Document:

Exhibit 10.2

 

DEFINITIVE AGREEMENT

 

 

CREDIT
AGREEMENT

 

 

Dated as of August 30, 2004

 

 

Among

 

 

AFFILIATED
MANAGERS GROUP, INC.,

as Borrower,

 

 

THE BANK
OF NEW YORK,

as Administrative Agent

 

 

And

 

 

The Several Lenders

from Time to Time Parties Hereto

 

 

BNY CAPITAL
MARKETS, INC.

 Sole Lead Arranger
and Sole Book Manager

 

 

 

	
  SECTION 1 DEFINITIONS

  	
   

  
	
   

  	
  1.1

  	
  Defined Terms

  	
   

  
	
   

  	
  1.2

  	
  Other
  Definitional and Interpretive Provisions.

  	
   

  
	
   

  	
  1.3

  	
  Accounting
  Terms.

  	
   

  
	
  SECTION 2 AMOUNT
  AND TERMS OF COMMITMENTS

  	
   

  
	
   

  	
  2.1

  	
  Commitments

  	
   

  
	
   

  	
  2.2

  	
  Procedure
  for Borrowing

  	
   

  
	
   

  	
  2.3

  	
  [Reserved]

  	
   

  
	
   

  	
  2.4

  	
  [Reserved]

  	
   

  
	
   

  	
  2.5

  	
  Termination or
  Reduction of Commitments

  	
   

  
	
   

  	
  2.6

  	
  Repayment of
  Loans; Evidence of Debt

  	
   

  
	
   

  	
  2.7

  	
  [Reserved]

  	
   

  
	
   

  	
  2.8

  	
  [Reserved]

  	
   

  
	
  SECTION 3 GENERAL
  PROVISIONS APPLICABLE TO THE LOANS

  	
   

  
	
   

  	
  3.1

  	
  No
  Optional Prepayment

  	
   

  
	
   

  	
  3.2

  	
  Mandatory
  Prepayment

  	
   

  
	
   

  	
  3.3

  	
  Conversion and
  Continuation Options.

  	
   

  
	
   

  	
  3.4

  	
  Minimum
  Amounts and Maximum Number of Tranches.

  	
   

  
	
   

  	
  3.5

  	
  Interest Rates and
  Payment Dates.

  	
   

  
	
   

  	
  3.6

  	
  Computation of
  Interest and Fees.

  	
   

  
	
   

  	
  3.7

  	
  Inability to
  Determine Interest Rate.

  	
   

  
	
   

  	
  3.8

  	
  Pro Rata Treatment and
  Payments.

  	
   

  
	
   

  	
  3.9

  	
  Illegality

  	
   

  
	
   

  	
  3.10

  	
  Requirements
  of Law.

  	
   

  
	
   

  	
  3.11

  	
  Taxes.

  	
   

  
	
   

  	
  3.12

  	
  Indemnity.

  	
   

  
	
   

  	
  3.13

  	
  Change
  of Lending Office.

  	
   

  
	
  SECTION 4
  REPRESENTATIONS AND WARRANTIES

  	
   

  
	
   

  	
  4.1

  	
  Financial
  Condition.

  	
   

  
	
   

  	
  4.2

  	
  No Change.

  	
   

  
	
   

  	
  4.3

  	
  Corporate
  Existence; Compliance with Law.

  	
   

  
	
   

  	
  4.4

  	
  Corporate
  Power; Authorization; Enforceable Obligations.

  	
   

  
	
   

  	
  4.5

  	
  No Legal Bar.

  	
   

  

 

i

 

	
   

  	
  4.6

  	
  No
  Material Litigation.

  	
   

  
	
   

  	
  4.7

  	
  No Default.

  	
   

  
	
   

  	
  4.8

  	
  Ownership
  of Property; Liens.

  	
   

  
	
   

  	
  4.9

  	
  Taxes.

  	
   

  
	
   

  	
  4.10

  	
  Federal
  Regulations.

  	
   

  
	
   

  	
  4.11

  	
  ERISA.

  	
   

  
	
   

  	
  4.12

  	
  Investment
  Company Act; Investment Advisers Act.

  	
   

  
	
   

  	
  4.13

  	
  Investment Advisory
  Agreements.

  	
   

  
	
   

  	
  4.14

  	
  Subsidiaries and Other
  Ownership Interests.

  	
   

  
	
   

  	
  4.15

  	
  Purpose
  of Loans.

  	
   

  
	
   

  	
  4.16

  	
  Accuracy and Completeness of
  Information.

  	
   

  
	
   

  	
  4.17

  	
  PRIDES
  Documents; Tender Offer.

  	
   

  
	
   

  	
  4.18

  	
  Security
  Interest.

  	
   

  
	
   

  	
  4.19

  	
  Borrowing
  Base

  	
   

  
	
  SECTION 5
  CONDITIONS PRECEDENT

  	
   

  
	
   

  	
  5.1

  	
  Conditions
  to Loans

  	
   

  
	
  SECTION 6
  AFFIRMATIVE COVENANTS

  	
   

  
	
   

  	
  6.1

  	
  [Reserved]

  	
   

  
	
   

  	
  6.2

  	
  Compliance Certificates

  	
   

  
	
   

  	
  6.3

  	
  [Reserved]

  	
   

  
	
   

  	
  6.4

  	
  Conduct
  of Business and Maintenance of Existence

  	
   

  
	
   

  	
  6.5

  	
  [Reserved]

  	
   

  
	
   

  	
  6.6

  	
  Inspection
  of Property; Books and Records; Discussions

  	
   

  
	
   

  	
  6.7

  	
  Notices

  	
   

  
	
   

  	
  6.8

  	
  [Reserved]

  	
   

  
	
   

  	
  6.9

  	
  [Reserved]

  	
   

  
	
   

  	
  6.10

  	
  Performance of PRIDES
  Documents

  	
   

  
	
  SECTION 7
  [RESERVED]

  	
   

  
	
  SECTION 8
  EVENTS OF DEFAULT

  	
   

  
	
  SECTION 9
  THE ADMINISTRATIVE AGENT

  	
   

  
	
   

  	
  9.1

  	
  Appointment and
  Authorization of Administrative Agent

  	
   

  
	
   

  	
  9.2

  	
  Delegation of Duties

  	
   

  
	
   

  	
  9.3

  	
  Liability of
  Administrative Agent

  	
   

  

 

ii

 

	
   

  	
  9.4

  	
  Reliance by
  Administrative Agent

  	
   

  
	
   

  	
  9.5

  	
  Notice
  of Default

  	
   

  
	
   

  	
  9.6

  	
  Credit
  Decision; Disclosure of Information by Administrative Agent

  	
   

  
	
   

  	
  9.7

  	
  Indemnification of
  Administrative Agent

  	
   

  
	
   

  	
  9.8

  	
  Administrative
  Agent in Its Individual Capacity

  	
   

  
	
   

  	
  9.9

  	
  Successor Administrative
  Agent

  	
   

  
	
   

  	
  9.10

  	
  Administrative Agent May File
  Proof of Claim

  	
   

  
	
   

  	
  9.11

  	
  Collateral and Guaranty Matters

  	
   

  
	
   

  	
  9.12

  	
  Other Agents; Arrangers and
  Managers

  	
   

  
	
  SECTION 10
  MISCELLANEOUS

  	
   

  
	
   

  	
  10.1

  	
  Amendments
  and Waivers

  	
   

  
	
   

  	
  10.2

  	
  Notices

  	
   

  
	
   

  	
  10.3

  	
  No Waiver; Cumulative Remedies

  	
   

  
	
   

  	
  10.4

  	
  Survival of Representations
  and Warranties

  	
   

  
	
   

  	
  10.5

  	
  Expenses;
  Indemnity; Waiver of Damages

  	
   

  
	
   

  	
  10.6

  	
  Successors and Assigns;
  Participations and Assignments

  	
   

  
	
   

  	
  10.7

  	
  Adjustments;
  Set-off

  	
   

  
	
   

  	
  10.8

  	
  Counterparts

  	
   

  
	
   

  	
  10.9

  	
  Severability

  	
   

  
	
   

  	
  10.10

  	
  Integration

  	
   

  
	
   

  	
  10.11

  	
  GOVERNING LAW

  	
   

  
	
   

  	
  10.12

  	
  Submission To Jurisdiction;
  Waivers

  	
   

  
	
   

  	
  10.13

  	
  Acknowledgements

  	
   

  
	
   

  	
  10.14

  	
  WAIVERS OF JURY TRIAL

  	
   

  
	
   

  	
  10.15

  	
  Confidentiality

  	
   

  
	
   

  	
  10.16

  	
  USA
  Patriot Act

  	
   

  

 

iii

 

	
  SCHEDULES

  
	
   

  
	
   

  	
  Schedule I

  	
  —

  	
  Lender Commitments

  
	
   

  	
  Schedule 1.1

  	
  —

  	
  Form of UCC-1
  Financing Statement

  
	
   

  	
  Schedule 4.1

  	
  —

  	
  Financial
  Condition

  
	
   

  	
  Schedule 4.2

  	
  —

  	
  Changes in
  Capital Stock

  
	
   

  	
  Schedule 4.9

  	
  —

  	
  Taxes

  
	
   

  	
  Schedule 4.14

  	
  —

  	
  Subsidiaries and
  Other Ownership Interests

  
	
   

  	
  Schedule 4.17

  	
  —

  	
  FELINE PRIDES
  and Reserved Common Stock

  

 

	
  EXHIBITS

  
	
   

  
	
   

  	
  Exhibit A

  	
  —

  	
  Form of Note

  
	
   

  	
  Exhibit B

  	
  —

  	
  Form of Pledge
  Agreement

  
	
   

  	
  Exhibit B-2

  	
  —

  	
  [Reserved]

  
	
   

  	
  Exhibit C

  	
  —

  	
  Form of Borrower
  Certificate

  
	
   

  	
  Exhibit D

  	
  —

  	
  Form of Opinion
  of Borrower’s Counsel

  
	
   

  	
  Exhibit E

  	
  —

  	
  Form of
  Assignment and Assumption

  
	
   

  	
  Exhibit F

  	
  —

  	
  Form of
  Confidentiality Agreement

  
	
   

  	
  Exhibit G

  	
  —

  	
  [Reserved]

  
	
   

  	
  Exhibit H

  	
  —

  	
  Form of
  Compliance Certificate

  
	
   

  	
  Exhibit I

  	
  —

  	
  Form of
  Borrowing Notice

  
	
   

  	
  Exhibit J

  	
  —

  	
  Form of
  Conversion/Continuation Notice

  

 

iv

 

CREDIT
AGREEMENT

 

This CREDIT AGREEMENT, dated as of August 30, 2004, is
among Affiliated Managers Group, Inc., a Delaware corporation (the “Borrower”),
the several banks and other financial institutions from time to time parties to
this Agreement (the “Lenders”) and The Bank of New York, as
administrative agent for the Lenders (the “Administrative Agent”).

 

PRELIMINARY STATEMENT

 

The definitions of terms set forth in Section 1 of
this Agreement apply to terms that are used but not defined in this Preliminary
Statement.

 

The Borrower has consummated its offer to purchase for
cash the FELINE PRIDES Senior Notes component of the Income FELINE PRIDES
pursuant to the terms and conditions of the Tender Offer.  As required under the terms of the Tender
Offer and the FELINE PRIDES Documents, at the time of the settlement of the
purchase of the FELINE PRIDES Senior Notes, the Depositary (a) utilized
$50,744,135.04 of the Purchase Price to purchase Treasury Strips having an
aggregate value at maturity equal to the aggregate amount of the FELINE PRIDES
Senior Notes tendered and accepted in the Tender Offer and caused such Treasury
Strips to be delivered to the FELINE PRIDES Collateral Agent to secure the
Common Stock Purchase Obligations relating to the Growth FELINE PRIDES
resulting from consummation of the Tender Offer, and (b) delivered the
Fixed Cash Component of the Purchase Price to the FELINE PRIDES Purchase
Contract Agent for distribution to such tendering Holders.  The Borrower has requested that the Lenders
make term loans in an aggregate principal amount of up to $51,000,000 to
finance or refinance the purchase of such tendered FELINE PRIDES Senior Notes,
and the Lenders are willing to do so, subject to the terms and conditions set
forth in this Agreement.

 

IN CONSIDERATION OF the foregoing, the parties hereto
hereby agree as follows:

 

SECTION 1

 

DEFINITIONS

 

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

 

“ABR” means, for any day, a fluctuating rate
per annum equal to the higher of (a) the Federal Funds Rate plus 1/2 of 1% and
(b) the rate of interest in effect for such day as publicly announced from time
to time by The Bank of New York as its “prime rate.” The “prime rate” is a rate
set by The Bank of New York based upon various factors including The Bank of
New York’s costs and desired return, general economic conditions and other
factors, and is used as a reference point for pricing some loans, which may be
priced at, above or below such announced rate. 
Any change in such rate announced by The Bank of New York shall take
effect at the opening of business on the day specified in the public
announcement of such change.

 

“ABR Loan” means a Loan that bears interest at
a rate based upon the ABR.

 

 

“Administrative Agent” means The Bank of New
York, in its capacity as administrative agent under this Agreement and the
other Loan Documents, or any successor administrative agent.

 

“Administrative Agent’s Office” means the
Administrative Agent’s address and, as appropriate, account as set forth on Schedule
I, or such other address or account as the Administrative Agent may from
time to time notify the Borrower and the Lenders.

 

“Affiliate” means as to any Person, any other
Person which, directly or indirectly, is in control of, is controlled by, or is
under common control with, such Person. 
For purposes of this definition, “control” of a Person means the power,
directly or indirectly, either to (a) vote 10% or more of the securities having
ordinary voting power for the election of directors of such Person or (b)
direct or cause the direction of the management and policies of such Person,
whether by contract or otherwise.

 

“Agent-Related Person” means the Administrative
Agent, together with its Affiliates (including, in the case of The Bank of New
York in its capacity as the Administrative Agent, the Arranger), and the
officers, directors, employees, agents and attorneys-in-fact of the
Administrative Agent and its Affiliates.

 

“Agreement” means this Credit Agreement.

 

“Applicable Margin” means, with respect to
Eurodollar Loans, 0.375%, and, with respect to ABR Loans, 0.00%.

 

“Arranger” means BNY Capital Markets, Inc., in
its capacity as sole lead arranger and sole book manager.

 

“Assignee” is defined in Section 10.6(c).

 

“Attorney Costs” means and includes all
reasonable and documented fees, expenses and disbursements of any law firm or
other external counsel and, without duplication, the reasonable and documented
allocated cost of internal legal services and all reasonable and documented
expenses and disbursements of internal counsel; provided that in the
case of the enforcement or preservation of any rights under the Loan Documents,
Attorney Costs shall not be limited by the term “reasonable” in this
definition.

 

“Bank Collateral Agent” means The Bank of New
York, as Collateral Agent for the Secured Parties under the Pledge Agreement.

 

“Borrower” is defined in the preamble hereto.

 

“Borrower Security Interest” is defined in
Section 4.18(a).

 

“Borrowing Base” means, at any time, an amount
equal to (a) the sum of (i) the value at maturity of the Pledged Treasury
Strips at such time (not to exceed the aggregate outstanding principal amount
of the Loans at such time) and the fair market value of the Cash Collateral at
such time, divided by (b) 1.05.

 

2

 

“Business Day” means any day other than a
Saturday, Sunday or other day on which commercial banks are authorized or
required to close under the laws of, or are in fact closed in, the state where
the Administrative Agent’s Office is located or in New York, New York (if
different), and, if such day relates to any Eurodollar Rate Loan, means any
such day on which dealings in Dollar deposits are conducted by and between
banks in the London interbank eurodollar market.

 

“Capital Stock” means any and all shares,
interests, participations or other equivalents (however designated) of capital
stock of a corporation, any and all equivalent ownership interests in a Person
(other than a corporation) and any and all warrants or options to purchase any
of the foregoing.

 

“Cash Equivalents” means, at any time, (a) any
evidence of indebtedness, maturing not more than one year after such time, issued
or guaranteed by the United States Government or any agency thereof, (b)
commercial paper, maturing not more than one year from the date of issue, or
corporate demand notes, in each case (unless issued by a Lender or its holding
company) rated at least A-l by S&P or P-l by Moody’s (or carrying an
equivalent rating by an internationally-recognized rating agency), (c) any
certificate of deposit (or time deposits represented by such certificates of
deposit) or bankers acceptance, maturing not more than one year after such
time, or overnight Federal funds transactions or money market deposit accounts
that are issued or sold by, or maintained with, a commercial bank or financial
institution incorporated under the laws of the United States, any state thereof
or the District of Columbia which is rated at least A-1 by S&P or P-l by
Moody’s (or carrying an equivalent rating by an internationally-recognized
rating agency), (d) any repurchase agreement entered into with a commercial
bank or financial institution meeting the requirements of clause (c) which (i)
is secured by a fully perfected security interest in any obligation of the type
described in any of clauses (a) through (c) and (ii) has a market value at the
time such repurchase agreement is entered into of not less than 100% of the
repurchase obligation of such commercial bank or financial institution
thereunder, (e) securities with maturities of six months or less from the
date of acquisition backed by standby letters of credit issued by any commercial
bank or financial institution meeting the requirements of clause (c), (f) any
short-term (or readily marketable or immediately redeemable) investment in a
structured investment vehicle, structured investment deposit or similar
instrument with a financial strength rating of A by S&P or Moody’s or (g)
shares of money market mutual or similar funds which invest primarily in assets
satisfying the requirements of clauses (a) through (f) of this
definition.

 

“Cash Collateral” means immediately available
Dollars and Cash Equivalents constituting Pledged Collateral.

 

“Change of Control” shall be deemed to occur on
any date on which any Person or “group” (within the meaning of Section 13(d) or
14(d) of the Securities Exchange Act of 1934) shall have acquired beneficial
ownership of Capital Stock having 30% or more of the ordinary voting power in
the election of directors of the Borrower.

 

“Closing Date” means the date on which the
conditions precedent set forth in Section 5.1 shall be satisfied.

 

3

 

“Code” means the Internal Revenue Code of 1986.

 

“Commitment” means, as to any Lender, the
obligation of such Lender to make a Loan to the Borrower hereunder in an
aggregate principal amount at any one time outstanding not to exceed the amount
set forth opposite such Lender’s name on Schedule I under the heading “Commitment”.

 

“Commitment Percentage” means as to any Lender
at any time, the percentage which such Lender’s Commitment then constitutes of
the aggregate Commitments (or, at any time after the Commitments shall have
expired or terminated, the percentage which the aggregate principal amount of
such Lender’s Loans then outstanding constitutes of the aggregate principal
amount of the Loans then outstanding).

 

“Commonly Controlled Entity” means an entity,
whether or not incorporated, which is under common control with the Borrower
within the meaning of Section 4001 of ERISA or is part of a group which
includes the Borrower and which is treated as a single employer under Section
414 of the Code.

 

“Common Stock” means the common stock, par
value $0.01, of the Borrower.

 

“Common Stock Purchase Obligations” the
obligations of the Holders to pay the purchase price for the Common Stock
pursuant to the terms and conditions of the FELINE PRIDES Purchase Contracts.

 

“Compliance Certificate” means a certificate
substantially in the form of Exhibit H.

 

“Contractual Obligation” means, as to any
Person, any provision of any security issued by such Person or of any
agreement, instrument or other undertaking to which such Person is a party or
by which it or any of its property is bound.

 

“Control Agreement” means the Collateral
Control Agreement dated as of July 21, 2004, as amended by the Assignment and
Amendment dated as of the Closing Date to the Collateral Control Agreement by
and among the Borrower, Bank of America, N.A., as initial agent, the FELINE
PRIDES Collateral Agent, the FELINE PRIDES Purchase Contract Agent, the Bank
Collateral Agent and The Bank of New York, as Custodial Agent, as defined in
and under the FELINE PRIDES Pledge Agreement.

 

“Default” means any of the events specified in Section
8, whether or not any requirement for the giving of notice, the lapse of
time, or both, has been satisfied.

 

“Default Rate” means an interest rate equal to
(a) the ABR plus (b) the Applicable Margin, if any, applicable to ABR Loans
plus (c) 2% per annum; provided that with respect to a Eurodollar Loan,
the Default Rate shall be an interest rate equal to (i) the Eurodollar Rate
applicable to such Loan plus (ii) the Applicable Margin applicable to
Eurodollar Loans plus (iii) 2% per annum.

 

“Depository” means The Bank of New York, as
Depository under the Tender Offer Documents.

 

4

 

“Dollars” and “$” mean lawful currency
of the United States of America.

 

“Environmental Law” means any Federal, state,
local or foreign statute, law, regulation, ordinance, rule, judgment, order,
decree, permit, concession, grant, franchise, license, agreement or governmental
restriction relating to pollution or the protection of the environment or the
release of any material into the environment, including any of the foregoing
related to hazardous substances or wastes, air emissions or discharges to waste
or public systems.

 

“Environmental Liability” means any liability,
contingent or otherwise (including any liability for damages, costs of
environmental remediation, fines, penalties or indemnities), directly or
indirectly resulting from or based upon (a) violation of any Environmental Law,
(b) the generation, use, handling, transportation, storage, treatment or
disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials,
(d) the release or threatened release of any Hazardous Materials into the
environment or (e) any contract, agreement or other consensual arrangement
pursuant to which liability is assumed or imposed with respect to any of the
foregoing.

 

“Equity Units” means the equity security units
issued by the Borrower under the FELINE PRIDES Documents on December 18, 2001.

 

“ERISA” means the Employee Retirement Income
Security Act of 1974.

 

“Eurodollar Loan” means a Loan that bears
interest at a rate based upon the Eurodollar Rate.

 

“Eurodollar Rate” means, for any Interest
Period with respect to any Eurodollar Loan, a rate per annum determined by the
Administrative Agent pursuant to the following formula:

 

	
  Eurodollar Rate =

  	
   

  	
  Eurodollar Base Rate

  
	
   

  	
   

  	
  1.00 - Eurodollar Reserve Percentage

  

 

Where,

 

“Eurodollar
Base Rate” means, for such Interest Period, the rate per annum determined
by the Administrative Agent to be the rate of interest at which deposits in
Dollars for delivery on the first day of such Interest Period in same day funds
in the approximate amount of the Eurodollar Loan being made, continued or converted
by The Bank of New York and with a term equivalent to such Interest Period
would be offered by The Bank of New York’s London Branch to major banks in the
London interbank eurodollar market at their request at approximately 11:00 a.m.
(London time) two Business Days prior to the commencement of such Interest
Period.

 

“Eurodollar Reserve Percentage” means, for any
day during any Interest Period, the reserve percentage (expressed as a decimal,
carried out to five decimal places) in effect on such day, whether or not
applicable to any Lender, under regulations issued from time to time by the FRB
for determining the maximum reserve requirement (including any emergency,
supplemental or other marginal reserve requirement) with respect to
Eurocurrency funding (currently referred to as “Eurocurrency
liabilities”).  The Eurodollar Rate for
each outstanding Eurodollar Loan

 

5

 

shall be adjusted automatically as of the effective date of any change
in the Eurodollar Reserve Percentage.

 

“Event of Default” means any of the events
specified in Section 8.

 

“Existing Credit Agreement” means the Amended
and Restated Credit Agreement, dated as of August 16, 2004, among the Borrower,
the several Lenders from time to time party thereto, Bank of America, N.A., as
administrative agent and swingline lender, and JPMorgan Chase Bank, as
syndication agent, and The Bank of New York, as documentation agent, as amended
to the date hereof (and, for the avoidance of doubt, as the same may be
amended, modified or restated from time to time in the future).

 

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

 

“FELINE PRIDES” means the Income FELINE PRIDES
and the Growth FELINE PRIDES, and all other FELINE PRIDES issued by the
Borrower under the FELINE PRIDES Documents, collectively.

 

“FELINE PRIDES Collateral Agent” means The Bank
of New York, as the Collateral Agent under the FELINE PRIDES Pledge Agreement.

 

“FELINE PRIDES Documents” means the FELINE
PRIDES Indenture, the FELINE PRIDES Purchase Contract Agreement, the FELINE
PRIDES Income Certificates, the FELINE PRIDES Growth Certificates, the FELINE
PRIDES Pledge Agreement and the FELINE Prides Senior Notes.

 

“FELINE PRIDES Growth Certificates” means the
certificates evidencing the Growth FELINE PRIDES.

 

“FELINE PRIDES Income Certificates” means the
certificates evidencing the Income FELINE PRIDES.

 

“FELINE PRIDES Indenture” means the Indenture,
dated as of December 21, 2001, between the Borrower and The Bank of New York
(as Successor Trustee pursuant to the Instrument of Resignation, Appointment
and Acceptance dated January 15, 2003 among the Borrower, Wachovia Bank,
National Association and The Bank of New York, and the Confirmation of
Appointment dated as of July 21, 2004 by The Bank of New York for the benefit
of the Borrower), as amended by the First Supplemental Indenture dated as of
December 21, 2001.

 

6

 

“FELINE PRIDES Pledge Agreement” means the
Pledge Agreement, dated as of December 21, 2001, between the Borrower and The
Bank of New York (as successor Collateral Agent, Custodial Agent, Purchase
Contract Agent and Securities Intermediary pursuant to the Instrument of
Resignation, Appointment and Acceptance dated January 15, 2003 among the
Borrower, Wachovia Bank, National Association and The Bank of New York, and the
Confirmation of Appointment dated as of July 21, 2004 by The Bank of New York
for the benefit of the Borrower), as amended by the Amendment to the Pledge
Agreement dated as of August 17, 2004.

 

“FELINE PRIDES Purchase Contracts” means, with
respect to the FELINE PRIDES, the component purchase contracts under which each
Holder thereof agrees to purchase common stock of the Borrower in an amount and
for a price determined under the applicable provisions of the FELINE PRIDES
Purchase Contract Agreement.

 

“FELINE PRIDES Purchase Contract Agent” means
The Bank of New York, as Purchase Contract Agent under the FELINE PRIDES
Purchase Contract Agreement.

 

“FELINE PRIDES Purchase Contract Agreement” means
the Purchase Contract Agreement, dated as of December 21, 2001, between the
Borrower and The Bank of New York (as successor Collateral Agent, Custodial
Agent, Purchase Contract Agent and Securities Intermediary pursuant to the
Instrument of Resignation, Appointment and Acceptance dated January 15, 2003
among the Borrower, Wachovia Bank, National Association and The Bank of New
York, and the Confirmation of Appointment dated as of July 21, 2004 by The Bank
of New York for the benefit of the Borrower).

 

“FELINE PRIDES Senior Notes” means the
Borrower’s 6% Senior Notes due 2006, issued as a component of the FELINE
PRIDES.

 

“FELINE PRIDES II Senior Notes” means the
Borrower’s interest bearing notes due February 17, 2010, issued as a
component of the FELINE PRIDES equity security units of the Borrower issued on
February 17, 2004.

 

“Financing Lease” means any lease of property,
real or personal, the obligations of the lessee in respect of which are
required in accordance with GAAP to be capitalized on a balance sheet of the
lessee.

 

“Fixed Cash Component of the Purchase Price”
means that portion of the Purchase Price payable to Holders whose tender of
FELINE PRIDES Senior Notes has been accepted in the Tender Offer; pursuant to
the Tender Offer Documents, the amount of such portion is equal to the excess
of the Purchase Price over the principal amount of such notes.

 

“FRB” means the Board of Governors of the
Federal Reserve System of the United States.

 

“Funds” means the collective reference to all
Investment Companies and other investment accounts or funds (in whatever form
and whether personal or corporate) for which any Subsidiary or Investment Firm
provides advisory, management or administrative services.

 

7

 

“GAAP” means generally accepted accounting
principles in the United States of America in effect from time to time.

 

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

 

“Growth FELINE PRIDES” means the Borrower’s
Growth FELINE PRIDES, bearing CUSIP No. 008252603.

 

“Guarantee Obligation” means as to any Person
(the “guaranteeing person”), any obligation of (a) the guaranteeing
person or (b) another Person (including any bank under any letter of credit)
with respect to which the guaranteeing person has issued a reimbursement,
counterindemnity or similar obligation, in any such case guaranteeing or in
effect guaranteeing any Indebtedness, leases, dividends or other obligations
(the “primary obligations”) of any other third Person (the “primary obligor”)
in any manner, whether directly or indirectly, including any obligation of the
guaranteeing person, whether or not contingent, (i) to purchase any such
primary obligation or any property constituting direct or indirect security
therefor, (ii) to advance or supply funds (1) for the purchase or payment of
any such primary obligation or (2) to maintain working capital or equity
capital of the primary obligor or otherwise to maintain the net worth or
solvency of the primary obligor, (iii) to purchase property, securities or
services primarily for the purpose of assuring the owner of any such primary
obligation of the ability of the primary obligor to make payment of such
primary obligation or (iv) otherwise to assure or hold harmless the owner of
any such primary obligation against loss in respect thereof; provided
that the term Guarantee Obligation shall not include endorsements of
instruments for deposit or collection in the ordinary course of business.  The amount of any Guarantee Obligation of
any guaranteeing person shall be deemed to be the lower of (a) an amount equal
to the stated or determinable amount of the primary obligation in respect of
which such Guarantee Obligation is made and (b) the maximum amount for which
such guaranteeing person may be liable pursuant to the terms of the instrument
embodying such Guarantee Obligation, unless such primary obligation and the
maximum amount for which such guaranteeing person may be liable are not stated
or determinable, in which case the amount of such Guarantee Obligation shall be
such guaranteeing person’s maximum reasonably anticipated liability in respect
thereof as determined by the Borrower in good faith.

 

“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.

 

“Holder” means a holder of FELINE PRIDES.

 

“Income FELINE PRIDES” means the Borrower’s
Income FELINE PRIDES, bearing CUSIP No. 008252504.

 

8

 

“Indebtedness” means, as to any Person at any
date and without duplication, (a) all indebtedness of such Person for borrowed
money or for the deferred purchase price of property or services (other than
current trade liabilities incurred in the ordinary course of business and
payable in accordance with customary practices), (b) any other indebtedness of
such Person which is evidenced by a note, bond, debenture or similar instrument
(including the FELINE PRIDES Senior Notes and the FELINE PRIDES II Senior
Notes), (c) all obligations of such Person under Financing Leases, (d) all
obligations of such Person in respect of acceptances issued or created for the
account of such Person, (e) all obligations of such Person under noncompetition
agreements reflected as liabilities on a balance sheet of such Person in
accordance with GAAP, (f) all liabilities secured by any Lien on any property
owned by such Person even though such Person has not assumed or otherwise
become liable for the payment thereof, (g) all net obligations of such Person
under interest rate, commodity, foreign currency and financial markets swaps,
options, futures and other hedging obligations (valued, at such date, in
accordance with the Borrower’s customary practices, as approved by its
independent certified public accountants) and (h) all Guarantee Obligations of
such Person in respect of any of the foregoing.  For purposes of the foregoing definition, with regard to a
Subsidiary, the term “Indebtedness” shall include only that portion of its
Indebtedness representing the percentage of its Indebtedness equal to the percentage
of the Borrower’s ownership interest in such Subsidiary.  For the avoidance of doubt, the term
“Indebtedness” shall not include (i) Synthetic Lease Obligations, (ii) any
Guarantee Obligations in respect of Synthetic Lease Obligations or (iii) any
liabilities secured by any Lien in connection with Synthetic Lease Obligations.

 

“Indemnified Liabilities” is defined in Section
10.05.

 

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

 

“Interest Payment Date” means (a) as to any ABR
Loan, the last day of each month to occur while such Loan is outstanding, (b)
as to any Eurodollar Loan having an Interest Period of three months or less,
the last day of such Interest Period and (c) as to any Eurodollar Loan having
an Interest Period longer than three months, each day which is three months, or
a whole multiple thereof, after the first day of such Interest Period and the
last day of such Interest Period.

 

“Interest Period” means, with respect to any
Eurodollar Loan:

 

(i)                                     initially,
the period commencing on the borrowing or conversion date, as the case may be,
with respect to such Eurodollar Loan and ending one, two or three months
thereafter (or such other period ending on the Termination Date as is requested
by the Borrower and consented to by the Required Lenders and the Administrative
Agent), as selected by the Borrower in its notice of borrowing or notice of
conversion, as the case may be, given with respect thereto; and

 

(ii)                                  thereafter,
each period commencing on the last day of the next preceding Interest Period
applicable to such Eurodollar Loan and ending one, two or three months
thereafter (or such other period ending on the Termination Date as is requested
by the Borrower and consented to by the Required Lenders and the

 

9

 

Administrative Agent), as
selected by the Borrower by irrevocable notice to the Administrative Agent not
less than three Business Days prior to the last day of the then current Interest
Period with respect thereto;

 

provided
that the foregoing provisions relating to Interest Periods are subject to the
following:

 

(1) if any Interest Period would otherwise end on a
day that is not a Business Day, such Interest Period shall be extended to the
next succeeding Business Day unless the result of such extension would be to
carry such Interest Period into another calendar month in which event such
Interest Period shall end on the immediately preceding Business Day;

 

(2) the Borrower may not select any Interest Period
that would extend beyond the scheduled Termination Date; and

 

(3) unless otherwise agreed by the Borrower, the
Required Lenders and the Administrative Agent, any Interest Period that begins
on the last Business Day of a calendar month (or on a day for which there is no
numerically corresponding day in the calendar month at the end of such Interest
Period) shall end on the last Business Day of the appropriate subsequent
calendar month.

 

“Investment Advisers Act” means the Investment
Advisers Act of 1940.

 

“Investment Company” means an “investment
company” as such term is defined in the Investment Company Act.

 

“Investment Company Act” means the Investment
Company Act of 1940.

 

“Investment Firm” means any Subsidiary or other
Person engaged, directly or indirectly, primarily in the business (the “Investment
Management Business”) of providing investment advisory, management,
distribution or administrative services to Funds (or investment accounts or
funds which will be included as Funds after the Borrower acquires an interest
in such other Person) and in which the Borrower, directly or indirectly, has
purchased or otherwise acquired, or has entered into an agreement to purchase
or otherwise acquire, Capital Stock or other interests entitling the Borrower,
directly or indirectly, to a share of the revenues, earnings or value thereof.

 

“Investment Management Business” is defined in
the definition of “Investment Firm.”

 

“Lenders” is defined in the preamble hereto.

 

“Lien” means any mortgage, pledge,
hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or
other), charge or other security interest 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
Financing Lease or synthetic lease having substantially the same economic
effect as any of the foregoing).

 

“Loan Documents” means this Agreement, any
Notes and the Security Documents.

 

10

 

“Loans” is defined in Section 2.1(a).

 

“Material Adverse Effect” means a material
adverse effect on (a) the business, operations, property or condition
(financial or otherwise) of the Borrower or of the Borrower and its
Subsidiaries taken as a whole, (b) the ability of the Borrower to perform its
obligations under any Loan Document or (c) the validity or enforceability
against the Borrower of this or any of the other Loan Documents or the rights
or remedies of the Administrative Agent or the Lenders hereunder or thereunder.

 

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

 

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

 

“Non-Excluded Taxes” is defined in Section
3.11.

 

“Note” is defined in Section 2.6(e).

 

“Participant” is defined in Section 10.6(b).

 

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

 

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

 

“Plan” means at a particular time, any employee
benefit plan which is covered by ERISA and in respect of which the Borrower or
a Commonly Controlled Entity is (or, if such plan were terminated at such time,
would under Section 4069 of ERISA be deemed to be) an “employer” as defined in
Section 3(5) of ERISA.

 

“Pledge Agreement” means the Pledge Agreement,
dated the Closing Date, made by the Borrower to the Administrative Agent, as
agent for the Lenders.

 

“Pledged Collateral” means the “Collateral”, as
defined in the Pledge Agreement.

 

“Pledged Treasury Strips” means the Treasury
Strips constituting Pledged Collateral.

 

“Purchase Price” means the aggregate cash
consideration paid by the Borrower to the Depository for the account of
tendering Holders pursuant to the terms and conditions of the Tender Offer.

 

“Purchase Contract Settlement Date” means
November 17, 2004.

 

“Register” is defined in Section 10.6(d).

 

“Regulation U” means Regulation U of the FRB.

 

11

 

“Related Parties” means, with respect to any
Person, such Person’s Affiliates and the partners, directors, officers,
employees, agents and advisors of such Person and of such Affiliates.

 

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

 

“Reportable Event” means a reportable event as
defined in Section 4043 of ERISA and the regulations issued under such section
with respect to a Plan, excluding however, such events as to which the PBGC by
regulation waived the requirements of Section 4043(a) of ERISA that it be
notified within 30 days of the occurrence of such event; provided, however,
that a failure to meet the minimum funding standard of Section 412 of the Code
and of Section 302 of ERISA shall be a Reportable Event regardless of the
issuance of any such waiver of the notice requirement in accordance with either
Section 4043(a) of ERISA or Section 412(d) of the Code.

 

“Required Lenders” means at any time, Lenders
the Commitment Percentages of which aggregate more than 50%.

 

“Requirement of Law” means, as to any Person,
any law, treaty, rule or regulation or determination of an arbitrator or a
court or other Governmental Authority, in each case applicable to or binding
upon such Person or any of its property or to which such Person or any of its
property is subject.

 

“Reserved Common Stock” is defined in Section
4.17(b).

 

“Responsible Officer” means each of the chief
executive officer, the president, the senior vice president, any executive vice
president or any vice president of the Borrower or, with respect to financial
matters, the senior financial officer of the Borrower, in each case acting
singly.

 

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

 

“Securities Acts” means the Securities Act of
1933 and the Securities Exchange Act of 1934.

 

“Security Documents” the Pledge Agreement, the
Control Agreement and the UCC Financing Statement.

 

“Single Employer Plan” means any Plan which is
covered by Title IV of ERISA, but which is not a Multiemployer Plan.

 

“Subsidiary” means, as to any Person, a
corporation, partnership, limited liability company or other entity of which
Capital Stock having ordinary voting power (other than Capital Stock having
such power only by reason of the happening of a contingency) to elect a
majority of the board of directors or other managers of such corporation,
partnership, limited liability company or other entity is at the time owned, or
the management of which is otherwise controlled, directly or indirectly through
one or more intermediaries, or both, by such Person.

 

12

 

Unless otherwise qualified, all references to a “Subsidiary” or to
“Subsidiaries” in this Agreement shall refer to a Subsidiary or Subsidiaries of
the Borrower.

 

“Synthetic Lease Obligation” means the monetary
obligations of a Person under (a) a so-called synthetic, off-balance sheet or
tax retention lease, or (b) an agreement for the use or possession of property
creating obligations that do not appear on the balance sheet of such Person but
which, upon the insolvency or bankruptcy of such Person, would be characterized
as the indebtedness of such Person (without regard to accounting treatment).

 

“Tender Offer” means the Borrower’s offer to
purchase the FELINE PRIDES Senior Notes pursuant to the Tender Offer Documents.

 

“Tender Offer Documents” the Borrower’s Offer
to Purchase for Cash Any and All of the FELINE PRIDES Senior Notes, dated July
22, 2004, the related Letter of Transmittal and the Depositary Agreement, dated
July 22, 2004, between the Borrower and The Bank of New York, as Depository.

 

“Termination Date” means November 17, 2004.

 

“The Bank of New York” means The Bank of New
York, a New York state banking corporation, and its successors.

 

“Tranche” means the collective reference to
Eurodollar Loans having Interest Periods that began or will begin on the same
date and end on the same later date (whether or not such Loans shall originally
have been made on the same day).

 

“Transferee” is defined in Section 10.6(f).

 

“Treasury Strips” means principal strips of
U.S. Treasury securities bearing CUSIP No. 912803AB9.

 

“Type” means, as to any Loan, its nature as an
ABR Loan or a Eurodollar Loan.

 

“UCC Financing Statement” means the UCC
financing statement in the form attached as Schedule 1.1.

 

1.2                                                                                 Other
Definitional and Interpretive Provisions. 
(a)                      Unless
otherwise specified therein, all terms defined in this Agreement shall have the
defined meanings when used in any Notes or any certificate or other document
made or delivered pursuant hereto.

 

(b)                                 When
used with reference to a period of time, the word “from” means “from and
including” and the word “to” means “to but excluding”.

 

(c)                                  The
term “including” is not limiting and means “including without limitation.”

 

(d)                                 Unless
otherwise expressly provided herein, (i) references to agreements (including
this Agreement) and other contractual instruments shall be deemed to include
all

 

13

 

subsequent amendments and other modifications thereto, but only to the
extent such amendments and other modifications are not prohibited by the terms
of any Loan Document; and (ii) references to any statute or regulation are to
be construed as including all statutory and regulatory provisions and rules
consolidating, amending, replacing, supplementing or interpreting such statute
or regulation.

 

(e)                                  Section,
subsection, clause, Schedule and Exhibit references
are to this Agreement unless otherwise specified.

 

(f)                                    The
meanings given to terms defined herein shall be equally applicable to both the
singular and plural forms of such terms.

 

1.3                                                                                 Accounting
Terms.  All accounting terms not
specifically or completely defined herein shall be construed in conformity
with, and all financial data (including financial ratios and other financial
calculations) required to be submitted pursuant to this Agreement shall be
prepared in conformity with, GAAP applied on a consistent basis, as in effect
from time to time, applied in a manner consistent with that used in preparing
the audited consolidated balance sheet of the Borrower and its consolidated
Subsidiaries as at December 31, 2003 and the related audited consolidated statements
of income and of cash flows for the fiscal year ended on such date, audited by
PricewaterhouseCoopers LLP, except as otherwise specifically prescribed herein.

 

SECTION 2

 

AMOUNT AND TERMS OF COMMITMENTS

 

2.1                                                                                 Commitments.  (a) 
Subject to the terms and conditions hereof, each Lender severally agrees
to make a single term loan (collectively, “Loans”) (provided that
any repricing or conversion of an outstanding Loan shall not be considered a
making of a Loan) to the Borrower on the Closing Date in an aggregate principal
amount not to exceed the amount of such Lender’s Commitment; provided
that the aggregate amount of the Loans shall not exceed the lesser of
$51,000,000 and the Borrowing Base on the Closing Date.  No Loan (or portion thereof) that has been
paid or prepaid may be reborrowed.  

 

(b)                                 The
Loans may from time to time be (i) Eurodollar Loans, (ii) ABR Loans or (iii) a
combination thereof, as determined by the Borrower and notified to the
Administrative Agent in accordance with Sections 2.2 and 3.3.

 

2.2                                                                                 Procedure
for Borrowing.  The Borrower may
borrow under the Commitments on the Closing Date; provided that the
Borrower shall give the Administrative Agent irrevocable written notice, in
substantially the form of Exhibit I hereto (which notice must be
received by the Administrative Agent prior to 11:00 a.m., New York City time,
(a) three Business Days prior to the requested date of borrowing, if all or any
part of the requested Loans are to be initially Eurodollar Loans or (b) on the
requested date of borrowing, if all of the requested Loans are to be initially
ABR Loans), in each case specifying (i) the amount to be borrowed, (ii) the
requested date of borrowing, (iii) whether the borrowing is to be of
Eurodollar Loans, ABR Loans or a combination thereof and (iv) if the borrowing
is to be entirely or partly

 

14

 

of Eurodollar Loans, the respective amounts of each Type of Loan and
the respective lengths of the initial Interest Periods for such Eurodollar
Loans.  Each borrowing of ABR Loans
shall be in an amount equal to $1,000,000 or a whole multiple of $100,000 in
excess thereof, and each borrowing of Eurodollar Loans shall be in an amount
equal to $5,000,000 or a whole multiple of $1,000,000 in excess thereof.  Upon receipt of any such notice from the
Borrower, the Administrative Agent shall promptly notify each Lender
thereof.  Each Lender will make the
amount of its pro rata share of each borrowing available to the Administrative
Agent for the account of the Borrower at the Administrative Agent’s Office
prior to 1:00 p.m., New York City time, on the Closing Date in funds
immediately available to the Administrative Agent.  Such borrowing will then be made available to the Borrower by the
Administrative Agent crediting the account of the Borrower on the books of such
office with the aggregate of the amounts made available to the Administrative
Agent by the Lenders and in like funds as received by the Administrative Agent.  The failure of any Lender to make a Loan to
be made by it as part of any borrowing shall not relieve any other Lender of
its obligation to make available its share of such borrowing.

 

2.3                                                                                 [Reserved]

 

2.4                                                                                 [Reserved]

 

2.5                                                                                 Termination
or Reduction of Commitments.  The
Commitments shall automatically terminate at 5:00 p.m. on the Closing Date.

 

2.6                                                                                 Repayment
of Loans; Evidence of Debt. 
(a)  The Borrower hereby
unconditionally promises to pay to the Administrative Agent for the account of
each Lender the then unpaid principal amount of each Loan of such Lender on the
Termination Date (or such earlier date on which the Loans become due and
payable pursuant to Section 8). 
The Borrower hereby further agrees to pay interest on the unpaid
principal amount of the Loans from time to time outstanding from the date
hereof until payment in full thereof at the rates per annum, and on the dates,
set forth in Section 3.5.

 

(b)                                 Each
Lender shall maintain in accordance with its usual practice an account or
accounts evidencing indebtedness of the Borrower to such Lender resulting from
each Loan of such Lender from time to time, including the amounts of principal
and interest payable and paid to such Lender from time to time under this
Agreement.

 

(c)                                  The
Administrative Agent shall maintain the Register pursuant to Section 10.6(d),
and a subaccount therein for each Lender, in which shall be recorded (i) the
amount of each Loan made hereunder, the Type thereof and each Interest Period
applicable with respect to each Eurodollar Loan, (ii) the amount of any principal
or interest due and payable or to become due and payable from the Borrower to
each Lender hereunder and (iii) both the amount of any sum received by the
Administrative Agent hereunder from the Borrower and each Lender’s share
thereof.

 

(d)                                 The
entries made in the Register and the accounts of each Lender maintained
pursuant to Section 2.6(b) shall, to the extent permitted by applicable
law, be prima
facie evidence of the existence and amounts of the obligations of
the Borrower therein recorded;

 

15

 

provided that the failure of any
Lender or the Administrative Agent to maintain the Register or any such
account, or any error therein, shall not in any manner affect the obligation of
the Borrower to repay (with applicable interest) the Loans made to the Borrower
by such Lender in accordance with the terms of this Agreement.

 

(e)                                  The
Borrower agrees that, upon the request to the Administrative Agent by any
Lender, the Borrower will execute and deliver to such Lender a promissory note
of the Borrower evidencing the Loans of such Lender, substantially in the form
of Exhibit A with appropriate insertions as to date and principal amount
(a “Note”).

 

2.7                                                                                 [Reserved]

 

2.8                                                                                 [Reserved]

 

SECTION 3

 

GENERAL PROVISIONS APPLICABLE TO THE LOANS

 

3.1                                                                                 No
Optional Prepayment.  The Loans may
not be prepaid except as required by Section 3.2 or Section 8.

 

3.2                                                                                 Mandatory
Prepayment.  If, at any time, the
aggregate principal amount of the Loans exceeds the Borrowing Base, the
Borrower shall immediately prepay Loans in the amount of such excess.  All prepayments of Loans pursuant to this Section
3.2 shall be made without premium or penalty (but shall be subject to Section
3.12) and shall be accompanied by accrued and unpaid interest on the
principal amount being prepaid.  All
such prepayments shall be applied as directed in writing by the Borrower or, in
the absence of such direction, first, to prepay ABR Loans until the ABR
Loans are paid in full and, second, to prepay Eurodollar Loans.

 

3.3                                                                                 Conversion
and Continuation Options.  (a)  The Borrower may elect from time to time to
convert Eurodollar Loans to ABR Loans by giving the Administrative Agent at
least two Business Days’ prior irrevocable written notice, substantially in the
form of Exhibit J hereto, of such election; provided that any
such conversion of Eurodollar Loans may only be made on the last day of an
Interest Period with respect thereto. 
The Borrower may elect from time to time to convert ABR Loans to
Eurodollar Loans by giving the Administrative Agent at least three Business
Days’ prior irrevocable written notice, substantially in the form of Exhibit
J hereto, of such election.  Any
such notice of conversion to Eurodollar Loans shall specify the length of the
initial Interest Period or Interest Periods therefor.  Upon receipt of any such notice the Administrative Agent shall
promptly notify each Lender thereof. 
All or any part of outstanding Eurodollar Loans and ABR Loans may be
converted as provided herein; provided that no Loan may be converted
into a Eurodollar Loan when any Event of Default has occurred and is continuing
and the Administrative Agent has or the Required Lenders have determined that
such a conversion is not appropriate.

 

(b)                                 Any
Eurodollar Loans may be continued as such upon the expiration of the then
current Interest Period with respect thereto by the Borrower giving written
notice, substantially in the form of Exhibit J hereto, to the
Administrative Agent, in accordance with the

 

16

 

applicable provisions of the term “Interest Period” set forth in Section
1.1, of the length of the next Interest Period to be applicable to such
Loans; provided that no Eurodollar Loan may be continued as such when
any Event of Default has occurred and is continuing and the Administrative
Agent has notified the Borrower that the Required Lenders have determined that
such a continuation is not appropriate; and provided, further, that if
the Borrower shall fail to give such notice or if such continuation is not
permitted such Eurodollar Loans shall be automatically converted to ABR Loans
on the last day of such then expiring Interest Period.

 

3.4                                                                                 Minimum
Amounts and Maximum Number of Tranches. 
All conversions and continuations of Loans hereunder and all selections
of Interest Periods hereunder shall be in such amounts and be made pursuant to
such elections so that, after giving effect thereto, the aggregate principal
amount of the Loans comprising each Eurodollar Tranche shall be equal to
$5,000,000 or a whole multiple of $1,000,000 in excess thereof.  In no event shall there be more than one
Eurodollar Tranche outstanding at any time.

 

3.5                                                                                 Interest
Rates and Payment Dates.  (a)  Each Eurodollar Loan shall bear interest for
each day during each Interest Period with respect thereto at a rate per annum
equal to the Eurodollar Rate determined for such day plus the Applicable
Margin.

 

(b)                                 Each
ABR Loan shall bear interest at a rate per annum equal to the ABR plus
the Applicable Margin.

 

(c)                                  If
any amount payable by the Borrower under any Loan Document is not paid when due
(without regard to any applicable grace period), whether at stated maturity, by
acceleration or otherwise, such amount shall thereafter bear interest at a
fluctuating interest rate per annum at all times equal to the Default Rate to
the fullest extent permitted by applicable laws.  Furthermore, upon the request of the Required Lenders, at any
time an Event of Default exists, the Borrower shall pay interest on the Loans
at a fluctuating interest rate per annum at all times equal to the Default Rate
to the fullest extent permitted by applicable laws.

 

(d)                                 Interest
shall be payable in arrears on each Interest Payment Date and on the
Termination Date; provided that interest accruing pursuant to Section
3.5(c) shall be payable from time to time on demand.

 

3.6                                                                                 Computation
of Interest and Fees.  (a)  Interest based on The Bank of New York’s
“prime rate” shall be calculated on the basis of a year of 365 (or, if
applicable, 366) days and for the actual number of days elapsed.  All other interest and all fees shall be
calculated on the basis of a year of 360 days and for the actual number of days
elapsed.  The Administrative Agent shall
as soon as practicable notify the Borrower and the Lenders of each
determination of a Eurodollar Rate.  Any
change in the interest rate on a Loan resulting from a change in the ABR or the
Eurodollar Reserve Percentage shall become effective as of the opening of business
on the day on which such change becomes effective.  The Administrative Agent shall as soon as practicable notify the
Borrower and the Lenders of the effective date and the amount of each such
change in the ABR or the Eurodollar Reserve Percentage.

 

(b)                                 Each
determination of an interest rate by the Administrative Agent pursuant to any
provision of this Agreement shall be conclusive and binding on the Borrower

 

17

 

and the Lenders in the absence of manifest error.  The Administrative Agent shall, at the
request of the Borrower or any Lender, deliver to the Borrower or such Lender a
statement showing the quotations used by the Administrative Agent in
determining any interest rate pursuant to Section 3.5(a).

 

3.7                                                                                 Inability
to Determine Interest Rate.  If
prior to the first day of any Interest Period:

 

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

 

(b)                                 the
Administrative Agent shall have received notice from The Bank of New York that
the Eurodollar Rate determined or to be determined for such Interest Period
will not adequately and fairly reflect the cost to the Lenders (as conclusively
certified by The Bank of New York) of making or maintaining their affected
Loans during such Interest Period,

 

then the Administrative
Agent shall give telecopy or telephonic notice thereof to the Borrower and the
affected Lenders as soon as practicable thereafter.  If such notice is given, (x) any Eurodollar Loans requested to be
made on the first day of such Interest Period shall be made as ABR Loans, (y)
any ABR Loans that were to have been converted on the first day of such
Interest Period to Eurodollar Loans shall be continued as ABR Loans and (z) any
outstanding Eurodollar Loans shall be converted, on the first day of such
Interest Period, to ABR Loans.  Until
such notice has been withdrawn by the Administrative Agent, no further
Eurodollar Loans shall be made or continued as such, nor shall the Borrower
have the right to convert Loans to Eurodollar Loans.

 

3.8                                                                                 Pro
Rata Treatment and Payments. 
(a)  Each borrowing by the
Borrower from the Lenders hereunder shall be made pro rata according to the
respective Commitment Percentages of the Lenders.  Each payment (including each prepayment) by the Borrower on
account of principal of and interest on the Loans shall be made pro rata
according to the respective outstanding principal amounts of the Loans then
held by the Lenders.  All payments
(including prepayments) to be made by the Borrower hereunder, whether on
account of principal, interest, fees or otherwise, shall be made without set
off or counterclaim and shall be made prior to 12:00 noon, New York City time,
on the due date thereof to the Administrative Agent, for the account of the
Lenders at the Administrative Agent’s Office, in Dollars and in immediately
available funds.  The Administrative
Agent shall distribute such payments to the Lenders promptly upon receipt (and
if such payment is received prior to 12:00 noon, on the same day) in like funds
as received.  If any payment hereunder
becomes due and payable on a day other than a Business Day, the due date for
such payment shall be extended to the next succeeding Business Day, and, with
respect to payments of principal, interest thereon shall be payable at the then
applicable rate during such extension and such extension of time shall in such
case be included in the computation of payment of interest or fees, as the case
may be.

 

(b)                                 Unless
the Administrative Agent shall have been notified in writing by any Lender
prior to a borrowing that such Lender will not make the amount that would
constitute

 

18

 

its portion of such borrowing available to the Administrative Agent,
the Administrative Agent may assume that such Lender is making such amount
available to the Administrative Agent, and the Administrative Agent may, in
reliance upon such assumption, make available to the Borrower a corresponding
amount.  If such amount is not made
available to the Administrative Agent by the required time on the Borrowing
Date therefor, such Lender shall pay to the Administrative Agent, on demand,
such amount with interest thereon at a rate equal to the daily average Federal
Funds Rate for the period until such Lender makes such amount immediately
available to the Administrative Agent. 
A certificate of the Administrative Agent submitted to any Lender with
respect to any amounts owing under this subsection shall be conclusive in the
absence of manifest error.  If such
Lender’s portion of such borrowing is not made available to the Administrative Agent
by such Lender within three Business Days of such Borrowing Date, the
Administrative Agent shall also be entitled to recover such amount with
interest thereon at the rate per annum applicable to ABR Loans hereunder, on
demand, from the Borrower.

 

(c)                                  In
the event that a Lender fails to make available after a period of three
Business Days to the Administrative Agent its portion of a borrowing, the
Borrower may, upon not less than five Business Days prior irrevocable written
notice to the Administrative Agent, immediately terminate the Commitment of
such Lender, and designate an acceptable replacement Lender (which may be one
of the other Lenders) to purchase at par all of the Lender’s interests in
accordance with the provisions of Section 10.6(c).  Any Lender being so replaced by the Borrower
agrees to transfer its interest in this Agreement and, if applicable, its Note,
to the substitute Lender pursuant to Section 10.6(c); provided
that concurrently with such transfer, such Lender so substituted shall be paid
all amounts owing to it hereunder and all costs reasonably determined by it to
be attributable to such transfer. 
Notwithstanding the foregoing, the Lender being replaced shall not be
deemed to be released from any of its rights or obligations under any Loan
Document (including Section 9.7) for actions taken or failed to be taken
by it prior to the date of such substitution.

 

3.9                                                                                 Illegality.  Notwithstanding any other provision herein,
if the adoption of or any change in any Requirement of Law or in the
interpretation or application thereof shall make it unlawful for any Lender to
make or maintain Eurodollar Loans as contemplated by this Agreement, (a) the
commitment of such Lender hereunder to make Eurodollar Loans, continue
Eurodollar Loans as such and convert ABR Loans to Eurodollar Loans shall
forthwith be cancelled and (b) such Lender’s Loans then outstanding as
Eurodollar Loans, if any, shall be converted automatically to ABR Loans on the
respective last days of the then current Interest Periods with respect to such
Loans or within such earlier period as required by law.  If any such conversion of a Eurodollar Loan
occurs on a day which is not the last day of the then current Interest Period
with respect thereto, the Borrower shall pay to such Lender such amounts, if
any, as may be required pursuant to Section 3.12.

 

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

 

(i)                                     shall
subject any Lender to any tax of any kind whatsoever with respect to this
Agreement, any Note or any Eurodollar Loan made by it, or change the

 

19

 

basis of taxation of
payments to such Lender in respect thereof (except for Non-Excluded Taxes
covered by Section 3.11 and changes in the rate of tax on the overall
net income of such Lender);

 

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

 

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

 

and the result of any of the foregoing is to increase
the cost to such Lender, by an amount which such Lender in good faith deems to
be material, of making, converting into, continuing or maintaining Eurodollar
Loans or to reduce any amount receivable hereunder in respect thereof, then, in
any such case, the Borrower shall promptly (and in any event within 10 days
after receipt of a certificate in accordance with Section 3.10(c)) pay
such Lender such additional amount or amounts as will compensate such Lender
for such increased cost or reduced amount receivable.

 

(b)                                 If
any Lender shall have determined that the adoption of or any change in any
Requirement of Law regarding capital adequacy or in the interpretation or
application thereof or compliance by such Lender or any corporation controlling
such Lender with any request or directive regarding capital adequacy (whether
or not having the force of law) from any Governmental Authority made subsequent
to the date hereof shall have the effect of reducing the rate of return on such
Lender’s or such corporation’s capital as a consequence of its obligations
hereunder to a level below that which such Lender or such corporation could
have achieved but for such adoption, change or compliance (taking into
consideration such Lender’s or such corporation’s policies with respect to
capital adequacy) by an amount deemed by such Lender in good faith to be
material, then from time to time, the Borrower shall promptly (and in any event
within 10 days after receipt of a certificate in accordance with Section
3.10(c)) pay to such Lender such additional amount or amounts as will
fairly compensate such Lender for such reduction in return on capital.

 

(c)                                  If
any Lender becomes entitled to claim any additional amounts pursuant to this Section
3.10, it shall promptly notify the Borrower (with a copy to the
Administrative Agent) of the event by reason of which it has become so
entitled; provided that no additional amount shall be payable under this
Section 3.10 for a period longer than one year prior to such notice to
the Borrower.  A certificate as to any
additional amounts payable pursuant to this Section 3.10 submitted by
such Lender to the Borrower (with a copy to the Administrative Agent) shall be
conclusive in the absence of manifest error. 
The agreements in this Section shall survive for a period of one year
after the termination of this Agreement and the payment of the Loans and all
other amounts payable hereunder.  Each
Lender agrees that it will not make any claim under this Section 3.10 unless
such Lender generally is making similar claims under other credit agreements
that have provisions substantially the same as this Section 3.10 with customers
of similar credit quality.

 

20

 

3.11                                                                           Taxes.  (a) 
All payments made by the Borrower under this Agreement and any Notes
shall be made free and clear of, and without deduction or withholding for or on
account of, any present or future income, stamp or other taxes, levies,
imposts, duties, charges, fees, deductions or withholdings, now or hereafter
imposed, levied, collected, withheld or assessed by any Governmental Authority,
excluding net income taxes and franchise taxes (imposed in lieu of net income
taxes) imposed on the Administrative Agent or any Lender as a result of a
present or former connection between the Administrative Agent or such Lender
and the jurisdiction of the Governmental Authority imposing such tax or any
political subdivision or taxing authority thereof or therein (other than any
such connection arising solely from the Administrative Agent or such Lender
having executed, delivered or performed its obligations or received a payment
under, or enforced, this Agreement or any Note).  If any such non-excluded taxes, levies, imposts, duties, charges,
fees deductions or withholdings (“Non-Excluded Taxes”) are required to
be withheld from any amounts payable to the Administrative Agent or any Lender
hereunder or under any Note, the amounts so payable to the Administrative Agent
or such Lender shall be increased to the extent necessary to yield to the
Administrative Agent or such Lender (after payment of all Non-Excluded Taxes)
interest or any such other amounts payable hereunder at the rates or in the
amounts specified in this Agreement; provided that the Borrower shall
not be required to increase any such amounts payable, or pay any additional
amount under this Section 3.11(a), to any Lender that is not organized
under the laws of the United States of America or a state thereof if such
Lender fails to comply with the requirements of Section 3.11(b).  Whenever any Non-Excluded Taxes are payable
by the Borrower, as promptly as possible thereafter the Borrower shall send to
the Administrative Agent for its own account or for the account of such Lender,
as the case may be, a certified copy of an original official receipt received
by the Borrower showing payment thereof. 
If the Borrower fails to pay any Non-Excluded Taxes when due to the
appropriate taxing authority or fails to remit to the Administrative Agent the
required receipts or other required documentary evidence, the Borrower shall
indemnify the Administrative Agent and the Lenders for any incremental taxes,
interest or penalties that may become payable by the Administrative Agent or
any Lender as a result of any such failure. 
The agreements in this subsection shall survive for a period of one year
the termination of this Agreement and the payment of the Loans and all other
amounts payable hereunder.

 

(b)                                 Each
Lender that is not incorporated under the laws of the United States of America
or a state thereof shall:

 

(i)                                     deliver
to the Borrower and the Administrative Agent two duly completed copies of
United States Internal Revenue Service Form W-8ECI or Form W- 8BEN, or
successor applicable form, as the case may be;

 

(ii)                                  deliver
to the Borrower and the Administrative Agent two further copies of any such
form or certification on or before the date that any such form or certification
expires or becomes obsolete and after the occurrence of any event requiring a
change in the most recent form previously delivered by it to the Borrower; and

 

(iii)                               obtain such extensions
of time for filing and complete such forms or certifications as may reasonably
be requested by the Borrower or the Administrative Agent;

 

21

 

unless in any such case an event (including any change
in treaty, law or regulation) has occurred prior to the date on which any such
delivery would otherwise be required which renders all such forms inapplicable
or which would prevent such Lender from duly completing and delivering any such
form with respect to it and such Lender so advises the Borrower and the
Administrative Agent.  Such Lender shall
certify that it is entitled to an exemption from United States backup
withholding tax.  Each Person that shall
become a Lender or a Participant pursuant to Section 8.6 shall, upon the
effectiveness of the related transfer, be required to provide all of the forms
and statements required pursuant to this subsection; provided that in
the case of a Participant such Participant shall furnish all such required
forms and statements to the Lender from which the related participation shall
have been purchased.

 

3.12                                                                           Indemnity.  The Borrower agrees to indemnify each Lender
and to hold each Lender harmless from any loss or expense which such Lender may
sustain or incur as a consequence of (a) default by the Borrower in making a
borrowing of, conversion into or continuation of Eurodollar Loans after the
Borrower has given a notice requesting the same in accordance with the
provisions of this Agreement, (b) default by the Borrower in making any
prepayment after the Borrower has given a notice thereof in accordance with the
provisions of this Agreement or (c) the making of a prepayment of Eurodollar
Loans on a day which is not the last day of an Interest Period with respect
thereto.  Such indemnification may
include an amount equal to the excess, if any, of (i) the amount of interest
which would have accrued on the amount so prepaid, or not so prepaid, borrowed,
converted or continued, for the period from the date of such prepayment or of
such failure to prepay, borrow, convert or continue to the last day of such
Interest Period (or, in the case of a failure to borrow, convert or continue,
the Interest Period that would have commenced on the date of such failure) in
each case at the applicable rate of interest for such Loans provided for herein
(excluding, however, the Applicable Margin included therein, if any) over (ii)
the amount of interest (as reasonably determined by such Lender) which would
have accrued to such Lender on such amount by placing such amount on deposit
for a comparable period with leading banks in the interbank eurodollar
market.  This covenant shall survive the
termination of this Agreement and the payment of the Loans and all other
amounts payable hereunder.

 

3.13                                                                           Change
of Lending Office.  Each Lender
agrees that if it makes any demand for payment under Section 3.10 or 3.11(a),
or if any adoption or change of the type described in Section 3.9 shall
occur with respect to it, it will use reasonable efforts (consistent with its
internal policy and legal and regulatory restrictions and so long as such
efforts would not be unreasonably disadvantageous to it, as determined in its
sole discretion) to designate a different lending office if the making of such
a designation would reduce or obviate the need for the Borrower to make
payments under Section 3.10 or 3.11(a), or would eliminate or
reduce the effect of any adoption or change described in Section 3.9.

 

SECTION 4

 

REPRESENTATIONS AND WARRANTIES

 

To induce the Administrative Agent and the Lenders to
enter into this Agreement and to make the Loans, the Borrower hereby represents
and warrants to the Administrative Agent and each Lender that:

 

22

 

4.1                                                                                 Financial
Condition.  The Borrower has
heretofore furnished to each Lender copies of (i) the audited consolidated
balance sheet of the Borrower and its consolidated Subsidiaries as at
December 31, 2003 and the related audited consolidated statements of
income and of cash flows for the fiscal year ended on such date, audited by
PricewaterhouseCoopers LLP and (ii) the unaudited consolidated balance sheet of
the Borrower and its consolidated Subsidiaries as at March 31, 2004 and the
related unaudited consolidated statements of income and of cash flows for the
three-month period ended on such date, certified by a Responsible Officer (the
“Financial Statements”).  The
Financial Statements present fairly, in all material respects, the consolidated
financial condition of the Borrower and its consolidated Subsidiaries as at
December 31, 2003 and March 31, 2004 and present fairly, in all material
respects, the consolidated results of their operations and their consolidated
cash flows for the periods then ended (subject to normal year-end audit
adjustments and the absence of footnote disclosure).  The Financial Statements, including the related schedules and
notes thereto, have been prepared in accordance with GAAP applied consistently
throughout the period involved.  Except
as set forth on Schedule 4.1, neither the Borrower nor any of its
consolidated Subsidiaries had, at December 31, 2003 or at the date hereof, any
material Guarantee Obligation, material contingent liability or material
liability for taxes, or any material long-term lease or unusual material
forward or long-term commitment, including any interest rate or foreign
currency swap or exchange transaction, which is not reflected in the foregoing
statements or in the notes thereto. 
Except as set forth on Schedule 4.1, during the period from
December 31, 2003 to and including the date hereof there has been no sale,
transfer or other disposition by the Borrower or any of its consolidated
Subsidiaries of any material part of its business or property and no purchase
or other acquisition of any business or property (including any capital stock
of any other Person) material in relation to the consolidated financial
condition of the Borrower and its Subsidiaries as of December 31, 2003.

 

4.2                                                                                 No
Change.  Since December 31, 2003,
except as set forth in the Financial Statements and except as set forth on Schedule
4.2, there has been no development or event which has had or could have a
Material Adverse Effect.

 

4.3                                                                                 Corporate
Existence; Compliance with Law. 
Each of the Borrower and each Subsidiary (a) is duly organized, validly
existing and in good standing under the laws of the jurisdiction of its
organization, (b) has the power and authority, and the legal right, to own and
operate its material properties, to lease the material properties it operates
as lessee and to conduct the businesses in which it is currently engaged, (c)
is duly qualified as a foreign corporation, partnership or limited liability
company, as applicable, and in good standing under the laws of each
jurisdiction where its ownership, lease or operation of property or the conduct
of its business requires such qualification except where the failure to be so
qualified or in good standing would not have a Material Adverse Effect and (d)
is in compliance with its certificate of incorporation and by-laws or other
similar organizational or governing documents and with all Requirements of Law
except to the extent that the failure to comply therewith could not, in the
aggregate, have a Material Adverse Effect.

 

4.4                                                                                 Corporate
Power; Authorization; Enforceable Obligations.  The Borrower has the corporate power and authority, and the legal
right, to make, deliver and perform the Loan Documents and has taken all
necessary corporate action to authorize the execution, delivery and performance
of the Loan Documents.  The Borrower has
the corporate power and authority, and

 

23

 

the legal right to borrow hereunder and has taken all necessary
corporate action to authorize such borrowings on the terms and conditions of
this Agreement and any Notes.  Except
for the consent of the Required Lenders (as defined in the Existing Credit
Agreement) under the Existing Credit Agreement, which has been obtained, no
consent or authorization of, filing with, notice to or other act by or in
respect of any Governmental Authority or any other Person is required in
connection with the borrowings hereunder or with the execution, delivery,
performance, validity or enforceability of the Loan Documents against the
Borrower.  This Agreement has been, and
each other Loan Document will be when delivered, duly executed and delivered by
the Borrower.  This Agreement constitutes,
and each other Loan Document when delivered will constitute, a legal, valid and
binding obligation of the Borrower, enforceable against the Borrower in
accordance with its terms, except as enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or other laws
relating to or affecting the enforcement of creditors’ rights generally and by
general equitable principles (whether enforcement is sought by proceedings in
equity or at law).

 

4.5                                                                                 No
Legal Bar.  The execution, delivery
and performance by the Borrower of each Loan Document, the borrowings hereunder
and the use of the proceeds thereof will not violate any certificate of
incorporation and by-laws or other similar organizational or governing
documents, Requirement of Law or Contractual Obligation of the Borrower or of
any Subsidiary, except for such violations of Requirements of Law or
Contractual Obligations which could not, singly or in the aggregate, reasonably
be expected to have a Material Adverse Effect, and will not result in, or
require, the creation or imposition of any Lien on any of its or their
respective properties or revenues pursuant to any such organizational or
governing document, Requirement of Law or Contractual Obligation, except
pursuant to this Agreement and the other Loan Documents.

 

4.6                                                                                 No
Material Litigation.  No litigation,
investigation or proceeding of or before any arbitrator or Governmental
Authority is pending or, to the knowledge of the Borrower, threatened by or
against the Borrower or any Subsidiary or against any of its or their
respective properties or revenues which could reasonably be expected to have a
Material Adverse Effect.

 

4.7                                                                                 No
Default.  Neither the Borrower nor
any Subsidiary is in default under or with respect to any of its Contractual
Obligations in any respect which could have a Material Adverse Effect.  No Default has occurred and is continuing or
would result from the consummation of the transactions contemplated by this
Agreement or any other Loan Document.

 

4.8                                                                                 Ownership
of Property; Liens.  Each of the
Borrower and each Subsidiary has good record and marketable title in fee simple
to, or a valid leasehold interest in, all its material real property, and good
title to, or a valid leasehold interest in, all its other material property,
and none of such property is subject to any Lien except as permitted by Section
7.3.

 

4.9                                                                                 Taxes.  Each of the Borrower and each Subsidiary has
filed or caused to be filed all material tax returns which, to the knowledge of
the Borrower, are required to be filed or has timely filed a request for an
extension of such filing and has paid all taxes shown to be due and payable on
said returns or extension requests or on any assessments made against it or any
of its property and, except as set forth on Schedule 4.9, all other
taxes, fees or other charges

 

24

 

imposed on it or any of its property by any Governmental Authority
(except, in each case, to the extent the amount or validity thereof is currently
being contested in good faith by appropriate proceedings and with respect to
which reserves in conformity with GAAP have been provided on the books of the
Borrower and as to any of which the failure to pay would not have a Material
Adverse Effect).

 

4.10                                                                           Federal
Regulations.  (a)  None of the Pledged Collateral consists of
“margin stock” (within the meaning of Regulation U).  “Margin stock” (within the meaning of Regulation U) constitutes
less than 25% of the value of those assets of the Borrower and its Subsidiaries
which are subject to any limitation on sale or pledge or any similar
restriction hereunder.  If requested by
any Lender or the Administrative Agent, the Borrower will furnish to the
Administrative Agent and each Lender a statement to the foregoing effect in
conformity with the requirements of FR Form U-1 referred to in Regulation U.

 

(b)                                 The
Borrower is not subject to regulation under any Federal or State statute or
regulation (other than Regulation X of the FRB) which limits its ability to
incur Indebtedness.

 

4.11                                                                           ERISA.  No Reportable Event has occurred during the
five-year period prior to the date on which this representation is made or
deemed made with respect to any Plan, and each Plan has complied in all
material respects with the applicable provisions of ERISA and the Code.  The present value of all accrued benefits
under any Single Employer Plan maintained by the Borrower or any Commonly
Controlled Entity (based on those assumptions used to fund the Plans) did not,
as of the last annual valuation date prior to the date on which this
representation is made or deemed made, exceed the value of the assets of such
Plan allocable to such accrued benefits. 
There are no Multiemployer Plans. 
Neither the Borrower nor any Commonly Controlled Entity has had a
complete or partial withdrawal from any Multiemployer Plan.

 

4.12                                                                           Investment
Company Act; Investment Advisers Act. 
(a)  Neither the Borrower nor any
Subsidiary or other Investment Firm is an Investment Company.

 

(b)                                 Each
Subsidiary and each other Investment Firm is, to the extent required thereby,
duly registered as an investment adviser under the Investment Advisers Act,
except to the extent the failure to be so registered could not reasonably be
expected to have a Material Adverse Effect. 
On the date hereof, the Borrower is not an “investment adviser” within
the meaning of the Investment Advisers Act. 
Each Fund which is sponsored by any Subsidiary or other Investment Firm
and which is required to be registered as an “investment company” under the
Investment Company Act is duly registered as such thereunder, except to the
extent the failure to be so registered could not reasonably be expected to have
a Material Adverse Effect.

 

(c)                                  The
Borrower is not required to be registered as a broker-dealer under the
Securities Acts (and each Subsidiary and other Investment Firm required to be
so registered is so duly registered), except to the extent the failure to be so
registered could not reasonably be expected to have a Material Adverse Effect.

 

25

 

(d)                                 Each of the
Borrower, each Subsidiary and each other Investment Firm is duly registered,
licensed or qualified as an investment adviser or broker-dealer in each State
of the United States where the conduct of its business requires such
registration, licensing or qualification and is in compliance in all material
respects with all Federal and State laws requiring such registration, licensing
or qualification, except to the extent the failure to be so registered,
licensed or qualified or to be in such compliance will not have, in the case of
Federal laws, or could not reasonably be expected to have, in the case of State
laws, a Material Adverse Effect.

 

4.13                                                                           Investment
Advisory Agreements. 
Each of the investment advisory agreements, distribution agreements and
shareholder or other servicing contracts to which the Borrower, any Subsidiary
or other Investment Firm is a party is a legal, valid and binding obligation of
the parties thereto enforceable against such parties in accordance with its
terms, except as enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or other laws relating to or affecting
the enforcement of creditors’ rights generally and by general equitable
principles (whether enforcement is sought by proceedings in equity or at law),
except for failures which individually or in the aggregate could not reasonably
be expected to have a Material Adverse Effect; and none of the Borrower, any
Subsidiary or any other Investment Firm is in breach or violation of or in
default under any such agreement or contract in any material respect which
individually or in the aggregate could reasonably be expected to have a
Material Adverse Effect.  The parties
hereto understand that all clients have the right to terminate such investment
advisory agreements at will.

 

4.14                                                                           Subsidiaries and Other Ownership Interests. 
The Subsidiaries listed on Schedule 4.14 hereto constitute
the only Subsidiaries of the Borrower as at the date hereof.  The Borrower has as at the date hereof,
directly or indirectly, an equity or other ownership interest in each
Investment Firm and each other Person listed on Schedule 4.14; and other
than as set forth on such schedule, the Borrower has no such interest, directly
or indirectly, in any other Person.

 

4.15                                                                           Purpose of
Loans. 
The proceeds of the Loans shall be used by the Borrower solely for the
purposes set forth in the Preliminary Statement.

 

4.16                                                                           Accuracy
and Completeness
of Information.  To the best of the Borrower’s knowledge, the
documents furnished and the statements made in writing to the Lenders by or on
behalf of the Borrower in connection with the negotiation, preparation or
execution of this Agreement or any of the other Loan Documents, taken as a
whole, do not contain any untrue statement of fact material to the credit
worthiness of the Borrower or omit to state any such material fact necessary in
order to make the statements contained therein not misleading, in either case
which has not been corrected, supplemented or remedied by subsequent documents
furnished or statements made in writing to the Lenders prior to the date
hereof.

 

4.17                                                                           PRIDES
Documents;
Tender Offer.  (a) 
Each of the FELINE PRIDES Documents has been duly executed and delivered
by the Borrower to the other parties thereto. 
Each of the FELINE PRIDES Documents constitutes a legal, valid and
binding obligation of the Borrower, enforceable against the Borrower in
accordance with its terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium

 

26

 

or similar laws affecting the enforcement of
creditors’ rights generally and by general equitable principles (whether
enforcement is sought by proceedings in equity or at law).  The Borrower is not in default in any of its
obligations under the FELINE PRIDES Documents and no Taxation Event and no
Termination Event (in each case as defined in the FELINE PRIDES Purchase
Contract Agreement) has occurred.

 

(b)                                 Set forth on Schedule 4.17
is: (i) a description of the outstanding amount of the Income FELINE PRIDES and
the Growth FELINE PRIDES; (ii) the amount of the authorized and unissued Common
Stock, which has been reserved and is available for issuance against tender of
payment of the Common Stock Purchase Obligations (such Common Stock, “Reserved
Common Stock”); and (iii) the principal amount of the FELINE PRIDES Senior
Notes that have been tendered and purchased pursuant to the Tender Offer.  The Income FELINE PRIDES and the Growth FELINE
PRIDES described in Schedule 4.17, collectively, constitute all of
the outstanding FELINE PRIDES.

 

(c)                                  When the
Reserved Common Stock is issued and delivered to the FELINE PRIDES Purchase
Contract Agent against tender of payment of the Common Stock Purchase
Obligations of the Holders, such Common Stock will be duly issued, fully paid
and non-assessable, and all obligations of the Borrower to such Holders under
the FELINE PRIDES Documents will be satisfied and discharged.

 

(d)                                 (i) The
Borrower has paid in full the Purchase Price and purchased and canceled the
FELINE PRIDES Senior Notes tendered and accepted in the Tender Offer, (ii) the
Depositary has delivered the Fixed Cash Component of the Purchase Price to
Holders whose tender of such FELINE PRIDES Senior Notes was accepted in the
Tender Offer, purchased Treasury Strips in an aggregate principal amount equal
to the principal amount of such FELINE PRIDES Senior Notes and deposited such
Treasury Strips in the collateral account maintained by the FELINE PRIDES
Collateral Agent to secure the Common Stock Purchase Obligations of such
Holders, and (iii) the Tender Offer has been consummated in accordance with the
terms set forth in the Tender Offer Documents.

 

4.18                                                                           Security
Interest.

 

(a)                                  Simultaneously
with, or prior to the execution and delivery of this Agreement, the Lien on the
Collateral in favor of Bank of America, N.A., as agent for the Lenders under
the Existing Credit Agreement has been terminated or is being terminated.

 

(b)                                 After giving
effect to the termination of the Lien described in Section 4.18(a), the
Borrower has a fully-perfected, first-priority Lien on the Pledged Treasury
Strips to secure the Common Stock Purchase Obligations of the Holders who own
such Treasury Strips (such Lien, the “Borrower Security Interest”),
subject only to the Lien of the Bank Collateral Agent on behalf of the Secured
Parties under the Pledge Agreement. 
Except as provided in the Pledge Agreement, the Borrower has not
assigned, or granted or created any Lien on, the Borrower Security Interest,
and the Borrower will not grant or create or suffer to exist any such Lien
arising from or through the acts or omissions of the Borrower.

 

27

 

(c)                                  After giving
effect to the termination of the Lien described in Section 4.18(a), the
Pledge Agreement creates a first-priority Lien on the Borrower Security
Interest and when a duly executed UCC Financing Statement is filed with the
Secretary of State of the State of New York and the applicable filing fee is
duly paid thereto, the Bank Collateral Agent will have a fully perfected,
first-priority Lien in the Borrower Security Interest.

 

(d)                                 The Pledge
Agreement and the Control Agreement constitute a fully perfected,
first-priority Lien on and in all right, title and interest of the Borrower in
the Cash Collateral.

 

4.19                                                                           Borrowing
Base.  Immediately upon the funding of Loans, the
value at maturity of the Pledged Treasury Strips plus the amount of Cash
Collateral will be at least $53,550,000.

 

SECTION 5

 

CONDITIONS PRECEDENT

 

5.1                                                                                 Conditions
to Loans. 
The agreement of each Lender to make its Loan on the Closing Date is
subject to the satisfaction, immediately prior to or concurrently with the
making of such Loan, of the following conditions precedent:

 

(a)                                  Loan Documents.  The Administrative Agent shall have received
(i) this Agreement, executed and delivered by a duly authorized officer of the
Borrower, with a counterpart for each Lender; (ii) the Pledge Agreement,
executed and delivered by a duly authorized officer of each of the parties
thereto, with a counterpart or a conformed copy for each Lender; and (iii) the
Control Agreement, executed and delivered by a duly authorized officer of each
of the parties thereto, with a counterpart or a conformed copy for each Lender.

 

(b)                                 Related Agreements.  The Administrative Agent shall have received
complete and correct copies of each of the PRIDES Documents, the Tender Offer
Documents and the Existing Credit Agreement, certified as of the Closing Date as
complete and correct copies thereof by the Secretary or an Assistant Secretary
of the Borrower, and such other documents or instruments as may be reasonably
requested by the Administrative Agent.

 

(c)                                  Notes. 
The Administrative Agent shall have received, for the account of each
Lender that has requested the same, a Note made by the Borrower conforming to
the requirements of this Agreement, and executed by a duly authorized officer
of the Borrower.

 

(d)                                 Borrower Certificate.  The Administrative Agent shall have
received, with a counterpart for each Lender, a certificate of the Borrower,
dated the Closing Date, substantially in the form of Exhibit C, with
appropriate insertions and attachments, satisfactory in form and substance to
the Administrative Agent, executed by two Responsible Officers.

 

(e)                                  Corporate Proceedings of the Borrower.  The Administrative Agent shall have
received, with a counterpart for each Lender, a copy of the resolutions, in
form and substance satisfactory to the Administrative Agent, of the Board of
Directors (or similar governing body) of the Borrower authorizing (i) the
execution, delivery and performance of the

 

28

 

Loan Documents, (ii) the
borrowings contemplated hereunder and (iii) the granting by it of the Liens
created pursuant to the Pledge Agreement, certified by the Secretary or an
Assistant Secretary of the Borrower as of the Closing Date, which certificate
shall be in form and substance satisfactory to the Administrative Agent and
shall state that the resolutions thereby certified have not been amended,
modified, revoked or rescinded.

 

(f)                                    Incumbency Certificate.  The Administrative Agent shall have
received, with a counterpart for each Lender, a certificate of the Borrower, dated
the Closing Date, as to the incumbency and signature of the officers of the
Borrower executing any Loan Document, satisfactory in form and substance to the
Administrative Agent, executed by the President or any Vice President and the
Secretary or any Assistant Secretary of the Borrower.

 

(g)                                 Corporate Documents.  The Administrative Agent shall have
received, with a counterpart for each Lender, true and complete copies of the
certificate of incorporation and by-laws (or similar organizational documents)
of the Borrower, certified as of the Closing Date as complete and correct
copies thereof by the Secretary or an Assistant Secretary of the Borrower.

 

(h)                                 Fees. 
All fees payable by the Borrower to the Administrative Agent, the
Arranger and any Lender on or prior to the Closing Date pursuant to this
Agreement or pursuant to the Commitment Letter and Fee Letter, each dated
August 4, 2004, among The Bank of New York, the Arranger and the Borrower
shall have been paid in full, in each case in the amounts and on the dates set
forth herein or therein.

 

(i)                                     Attorney Costs.  The Administrative Agent shall have received
evidence of payment by the Borrower of all Attorney Costs of the Administrative
Agent to the extent invoiced prior to or on the Closing Date, plus such
additional amounts of Attorney Costs as shall constitute the Administrative
Agent’s reasonable estimate of Attorney Costs incurred or to be incurred by it
through the closing proceedings (provided that such estimate shall not
thereafter preclude a final settling of accounts between the Borrower and the
Administrative Agent).

 

(j)                                     Legal Opinion.  The Administrative Agent shall have
received, with a counterpart for each Lender, the executed legal opinion of
Goodwin Procter LLP, counsel to the Borrower and its Subsidiaries,
substantially in the form of Exhibit D. 
Such legal opinion shall cover such other matters incident to the
transactions contemplated by this Agreement as the Administrative Agent may
reasonably require.

 

(k)                                  Pledged Treasury Strips; Transfer Powers.  The Administrative Agent shall have received
confirmation that the Pledged Treasury Strips have been delivered to, and
registered in the name of, the FELINE PRIDES Collateral Agent, in accordance
with the provisions of the Tender Offer Documents and the FELINE PRIDES
Documents, and that the Collateral Agent is holding Pledged Collateral having
the value and in the amount as set forth in Section 4.19.

 

(l)                                     Actions to Perfect Liens.  The Administrative Agent shall have received
evidence in form and substance satisfactory to it that all filings, recordings,
registrations and other actions, including the filing of duly executed
financing statements on form UCC-1,

 

29

 

necessary or, in the opinion of
the Administrative Agent, desirable to perfect the Liens created by the Pledge
Agreement shall have been completed.

 

(m)                               Lien Searches.  The Administrative Agent shall have received
the results of a recent search, by a Person satisfactory to the Administrative
Agent, of the Uniform Commercial Code, judgment and tax lien filings which may
have been filed with respect to personal property of the Borrower, and the
results of such search shall be satisfactory to the Administrative Agent.

 

(n)                                 Consents and Approvals.  The Administrative Agent shall have received
evidence satisfactory to it of the receipt by the Borrower of the consents of
the Required Lenders, as defined in and under the Existing Credit Agreement,
and all other required consents and approvals, if any, to the execution and
delivery of the Loan Documents and the borrowing of the Loans.

 

(o)                                 Representations and Warranties.  Each of the representations and warranties
made by the Borrower in or pursuant to the Loan Documents shall be true and
correct in all material respects on and as of the Closing Date.

 

(p)                                 No Default.  No Default shall have occurred and be
continuing on the Closing Date before or after giving effect to the Loans and
no “Default” shall have occurred and be continuing as defined in the Existing
Credit Agreement.

 

(q)                                 Notice of Borrowing.  The Administrative Agent shall have received
a notice of borrowing pursuant to Section 2.2.

 

(r)                                    Use of Proceeds.  A Responsible Officer shall have delivered
to the Administrative Agent a certificate to the effect that the proceeds of
such Loan will be used in accordance with Section 4.15 and
specifying in reasonable detail the proposed use of the proceeds thereof.

 

The borrowings by the Borrower on the Closing
Date shall constitute a representation and warranty by the Borrower as of the
date thereof that the conditions contained in this Section 5.1 have
been satisfied.

 

SECTION 6

 

AFFIRMATIVE COVENANTS

 

The Borrower hereby agrees that, so long as the
Commitments remain in effect or any amount is owing to any Lender or the
Administrative Agent hereunder or under any other Loan Document, the Borrower
shall and (except in the case of delivery of financial information, reports and
notices) shall cause each of its Subsidiaries to:

 

6.1                                                                                 [Reserved]

 

6.2                                                                                 Compliance Certificates. 
Promptly upon request of the Administrative Agent (which may be made
from time to time but not more frequently than once in any calendar month)
furnish to the Administrative Agent a duly completed Compliance Certificate.

 

30

 

6.3                                                                                 [Reserved]

 

6.4                                                                                 Conduct of Business and Maintenance of Existence.  Continue to engage in business of the same
general type as now conducted and purported to be conducted by it and preserve,
renew and keep in full force and effect its corporate existence and take all
reasonable action to maintain all rights, registrations, licenses, privileges
and franchises necessary or desirable in the normal conduct of its business
(including all such registrations under the Investment Advisers Act and all
material investment advisory agreements, distribution agreements and
shareholding and other administrative servicing contracts) except as otherwise
permitted under the Existing Credit Agreement and except for failures which individually
and in the aggregate could not reasonably be expected to have a Material
Adverse Effect; comply, and to the extent reasonably within its control, cause
each Investment Firm and Fund (which is sponsored by an Investment Firm) to
comply, with all Contractual Obligations and Requirements of Law except to the
extent that failure to comply therewith could not, in the aggregate, reasonably
be expected to have a Material Adverse Effect.

 

6.5                                                                                 [Reserved]

 

6.6                                                                                 Inspection of Property; Books and Records; Discussions. 
Keep proper books of records and account in which full, true and correct
entries, in all material respects in conformity with all Requirements of Law
and sufficient to permit the preparation of financial statements in accordance
with GAAP, shall be made of all dealings and transactions in relation to its
business and activities, except, in the case of Requirements of Law, where the
failure to do so could not reasonably be expected to have a Material Adverse
Effect; and permit representatives of the Administrative Agent (on its own
behalf or on behalf of the Lenders) to visit and inspect any of its properties
and examine and make abstracts from any of its books and records at any
reasonable time and as often as may reasonably be desired and upon at least
three days prior notice or such lesser period of time as may be acceptable to
the Borrower or the relevant Subsidiary, as the case may be, and to discuss the
business, operations, properties and financial and other condition of the
Borrower and its Subsidiaries with officers and employees of the Borrower and
its Subsidiaries and with its independent certified public accountants (provided
that with respect to Subsidiaries, other than during the existence of a
Default, the Borrower shall have complied with this obligation if it shall have
used its commercially reasonable efforts to cause its Subsidiaries to allow the
Administrative Agent (on its own behalf or on behalf of the Lenders) pursuant
to the foregoing terms and conditions to visit and inspect the properties of
such Subsidiaries and examine and make abstracts from any of the books and
records of such Subsidiaries and to discuss the business, operations,
properties and financial and other condition of such Subsidiaries with officers
and employees of such Subsidiaries and with their independent certified public
accountants).

 

6.7                                                                                 Notices. 
Promptly give notice to the Administrative Agent and each Lender of:

 

(a)                                  the occurrence
of any Default or any “Default” as defined in the Existing Credit Agreement;

 

(b)                                 [Reserved]

 

31

 

(c)                                  [Reserved]

 

(d)                                 the following
events, as soon as possible and in any event within 30 days after the Borrower
knows or has reason to know thereof: 
(i) the occurrence or expected occurrence of any Reportable Event with
respect to any Plan, or any withdrawal from, or the termination, Reorganization
or Insolvency of any Multiemployer Plan or (ii) the institution of proceedings
or the taking of any other action by the PBGC or the Borrower or any Commonly
Controlled Entity or any Multiemployer Plan with respect to the withdrawal
from, or the terminating, Reorganization or Insolvency of, any Plan;

 

(e)                                  [Reserved]

 

(f)                                    any event
which could reasonably be expected to have a Material Adverse Effect on the
Borrower and its Subsidiaries taken as a whole;

 

(g)                                 [Reserved];
and

 

(h)                                 [Reserved].

 

Each notice pursuant to this Section 6.7
shall be accompanied by a statement of a Responsible Officer setting forth
details of the occurrence referred to therein and stating what action the
Borrower proposes to take with respect thereto, if any.

 

6.8                                                                                 [Reserved]

 

6.9                                                                                 [Reserved]

 

6.10                                                                           Performance
of PRIDES Documents.  The Borrower will at all times prior to the
Purchase Contract Settlement Date reserve and keep available, free from
preemptive rights, out of its authorized but unissued Common Stock the full
number of shares of Common Stock issuable against tender of payment in respect
of all FELINE PRIDES Purchase Contracts pursuant to the terms of the FELINE PRIDES
Documents and, on the Purchase Contract Settlement Date, will issue to Holders
of Growth FELINE PRIDES who tendered FELINE PRIDE Senior Notes in the Tender
Offer Common Stock in the amount and manner required under the related FELINE
PRIDES Purchase Contracts with such Holders.

 

SECTION 7

 

[RESERVED]

 

32

 

SECTION 8

 

EVENTS OF DEFAULT

 

If any of the following events shall occur and
be continuing:

 

(a)                                  The Borrower shall fail to pay any
principal of any Loan when due, or shall fail to pay interest on any Loan
within one Business Day of the date when due, in each case in accordance with
the terms hereof; or

 

(b)                                 Any representation or warranty made or
deemed made by the Borrower herein or in any other Loan Document or which is
contained in any certificate, document or financial or other statement
furnished by it at any time under or in connection with this Agreement or any
such other Loan Document shall prove to have been incorrect in any material
respect on or as of the date made or deemed made; or

 

(c)                                  The Borrower shall default in the
observance or performance of any agreement contained in (i) Section 6.4,
6.7(a) or 6.10; or (ii) Section 5 of the Pledge Agreement; or

 

(d)                                 The Borrower shall default in the observance
or performance of any other agreement contained herein or in any other Loan
Document (other than as provided in subsections (a) through (c)
of this Section), and such default shall continue unremedied for a period of 30
days; or

 

(e)                                  The Borrower or any Subsidiary shall (i)
default in any payment of principal of or interest on any Indebtedness (other
than the Loans or the Indebtedness under the Existing Credit Agreement) or in
the payment of any other Guarantee Obligation, in either case in an outstanding
principal amount in excess of $5,000,000, beyond the period of grace (not to
exceed 30 days), if any, provided in the instrument or agreement under which
such Indebtedness or Guarantee Obligation was created; or (ii) default in the
observance or performance of any other agreement or condition relating to any
such Indebtedness or Guarantee Obligation or contained in any instrument or
agreement evidencing, securing or relating thereto, or any other event shall
occur or condition exist, the effect of which default or other event or
condition is to cause, or to permit the holder or holders of such Indebtedness
or beneficiary or beneficiaries of such Guarantee Obligation (or a trustee or
agent on behalf of such holder or holders or beneficiary or beneficiaries) to
cause, with the giving of notice if required, such Indebtedness to become due
prior to its stated maturity or such Guarantee Obligation to become payable; or

 

(f)                                    (i) The Borrower or any Subsidiary shall
commence any case, proceeding or other action (A) under any existing or future
law of any jurisdiction, domestic or foreign, relating to bankruptcy,
insolvency, reorganization or relief of debtors, seeking to have an order for
relief entered with respect to it, or seeking to adjudicate it a bankrupt or
insolvent, or seeking reorganization, arrangement, adjustment, winding-up,
liquidation, dissolution, composition or other relief with respect to it or its
debts, or (B) seeking appointment of a receiver, trustee, custodian,
conservator or other similar official for it or for all or any substantial part
of its assets, or the Borrower or any Subsidiary shall make a general
assignment for the benefit of its

 

33

 

creditors; or (ii) there shall
be commenced against the Borrower or any Subsidiary any case, proceeding or
other action of a nature referred to in clause (i) above which (A) results in
the entry of an order for relief or any such adjudication or appointment or (B)
remains undismissed, undischarged or unbonded for a period of 60 days; or (iii)
there shall be commenced against the Borrower or any Subsidiary, any case,
proceeding or other action seeking issuance of a warrant of attachment,
execution, distraint or similar process against all or any substantial part of
its assets which results in the entry of an order for any such relief which
shall not have been vacated, discharged, or stayed or bonded pending appeal
within 60 days from the entry thereof; or (iv) the Borrower or any Subsidiary
shall take any action in furtherance of, or indicating its consent to, approval
of, or acquiescence in, any of the acts set forth in clause (i), (ii) or
(iii) above; or (v) the Borrower or any Subsidiary shall generally not,
or shall be unable to, or shall admit in writing its inability to, pay its
debts as they become due; or

 

(g)                                 (i) Any Person shall engage in any
“prohibited transaction” (as defined in Section 406 of ERISA or
Section 4975 of the Code) involving any Plan maintained by the Borrower or
any Subsidiary, (ii) any “accumulated funding deficiency” (as defined in
Section 302 of ERISA), whether or not waived, shall exist with respect to
any Plan, (iii) a Reportable Event shall occur with respect to, or proceedings
shall commence to have a trustee appointed, or a trustee shall be appointed, to
administer or to terminate, any Single Employer Plan, which Reportable Event or
commencement of proceedings or appointment of a trustee is, in the reasonable
opinion of the Required Lenders, likely to result in the termination of such
Plan for purposes of Title IV of ERISA, (iv) any Single Employer Plan shall
terminate for purposes of Title IV of ERISA, (v) the Borrower or any Commonly
Controlled Entity shall, or in the reasonable opinion of the Required Lenders
is likely to, incur any liability in connection with a withdrawal from, or the
Insolvency or Reorganization of, a Multiemployer Plan or (vi) any other event
or condition shall occur or exist, with respect to a Plan; and in each case in clauses
(i) through (vi) above, such event or condition, together with all
other such events or conditions, if any, could have a Material Adverse Effect;
or

 

(h)                                 One or more judgments or decrees shall
be entered against the Borrower or any Subsidiary involving in the aggregate a
liability (not paid or fully covered by insurance or indemnification) of
$5,000,000 or more, and all such judgments or decrees shall not have been
vacated, discharged, stayed or bonded pending appeal within 60 days from the
entry thereof; or

 

(i)                                     (i) Any Loan Document shall cease, for
any reason, to be in full force and effect, or the Borrower shall so assert,
(ii) the Borrower contests in any manner the validity or enforceability of any
Loan Document or (iii) the Lien created by the Security Documents shall cease
to be enforceable and of the same effect and priority purported to be created
thereby; or

 

(j)                                     A Change of Control shall have occurred;
or

 

(k)                                  (i) An Event of Default shall have
occurred under the Existing Credit Agreement, or (ii) the obligations of the
Borrower under the Existing Credit Agreement shall be permanently discharged or
the commitments thereunder terminated.

 

then, and in any such event, (A) if such event
is an Event of Default specified in Section 8(f) with respect to the
Borrower, automatically the Loans hereunder (with accrued interest thereon)

 

34

 

and all other amounts owing under this
Agreement shall immediately become due and payable, and (B) if such event is
any other Event of Default, the Administrative Agent may, or upon the request
of the Required Lenders, the Administrative Agent shall, by notice to the
Borrower declare the Loans hereunder (with accrued interest thereon) and all
other amounts owing under this Agreement to be due and payable forthwith,
whereupon the same shall immediately become due and payable.  Except as expressly provided above in this
Section, presentment, demand, protest and all other notices of any kind are
hereby expressly waived.

 

SECTION 9

 

THE ADMINISTRATIVE AGENT

 

9.1                                                                                 Appointment
and Authorization
of Administrative Agent.  Each
Lender hereby irrevocably appoints, designates and authorizes the
Administrative Agent to take such action on its behalf under the provisions of
this Agreement and each other Loan Document and to exercise such powers and
perform such duties as are expressly delegated to it by the terms of this
Agreement or any other Loan Document, together with such powers as are
reasonably incidental thereto.  Notwithstanding
any provision to the contrary contained elsewhere herein or in any other Loan
Document, the Administrative Agent shall not have any duties or
responsibilities, except those expressly set forth herein, nor shall the
Administrative Agent have or be deemed to have any fiduciary relationship with
any Lender or participant, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this
Agreement or any other Loan Document or otherwise exist against the
Administrative Agent.  Without limiting
the generality of the foregoing sentence, the use of the term “agent” herein
and in the other Loan Documents with reference to the Administrative Agent is
not intended to connote any fiduciary or other implied (or express) obligations
arising under agency doctrine of any applicable law.  Instead, such term is used merely as a matter of market custom,
and is intended to create or reflect only an administrative relationship
between independent contracting parties.

 

9.2                                                                                 Delegation
of Duties.  The Administrative Agent may execute any of
its duties under this Agreement or any other Loan Document by or through
agents, employees or attorneys-in-fact and shall be entitled to advice of
counsel and other consultants or experts concerning all matters pertaining to
such duties.  The Administrative Agent
shall not be responsible for the negligence or misconduct of any agent or
attorney-in-fact selected by it with reasonable care.

 

9.3                                                                                 Liability of Administrative Agent.  No
Agent-Related Person shall (a) be liable for any action taken or omitted to be
taken by any of them under or in connection with this Agreement or any other
Loan Document or the transactions contemplated hereby (except for its own gross
negligence or willful misconduct in connection with its duties expressly set
forth herein), or (b) be responsible in any manner to any Lender or participant
for any recital, statement, representation or warranty made by the Borrower or
any officer thereof, contained herein or in any other Loan Document, or in any
certificate, report, statement or other document referred to or provided for
in, or received by the Administrative Agent under or in connection with, this
Agreement or any other Loan Document, or the validity, effectiveness,
genuineness, enforceability or sufficiency of this Agreement or any other Loan
Document, or for any failure of

 

35

 

the Borrower or any other party
to any Loan Document to perform its obligations hereunder or thereunder.  No Agent-Related Person shall be under any
obligation to any Lender or participant to ascertain or to inquire as to the
observance or performance of any of the agreements contained in, or conditions
of, this Agreement or any other Loan Document, or to inspect the properties, books
or records of the Borrower or any Subsidiary or any Affiliate thereof.

 

9.4                                                                                 Reliance
by Administrative Agent.  (a)  The Administrative Agent shall be entitled to rely, and shall be
fully protected in relying, upon any writing, communication, signature,
resolution, representation, notice, consent, certificate, affidavit, letter,
telegram, facsimile, telex or telephone message, electronic mail message,
statement or other document or conversation believed in good faith by it to be
genuine and correct and to have been signed, sent or made by the proper Person
or Persons, and upon advice and statements of legal counsel (including counsel
to the Borrower), independent accountants and other experts selected by the
Administrative Agent.  The
Administrative Agent shall be fully justified in failing or refusing to take
any action under any Loan Document unless it shall first receive such advice or
concurrence of the Required Lenders as it deems appropriate and, if it so
requests, it shall first be indemnified to its satisfaction by the Lenders
against any and all liability and expense which may be incurred by it by reason
of taking or continuing to take any such action.  The Administrative Agent shall in all cases be fully protected in
acting, or in refraining from acting, under this Agreement or any other Loan
Document in accordance with a request or consent of the Required Lenders (or
such greater number of Lenders as may be expressly required hereby in any
instance) and such request and any action taken or failure to act pursuant
thereto shall be binding upon all the Lenders.

 

(b)                                 For purposes
of determining compliance with the conditions specified in Section 5.1,
each Lender that has signed this Agreement shall be deemed to have consented
to, approved or accepted or to be satisfied with, each document or other matter
required thereunder to be consented to or approved by or acceptable or
satisfactory to a Lender unless the Administrative Agent shall have received
notice from such Lender prior to the proposed Closing Date specifying its
objection thereto.

 

9.5                                                                                 Notice of
Default.  The Administrative Agent shall not be deemed
to have knowledge or notice of the occurrence of any Default, except with
respect to defaults in the payment of principal, interest and fees required to
be paid to the Administrative Agent for the account of the Lenders, unless the
Administrative Agent shall have received written notice from a Lender or the
Borrower referring to this Agreement, describing such Default and stating that
such notice is a “Notice of Default.” The Administrative Agent will notify the
Lenders of its receipt of any such notice. 
The Administrative Agent shall take such action with respect to such
Default as may be directed by the Required Lenders in accordance with Section 8;
provided that unless and until the Administrative Agent has received any
such direction, the Administrative Agent may (but shall not be obligated to)
take such action, or refrain from taking such action, with respect to such
Default as it shall deem advisable or in the best interest of the Lenders.

 

9.6                                                                                 Credit Decision; Disclosure of Information by Administrative Agent.  Each Lender acknowledges that no
Agent-Related Person has made any representation or warranty to it, and that no
act by the Administrative Agent hereafter taken, including any consent to and
acceptance of any assignment or review of the affairs of the Borrower or any
Subsidiary or any Affiliate thereof, shall be deemed to constitute any
representation or warranty by any

 

36

 

Agent-Related Person to any
Lender as to any matter, including whether Agent-Related Persons have disclosed
material information in their possession. 
Each Lender represents to the Administrative Agent that it has, independently
and without reliance upon any Agent-Related Person and based on such documents
and information as it has deemed appropriate, made its own appraisal of and
investigation into the business, prospects, operations, property, financial and
other condition and creditworthiness of the Borrower and its Subsidiaries, and
all applicable bank or other regulatory Laws relating to the transactions
contemplated hereby, and made its own decision to enter into this Agreement and
to extend credit to the Borrower hereunder. 
Each Lender also represents that it will, independently and without
reliance upon any Agent-Related Person and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit analysis, appraisals and decisions in taking or not taking action under
this Agreement and the other Loan Documents, and to make such investigations as
it deems necessary to inform itself as to the business, prospects, operations,
property, financial and other condition and creditworthiness of the Borrower
and its Subsidiaries.  Except for
notices, reports and other documents expressly required to be furnished to the
Lenders by the Administrative Agent herein, the Administrative Agent shall not
have any duty or responsibility to provide any Lender with any credit or other
information concerning the business, prospects, operations, property, financial
and other condition or creditworthiness of the Borrower and its Subsidiaries or
any of their respective Affiliates which may come into the possession of any
Agent-Related Person.

 

9.7                                                                                 Indemnification of Administrative Agent. 
Whether or not the transactions contemplated hereby are consummated, the
Lenders shall indemnify upon demand each Agent- Related Person (to the extent
not reimbursed by or on behalf of the Borrower and without limiting the
obligation of the Borrower to do so), pro rata, and hold harmless each
Agent-Related Person from and against any and all Indemnified Liabilities
incurred by it; provided that no Lender shall be liable for the payment
to any Agent-Related Person of any portion of such Indemnified Liabilities to
the extent determined in a final, nonappealable judgment by a court of
competent jurisdiction to have resulted from such Agent-Related Person’s own
gross negligence or willful misconduct; provided that no action taken in
accordance with the directions of the Required Lenders shall be deemed to
constitute gross negligence or willful misconduct for purposes of this
Section.  Without limitation of the
foregoing, each Lender shall reimburse the Administrative Agent upon demand for
its ratable share of any costs or out-of-pocket expenses (including Attorney
Costs) incurred by the Administrative Agent in connection with the preparation,
execution, delivery, administration, modification, amendment or enforcement
(whether through negotiations, legal proceedings or otherwise) of, or legal
advice in respect of rights or responsibilities under, this Agreement, any
other Loan Document, or any document contemplated by or referred to herein, to
the extent that the Administrative Agent is not reimbursed for such expenses by
or on behalf of the Borrower.  The
undertaking in this Section shall survive termination of the Commitments,
the payment of all other obligations under the Loan Documents and the
resignation of the Administrative Agent.

 

9.8                                                                                 Administrative Agent in Its Individual Capacity.  The Bank of New York and its Affiliates may
make loans to, issue letters of credit for the account of, accept deposits
from, acquire equity interests in and generally engage in any kind of banking,
trust, financial advisory, underwriting or other business with the Borrower and
any Subsidiary and their respective Affiliates as though The Bank of New York
were not the Administrative Agent

 

37

 

hereunder and without notice to
or consent of the Lenders.  The Lenders
acknowledge that, pursuant to such activities, The Bank of New York or its
Affiliates may receive information regarding the Borrower and any of its
Subsidiaries or the Affiliates of any of them (including information that may
be subject to confidentiality obligations in favor of such Person or such
Affiliate) and acknowledge that the Administrative Agent shall be under no
obligation to provide such information to them.  With respect to its Loans, The Bank of New York shall have the
same rights and powers under this Agreement as any other Lender and may
exercise such rights and powers as though it were not the Administrative Agent,
and the terms “Lender” and “Lenders” include The Bank of New York in its
individual capacity.

 

9.9                                                                                 Successor
Administrative Agent.  The Administrative Agent may resign as
Administrative Agent upon 30 days’ notice to the Lenders.  If the Administrative Agent resigns under
this Agreement, the Required Lenders shall appoint from among the Lenders a
successor administrative agent for the Lenders, which successor administrative
agent shall be consented to by the Borrower at all times other than during the
existence of an Event of Default (which consent of the Borrower shall not be
unreasonably withheld or delayed).  If
no successor administrative agent is appointed prior to the effective date of
the resignation of the Administrative Agent, the Administrative Agent may
appoint, after consulting with the Lenders and the Borrower, a successor
administrative agent from among the Lenders. 
Upon the acceptance of its appointment as successor administrative agent
hereunder, the Person acting as such successor administrative agent shall
succeed to all the rights, powers and duties of the retiring Administrative
Agent and the term “Administrative Agent” shall mean such successor
administrative agent, the retiring Administrative Agent’s appointment, powers
and duties as Administrative Agent shall be terminated, without any other or
further act or deed on the part of such retiring Administrative Agent or any
other Lender.  After any retiring
Administrative Agent’s resignation hereunder as Administrative Agent, the
provisions of this Section 9 and Section 10.5 shall inure to its
benefit as to any actions taken or omitted to be taken by it while it was
Administrative Agent under this Agreement. 
If no successor administrative agent has accepted appointment as
Administrative Agent by the date which is 30 days following a retiring
Administrative Agent’s notice of resignation, the retiring Administrative
Agent’s resignation shall nevertheless thereupon become effective and the
Lenders shall perform all of the duties of the Administrative Agent hereunder
until such time, if any, as the Required Lenders appoint a successor agent as
provided for above.

 

9.10                                                                           Administrative
Agent May File
Proof of Claim.  In case of the pendency of
any receivership, insolvency, liquidation, bankruptcy, reorganization,
arrangement, adjustment, composition or other judicial proceeding relative to
the Borrower, the Administrative Agent (irrespective of whether the principal
of any Loan shall then be due and payable as herein expressed or by declaration
or otherwise and irrespective of whether the Administrative Agent shall have
made any demand on the Borrower) shall be entitled and empowered, by
intervention in such proceeding or otherwise

 

(a)                                  to file and
prove a claim for the whole amount of the principal and interest owing and
unpaid in respect of the Loans and all other obligations under the Loan
Documents that are owing and unpaid and to file such other documents as may be
necessary or advisable in order to have the claims of the Lenders and the
Administrative Agent (including any claim for the reasonable compensation,
expenses, disbursements and advances of the Lenders and the

 

38

 

Administrative Agent and their
respective agents and counsel and all other amounts due the Lenders and the
Administrative Agent under Section 10.5) allowed in such judicial
proceeding; and

 

(b)                                 to collect and
receive any monies or other property payable or deliverable on any such claims
and to distribute the same;

 

and any custodian, receiver, assignee, trustee,
liquidator, sequestrator or other similar official in any such judicial
proceeding is hereby authorized by each Lender to make such payments to the
Administrative Agent and, in the event that the Administrative Agent shall consent
to the making of such payments directly to the Lenders, to pay to the
Administrative Agent any amount due for the reasonable compensation, expenses,
disbursements and advances of the Administrative Agent and its agents and
counsel, and any other amounts due the Administrative Agent under
Section 10.5.

 

Nothing contained herein shall be deemed to
authorize the Administrative Agent to authorize or consent to or accept or
adopt on behalf of any Lender any plan of reorganization, arrangement,
adjustment or composition affecting the Loans or obligations under the Loan
Documents or the rights of any Lender or to authorize the Administrative Agent
to vote in respect of the claim of any Lender in any such proceeding.

 

9.11                                                                           Collateral
and Guaranty
Matters.  The Lenders irrevocably
authorize the Administrative Agent, at its option and in its discretion,

 

(a)                                  to release any
Lien on any property granted to or held by the Administrative Agent under any
Loan Document (i) upon termination of the Commitments and payment in full of
the Loans and all other obligations under the Loan Documents (other than
contingent indemnification obligations), (ii) that is sold or to be sold as
part of or in connection with any sale permitted hereunder or under any other
Loan Document, or (iii) subject to Section 10.1, if approved,
authorized or ratified in writing by the Lenders; and

 

(b)                                 to release any
guarantor from its obligations under any guarantee if such Person ceases to be
a Subsidiary as a result of a transaction permitted hereunder.

 

Upon request by the Administrative Agent at any
time, the Required Lenders will confirm in writing the Administrative Agent’s
authority to release any guarantor from its obligations under any guarantee
pursuant to this Section 9.11. 
The Administrative Agent will use commercially reasonable efforts to
notify the Lenders of any release of a Lien pursuant to Section 9.11(a)(ii)
or release of a guarantor pursuant to Section 9.11(b).

 

9.12                           Other
Agents; Arrangers
and Managers.  None of the Lenders or other
Persons identified on the facing page or signature pages of this Agreement as a
“syndication agent,” “documentation agent,” “co-agent,” “book manager,” “lead
manager,” “arranger,” “lead arranger” or “co-arranger” shall have any right,
power, obligation, liability, responsibility or duty under this Agreement other
than, in the case of such Lenders, those applicable to all Lenders as
such.  Without limiting the foregoing,
none of the Lenders or other Persons so identified shall have or be deemed to
have any fiduciary relationship with any Lender.  Each Lender 

 

39

 

acknowledges that it has not
relied, and will not rely, on any of the Lenders or other Persons so identified
in deciding to enter into this Agreement or in taking or not taking action
hereunder.

 

SECTION 10

 

MISCELLANEOUS

 

10.1                                                                           Amendments
and Waivers.  (a) 
Neither this Agreement nor any other Loan Document, nor any terms hereof
or thereof may be amended, supplemented or modified except in accordance with
the provisions of this Section 10.1. 
The Required Lenders may, or, with the written consent of the Required
Lenders, the Administrative Agent may, from time to time, (x) enter into with
the Borrower written amendments, supplements or modifications hereto and to the
other Loan Documents for the purpose of adding any provisions to this Agreement
or the other Loan Documents or changing in any manner the rights of the Lenders
or of the Borrower hereunder or thereunder or (y) waive, on such terms and conditions
as the Required Lenders or the Administrative Agent, as the case may be, may
specify in such instrument, any of the requirements of this Agreement or the
other Loan Documents or any Default and its consequences; provided that
no such waiver and no such amendment, supplement or modification shall (i)
reduce the amount or extend the scheduled date of final maturity of any Loan,
or reduce the stated rate of any interest or fee payable hereunder or extend
the scheduled date of any payment thereof or increase the amount or extend the
expiration date of any Lender’s Commitment, in each case without the consent of
each Lender directly affected thereby, or (ii) amend, modify or waive any
provision of this Section or reduce the percentage specified in the definition
of Required Lenders or change any other provision specifying the number or
percentage of Lenders required to amend, waive or otherwise modify any rights
hereunder or make any determination or grant any consent hereunder, or consent
to the assignment or transfer by the Borrower of any of its rights and
obligations under this Agreement and the other Loan Documents or release all or
substantially all of the Pledged Collateral, in each case without the written
consent of all the Lenders or (iii) amend, modify or waive any provision of Section 9
without the written consent of the then Administrative Agent.  Subject to the provisos in the prior
sentence, any such waiver and any such amendment, supplement or modification
shall apply equally to each of the Lenders and shall be binding upon the
Borrower, the Lenders, the Administrative Agent and all future holders of the
Loans.  In the case of any waiver, the
Borrower, the Lenders and the Administrative Agent shall be restored to their
former positions and rights hereunder and under the other Loan Documents, and
any Default waived shall be deemed to be cured and not continuing; no such
waiver shall extend to any subsequent or other Default or impair any right
consequent thereon.

 

(b)                                 [Reserved]

 

10.2                                                                           Notices. 
(a)  Unless otherwise expressly
provided herein, all notices, requests and demands to or upon the respective
parties hereto to be effective shall be in writing (including by facsimile
transmission and, subject to clause (c) below, electronic mail
transmission), and, unless otherwise expressly provided herein, shall be deemed
to have been duly given or made when delivered, or five days after being
deposited in the mail, postage prepaid, or, in the case of facsimile, when
received with electronic confirmation of receipt, addressed as set forth in Schedule I,
or to such other address as such party may designate by

 

40

 

notice to the other parties
hereto.  Notwithstanding the foregoing,
any notice, request or demand to or upon the Administrative Agent or the
Lenders pursuant to Section 2.2, 2.5, 3.1, 3.3 or 3.8 shall
not be effective until received.

 

(b)                                 The
Administrative Agent and the Lenders shall be entitled to rely and act upon any
notices purportedly given by or on behalf of the Borrower even if (i) such
notices were not made in a manner specified herein, were incomplete or were not
preceded or followed by any other form of notice specified herein, or (ii) the
terms of any telephonic notice, as understood by the recipient, varied from any
confirmation thereof.  The Borrower
shall indemnify the Administrative Agent, the Lenders and each of their
respective Related Parties from all losses, costs, expenses and liabilities resulting
from the reliance by such Person on each notice purportedly given by or on
behalf of the Borrower.  All telephonic
notices to and other communications with the Administrative Agent may be
recorded by the Administrative Agent, and each of the parties hereto hereby
consents to such recording.

 

(c)                                  Electronic
mail and Internet and intranet websites may be used only to distribute routine
communications, such as financial statements and other information as provided
in Section 6.2, and to distribute Loan Documents for execution by
the parties thereto, and may not be used for any other purpose.

 

10.3                                                                           No
Waiver; Cumulative
Remedies.  No failure to exercise and no
delay in exercising, on the part of the Administrative Agent or any Lender, any
right, remedy, power or privilege hereunder or under the other Loan Documents
shall operate as a waiver thereof; nor shall any single or partial exercise of
any right, remedy, power or privilege hereunder preclude any other or further
exercise thereof or the exercise of any other right, remedy, power or privilege.  The rights, remedies, powers and privileges
herein provided are cumulative and not exclusive of any rights, remedies,
powers and privileges provided by law.

 

10.4                                                                           Survival
of Representations
and Warranties.  All representations and
warranties made hereunder, in the other Loan Documents and in any document,
certificate or statement delivered pursuant hereto or in connection herewith
shall survive the execution and delivery of this Agreement and the making of
the Loans hereunder through the Termination Date.

 

10.5                                                                           Expenses; Indemnity; Waiver of Damages.  (a) 
The Borrower agrees to pay (i) all reasonable and documented
out-of-pocket expenses incurred by the Administrative Agent and its Related
Parties (including Attorney Costs), in connection with the syndication of the
credit facility provided for herein, the preparation, negotiation, execution,
delivery and administration of this Agreement and the other Loan Documents and
any amendment, modification or waiver of any provision hereof or thereof
(whether or not the transactions contemplated hereby or thereby shall be
consummated), and (ii) all out-of-pocket expenses incurred by the
Administrative Agent or any Lender (including Attorney Costs of the
Administrative Agent or any Lender) in connection with the enforcement or
protection of its rights (A) in connection with this Agreement and the other
Loan Documents, including its rights under this Section, or (B) in connection
with the Loans made hereunder, including all such out-of-pocket expenses
incurred during any workout, restructuring or negotiations in respect of such
Loans.

 

41

 

(b)                                 The Borrower
agrees to indemnify the Administrative Agent (and any sub-agent thereof) and
each Lender, and each Related Party of any of the foregoing Persons (each such
Person, an “Indemnitee”), against, and hold each Indemnitee harmless from any
and all losses, claims, damages, liabilities and related expenses (including
Attorney Costs) incurred by any Indemnitee or asserted against any Indemnitee
by any third party or by the Borrower or any Subsidiary arising out of, in
connection with, or as a result of (i) the execution or delivery of this
Agreement, any other Loan Document or any agreement or instrument contemplated
hereby or thereby, the performance by the parties hereto of their respective
obligations hereunder or thereunder or the consummation of the transactions
contemplated hereby or thereby, (ii) any Loan or the use or proposed use of the
proceeds therefrom, (iii) any actual or alleged presence or release of
Hazardous Materials on or from any property owned or operated by the Borrower
or any Subsidiary, 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 based on contract, tort or any other theory, whether brought by a third
party or by the Borrower or any Subsidiary, 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 by 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 or any Subsidiary against an Indemnitee for
breach in bad faith of such Indemnitee’s obligations hereunder or under any other
Loan Document, if the Borrower or such Subsidiary has obtained a final and
nonappealable judgment in its favor on such claim as determined by a court of
competent jurisdiction.

 

(c)                                  Reimbursement
by Lenders.  To the extent that the
Borrower for any reason fails to indefeasibly pay any amount required under
subsection (a) or (b) above to be paid by it to the Administrative Agent
(or any sub-agent thereof) or any of its Related Parties, each Lender severally
agrees to pay to the Administrative Agent (or any such sub-agent) or such
Related Party, as the case may be, such Lender’s Commitment Percentage
(determined as of the time that the applicable unreimbursed expense or
indemnity payment is sought) of such unpaid amount, provided that the
unreimbursed expense or indemnified loss, claim, damage, liability or related
expense, as the case may be, was incurred by or asserted against the
Administrative Agent (or any such sub-agent) in its capacity as such, or
against such Related Party acting for the Administrative Agent (or any such
sub-agent) in connection with such capacity.

 

(d)                                 Consequential
Damages, Etc.  To the fullest extent
permitted by applicable law, the Borrower agrees that it will not assert, and
hereby waives, any claim against any Indemnitee, on any theory of liability,
for special, indirect, consequential exemplary or punitive damages (as opposed
to direct or actual damages) arising out of, in connection with, or as a result
of this Agreement, any other Loan Document or any agreement or instrument
contemplated hereby, the transactions contemplated hereby or thereby, any Loan
or the use of the proceeds thereof.  No
Indemnitee above shall be liable for any damages arising from the use by
unintended recipients of any information or other materials distributed by it
through telecommunications, electronic or other information transmission
systems in connection with this Agreement or the other Loan Documents or the
transactions contemplated hereby or thereby.

 

42

 

(e)                                  Payments.  All amounts payable under this
Section 10.5 shall be due not later than ten Business Days after demand
therefor.

 

(f)                                    Survival.  The agreements in this Section 10.5
shall survive the resignation of the Administrative Agent, the replacement of
any Lender, the termination of the Commitments and the repayment, satisfaction
or discharge of all other obligations hereunder.

 

10.6                                                                           Successors
and Assigns;
Participations and Assignments. 
(a)  This Agreement shall be
binding upon and inure to the benefit of the Borrower, the Lenders, the
Administrative Agent and their respective successors and assigns, except that
the Borrower may not assign or transfer any of its rights or obligations under
this Agreement without the prior written consent of each Lender.

 

(b)                                 Any Lender
may, in the ordinary course of its commercial banking business and in
accordance with applicable law, at any time sell to one or more banks or other
entities (“Participants”) participating interests in any Loan owing to
such Lender, any Commitment of such Lender or any other interest of such Lender
hereunder and under the other Loan Documents. 
In the event of any such sale by a Lender of a participating interest to
a Participant, such Lender’s obligations under this Agreement to the other
parties to this Agreement shall remain unchanged, such Lender shall remain
solely responsible for the performance thereof, such Lender shall remain the
holder of any such Loan for all purposes under this Agreement and the other
Loan Documents, and the Borrower and the Administrative Agent shall continue to
deal solely and directly with such Lender in connection with such Lender’s
rights and obligations under this Agreement and the other Loan Documents.  Any agreement or instrument pursuant to which
a Lender sells such a participation shall provide that such Lender shall retain
the sole right to enforce this Agreement and to approve any amendment,
modification or waiver of any provision of this Agreement.  The Borrower agrees that if amounts outstanding
under this Agreement are due or unpaid, or shall have been declared or shall
have become due and payable upon the occurrence of an Event of Default, each
Participant shall, to the maximum extent permitted by applicable law, be deemed
to have the right of setoff in respect of its participating interest in amounts
owing under this Agreement to the same extent as if the amount of its
participating interest were owing directly to it as a Lender under this
Agreement; provided that, in purchasing such participating interest,
such Participant shall be deemed to have agreed to share with the Lenders the
proceeds thereof as provided in Section 10.7(a) as fully as if it
were a Lender hereunder.  The Borrower
also agrees that each Participant shall be entitled to the benefits of Sections
3.10, 3.11 and 3.12 with respect to its participation in the
Commitments and the Loans outstanding from time to time as if it was a Lender; provided
that, in the case of Section 3.11, such Participant shall have
complied with the requirements of said Section and provided, further,
that no Participant shall be entitled to receive any greater amount pursuant to
any such Section than the transferor Lender would have been entitled to
receive in respect of the amount of the participation transferred by such
transferor Lender to such Participant had no such transfer occurred.

 

(c)                                  Any Lender
may, in the ordinary course of its commercial banking business and in
accordance with applicable law, at any time and from time to time assign to any
Lender or any affiliate thereof or, with the consent of each of the
Administrative Agent and, so long as no Event of Default has been continuing
for a period of 30 or more consecutive days, the

 

43

 

Borrower (which in each case
shall not be unreasonably withheld or delayed), to an additional bank or
financial institution (an “Assignee”) all or any part of its rights and
obligations under this Agreement and the other Loan Documents pursuant to an
Assignment and Assumption, substantially in the form of Exhibit E,
executed by such Assignee, such assigning Lender (and, in the case of an
Assignee that is not then a Lender or an Affiliate thereof, by the
Administrative Agent and the Borrower) and delivered to the Administrative
Agent for its acceptance and recording in the Register; provided that,
in the case of any such assignment to an additional bank or financial
institution (other than an assignment of all the assigning Lender’s rights and
obligations with respect to the Commitments), the sum of the aggregate
principal amount of the Loans and the aggregate amount of the unused
Commitments being assigned and, if such assignment is of less than all of the
rights and obligations of the assigning Lender, the sum of the aggregate
principal amount of the Loans and the aggregate amount of the unused
Commitments remaining with the assigning Lender are each not less than
$5,000,000 (or such lesser amount as may be agreed to by the Borrower and the
Administrative Agent).  Upon such
execution, delivery, acceptance and recording pursuant to clause (e)
below, from and after the effective date determined pursuant to such Assignment
and Assumption, (x) the Assignee thereunder shall be a party hereto and, to the
extent provided in such Assignment and Assumption, have the rights and
obligations of a Lender hereunder with a Commitment as set forth therein, and
(y) the assigning Lender thereunder shall, to the extent provided in such
Assignment and Assumption, be released from its obligations under this
Agreement (and, in the case of an Assignment and Assumption covering all or the
remaining portion of an assigning Lender’s rights and obligations under this
Agreement, such assigning Lender shall cease to be a party hereto).

 

(d)                                 The Administrative
Agent, acting solely for this purpose as an agent of the Borrower, shall
maintain at the Administrative Agent’s Office a copy of each Assignment and
Assumption delivered to it and a register (the “Register”) for the
recordation of the names and addresses of the Lenders and the Commitments of,
and principal amounts of the Loans owing to, each Lender from time to
time.  The entries in the Register shall
be conclusive, in the absence of manifest error, and the Borrower, the
Administrative Agent and the Lenders may (and, in the case of any Loan or other
obligation hereunder not evidenced by a Note, shall) treat each Person whose
name is recorded in the Register as the owner of a Loan or other obligation
hereunder as the owner thereof for all purposes of this Agreement and the other
Loan Documents, notwithstanding any notice to the contrary.  Any assignment of any Loan or other
obligation hereunder not evidenced by a Note shall be effective only upon
appropriate entries with respect thereto being made in the Register.  The Register shall be available for
inspection by the Borrower or any Lender at any reasonable time and from time
to time upon reasonable prior notice.

 

(e)                                  Upon its
receipt of an Assignment and Assumption executed by an assigning Lender and an
Assignee (and, in the case of an Assignee that is not then a Lender or an
Affiliate thereof, by the Administrative Agent with the approval of the
Borrower) together with payment by the Lenders parties thereto to the
Administrative Agent of a registration and processing fee of $3,500, the
Administrative Agent shall (i) promptly accept such Assignment and Assumption
and (ii) on the effective date determined pursuant thereto record the
information contained therein in the Register and give notice of such
acceptance and recordation to the Lenders and the Borrower.

 

44

 

(f)                                    The Borrower
authorizes each Lender to disclose to any Participant or Assignee (each, a “Transferee”)
and any prospective Transferee approved by the Borrower, which approval shall
not be required if an Event of Default has been continuing for a period of 30
or more consecutive days and which approval, if required, shall not be
unreasonably withheld or delayed, subject to the provisions of Section 10.15,
any and all financial information in such Lender’s possession concerning the
Borrower and its Affiliates which has been delivered to such Lender by or on
behalf of the Borrower pursuant to this Agreement or which has been delivered
to such Lender by or on behalf of the Borrower in connection with such Lender’s
credit evaluation of the Borrower and its Affiliates prior to becoming a party
to this Agreement; provided that prior to such disclosure each such
prospective Transferee shall have executed a confidentiality agreement
substantially in the form of Exhibit F.

 

(g)                                 For avoidance
of doubt, the parties to this Agreement acknowledge that the provisions of this
Section concerning assignments of Loans and Notes relate only to absolute
assignments and that such provisions do not prohibit assignments creating
security interests, including any pledge or assignment by a Lender of any Loan
or Note to any Federal Reserve Bank in accordance with applicable law.

 

10.7                                                                           Adjustments;
Set-off.  (a) 
If any Lender (a “benefited Lender”) shall at any time receive
any payment of all or part of its Loans, or interest thereon, or receive any
collateral in respect thereof (whether voluntarily or involuntarily, by
set-off, pursuant to events or proceedings of the nature referred to in Section 8(f),
or otherwise), in a greater proportion than any such payment to or collateral
received by any other Lender, if any, in respect of such other Lender’s Loans,
or interest thereon, such benefited Lender shall purchase for cash from the
other Lenders a participating interest in such portion of each such other
Lender’s Loan, or shall provide such other Lenders with the benefits of any
such collateral, or the proceeds thereof, as shall be necessary to cause such
benefited Lender to share the excess payment or benefits of such collateral or
proceeds ratably with each of the Lenders; provided that if all or any
portion of such excess payment or benefits is thereafter recovered from such
benefited Lender, such purchase shall be rescinded, and the purchase price and
benefits returned, to the extent of such recovery, but without interest.

 

(b)                                 In addition to
any rights and remedies of the Lenders provided by law, each Lender shall have
the right, without prior notice to the Borrower, any such notice being
expressly waived by the Borrower to the extent permitted by applicable law,
upon any amount becoming due and payable by the Borrower hereunder (whether at
the stated maturity, by acceleration or otherwise) to set-off and appropriate and
apply against such amount any and all deposits (general or special, time or
demand, provisional or final), in any currency, and any other credits,
indebtedness or claims, in any currency, in each case whether direct or
indirect, absolute or contingent, matured or unmatured, at any time held or
owing by such Lender or any branch or agency thereof to or for the credit or
the account of the Borrower.  Each
Lender agrees promptly to notify the Borrower and the Administrative Agent
after any such set-off and application made by such Lender; provided
that the failure to give such notice shall not affect the validity of such
set-off and application.

 

10.8                                                                           Counterparts.  This
Agreement may be executed by one or more of the parties to this Agreement on
any number of separate counterparts (including by facsimile

 

45

 

transmission), and all of said
counterparts taken together shall be deemed to constitute one and the same
instrument.  A set of the copies of this
Agreement signed by all the parties shall be lodged with the Borrower and the
Administrative Agent.

 

10.9                                                                           Severability.  Any
provision of this Agreement which is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

 

10.10                                                                     Integration.  This
Agreement and the other Loan Documents represent the agreement of the Borrower,
the Administrative Agent and the Lenders with respect to the subject matter
hereof, and there are no promises, undertakings, representations or warranties
by the Administrative Agent or any Lender relative to the subject matter hereof
not expressly set forth or referred to herein or in the other Loan Documents.

 

10.11                                                                 GOVERNING LAW.  THIS AGREEMENT AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

10.12                                                                     Submission
To Jurisdiction;
Waivers.  The Borrower hereby
irrevocably and unconditionally:

 

(a)                                  submits for itself and its property in
any legal action or proceeding relating to this Agreement and the other Loan
Documents to which it is a party, or for recognition and enforcement of any
judgment in respect thereof, to the non-exclusive general jurisdiction of the
Courts of the State of New York, the courts of the United States of America for
the Southern District of New York, and appellate courts from any thereof;

 

(b)                                 consents that any such action or
proceeding may be brought in (or removed to) such courts and waives any
objection that it may now or hereafter have to the venue of any such action or
proceeding in any such court or that such action or proceeding was brought in
an inconvenient court and agrees not to plead or claim the same;

 

(c)                                  agrees that service of process in any
such action or proceeding may be effected by mailing a copy thereof by
registered or certified mail (or any substantially similar form of mail),
postage prepaid, to the Borrower at its address set forth in Section 10.2
or at such other address of which the Administrative Agent shall have been
notified pursuant thereto;

 

(d)                                 agrees that nothing herein shall affect
the right to effect service of process in any other manner permitted by law or
shall limit the right to sue in any other jurisdiction; and waives, to the
maximum extent not prohibited by law, any right it may have to claim or recover
in any legal action or proceeding referred to in this Section any special,
exemplary, punitive or consequential damages.

 

10.13                                                                     Acknowledgements. 
The Borrower hereby acknowledges that:

 

46

 

(a)                                  it has been
advised by counsel in the negotiation, execution and delivery of this Agreement
and the other Loan Documents;

 

(b)                                 neither the
Administrative Agent nor any Lender has any fiduciary relationship with or duty
to the Borrower arising out of or in connection with this Agreement or any of
the other Loan Documents, and the relationship between Administrative Agent and
Lenders, on one hand, and the Borrower, on the other hand, in connection herewith
or therewith is solely that of debtor and creditor; and

 

(c)                                  no joint
venture is created hereby or by the other Loan Documents or otherwise exists by
virtue of the transactions contemplated hereby among the Lenders or among the
Borrower and the Lenders.

 

10.14                                                                 WAIVERS OF JURY TRIAL.  TO THE
EXTENT PERMITTED BY LAW, THE BORROWER, THE ADMINISTRATIVE AGENT AND THE LENDERS
HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL ACTION
OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY
COUNTERCLAIM THEREIN.

 

10.15                                                                     Confidentiality. 
Each Lender agrees to keep confidential any written or oral information
(a) provided to it by or on behalf of the Borrower or any Subsidiary pursuant
to or in connection with this Agreement or (b) obtained by such Lender based on
a review of the books and records of the Borrower or any Subsidiary; provided
that nothing herein shall prevent any Lender from disclosing any such
information (i) to the Administrative Agent or any other Lender or to any
Person who evaluates, approves, structures or administers the Loans on behalf
of a Lender and who is subject to this confidentiality provision, (ii) to any
Transferee or prospective Transferee which agrees in writing to comply with the
provisions of this Section, (iii) to its employees, directors, agents,
attorneys, accountants and other professional advisors who are directly
involved in the execution of the transactions contemplated by this Agreement
and have been informed of their obligations under this Section 10.15,
(iv) upon the request or demand of any Governmental Authority having
jurisdiction over such Lender, (v) in response to any order of any court or
other Governmental Authority or as may otherwise be required pursuant to any
Requirement of Law (notice of which shall be provided promptly to the
Borrower), (vi) which has been publicly disclosed other than in breach of this
Agreement, or (vii) in connection with the exercise of any remedy hereunder.

 

10.16                                                                     USA Patriot
Act.  Each Lender that is subject to the Act (as
defined below) and the Administrative Agent (for itself and not on behalf of
any 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 “Act”), it is required to obtain, verify and record information
that identifies the Borrower and other information that will allow such Lender
or the Administrative Agent, as applicable, to identify the Borrower in
accordance with the Act.

 

47

 

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

 

	
   

  	
  AFFILIATED MANAGERS GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/DARRELL W. CRATE

  	
   

  
	
   

  	
   

  	
  Title: Executive
  Vice President and Chief Financial

  Officer

  

 

 

	
   

  	
  THE BANK OF NEW YORK, as Administrative

  Agent and as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/DIANE SCOTT

  	
   

  
	
   

  	
   

  	
  Title: Vice President

  	
   

  

 

 

ANNEX I

 

[RESERVED]

 

 

SCHEDULE I

 

LENDER COMMITMENTS

 

A.                                   Commitments

 

	
  Lender

  	
   

  	
  Commitment

  	
   

  
	
  The Bank of New
  York

  	
   

  	
  $

  	
  51,000,000

  	
   

  
	
  Total

  	
   

  	
  $

  	
  51,000,000

  	
   

  

 

B.                                     Address for
Notices:

 

BORROWER:

 

Affiliated Managers Group

600 Hale Street

Prides Crossing, Massachusetts 01965

Attention: 
Darrell W.  Crate, Executive Vice
President

Telephone: 
(617) 747-3300

Fax: 
(617) 747-3380

Website Address:  www.amg.com

 

 

 

ADMINISTRATIVE AGENT:

 

Administrative Agent’s
Office

 (for payments and Requests for Loans):

The Bank of New York

One Wall Street

New York, NY  
10286

ABA No. 
021000018

Account:                      Brokerage
Services Division \ John Carbaugh

Account No. GLA No. 111231

Reference: 
Affiliated Managers Group

(Please be sure to precede the account number
with “GLA”)

 

Attention: 
Diane Scott 

Telephone: 
(212) 635-8722

Facsimile: 
(212) 635-1483

E-mail: discott@bankofny.com

 

Other Notices as
Administrative Agent

The Bank of New York

One Wall Street

New York, NY  
10286

 

Attention: 
Elaine Edwards

Telephone: 
(212) 635-6472

Facsimile: 
(212) 635-6348

E-mail: 
eedwards@bankofny.com

 

LENDERS:

 

The Bank of New York

One Wall Street

New York, NY  
10286

 

Attention: 
Diane Scott 

Telephone: 
(212) 635-8722

Facsimile: 
(212) 635-1483

E-mail: discott@bankofny.com

 

2Exhibit
10.3

 

PLEDGE
AND SECURITY AGREEMENT

 

PLEDGE AND SECURITY
AGREEMENT dated as of August 17, 2004 made by Affiliated Managers Group,
Inc., a Delaware corporation (the “Pledgor”),
to Bank of America, N.A., as agent (together with any successor agent, the “Agent”) for the Lenders (as defined below)
(the Agent and the Lenders, collectively, the “Secured Parties”).

 

RECITALS

 

(1)                                  The
Pledgor is entering into an Amended and Restated Credit Agreement, dated as of
August 16, 2004 (said Agreement, as amended, amended and restated,
supplemented or otherwise modified from time to time, the “Credit Agreement”), with the lenders from
time to time parties thereto (the “Lenders”)
and Bank of America, N.A., as administrative agent for the Lenders (in such
capacity, the “Administrative Agent”).  Pursuant to the Credit Agreement, the
Lenders have agreed to make loans and otherwise extend credit to the
Pledgor.  It is a condition precedent to
the Lenders making any loans or otherwise extending credit to the Pledgor that
the Pledgor execute and deliver to the Agent this Agreement for the benefit of
the Lenders and the Administrative Agent.

 

(2)                                  The
Pledgor seeks to remarket certain of the 6% Senior Notes due November 17,
2004 (the “Senior Notes”),
including Senior Notes originally issued as components of the Pledgor’s Prides,
CUSIP No. 008252504, (the “Income PRIDES”),
which remarketing will be on the terms and conditions described in the
Preliminary Remarketing Prospectus Supplement dated August 9, 2004 (the “Remarketing”).  A portion of the net proceeds of the Remarketing will be used in
accordance with Section 6.3 of the Holders Pledge Agreement (as defined
below) to purchase (a) principal strips of U.S. Treasury securities that mature
on or prior to November 15, 2004 in an aggregate principal amount equal to
the aggregate principal amount of the Senior Notes components of the Income
PRIDES on the date of the Remarketing and (b) interest strips of U.S. Treasury
securities that mature on or prior to November 15, 2004 in an aggregate
amount equal to the aggregate interest payment that would be due on the
aggregate due on the aggregate principal amount of the Senior Notes if the
coupon rate on the remarketed Senior Notes had not been reset pursuant to the
Remarketing (collectively, the “Treasury
Portfolio”).

 

(3)                                  Following
consummation of the Remarketing, the holders of Income PRIDES the Senior Notes
of which were the subject of the Remarketing will hold (a) Purchase Contracts
(as such term is defined the Purchase Contract Agreement, dated as of
December 21, 2001 (such agreement, as amended, supplemented or otherwise
modified in accordance with its terms from time to time, the “Purchase Contract Agreement”), between the
Pledgor and BONY (as successor purchase contract agent pursuant to the
Instrument of Resignation, Appointment and Acceptance dated January 15,
2003 among the Company, Wachovia Bank, National Association, and The Bank of
New York (the “Instrument of Registration”),
as purchase contract agent thereunder (BONY in such capacity, the “Purchase Contract Agent”, and such Purchase
Contracts, the “Income PRIDES Purchase
Contracts”)), and (b) an “Applicable Ownership Interest” (as defined
in the Purchase Contract Agreement) in the Treasury Portfolio.  Such

 

 

holders have pledged and
granted a security interest in their respective Applicable Ownership Interest
and related securities entitlements pursuant to the Pledge Agreement, dated as
of December 21, 2001 (as amended, supplemented or otherwise modified in
accordance with its terms from time to time, the “Holders Pledge Agreement”), between the Pledgor and BONY (as
successor collateral agent, custodial agent, securities intermediary and
Purchase Contract Agent pursuant to the Instrument of Resignation), as
collateral agent, custodial agent, securities intermediary and purchase
contract agent thereunder, which security interest secures, inter alia, the payment and performance of
such Income PRIDES Purchase Contracts.

 

(4)                                  The
Pledgor has security entitlements (the “Pledged
Security Entitlements”) with respect to financial assets (the “Pledged Financial Assets”) consisting of
the Treasury Portfolio and all cash and other property paid or otherwise
delivered in respect thereof and credited from time to time to the account
maintained on behalf of the holders of Income PRIDES, account no. 197742, in
the name “The Bank of New York, as Purchase Contract Agent on behalf of the
holders of Income PRIDES of Affiliated Managers Group, Inc., Collateral Account
subject to the security interest of The Bank of New York, as Collateral Agent,
for the benefit of Affiliated Managers Group, Inc., as pledgee” (such account,
the “Securities Account”), with
BONY at its office at 101 Barclay Street, Fl. 8W, New York, New York.

 

(5)                                  Unless
otherwise defined in this Agreement, terms defined in Article 8 or 9 of
the Uniform Commercial Code in effect in the State of New York (the “UCC”) and/or the Federal Book Entry
Regulations (as defined below) are used in this Agreement as such terms are
defined in such Article 8 or 9 and/or the Federal Book Entry
Regulations.  The term “Federal Book
Entry Regulations” means (a) the federal regulations contained in Subpart B
(“Treasury/Reserve Automated Debt Entry System (TRADES)”) governing book-entry
securities consisting of U.S. Treasury bonds, notes, bills and other securities
(as defined therein) and Subpart D (“Additional Provisions”) of 31 C.F.R Part
357, 31 C.F.R. §357.2, §357.10 through § 357.14 and §357.44 and (b) to the
extent substantially identical to the federal regulations referred to in clause
(a) above (as in effect from time to time), the federal regulations governing
other book-entry securities.

 

NOW, THEREFORE, in
consideration of the premises contained herein and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows:

 

Section 1.  Grant of Security.  The Pledgor hereby assigns and pledges to
the Agent for the ratable benefit of the Secured Parties, and hereby grants to the
Agent for the ratable benefit of the Secured Parties a security interest in,
the Pledgor’s right, title and interest in and to the following, in each case
whether now owned or hereafter acquired by the Pledgor and whether now or
hereafter existing or arising (collectively, the “Collateral”):

 

(a)                                  the
Securities Account, the Pledged Security Entitlements, the Pledged Financial
Assets from time to time credited to the Securities Account, and all interest,
cash, instruments and other property from time to time received, receivable or
otherwise distributed in respect of or in exchange for any or all of such
Pledged Security Entitlements or such Pledged Financial Assets;

 

2

 

(b)                                 all
accounts, payment intangibles and other general intangibles of the Pledgor
arising in respect of the Income PRIDES Purchase Contracts;

 

(c)                                  the
following rights and claims under and with respect to each of the Purchase
Contract Agreement and the Holders Pledge Agreement (collectively, the “Assigned Agreements”): (i) all rights of
the Pledgor to receive moneys due and to become due under or pursuant to the
Assigned Agreements, (ii) all rights of the Pledgor to receive proceeds of any
indemnity, warranty or guaranty, (iii) all claims of the Pledgor for damages
arising out of or for breach of or default under the Assigned Agreements, and
(iv) the right of the Pledgor to compel performance and otherwise exercise all
remedies under the Assigned Agreements, in the case of each of subclauses (i)
through (iv), solely with respect to the Collateral described in the preceding
clauses (a) and (b); and

 

(d)                                 all
proceeds of any and all of the Collateral (including, without limitation,
proceeds that constitute property of the types described in clauses (a) through
(c) of this Section 1 and this clause (d)) and, to the extent not
otherwise included, all (i) payments with respect to any of the foregoing
Collateral and (ii) cash received in respect of any of the foregoing
Collateral.

 

Notwithstanding anything
to the contrary herein, the security interest granted under this Section 1
is subject to the terms of the Assigned Agreements.

 

Section 2.  Security for Obligations.  This Agreement secures the payment and
performance of all Obligations (as defined below) now or hereafter existing,
whether direct or indirect, absolute or contingent, and whether for principal,
reimbursement obligations, interest, fees, premiums, penalties,
indemnifications, contract causes of action, costs, expenses or otherwise.  For the purposes of this Agreement, “Obligations” shall mean, (a) the full and
prompt payment when due (whether at the stated maturity, by acceleration or
otherwise) of all obligations of the Pledgor now existing or hereafter incurred
under, arising out of or in connection with the Credit Agreement, the
promissory notes issued by the Pledgor thereunder, and each other agreement,
instrument and document delivered thereunder or in connection therewith
(collectively, the “Loan Documents”)
and the due performance and compliance by the Pledgor with the terms of each
such Loan Document; (b) any and all sums advanced by the Agent in order to
preserve the Collateral or to preserve its security interest in the Collateral;
(c) in the event of any proceeding for the collection or enforcement of any
obligations or liabilities, after an Event of Default (as defined below) shall
have occurred and be continuing, the reasonable expenses of holding, preparing
for sale, selling or otherwise disposing of or realizing on the Collateral, or
of any exercise by the Agent of its rights hereunder, together with reasonable
attorneys’ fees and court costs; and (d) all amounts paid by any indemnitee as
to which such indemnitee has the right to reimbursement under this Agreement.

 

Section 3.  Delivery and Control of Collateral.

 

(a)                                  With
respect to any Collateral in which the Pledgor has any right, title or interest
and that constitutes a security entitlement (including, without limitation, the
Pledged Securities Entitlements), the Pledgor will cause the securities
intermediary with respect to such security entitlement either (i) to identify
in its records the Agent as the entitlement holder of such

 

3

 

security entitlement
against such securities intermediary or (ii) to agree in writing with the
Pledgor and the Agent that such securities intermediary will comply with
entitlement orders originated by the Agent without further consent of the
Pledgor, such agreement to be in substantially the form of Exhibit A
hereto or otherwise in form and substance satisfactory to the Agent (such
agreement being a “Control Agreement”).

 

(b)                                 The
Agent shall have the right (i) at any time at which an Event of Default shall
have occurred and be continuing for more than five consecutive Business Days to
convert Collateral consisting of financial assets credited to the Securities
Account to Collateral consisting of financial assets held directly by the
Agent, provided that upon the cessation (whether by cure, waiver or otherwise)
of such Event of Default, the Agent shall convert all such Collateral to
Collateral consisting of financial assets credited to the Securities Account,
and (ii) at any time to convert Collateral consisting of financial assets held
directly by the Agent to Collateral consisting of financial assets credited to
the Securities Account.

 

Section 4.  Representations and Warranties.  The Pledgor represents and warrants as
follows:

 

(a)                                  The
Pledgor is the legal and beneficial owner of the Collateral (other than, for
the avoidance of any doubt, the Treasury Portfolio credited to the Securities
Account) free and clear of any Lien, claim, option or right of others, except
for the security interest created under this Agreement and any security
interest, mortgage, pledge, lien, claim, charge, encumbrance, title retention
agreement, lessor’s interest in a financing lease or analogous instrument (each
and any of the foregoing a “Lien”)
created thereon pursuant to the Holders Pledge Agreement.  No effective financing statement or other
instrument similar in effect covering all or any part of such Collateral or
listing the Pledgor as debtor is on file in any recording office, except such
as may have been filed in favor of the Agent relating to the Loan Documents or
as otherwise relating to the Liens created thereon pursuant to the Holders
Pledge Agreement

 

(b)                                 The
Assigned Agreements, true and complete copies of which have been furnished to
the Agent, have been duly authorized, executed and delivered by all parties
thereto, have not been amended, amended and restated, supplemented or otherwise
modified except as evidenced by such copies so furnished, are in full force and
effect and are binding upon and enforceable against all parties thereto in
accordance with their terms. There exists no default under any Assigned
Agreement by any party thereto.

 

(c)                                  All
of the investment property constituting Pledged Financial Assets in which the
Pledgor has or will have any interest are and will be maintained in the
Securities Account.

 

(d)                                 All
filings and other actions necessary or desirable to perfect and protect the
security interest in the Collateral created under this Agreement have been duly
made or taken and are in full force and effect, and this Agreement creates in
favor of the Agent for the benefit of the Secured Parties a valid and, together
with such filings and other actions, perfected first priority security interest
in the Collateral securing the Obligations.

 

4

 

(e)                                  No
authorization or approval or other action by, and no notice to or filing with,
any governmental authority or regulatory body or any other third party is
required for (i) the grant by the Pledgor of the assignment, pledge and
security interest granted hereunder or for the execution, delivery or
performance of this Agreement by the Pledgor, (ii) the perfection or
maintenance of the assignment, pledge and security interest created hereunder
(including the first priority nature of such assignment, pledge or security
interest), or (iii) for the exercise by the Agent of its voting or other rights
provided for in this Agreement or the remedies in respect of the Collateral
pursuant to this Agreement, except as may be required in connection with the
disposition of any portion of the Collateral by laws affecting the offering and
sale of securities generally.

 

Section 5.               Assigned Agreements and Income
PRIDES Purchase Contracts.

 

(a)                                  The
Pledgor will at its expense:

 

(i)                                     perform
and observe all terms and provisions of the Assigned Agreements and the Income
PRIDES Purchase Contracts to be performed or observed by it, maintain the
Assigned Agreements to which it is a party in full force and effect, enforce
the Assigned Agreements and the Income PRIDES Purchase Contracts in accordance
with the terms thereof and take all such action to such end as may be requested
from time to time by the Agent; and

 

(ii)                                  furnish
to the Agent promptly upon receipt thereof copies of all notices, requests and
other documents received by it under or pursuant to the Assigned Agreements,
and from time to time (A) furnish to the Agent such information and reports
regarding the Assigned Agreements and the Income PRIDES Purchase Contracts as
the Agent may reasonably request and (B) upon request of the Agent, make to
each other party to any Assigned Agreement and/or any holder of any Income
PRIDES Purchase Contract such demands and requests for information and reports
or for action as the Pledgor is entitled to make thereunder.

 

(b)                                 The
Pledgor agrees that it will not:

 

(i)                                     cancel
or terminate any Assigned Agreement or any Income PRIDES Purchase Contract or
consent to or accept any cancellation or termination thereof other than in
accordance with the terms of such Assigned Agreement or the Income PRIDES
Purchase Contracts;

 

(ii)                                  amend,
amend and restate, supplement or otherwise modify any Assigned Agreement or any
Income PRIDES Purchase Contract or give any consent, waiver or approval
thereunder if the same would materially and adversely affect the security
interest granted hereunder, or the other interests hereunder of the Agent and
the other Secured Parties hereunder;

 

(iii)                               waive
any default under or breach of any Assigned Agreement or any Income PRIDES
Purchase Contract without the prior written consent of the Agent; or

 

5

 

(iv)                              take
any other action in connection with any Assigned Agreement or any Income PRIDES
Purchase Contract that would impair the value of the interests or rights of the
Pledgor thereunder or that would impair the interests or rights of any Secured
Party.

 

Section 6.  Further Assurances; Authorization to File
Financing Statements.

 

(a)                                  The
Pledgor agrees that from time to time, at its expense, the Pledgor will
promptly execute and deliver all further instruments and documents, and take
all further action, that may be necessary or desirable, or that the Agent may
reasonably request, in order to perfect and protect any pledge, assignment or
security interest granted or purported to be granted by the Pledgor hereunder
or to enable the Agent to exercise and enforce its rights and remedies
hereunder with respect to any Collateral.

 

(b)                                 The
Pledgor hereby authorizes the Agent to file one or more financing or
continuation statements, and amendments thereto, relating to all or any part of
the Collateral of the Pledgor without the signature of the Pledgor where
permitted by law.

 

Section 7.               Transfers and Other Liens;
Additional Shares.  The Pledgor
agrees that it will not (a) sell, assign or otherwise dispose of, or grant any
option with respect to, any of the Collateral; or (b) create or suffer to exist
any Lien upon or with respect to any of the Collateral except for the pledge,
assignment and security interest created under this Agreement and Liens arising
under the Holders Pledge Agreement.

 

Section 8.  Agent May Perform.  If the Pledgor fails to perform any
agreement contained herein, the Agent may, as the Agent deems reasonably
necessary to protect the security interest granted hereunder in the Collateral
or to protect the value thereof, but without any obligation to do so and
without notice, itself perform, or cause performance of, such agreement, and
the expenses of the Agent incurred in connection therewith shall be payable by
the Pledgor under Section 11(b) hereof.

 

Section 9.  The Agent’s Duties.  The powers conferred on the Agent hereunder
are solely to protect the Secured Parties’ interest in the Collateral and shall
not impose any duty upon it to exercise any such powers. Except for the safe
custody of any Collateral in its possession and the accounting for moneys
actually received by it hereunder, the Agent shall have no duty as to any
Collateral, as to ascertaining or taking action with respect to exchanges,
maturities, tenders or other matters relative to any Collateral, whether or not
any Secured Party has or is deemed to have knowledge of such matters, or as to
the taking of any necessary steps to preserve rights against any parties or any
other rights pertaining to any Collateral. The Agent shall be deemed to have
exercised reasonable care in the custody and preservation of any Collateral in
its possession if such Collateral is accorded treatment substantially equal to
that which it accords its own property.

 

Section 10.  Remedies.  If any “Event of Default” (as such term is defined under the
Credit Agreement) (each, an “Event of
Default”) shall have occurred and be continuing for a period of at
least ten consecutive Business Days:

 

6

 

(a)                                  The
Agent may exercise in respect of the Collateral, in addition to other rights
and remedies provided for herein or otherwise available to it, all the rights
and remedies of a secured party upon default under the UCC (whether or not the
UCC applies to the affected Collateral) and also may:  (i) without notice except as specified below sell the Collateral
or any part thereof in one or more parcels at public or private sale, at any of
the Agent’s offices or elsewhere, for cash, on credit or for future delivery,
and upon such other terms as the Agent may deem commercially reasonable; and
(ii) exercise any and all rights and remedies of the Pledgor under or in
connection with the Assigned Agreements or otherwise in respect of the
Collateral.  The Pledgor agrees that, to
the extent notice of sale shall be required by law, at least ten days’ notice
to the Pledgor of the time and place of any public sale or the time after which
any private sale is to be made shall constitute reasonable notification. The
Agent shall not be obligated to make any sale of Collateral regardless of
notice of sale having been given. The Agent may adjourn any public or private
sale from time to time by announcement at the time and place fixed therefor,
and such sale may, without further notice, be made at the time and place to
which it was so adjourned. 
Notwithstanding anything in this Agreement to the contrary, the Agent
may not take any action with respect to any Collateral that the Pledgor is not
entitled to take with respect to such Collateral, and prior to being required
to take any action hereunder, the Pledgor shall be entitled to receive written
notice of such request, and, at its expense, to obtain advice of counsel
satisfactory to it that any such action to be taken by it pursuant to the
Agent’s request is permitted under the terms of the Income PRIDES Purchase
Contracts, the Assigned Agreements and/or any other indenture, agreement,
instrument or document relating thereto.

 

(b)                                 Any
cash held by or on behalf of the Agent and all cash proceeds received by or on
behalf of the Agent in respect of any sale of, collection from, or other
realization upon all or any part of the Collateral shall, at any time after
payment of any amounts payable to the Agent pursuant to Section 11 hereof,
be applied by the Agent for the ratable benefit of the Secured Parties against
all or any part of the Obligations, as provided herein.

 

(c)                                  All
payments received by the Pledgor under or in connection with any Income PRIDES
Purchase Contract, any Assigned Agreement or otherwise in respect of the
Collateral shall be received in trust for the benefit of the Agent, shall be
segregated from other funds of the Pledgor and shall be forthwith paid over to
the Agent in the same form as so received (with any necessary endorsement), to
the Agent’s account no. 1366212250600, Ref: Affiliated Managers Group,
ABA#026009593, in the name of the Agent, maintained at its office located at
101 North Tryon, NC1-001-15-01, Charlotte, NC, 28255, Attn: Merci Owens, or
such other account(s) as the Agent may instruct by written notice delivered in
accordance with Section 14 hereof.

 

Section 11.  Indemnity and Expenses.

 

(a)                                  The
Pledgor agrees to indemnify, defend and save and hold harmless each Secured
Party, each of their respective affiliates and the respective officers,
directors, employees, agents and advisors of the foregoing (each, an “Indemnified Party”) from and against, and
shall pay on demand, any and all claims, damages, losses, liabilities and
expenses (including, without limitation, reasonable fees and expenses of
counsel) that may be incurred by or asserted or awarded against any Indemnified
Party, in each case arising out of or in connection with or resulting from this
Agreement (including, without limitation, enforcement of this Agreement),

 

7

 

except to the extent such
claim, damage, loss, liability or expense is found in a final, non appealable
judgment by a court of competent jurisdiction to have resulted from such Indemnified
Party’s gross negligence or willful misconduct.

 

(b)                                 The
Pledgor will pay upon demand to the Agent the amount of any and all reasonable
expenses, including, without limitation, the reasonable fees and expenses of
its counsel and of any experts and agents, that the Agent may incur in
connection with (i) the administration of this Agreement, (ii) the custody,
preservation, use or operation of, or the sale of, collection from or other
realization upon, any of the Collateral, (iii) the exercise or enforcement of
any of the rights of the Agent and/or the other Secured Parties hereunder or
(iv) the failure by the Pledgor to perform or observe any provision hereof.

 

Section 12.  Amendments; Waivers; Etc.  None of the terms and conditions of this
Agreement may be changed, waived, modified or varied in any manner whatsoever
unless in writing duly signed by the Pledgor and the Agent (or, to the extent
required by the Credit Agreement, the required number or percentage of the
Lenders, as applicable).

 

Section 13.  Payments; Application of Collateral.  All payments made hereunder to the Agent or
any other Secured Party, including, without limitation, the application of
proceeds of the Collateral and any of it, shall be made in accordance with the
Credit Agreement.

 

Section 14.  Notices; Etc.  All notices and other communications
provided for hereunder shall be in writing (including facsimile) and mailed,
sent by facsimile or delivered to any party, addressed to it at its address set
forth opposite its name on the signature pages hereto or, as to any party, at
such other address as shall be designated by such party in a written notice to
the other parties. All such notices and other communications shall be effective
five Business Days after being deposited in the U.S. mails, postage prepaid,
when sent by facsimile and electronic confirmation of receipt is received
(except that any notice received during non-business hours shall be deemed
received at the next time the relevant location of the recipient if open for
business) or when delivered (or delivery is refused), in each case addressed as
aforesaid, provided that notices and other communications to the Agent shall
not be effective until received by the Agent.

 

Section 15.  Release; Termination.

 

(a)                                  Upon
the earliest of (i) the payment in full in cash of the Obligations and (ii) the
Termination Date, the pledge, assignment and security interest granted
hereunder shall terminate and all rights to the Collateral shall revert to the
Pledgor. Upon any such termination, the Agent will, at the Pledgor’s expense,
promptly execute and deliver to the Pledgor such documents as the Pledgor shall
reasonably request to evidence such termination.  The Pledgor shall have no authority to file termination,
release or other amendments to financing statements without specific written
authorization from the Agent.  “Termination Date” shall mean the first date
upon which the following condition shall be satisfied: the Income PRIDES
Purchase Contracts shall have been settled (or shall concurrently settle) and
otherwise performed in full in accordance with their terms.

 

8

 

Section 16.  Obligations Absolute.  The obligations of the Pledgor hereunder
shall remain in full force and effect without regard to, and shall not be
impaired by, (a) subject to the terms of the Purchase Contracts, including, as
provided in Section 5.7 of the Purchase Contract Agreement, any
bankruptcy, insolvency, reorganization, arrangement, readjustment, composition,
liquidation or the like of any other Person; (b) any exercise or non-exercise,
or any waiver of, any right, remedy, power or privilege under or in respect of
this Agreement or any other Loan Document; or (c) any amendment to or
modification of any Loan Document or any security for any of the Obligations
whether or not the Pledgor shall have notice or knowledge of any of the
foregoing.

 

Section 17.  Execution in Counterparts.  This Agreement may be executed in any number
of counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same
agreement. Delivery of an executed counterpart of a signature page to this
Agreement by telecopier shall be effective as delivery of an original executed
counterpart of this Agreement.  Delivery
by facsimile of an executed counterpart of any amendment or waiver of any
provision of this Agreement shall be effective as delivery of an original
executed counterpart thereof.

 

Section 18.  Governing Law.  This Agreement shall be governed by, and
construed in accordance with, the laws of the State of New York.

 

Section 19.  WAIVER OF JURY TRIAL; VENUE.  EACH OF THE AGENT, THE PLEDGOR AND (BY
ACCEPTANCE OF THE BENEFITS OF THIS AGREEMENT) EACH OTHER SECURED PARTY HEREBY
KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES THE RIGHT TO A TRIAL BY JURY IN
RESPECT OF ANY CLAIM BASED HEREON, ARISING OUT OF, UNDER OR IN CONNECTION WITH
THIS AGREEMENT, OR ANY OTHER DOCUMENTS CONTEMPLATED TO BE EXECUTED IN
CONNECTION HEREWITH OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS
(WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY, INCLUDING, WITHOUT
LIMITATION, ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENT OR ACTION OF
THE AGENT OR ANY OTHER SECURED PARTY RELATING TO THE ADMINISTRATION OF OR
ENFORCEMENT OF THIS AGREEMENT OR ANY OF THE OTHER DOCUMENTS CONTEMPLATED
HEREBY, AND AGREES THAT NO PARTY WILL SEEK TO CONSOLIDATE ANY SUCH ACTION WITH
ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED.  EXCEPT AS PROHIBITED BY LAW, THE PLEDGOR
HEREBY WAIVES ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY LITIGATION ANY
SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES OTHER
THAN, OR IN ADDITION TO, ACTUAL DAMAGES. 
THE PLEDGOR CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE
AGENT OR ANY OTHER SECURED PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT
THE AGENT OR ANY OTHER SECURED PARTY WOULD NOT, IN THE EVENT OF LITIGATION,
SEEK TO ENFORCE THE FOREGOING WAIVER. 
THIS WAIVER CONSTITUTES A MATERIAL INDUCEMENT FOR THE AGENT AND THE
OTHER SECURED PARTIES TO ENTER INTO THIS AGREEMENT.  THE PLEDGOR AGREES THAT ANY SUIT FOR THE ENFORCEMENT OF THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE
OF NEW

 

9

 

YORK OR ANY FEDERAL COURT
SITTING IN THE BOROUGH of MANHATTAN, NEW YORK AND CONSENTS TO THE NONEXCLUSIVE
JURISDICTION OF SUCH COURT AND SERVICE OF PROCESS IN ANY SUCH SUIT BEING MADE
UPON THE PLEDGORS, BY MAIL AT THE ADDRESS SPECIFIED PURSUANT TO IN
SECTION 14.  THE PLEDGOR HEREBY
WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH
SUIT OR ANY SUCH COURT OR THAT SUCH SUIT IS BROUGHT IN AN INCONVENIENT FORUM.

 

[SIGNATURE PAGE
FOLLOWS]

 

10

 

IN WITNESS WHEREOF, each
the Pledgor and the Agent has caused this Agreement to be duly executed and
delivered by its officer thereunto duly authorized as of the date first above
written.

 

	
  Address for Notices:

  	
  AFFILIATED
  MANAGERS GROUP, INC.,

  as Pledgor

  
	
   

  	
   

  
	
  Attention:  Chief Financial Officer

  	
   

  
	
  600 Hale Street

  	
  By:

  	
  /s/JOHN KINGSTON,III

  	
   

  
	
  Prides Crossing,
  MA  01965

  	
   

  	
  John Kingston, III

  	
   

  
	
   

  	
   

  	
  Senior Vice President,
  General Counsel

  and Secretary

  	
   

  

 

 

	
  Address for Notices:

  	
  BANK OF AMERICA, N.A.,
  as Agent

  
	
  Attention: Cindy King

  	
   

  
	
  NC1-001-15-02

  	
   

  
	
  101 North Tryon Street

  	
   

  
	
  Charlotte, NC  28255-0001

  	
  By:

  	
  /s/SEAN W. CASSIDY

  	
   

  
	
   

  	
   

  	
  Title:  Principal

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