return on Average Assets of not less than 0.80% at December 31, 2005,
0.85% at June 30, 2006, and 0.90% at the end of each Fiscal Quarter thereafter, determined in accordance with GAAP and as disclosed in Borrower’s consolidated financial statements. 
  
 Section 6.2. Nonperforming Assets. The Borrower on a
consolidated basis will not permit at the end of each Fiscal Quarter Nonperforming Assets to be greater than 1.50% of the sum of Total Loans (excluding loans held for sale) and Other Real Estate Owned. 
  
 Section 6.3. Capital Measures. (a) The Borrower will
be “well-capitalized” for all applicable state and federal regulatory purposes at all times, and the Borrower (i) will have a Total Risk-based Capital Ratio of 10.0% or greater, a Tier 1 Risk-based Capital Ratio of 6.0% or greater,
and a Tier I Leverage Ratio of 8.0% or greater (each as defined by applicable federal and state regulations or orders), and will not be subject to any written agreement, order, capital directive or prompt corrective action directive by any
Governmental Authority having regulatory authority over the Borrower or (ii) if required by any Governmental Authority having regulatory authority over the Borrower in order to remain “well capitalized” and in compliance with all
applicable regulatory requirements, will have such higher amounts of Total Risk-based Capital and Tier 1 Risk-based Capital and/or such greater Leverage Ratio as specified by such Governmental Authority. 
  
 (b) Each Financial Institution Subsidiary of the Borrower will be “well
capitalized” for all applicable state and federal regulatory purposes at all times, and such Financial Institution Subsidiary (i) will have a Total Risk-based Capital Ratio of 10.0% or greater, a Tier 1 Risk-based Capital Ratio of 6.0% or
greater, and a Tier I Leverage Ratio of 5.0% or greater (each as defined by applicable federal and state regulations or orders) and not be subject to any written agreement, order, capital directive or prompt corrective action directive by any
Governmental Authority having regulatory authority over such Financial Institution Subsidiary or (ii) if required by any Governmental Authority having regulatory authority over such Financial Institution Subsidiary in order to remain “well
capitalized” and in compliance with all applicable regulatory requirements, will have such higher amounts of Total Risk-based Capital and Tier 1 Risk-based Capital and/or such greater Leverage Ratio as specified by such Governmental Authority.

  
 (c) Notwithstanding the foregoing, if at any time any such
Governmental Authority changes the definition of “well capitalized” either by amending such ratios or otherwise, such amended definition, and any such amended or new ratios, shall automatically be incorporated by reference into this
Agreement as the minimum standard for the Borrower or any Financial Institution Subsidiary, as the case may be, on and as of the date that any such amendment becomes effective by applicable statute, regulation, order or otherwise. 
  
 Section 6.4. Allowance for Loan and Lease Losses to Nonperforming
Loans. The Borrower on a consolidated basis will maintain at all times an Allowance for Loan and Lease Losses equal to or greater than 150% of Nonperforming Loans. 
  

 19 

 Section 6.5. Tangible Net Worth to Total Tangible Assets Ratio. The Borrower on a
consolidated basis will maintain at all times a ratio of Tangible Net Worth to Total Tangible Assets of not less than 6.00% from the Closing Date to the Commitment Termination Date. 
  
 Section 6.6. Tangible Net Worth. The Borrower on a consolidated basis will maintain at all times a
Tangible Net Worth of not less than $95,000,000 from the Closing Date to December 31, 2006, and not less than $100,000,000 thereafter until the Commitment Termination Date. 
  
 Section 6.7. Net Charge-Offs to Average Loans. The Borrower on a consolidated basis will not permit at
the end of each Fiscal Quarter the ratio of Net Charge-Offs to Average Loans to exceed 0.50%. 
  
 ARTICLE VII 
  
 NEGATIVE COVENANTS 
  
 The Borrower
covenants and agrees that so long as the Lender has its Revolving Commitment hereunder or the principal of or interest on any Revolving Loan remains unpaid or any fee remains unpaid: 
  
 Section 7.1. Indebtedness. The Borrower will not, and will not permit any of its Subsidiaries to, create,
incur, assume or suffer to exist any Indebtedness, except: 
  
 (a) Indebtedness created pursuant to the Loan Documents; 
  
 (b) Indebtedness existing on the date hereof and set forth on Schedule 7.1 and extensions, renewals and replacements of any such Indebtedness that do not increase the outstanding principal amount thereof (immediately prior to giving
effect to such extension, renewal or replacement) or shorten the maturity or the weighted average life thereof; 
  
 (c) Indebtedness of any Financial Institution Subsidiary (i) to the Federal Reserve Board or to the Federal Home Loan Bank Board or
(ii) constituting federal funds purchased and securities sold under agreements to repurchase incurred in the ordinary course of business or (iii) otherwise incurred in the ordinary course of its banking business; 
  
 (d) Indebtedness constituting obligations of the Borrower and any Financial
Institution Subsidiary under debentures, indentures, trust agreements and guarantees in connection with the issuance by such Persons of trust preferred securities; 
  
 (e) (i) Indebtedness owed by the Borrower or any “affiliate” of the Borrower (as defined in Regulation W of
the FRB and sections 23A and 23B of the Federal Reserve Act) to any Financial Institution Subsidiary not in violation of Regulation W of the FRB (as amended, supplemented or otherwise modified), or (ii) Indebtedness owed by any Subsidiary to
the Borrower or (iii) Indebtedness owed by the Borrower or any Subsidiary to a Subsidiary other than a Financial Institution Subsidiary; 
  
 (f) Any other Indebtedness that is subordinated to the Indebtedness under this Agreement on the following terms: (i) no part of the principal of such
Indebtedness is stated to be payable or is required to be paid (whether by way of mandatory sinking fund, mandatory redemption, mandatory prepayment or otherwise) prior to the Commitment Termination Date and the payment of principal of which and any
other obligations of the Borrower with respect thereof (other than interest subject to clause (f)(ii)) are subordinated to the prior payment in full of principal and interest (including post-petition interest) and all other obligations and

  

 20 

 amounts of the Borrower to the Lender hereunder on terms and conditions first approved in writing by the Lender,
(ii) no part of the interest accruing on such Indebtedness is payable, without the prior written consent of the Lender, after a Default or Event of Default has occurred and is continuing, and (iii) such Indebtedness otherwise contains
terms, covenants and conditions in form and substance reasonably satisfactory to the Lender as evidenced by its prior written approval thereof; and 
  
 (g) Indebtedness consisting of (a) Hedging Agreements entered into by the Borrower in the ordinary course of business to hedge or mitigate risks in
connection with interest rate fluctuations on its Indebtedness and (b) Hedging Agreements entered into by any Financial Institution Subsidiary in the ordinary course of its business. 
  
 Section 7.2. Negative Pledge . The Borrower will not, and will not permit any of its Subsidiaries to,
create, incur, assume or suffer to exist any Lien on any of its assets or property now owned or hereafter acquired (including without limitation in the case of the Borrower, the capital stock of any Financial Institution Subsidiary), except:

  
 (a) Liens (if any) created in favor of the Lender pursuant to
the Loan Documents; 
  
 (b) Permitted Encumbrances; 
  
 (c) Liens granted to secure any Indebtedness incurred pursuant to
Section 7.1(c) (as long as in the case of Section 7.1(c)(ii), such Lien shall only extend to those securities sold) and Section 7.1(e); and 
  
 (d) extensions, renewals, or replacements of any Lien referred to in paragraphs (a), (b) and (c) of this Section. 
  
 Section 7.3. Fundamental Changes. 
  
 (a) The Borrower will not, and will not permit any Subsidiary to, merge into
or consolidate into any other Person, or permit any other Person to merge into or consolidate with it, or sell, lease, transfer or otherwise dispose of (in a single transaction or a series of transactions) all or substantially all of its assets
(other than in the ordinary course of business) or all or substantially all of the stock of any of its Subsidiaries or liquidate or dissolve; provided, that if at the time thereof and immediately after giving effect thereto, no Default
or Event of Default shall have occurred and be continuing (as shown by pro forma covenant compliance provided by Borrower and approved by Lender), (i) the Borrower or any Subsidiary may merge with a Person if the Borrower (or such Subsidiary or
another Subsidiary, in either case if the Borrower is not a party to such merger) is the surviving Person, (ii) any Subsidiary may sell, lease, transfer or dispose of its assets to the Borrower or another Subsidiary, provided, that any
Financial Institution Subsidiary may sell loans, investments or other assets in the ordinary course of its business, and (iii) the Borrower may sell or transfer by way of merger all of the stock of any Subsidiary to another Person following the
transfer to the Borrower (or another Subsidiary) of all or substantially all of the assets of such Subsidiary. 
  
 (b) The Borrower will not, and will not permit any of its Subsidiaries to, engage to any material extent in any business other than businesses of the type
conducted by the Borrower and its Subsidiaries on the date hereof and businesses reasonably related thereto and any types of businesses that are expressly permitted by any Governmental Authority having jurisdiction over the Borrower and/or any
Financial Institutions Subsidiary. 
  
 Section 7.4.
Restricted Payments. Upon the occurrence and during the continuation of any Default or Event of Default, and so long as such action would not cause a Default or Event of Default, the Borrower will not, and will not permit its
Subsidiaries to, declare or make, or agree to pay or make, directly or 
  

 21 

 indirectly, any dividend on any class of its stock, or make any payment on account of, or set apart assets for a sinking
or other analogous fund for, the purchase, redemption, retirement, defeasance or other acquisition of, any shares of common stock or Indebtedness subordinated to the Obligations of the Borrower or any options, warrants, or other rights to purchase
such common stock or such Indebtedness, whether now or hereafter outstanding; provided, that any Subsidiary may pay dividends to the Borrower at any time. 
  
 Section 7.5. Restrictive Agreements. The Borrower will not, and will not permit any Subsidiary to,
directly or indirectly, enter into, incur or permit to exist any agreement that prohibits, restricts or imposes any condition upon (a) the ability of the Borrower or any Subsidiary to create, incur or permit any Lien upon any of its assets or
properties, whether now owned or hereafter acquired, or (b) the ability of any Subsidiary to pay dividends or other distributions with respect to its common stock, to make or repay loans or advances to the Borrower or any other Subsidiary,
to guarantee Indebtedness of the Borrower or any other Subsidiary or to transfer any of its property or assets to the Borrower or any Subsidiary of the Borrower; provided, that (i) the foregoing shall not apply to restrictions or
conditions imposed by law or by this Agreement or any other Loan Document, (ii) the foregoing shall not apply to customary restrictions and conditions contained in agreements relating to the sale of a Subsidiary pending such sale, provided
such restrictions and conditions apply only to the Subsidiary that is sold and such sale is permitted hereunder, and (iii) clause (a) shall not apply to customary provisions in leases restricting the assignment thereof. 
  
 Section 7.6. Investments, Etc The Borrower will not, and
will not permit any of its Subsidiaries to, purchase, hold or acquire (including pursuant to any merger with any Person that was not a wholly-owned Subsidiary prior to such merger), any common stock, Indebtedness or other securities (including any
option, warrant, or other right to acquire any of the foregoing) of, make or permit to exist any loans or advances to, Guarantee any obligations of, or make or permit to exist any investment or any other interest in, any other Person (all of the
foregoing being collectively called “Investments”), or purchase or otherwise acquire (in one transaction or a series of transactions) any assets of any other Person that constitute a business unit, except: 
  
 (a) Investments existing on the date hereof (including Investments in
Subsidiaries) that have been disclosed to the Lender and/or that are set forth on the most current financial statements that have been delivered to the Lender; 
  

(b) Investments purchased in the ordinary course of business by any Financial Institution Subsidiary; 
  
 (c) Investments made by the Borrower in or to any Subsidiary and by any
Subsidiary in or to the Borrower or in or to another Subsidiary; 
  
 (d) Investments made for the purpose of making or consummating an Acquisition. provided, that (i) after giving effect to such Acquisition, no Default or Event of Default shall have occurred and be continuing, (ii) such
Acquisitions are undertaken in accordance with all applicable laws, and (iii) the prior written consent or approval of such Acquisition of the board of directors or equivalent governing body of the Person being acquired. Upon the Borrower or
any Subsidiary’s Investment of fifty percent or more of the voting stock any Person that is a regulated financial institution, such Person shall become a Financial Institution Subsidiary for purposes of this Agreement; and 
  
 (e) Other Investments permitted by applicable laws and regulations.

  
 Section 7.7. Sale and Leaseback
Transactions. The Borrower will not, and will not permit any of the Subsidiaries to, enter into any arrangement, directly or indirectly, whereby it shall sell or transfer any property, real or personal, used or useful in its business,
whether now owned or hereinafter acquired, and thereafter rent or lease such property or other property that it intends to use for substantially the same purpose or purposes as the property sold or transferred. 
  

 22 

 ARTICLE VIII 
  
 EVENTS OF DEFAULT 
  
 Section 8.1. Events of Default. If any of the following events (each an “Event of Default”) shall occur:

  
 (a) the Borrower shall fail to pay any principal of any
Revolving Loan when and as the same shall become due and payable, whether at the due date thereof or at a date fixed for prepayment or otherwise; or 
  
 (b) the Borrower shall fail to pay any interest on any Revolving Loan or any fee or any other amount (other than an amount payable under clause
(a) of this Article) payable under this Agreement or any other Loan Document, when and as the same shall become due and payable, and such failure shall continue unremedied for a period of five (5) days; or 
  
 (c) any representation or warranty made or deemed made by or on behalf of the
Borrower or any Subsidiary in or in connection with this Agreement or any other Loan Document (including the Schedules attached thereto) and any amendments or modifications hereof or waivers hereunder, or in any certificate, report, financial
statement or other document submitted to the Lender by the Borrower or any representative of the Borrower pursuant to or in connection with this Agreement shall prove to be incorrect in any material respect when made or deemed made or submitted; or

  
 (d) the Borrower shall fail to observe or perform any covenant
or agreement contained in Section 5.2, Section 5.3 (with respect to the Borrower’s existence), Section 5.10 or Articles VI or VII; or 
  
 (e) the Borrower shall fail to observe or perform any covenant or agreement contained (i) in this Agreement (other than
those referred to in clauses (a), (b) and (d) above), and such failure shall remain unremedied for 30 days after the earlier of (x) any officer of the Borrower becomes aware of such failure, or (y) notice thereof shall have
been given to the Borrower by the Lender or (ii) in any other Loan Document (after taking into consideration any applicable grace periods); or 
  
 (f) the Borrower or any Subsidiary (whether as primary obligor or as guarantor or other surety) shall fail to pay any principal of or premium or interest
on any Indebtedness owed to the Lender (including without limitation any Hedging Agreement or any letter of credit) in any amount or any other Indebtedness owed to any other Person greater than $500,000 that is outstanding, when and as the same
shall become due and payable (whether at scheduled maturity, required prepayment, acceleration, demand or otherwise), and such failure shall continue after the applicable grace period, if any, specified in the agreement or instrument evidencing such
Indebtedness; or any other event shall occur or condition shall exist under any agreement or instrument relating to such Indebtedness and shall continue after the applicable grace period, if any, specified in such agreement or instrument, if the
effect of such event or condition is to accelerate, or permit the acceleration of, the maturity of such Indebtedness (without regard to whether such holders or other Person shall have exercised or waived their right to do so); or any such
Indebtedness shall be declared to be due and payable; or required to be prepaid or redeemed (other than by a regularly scheduled required prepayment or redemption), purchased or defeased, or any offer to prepay, redeem, purchase or defease such
Indebtedness shall be required to be made, in each case prior to the stated maturity thereof; or 
  
 (g) the Borrower or any Subsidiary shall (i) commence a voluntary case or other proceeding or file any petition seeking liquidation, reorganization
or other relief under any federal, state or 
  

 23 

 foreign bankruptcy, insolvency or other similar law now or hereafter in effect or seeking the appointment of a custodian,
trustee, receiver, liquidator or other similar official of it or any substantial part of its property, (ii) consent to the institution of , or fail to contest in a timely and appropriate manner, any proceeding or petition described in clause
(i) of this Section, (iii) apply for or consent to the appointment of a custodian, trustee, receiver, liquidator or other similar official for the Borrower or any such Subsidiary or for a substantial part of its assets, (iv) file an
answer admitting the material allegations of a petition filed against it in any such proceeding, (v) make a general assignment for the benefit of creditors, or (vi) take any action for the purpose of effecting any of the foregoing; or

  
 (h) an involuntary proceeding shall be commenced or an
involuntary petition shall be filed seeking (i) liquidation, reorganization or other relief in respect of the Borrower or any Subsidiary or its debts, or any substantial part of its assets, under any federal, state or foreign bankruptcy,
insolvency or other similar law now or hereafter in effect or (ii) the appointment of a custodian, trustee, receiver, liquidator or other similar official for the Borrower or any Subsidiary or for a substantial part of its assets, and in any
such case, such proceeding or petition shall remain undismissed for a period of 60 days or an order or decree approving or ordering any of the foregoing shall be entered; or 
  
 (i) the Borrower or any Subsidiary shall become unable to pay, shall admit in writing its inability to pay, or shall fail to
pay, its debts as they become due; or 
  
 (j) an ERISA Event shall
have occurred that, in the opinion of the Lender, when taken together with other ERISA Events that have occurred, could reasonably be expected to result in liability to the Borrower and the Subsidiaries in an aggregate amount exceeding $500,000; or

  
 (k) any uninsured judgment or order for the payment of money
in excess of $500,000 in the aggregate shall be rendered against the Borrower or any Subsidiary, and either (i) enforcement proceedings shall have been commenced by any creditor upon such judgment or order or (ii) there shall be a period
of 30 consecutive days during which a stay of enforcement of such judgment or order, by reason of a pending appeal or otherwise, shall not be in effect; or 
  

(l) any non-monetary judgment or order shall be rendered against the Borrower or any Subsidiary that could reasonably be expected to have a Material
Adverse Effect, and there shall be a period of 30 consecutive days during which a stay of enforcement of such judgment or order, by reason of a pending appeal or otherwise, shall not be in effect; or 
  
 (m) a Change in Control shall occur or exist; or 
  
 (n) any Governmental Authority having regulatory authority over the Borrower
or any Subsidiary shall impose any restriction upon the payment of dividends from any such Subsidiary to the Borrower or in any other way impose any restriction that limits or restricts Borrower or any of its Subsidiaries from engaging in normal
business activities; or 
  
 (o) any Financial Institution
Subsidiary shall cease for any reason to be an insured bank under the Federal Deposit Insurance Act, as amended; or 
  
 (p) the FDIC or any other federal or state regulatory authority shall issue a cease and desist order or take other action of a disciplinary or remedial
nature against the Borrower or any Financial Institution Subsidiary and such order or other action could reasonably be expected to have a Material Adverse Effect or there shall occur with respect to any Financial Institution Subsidiary any event
that is grounds for the required submission of a capital restoration plan under 12 U.S.C. §1831o (e)(2) and the regulations thereunder; or 
  

 24 

 (q) the Borrower or any Financial Institution Subsidiary shall enter into a written agreement with any
Governmental Authority having regulatory authority over such Person for any reason; 
  
 then, and in every such event (other than an event with respect to the Borrower or any Subsidiary described in clause (g) or (h) of this Section) and at any time thereafter during the continuance of such event, the Lender may, by
notice to the Borrower, take any or all of the following actions, at the same or different times: (i) terminate its Revolving Commitment; (ii) declare the principal of and any accrued interest on the Revolving Loans, and all other
Obligations owing hereunder, to be, whereupon the same shall become due and payable immediately, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrower and (iii) exercise all remedies
contained in any other Loan Document; and that, if an Event of Default specified in either clause (g) or (h) shall occur, the Revolving Commitment shall automatically terminate and the principal of the Revolving Loans then outstanding,
together with accrued interest thereon, and all fees, and all other Obligations shall automatically become due and payable, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrower. 

 
 ARTICLE IX 
  
 MISCELLANEOUS 
  
 Section 9.1. Notices. 
  
 (a) Except in the case of notices and other communications expressly
permitted to be given by telephone, all notices and other communications to any party herein to be effective shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by telecopy,
as follows: 
  

			
	To the Borrower:	  	AMERIS BANCORP
	 	  	24 2nd Avenue, S.E.
	 	  	Moultrie, Georgia 31768
	 	  	Attn: Dennis J. Zember Jr.
	 	  	Telephone Number: (229) 890-6383
	 	  	Telecopy Number: (229) 890-2235
		
	To the Lender:	  	SunTrust Bank
	 	  	303 Peachtree Street, NE 3rd Floor
	 	  	Mailcode 121
	 	  	Atlanta, Georgia 30308
	 	  	Attn: James E. Rountree
	 	  	Telephone Number: (404) 588-7559
	 	  	Telecopy Number: (404) 581-1775

  
 Any party hereto may change its
address or telecopy number for notices and other communications hereunder by notice to the other parties hereto. All such notices and other communications shall, when transmitted by overnight delivery, or faxed, be effective when delivered for
overnight (next-day) delivery, or transmitted in legible form by facsimile machine, respectively, or if mailed, upon the third Business Day after the date deposited into the mails or if delivered, upon delivery; provided, that notices
delivered to the Lender shall not be effective until actually received by the Lender at its address specified in this Section 9.1. 
  
 (b) Any agreement of the Lender herein to receive certain notices by telephone or facsimile is solely for the convenience and at the request of the
Borrower. The Lender shall be entitled to rely 
  

 25 

 on the authority of any Person purporting to be a Person authorized by the Borrower to give such notice and the Lender
shall not have any liability to the Borrower or other Person on account of any action taken or not taken by the Lender in reliance upon such telephonic or facsimile notice. The obligation of the Borrower to repay the Revolving Loans and all other
Obligations hereunder shall not be affected in any way or to any extent by any failure of the Lender to receive written confirmation of any telephonic or facsimile notice or the receipt by the Lender of a confirmation which is at variance with the
terms understood by the Lender to be contained in any such telephonic or facsimile notice. 
  
 Section 9.2. Waiver; Amendments. 
  
 (a) No failure or delay by the Lender in exercising any right or power hereunder or any other Loan Document, and no course of dealing between the Borrower and the Lender, shall operate as a waiver thereof, nor shall
any single or partial exercise of any such right or power or any abandonment or discontinuance of steps to enforce such right or power, preclude any other or further exercise thereof or the exercise of any other right or power hereunder or
thereunder. The rights and remedies of the Lender hereunder and under the other Loan Documents are cumulative and are not exclusive of any rights or remedies provided by law. No waiver of any provision of this Agreement or any other Loan Document or
consent to any departure by the Borrower therefrom shall in any event be effective unless the same shall be permitted by paragraph (b) of this Section, and then such waiver or consent shall be effective only in the specific instance and for the
purpose for which given. Without limiting the generality of the foregoing, the making of a Revolving Loan shall not be construed as a waiver of any Default or Event of Default, regardless of whether the Lender may have had notice or knowledge of
such Default or Event of Default at the time. 
  
 (b) No amendment
or waiver of any provision of this Agreement or the other Loan Documents, nor consent to any departure by the Borrower therefrom, shall in any event be effective unless the same shall be in writing and signed by the Borrower and the Lender and then
such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. 
  
 Section 9.3. Expenses; Indemnification. 
  
 (a) The Borrower shall pay (i) all reasonable, out-of-pocket costs and expenses of the Lender (including, without limitation, the reasonable fees,
charges and disbursements of outside counsel and the allocated cost of inside counsel) in connection with the preparation and administration of the Loan Documents and any amendments, modifications or waivers thereof (whether or not the transactions
contemplated in this Agreement or any other Loan Document shall be consummated), and (ii) all out-of-pocket costs and expenses (including, without limitation, the reasonable fees, charges and disbursements of outside counsel and the allocated
cost of inside counsel) incurred by the Lender in connection with the enforcement or protection of its rights in connection with this Agreement, including its rights under this Section, or in connection with the Revolving Loans made hereunder,
including all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Revolving Loans. 
  
 (b) The Borrower shall indemnify the Lender and each Affiliate of the Lender, and each officer, director, employee, agents and advisors of the Lender and
each Affiliate of the Lender (each, an “Indemnitee”) against, and hold each of them harmless from, any and all costs, losses, liabilities, claims, damages and related expenses, including the reasonable fees, charges and
disbursements of any counsel for any Indemnitee, which may be incurred by any Indemnitee, or asserted against any Indemnitee by the Borrower or any third Person, arising out of, in connection with or as a result of (i) the execution or delivery
of any this Agreement or any other agreement or instrument contemplated hereby, the performance by the parties hereto of their respective obligations hereunder or the consummation of any of the transactions contemplated hereby, (ii) any
Revolving Loan or any actual or proposed use of the proceeds therefrom, (iii) any actual or alleged presence or release of Hazardous Materials on or from any property owned by the Borrower or any Subsidiary 
  

 26 

 or any Environmental Liability related in any way to the Borrower or any Subsidiary or (iv) any actual or
prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether brought by the Borrower or any third Person and whether based on contract, tort, or any other theory and regardless of whether any Indemnitee is a
party thereto; provided, that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses (x) are determined by a court of competent jurisdiction in a
final and nonappealable judgment.to have resulted from the gross negligence or willful misconduct of such Indemnitee or (y) result from a claim brought by the Borrower against an Indemnitee for breach in bad faith of such Indemnitee’s
obligations hereunder or under any other Loan Document, if the Borrower has obtained a final and nonappealable judgment in its favor on such claim as determined by a court of competent jurisdiction. 
  
 (c) The Borrower shall pay, and hold the Lender harmless from and against,
any and all present and future stamp, documentary, and other similar taxes with respect to this Agreement and any other Loan Documents, any collateral described therein, or any payments due thereunder, and save the Lender harmless from and against
any and all liabilities with respect to or resulting from any delay or omission to pay such taxes. 
  
 (d) To the extent permitted by applicable law, the Borrower shall not assert, and hereby waives, any claim against any Indemnitee, on any theory of
liability, for special, indirect, consequential or punitive damages (as opposed to actual or direct damages) arising out of, in connection with or as a result of, this Agreement or any agreement or instrument contemplated hereby, the transactions
contemplated therein, any Loan or the Letter of Credit or the use of proceeds thereof. 
  
 (e) All amounts due under this Section shall be payable promptly after written demand therefor. 
  
 Section 9.4. 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 transfer any of its rights hereunder without the prior written consent of the Lender (and any attempted assignment or transfer by the Borrower without such consent shall be null and void). 
  
 (b) The Lender may at any time assign to one or more assignees all or a
portion of its rights and obligations under this Agreement and the other Loan Documents (including all or a portion of its Revolving Commitment and the Revolving Loans at the time owing to it); provided, that the Borrower must give its prior
written consent (which consent shall not be unreasonably withheld or delayed) to any assignment, except an assignment to an Affiliate of the Lender or during the occurrence and continuation of a Default or an Event of Default. Upon the execution and
delivery of an assignment agreement by the Lender and such assignee and payment by such assignee of an amount equal to the purchase price agreed between the Lender and such assignee, such assignee shall become a party to this Agreement and the other
Loan Documents and shall have the rights and obligations of a Lender under this Agreement, and the Lender shall be released from its obligations hereunder to a corresponding extent. Upon the consummation of any such assignment hereunder, the Lender,
the assignee and the Borrower shall make appropriate arrangements to have new Revolving Credit Notes issued to reflect such assignment. 
  
 (c) The Lender may at any time, without the consent of the Borrower, sell participations to one or more banks or other entities (a
“Participant”) in all or a portion of the Lender’s rights and obligations under this Agreement; provided, that (i) the Lender’s obligations under this Agreement shall remain unchanged, (ii) the
Lender shall remain solely responsible to the other parties hereto for the performance of its obligations hereunder, and (iii) the Borrower shall continue to deal solely and directly with the Lender in 
  

 27 

 connection with the Lender’s rights and obligations under this Agreement and the other Loan Documents. Any agreement
between the Lender and the Participant with respect to such participation shall provide that the Lender shall retain the sole right and responsibility to enforce this Agreement and the other Loan Documents and the right to approve any amendment,
modification or waiver of this Agreement and the other Loan Documents; provided, that such participation agreement may provide that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver
of this Agreement described in the first proviso of Section 9.2(b) that affects the Participant. The Borrower agrees that each Participant shall be entitled to the benefits of Sections 2.8, 2.9 and 2.10 to the same
extent as if it were a Lender hereunder and had acquired its interest by assignment pursuant to paragraph (b); provided, that no Participant shall be entitled to receive any greater payment under Section 2.10 than the Lender would
have been entitled to receive with respect to the participation sold to such Participant unless the sale of such participation is made with the Borrower’s prior written consent. 
  
 (d) The Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement
and the Revolving Credit Note to secure its obligations to a Federal Reserve Bank without complying with this Section; provided, that no such pledge or assignment shall release the Lender from any of its obligations hereunder or substitute
any such pledgee or assignee for such Lender as a party hereto. 
  
 Section 9.5. Governing Law; Jurisdiction; Consent to Service of Process. 
  
 (a) This Agreement and the other Loan Documents shall be construed in accordance with and be governed by the law (without giving effect to the conflict of
law principles thereof) of the State of Georgia. 
  
 (b) The
Borrower hereby irrevocably and unconditionally submits, for itself and its property, to the non-exclusive jurisdiction of any Federal and/or state court (including without limitation the Business Case Division of the Fulton County Superior Court,
if applicable) located in the State of Georgia and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement or any other Loan Document or the transactions contemplated hereby or thereby, or for
recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in such Georgia state court or, to the
extent permitted by applicable law, such Federal court. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other
manner provided by law. Nothing in this Agreement or any other Loan Document shall affect any right that the Lender may otherwise have to bring any action or proceeding relating to this Agreement or any other Loan Document against the Borrower or
its properties in the courts of any jurisdiction. 
  
 (c) The
Borrower irrevocably and unconditionally waives any objection which it may now or hereafter have to the laying of venue of any such suit, action or proceeding described in paragraph (b) of this Section and brought in any court referred to
in paragraph (b) of this Section. Each of the parties hereto irrevocably waives, to the fullest extent permitted by applicable law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

  
 (d) Each party to this Agreement irrevocably consents to the
service of process in the manner provided for notices in Section 9.1. Nothing in this Agreement or in any other Loan Document will affect the right of any party hereto to serve process in any other manner permitted by law. 
  

 28 

 Section 9.6. INTENTIONALLY OMITTED. 
  
 Section 9.7. Right of Setoff. In addition to any rights
now or hereafter granted under applicable law and not by way of limitation of any such rights, the Lender shall have the right, at any time or from time to time upon the occurrence and during the continuance of an Event of Default, without prior
notice to the Borrower, any such notice being expressly waived by the Borrower to the extent permitted by applicable law, to set off and apply against all deposits (general or special, time or demand, provisional or final) of the Borrower at any
time held or other obligations at any time owing by the Lender to or for the credit or the account of the Borrower against any and all Obligations held by the Lender, irrespective of whether the Lender shall have made demand hereunder and although
such Obligations may be unmatured. The Lender agrees promptly to notify the Borrower after any such set-off and any application made by the Lender; provided, that the failure to give such notice shall not affect the validity of such set-off
and application. 
  
 Section 9.8. Counterparts;
Integration. This Agreement may be executed by one or more of the parties to this Agreement on any number of separate counterparts (including by telecopy), and all of said counterparts taken together shall be deemed to constitute one and the
same instrument. This Agreement, the other Loan Documents, and any separate letter agreement(s) relating to any fees payable to the Lender constitute the entire agreement among the parties hereto and thereto regarding the subject matters hereof and
thereof and supersede all prior agreements and understandings, oral or written, regarding such subject matters. 
  
 Section 9.9. Survival. All covenants, agreements, representations and warranties made by the Borrower herein and in the certificates or
other instruments delivered in connection with or pursuant to this Agreement shall be considered to have been relied upon by the other parties hereto and shall survive the execution and delivery of this Agreement and the making of any Revolving
Loans, regardless of any investigation made by any such other party or on its behalf and notwithstanding that the Lender may have had notice or knowledge of any Default or incorrect representation or warranty at the time any credit is extended
hereunder, and shall continue in full force and effect as long as the principal of or any accrued interest on any Revolving Loan or any fee or any other amount payable under this Agreement is outstanding and unpaid and so long as the Revolving
Commitment has not expired or terminated. The provisions of Sections 2.10 and 9.3 shall survive and remain in full force and effect regardless of the consummation of the transactions contemplated hereby, the repayment of the Revolving
Loans, the expiration or termination of the Revolving Commitment or the termination of this Agreement or any provision hereof. All representations and warranties made herein, in the certificates, reports, notices, and other documents delivered
pursuant to this Agreement shall survive the execution and delivery of this Agreement and the other Loan Documents, and the making of the Revolving Loans. 
  
 Section 9.10. Severability. Any provision of this Agreement or any other Loan Document held to be illegal, invalid or unenforceable in
any jurisdiction, shall, as to such jurisdiction, be ineffective to the extent of such illegality, invalidity or unenforceability without affecting the legality, validity or enforceability of the remaining provisions hereof or thereof; and the
illegality, invalidity or unenforceability of a particular provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 
  
 Section 9.11. Patriot Act. The Lender hereby notifies the Borrower that pursuant to the requirements of
the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Patriot Act”), it is required to obtain, verify and record information that identifies the Borrower, which information includes the name
and address of the Borrower and other information that will allow the Lender to identify the Borrower in accordance with the Patriot Act. The Borrower shall, and shall cause each of its Subsidiaries to, provide to the extent commercially reasonable,
such information and take such other actions as are reasonably requested by the Lender in order to assist the Lender in maintaining compliance with the Patriot Act. 
  

 29 

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

			
	AMERIS BANCORP
		
	By	 	 /s/ Edwin W. Hortman, Jr.

	Name:	 	Edwin W. Hortman, Jr.
	Title:	 	President and Chief Executive Officer
	
	[SEAL]
	
	SUNTRUST BANK
		
	By	 	 /s/ James E. Rountree

	Name:	 	James E. Rountree
	Title:	 	Director

  

 30 

 SCHEDULE 4.12 
  
 FINANCIAL INSTITUTION SUBSIDIARIES 
  

					
	 Name of Subsidiary

	  	Ownership by Borrower

	 	 State of Incorporation or
 Other Jurisdiction

	 American Banking Company
	  	100%	 	State of Georgia
	 Heritage Community Bank
	  	100%	 	State of Georgia
	 Bank of Thomas County
	  	100%	 	State of Georgia
	 Citizens Security Bank
	  	100%	 	State of Georgia
	 Cairo Banking Company
	  	100%	 	State of Georgia
	 Southland Bank
	  	100%	 	State of Alabama
	 Central Bank & Trust
	  	100%	 	State of Georgia
	 First National Bank of South Georgia
	  	100%	 	The Comptroller of the Currency
	 Merchants & Farmers Bank
	  	100%	 	State of Georgia
	 Tri-County Bank
	  	100%	 	State of Florida
	 First Bank of Brunswick
	  	100%	 	State of Georgia
	 Citizens Bank – Wakulla
	  	100%	 	State of Florida

  
 OTHER
SUBSIDIARIES 
  

					
	 Name of Subsidiary

	  	Ownership by Borrower

	 	 State of Incorporation or
 Other Jurisdiction

	 ABC Bancorp Capital Trust I
	  	100% of common interest	 	State of Delaware
	 Moultrie Holding Company, Inc.
	  	100%	 	State of Delaware
	 Moultrie Real Estate Holdings, Inc.
	  	100% indirectly	 	State of Delaware
	 Quitman Holding Company, Inc.
	  	100%	 	State of Delaware
	 Quitman Real Estate Holdings, Inc.
	  	100% indirectly	 	State of Delaware
	 Thomas Holding Company, Inc.
	  	100%	 	State of Delaware
	 Thomas Real Estate Holdings, Inc.
	  	100% indirectly	 	State of Delaware
	 Citizens Holding Company, Inc.
	  	100%	 	State of Delaware
	 Citizens Real Estate Holdings, Inc.
	  	100% indirectly	 	State of Delaware
	 Cairo Holding Company, Inc.
	  	100%	 	State of Delaware
	 Cairo Real Estate Holdings, Inc.
	  	100% indirectly	 	State of Delaware
	 Southland Real Estate Holdings, Inc.
	  	100%	 	State of Alabama
	 Cordele Holding Company, Inc.
	  	100%	 	State of Delaware
	 Cordele Real Estate Holdings, Inc.
	  	100% indirectly	 	State of Delaware
	 First National Holding Company, Inc.
	  	100%	 	State of Delaware
	 First National Real Estate Holdings, Inc.
	  	100% indirectly	 	State of Delaware
	 M&F Holding Company, Inc.
	  	100%	 	State of Delaware
	 M&F Real Estate Holdings, Inc.
	  	100% indirectly	 	State of Delaware
	 Tri-County Holding Company, Inc.
	  	100%	 	State of Delaware
	 Tri-County Real Estate Holdings, Inc.
	  	100% indirectly	 	State of Delaware

  
 Schedule 4.12

 Schedule 7.1 
  
 OUTSTANDING INDEBTEDNESS 
  

				
	 Subordinated Debentures owing to ABC Bancorp Capital Trust I
	  	$	35,567,000.00

 EXHIBIT A 
  

REVOLVING CREDIT NOTE 
  

			
	$20,000,000.00	  	Atlanta, Georgia
	 	  	December 14, 2005

  
 FOR VALUE RECEIVED,
the undersigned, AMERIS BANCORP, a Georgia corporation (the “Borrower”), hereby promises to pay to SunTrust Bank (the “Lender”) or its registered assigns at its principal
office or any other office that the Lender designates, on the Commitment Termination Date (as defined in the Revolving Credit Agreement dated as of December 14, 2005 (as the same may be amended, supplemented or otherwise modified from time to
time, the “Credit Agreement”), between the Borrower and the Lender, the lesser of the principal sum of Twenty Million and no/100 Dollars ($20,000,000) and the aggregate unpaid principal amount of all Revolving
Loans made by the Lender to the Borrower pursuant to the Credit Agreement, in lawful money of the United States of America in immediately available funds, and to pay interest from the date hereof on the principal amount thereof from time to time
outstanding, in like funds, at said office, at the rate or rates per annum and payable on such dates as provided in the Credit Agreement. In addition, should legal action or an attorney-at-law be utilized to collect any amount due hereunder, the
Borrower further promises to pay all costs of collection, including the reasonable attorneys’ fees of the Lender. 
  
 The Borrower promises to pay interest, on demand, on any overdue principal and, to the extent permitted by law, overdue interest from their due dates at a
rate or rates provided in the Credit Agreement. 
  
 All borrowings
evidenced by this Revolving Credit Note and all payments and prepayments of the principal hereof and the date thereof shall be endorsed by the holder hereof on the schedule attached hereto and made a part hereof or on a continuation thereof which
shall be attached hereto and made a part hereof, or otherwise recorded by such holder in its internal records; provided, that the failure of the holder hereof to make such a notation or any error in such notation shall not affect the
obligations of the Borrower to make the payments of principal and interest in accordance with the terms of this Revolving Credit Note and the Credit Agreement. 
  

This Revolving Credit Note is issued in connection with, and is entitled to the benefits of, the Credit Agreement which, among other things, contains
provisions for the acceleration of the maturity hereof upon the happening of certain events, for prepayment of the principal hereof prior to the maturity hereof and for the amendment or waiver of certain provisions of the Credit Agreement, all upon
the terms and conditions therein specified. THIS REVOLVING CREDIT NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF GEORGIA AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA. 
  

			
	AMERIS BANCORP
		
	By:	 	  

	Name:	 	 
	Title:	 	 
		
	[SEAL]	 	 

  
 Exhibit A-1

 LOANS AND PAYMENTS 
  

									
	 Date

	  	 Amount and
 Type of Loan

	  	 Payments of
 Principal

	  	 Unpaid
 Principal
 Balance of
 Note

	  	 Name of Person
 Making
 Notation

  
 Exhibit A-2 

 EXHIBIT 2.2 
  
 SunTrust Bank 
 303 Peachtree Street,
3rd Floor 
 Atlanta,
Georgia 30308 
  
 Attention: 
  
 Dear Sirs: 
  
 Reference is made to the Revolving Credit Agreement dated as of
December 14, 2005 (as amended and in effect on the date hereof, the “Credit Agreement”), between the undersigned, as Borrower, and SunTrust Bank, as Lender. Terms defined in the Credit Agreement are used herein with the same meanings.
This notice constitutes a Notice of Borrowing, and the Borrower hereby requests a Revolving Loan under the Credit Agreement, and in that connection the Borrower specifies the following information with respect to the Revolving Loan requested hereby:

  

	 	(A)	Principal amount of Revolving Loan:                     

  

	 	(B)	Date of Revolving Loan (which is a Business Day):                     

  

	 	(C)	Location and number of Borrower’s account to which proceeds of Revolving Loan are to be disbursed:
                     

  
 The Borrower hereby represents and warrants that the conditions specified in paragraphs (a), (b) and (c) of Section 3.2 of the Credit
Agreement are satisfied. 
  

			
	Very truly yours,
	
	AMERIS BANCORP
		
	By:	 	  

	Name:	 	 
	Title:	 	 

  
 Exhibit 2.2

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