Document:

Exhibit
10.1

 

 

Published
CUSIP
Number:                          

 

 

CREDIT
AGREEMENT

 

dated as of June
15, 2004

 

among

 

SABRE INC.,

as Borrower,

 

THE
LENDERS PARTY HERETO,

 

BANK OF
AMERICA, N.A.,

as Administrative
Agent,

 

CITIBANK, N.A.,

SUMITOMO MITSUI BANKING CORP., NEW YORK,

UFJ BANK LIMITED

and

JPMORGAN CHASE BANK,

as Co-Syndication
Agents

 

 

BANC OF
AMERICA SECURITIES LLC,

as

Sole Lead Arranger
and Sole Book Manager

 

 

 

 

TABLE OF CONTENTS

 

Article and
Section

 

	
  ARTICLE
  I  DEFINITIONS AND ACCOUNTING TERMS 

  	
   

  
	
  1.01

  	
  Defined Terms.

  	
   

  
	
  1.02

  	
  Interpretive Provisions.

  	
   

  
	
  1.03

  	
  Accounting Terms and
  Provisions.

  	
   

  
	
  1.04

  	
  Rounding.

  	
   

  
	
  1.05

  	
  References to Agreements
  and Laws.

  	
   

  
	
  1.06

  	
  Times of Day.

  	
   

  
	
  1.07

  	
  Letter
  of Credit Amounts.

  	
   

  
	
  1.08

  	
  Exchange Rates;
  Currency Equivalents.

  	
   

  
	
  1.09

  	
  Additional
  Alternative Currencies.

  	
   

  
	
  1.10

  	
  Redenomination
  of Certain Alternative Currencies.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  II  COMMITMENTS AND CREDIT EXTENSIONS

  	
   

  
	
  2.01

  	
  Commitments.

  	
   

  
	
  2.02

  	
  Borrowings, Conversions
  and Continuations.

  	
   

  
	
  2.03

  	
  Additional
  Provisions with Respect to Letters of Credit.

  	
   

  
	
  2.04

  	
  Additional
  Provisions with Respect to Swingline Loans.

  	
   

  
	
  2.05

  	
  Repayment
  of Loans.

  	
   

  
	
  2.06

  	
  Prepayments.

  	
   

  
	
  2.07

  	
  Termination or
  Reduction of Commitments.

  	
   

  
	
  2.08

  	
  Interest.

  	
   

  
	
  2.09

  	
  Fees.

  	
   

  
	
  2.10

  	
  Computation of
  Interest and Fees.

  	
   

  
	
  2.11

  	
  Payments
  Generally.

  	
   

  
	
  2.12

  	
  Sharing
  of Payments.

  	
   

  
	
  2.13

  	
  Evidence of
  Debt.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE III  TAXES, YIELD PROTECTION AND ILLEGALITY

  	
   

  
	
  3.01

  	
  Taxes.

  	
   

  
	
  3.02

  	
  Illegality.

  	
   

  
	
  3.03

  	
  Inability to Determine
  Rates.

  	
   

  
	
  3.04

  	
  Increased
  Cost; Capital Adequacy; Reserves on Eurodollar Rate Loans.

  	
   

  
	
  3.05

  	
  Compensation
  for Losses.

  	
   

  
	
  3.06

  	
  Matters
  Applicable to All Requests for Compensation.

  	
   

  
	
  3.07

  	
  Survival Losses.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  IV CONDITIONS PRECEDENT TO CREDIT EXTENSIONS

  	
   

  
	
  4.01

  	
  Conditions to
  Initial Credit Extensions.

  	
   

  
	
  4.02

  	
  Conditions to all
  Credit Extensions.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE V
  REPRESENTATIONS AND WARRANTIES

  	
   

  
	
  5.01

  	
  Corporate
  Existence.

  	
   

  
	
  5.02

  	
  Power
  and Authority.

  	
   

  
	
  5.03

  	
  Enforceability.

  	
   

  
	
  5.04

  	
  Legal
  Proceedings.

  	
   

  

 

i

 

	
  5.05

  	
  No Material Adverse Effect.

  	
   

  
	
  5.06

  	
  Compliance
  with Law.

  	
   

  
	
  5.07

  	
  Use of Proceeds.

  	
   

  
	
  5.08

  	
  Disclosure.

  	
   

  
	
  5.09

  	
  Absence of Default.

  	
   

  
	
  5.10

  	
  ERISA
  Compliance.

  	
   

  
	
  5.11

  	
  Financial
  Condition.

  	
   

  
	
  5.12

  	
  Margin
  Regulations; Investment Company Act; Public Utility Holding Company Act.

  	
   

  
	
  5.13

  	
  Insurance.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI  AFFIRMATIVE COVENANTS

  	
   

  
	
  6.01

  	
  Preservation of Existence.

  	
   

  
	
  6.02

  	
  Payment of Taxes and
  Claims.

  	
   

  
	
  6.03

  	
  Inspection
  Rights.

  	
   

  
	
  6.04

  	
  Financial
  Statements.

  	
   

  
	
  6.05

  	
  Certificates, Notices
  and Other Information.

  	
   

  
	
  6.06

  	
  Keeping of
  Records and Books of Account.

  	
   

  
	
  6.07

  	
  Compliance
  With Laws.

  	
   

  
	
  6.08

  	
  Maintenance of Insurance.

  	
   

  
	
  6.09

  	
  Maintenance of Properties.

  	
   

  
	
  6.10

  	
  Compliance With Agreements.

  	
   

  
	
  6.11

  	
  Use of Proceeds.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII  NEGATIVE COVENANTS

  	
   

  
	
  7.01

  	
  Restricted
  Funded Debt.

  	
   

  
	
  7.02

  	
  Liens.

  	
   

  
	
  7.03

  	
  Fundamental
  Changes.

  	
   

  
	
  7.04

  	
  Asset
  Dispositions.

  	
   

  
	
  7.05

  	
  Financial
  Covenants.

  	
   

  
	
  7.06

  	
  Permitted
  Securitization Transaction.

  	
   

  
	
  7.07

  	
  Transactions with
  Affiliates.

  	
   

  
	
  7.08

  	
  Dividends;
  Stock Repurchases and Redemptions.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  VIII  EVENTS OF DEFAULT AND REMEDIES

  	
   

  
	
  8.01

  	
  Events of
  Default.

  	
   

  
	
  8.02

  	
  Remedies Upon Event of
  Default.

  	
   

  
	
  8.03

  	
  Application
  of Funds.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX  ADMINISTRATIVE AGENT

  	
   

  
	
  9.01

  	
  Appointment and Authority.

  	
   

  
	
  9.02

  	
  Rights as
  a Lender.

  	
   

  
	
  9.03

  	
  Exculpatory
  Provisions.

  	
   

  
	
  9.04

  	
  Reliance by
  Administrative Agent.

  	
   

  
	
  9.05

  	
  Delegation
  of Duties.

  	
   

  
	
  9.06

  	
  Resignation of
  Administrative Agent.

  	
   

  
	
  9.07

  	
  Non-Reliance
  on Administrative Agent and Other Lenders.

  	
   

  
	
  9.08

  	
  No Other Duties, Etc.

  	
   

  
	
  9.09

  	
  Administrative
  Agent May File Proofs of Claim.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE X  MISCELLANEOUS

  	
   

  
	
  10.01

  	
  Amendments, Etc.

  	
   

  

 

ii

 

	
  10.02

  	
  Notices;
  Effectiveness; Electronic Communication.

  	
   

  
	
  10.03

  	
  No Waiver; Cumulative
  Remedies.

  	
   

  
	
  10.04

  	
  Expenses; Indemnity;
  Damage Waiver.

  	
   

  
	
  10.05

  	
  Payments
  Set Aside.

  	
   

  
	
  10.06

  	
  Successors
  and Assigns.

  	
   

  
	
  10.07

  	
  Treatment
  of Certain Information; Confidentiality.

  	
   

  
	
  10.08

  	
  Right of Setoff.

  	
   

  
	
  10.09

  	
  Interest
  Rate Limitation.

  	
   

  
	
  10.10

  	
  Counterparts;
  Integration; Effectiveness.

  	
   

  
	
  10.11

  	
  Survival of
  Representations and Warranties.

  	
   

  
	
  10.12

  	
  Severability.

  	
   

  
	
  10.13

  	
  Replacement
  of Lenders.

  	
   

  
	
  10.14

  	
  Governing Law;
  Jurisdiction; Etc.

  	
   

  
	
  10.15

  	
  Waiver
  of Jury Trial.

  	
   

  
	
  10.16

  	
  USA
  PATRIOT Act Notice.

  	
   

  
	
  10.17

  	
  Judgment
  Currency.

  	
   

  
	
  10.18

  	
  ENTIRE
  AGREEMENT.

  	
   

  

 

iii

 

	
  SCHEDULES

  
	
   

  	
   

  	
   

  
	
  Schedule 2.01

  	
  Lenders and Commitments

  	
   

  
	
  Schedule 3.03

  	
  Mandatory Cost Rate

  	
   

  
	
  Schedule 5.04

  	
  Legal Proceedings

  	
   

  
	
  Schedule 10.02

  	
  Notice Addresses

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBITS

  
	
   

  	
   

  	
   

  
	
  Exhibit 2.01(d)

  	
  Form of Lender
  Joinder Agreement

  	
   

  
	
  Exhibit 2.02

  	
  Form of Loan Notice

  	
   

  
	
  Exhibit 2.13-1

  	
  Form of Revolving
  Note

  	
   

  
	
  Exhibit 2.13-2

  	
  Form of Swingline
  Note

  	
   

  
	
  Exhibit 6.05(d)

  	
  Form of Compliance
  Certificate

  	
   

  
	
  Exhibit 10.06

  	
  Form of Assignment
  and Assumption

  	
   

  

 

iv

 

CREDIT
AGREEMENT

 

 

This CREDIT AGREEMENT
(the “Credit Agreement”) is entered into as of June 15, 2004, among SABRE
INC., a Delaware corporation  (the “Borrower”),
the Lenders party hereto, and BANK OF AMERICA, N.A., as Administrative Agent.

 

WHEREAS, the Borrower has
requested that the Lenders provide a revolving credit facility for the purposes
set forth herein; and

 

WHEREAS, the Lenders have
agreed to make the requested facility available on the terms and conditions set
forth herein;

 

NOW, THEREFORE, in
consideration of these premises and the mutual covenants and agreements
contained herein, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto covenant and agree as follows:

 

 

ARTICLE I  

DEFINITIONS AND ACCOUNTING TERMS

 

1.01                        Defined
Terms.

 

As used in this Credit
Agreement, the following terms have the meanings provided below:

 

“Acquisition”
means the purchase or acquisition by any Person of (a) more than 50% of the
Capital Stock with ordinary voting power of another Person or (b) all or
substantially all of the property (other than Capital Stock) of another Person,
whether or not involving a merger or consolidation with such Person.

 

“Administrative Agent”
means Bank of America in its capacity as administrative agent for the Lenders
under any of the Credit Documents, or any successor administrative agent.

 

“Administrative
Agent’s Office” means, with respect to any currency, the Administrative
Agent’s address and, as appropriate, account as set forth on Schedule 10.02
with respect to such currency or such other address or account with respect to
such currency as the Administrative Agent may from time to time notify the Borrower
and the Lenders.

 

“Administrative
Questionnaire” means an administrative questionnaire for the Lenders in a
form supplied by the Administrative Agent.

 

“Affiliate” means,
with respect to any Person, another Person that directly, or indirectly through
one or more intermediaries, Controls or is Controlled by or is under common
Control with the Person specified.

 

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

 

“Aggregate Revolving
Commitments” means the Revolving Commitments of all the Lenders.

 

 

“Aggregate Revolving
Committed Amount” has the meaning provided in Section 2.01(a).

 

“Alternative Currency”
means each of Australian Dollars, British Pounds Sterling, Canadian Dollars,
Euro, Yen and each other lawful currency (other than Dollars) that is freely
available and freely transferable and convertible into Dollars and that is
approved by all the Lenders in accordance with Section 1.09.

 

“Alternative Currency
Equivalent” means, at any time, with respect to any amount denominated in
Dollars, the equivalent amount thereof in the applicable Alternative Currency
as determined by the Administrative Agent or the L/C Issuer, as the case may
be, at such time on the basis of the Spot Rate (determined in respect of the
most recent Revaluation Date) for the purchase of such Alternative Currency
with Dollars.

 

“Alternative Currency
Sublimit” has the meaning provided in Section 2.01(a).  The Alternative Currency Sublimit is part of,
and not in addition to, the Aggregate Revolving Commitments.

 

“Applicable Currency”
means, with respect to any Loan, the currency in which such Loan is
denominated.

 

“Applicable Percentage”
means, for any day, the rate per annum set forth below opposite the applicable
Debt Rating:

 

	
  Pricing

  Level

  	
   

  	
  S&P

  Debt Rating

  	
   

  	
  Moody’s

  Debt Rating

  	
   

  	
  Margin

  for Eurocurrency Loans and

  Letter of Credit Fees

  	
   

  	
  Base

  Margin

  	
   

  	
  Facility

  Fee

  	
   

  	
  Utilization

  Fee

  (>50%)

  	
   

  
	
  1

  	
   

  	
  A and above

  	
   

  	
  A2 and above

  	
   

  	
  0.295

  	
  %

  	
  0.000

  	
  %

  	
  0.080

  	
  %

  	
  0.100

  	
  %

  
	
  2

  	
   

  	
  A-

  	
   

  	
  A3

  	
   

  	
  0.400

  	
  %

  	
  0.000

  	
  %

  	
  0.100

  	
  %

  	
  0.100

  	
  %

  
	
  3

  	
   

  	
  BBB+

  	
   

  	
  Baa1

  	
   

  	
  0.500

  	
  %

  	
  0.000

  	
  %

  	
  0.125

  	
  %

  	
  0.125

  	
  %

  
	
  4

  	
   

  	
  BBB

  	
   

  	
  Baa2

  	
   

  	
  0.600

  	
  %

  	
  0.000

  	
  %

  	
  0.150

  	
  %

  	
  0.125

  	
  %

  
	
  5

  	
   

  	
  BBB-

  	
   

  	
  Baa3

  	
   

  	
  0.775

  	
  %

  	
  0.000

  	
  %

  	
  0.225

  	
  %

  	
  0.125

  	
  %

  
	
  6

  	
   

  	
  BB+ and below

  	
   

  	
  Ba1 and below

  	
   

  	
  0.950

  	
  %

  	
  0.000

  	
  %

  	
  0.300

  	
  %

  	
  0.250

  	
  %

  

 

The Parent will maintain
a Debt Rating at all times with each of the Rating Services.  The applicable Pricing Level will be
determined by reference to the Debt Ratings; provided that (a) if Debt
Ratings are provided by each of the Rating Services and the Debt Ratings by the
Rating Services indicate different Pricing Levels, then (i) if they are only
one level apart, the applicable Pricing Level shall be determined by reference
to the higher (less expensive) Debt Rating and shall be set at the Pricing
Level indicated thereby (e.g., if the Debt Rating by S&P is A and Moody’s
is A3, the Applicable Percentage would be set at Pricing Level 1), (ii) if they
are two or four levels apart, the applicable Pricing Level shall be determined
by using the Debt Rating that is the intermediate Debt Rating (e.g., if the
Debt Rating by S&P is A and Moody’s is Baa1, the Applicable Percentage
would be set at Pricing Level 2) and (iii) if they are three or five levels
apart, the applicable Pricing Level shall be determined by using the Debt
Rating that is the higher (less expensive) of the two intermediate Debt Ratings
(e.g., if the Debt Rating by S&P is A and Moody’s is Baa2, the Applicable
Percentage would be set at Pricing Level 2), (b) if there is only one Debt
Rating, then the applicable Pricing Level shall be determined by reference to
the Pricing Level indicated thereby (e.g., if the only Debt Rating is by
S&P and it is BBB, the Applicable Percentage would be set at

 

2

 

Pricing Level 4; provided,
however, that if as of the last day upon which there were two Debt Ratings those
ratings were two or more levels apart, then the applicable Pricing Level shall
be determined by reference to the next lower (more expensive) Debt Rating and
shall be set at the Pricing Level indicated thereby (e.g., if the only Debt
Rating is by S&P and it is BBB and Moody’s last Debt Rating was A-, the
Applicable Percentage would be set at Pricing Level 5) and (c) if there is no
Debt Rating, then the Applicable Percentage would be set at Pricing Level 6.

 

The Applicable
Percentage shall be determined and adjusted on the first Business Day following
the date of any change in the Debt Rating. 
Adjustments in the Applicable Percentage shall be effective as to all
Extensions of Credit, existing and prospective, from the date of
adjustment.  Determinations by the
Administrative Agent of the applicable Pricing Level shall be conclusive absent
manifest error.  The Administrative Agent
shall promptly notify the Lenders of changes in the Applicable Percentage.

 

“Applicable Time”
means, with respect to any borrowings and payments in any Alternative Currency,
the local time in the place of settlement for such Alternative Currency as may
be determined by the Administrative Agent or the L/C Issuer, as the case may
be, to be necessary for timely settlement on the relevant date in accordance
with normal banking procedures in the place of payment.

 

“Approved Fund”
means any Fund that is administered or managed by (a) a Lender,
(b) an Affiliate of a Lender or (c) an entity or an Affiliate of an
entity that administers or manages a Lender.

 

“Asset Disposition”
shall mean and include the sale, lease or other disposition of any property or
asset (including without limitation the Capital Stock of a Subsidiary) by the
Borrower or any of its Subsidiaries; but for purposes hereof shall not include,
in any event, (a) the sale of inventory in the ordinary course of business, (b)
the sale or disposition of machinery and equipment no longer used or useful in
the conduct of business, (c) a sale, lease, transfer or other disposition of property
or assets by the Borrower to any of its Subsidiaries or by any Subsidiary to
the Borrower, (d) a sale, transfer or other disposition of Securitization
Receivables in connection with a Permitted Securitization Transaction or (e) a
sale, transfer or other disposition of cash or marketable securities in
connection with any (i) dividend payment or other distribution in respect of,
or purchase, redemption or other acquisition of, Capital Stock of the Borrower
or its Subsidiaries or (ii) acquisition by the Borrower or its Subsidiaries of
any assets, rights, properties, goods or services, or loans, advances or other
credits extended by the Borrower or its Subsidiaries, or other transaction or
arrangement whereby the Borrower or its Subsidiaries receive consideration.

 

“Arranger” means
BAS, in its capacity as sole lead arranger and sole book manager.

 

“Assignment and
Assumption” means an Assignment and Assumption substantially in the form of
Exhibit 10.06.

 

“Attorney Costs”
means and includes all reasonable fees, expenses and disbursements of any law
firm or other counsel.

 

“Attributable
Principal Amount” means (a) in the case of capital leases, the amount of
capital lease obligations determined in accordance with GAAP, (b) in the case
of Synthetic Leases, an amount determined by capitalization of the remaining
lease payments thereunder as if it were a capital lease determined in
accordance with GAAP, (c) in the case of Securitization Transactions, the
outstanding principal amount of such financing, after taking into account
reserve amounts and making appropriate adjustments, determined by the
Administrative Agent in its reasonable judgment and (d) in the case of Sale and
Leaseback Transactions, the present value (discounted in accordance with GAAP
at the debt rate

 

3

 

implied in the applicable
lease) of the obligations of the lessee for rental payments during the term  of such lease).

 

“Australian Dollar”
means the lawful currency of the Commonwealth of Australia.

 

“Bank of America”
means Bank of America, N.A., together with its successors.

 

“BAS” means Banc
of America Securities LLC, together with its successors.

 

“Base Rate” 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 Bank of America
as its “prime rate”.  The “prime rate” is
a rate set by Bank of America based upon various factors including Bank of
America’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 the prime rate announced by Bank of America shall take
effect at the opening of business on the day specified in the public
announcement of such change.

 

“Base Rate Loan”
means a Loan that bears interest based on
the Base Rate.  All Base Rate Loans shall
be denominated in Dollars.

 

“Borrower” has the
meaning provided in the recitals hereto, together with its successors and
permitted assigns.

 

“Borrowing” means
(a) a borrowing consisting of simultaneous Loans of the same Type and, in the
case of Eurocurrency Rate Loans, in the same currency and having the same
Interest Period, or (b) a borrowing of Swingline Loans, as appropriate.

 

“British Pounds
Sterling” or “£” means the lawful currency of the United Kingdom.

 

“Business Day”
means any day other than a Saturday, Sunday or other day on which commercial banks
are authorized to close under the Laws of, or are in fact closed in, the state
where the Administrative Agent’s Office with respect to Obligations denominated
in Dollars is located and, (a) if such day relates to any Eurocurrency Rate
Loan denominated in a currency other than Euro, means any such day on which
dealings in deposits in the relevant currency are conducted by and between
banks in the London or other applicable offshore interbank market for such
currency or (b) if such day relates to any Eurocurrency Rate Loan denominated
in Euro, means a TARGET Day .

 

“Canadian Dollars”
means the lawful currency of Canada.

 

“Capital Stock”
means (a) in the case of a corporation, capital stock, (b) in the
case of an association or business entity, any and all shares, interests,
participations, rights or other equivalents (however designated) of capital
stock, (c) in the case of a partnership, partnership interests (whether
general or limited), (d) in the case of a limited liability company,
membership interests and (e) any other interest or participation that
confers on a Person the right to receive a share of the profits and losses of,
or distributions of assets of, the issuing Person.

 

“Cash Collateral”
means cash or deposit account balances pledged  and
deposited with or delivered to the Administrative  Agent,
for the benefit of the L/C Issuer and the Lenders, as collateral  for

 

4

 

the L/C Obligations,
pursuant to documentation in form and substance reasonably satisfactory to the
Administrative  Agent and the L/C Issuer.

 

“Closing Date”
means the date hereof.

 

“Committed Loan”
means a Base Rate Loan or a Eurocurrency Rate Loan made to the Borrower by a
Lender in accordance with its pro rata share pursuant to Section 2.01,
except as otherwise provided herein.

 

“Commitment Period”
means the period from and including the Closing Date to the earlier of (a)(i)
in the case of Revolving Loans and Swingline Loans, the Revolving Termination
Date or (ii) in the case of the Letters of Credit, the L/C Expiration Date, or
(b) in each case, the date on which the Revolving Commitments shall have been
terminated as provided herein.

 

“Commitments”
means the Revolving Commitment, the L/C Commitment and the Swingline
Commitment.

 

“Compliance
Certificate” means a certificate substantially in the form of Exhibit
6.05(d).

 

“Consolidated EBITDA”
means, for any period for the Consolidated Group, the sum of (a) Consolidated
Net Income, plus (b) to the extent deducted in determining net income,
(i) Consolidated Interest Expense, (ii) taxes and (iii) depreciation and
amortization, in each case on a consolidated basis determined in accordance
with GAAP.  Except as otherwise expressly
provided, the applicable period shall be the four consecutive fiscal quarters
ending as of the date of determination.

 

“Consolidated Funded
Debt” means Funded Debt of the Consolidated Group determined on a
consolidated basis in accordance with GAAP.

 

“Consolidated Group”
means the Parent and its Consolidated Subsidiaries, as determined in accordance
with GAAP.

 

“Consolidated Leverage
Ratio” means, as of the last day of each fiscal quarter, the ratio of (a)
Consolidated Funded Debt on such day to (b) Consolidated EBITDA for the period
of four consecutive fiscal quarters ending as of such day.

 

“Consolidated Net
Income” shall mean the net income (excluding extraordinary items or the
cumulative effect of accounting changes) of the Consolidated Group determined
on a consolidated basis in accordance with GAAP for (A) the applicable period
of four consecutive fiscal quarters, for purposes of calculating the
Consolidated Leverage Ratio and (B) the applicable fiscal quarter then ended,
for purposes of calculating increases to the Consolidated Net Worth under Section
7.05(b) .

 

“Consolidated Net
Worth” means, as of any date, consolidated shareholders’ equity or net
worth of the Consolidated Group as determined in accordance with GAAP.

 

“Consolidated
Subsidiary” shall mean, as to any Person, any Subsidiary of such Person
which under the rules of GAAP consistently applied should have its financial
results consolidated with those of such Person for purposes of financial
accounting statements.

 

5

 

“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” means
the possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of a Person, whether through the
ability to exercise voting power, by contract or otherwise.  “Controlling” and “Controlled”
have meanings correlative thereto. 
Without limiting the generality of the foregoing, a Person shall be
deemed to be Controlled by another Person if such other Person possesses,
directly or indirectly, power to vote 10% or more of the securities having
ordinary voting power for the election of directors, managing general partners
or the equivalent.

 

“Controlled Group”
shall mean as of the applicable date all members of a controlled group of
corporations and all trades or businesses (whether or not incorporated) under
common control which, together with Borrower, are treated as a single employer
under Section 414 of the Code.

 

“Credit Agreement”
has the meaning provided in the recitals hereto, as the same may be amended and
modified from time to time.

 

“Credit Documents”
means this Credit Agreement, the Notes, the Fee Letter, the Issuer Documents
and the Lender Joinder Agreements, if any. 
The parties hereto acknowledge and agree that the Borrower is (or in the
case of Lender Joinder Agreements, if any, will be) a party to each Credit
Document.

 

“Credit Extension”
means each of the following: (a) a Borrowing, (b) the conversion or
continuation of a Borrowing, and (c) an L/C Credit Extension.

 

“Debt Rating”
means, as of any date of determination, the rating as determined by either of
the Rating Services of the Parent’s non-credit enhanced, senior unsecured
long-term debt.

 

“Debtor Relief Laws”
means the Bankruptcy Code of the United States, and all other liquidation,
conservatorship, bankruptcy, assignment for the benefit of creditors,
moratorium, rearrangement, receivership, insolvency, reorganization, or similar
debtor relief Laws of the United States or other applicable jurisdictions from
time to time in effect and affecting the rights of creditors generally.

 

“Default” means
any event, act or condition that constitutes and Event of Default or that, with
notice, the passage of time, or both, would constitute an Event of Default.

 

“Default Rate”
means (a) when used with respect to Obligations other than Letter of Credit
Fees, an interest rate equal to (i) the Base Rate plus (ii) the
Applicable Percentage, if any, applicable to Base Rate Loans plus (iii)
2% per annum; provided, however, that with respect to a
Eurocurrency Rate Loan, the Default Rate shall be an interest rate equal to the
interest rate (including any Applicable Percentage and any Mandatory Cost)
otherwise applicable to such Loan plus 2% per annum, and (b) when used with
respect to Letter of Credit Fees, a rate equal to the Applicable Percentage plus
2% per annum.

 

“Defaulting Lender”
means any Lender that (a) has failed to fund any portion of the Loans,
participations in L/C Obligations or participations in Swingline Loans required
to be funded by it hereunder within one Business Day of the date required to be
funded by it hereunder and has not cured such failure prior to the date of
determination, (b) has otherwise failed to pay over to the Administrative
Agent or any other Lender any other amount required to be paid by it hereunder
within one Business Day of the date when due, unless the subject of a good faith
dispute, and has not cured such failure prior to the

 

6

 

date of determination, or
(c) has been deemed insolvent or become the subject of a bankruptcy or
insolvency proceeding.

 

“Dollar” or “$”
means the lawful currency of the United States.

 

“Dollar
Equivalent” means, at any time, (a) with respect to any amount denominated
in Dollars, such amount, and (b) with respect to any amount denominated in any
Alternative Currency, the equivalent amount thereof in Dollars as determined by
the Administrative Agent or the L/C Issuer, as the case may be, at such time on
the basis of the Spot Rate (determined in respect of the most recent
Revaluation Date) for the purchase of Dollars with such Alternative Currency.

 

“Domestic Subsidiary”
means any Subsidiary that is organized under the laws of any state of the
United States or the District of Columbia.

 

“Eligible Assignee”
means (a) a Lender; (b) an Affiliate of a Lender; (c) an Approved Fund; and (d)
any other Person (other than a natural person) approved by (i) the
Administrative Agent, the L/C Issuer and the Swingline Lender and (ii) unless
an Event of Default has occurred and is continuing, the Borrower (each such
approval not to be unreasonably withheld or delayed); provided that
notwithstanding the foregoing, “Eligible Assignee” shall not include the
Borrower or any of the Borrower’s Affiliates or Subsidiaries; and provided
further that an Eligible Assignee shall include only a Lender, an
Affiliate of a Lender, an Approved Fund or another Person which, through its
Lending Offices, is capable of lending the applicable Alternative Currencies to
the Borrower without the imposition of any Taxes or additional Taxes, as the
case may be.

 

“EMU” means the
economic and monetary union in accordance with the Treaty of Rome 1957, as
amended by the Single European Act 1986, the Maastricht Treaty of 1992 and the
Amsterdam Treaty of 1998, as amended from time to time.

 

“EMU Legislation”
means the legislative measures of the European Council for the introduction of,
changeover to or operation of a single or unified European currency (whether
known as the “euro” or otherwise).

 

“Environmental Laws”
means any and all federal, state, local, and foreign statutes, laws,
regulations, ordinances, rules, judgments, orders, decrees, permits,
concessions, grants, franchises, licenses, agreements or governmental
restrictions relating to pollution and the protection of the environment or the
release of any materials into the environment, including those related to
hazardous substances or wastes, air emissions and discharges to waste or public
systems.

 

“Equity Transaction”
means, with respect to any member of the Consolidated Group, any issuance or
sale of shares of its Capital Stock, other than an issuance (a) to a member of
the Consolidated Group, (b) in connection with the exercise by a present or
former employee, officer or director under a stock incentive plan, stock option
plan or other equity-based compensation plan or arrangement or (c) in connection
with any Acquisition or joint venture arrangement.

 

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

 

“ERISA Affiliate”
means any trade or business (whether or not incorporated) under common
control with the Borrower within the meaning of Section 414(b) or
(c) of the Internal Revenue Code (and Sections 414(m) and (o) of the
Internal Revenue Code for purposes of provisions relating to Section 412
of the Internal Revenue Code).

 

7

 

“ERISA Event”
means (a) a Reportable Event with respect to a Pension Plan; (b) a
withdrawal by the Borrower or any ERISA Affiliate from a Pension Plan subject
to Section 4063 of ERISA during a plan year in which it was a substantial
employer (as defined in Section 4001(a)(2) of ERISA) or a cessation of
operations that is treated as such a withdrawal under Section 4062(e) of
ERISA; (c) a complete or partial withdrawal by the Borrower or any ERISA
Affiliate from a Multiemployer Plan or notification that a Multiemployer Plan
is in reorganization; (d) the filing of a notice of intent to terminate,
the treatment of a Plan amendment as a termination under Sections 4041 or
4041A of ERISA, or the commencement of proceedings by the PBGC to terminate a
Pension Plan or Multiemployer Plan; (e) an event or condition that would
reasonably be expected to constitute grounds under Section 4042 of ERISA
for the termination of, or the appointment of a trustee to administer, any
Pension Plan or Multiemployer Plan; or (f) the imposition of any liability
under Title IV of ERISA, other than for PBGC premiums due but not
delinquent under Section 4007 of ERISA, upon the Borrower or any ERISA
Affiliate.

 

“Euro” and “€”
mean the lawful currency of the Participating Member States introduced in
accordance with the EMU Legislation.

 

“Eurocurrency Rate”
means for any Interest Period with respect to a Eurocurrency Rate Loan:

the applicable Screen
Rate for such Interest Period; or, if the applicable Screen Rate shall not
be available, the rate per annum determined by the Administrative Agent as the
rate of interest at which deposits in the relevant currency for delivery on the
first day of such Interest Period in Same Day Funds in the approximate amount
of the Eurocurrency Rate Loan being made, continued or converted by Bank of
America and with a term equivalent to such Interest Period would be offered by
Bank of America’s London Branch (or other Bank of America branch or Affiliate)
to major banks in the London or other offshore interbank market for such
currency at their request at approximately 4:00 p.m. (London time) two Business
Days prior to the first day of such Interest Period.

 

“Eurocurrency Rate
Loan” means a Committed Loan that bears interest at a rate based on the
Eurocurrency Rate.  Eurocurrency Rate
Loans may be denominated in Dollars or in an Alternative Currency.  All Committed Loans denominated in an
Alternative Currency must be Eurocurrency Rate Loans.

 

“Eurocurrency Rate
Loan” means a Loan that bears interest at a rate based on the Eurocurrency
Rate.

 

“Eurocurrency 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
Eurocurrency Rate for each outstanding Eurocurrency Rate Loan shall be adjusted
automatically as of the effective date of any change in the Eurocurrency
Reserve Percentage.

 

“Event of Default”
has the meaning provided in Section 8.01.

 

“Excluded Taxes”
means, with respect to the Administrative Agent, any Lender, the L/C Issuer or
any other recipient of any payment to be made by or on account of any
obligation of the Borrower hereunder, (a) taxes imposed on or measured by its
overall net income (however denominated), and franchise taxes imposed on it (in
lieu of net income taxes), (b) any branch profits taxes imposed by the United
States or any similar tax imposed by any other jurisdiction in which the
Borrower is subject to tax

 

8

 

and (c) in the case of a
Foreign Lender (other than an assignee pursuant to a request by the Borrower
under Section 10.13), any withholding tax that is imposed on amounts
payable to such Foreign Lender at the time such Foreign Lender becomes a party
hereto (or designates a new Lending Office) or is attributable to such Foreign
Lender’s failure or inability (other than as a result of a change in law following
the time at which such Foreign Lender becomes a Lender hereunder) to comply
with Section 3.01(e), except to the extent that such Foreign Lender (or
its assignor, if any) was entitled, at the time of designation of a new Lending
Office (or assignment), to receive additional amounts from the Borrower with
respect to such withholding tax pursuant to Section 3.01(a).

 

“Extraordinary
Receipts” means the receipt by any member of the Consolidated Group of any
tax refunds, indemnity payments or pension reversions.

 

“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 of New York on the Business Day immediately 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
immediately preceding Business Day as so published on the immediately
succeeding Business Day, and (b) if no such rate is so published on such
immediately succeeding Business Day, the Federal Funds Rate for such day shall
be the average rate (rounded upward, if necessary, to the next 1/100th
of 1%) charged to Bank of America on such day on such transactions as
determined by the Administrative Agent.

 

“Fee Letter” means
the letter agreement, dated April 15, 2004, among the Borrower, the
Administrative Agent and the Arranger.

 

“Foreign Lender”
means, with respect to the Borrower, any Lender that is not a “United States
person” as defined by Section 7701(a)(30) of the Internal Revenue Code.

 

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

 

“Fund” means
any Person (other than a natural person) engaged in making, purchasing, holding
or otherwise investing in commercial loans and similar extensions of credit in
the ordinary course of its business.

 

“Funded Debt”
means, as to any Person at a particular time, without duplication, all of the
following, whether or not included as indebtedness or liabilities in accordance
with GAAP:

 

(a)                                  all
obligations for borrowed money, whether current or long-term (including the
Obligations hereunder), and all obligations evidenced by bonds, debentures,
notes, loan agreements or other similar instruments;

 

(b)                                 all
purchase money indebtedness, including indebtedness and obligations in respect
of conditional sales and title retention arrangements and the deferred purchase
price of property or services, but excluding customary conditional sales and
title retention arrangements with suppliers that are entered into in the
ordinary course of business and trade accounts payable incurred in the ordinary
course of business and payable on customary trade terms;

 

(c)                                  all
standby letters of credit or acceptances or bank guaranties issued or created
for the account of such Person (excluding all performance or commercial letters
of credit and performance bank guaranties);

 

9

 

(d)                                 the
Attributable Principal Amount of capital leases and Synthetic Leases;

 

(e)                                  the
Attributable Principal Amount of Securitization Transactions;

 

(f)                                    all
preferred stock and comparable equity interests providing for mandatory
redemption, sinking fund or other like payments;

 

(g)                                 Support
Obligations in respect of Funded Debt of another Person;

 

(h)                                 Funded
Debt of any partnership or joint venture or other similar entity in which such
Person is a general partner or joint venturer, and, as such, has personal
liability for such obligations, but only to the extent there is recourse to
such Person for payment thereof.

 

For purposes hereof, the
amount of Funded Debt shall be determined (i) based on the outstanding
principal amount in the case of borrowed money indebtedness under clause (a)
and purchase money indebtedness under clause (b), (ii) based on the
maximum amount available to be drawn in the case of letter of credit
obligations and the other obligations under clause (c), and (iii) based
on the amount of Funded Debt that is the subject of the Support Obligations in
the case of Support Obligations under clause (g).

 

“GAAP” means
generally accepted accounting principles in effect in the United States as set
forth in the opinions and pronouncements of the Accounting Principles Board and
the American Institute of Certified Public Accountants and statements and
pronouncements of the Financial Accounting Standards Board from time to time
applied on a consistent basis, subject to the provisions of Section 1.03.

 

“Governmental
Authority” means any nation or government, any state or other political
subdivision thereof, and any agency, authority, instrumentality, regulatory
body, court, administrative tribunal, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers
or functions of or pertaining to government.

 

“Hazardous Materials”
means all explosive or radioactive substances or wastes and all hazardous or
toxic substances, wastes or other pollutants, including petroleum or petroleum
distillates, asbestos or asbestos-containing materials, polychlorinated
biphenyls, radon gas, infectious or medical wastes and all other substances or
wastes of any nature regulated pursuant to any Environmental Law.

 

“Honor Date” has
the meaning provided in Section 2.03(c)(i).

 

“Indebtedness”
means, as to any Person at a particular time, without duplication, all of the
following, whether or not included as indebtedness or liabilities in accordance
with GAAP:

 

(a)                                  all
Funded Debt;

 

(b)                                 net
obligations under any Swap Contract;

 

(c)                                  Support
Obligations in respect of Indebtedness of another Person; and

 

(d)                                 Indebtedness
of any partnership or joint venture or other similar entity in which such Person
is a general partner or joint venturer, and, as such, has personal liability
for such obligations, but only to the extent there is recourse to such Person
for payment thereof.

 

10

 

For purposes hereof, the
amount of Indebtedness shall be determined (i) based on Swap Termination Value
in the case of net obligations under Swap Contracts under clause (b) and
(ii) based on the outstanding principal amount of the Indebtedness that is the
subject of the Support Obligations in the case of Support Obligations under
clause (c).

 

“Indemnified Taxes”
means Taxes other than Excluded Taxes.

 

“Indemnitees” has
the meaning provided in Section 10.04(b).

 

“Information” has
the meaning provided in Section 10.07.

 

“Interest Payment Date”
means, (a) as to any Base Rate Loan (including Swingline Loans), the first
Business Day after the end of each March, June, September and December,
commencing June 30, 2004 and the Revolving Termination Date and, in the case of
any Swingline Loan, also the date of demand for repayment by the Swingline
Lender, and (b) as to any Eurocurrency Rate Loan, the last Business Day of each
Interest Period for such Loan, the date of repayment of principal of such Loan
and the Revolving Termination Date, and in addition, where the applicable
Interest Period exceeds three (3) months, the date every three (3) months after
the beginning of such Interest Period. 
If an Interest Payment Date falls on a date that is not a Business Day,
such Interest Payment Date shall be deemed to be the immediately succeeding
Business Day.

 

“Interest Period”
means, as to each Eurocurrency Rate Loan, the period commencing on the date
such Eurocurrency Rate Loan is disbursed or converted to or continued as a
Eurocurrency Rate Loan and ending on the date one (1), two (2), three (3), six
(6)  or twelve (12) months thereafter, as
selected (subject to availability) by the Borrower in its Loan Notice; provided
that:

 

(a)                                  any
Interest Period that would otherwise end on a day that is not a Business Day
shall be extended to the immediately succeeding Business Day unless such
Business Day falls in another calendar month, in which case such Interest
Period shall end on the immediately preceding Business Day;

 

(b)                                 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
calendar month at the end of such Interest Period; and

 

(c)                                  no
Interest Period with respect to any Revolving Loan shall extend beyond the
Revolving Termination Date.

 

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

 

“Investment”
means, as to any Person, any direct or indirect acquisition or investment by
such Person, whether by means of (a) the purchase or other acquisition of
Capital Stock of another Person, (b) a loan, advance or capital
contribution to, guaranty or assumption of debt of, or purchase or other
acquisition of any other debt or equity participation or interest in, another
Person, including any partnership or joint venture interest in such other
Person, or (c) the purchase or other acquisition (in one transaction or a
series of transactions) of assets of another Person that constitute a business
unit.  For purposes of covenant
compliance, the amount of any Investment shall be the amount actually invested,
without adjustment for subsequent increases or decreases in the value of such
Investment.

 

11

 

“IRS” means the
United States Internal Revenue Service.

 

“ISP” means, with
respect to any Letter of Credit, the “International Standby Practices 1998”
published by the Institute of International Banking Law & Practice (or such
later version thereof as may be in effect at the time of issuance of such
Letter of Credit).

 

“Issuer Documents”
means, with respect to any Letter of Credit, the L/C Application and any other
document, agreement or instrument (including such Letter of Credit) entered
into by the Borrower (or any Subsidiary) and the L/C Issuer (or in favor of the
L/C Issuer), relating to such Letter of Credit.

 

“Laws” means,
collectively, all international, foreign, federal, state and local statutes,
treaties, rules, guidelines, regulations, ordinances, codes and administrative
or judicial precedents or authorities, including the interpretation or
administration thereof by any Governmental Authority charged with the
enforcement, interpretation or administration thereof, and all applicable
administrative orders, directed duties, licenses, authorizations and permits
of, and agreements with, any Governmental Authority.

 

“L/C Advance”
means, with respect to each Lender, such Lender’s funding of its participation
in any L/C Borrowing.

 

“L/C Application”
means an application and agreement for the issuance or amendment of a Letter of
Credit in the form from time to time in use by the L/C Issuer.

 

“L/C Borrowing”
means any extension of credit resulting from a drawing under any Letter of
Credit that has not been reimbursed or refinanced as a Borrowing of Revolving
Loans.

 

“L/C Commitment”
means, with respect to the L/C Issuer, the commitment of the L/C Issuer to
issue and to honor payment obligations under Letters of Credit, and, with
respect to each Lender, the commitment of such Lender to purchase participation
interests in L/C Obligations up to such Lender’s Revolving Commitment
Percentage thereof.

 

“L/C Credit Extension”
means, with respect to any Letter of Credit, the issuance thereof or extension
of the expiry date thereof, or the increase of the amount thereof.

 

“L/C Expiration Date”
means the day that is seven days prior to the Revolving Termination Date then
in effect (or, if such day is not a Business Day, the immediately preceding
Business Day).

 

“L/C Issuer” means
Bank of America in its capacity as issuer of Letters of Credit hereunder,  together with its successors in such capacity.

 

“L/C Obligations”
means, at any time, the sum of (a) the maximum amount available to be drawn
under Letters of Credit then outstanding, assuming compliance with all
requirements for drawings referenced therein, plus (b) the aggregate amount of
all Unreimbursed Amounts, including L/C Borrowings.  For all purposes of this Credit Agreement, if
on any date of determination a Letter of Credit has expired by its terms but
any amount may still be drawn thereunder by reason of the operation of Rule
3.14 of the ISP, such Letter of Credit shall be deemed to be “outstanding” in
the amount so remaining available to be drawn.

 

“L/C Sublimit” has
the meaning provided in Section 2.01(b).

 

12

 

“Lender” means
each of the Persons identified as a “Lender” on the signature pages hereto
(and, as appropriate, includes the L/C Issuer and the Swingline Lender), those
Persons who become Lenders pursuant to Section 2.01(d) and Persons who,
pursuant to the terms of this Credit Agreement, become successors and assigns
of the foregoing.

 

“Lender Joinder Agreement”
means a joinder agreement, substantially in the form of Exhibit 2.01(d),
executed and delivered in accordance with the provisions of Section 2.01(d).

 

“Lending Office”
means, as to any Lender, the office or offices of such Lender set forth in such
Lender’s Administrative Questionnaire or such other office or offices as a
Lender may from time to time notify the Borrower and the Administrative Agent.

 

“Letter of Credit”
means each commercial and standby  letter of
credit issued hereunder.  Letters of Credit
may be issued in Dollars or in an Alternative Currency.

 

“Letter of Credit
Application” means an application and agreement for the issuance or
amendment of a Letter of Credit in the form from time to time in use by the L/C
Issuer.

 

“Letter of Credit Fee”
has the meaning provided in Section 2.09(d)(i).

 

“Letter of Credit
Usage” means, as at any date of determination, the aggregate undrawn face
amount of outstanding Letters of Credit plus the aggregate amount of all
drawings under the Letters of Credit not reimbursed by the Borrower or
converted into Committed Loans.

 

“Lien” means any
mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance,
lien (statutory or other), charge, or preference, priority or other security
interest or preferential arrangement of any kind or nature whatsoever
(including any conditional sale or other title retention agreement, and any
financing lease having substantially the same economic effect as any of the
foregoing).

 

“Loan” means any
Revolving Loan and Swingline Loan and the Base Rate Loans and Eurocurrency Rate
Loans comprising such Loans.

 

“Loan Notice”
means a notice of (a) a Borrowing of Loans (including Swingline Loans), (b) a
conversion of Loans from one Type to the other, or (c) a continuation of Eurocurrency
Rate Loans, which, if in writing, shall be substantially in the form of Exhibit
2.02.

 

“Mandatory Cost Rate”
means, with respect to any period, a rate per annum determined in accordance
with Schedule 3.03.

 

“Mandatory Cost
Reference Lender” means Bank of America.

 

“Material Adverse
Effect” means a material adverse effect upon (a) the financial condition,
operations or properties of the Consolidated Group taken as a whole,
(b) the ability of the Borrower to perform in any material respect under any
Credit Document or (c) the validity or enforceability against the Borrower of
any Credit Document.

 

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

 

13

 

“Multiemployer Plan”
means any employee benefit plan of the type described in
Section 4001(a)(3) of ERISA, to which the Borrower or any ERISA Affiliate
makes or is obligated to make contributions, or during the preceding five plan
years, has made or been obligated to make contributions.

 

“Notes” means the
Revolving Notes.

 

“Obligations”
means, without duplication, (a) all advances to, and debts, liabilities,
obligations, covenants and duties of, the Borrower arising under any Credit
Document or otherwise with respect to any Loan or Letter of Credit, whether
direct or indirect (including those acquired by assumption), absolute or
contingent, due or to become due, now existing or hereafter arising and
including interest and fees that accrue after the commencement by or against
the Borrower or any other member of the Consolidated Group of any proceeding
under any Debtor Relief Laws naming such Person as the debtor in such
proceeding, regardless of whether such interest and fees are allowed claims in
such proceeding and (b) solely for the purposes of Sections 7.01 and 8.03
hereof and the definition of Permitted Funded Debt hereunder, all obligations
under any Swap Contract between the Borrower and any Lender or Affiliate of a
Lender to the extent permitted hereunder.

 

“Organization Documents”
means, (a) with respect to any corporation, the certificate or articles of
incorporation and the bylaws (or equivalent or comparable constitutive
documents with respect to any non-U.S. jurisdiction); (b) with respect to
any limited liability company, the certificate or articles of formation or
organization and operating agreement; and (c) with respect to any
partnership, joint venture, trust or other form of business entity, the
partnership, joint venture or other applicable agreement of formation or organization
and any agreement, instrument, filing or notice with respect thereto filed in
connection with its formation or organization with the applicable Governmental
Authority in the jurisdiction of its formation or organization and, if
applicable, any certificate or articles of formation or organization of such
entity.

 

“Other Taxes”
means all present or future stamp or documentary taxes or any other excise or
property taxes, charges or similar levies arising from any payment made
hereunder or under any other Credit Document or from the execution, delivery or
enforcement of, or otherwise with respect to, this Credit Agreement or any
other Credit Document; provided that the term “Other Taxes” shall not
include Excluded Taxes.

 

“Outstanding Amount”
means (a) with respect to Revolving Loans and Swingline Loans on any date,
the Dollar Equivalent of the aggregate outstanding principal amount thereof
after giving effect to any Borrowings and prepayments or repayments of
Revolving Loans and Swingline Loans, as the case may be, occurring on such date
and (b) with respect to any L/C Obligations on any date, the Dollar
Equivalent of the amount of such L/C Obligations on such date after giving
effect to any L/C Credit Extension occurring on such date and any other changes
in the aggregate amount of the L/C Obligations as of such date, including as a
result of any reimbursements of outstanding unpaid drawings under any Letters
of Credit or any reductions in the maximum amount available to be drawn under
Letters of Credit taking effect on such date.

 

“Outstanding
Obligations” means, as of any date, and giving effect to making any
Extensions of Credit requested on such date and all payments, repayments and
prepayments made on such date, (a) when reference is made to all Lenders, the
sum of (i) the aggregate outstanding principal amount of all Loans and (ii) all
Letter of Credit Usage, and (b) when reference is made to one Lender, the sum
of (i) the aggregate outstanding principal amount of all Loans made by such
Lender, (ii) such Lender’s ratable risk participation in all Letter of Credit
Usage and (iii) such Lender’s ratable risk participation in all Swingline
Loans.

 

14

 

“Overnight Rate”
means, for any day, (a) with respect to any amount denominated in Dollars, the
greater of (i) the Federal Funds Rate and (ii) an overnight rate determined by
the Administrative Agent, the L/C Issuer or the Swingline Lender, as the case
may be, in accordance with banking industry rules on interbank compensation and
(b) with respect to any amount denominated in an Alternative Currency, the rate
of interest per annum at which overnight deposits in the applicable Alternative
Currency, in an amount approximately equal to the amount with respect to which
such rate is being determined, would be offered for such day by a branch or
Affiliate of Bank of America located in the applicable interbank market for
such currency to major banks in such interbank market.

 

“Parent” shall
mean Sabre Holdings Corporation, a Delaware corporation.

 

“Participant” has
the meaning provided in Section 10.06(d).

 

“Participating Member
State” means each state so described in any EMU Legislation.

 

“PBGC” means the
Pension Benefit Guaranty Corporation.

 

“Pension Plan”
means any “employee pension benefit plan” (as such term is defined in
Section 3(2) of ERISA), other than a Multiemployer Plan, that is subject
to Title IV of ERISA and is sponsored or maintained by the Borrower or any
ERISA Affiliate or to which the Borrower or any ERISA Affiliate contributes or
has an obligation to contribute, or in the case of a multiple employer or other
plan described in Section 4064(a) of ERISA, has made contributions at any
time during the immediately preceding five plan years.

 

“Permitted Funded Debt”
means (a) any Support Obligation of a Subsidiary in respect of Funded Debt of
the Parent (or any other member of the Consolidated Group) if the obligor under
such Support Obligation enters into the same (or equivalent) Support Obligation
in respect of the Obligations and (b) any Funded Debt owed by any Subsidiary to
the Borrower or any other Subsidiary.

 

“Permitted
Securitization Transaction” shall mean any Securitization Transaction; provided
that such Securitization Transaction (a) is in a principal amount not exceeding
$400 million and (b) is either (i) nonrecourse to the Borrower and its
Subsidiaries and is on market terms and conditions or (ii) (A) the
Administrative Agent shall be reasonably satisfied with the structure and
documentation for any such transaction and that the terms of such transaction
entered into after the Closing Date, including the discount applicable to the
receivables which are the subject of such financing and any termination events,
shall be (in the good faith understanding of the Administrative Agent)
consistent with those prevailing in the market at the time of commitment
thereto for similar transactions involving a receivables originator/servicer of
similar credit quality and a receivables pool or other similar characteristics
and (B) the documentation for such transaction shall not be amended or modified
in a way which is materially detrimental to the Lenders hereunder without the
prior written approval of the Administrative Agent and the Required Lenders.

 

“Person” means any
natural person, corporation, limited liability company, trust, joint venture,
association, company, partnership, Governmental Authority or other entity.

 

“Plan” means any
“employee benefit plan” (as such term  is defined in
Section 3(3) of ERISA) established by the Borrower or, with respect to any
such plan that is subject to Section 412 of the Internal Revenue Code or
Title IV of ERISA, any ERISA Affiliate.

 

15

 

“Property” means
an interest of any kind in any property or asset, whether real, personal or
mixed, and whether tangible or intangible.

 

“Rating Services”
means S&P and Moody’s.

 

“Register” has the
meaning provided in Section 10.06(c).

 

“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
Person’s Affiliates.

 

“Reportable Event”
means any of the events set forth in Section 4043(c) of ERISA, other than
events for which the thirty-day notice period has been waived.

 

“Request for Credit
Extension” means (a) with respect to a Borrowing of Loans (including
Swingline Loans) or the conversion or continuation of Loans, a Loan Notice and
(b) with respect to an L/C Credit Extension, a L/C Application.

 

“Required Lenders”
means, as of any date of determination, Lenders having more than fifty percent
(50%) of the Aggregate Revolving Commitments or, if the Commitments shall have
expired or been terminated, Lenders holding in the aggregate more than 50% of
the Revolving Obligations (including, in each case, the aggregate amount of
each Lender’s risk participation and funded participation in L/C Obligations
and Swingline Loans); provided that the commitments of, and the portion
of the Revolving Obligations held or deemed held by, any Defaulting Lender
shall be excluded for purposes of making a determination of Required Lenders.

 

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

 

“Responsible Officer”
means the chief executive officer, president, chief financial officer,
corporate secretary (except with regard to the execution of a Compliance
Certificate), treasurer or assistant treasurer of the Borrower.  Any document delivered hereunder that is signed
by a Responsible Officer of the Borrower shall be conclusively presumed to have
been authorized by all necessary corporate, partnership and/or other action on
the part of the Borrower and such Responsible Officer shall be conclusively
presumed to have acted on behalf of the Borrower.

 

“Restricted Funded
Debt” means any Funded Debt of a Subsidiary other than Permitted Funded
Debt.

 

“Restricted Payment”
means any dividend or other distribution (whether in cash, securities or other
property) with respect to any Capital Stock of any member of the Consolidated
Group, or any payment (whether in cash, securities or other property),
including any sinking fund or similar deposit, on account of the purchase,
redemption, retirement, acquisition, cancellation or termination of any such
Capital Stock or of any option, warrant or other right to acquire any such
Capital Stock.

 

“Revaluation Date”
means (a) with respect to any Loan, each of the following: (i) each date of a
Borrowing of a Eurocurrency Rate Loan denominated in an Alternative Currency,
(ii) each date of a continuation of a Eurocurrency Rate Loan denominated in an
Alternative Currency pursuant to Section 2.02 and (iii) such
additional dates as the Administrative Agent or the Required Lenders shall

 

16

 

specify and (b) with
respect to any Letter of Credit, each of the following: (i) each date of
issuance of a Letter of Credit Denominated in an Alternative Currency, (ii)
each date of an amendment of any such Letter of Credit having the effect of
increasing the amount thereof (solely with respect to the increased amount),
(iii) each date of any payment by the L/C Issuer under any Letter of Credit
denominated in an Alternative Currency and (iv) such additional dates as the
Administrative Agent or the Required Lenders shall specify.

 

“Revolving Commitment”
means the commitment of each Lender to make Revolving Loans (and to share in
Revolving Obligations) hereunder.

 

“Revolving Commitment
Percentage” means, at any time for each Lender, a fraction (expressed as a
percentage carried to the ninth decimal place), the numerator of which is such
Lender’s Revolving Committed Amount and the denominator of which is the
Aggregate Revolving Committed Amount. 
The initial Revolving Commitment Percentages are set out in Schedule
2.01.

 

“Revolving Committed
Amount” means, with respect to each Lender, the amount of such Lender’s
Revolving Commitment.  The initial
Revolving Committed Amounts are set out in Schedule 2.01.

 

“Revolving Loan”
has the meaning provided in Section 2.01(a).

 

“Revolving Notes”
means (a) the promissory notes, if any, given to evidence the Revolving Loans,
as amended, restated, modified, supplemented, extended, renewed or replaced and
(b) the Swingline Note.  A form of
Revolving Note is attached as Exhibit 2.13-1.

 

“Revolving Obligations”
means the Revolving Loans, the L/C Obligations and the Swingline Loans.

 

“Revolving Termination
Date” means June 15, 2009.

 

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

 

“Sale and Leaseback
Transaction” means, with respect to the Borrower or any Subsidiary, any
arrangement, directly or indirectly, with any Person (other than the Borrower)
whereby the Borrower or such Subsidiary shall sell or transfer any property,
real or personal, used or useful in its business, whether now owned or
hereafter acquired, and thereafter rent or lease such property or other
property that it intends to use for substantially the same purpose or purposes
as the property being sold or transferred.

 

“Same Day Funds”
means (a) with respect to disbursements and payments in Dollars, immediately
available funds, and (b) with respect to disbursements and payments in an
Alternative Currency, same day or other funds as may be determined by the
Administrative Agent or the L/C Issuer to be customary in the place of
disbursement or payment for the settlement of international banking
transactions in the relevant Alternative Currency.

 

“Screen Rate”
means, for any Interest Period:

 

(a)                                            the
rate per annum equal to the rate determined by the Administrative Agent to be
the offered rate that appears on the page of the Dow Jones Market Service
(formerly known as Telerate) screen (or any successor thereto) that displays an
average British Bankers Association

 

17

 

Interest Settlement Rate
for deposits in the relevant currency (for delivery on the first day of such
Interest Period) with a term equivalent to such Interest Period, determined as
of approximately 11:00 a.m. (London time) two (2) Business Days prior to the
first day of such Interest Period; or

 

(b)                               if
the rate referenced in the preceding clause (a) does not appear on such page or
service or such page or service shall cease to be available, the rate per annum
equal to the rate determined by the Administrative Agent to be the offered rate
on such other page or other service that displays an average British Bankers
Association Interest Settlement Rate for deposits in the relevant currency (for
delivery on the first day of such Interest Period) with a term equivalent to
such Interest Period, determined as of approximately 11:00 a.m. (London time)
two (2) Business Days prior to the first day of such Interest Period.

 

“SEC” means the
Securities and Exchange Commission, or any Governmental Authority succeeding to
any of its principal functions.

 

“Securitization
Transaction” means any financing or factoring or similar transaction (or
series of such transactions) entered by any member of the Consolidated Group
pursuant to which such member of the Consolidated Group may sell, convey or
otherwise transfer, or grant a security interest in, accounts, payments,
receivables, rights to future lease payments or residuals or similar rights to
payment (the “Securitization Receivables”) to a special purpose
subsidiary or affiliate (a “Securitization Subsidiary”) or any other
Person.

 

“Special Notice
Currency” means any Alternative Currency other than the currency of a
country that is a member of the Organization for Economic Cooperation and
Development at such time located in North America or Europe.

 

“Spot Rate” for a
currency means the rate determined by the Administrative Agent or the L/C
Issuer, as applicable, to be the rate quoted by the Person acting in such
capacity as the spot rate for the purchase by such Person of such currency with
another currency through its principal foreign exchange trading office at
approximately 11:00 a.m. on the date two (2) Business Days prior to the date as
of which the foreign exchange computation is made; provided  that the Administrative Agent or the L/C Issuer may obtain
such spot rate from another financial institution designated by the
Administrative Agent or the L/C Issuer if the Person acting in such capacity
does not have as of the date of determination a spot buying rate for any such
currency; and provided  further that the L/C Issuer may use such
spot rate quoted on the date as of which the foreign exchange computation is
made in the case of any Letter of Credit denominated in an Alternative
Currency.

 

“Subsidiary” of a
Person means a corporation, partnership, joint venture, limited liability
company or other business entity of which a majority of the shares of
securities or other interests having ordinary voting power for the election of
directors or other governing body (other than securities or interests having
such power only by reason of the happening of a contingency) are at the time
beneficially owned, or the management of which is otherwise controlled, directly,
or indirectly through one or more intermediaries, or both, by such Person.  Unless otherwise provided, “Subsidiary” shall
refer to a Subsidiary of the Borrower. 
Notwithstanding the foregoing, the parties hereto acknowledge and agree
that neither Sabre Sociedad Technologica S.A. de CV nor its current or future
subsidiaries is a Subsidiary of the Borrower.

 

“Support Obligations”
means, as to any Person, any (a) any obligation, contingent or otherwise,
of such Person guaranteeing or having the economic effect of guaranteeing any
Indebtedness or Funded Debt payable by another Person (the “primary obligor”)
in any manner, whether directly or indirectly, and

 

18

 

including any obligation
of such Person, direct or indirect, (i) to purchase or pay (or advance or
supply funds for the purchase or payment of) such Indebtedness or Funded Debt,
(ii) to purchase or lease property, securities or services for the purpose
of assuring the obligee in respect of such Indebtedness or Funded Debt of the
payment or performance of such Indebtedness or Funded Debt, (iii) to
maintain working capital, equity capital or any other financial statement
condition or liquidity or level of income or cash flow of the primary obligor
so as to enable the primary obligor to pay such Indebtedness or Funded Debt, or
(iv) entered into for the purpose of assuring in any other manner the
obligee in respect of such Indebtedness or Funded Debt of the payment or
performance thereof or to protect such obligee against loss in respect thereof
(in whole or in part), or (b) any Lien on any assets of such Person
securing any Indebtedness or Funded Debt of any other Person, whether or not
such Indebtedness or Funded Debt is assumed by such Person.  The amount of any Support Obligations shall
be deemed to be an amount equal to the stated or determinable amount of the
related primary obligation, or portion thereof, in respect of which such
Support Obligation is made or, if not stated or determinable, the maximum reasonably
anticipated liability in respect thereof as determined by the guaranteeing
Person in good faith.

 

“Swap Contract”
means (a) any and all rate swap transactions, basis swaps, credit
derivative transactions, forward rate transactions, commodity swaps, commodity
options, forward commodity contracts, equity or equity index swaps or options,
bond or bond price or bond index swaps or options or forward bond or forward
bond price or forward bond index transactions, interest rate options, forward
foreign exchange transactions, cap transactions, floor transactions, collar
transactions, currency swap transactions, cross-currency rate swap
transactions, currency options, spot contracts, or any other similar
transactions or any combination of any of the foregoing (including any options
to enter into any of the foregoing), whether or not any such transaction is
governed by or subject to any master agreement, and (b) any and all
transactions of any kind, and the related confirmations, that are subject to
the terms and conditions of, or governed by, any form of master agreement
published by the International Swaps and Derivatives Association, Inc., any
International Foreign Exchange Master Agreement, or any other master agreement
(any such master agreement, together with any related schedules, a “Master
Agreement”), including any such obligations or liabilities under any Master
Agreement.

 

“Swap Termination
Value” means, in respect of any one or more Swap Contracts, after taking
into account the effect of any legally enforceable netting agreement relating
to such Swap Contracts, (a) for any date on or after the date such Swap
Contracts have been closed out and termination values determined in accordance
therewith, such termination values, and (b) for any date prior to the date
referenced in clause (a), the amounts determined as the
mark-to-market values for such Swap Contracts, as determined based upon one or
more mid-market or other readily available quotations provided by any
recognized dealer in such Swap Contracts (which may include a Lender or any
Affiliate of a Lender).

 

“Swingline Borrowing”
means a borrowing of a Swingline Loan pursuant to Section 2.01(c).

 

“Swingline Commitment”
means, with respect to the Swingline Lender, the commitment of the Swingline
Lender to make Swingline Loans, and with respect to each Lender, the commitment
of such Lender to purchase participation interests in Swingline Loans.

 

“Swingline Lender”
means Bank of America in its capacity as such, together with any successor in
such capacity.

 

“Swingline Loan”
has the meaning provided in Section 2.01(c).

 

19

 

“Swingline Note”
means the promissory note given to evidence the Swingline Loans, as amended,
restated, modified, supplemented, extended, renewed or replaced.  A form of Swingline Note is attached as Exhibit
2.13-2.

 

“Swingline Sublimit”
has the meaning provided in Section 2.01(c).

 

“Synthetic Lease”
means any synthetic lease, tax retention operating lease, off-balance sheet
loan or similar off-balance sheet financing arrangement that is considered
borrowed money indebtedness for tax purposes but is classified as an operating
lease under GAAP.

 

“TARGET Day” means
any day on which the Trans-European Automated Real-time Gross Settlement
Express Transfer (TARGET) payment system (or, if such payment system ceases to
be operative, such other payment system (if any) determined by the
Administrative Agent to be a suitable replacement) is open for the settlement
of payments in Euro.

 

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

 

“Type” means, with
respect to any Revolving Loan, its character as a Base Rate Loan or a
Eurocurrency Rate Loan.

 

“Unfunded Pension
Liability” means the excess of a Pension Plan’s “Accumulated Benefit
Obligation”, determined as of a required measurement date in accordance with
the Financial Accounting Standards Board Statement No. 87, over the fair market
value of that Pension Plan’s assets as of such measurement date.

 

“United States” or
“U.S.” means the United States of America.

 

“Unreimbursed Amount”
has the meaning provided in Section 2.03(c)(i).

 

“Utilization Fee”
has the meaning provided in Section 2.09(b).

 

“Yen” or “¥”
means the lawful currency of Japan.

 

1.02                        Interpretive
Provisions.

 

With reference to this
Credit Agreement and each other Credit Document, unless otherwise provided
herein or in such other Credit Document:

 

(a)                                  The
meanings of defined terms are equally applicable to the singular and plural
forms of the defined terms.

 

(b)                                 (i)                                     The
words “herein,” “hereto,” “hereof” and “hereunder”
and words of similar import when used in any Credit Document shall refer to
such Credit Document as a whole and not to any particular provision thereof.

 

(ii)                                  Unless otherwise
provided or required by context, Article, Section, Exhibit and
Schedule references are to the Credit Document in which such reference
appears.

 

20

 

(iii)                               The term “including”
is by way of example or clarification, and not limitation.

 

(iv)                              The term “documents”
includes any and all instruments, documents, agreements, certificates, notices,
reports, financial statements and other writings, however evidenced, whether in
physical or electronic form.

 

(c)                                  In
the computation of periods of time from a specified date to a later specified
date, the word “from” means “from and including”; the words “to”
and “until” each mean “to but excluding”; and the word “through”
means “to and including.”

 

(d)                                 Section
headings herein and in the other Credit Documents are included for convenience
of reference only and shall not affect the interpretation of this Credit
Agreement or any other Credit Document.

 

1.03                        Accounting Terms and Provisions.

 

(a)                                  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
Credit 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 financial statements
referenced in Section 5.11, except as otherwise specifically
prescribed herein.

 

(b)                                 If
at any time any change in GAAP or in the consistent application thereof would
affect the computation of any financial ratio or requirement set forth in any
Credit Document, and either the Borrower or the Required Lenders shall object
in writing to determining compliance based on such change, then such
computations shall continue to be made on a basis consistent with the most recent
financial statements filed by the Parent with the SEC as to which no such
objection has been made.

 

1.04                        Rounding.

 

Any financial ratios
required to be maintained by the Borrower pursuant to this Credit Agreement
shall be calculated by dividing the appropriate component by the other
component, carrying the result to one place more than the number of places by
which such ratio is expressed herein and rounding the result up or down to the
nearest number (with a rounding-up if there is no nearest number).

 

1.05                        References to Agreements and Laws.

 

Unless otherwise
expressly provided herein, (a) references to Organization Documents,
agreements (including the Credit Documents) and other contractual instruments
shall be deemed to include all subsequent amendments, restatements, extensions,
supplements and other modifications thereto, but only to the extent that such
amendments, restatements, extensions, supplements and other modifications are
not prohibited by any Credit Document; and (b) references to any Law shall
include all statutory and regulatory provisions consolidating, amending,
replacing, supplementing or interpreting such Law.

 

21

 

1.06                        Times of Day.

 

Unless otherwise
provided, all references herein to times of day shall be references to Eastern
time (daylight or standard, as applicable).

 

1.07                        Letter of Credit Amounts.

 

                                                Unless
otherwise specified, all references herein to the amount of a Letter of Credit
at any time shall be deemed to mean the Dollar Equivalent of the maximum face
amount of such Letter of Credit after giving effect to all increases thereof
contemplated by such Letter of Credit or the Issuer Documents related thereto,
whether or not such maximum face amount is in effect at such time.

 

1.08                        Exchange Rates; Currency Equivalents.

 

(a)                                  The
Administrative Agent or the L/C Issuer shall determine the Spot Rates as of
each Revaluation Date to be used for calculating Dollar Equivalent amounts of
Credit Extensions and Outstanding Amounts denominated in Alternative
Currencies.  Such Spot Rates shall become
effective as of such Revaluation Date and shall be the Spot Rates employed in
converting any amounts between the applicable currencies until the next
Revaluation Date to occur.  Except for
purposes of financial statements delivered by the Borrower hereunder,
calculating financial covenants hereunder and as otherwise provided herein, the
applicable amount of any currency for purposes of the Credit Documents shall be
such Dollar Equivalent amount as so determined by the Administrative Agent or
the L/C Issuer.

 

(b)                                 Wherever
in this Credit Agreement in connection with a Borrowing, conversion,
continuation or prepayment of a Loan, or a Letter of Credit, an amount, such as
a required minimum or multiple amount, is expressed in Dollars, but such
Borrowing, Loan or Letter of Credit is denominated in an Alternative Currency,
such amount shall be the relevant Alternative Currency Equivalent of such
Dollar amount (rounded to the nearest 1,000 units of such Alternative
Currency), as determined by the Administrative Agent or the L/C Issuer.

 

1.09                        Additional Alternative Currencies.

 

(a)                                  The
Borrower may from time to time request that Eurocurrency Rate Loans be made
and/or Letters of Credit be issued in a currency other than those specifically
listed in the definition of “Alternative Currency”; provided that such
requested currency is a lawful currency (other than Dollars) that is readily
available and freely transferable and convertible into Dollars.  In the case of any such request with respect
to the making of Eurocurrency Rate Loans, such request shall be subject to the
approval of the Administrative Agent and the Lenders; and in the case of any
such request with respect to the issuance of Letters of Credit, such request
shall be subject to the approval of the Administrative Agent and the L/C
Issuer.

 

(b)                                 Any
such request shall be made to the Administrative Agent not later than 11:00
a.m., ten Business Days prior to the date of the desired Credit Extension (or
such other time or date as may be agreed by the Administrative Agent and, in
the case of any such request pertaining to Letters of Credit, the L/C Issuer,
in its or their sole discretion).  In the
case of any such request pertaining to Eurocurrency Rate Loans, the
Administrative Agent shall promptly notify each Lender thereof; and in the case
of any such request pertaining to Letters of Credit, the Administrative Agent
shall promptly notify the L/C Issuer thereof. 
Each Lender (in the case of any such request pertaining to Eurocurrency
Rate Loans) or the L/C Issuer (in the case of a request pertaining to Letters
of Credit) shall notify the Administrative Agent, not

 

22

 

later than 11:00 a.m.,
five Business Days after receipt of such request whether it consents, in its
sole discretion, to the making of Eurocurrency Rate Loans or the issuance of
Letters of Credit, as the case may be, in such requested currency.

 

(c)                                  Any
failure by a Lender or the L/C Issuer, as the case may be, to respond to such
request within the time period specified in the preceding sentence shall be
deemed to be a refusal by such Lender or the L/C Issuer, as the case may be, to
permit Eurocurrency Rate Loans to be made or Letters of Credit to be issued in
such requested currency.  If the
Administrative Agent and all the Lenders consent to making Eurocurrency Rate
Loans in such requested currency, the Administrative Agent shall so notify the
Borrower and such currency shall thereupon be deemed for all purposes to be an
Alternative Currency hereunder for purposes of any Borrowings of Eurocurrency
Rate Loans; and if the Administrative Agent and the L/C Issuer consent to the
issuance of Letters of Credit in such requested currency, the Administrative
Agent shall so notify the Borrower and such currency shall thereupon be deemed
for all purposes to be an Alternative Currency hereunder for purposes of any
Letter of Credit issuances. If the Administrative Agent shall fail to obtain
consent to any request for an additional currency under this Section 1.09,
the Administrative Agent shall promptly so notify the Borrower.

 

1.10                        Redenomination of Certain
Alternative Currencies.

 

(a)                                  Each
obligation of the Borrower to make a payment denominated in the national currency
unit of any member state of the European Union that adopts the Euro as its
lawful currency after the date hereof shall be redenominated into Euro at the
time of such adoption (in accordance with the EMU Legislation).  If, in relation to the currency of any such
member state, the basis of accrual of interest expressed in this Credit
Agreement in respect of that currency shall be inconsistent with any convention
or practice in the London interbank market for the basis of accrual of interest
in respect of the Euro, such expressed basis shall be replaced by such
convention or practice with effect from the date on which such member state
adopts the Euro as its lawful currency; provided that if any Borrowing
in the currency of such member state is outstanding immediately prior to such
date, such replacement shall take effect, with respect to such Borrowing, at
the end of the then current Interest Period.

 

(b)                                 Each
provision of this Credit Agreement shall be subject to such reasonable changes
of construction as the Administrative Agent may from time to time specify to be
appropriate to reflect the adoption of the Euro by any member state of the
European Union and any relevant market conventions or practices relating to the
Euro.

 

                                                (c)                                  Each
provision of this Credit Agreement also shall be subject to such reasonable
changes of construction as the Administrative Agent may from time to time
specify to be appropriate to reflect a change in currency of any other country
and any relevant market conventions or practices relating to the change in
currency.

 

 

ARTICLE II  

COMMITMENTS AND CREDIT EXTENSIONS

 

2.01                        Commitments.

 

Subject to the terms and
conditions set forth herein:

 

23

 

(a)                                  Revolving
Loans.  During the Commitment Period,
each Lender severally agrees to make revolving credit loans (the “Revolving
Loans”) to the Borrower in Dollars or in one or more Alternative Currencies
on any Business Day; provided that after giving effect to any such
Revolving Loan, (i) with regard to the Lenders collectively, (A) the
Outstanding Amount of Revolving Obligations shall not exceed THREE HUNDRED
MILLION DOLLARS ($300,000,000) (as such amount may be increased or  decreased in accordance with the provisions hereof, the “Aggregate
Revolving Committed Amount”) and (B) the Outstanding Amount of all
Revolving Loans denominated in Alternative Currencies shall not exceed
SEVENTY-FIVE MILLION DOLLARS ($75,000,000) (as such amount may be decreased in
accordance with the provisions hereof, the “Alternative Currency Sublimit”),
and (ii) with regard to each Lender individually, such Lender’s Revolving
Commitment Percentage of Revolving Obligations shall not exceed its respective
Revolving Committed Amount.  Revolving
Loans may consist of Base Rate Loans, Eurocurrency Rate Loans, or a combination
thereof, as the Borrower may request, and may be repaid and reborrowed in
accordance with the provisions hereof.

 

(b)                                 Letters
of Credit.  During the Commitment
Period, (i) the L/C Issuer, in reliance
upon the commitments of the Lenders set forth herein, agrees (A) to issue
Letters of Credit for the account of the Borrower or any member of the
Consolidated Group in Dollars or in one or more Alternative Currencies on any
Business Day, (B) to amend or renew  Letters of
Credit previously issued hereunder, and (C) to honor drawings under Letters of
Credit; and (ii) the Lenders severally
agree to purchase from the L/C Issuer a participation interest in Letters of
Credit issued hereunder in an amount equal to such Lender’s Revolving
Commitment Percentage thereof; provided that (A) the Outstanding Amount
of L/C Obligations shall not exceed SEVENTY-FIVE MILLION DOLLARS ($75,000,000)
(as such amount may be decreased in accordance with the provisions hereof, the
“L/C Sublimit”), (B) with regard to the Lenders collectively, the
Outstanding Amount of Revolving Obligations shall not exceed the Aggregate
Revolving Committed Amount, and (C) with regard to each Lender individually,
such Lender’s Revolving Commitment Percentage of Revolving Obligations shall
not exceed its respective Revolving Committed Amount.  Subject to the terms and conditions hereof,
the Borrower’s ability to obtain Letters of Credit shall be fully revolving,
and accordingly the Borrower may obtain Letters of Credit to replace Letters of
Credit that have expired or that have been drawn upon and reimbursed.

 

(c)                                  Swingline
Loans.  During the Commitment Period,
the Swingline Lender agrees to make revolving credit loans (the “Swingline
Loans”) to the Borrower in Dollars on any Business Day; provided
that (i) the Outstanding Amount of Swingline Loans shall not exceed TWENTY
MILLION DOLLARS ($20,000,000) (as such amount may be decreased in accordance
with the provisions hereof, the “Swingline Sublimit”) and (ii) with respect
to the Lenders collectively, the Outstanding Amount of Revolving Obligations
shall not exceed the Aggregate Revolving Committed Amount.  Swingline Loans shall be comprised solely of
Base Rate Loans, and may be repaid and reborrowed in accordance with the
provisions hereof.  Immediately upon the
making of a Swingline Loan, each Lender shall be deemed to, and hereby
irrevocably and unconditionally agrees to, purchase from the Swingline Lender a
participation interest in such Swingline Loan in an amount equal to the product
of such Lender’s Revolving Commitment Percentage thereof.

 

(d)                                 Increase
in Revolving Commitments.  Subject to
the terms and conditions set forth herein, the Borrower may, at any four (4)
times on or after the Closing Date, upon written notice to the Administrative
Agent, increase the Aggregate Revolving Committed Amount by up to ONE HUNDRED
MILLION DOLLARS ($100,000,000) to not more than FOUR HUNDRED MILLION DOLLARS
($400,000,000); provided that:

 

24

 

(i)                                     the Borrower shall
obtain commitments for the amount of the increase from existing Lenders (none
of which shall be required to increase its Revolving Commitment) or other
commercial banks and financial institutions reasonably acceptable to the
Borrower and the Administrative Agent, which other commercial banks and
financial institutions shall join in this Credit Agreement as Lenders by
joinder agreement substantially in the form of Exhibit 2.01(d) attached
hereto or by other arrangement reasonably acceptable to the Administrative
Agent;

 

(ii)                                  any such increase
shall be in a minimum aggregate principal amount of $5 million and integral
multiples of $1 million in excess thereof (or the remaining amount, if less);

 

(iii)                               if any Revolving Loans are
outstanding at the time of any such increase, the Borrower will make such
payments and adjustments on the Revolving Loans (including payment of any
breakage or other amounts owing under Section 3.05) as may be necessary
to give effect to the revised commitment percentages and commitment amounts;
and

 

(iv)                              the conditions to the
making of a Revolving Loan set forth in Section 4.02 shall be satisfied.

 

In connection with any
such increase in the Revolving Commitments, Schedule 2.01 will be
revised to reflect the modified commitments and commitment percentages of the
Lenders, and the Borrower will provide supporting resolutions, legal opinions,
promissory notes and other items as may be reasonably requested by the
Administrative Agent and the Lenders in connection therewith.

 

2.02                        Borrowings,
Conversions and Continuations.

 

(a)                                  Each
Borrowing, each conversion of Loans from one Type to the other, and each
continuation of Eurocurrency Rate Loans shall be made upon the Borrower’s
irrevocable notice to the Administrative Agent, which may be given by
telephone.  Each such notice must be
received by the Administrative Agent not later than 11:00 a.m. (i) three (3)
Business Days prior to the requested date of any Borrowing of, conversion to or
continuation of Eurocurrency Rate Loans denominated in Dollars or of any
conversion of Eurocurrency Rate Loans denominated in Dollars to Base Rate
Loans, (ii) four (4) Business Days (or five (5) Business Days in the case of
Special Notice Currencies) prior to the requested date of any Borrowing of,
conversion to or continuation of Eurocurrency Rate Loans denominated in
Alternative Currencies or of any conversion of Eurocurrency Rate Loans
denominated in Alternative Currencies to Base Rate Loans and (iii) on the
requested date of any Borrowing of Base Rate Loans.  Each telephonic notice by the Borrower
pursuant to this Section 2.02(a) must be confirmed promptly by
delivery to the Administrative Agent of a written Loan Notice, appropriately
completed and signed by a Responsible Officer of the Borrower. Except as
provided in Sections 2.03(c) and 2.04(a), each
Borrowing, conversion or continuation shall be in a principal amount of (i)
with respect to Eurocurrency Rate Loans, $5 million or a whole multiple of $1
million in excess thereof or (ii) with respect to Base Rate Loans, $1 million
or a whole multiple of $100,000 in excess thereof.  Each Loan Notice (whether telephonic or
written) shall specify (i) whether such request is for a Borrowing, conversion,
or continuation, (ii) the requested date of such Borrowing, conversion or
continuation (which shall be a Business Day), (iii) the principal amount
of Loans to be borrowed, converted or continued, (iv) the Type of Loans to
be borrowed, converted or continued, and (v) if applicable, the duration
of the Interest Period with respect thereto.

 

If the Borrower fails to
specify a Type of Loan in a Loan Notice, then such Loan shall be made as a Base
Rate Loan.  If the Borrower requests a
Borrowing of, conversion to, or continuation of Eurocurrency Rate Loans in any
Loan Notice, but fails to specify an Interest Period, it will be deemed to

 

25

 

have specified an
Interest Period of one (1) month.  If the
Borrower fails to give a timely notice requesting a conversion or continuation
of a Eurocurrency Rate Loan, then such Eurocurrency Rate Loan shall be
converted to a Base Rate Loan on the last day of the Interest Period applicable
thereto, provided, however, that in the case of a failure to timely
request a continuation of a Loan denominated in an Alternative Currency, such
Loan shall be continued as a Eurocurrency Rate Loan in its original currency
with an Interest Period of one (1) month. 
No Loan may be converted into or continued as a Loan denominated in a
different currency, but instead must be prepaid in the original currency of
such Loan and reborrowed in the other currency.

 

(b)                                 Following
receipt of a Loan Notice, the Administrative Agent shall promptly notify each
Lender of the amount of its Commitment Percentage of the applicable Loans, and
if no timely notice of a conversion or continuation is provided by the
Borrower, the Administrative Agent shall notify each Lender of the details of
any automatic conversion to Base Rate Loans or continuation of Loans
denominated in an Alternative Currency, in each case as described in the
preceding subsection.  In the case of a
Borrowing, each Lender shall make the amount of its Loan available to the
Administrative Agent in Same Day Funds at the Administrative Agent’s Office for
the Applicable Currency not later than 1:00 p.m. in the case of any Loan
denominated in Dollars, and not later than the Applicable Time specified by the
Administrative Agent in the case of any Loan denominated in Alternative
Currency, in each case on the Business Day specified in the applicable Loan
Notice.  Upon satisfaction of the
applicable conditions set forth in Section 4.02 (and, if such Borrowing
is an initial Credit Extension, Section 4.01), the Administrative Agent
shall make all funds so received available to the Borrower in like funds as
received by the Administrative Agent either by (i) crediting the account of the
Borrower on the books of Bank of America with the amount of such funds or (ii)
wire transfer of such funds, in each case in accordance with instructions
provided to (and reasonably acceptable to) the Administrative Agent by the
Borrower; provided, however, that if, on the date of a Borrowing of
Revolving Loans, there are L/C Borrowings outstanding, then the proceeds of
such Borrowing shall be applied, first, to the payment in full of any
such L/C Borrowings and second, to the Borrower as provided above.

 

(c)                                  Except
as otherwise provided herein, without the consent of the Required Lenders, (i)
a Eurocurrency Rate Loan may be continued or converted only on the last day of
an Interest Period for such Eurocurrency Rate Loan and (ii) any conversion
into, or continuation as, a Eurocurrency Rate Loan may be made only if the
conditions to Credit Extensions in Section 4.02 have been
satisfied.  During the existence of a
Default or Event of Default, (A) no Loan may be requested as, converted to or
continued as a Eurocurrency Rate Loan and (B) at the request of the Required
Lenders, (1) any outstanding Eurocurrency Rate Loans denominated in Dollars
shall be converted immediately  to Base Rate
Loans and (2) any outstanding Eurocurrency Rate Loans denominated in an
Alternative Currency shall be converted immediately  to
Dollar-denominated Base Rate Loans.

 

(d)                                 The
Administrative Agent shall promptly notify the Borrower and the Lenders of the
interest rate applicable to any Interest Period for Eurocurrency Rate Loans
upon determination of such interest rate. 
At any time that Base Rate Loans are outstanding, the Administrative
Agent shall notify the Borrower and the Lenders of any change in Bank of
America’s prime rate used in determining the Base Rate promptly following the
public announcement of such change.

 

(e)                                  After
giving effect to all Borrowings, all conversions of Loans from one Type to the
other, and all continuations of Loans as the same Type, there shall not be more
than five (5) Interest Periods in effect with respect to Loans.

 

26

 

(f)                                    Upon
request of the Borrower and submission of the appropriate account information
to the Administrative Agent, the Borrower may direct that Eurocurrency Rate
Loans be deposited into the account of a Subsidiary of the Borrower.

 

2.03                        Additional Provisions with Respect
to Letters of Credit.

 

(a)                                  Obligation
to Issue or Amend.

 

(i)                                     The L/C Issuer
shall not issue any Letter of Credit if:

 

(A)                              subject to Section
2.03(b)(iii),  the expiry date of such requested
Letter of Credit would occur more than twelve months after the date of issuance
or last extension, unless the Required Lenders have approved such expiry date;
or

 

(B)                                the expiry date of such
requested Letter of Credit would occur after the L/C Expiration Date, unless
all the Lenders have approved such expiry date.

 

(ii)                                  The L/C Issuer shall
not be under any obligation to issue any Letter of Credit if:

 

(A)                              any order, judgment or
decree of any Governmental Authority or arbitrator shall by its terms purport
to enjoin or restrain the L/C Issuer from issuing such Letter of Credit, or any
Law applicable to the L/C Issuer or any request or directive (whether or not
having the force of law) from any Governmental Authority with jurisdiction over
the L/C Issuer shall prohibit, or request that the L/C Issuer refrain from, the
issuance of letters of credit generally or such Letter of Credit in particular
or shall impose upon the L/C Issuer with respect to such Letter of Credit any
restriction, reserve or capital requirement (for which the L/C Issuer is not
otherwise compensated hereunder) not in effect on the Closing Date, or shall
impose upon the L/C Issuer any unreimbursed loss, cost or expense that was not
applicable on the Closing Date and that the L/C Issuer in good faith deems
material to it;

 

(B)                                the issuance of such
Letter of Credit would violate any Law or one or more policies of the L/C
Issuer;

 

(C)                                except as otherwise
agreed by the L/C Issuer and the Administrative Agent, such Letter of Credit is
in an initial face amount less than $100,000 or Dollar Equivalent, in the case
of a commercial Letter of Credit, or $1 million or Dollar Equivalent, in the
case of a standby Letter of Credit;

 

(D)                               except
as otherwise agreed by the Administrative Agent and the L/C Issuer, such Letter
of Credit is to be denominated in a currency other than Dollars or an
Alternative Currency;

 

(E)                                 such Letter of
Credit contains any provisions for automatic reinstatement of the stated amount
after any drawing thereunder;

 

(F)                                 the L/C Issuer does
not as of the issuance date of such requested Letter of Credit issue Letters of
Credit in the requested currency; or

 

27

 

(G)                                a default of any
Lender’s obligations to fund under Section 2.03(c) existing or any
Lender is at such time a Defaulting Lender, unless the L/C Issuer has entered
into satisfactory arrangements with the Borrower or such Lender to eliminate
the L/C Issuer’s risk with respect to such Lender.

 

(iii)                               The L/C Issuer shall not
amend any Letter of Credit if the L/C Issuer would not be permitted at such
time to issue such Letter of Credit in its amended form under the terms hereof.

 

(iv)                              The L/C Issuer shall not
be under any obligation to amend any Letter of Credit if:

 

(A)                              the L/C Issuer would have
no obligation at such time to issue such Letter of Credit in its amended form
under the terms hereof; or

 

(B)                                the beneficiary of such
Letter of Credit does not accept the proposed amendment to such Letter of
Credit.

 

(b)                                 Procedures
for Issuance and Amendment;  Auto-Renewal.

 

(i)                                     Each Letter of
Credit shall be issued or amended, as the case may be, upon the request of the
Borrower delivered to the L/C Issuer (with a copy to the Administrative Agent)
in the form of a Letter of Credit Application, appropriately completed and
signed by a Responsible Officer.  Such
Letter of Credit Application must be received by the L/C Issuer and the
Administrative Agent not later than 11:00 a.m. at least two Business Days (or
such later date and time as the L/C Issuer and the Administrative Agent may
agree in a particular instance in their sole discretion) prior to the proposed
issuance date or date of amendment, as the case may be.  In the case of a request for an initial
issuance of a Letter of Credit, such Letter of Credit Application shall specify
in form and detail satisfactory to the L/C Issuer:  (A) the proposed issuance date of the
requested Letter of Credit (which shall be a Business Day); (B) the amount and
currency thereof; (C) the expiry date thereof; (D) the name and address of the
beneficiary thereof; (E) the documents to be presented by such beneficiary in
case of any drawing thereunder; (F) the full text of any certificate to be
presented by such beneficiary in case of any drawing thereunder; and (G) such
other matters as the L/C Issuer may require. 
In the case of a request for an amendment of any outstanding Letter of
Credit, such Letter of Credit Application shall specify in form and detail
satisfactory to the L/C Issuer (A) the Letter of Credit to be amended; (B) the
proposed date of amendment thereof (which shall be a Business Day); (C) the nature
of the proposed amendment; and (D) such other matters as the L/C Issuer may
require.  Additionally, the Borrower
shall furnish to the L/C Issuer and the Administrative Agent such other
documents and information pertaining to such requested Letter of Credit
issuance or amendment, including any Issuer Documents, as the L/C Issuer or the
Administrative Agent may require.

 

(ii)                                  Promptly after
receipt of any Letter of Credit Application, the L/C Issuer will confirm with
the Administrative Agent (by telephone or in writing) that the Administrative
Agent has received a copy of such Letter of Credit Application from the
Borrower and, if not, the L/C Issuer will provide the Administrative Agent with
a copy thereof.  Unless the L/C Issuer
has received written notice from the Administrative Agent, any Lender or the
Borrower, at least one (1) Business Day prior to the requested date of issuance
or amendment of the applicable Letter of Credit, (A) directing the L/C Issuer
not to issue such Letter of Credit as a result of the limitations set forth in
this Article II or (B) that one or more applicable conditions contained
in Article IV shall not then be satisfied, then, subject to the terms
and conditions hereof, the L/C Issuer shall,

 

28

 

on the requested date,
issue a Letter of Credit for the account of the Borrower (or Subsidiary) or
enter into the applicable amendment, as the case may be, in each case in
accordance with the L/C Issuer’s usual and customary business practices.  Immediately upon the issuance of each Letter
of Credit, each Lender shall be deemed to, and hereby irrevocably and
unconditionally agrees to, purchase from the L/C Issuer a risk participation in
such Letter of Credit in an amount equal to such Lender’s Revolving Commitment
Percentage thereof.

 

(iii)                               If the Borrower so
requests in any applicable L/C Application, the L/C Issuer may, in its sole and
absolute discretion, agree to issue a Letter of Credit that has automatic
extension provisions (each, an “Auto-Extension Letter of Credit”); provided
that any such Auto-Extension Letter of Credit must permit the L/C Issuer to
prevent any such renewal at least once in each twelve-month period (commencing
with the date of issuance of such Letter of Credit) by giving prior notice to
the beneficiary thereof not later than a day (the “Non-Extension Notice Date”)
in each such twelve-month period to be agreed upon at the time such Letter of
Credit is issued.  Unless otherwise
directed by the L/C Issuer, the Borrower shall not be required to make a
specific request to the L/C Issuer for any such extension.  Once an Auto-Extension Letter of Credit has
been issued, the Lenders shall be deemed to have authorized (but may not
require) the L/C Issuer to permit the extension of such Letter of Credit at any
time to an expiry date not later than the L/C Expiration Date; provided,
however, that the L/C Issuer shall not permit any such extension if (A) the L/C
Issuer has determined that it would not be permitted or would have no obligation
at such time to issue such Letter of Credit in its revised form (as extended)
under the terms hereof (by reason of the provisions of Section 2.03(a)
or otherwise), or (B) it has received notice (which may be by telephone or in
writing) on or before the day that is five Business Days before the
Non-Extension Notice Date (1) from the Administrative Agent that the Required
Lenders have elected not to permit such extension or (2) from the
Administrative Agent, any Lender or the Borrower that one or more of the
applicable conditions specified in Section 4.02 is not then satisfied,
and in each case directing the L/C Issuer not to permit such extension.

 

(iv)                              Promptly after its
delivery of any Letter of Credit or any amendment to a Letter of Credit to an
advising bank with respect thereto or to the beneficiary thereof, the L/C
Issuer will also deliver to the Borrower and the Administrative Agent a true
and complete copy of such Letter of Credit or amendment.

 

(c)                                  Drawings
and Reimbursements; Funding of Participations.

 

(i)                                     Upon any drawing
under any Letter of Credit, the L/C Issuer shall notify the Borrower and the
Administrative Agent thereof.  Not later
than 11:00 a.m. on the date of any payment by the L/C Issuer under a Letter of
Credit (each such date, an “Honor Date”), the Borrower shall reimburse
the L/C Issuer through the Administrative Agent in the Applicable Currency in
an amount equal to the amount of such drawing, unless (A) the L/C Issuer (at
its option) shall have specified in such notice that it will require
reimbursement in Dollars or (B) in the absence of any such requirement for
reimbursement in Dollars, the Borrower shall have notified the L/C Issuer
promptly following receipt of the notice of drawing that the Borrower will
reimburse the L/C Issuer in Dollars.  If
the Borrower fails to so reimburse the L/C Issuer by such time, the
Administrative Agent shall promptly notify each Lender of the Honor Date, the
amount of the unreimbursed drawing (the “Unreimbursed Amount”), and the
amount of such Lender’s Revolving Commitment Percentage thereof.  In such event, the Borrower shall be deemed
to have requested a Borrowing of Base Rate Loans to be disbursed on the Honor
Date in an amount equal to the Unreimbursed Amount, without regard to the
minimum and multiples specified in

 

29

 

Section 2.02
for the principal amount of Base Rate Loans, the amount of the unutilized
portion of the Aggregate Revolving Committed Amount or the conditions set forth
in Section 4.02.  Any notice given
by the L/C Issuer or the Administrative Agent pursuant to this Section 2.03(c)(i) may
be given by telephone if immediately confirmed in writing; provided that
the lack of such an immediate confirmation shall not affect the conclusiveness
or binding effect of such notice.

 

(ii)                                  Each Lender
(including the Lender acting as L/C Issuer) shall upon any notice pursuant to Section 2.03(c)(i) make
funds available to the Administrative Agent for the account of the L/C Issuer
at the Administrative Agent’s Office in an amount equal to its Revolving
Commitment Percentage of the Unreimbursed Amount not later than 1:00 p.m. on
the Business Day specified in such notice by the Administrative Agent,
whereupon, subject to the provisions of Section 2.03(c)(iii), each
Lender that so makes funds available shall be deemed to have made a Revolving
Loan that is a Base Rate Loan to the Borrower in such amount.  The Administrative Agent shall remit the
funds so received to the L/C Issuer.

 

(iii)                               With respect to any
Unreimbursed Amount that is not fully refinanced by a Borrowing of Base Rate
Loans for any reason, the Borrower shall be deemed to have incurred from the
L/C Issuer an L/C Borrowing in the amount of the Unreimbursed Amount that is
not so refinanced, which L/C Borrowing shall be due and payable on demand
(together with interest) and shall bear interest at the Default Rate.  In such event, each Lender’s payment to the
Administrative Agent for the account of the L/C Issuer pursuant to Section 2.03(c)(ii) shall
be deemed payment in respect of its participation in such L/C Borrowing and
shall constitute an L/C Advance from such Lender in satisfaction of its
participation obligation under this Section 2.03.

 

(iv)                              Until a Lender funds its
Revolving Loan or L/C Advance pursuant to this Section 2.03(c) to
reimburse the L/C Issuer for any amount drawn under any Letter of Credit,
interest in respect of such Lender’s Revolving Commitment Percentage of such
amount shall be solely for the account of the L/C Issuer.

 

(v)                                 Each Lender’s
obligation to make Revolving Loans or L/C Advances to reimburse the L/C Issuer
for amounts drawn under Letters of Credit, as contemplated by this Section 2.03(c),
shall be absolute and unconditional and shall not be affected by any circumstance,
including (A) any set-off, counterclaim, recoupment, defense or other right
that such Lender may have against the L/C Issuer, the Borrower or any other
Person for any reason whatsoever; (B) the occurrence or continuance of a
Default or Event of Default, (C) non-compliance with the conditions set forth
in Section 4.02, or (D) any other occurrence, event or condition,
whether or not similar to any of the foregoing; provided that the L/C
Issuer shall have complied with the provisions of Section 2.03(b)(ii).  No such making of an L/C Advance shall
relieve or otherwise impair the obligation of the Borrower to reimburse the L/C
Issuer for the amount of any payment made by the L/C Issuer under any Letter of
Credit, together with interest as provided herein.

 

(vi)                              If any Lender fails to
make available to the Administrative Agent for the account of the L/C Issuer
any amount required to be paid by such Lender pursuant to the foregoing
provisions of this Section 2.03(c) by the time specified in Section 2.03(c)(ii),
the L/C Issuer shall be entitled to recover from such Lender (acting through
the Administrative Agent), on demand, such amount with interest thereon for the
period from the date such payment is required to the date on which such payment
is immediately available to the L/C Issuer at a rate per annum equal to the
Federal Funds Rate from time to time in effect. 
A certificate of the L/C Issuer submitted to

 

30

 

any Lender (through the
Administrative Agent) with respect to any amounts owing under this clause (vi) shall
be conclusive absent manifest error.

 

(d)                                 Repayment
of Participations.

 

(i)                                     At any time after
the L/C Issuer has made a payment under any Letter of Credit and has received
from any Lender such Lender’s L/C Advance in respect of such payment in
accordance with Section 2.03(c), if the Administrative Agent
receives for the account of the L/C Issuer any payment in respect of the
related Unreimbursed Amount or interest thereon (whether directly from the
Borrower or otherwise, including proceeds of Cash Collateral applied thereto by
the Administrative Agent), the Administrative Agent will distribute to such
Lender its Revolving Commitment Percentage thereof (appropriately adjusted, in
the case of interest payments, to reflect the period of time during which such
Lender’s L/C Advance was outstanding) in the same funds as those received by
the Administrative Agent.

 

(ii)                                  If any payment
received by the Administrative Agent for the account of the L/C Issuer pursuant
to Section 2.03(c)(i) is required to be returned under any of
the circumstances described in Section 10.05 (including pursuant to any
settlement entered into by the L/C Issuer in its discretion), each Lender shall
pay to the Administrative Agent for the account of the L/C Issuer its Revolving
Commitment Percentage thereof on demand of the Administrative Agent, plus
interest thereon from the date of such demand to the date such amount is
returned by such Lender, at a rate per annum equal to the Federal Funds Rate
from time to time in effect.

 

(e)                                  Obligations
Absolute.  The obligation of the
Borrower to reimburse the L/C Issuer for each drawing under each Letter of
Credit and to repay each L/C Borrowing shall be absolute, unconditional and
irrevocable, and shall be paid strictly in accordance with the terms of this
Credit Agreement under all circumstances, including the following:

 

(i)                                     any lack of
validity or enforceability of such Letter of Credit, this Credit Agreement or
any other Credit Document;

 

(ii)                                  the existence of any
claim, counterclaim, set-off, defense or other right that the Borrower or any
Subsidiary may have at any time against any beneficiary or any transferee of
such Letter of Credit (or any Person for whom any such beneficiary or any such
transferee may be acting), the L/C Issuer or any other Person, whether in
connection with this Credit Agreement, the transactions contemplated hereby or
by such Letter of Credit or any agreement or instrument relating thereto, or
any unrelated transaction;

 

(iii)                               any draft, demand,
certificate or other document presented under such Letter of Credit proving to
be forged, fraudulent, invalid or insufficient in any respect or any statement
therein being untrue or inaccurate in any respect; or any loss or delay in the
transmission or otherwise of any document required in order to make a drawing
under such Letter of Credit;

 

(iv)                              any payment by the L/C
Issuer under such Letter of Credit against presentation of a draft or
certificate that does not strictly comply with the terms of such Letter of
Credit; or any payment made by the L/C Issuer under such Letter of Credit to
any Person purporting to be a trustee in bankruptcy, debtor-in-possession,
assignee for the benefit of creditors, liquidator, receiver or other
representative of or successor to any beneficiary or any transferee of such
Letter of Credit, including any arising in connection with any proceeding under
any Debtor Relief Law;

 

31

 

(v)                                 any adverse change in
the relevant exchange rates or in the availability of the relevant Alternative
Currency to the Borrower or any Subsidiary or in the relevant currency markets
generally; or

 

(vi)                              any other circumstance or
happening whatsoever, whether or not similar to any of the foregoing, including
any other circumstance that might otherwise constitute a defense available to,
or a discharge of, the Borrower or any Subsidiary.

 

The Borrower shall
promptly examine a copy of each Letter of Credit and each amendment thereto
that is delivered to such Borrower and, in the event of any claim of
noncompliance with the Borrower’s instructions or other irregularity, the
Borrower will immediately notify the L/C Issuer.  The Borrower shall be conclusively deemed to
have waived any such claim against the L/C Issuer and its correspondents unless
such notice is given as aforesaid.

 

(f)                                    Role
of the L/C Issuer in such Capacity. 
Each Lender and the Borrower agrees that, in paying any drawing under a
Letter of Credit, the L/C Issuer shall not have any responsibility to obtain
any document (other than any sight draft, certificates and documents expressly
required by the Letter of Credit) or to ascertain or inquire as to the validity
or accuracy of any such document or the authority of the Person executing or
delivering any such document.  None of
the L/C Issuer, the Administrative Agent, any Agent-Related Person nor any of
the respective correspondents, participants or assignees of the L/C Issuer shall
be liable to any Lender for (i) any action taken or omitted in connection
herewith at the request or with the approval of the Lenders or the Required
Lenders, as applicable; (ii) any action taken or omitted in the absence of
gross negligence or willful misconduct; or (iii) the due execution,
effectiveness, validity or enforceability of any document or instrument related
to any Letter of Credit or Letter of Credit Application.  The Borrower hereby assumes all risks of the
acts or omissions of any beneficiary or transferee with respect to such Borrower’s
use of any Letter of Credit; provided, however, that this assumption is
not intended to, and shall not, preclude the Borrower’s pursuing such rights
and remedies as the Borrower may have against the beneficiary or transferee at
law or under any other agreement.  None
of the L/C Issuer, the Administrative Agent, any Agent-Related Person, nor any
of the respective correspondents, participants or assignees of the L/C Issuer,
shall be liable or responsible for any of the matters described in
clauses (i) through (v) of Section 2.03(e);
provided, however, that anything in such clauses to the contrary
notwithstanding, the Borrower may have a claim against the L/C Issuer, and the
L/C Issuer may be liable to the Borrower, to the extent, but only to the extent,
of any direct, as opposed to consequential or exemplary, damages suffered by
the Borrower that such Borrower proves were caused by the L/C Issuer’s willful
misconduct or gross negligence or the L/C Issuer’s willful failure to pay under
any Letter of Credit after the presentation to it by the beneficiary of a sight
draft and certificate(s) strictly complying with the terms and conditions of a
Letter of Credit.  In furtherance and not
in limitation of the foregoing, the L/C Issuer may accept documents that appear
on their face to be in order, without responsibility for further investigation,
regardless of any notice or information to the contrary, and the L/C Issuer
shall not be responsible for the validity or sufficiency of any instrument
transferring or assigning or purporting to transfer or assign a Letter of
Credit or the rights or benefits thereunder or proceeds thereof, in whole or in
part, that may prove to be invalid or ineffective for any reason.

 

(g)                                 Cash
Collateral.  (i) If the L/C
Issuer has honored any full or partial drawing request under any Letter of
Credit and such drawing has resulted in an L/C Borrowing, or (ii) if, as
of the L/C Expiration Date, any Letter of Credit for any reason remains
outstanding and partially or wholly undrawn, the Borrower shall immediately
provide Cash Collateral for the then-Outstanding Amount of its L/C Obligations
(in an amount equal to such Outstanding Amount determined as of the date of
such L/C Borrowing or the L/C Expiration Date, as the case may be).  The Borrower hereby grants to the  Administrative Agent, for the
benefit of the L/C Issuer and the Lenders, a security  interest
in all such

 

32

 

cash, deposit accounts
and all balances therein and all proceeds of the foregoing.  Cash Collateral shall be maintained in
blocked, non-interest bearing deposit accounts at Bank of America.

 

(h)                                 Applicability
of ISP and UCP.  Unless otherwise
expressly agreed by the L/C Issuer and the Borrower, when a Letter of Credit is
issued, (i)  the rules of the ISP shall apply
to each standby  Letter of Credit and (ii) the
rules of the Uniform Customs and Practice for Documentary Credits, as most
recently published by the International Chamber of Commerce at the time of
issuance shall apply to each commercial Letter of Credit.

 

(i)                                     Letters
of Credit Issued for Subsidiaries. 
Notwithstanding that a Letter of Credit issued or outstanding hereunder
is in support of any obligations of, or is for the account of, any Subsidiary
of the Borrower, the Borrower shall be obligated to reimburse the L/C Issuer
for any and all drawings under such Letter of Credit.  The Borrower hereby acknowledges that the
issuance of Letters of Credit for the account of the Borrower’s Subsidiaries
inures to the benefit of the Borrower, and that the Borrower’s business derives
substantial benefits from the businesses of such Subsidiaries.

 

(j)                                     Letter
of Credit Fees.  The Borrower shall
pay Letter of Credit fees as set forth in Section 2.09(d).

 

(k)                                  Conflict
with Issuer Documents.  In the event
of any conflict between the terms hereof and the terms of any Issuer Document,
the terms hereof shall control.

 

2.04                        Additional Provisions with Respect
to Swingline Loans.

 

(a)                                  Borrowing
Procedures.  Each Swingline Borrowing
shall be made upon the Borrower’s irrevocable notice to the Swingline Lender
and the Administrative Agent, which may be given by telephone. Each such notice
must be received by the Swingline Lender and the Administrative Agent not later
than 1:00 p.m. on the requested borrowing date, and shall specify (i) the
amount to be borrowed, which shall be a minimum of $500,000, and (ii) the
requested borrowing date, which shall be a Business Day.  Each such telephonic notice must be confirmed
promptly by delivery to the Swingline Lender and the Administrative Agent of a
written Loan Notice, appropriately completed and signed by a Responsible
Officer of the Borrower.  Promptly after
receipt by the Swingline Lender of any telephonic Loan Notice, the Swingline
Lender will confirm with the Administrative Agent (by telephone or in writing)
that the Administrative Agent has also received such Loan Notice and, if not,
the Swingline Lender will notify the Administrative Agent (by telephone or in
writing) of the contents thereof.  Unless
the Swingline Lender has received notice (by telephone or in writing) from the
Administrative Agent (including at the request of any Lender) prior to 2:00
p.m. on the date of the proposed Swingline Borrowing (A) directing the
Swingline Lender not to make such Swingline Loan as a result of the limitations
set forth in this Article II, or (B) that one or more of the applicable
conditions specified in Article IV is not then satisfied, then,
subject to the terms and conditions hereof, the Swingline Lender will, not
later than 3:00 p.m. on the borrowing date specified in such Loan Notice, make
the amount of its Swingline Loan available to the Borrower.

 

(b)                                 Refinancing.

 

(i)                                     The Swingline
Lender at any time in its sole and absolute discretion may request, on behalf
of the Borrower (which hereby irrevocably authorizes the Swingline Lender to so
request on its behalf), that each Lender make a Revolving Loan that is a Base
Rate Loan in an amount equal to such Lender’s Revolving Commitment Percentage
of Swingline Loans then outstanding. 
Such request shall be made in writing (which written request shall be
deemed to be

 

33

 

a Loan Notice for
purposes hereof) and in accordance with the requirements of Section 2.02,
without regard to the minimum and multiples specified therein for the principal
amount of Base Rate Loans, the unutilized portion of the Aggregate Revolving
Commitments or the conditions set forth in Section 4.02.  The Swingline Lender shall furnish the Borrower
with a copy of the applicable Loan Notice promptly after delivering such notice
to the Administrative Agent.  Each Lender
shall make an amount equal to its Revolving Commitment Percentage of the amount
specified in such Loan Notice available to the Administrative Agent in
immediately available funds for the account of the Swingline Lender at the
Administrative Agent’s Office not later than 1:00 p.m. on the day specified in
such Loan Notice, whereupon, subject to Section 2.04(b)(ii), each
Lender that so makes funds available shall be deemed to have made a Revolving
Loan that is a Base Rate Loan to the Borrower in such amount.  The Administrative Agent shall remit the
funds so received to the Swingline Lender.

 

(ii)                                  If for any reason any
Swingline Loan cannot be refinanced by such a Borrowing of Revolving Loans in
accordance with Section 2.04(b)(i), the request for Revolving Loans
submitted by the Swingline Lender as set forth herein shall be deemed to be a
request by the Swingline Lender that each of the Lenders fund its risk
participation in the relevant Swingline Loan and each Lender’s payment to the
Administrative Agent for the account of the Swingline Lender pursuant to Section 2.04(b)(i) shall
be deemed payment in respect of such participation.

 

(iii)                               If any Lender fails to
make available to the Administrative Agent for the account of the Swingline
Lender any amount required to be paid by such Lender pursuant to the foregoing
provisions of this Section 2.04(b) by the time specified in Section 2.04(b)(i),
the Swingline Lender shall be entitled to recover from such Lender (acting
through the Administrative Agent), on demand, such amount with interest thereon
for the period from the date such payment is required to the date on which such
payment is immediately available to the Swingline Lender at a rate per annum
equal to the Federal Funds Rate from time to time in effect.  A certificate of the Swingline Lender
submitted to any Lender (through the Administrative Agent) with respect to any
amounts owing under this clause (iii) shall be conclusive
absent manifest error.

 

(iv)                              Each Lender’s obligation
to make Revolving Loans or to purchase and fund risk participations in
Swingline Loans pursuant to this Section 2.04(b) shall be
absolute and unconditional and shall not be affected by any circumstance,
including (A) any set-off, counterclaim, recoupment, defense or other right
that such Lender may have against the Swingline Lender, the Borrower or any
other Person for any reason whatsoever, (B) the occurrence or continuance of a
Default or Event of Default, (C) non-compliance with the conditions set forth
in Section 4.02, or (D) any other occurrence, event or condition,
whether or not similar to any of the foregoing; provided that Swingline
Lender has complied with the provisions of Section 2.04(a).  No such purchase or funding of risk
participations shall relieve or otherwise impair the obligation of the Borrower
to repay Swingline Loans, together with interest as provided herein.

 

(c)                                  Repayment
of Participations.

 

(i)                                     At any time after
any Lender has purchased and funded a risk participation in a Swingline Loan,
if the Swingline Lender receives any payment on account of such Swingline Loan,
the Swingline Lender will distribute to such Lender its Revolving Commitment
Percentage of such payment (appropriately adjusted, in the case of interest
payments, to reflect the period of time during which such Lender’s risk
participation was funded) in the same funds as those received by the
Swingline Lender.

 

34

 

(ii)                                  If any payment
received by the Swingline Lender in respect of principal or interest on any
Swingline Loan is required to be returned by the Swingline Lender under any of
the circumstances described in Section 10.05 (including pursuant to any
settlement entered into by the Swingline Lender in its discretion), each Lender
shall pay to the Swingline Lender its Revolving Commitment Percentage thereof
on demand of the Administrative Agent, plus interest thereon from the date of
such demand to the date such amount is returned, at a rate per annum equal to
the Federal Funds Rate.  The
Administrative Agent will make such demand upon the request of the Swingline
Lender.

 

(d)                                 Interest
for Account of Swingline Lender.  The
Swingline Lender shall be responsible for invoicing the Borrower for interest
on the Swingline Loans.  Until each
Lender funds its Revolving Loan or risk participation pursuant to this Section 2.04
to refinance such Lender’s Revolving Commitment Percentage of any Swingline
Loan, interest in respect thereof shall be solely for the account of the
Swingline Lender.

 

(e)                                  Payments
Directly to Swingline Lender.  The
Borrower shall make all payments of principal and interest in respect of the
Swingline Loans directly to the Swingline Lender.

 

2.05                        Repayment of Loans.

 

(a)                                  Revolving
Loans.  The Borrower shall repay to
the Lenders the Outstanding Amount of Revolving Loans on the Revolving
Termination Date.

 

(b)                                 Swingline
Loans.  The Borrower shall repay to
the Swingline Lender the Outstanding Amount of the Swingline Loans on the
earlier  to occur of (i) the date of demand by the Swingline Lender and (ii) the Revolving Termination Date.

 

2.06                        Prepayments.

 

(a)                                  Voluntary
Prepayments.  The Loans may be repaid
in whole or in part without premium or penalty (except, in the case of Loans
other than Base Rate Loans, amounts payable pursuant to Section 3.05);
provided that:

 

(i)                                     in the case of
Loans other than Swingline Loans, (A) notice thereof must be received by 11:00
a.m. by the Administrative Agent at least (1) three (3) Business Days prior to
the date of prepayment, in the case of Eurocurrency Rate Loans denominated in
Dollars, (2) four (4) Business Days prior to the date of prepayment, in the
case of Eurocurrency Rate Loans denominated in Alternative Currencies (other
than Special Notice Currencies), (3) five (5) Business Days prior to the date
of prepayment, in the case of Eurocurrency Rate Loans denominated in Special
Notice Currencies and (4) on the date of prepayment in the case of Base Rate
Loans, and (B) any such prepayment shall be a minimum principal amount of $5
million and integral multiples of $1 million in excess thereof, in the case of
Eurocurrency Rate Loans and $500,000 and integral multiples of $100,000 in excess
thereof, in the case of Base Rate Loans, or, in each case, the entire remaining
principal amount thereof, if less; and

 

(ii)                                  in the case of
Swingline Loans, (A) notice thereof must be received by the Swingline Lender by
1:00 p.m. on the date of prepayment (with a copy to the Administrative Agent),
and (B) any such prepayment shall be in the same minimum principal amounts as
for advances thereof (or any lesser amount that may be acceptable to the
Swingline Lender).

 

35

 

Each such notice of
voluntary prepayment hereunder shall be irrevocable and shall specify the date
and amount of prepayment and the Loans and Types of Loans that are being
prepaid.  The Administrative Agent will
give prompt notice to the applicable Lenders of any prepayment on the Loans and
the Lender’s interest therein. 
Prepayments of Eurocurrency Rate Loans hereunder shall be accompanied by
accrued interest thereon and breakage or other amounts due, if any, under Section
3.05.

 

(b)                                 Mandatory
Prepayments.  If at any time
(A) the Outstanding Amount of Revolving Obligations shall exceed the
Aggregate Revolving Committed Amount, (B) the Outstanding Amount of L/C
Obligations shall exceed the L/C Sublimit or (C) the Outstanding Amount of
Swingline Loans shall exceed the Swingline Sublimit, then in any such case
immediate prepayment will be made on the Revolving Loans or Swingline Loans or
cash collateral provided in respect of the Letter of Credit Obligations, as
appropriate, in an amount equal to the difference.

 

(c)                                  Application.  Within each Loan, prepayments will be applied
first to Base Rate Loans and then to Eurocurrency Rate Loans in direct order of
Interest Period maturities.  Voluntary
prepayments shall be applied as specified by the Borrower, and voluntary
prepayments on the Revolving Obligations will be paid by the Administrative
Agent to the Lenders ratably in accordance with their respective interests
therein.

 

2.07                        Termination or Reduction of Commitments.

 

The Commitments hereunder
may be permanently reduced in whole or in part without penalty by notice from
the Borrower to the Administrative Agent; provided that (i) any such
notice thereof must be received by 11:00 a.m. at least five (5) Business Days
prior to the date of reduction or termination and any such prepayment shall be
in a minimum principal amount of $5 million and integral multiples of
$1 million in excess thereof; and (ii) the Commitments may not be reduced
to an amount less than the Revolving Obligations then outstanding thereunder.  The Administrative Agent will give prompt
notice to the Lenders of any such reduction in Commitments. Any reduction of
Commitments shall be applied ratably to the commitment of each Lender according
to its commitment percentage thereof. 
All commitment or other fees accrued with respect thereto through the
effective date of any termination of Commitments shall be paid on the effective
date of such termination.

 

2.08                        Interest.

 

(a)                                  Subject
to the provisions of subsection (b) below, (i) each
Eurocurrency Rate Loan shall bear interest on the outstanding principal amount
thereof for each Interest Period at a rate per annum equal to the Eurocurrency
Rate for such Interest Period plus the Applicable Percentage plus,
for any Interest Period with respect to any Eurocurrency Rate Loan advanced by
a Lender required to comply with the relevant requirements of the Bank of
England and the Financial Services Authority of the United Kingdom, the
Mandatory Cost Rate for such Interest Period; (ii) each Loan that is a
Base Rate Loan shall bear interest on the outstanding principal amount thereof
from the applicable borrowing date at a rate per annum equal to the Base Rate plus
the Applicable Percentage; and (iii) each Swingline Loan shall bear
interest on the outstanding principal amount thereof from the applicable
borrowing date at a rate per annum equal to the Base Rate plus the
Applicable Percentage.

 

(b)                                 (i)                                     If
any amount of principal of any Loan is not paid when due (without regard to any
applicable grace periods), 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 Law.

 

36

 

(ii)                                  If any amount (other
than principal of any Loan) payable by the Borrower under any Credit Document
is not paid when due (without regard to any applicable grace periods), whether
at stated maturity, by acceleration or otherwise, then upon the request of the
Required Lenders, 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 Law.

 

(iii)                               Upon the request of the
Required Lenders, while any Event of Default exists, the Borrower shall at the
request of the Required Lenders, pay interest on the principal amount of all
Outstanding Obligations hereunder at a fluctuating interest rate per annum at
all times equal to the Default Rate to the fullest extent permitted by
applicable Law.

 

(iv)                              Accrued and unpaid
interest on past due amounts (including interest on past due interest) shall be
due and payable upon demand.

 

(c)                                  Interest
on each Loan shall be due and payable in arrears on each Interest Payment Date
applicable thereto and at such other times as may be specified herein.  Interest hereunder shall be due and payable
in accordance with the terms hereof before and after judgment, and before and
after the commencement of any proceeding under any Debtor Relief Law.

 

2.09                        Fees.

 

(a)                                  Facility
Fee.  The Borrower shall pay to the
Administrative Agent for the account of each Lender in accordance with its
Revolving Commitment Percentage, a facility fee equal to the Applicable
Percentage of the actual daily amount of the Aggregate Revolving Commitments
(or, if the Aggregate Revolving Commitments have terminated, on the Outstanding
Amount of all Revolving Obligations), regardless of usage.  The facility fee shall accrue at all times
during the Commitment Period (and thereafter so long as any Revolving
Obligations remain outstanding), including at any time during which one or more
of the conditions in Article IV is not met, and shall be due and
payable quarterly in arrears on the first Business Day after the end of each
March, June, September and December, commencing with the first such date to
occur after the Closing Date, and on the Revolving Termination Date (and, if
applicable, thereafter on demand).  The
Facility Fee shall be calculated quarterly in arrears, and if there is any
change in the Applicable Percentage during any quarter, the actual daily amount
shall be computed and multiplied by the Applicable Percentage separately for
each period during such quarter that such Applicable Percentage was in effect.

 

(b)                                 Utilization
Fee.  The Borrower shall pay to the
Administrative Agent for the account of each Lender in accordance with its
Revolving Commitment Percentage, a utilization fee (the “Utilization Fee”)
equal to the Applicable Percentage of the Revolving Obligations on each day
that the Revolving Obligations (excluding Swingline Loans) exceed 50% of the
actual daily amount of the Aggregate Revolving Commitments then in effect (or
if terminated, in effect immediately prior thereto).  The Utilization Fee shall be due and payable
quarterly in arrears on the first Business Day after the end of each March,
June, September and December, commencing with the first such date to occur
after the Closing Date, and on the Revolving Termination Date.  The Utilization Fee shall be calculated
quarterly in arrears, and if there is any change in the Applicable Percentage
during any quarter, the actual daily amount shall be computed and multiplied by
the Applicable Percentage separately for each period during such quarter that
such Applicable Percentage was in effect.

 

37

 

(c)                                  Letter
of Credit Fees.

 

(i)                                     Commercial and
Standby Letter of Credit Fees.  The
Borrower shall pay to the Administrative Agent for the account of each Lender
in accordance with its Revolving Commitment Percentage (A) a Letter of
Credit fee for each commercial Letter of Credit equal to the Applicable
Percentage multiplied by the daily maximum amount available to be drawn
under such Letter of Credit (whether or not such maximum amount is then in
effect under such Letter of Credit), and (B)  a
Letter of Credit fee for each standby Letter of Credit equal to the Applicable
Percentage multiplied by the daily maximum amount available to be drawn
under such Letter of Credit (whether or not such maximum amount is then in
effect under such Letter of Credit) (collectively, the “Letter of Credit
Fees”).  The Letter of Credit Fees
shall be computed on a quarterly basis in arrears, and shall be due and payable
on the first Business Day after the end of each March, June, September and
December, commencing with the first such date to occur after the issuance of
such Letter of Credit, on the L/C Expiration Date and thereafter on demand.  If there is any change in the Applicable
Percentage during any quarter, the daily maximum amount of each standby Letter
of Credit shall be computed and multiplied by the Applicable Percentage
separately for each period during such quarter that such Applicable Percentage
was in effect.

 

(ii)                                  Fronting Fee and
Documentary and Processing Charges Payable to L/C Issuer.  The Borrower shall pay directly to the L/C
Issuer for its own account a fronting fee with respect to each standby and
commercial Letter of Credit in the amounts and at the times specified in the
Fee Letter.  In addition, the Borrower
shall pay directly to the L/C Issuer for its own account the customary
issuance, presentation, amendment and other processing fees, and other standard
costs and charges, of the L/C Issuer relating to letters of credit as from time
to time in effect.  Such customary fees
and standard costs and charges are due and payable on demand and are
nonrefundable.

 

(d)                                 Other
Fees.

 

(i)                                     The Borrower shall
pay to the Arranger and the Administrative Agent for their own respective
accounts fees in the amounts and at the times specified in the Fee Letter.  Such fees shall be fully earned when paid and
shall not be refundable for any reason whatsoever.

 

(ii)                                  The Borrower shall
pay to the Lenders such fees as shall have been separately agreed upon in
writing in the amounts and at the times so specified.  Such fees shall be fully earned when paid and
shall not be refundable for any reason whatsoever.

 

2.10                        Computation of Interest and Fees.

 

All computations of
interest for Base Rate Loans when the Base Rate is determined by Bank of
America’s prime rate shall be made on the basis of a year of 365 or 366 days,
as the case may be, and actual days elapsed. 
All other computations of fees and interest shall be made on the basis
of a 360-day year and actual days elapsed (which results in more fees or
interest, as applicable, being paid than if computed on the basis of a 365-day
year) or, in the case of interest in respect of Loans denominated in Alternative
Currencies as to which market practice differs from the foregoing, in
accordance with such market practice. 
Interest shall accrue on each Loan for the day on which the Loan is
made, and shall not accrue on a Loan, or any portion thereof, for the day on which
the Loan or such portion is paid, provided that any Loan that is repaid
on the same day on which it is made shall, subject to Section 2.11(a),
bear interest for one day.

 

38

 

2.11                        Payments Generally.

 

(a)                                  All
payments to be made by the Borrower shall be made without condition or
deduction for any counterclaim, defense, recoupment or setoff.  Except as otherwise expressly provided herein
and except with respect to principal of and interest on Loans denominated in an
Alternative Currency, all payments by the Borrower hereunder shall be made to
the Administrative Agent, for the account of the respective Lenders to which
such payment is owed, at the Administrative Agent’s Office in Dollars and in
Same Day Funds not later than 2:00 p.m. on the date specified herein.  Except as otherwise expressly provided
herein, all payments by the Borrower hereunder with respect to principal of and
interest on Loans denominated in an Alternative Currency shall be made to the Administrative
Agent, for the account of the respective Lenders to which such payment is owed,
at the Administrative Agent’s Office in such Alternative Currency and in Same
Day Funds not later than the Applicable Time specified by the Administrative
Agent on the dates specified herein.  The
Administrative Agent will promptly distribute to each Lender its Pro Rata Share
(or other applicable share as provided herein) of such payment in like funds as
received by wire transfer to such Lender’s Lending Office.  All payments received by the Administrative
Agent (i) after 2:00 p.m., in the case of payments in Dollars, or (ii) after
the Applicable Time specified by the Administrative Agent in the case of
payments in an Alternative Currency, shall in each case be deemed received on
the next succeeding Business Day and any applicable interest or fee shall
continue to accrue.

 

(b)                                 Subject
to the definition of “Interest Period”, if any payment to be made by the
Borrower shall come due on a day other than a Business Day, payment shall be
made on the next following Business Day, and such extension of time shall be
reflected in computing interest or fees, as the case may be.

 

(c)                                  Unless
the Borrower or any Lender has notified the Administrative Agent, prior to the
date any payment is required to be made by it to the Administrative Agent
hereunder, that the Borrower or such Lender, as the case may be, will not make
such payment, the Administrative Agent may assume that the Borrower or such
Lender, as the case may be, has timely made such payment and may (but shall not
be so required to), in reliance thereon, make available a corresponding amount
to the Person entitled thereto.  If and
to the extent that such payment was not in fact made to the Administrative
Agent in Same Day Funds, then:

 

(i)                                     if the Borrower
failed to make such payment, each Lender shall forthwith on demand repay to the
Administrative Agent the portion of such assumed payment that was made
available to such Lender in Same Day Funds, together with interest thereon in
respect of each day from and including the date such amount was made available
by the Administrative Agent to such Lender to the date such amount is repaid to
the Administrative Agent in Same Day Funds at the applicable Overnight Rate
from time to time in effect; and

 

(ii)                                  if any Lender failed
to make such payment, such Lender shall forthwith on demand pay to the
Administrative Agent the amount thereof in Same Day Funds, together with
interest thereon for the period from the date such amount was made available by
the Administrative Agent to the Borrower to the date such amount is recovered
by the Administrative Agent (the “Compensation Period”) at a rate per
annum equal to the applicable Overnight Rate from time to time in effect.  If such Lender pays such amount to the
Administrative Agent, then such amount shall constitute such Lender’s Loan
included in the applicable Borrowing.  If
such Lender does not pay such amount forthwith upon the Administrative Agent’s
demand therefore, the Administrative Agent may make a demand therefore upon the
Borrower, and the Borrower shall pay such amount to the Administrative Agent,
together with interest thereon for the

 

39

 

Compensation Period at a
rate per annum equal to the rate of interest applicable to the applicable
Borrowing.  Nothing herein shall be
deemed to relieve any Lender from its obligation to fulfill its commitment or
to prejudice any rights that the Administrative Agent or the Borrower may have
against any Lender as a result of any default by such Lender hereunder.

 

A notice of the
Administrative Agent to any Lender or the Borrower with respect to any amount
owing under this subsection (c) shall be conclusive, absent
manifest error.

 

(d)                                 If
any Lender makes available to the Administrative Agent funds for any Loan to be
made by such Lender as provided in the foregoing provisions of this Article II,
and such funds are not made available to the Borrower by the Administrative
Agent because the conditions to the applicable Credit Extension set forth in Article IV
are not satisfied or waived in accordance with the terms hereof, the
Administrative Agent shall return such funds (in like funds as received from
such Lender) to such Lender, without interest.

 

(e)                                  The
obligations of the Lenders hereunder to make Loans and to fund participations
in Letters of Credit and Swingline Loans are several and not joint.  The failure of any Lender to make any Loan or
to fund any such participation on any date required hereunder shall not relieve
any other Lender of its corresponding obligation to do so on such date, and no
Lender shall be responsible for the failure of any other Lender to so make its
Loan or purchase its participation.

 

(f)                                    Nothing
herein shall be deemed to obligate any Lender to obtain the funds for any Loan
in any particular place or manner or to constitute a representation by any
Lender that it has obtained or will obtain the funds for any Loan in any
particular place or manner.

 

(g)                                 If
at any time insufficient funds are received by or are available to the
Administrative Agent to pay fully all amounts of principal, L/C Borrowings,
interest and fees then due hereunder, such funds shall be applied (i) first,
toward costs and expenses (including Attorney Costs and amounts payable under Article III)
incurred by the Administrative Agent and each Lender, (ii) second,
toward repayment of interest and fees then due hereunder, ratably among the
parties entitled thereto in accordance with the amounts of interest and fees
then due to such parties, and (iii) third, toward repayment of
principal and L/C Borrowings then due hereunder, ratably among the parties
entitled thereto in accordance with the amounts of principal and L/C Borrowings
then due to such parties.

 

(h)                                 If
funds are not available to the Borrower to pay any Obligation in full when due,
the Borrower shall cause its Subsidiaries, through dividend, other equity
distribution, equity repurchase/redemption, repayment/repurchase of Funded Debt
or otherwise, to provide the Borrower with cash sufficient to pay such
Obligation in full when due, notwithstanding any Contractual Obligations
limiting the ability of the Subsidiaries to make Restricted Payments.

 

2.12                        Sharing of Payments.

 

If, other than as
expressly provided elsewhere herein, any Lender shall obtain on account of the
Loans made by it, or the participations in L/C Obligations or in Swingline
Loans held by it (excluding any amounts applied by the Swingline Lender to
outstanding Swingline Loans), any payment (whether voluntary, involuntary,
through the exercise of any right of set-off, or otherwise) in excess of its
ratable share (or other share contemplated hereunder) thereof, such Lender
shall immediately (a) notify the Administrative Agent of such fact, and
(b) purchase from the other Lenders such participations in the Loans made
by them and/or such subparticipations in the participations in L/C Obligations
or Swingline Loans held by them, as the case may be, as shall be necessary to
cause such purchasing Lender to share

 

40

 

the excess payment in
respect of such Loans or such participations, as the case may be, pro rata with
each of them; provided, however, that if all or any portion of such
excess payment is thereafter recovered from the purchasing Lender under any of
the circumstances described in Section 10.05 (including pursuant to any
settlement entered into by the purchasing Lender in its discretion), such
purchase shall to that extent be rescinded and each other Lender shall repay to
the purchasing Lender the purchase price paid therefore, together with an
amount equal to such paying Lender’s ratable share (according to the proportion
of (i) the amount of such paying Lender’s required repayment to
(ii) the total amount so recovered from the purchasing Lender) of any
interest or other amount paid or payable by the purchasing Lender in respect of
the total amount so recovered, without further interest thereon.  The Borrower agrees that any Lender so
purchasing a participation from another Lender may, to the fullest extent
permitted by law, exercise all its rights of payment (including the right of
set-off, but subject to Section 10.08) with respect to such
participation as fully as if such Lender were the direct creditor of the
Borrower in the amount of such participation. 
The Administrative Agent will keep records (which shall be conclusive
and binding in the absence of manifest error) of participations purchased under
this Section 2.12 and will in each case notify the Lenders
following any such purchases or repayments. 
Each Lender that purchases a participation pursuant to this Section
2.12 shall from and after such purchase have the right to give all
notices, requests, demands, directions and other communications under this
Credit Agreement with respect to the portion of the Obligations purchased to
the same extent as though the purchasing Lender were the original owner of the
Obligations purchased.

 

2.13                        Evidence of Debt.

 

(a)                                  The
Credit Extensions made by each Lender shall be evidenced by one or more
accounts or records maintained by such Lender and by the Administrative Agent
in the ordinary course of business.  The
accounts or records maintained by the Administrative Agent and each Lender
shall be conclusive absent manifest error of the amount of the Credit
Extensions made by the Lenders to the Borrower and the interest and payments
thereon.  Any failure to so record or any
error in doing so shall not, however, limit or otherwise affect the obligation
of the Borrower hereunder to pay any amount owing with respect to the
Obligations.  In the event of any
conflict between the accounts and records maintained by any Lender and the
accounts and records of the Administrative Agent in respect of such matters,
the accounts and records of the Administrative Agent shall control in the
absence of manifest error.  Upon the
request of any Lender made through the Administrative Agent,  the Borrower shall execute and deliver to the
Administrative Agent a Note for such Lender, which shall evidence such Lender’s
Loans in addition to such accounts or records. 
Each Lender may attach schedules to its Note and endorse thereon the
date, Type (if applicable), amount and maturity of its Loans and payments with
respect thereto.

 

(b)                                 In
addition to the accounts and records referred to in subsection (a), each
Lender and the Administrative Agent shall maintain in accordance with its usual
practice accounts or records evidencing the purchases and sales by such Lender
of participations in Letters of Credit and Swingline Loans.  In the event of any conflict between the
accounts and records maintained by the Administrative Agent and the accounts
and records of any Lender in respect of such matters, the accounts and records
of the Administrative Agent shall control in the absence of manifest error.

 

41

 

ARTICLE III

TAXES, YIELD PROTECTION AND ILLEGALITY

 

3.01                        Taxes.

 

(a)                                  Payments
Free of Taxes.  Any and all payments
by or on account of any obligation of the Borrower hereunder or under any other
Credit Document shall be made free and clear of and without reduction or
withholding for any Indemnified Taxes or Other Taxes, provided that if
the Borrower shall be required by applicable law to deduct any Indemnified
Taxes (including any Other Taxes) from such payments, then (i) the sum payable
shall be increased as necessary so that after making all required deductions
(including deductions applicable to additional sums payable under this Section)
the Administrative Agent, Lender or L/C Issuer, as the case may be, receives an
amount equal to the sum it would have received had no such deductions been
made, (ii) the Borrower shall make such deductions and (iii) the Borrower shall
timely pay the full amount deducted to the relevant Governmental Authority in
accordance with applicable law.

 

(b)                                 Payment
of Other Taxes by the Borrower. 
Without limiting the provisions of subsection (a) above, the Borrower
shall timely pay any Other Taxes to the relevant Governmental Authority in
accordance with applicable law.

 

(c)                                  Indemnification
by the Borrower.  The Borrower shall
indemnify the Administrative Agent, each Lender and the L/C Issuer, within 10
days after demand therefor, for the full amount of any Indemnified Taxes or
Other Taxes (including Indemnified Taxes or Other Taxes imposed or asserted on
or attributable to amounts payable under this Section) paid by the
Administrative Agent, such Lender or the L/C Issuer, as the case may be, and
any penalties, interest and reasonable expenses arising therefrom or with
respect thereto, whether or not such Indemnified Taxes or Other Taxes were
correctly or legally imposed or asserted by the relevant Governmental
Authority.  A certificate as to the
amount of such payment or liability delivered to the Borrower by a Lender or
the L/C Issuer (with a copy to the Administrative Agent), or by the
Administrative Agent on its own behalf or on behalf of a Lender or the L/C
Issuer, shall be conclusive absent manifest error.

 

(d)                                 Evidence
of Payments.  As soon as practicable
after any payment of Indemnified Taxes or Other Taxes by the Borrower to a
Governmental Authority, the Borrower shall deliver to the Administrative Agent
the original or a certified copy of a receipt issued by such Governmental Authority
evidencing such payment, a copy of the return reporting such payment or other
evidence of such payment reasonably satisfactory to the Administrative Agent.

 

(e)                                  Status
of Lenders.  Any Foreign Lender shall
deliver to the Borrower and the
Administrative Agent (in such number of copies as shall be requested by the
recipient) on or prior to the date on which such Foreign Lender becomes a
Lender under this Credit Agreement (and from time to time thereafter upon the
request of the Borrower or the Administrative Agent, unless such Foreign
Lender is unable to provide such form due to a change in law arising
subsequent to the time at which such Foreign Lender became a Lender
hereunder), whichever of the following is applicable and which demonstrates
that such Foreign Lender is entitled to complete exemption from any United
States withholding tax with respect to payments under this Credit Agreement or
any other Credit Document:

 

(i)                                     duly completed copies of Internal Revenue
Service Form W-8BEN claiming eligibility for benefits of an income tax treaty
to which the United States is a party,

 

42

 

(ii)                                  duly
completed copies of Internal Revenue Service Form W-8ECI,

 

(iii)                               in
the case of a Foreign Lender claiming the benefits of the exemption for
portfolio interest under section 881(c) of the Code, (x) a certificate to
the effect that such Foreign Lender is not (A) a “bank” within the meaning of
section 881(c)(3)(A) of the Code, (B) a “10 percent shareholder” of the Borrower
within the meaning of section 881(c)(3)(B) of the Code, or (C) a “controlled
foreign corporation” described in section 881(c)(3)(C) of the Code and (y) duly
completed copies of Internal Revenue Service Form W-8BEN, or

 

(iv)                              any
other form prescribed by applicable law as a basis for claiming exemption from
or a reduction in United States Federal withholding tax duly completed together
with such supplementary documentation as may be prescribed by applicable law to
permit the Borrower to determine the withholding or deduction required to be
made.

 

Any Lender that is not a
Foreign Lender shall deliver to the Borrower and the Administrative Agent (in
such number of copies as shall be requested by the recipient) on or prior to
the date on which such Lender becomes a Lender under this Credit Agreement (and
from time to time thereafter upon the request of the Borrower or the
Administrative Agent), duly completed copies of Internal Revenue Service Form
W-9.

 

(f)                                    Treatment
of Certain Refunds.  If the
Administrative Agent, any Lender or the L/C Issuer determines, in its sole
discretion, that it has received a refund of any Taxes or Other Taxes as to
which it has been indemnified by the Borrower or with respect to which the
Borrower has paid additional amounts pursuant to this Section, it shall pay to
the Borrower an amount equal to such refund (but only to the extent of
indemnity payments made, or additional amounts paid, by the Borrower under this
Section with respect to the Taxes or Other Taxes giving rise to such refund),
net of all out-of-pocket expenses of the Administrative Agent, such Lender or
the L/C Issuer, as the case may be, and without interest (other than any
interest paid by the relevant Governmental Authority with respect to such
refund), provided that the Borrower, upon the request of the
Administrative Agent, such Lender or the L/C Issuer, agrees to repay the amount
paid over to the Borrower (plus any penalties, interest or other charges
imposed by the relevant Governmental Authority) to the Administrative Agent,
such Lender or the L/C Issuer in the event the Administrative Agent, such
Lender or the L/C Issuer is required to repay such refund to such Governmental
Authority.  This subsection shall not be
construed to require the Administrative Agent, any Lender or the L/C Issuer to
make available its tax returns (or any other information relating to its taxes
that it deems confidential) to the Borrower or any other Person.

 

3.02                        Illegality.

 

If any Lender determines
that any Law has made it unlawful, or that any Governmental Authority has
asserted that it is unlawful, for any Lender or its applicable Lending Office
to make, maintain or fund Eurocurrency Rate Loans in the Applicable Currency,
or to determine or charge interest rates based upon the Eurocurrency Rate in
the Applicable Currency, or any Governmental Authority has imposed material
restrictions on the authority of such Lender to purchase or sell, or to take
deposits of, any Applicable Currency in the applicable interbank market, then,
on notice thereof by such Lender to the Borrower through the Administrative
Agent, any obligation of such Lender to make or continue Eurocurrency Rate
Loans in the Applicable Currency or to convert Base Rate Loans to Eurocurrency
Rate Loans in the Applicable Currency shall be suspended until such Lender
notifies the Administrative Agent and the Borrower that the circumstances
giving rise to such determination no longer exist.  Upon receipt of such notice, the Borrower
shall, upon demand from such Lender (with a copy to the Administrative Agent),
prepay or, if applicable, convert all such Eurocurrency Rate Loans of such
Lender to Dollar-denominated Base Rate Loans, either on the last day of the
Interest Period therefore, if such Lender may lawfully

 

43

 

continue to maintain such
Eurocurrency Rate Loans to such day, or immediately, if such Lender may not
lawfully continue to maintain such Eurocurrency Rate Loans.  Upon any such prepayment or conversion, the
Borrower shall also pay accrued interest on the amount so prepaid or
converted.  Each Lender agrees to
designate a different Lending Office if such designation will avoid the need
for such notice and will not, in the good faith judgment of such Lender,
otherwise be materially disadvantageous to such Lender.

 

3.03                        Inability to Determine Rates.

 

(a)                                  If
the Required Lenders determine that for any reason (i) deposits in the
Applicable Currency are not being offered to banks in the applicable offshore
interbank market for such currency for the applicable amount and Interest
Period, (ii) adequate and reasonable means do not exist for determining the
Eurocurrency Base Rate for any requested Interest Period or (iii) that the
Eurocurrency Rate for any requested Interest Period does not adequately and
fairly reflect the cost to such Lenders of funding such Loan, the
Administrative Agent will promptly so notify the Borrower and each Lender.  Thereafter, the obligation of the Lenders to
make or maintain Eurocurrency Rate Loans in the Applicable Currencies shall be
suspended until the Administrative Agent (upon the instruction of the Required
Lenders) revokes such notice.  Upon
receipt of such notice, the Borrower may revoke any pending request for a
Borrowing of, conversion to or continuation of Eurocurrency Rate Loans or,
failing that, will be deemed to have converted such request into a request for
a Borrowing of Loans that are Dollar-denominated Base Rate Loans in the Dollar
Equivalent of the amount specified therein.

 

(b)                                 If
the Mandatory Cost Reference Lender’s Commitment shall terminate, or for any
reason whatsoever the Mandatory Cost Reference Lender shall cease to be a
Lender hereunder, the Mandatory Cost Reference Lender shall thereupon cease to
be the Mandatory Cost Reference Lender and, when necessary, the Mandatory Cost
Rate shall be determined on the basis of the rates as determined by the
Administrative Agent in accordance with Schedule 3.03.

 

3.04                        Increased Cost; Capital Adequacy;
Reserves on Eurodollar Rate Loans.

 

(a)                                  If
any Lender determines that as a result of the introduction of or any change in
or in the interpretation of any Law, or such Lender’s compliance therewith,
there shall be any increase in the cost to such Lender of agreeing to make or
making, funding or maintaining Eurocurrency Rate Loans or (as the case may be)
issuing or participating in Letters of Credit, or a reduction in the amount
received or receivable by such Lender in connection with any of the foregoing
(excluding for purposes of this subsection (a) any such
increased costs or reduction in amount resulting from (i) taxes (including
Taxes and Other Taxes), all of which are addressed in Section 3.01 and
(ii) reserve requirements contemplated by Section 3.04(c)),
then from time to time upon demand of such Lender (with a copy of such demand
to the Administrative Agent), the Borrower shall pay to such Lender such
additional amounts as will compensate such Lender for such increased cost or
reduction.

 

(b)                                 If
any Lender determines that the introduction of any Law regarding capital
adequacy or any change therein or in the interpretation thereof, or compliance
by such Lender (or its Lending Office) therewith, has the effect of reducing
the rate of return on the capital of such Lender or any corporation controlling
such Lender as a consequence of such Lender’s obligations hereunder (taking
into consideration its policies with respect to capital adequacy and such
Lender’s desired return on capital), then from time to time upon demand of such
Lender (with a copy of such demand to the Administrative Agent), the Borrower
shall pay to such Lender such additional amounts as will compensate such Lender
for such reduction, to the extent that such Lender is unable to avoid or
materially diminish or mitigate the need for payment of such additional amounts
through the use of commercially reasonable effects.

 

44

 

(c)                                  The
Borrower shall pay to each Lender, as long as such Lender shall be required to
maintain reserves with respect to liabilities or assets consisting of or
including eurocurrency funds or deposits (currently known as “eurocurrency
liabilities”), additional interest on the unpaid principal amount of each
Eurocurrency Rate Loan equal to the actual costs of such reserves allocated to
such Loan by such Lender (as determined by such Lender in good faith, which
determination shall be conclusive), which shall be due and payable on each date
on which interest is payable on such Loan, provided the Borrower shall
have received at least ten days’ prior notice (with a copy to the
Administrative Agent) of such additional interest from such Lender.  If a Lender fails to give notice fifteen days
prior to the relevant Interest Payment Date, such additional interest shall be
due and payable ten days from receipt of such notice.

 

3.05                        Compensation for Losses.

 

Upon demand of any Lender
(with a copy to the Administrative Agent) from time to time, the Borrower shall
promptly compensate such Lender for and hold such Lender harmless from any
loss, cost or expense incurred by it as a result of:

 

(a)                                  any
continuation, conversion, payment or prepayment of any Loan other than a Base
Rate Loan on a day other than the last day of the Interest Period for such Loan
(whether voluntary, mandatory, automatic, by reason of acceleration, or
otherwise);

 

(b)                                 any
failure by the Borrower (for a reason other than the failure of such Lender to
make a Loan) to prepay, borrow, continue or convert any Loan other than a Base
Rate Loan on the date or in the amount notified by the Borrower;

 

(c)                                  any
failure by the Borrower to make payment of any Loan or reimbursement of any
drawing under any Letter of Credit (or interest due thereon) denominated in an
Alternative Currency on its scheduled due date or any payment thereof in a
different currency; or

 

(d)                                 any
assignment of a Eurocurrency Rate Loan on a day other than the last day of the
Interest Period therefore as a result of a request by the Borrower pursuant to Section
10.13;

 

including any loss of
anticipated profits, any foreign exchange loss and any loss or expense arising
from the liquidation or reemployment of funds obtained by it to maintain such
Loan or from fees payable to terminate the deposits from which such funds were
obtained.  The Borrower shall also pay any
customary administrative fees charged by such Lender in connection with the
foregoing.

 

For purposes of
calculating amounts payable by the Borrower to the Lenders under this Section 3.05,
each Lender shall be deemed to have funded each Eurocurrency Rate Loan made by
it at the Eurocurrency Base Rate used in determining the Eurocurrency Rate  for such Loan by a matching deposit or other borrowing in
the applicable offshore interbank market for the Applicable Currency for a
comparable amount and for a comparable period, whether or not such Eurocurrency
Rate Loan was in fact so funded.

 

3.06                        Matters Applicable to All Requests
for Compensation.

 

                                                A
certificate of the Administrative Agent or any Lender claiming compensation
under this Article III and setting forth the additional amount or
amounts to be paid to it hereunder shall be conclusive in the absence of
manifest error.  In determining such
amount, the Administrative Agent or

 

45

 

such Lender may use any
reasonable averaging and attribution methods. 
Borrower shall not have any obligation to pay any additional amounts
owing under this Article III for any period which is more than one
hundred twenty (120) days prior to the date upon which the request for payment
therefore is delivered to Borrower.  Upon
any Lender making a claim for compensation under Sections 3.01 or 3.04,
Borrower may remove and replace such Lender in accordance with Section 10.13
hereof.

 

3.07                        Survival Losses.

 

All of the Borrower’s
obligations under this Article III shall survive termination of the
Aggregate Revolving Commitments and repayment of all other Obligations
hereunder.

 

ARTICLE IV

CONDITIONS PRECEDENT TO CREDIT EXTENSIONS

 

4.01                        Conditions to Initial Credit
Extensions.

 

The obligation of each
Lender to make its initial Credit Extension hereunder is subject to
satisfaction of the following conditions precedent:

 

(a)                                  Executed
Credit Documents.  The Administrative
Agent’s receipt of counterparts of this Credit Agreement  and
the Notes requested by the Lenders, in each case, dated as of the Closing Date,
duly executed by a Responsible Officer of the Borrower and by each Lender party
thereto, and in form and substance satisfactory to the Administrative Agent and
each of the Lenders.

 

(b)                                 Organization
Documents, Etc.  The Administrative
Agent’s receipt of a duly executed certificate of a Responsible Officer of the
Borrower, in form and substance satisfactory to the Administrative Agent,
attaching each of the following documents and certifying that each is true,
correct and complete and in full force and effect as of the Closing Date:

 

(i)                                     Charter
Documents.  Copies of its articles of
organization or formation, certified to be true, correct and complete as of a
recent date by the appropriate Governmental Authority of the jurisdiction of
its organization or formation;

 

(ii)                                  Bylaws.  Copies of its bylaws;

 

(iii)                               Resolutions.  Copies of its resolutions approving and
adopting the Credit Documents to which it is party, the transactions
contemplated therein, and authorizing the execution and delivery thereof;

 

(iv)                              Incumbency.  Incumbency certificates identifying the
Responsible Officers of the Borrower that are authorized to execute Credit
Documents and to act on the Borrower’s behalf in connection with the Credit
Documents; and

 

(v)                                 Good Standing
Certificates.  Certificates of good
standing or the equivalent from its jurisdiction of organization or formation
and from each other jurisdiction where failure to be in good standing would
reasonably be expected to have a Material Adverse Effect, in each case
certified as of a recent date by the appropriate Governmental Authority.

 

46

 

(c)                                  Opinions
of Counsel.  The Administrative
Agent’s receipt of duly executed favorable opinions of counsel to the Borrower,
dated as of the Closing Date, in form and substance satisfactory to the
Administrative Agent and the Lenders.

 

(d)                                 Financial
Statements.  The Administrative
Agent’s receipt of each of the following on or before the Closing Date:

 

(i)                                     The audited
consolidated balance sheet of the Consolidated Group for the fiscal year ended
December 31, 2003, together with related consolidated statements of operations
and retained earnings and of cash flows for such fiscal year (including the
notes thereto), prepared in accordance with GAAP; and

 

(ii)                                  The unaudited
consolidated financial statements of the Consolidated Group for the fiscal
quarter ended March 31, 2004, together with related consolidated statements of
operations and retained earnings and of cash flows for such fiscal quarter,
prepared in accordance with GAAP.

 

(e)                                  Officer
Certificates.  The Administrative
Agent’s receipt of a certificate or certificates of a Responsible Officer of
the Borrower, dated as of the Closing Date, in form and substance satisfactory
to the Administrative Agent, certifying each of the following:

 

(i)                                     Consents.  No consents, licenses or approvals are
required in connection with the execution, delivery and performance by the
Borrower of the Credit Documents, other than (A) as are in full force and
effect and, to the extent requested by the Administrative Agent, are attached
thereto or (B) consents, licenses or approvals for which failure to be in full
force and effect would not reasonably be expected to have a Material Adverse
Effect;

 

(ii)                                  Material Adverse
Effect.  There has not occurred a
material adverse change since December 31, 2003 in the financial condition,
operations or properties of the Consolidated Group taken as a whole or the
ability of the Borrower to perform in any material respect under this Credit
Agreement or any of the other Credit Documents;

 

(iii)                               Financial Statements.  The annual and quarterly financial statements
filed by the Parent with the SEC (A) were prepared in accordance with GAAP
consistently applied throughout the period covered thereby, except as otherwise
expressly noted therein, (B) fairly present the financial condition of the
Consolidated Group as of the date thereof and the results of operations for the
period covered thereby in accordance with GAAP consistently applied throughout
the period covered thereby, except as otherwise expressly noted therein (and
with respect to such quarterly statements, subject to the absence of footnotes
and to normal year-end accounting adjustments);

 

(iv)                              Financial Covenant
Calculations.  The calculation of the
financial covenants set forth in Section 7.05 as of the end of the most
recent fiscal quarter of the Borrower ending prior to the Closing Date; and

 

(v)                                 Debt Ratings.  The current Debt Ratings.

 

(f)                                    Other.  The Administrative Agent’s receipt of such
other assurances, certificates, documents, consents or opinions dated as of the
Closing Date as the Administrative Agent or the Lenders may reasonably require.

 

47

 

(g)                                 Lenders’
Tax Forms.  The Borrower’s receipt of
the applicable tax form of each Lender demonstrating that (i) it is a domestic
lender exempt from U.S. withholding taxes or (ii) it is a Foreign Lender
entitled to complete exemption from any United States withholding tax with
respect to payments under this Credit Agreement or any other Credit Document as
provided in Section 3.01(e).

 

(h)                                 Fees
and Expenses.  All fees and expenses
(including, unless waived by the Administrative Agent, Attorney Costs) required
to be paid on or before the Closing Date shall have been paid.

 

The Request for Credit
Extension submitted by the Borrower for the initial Credit Extension shall be
deemed to be a representation and warranty by the Borrower that the conditions
specified in Sections 4.02(a) have been satisfied on and as of
the Closing Date.

 

4.02                        Conditions to all Credit Extensions.

 

The obligation of each
Lender to honor any Request for Credit Extension is subject to the following
conditions precedent:

 

(a)                                  The
representations and warranties of the Borrower contained in Article V
shall be true and correct on and as of the date of such Credit Extension,
except to the extent that such representations and warranties specifically
refer to an earlier date.

 

(b)                                 No
Default or Event of Default exists or would result from such proposed Credit
Extension.

 

(c)                                  The
Administrative Agent and, if applicable, the L/C Issuer or the Swingline Lender
shall have received a Request for Credit Extension in accordance with the
requirements hereof.

 

(d)                                 In
the case of a Credit Extension to be denominated in an Alternative Currency,
there shall not have occurred any change in national or international
financial, political or economic conditions or currency exchange rates or
exchange controls which in the reasonable opinion of the Administrative Agent,
the Required Lenders (in the case of any Loans to be denominated in an
Alternative Currency) or the L/C Issuer (in the case of any Letter of Credit to
be denominated in an Alternative Currency) would make it impracticable for such
Credit Extension to be denominated in the relevant Alternative Currency.

 

Each Request for Credit
Extension (including the initial Credit Extension) submitted by the Borrower
shall be deemed to be a representation and warranty by the Borrower that the
conditions specified in Sections 4.02(a) and (b) have
been satisfied on and as of the date of the applicable Credit Extension.

 

48

 

ARTICLE V

REPRESENTATIONS AND WARRANTIES

 

                                                Borrower
represents and warrants to Administrative Agent and Lenders that:

 

5.01                        Corporate Existence.

 

The Borrower is a
corporation duly organized, validly existing and in good standing under the
laws of the State of Delaware.

 

5.02                        Power and Authority.

 

The execution and
delivery by the Borrower of this Credit Agreement and the other Credit
Documents and the performance by the Borrower of its respective obligations
under this Credit Agreement and the other Credit Documents are within the
corporate powers of the Borrower, have been duly authorized by all necessary
corporate action on the part of the Borrower (including without limitation any
necessary shareholder action), have been duly executed and delivered, have
received all third party or governmental licenses, authorizations, consents and
approvals the failure of which to receive would reasonably be expected to have
a Material Adverse Effect, and do not and will not (i) violate any Requirements
of Law which is binding on Borrower or any of its Subsidiaries, except to the
extent that any such violations would not reasonably be expected to have a
Material Adverse Effect, (ii) contravene or conflict with, or result in a
breach of, any provision of the certificate of incorporation, by-laws or other
organizational documents of the Borrower or any of its Subsidiaries or of any
agreement, indenture, instrument or other document which is binding on Borrower
or any of its Subsidiaries, except, in the case of any such agreements, indentures,
instruments or other documents, as would not reasonably be expected to have a
Material Adverse Effect, or (iii) result in, or require, the creation or
imposition of any Lien on any asset Borrower or any of its Subsidiaries, except
to the extent any of the foregoing Liens referenced in this subsection (iii)
are permitted pursuant to the Credit Documents or as would not otherwise
reasonably be expected to have a Material Adverse Effect.

 

5.03                        Enforceability. 

 

This Credit
Agreement and the other Credit Documents executed by the Borrower prior to and
as of such date, constitute the legal, valid and binding obligation of the
Borrower enforceable against Borrower in accordance with their terms, subject
to bankruptcy, insolvency, liquidation, reorganization, fraudulent conveyance
and similar laws affecting creditors’ rights generally, and general principles
of equity.

 

5.04                        Legal Proceedings.

 

Other than as
described in Schedule 5.04 hereto, there are no material actions, suits
or proceedings pending or, to its knowledge, threatened against Borrower in any
court or before any Governmental Authority (nor would any order, judgment or
decree have been issued or proposed to be issued by any Governmental Authority
to set aside, restrain, enjoin or prevent the full performance of any Credit
Document or any transaction contemplated thereby) that (i) question the
validity or enforceability of any Credit Document or any transaction described
in the Credit Documents or (ii) shall have or would reasonably be expected
to have a Material Adverse Effect.

 

49

 

5.05                        No Material Adverse Effect.

 

Since December 31, 2003,
there is no continuing event or circumstance, either individually or in the
aggregate, that has had or would reasonably be expected to have a Material
Adverse Effect.

 

5.06                        Compliance with Law.

 

The Borrower and
its Subsidiaries are in compliance with applicable Requirements of Law, except
to the extent that non-compliance would not, in the aggregate, be reasonably
expected to have a Material Adverse Effect.

 

5.07                        Use of Proceeds.

 

Except as
otherwise contemplated by the Credit Documents, the Borrower shall not use the
proceeds of any Loan for any purpose other than working capital, acquisitions,
dividends, capital expenditures and other lawful corporate purposes.

 

5.08                        Disclosure.

 

All information
other than Projections (defined below) heretofore or contemporaneously herewith
furnished by the Borrower or any of their Subsidiaries to Administrative Agent
or any Lender for purposes of or in connection with this Credit Agreement and
the transactions contemplated hereby is, and all information other than
Projections hereafter furnished by or on behalf of the Borrower or any of its
Subsidiaries to the Administrative Agent or any Lender pursuant hereto or in
connection herewith will be, true and accurate in all material respects on the
date as of which such information is dated or certified, and such information,
taken as a whole, does not and will not omit to state any material fact
necessary to make such information, taken as a whole, not misleading.  All financial projections concerning the
Borrower and its Consolidated Subsidiaries (“Projections) heretofore or
contemporaneously herewith furnished by the Borrower or any of its Consolidated
Subsidiaries to Administrative Agent or any Lender for purposes of or in
connection with this Credit Agreement and the transactions contemplated hereby
is, and all Projections hereafter furnished by or on behalf of the Borrower or
any of its Consolidated Subsidiaries to the Administrative Agent or any Lender
pursuant hereto or in connection herewith will be, prepared in good faith based
upon assumptions Borrower believes are reasonable as of the date the
Projections are prepared.

 

5.09                        Absence of Default.

 

No Default or
Event of Default has occurred and is continuing.

 

5.10                        ERISA Compliance.

 

(a)                                  Each
Plan is in compliance in all material respects with the applicable provisions
of ERISA, the Internal Revenue Code and other federal or state Laws.  Each Plan that is intended to qualify under
Section 401(a) of the Internal Revenue Code has received a favorable
determination letter from the IRS or an application for such a letter is
currently pending before the IRS with respect thereto and, to the best
knowledge of the Borrower, nothing has occurred that would prevent, or cause
the loss of, such qualification.  The
Borrower and each ERISA Affiliate have made all required contributions to each
Plan subject to Section 412 of the Internal Revenue Code, and no
application for a funding waiver or an

 

50

 

extension of any
amortization period pursuant to Section 412 of the Internal Revenue Code
has been made with respect to any Plan.

 

(b)                                 There
are no pending or, to the best knowledge of the Borrower, threatened claims,
actions or lawsuits, or action by any Governmental Authority, with respect to
any Plan that would be reasonably be expected to have a Material Adverse
Effect.  There has been no prohibited transaction
or violation of the fiduciary responsibility rules with respect to any Plan
that has resulted or would reasonably be expected to result in a Material
Adverse Effect.

 

(c)                                  (i) No
ERISA Event has occurred or is reasonably expected to occur; (ii) as of
the Closing Date, in the aggregate, Unfunded Pension Liabilities of the
Consolidated Group do not exceed $75 million; (iii) neither the Borrower
nor any ERISA Affiliate has incurred, or reasonably expects to incur, any
liability under Title IV of ERISA with respect to any Pension Plan (other
than premiums due and not delinquent under Section 4007 of ERISA);
(iv) neither the Borrower nor any ERISA Affiliate has incurred, or
reasonably expects to incur, any liability (and no event has occurred that, with
the giving of notice under Section 4219 of ERISA, would result in such
liability) under Sections 4201 or 4243 of ERISA with respect to a
Multiemployer Plan; and (v) neither the Borrower nor any ERISA Affiliate
has engaged in a transaction that would reasonably be expected to be subject to
Sections 4069 or 4212(c) of ERISA.

 

5.11                        Financial Condition.

 

The consolidated
balance sheet of the Consolidated Group as of December 31, 2003, together with
related consolidated statements of operations and retained earnings and of cash
flows for the year ended December 31, 2003 and the consolidated balance sheet
of the Consolidated Group as of March 31, 2004, together with related
consolidated statements of operations and retained earnings and of cash flows
for the quarter ended March 31, 2004, fairly present in all material respects
the consolidated financial condition of the Parent and its Subsidiaries as at
such dates and the consolidated results of the operations of the Parent and its
Subsidiaries for the periods ended on such dates, all in accordance with GAAP,
subject with respect to the financial statements for the quarter ended March
31, 2004, to changes resulting from audit and normal year-end accounting
adjustments.

 

5.12                        Margin Regulations; Investment
Company Act; Public Utility Holding Company Act.

 

(a)                                  The
Borrower is not engaged and will not engage, principally or as one of its
important activities, in the business of purchasing or carrying “margin stock”
(within the meaning of Regulation U issued by the FRB), or extending
credit for the purpose of purchasing or carrying margin stock.  Following the application of the proceeds of
each Borrowing or drawing under each Letter of Credit, not more than 25% of the
value of the assets (either of the Borrower only or of the Consolidated Group
on a consolidated basis) will be margin stock.

 

(b)                                 None
of the Borrower, any Person Controlling the Borrower, or any Subsidiary
(i) is a “holding company,” or a “subsidiary company” of a “holding
company,” or an “affiliate” of a “holding company” or of a “subsidiary company”
of a “holding company,” within the meaning of the Public Utility Holding
Company Act of 1935, or (ii) is or is required to be registered as an
“investment company” under the Investment Company Act of 1940.

 

51

 

5.13                        Insurance.

 

The properties of the
Consolidated Group are insured with financially sound and reputable insurance
companies not Affiliates of the Borrower, in such amounts, with such
deductibles and covering such risks as are customarily carried by companies
engaged in similar businesses and owning similar properties in localities where
the Borrower or the applicable Subsidiary operates; provided
that the Consolidated Group may self-insure to the extent customary among
companies engaged in similar businesses and operating in similar localities.

 

ARTICLE VI  

AFFIRMATIVE COVENANTS

 

So long as any
Obligation remains unpaid or unperformed, or any portion of the Commitments
remains outstanding, Borrower shall, and shall (except in the case of the
Borrower’s reporting covenants) cause each Subsidiary to:

 

6.01                        Preservation of Existence.

 

Except as permitted by
the express provisions of this Credit Agreement, preserve and maintain its
separate legal existence and all rights, franchises, licenses and privileges
necessary to the conduct of its business, and qualify and remain qualified as a
foreign corporation (or partnership, limited liability company or other such
similar entity, as the case may be) and authorized to do business in each
jurisdiction, except to the extent failure to do any of the foregoing would not
reasonably be expected to have a Material Adverse Effect.

 

6.02                        Payment of Taxes and Claims.

 

Pay, discharge and
perform (a) all taxes, assessments and other governmental charges or levies
that may be imposed or assessed upon it or upon its income or profits, or upon
any of its property before they shall become delinquent, (b) all lawful claims
(including claims for labor, materials and supplies which, if unpaid might give
rise to a Lien upon any of its properties), (c) all other indebtedness,
obligations and liabilities in accordance with customary trade practices,
except to the extent failure to do any of the foregoing would not reasonably be
expected to have a Material Adverse Effect, except that the Borrower and
its Subsidiaries may contest any item described in this Section 6.02 in
good faith so long as adequate reserves are maintained with respect thereto in
accordance with GAAP, unless the failure to make such payment would not be
reasonably expected to have a Material Adverse Effect.

 

6.03                        Inspection Rights.

 

Provided that the
Administrative Agent uses reasonable efforts to minimize disruption to the
businesses of the Borrower and its Subsidiaries (including, without limitation,
providing to the Borrower reasonable notice of visits and inspections
hereunder), permit representatives of Administrative Agent, from time to time
and subject to the confidentiality provisions hereof, to visit and inspect their
properties and to have such access to the books and records of the Borrower and
its Subsidiaries, in each case, as reasonably requested by the Administrative
Agent for purposes of administering the credit evidenced by this Credit
Agreement, and to make photocopies or photographs thereof and to write down and
record any information such representative obtains, and the Borrower and its
Subsidiaries shall permit the Administrative Agent or its representatives to
investigate and verify the accuracy of information provided to

 

52

 

the Administrative Agent
or the Lenders, and to discuss all such matters with the officers, employees
and representatives of such Person, except that all intellectual property of
the Borrower and its Subsidiaries are excluded from any such inspection or
investigation.  Unless and until a
Default or an Event of Default shall have occurred and be continuing, each
individual Lender shall be limited to one such inspection in any calendar year
and all such visitations and inspections shall be at the expense of the
respective Lender and shall be conducted during normal business hours unless
otherwise agreed by the Borrower and Administrative Agent; provided, however,
that all such visitations and inspections conducted after the occurrence and
during the continuance of any Default or Event of Default shall be at the
Borrower’s sole cost and expense and shall be conducted without limitation as
to normal business hours.

 

6.04                        Financial Statements.

 

Deliver to the
Administrative Agent and each Lender, in form and substance reasonably
satisfactory to the Administrative Agent and the Required Lenders:

 

(a)                                  As soon as available,
and in any event within 105 days after the close of each fiscal year of the
Parent and its Consolidated Subsidiaries, a consolidated balance sheet of the
Parent and its Consolidated Subsidiaries as of the end of such fiscal year,
together with related consolidated statements of operations and retained
earnings and of cash flows for such fiscal year, in each case setting forth in
comparative form consolidated figures for the preceding fiscal year, all such
financial information described above to be in reasonable form and detail and
certified by independent certified public accountants of recognized national
standing reasonably acceptable to Administrative Agent (provided that Ernst
& Young LLP and any other nationally recognized accounting firm shall be
deemed acceptable to Administrative Agent), and whose opinion shall be to the
effect that such financial statements have been prepared in accordance with
GAAP (except for changes with which such accountants concur) and shall not be
limited as to the scope of the audit or qualified as to the status of the
Parent and its Consolidated Subsidiaries, on a consolidated basis, as a going
concern.

 

(b)                                 As soon as available,
and in any event within 60 days after the close of each of the first three
fiscal quarters of the Parent and its Consolidated Subsidiaries, a consolidated
balance sheet of the Parent and its Consolidated Subsidiaries as of the end of
such fiscal quarter, together with related consolidated statements of
operations and retained earnings and of cash flows for such fiscal quarter, in
each case setting forth in comparative form consolidated figures for the
corresponding period of the preceding fiscal year, all such financial
information described above to be in reasonable form and detail and reasonably
acceptable to the Administrative Agent and the Required Lenders, and accompanied
by a certificate of a Responsible Officer of the Borrower to the effect that
such quarterly financial statements fairly present in all material respects the
financial condition of the Consolidated Group and have been prepared in
accordance with GAAP, subject to changes resulting from audit and normal
year-end accounting adjustments.

 

6.05                        Certificates, Notices and Other Information.

 

Deliver to the
Administrative Agent, in form and substance reasonably satisfactory to the
Administrative Agent and the Required Lenders:

 

(a)                                  promptly
after request by the Administrative Agent or any Lender, copies of any detailed
management letters submitted to the board of directors (or the audit committee
of the board of directors) of the Borrower by independent accountants in
connection with the accounts or books of the Borrower or any Subsidiary, or any
audit of any of them;

 

53

 

(b)                                 promptly
after the occurrence thereof, notice of any Material Adverse Effect;

 

(c)                                  promptly,
notice of any announcement by either of the Rating Services of any change in a
Debt Rating if applicable/available; and

 

(d)                                 Within ten (10) days
after the date of delivery of the annual and quarterly financial statements
pursuant to Section 6.04(a) and (b), but not in any event
later than 105 days after the close of each fiscal year and within 60 days
after the close of each of the first three fiscal quarters of the Parent and
its Consolidated Subsidiaries, a certificate of a Responsible Officer of the
Borrower substantially in the form of Exhibit 6.05(d), (i) demonstrating
compliance with the financial covenants contained in Section 7.05
by calculation thereof as of the end of each such fiscal period and (ii)
stating that no Default or Event of Default with respect to the Borrower
exists, or if any Default or Event of Default with respect to the Borrower does
exist, specifying the nature and extent thereof and what action the Borrower
proposes to take with respect thereto.

 

(e)                                  Upon any Responsible
Officer of the Borrower obtaining knowledge thereof, the Borrower will give
written notice to the Administrative Agent promptly of (i) the occurrence of an
event or condition consisting of a Default or Event of Default, specifying the
nature and existence thereof and what action, if any, the Borrower proposes to
take with respect thereto, and (ii) the occurrence of any of the following with
respect to Parent or any Consolidated Subsidiary (A) the pendency or
commencement of any litigation, arbitral or governmental proceeding against
such Person or the Properties which if adversely determined is likely to have a
Material Adverse Effect, unless counsel to the Borrowers has reasonably
determined that such litigation, arbitral or governmental proceeding has no likelihood
of being successful or (B) the institution of any proceedings against such
Person with respect to, or the receipt of notice by such Person of potential
liability or responsibility for violation, or alleged violation of any federal,
state or local law, rule or regulation, including but not limited to,
Environmental Laws, if the potential penalties, judgments or awards resulting
from any such alleged violations could have a Material Adverse Effect.

 

(f)                                    With
reasonable promptness upon any such request, such other information regarding
the businesses, properties or financial condition of the Consolidated Group as
Administrative Agent or any Lender may reasonably request.

 

Each notice pursuant to
this Section 6.05 shall be accompanied by a statement of a Responsible
Officer of the Borrower setting forth details of the occurrence referred to
therein and stating what action Borrower has taken and proposes to take with
respect thereto.  Documents required to
be delivered pursuant to Section 6.04(a) or (b) or Section
6.05(e) (to the extent any such documents are included in materials
otherwise filed with the SEC) may be delivered electronically and if so
delivered, shall be deemed to have been delivered on the date (i) on which the
Borrower posts such documents, or provides a link thereto on the Borrower’s
website on the Internet at the website address listed on Schedule 10.02;
or (ii) on which such documents are posted on the Borrower’s behalf on an
Internet or intranet website, if any, to which each Lender and the
Administrative Agent have access (whether a commercial, third-party website or
whether sponsored by the Administrative Agent); provided that: (i) the
Borrower shall deliver paper copies of such documents to the Administrative
Agent or any Lender that requests the Borrower to deliver such paper copies
until a written request to cease delivering paper copies is given by the
Administrative Agent or such Lender and (ii) the Borrower shall notify the
Administrative Agent and each Lender (by telecopier or electronic mail) of the
posting of any such documents and provide to the Administrative Agent by
electronic mail electronic versions (i.e., soft copies) of such
documents.  Notwithstanding anything
contained herein, in every instance the Borrower shall be required to provide
paper copies of the Compliance Certificates required by Section 6.05(d)
to the Administrative Agent.  Except for
such Compliance Certificates, the Administrative Agent shall have no obligation
to request the

 

54

 

delivery or to maintain
copies of the documents referred to above, and in any event shall have no
responsibility to monitor compliance by the Borrower with any such request for
delivery, and each Lender shall be solely responsible for requesting delivery
to it or maintaining its copies of such documents.

 

6.06                        Keeping of Records and Books of
Account.

 

Keep complete and
accurate books and records of its transactions in accordance with GAAP
(including the establishment and maintenance of appropriate reserves).

 

6.07                        Compliance With Laws.

 

Comply with all laws
(including, without limitation, Environmental Laws), rules, regulations and
orders, and all applicable restrictions imposed by all Governmental
Authorities, applicable to it and its property (whether real, personal or
mixed, or tangible or intangible) if noncompliance with any such law, rule,
regulation, order or restriction would have a Material Adverse Effect.

 

6.08                        Maintenance of Insurance.

 

At all times maintain in
full force and effect insurance (including worker’s compensation insurance,
liability insurance, casualty insurance and business interruption insurance) in
such amounts, covering such risks and liabilities and with such deductibles or
self-insurance retentions as are in accordance with normal industry practice
for companies engaged in similar activities in similar geographic areas as the
Borrower and its Subsidiaries; provided that the Borrower and its
Subsidiaries may self-insure to the extent customary among companies engaged in
similar businesses and operating in similar localities.

 

6.09                        Maintenance of Properties.

 

Maintain and preserve its
properties and equipment material to the conduct of its businesses in good
repair, working order and condition, normal wear and tear and casualty and
condemnation excepted, and will make, or cause to be made, in such properties
and equipment from time to time all repairs, renewals, replacements,
extensions, additions, betterments and improvements thereto as may be needed or
proper, to the extent and in the manner customary for companies in similar
businesses, unless the failure to do any of the foregoing would not have a
Material Adverse Effect.

 

6.10                        Compliance With Agreements.

 

Perform in all material
respects all of its obligations under the terms of all material agreements,
indentures, mortgages, security agreements or other debt instruments to which
it is a party or by which it is bound.

 

6.11                        Use of Proceeds.

 

Use the proceeds of
Extensions of Credit for lawful general corporate purposes not otherwise in
contravention of this Credit Agreement.

 

55

 

ARTICLE VII  

NEGATIVE COVENANTS

 

So long as any
Obligations remain unpaid or unperformed, or any portion of the Commitments
remains outstanding, the Borrower shall not, nor shall it permit any Subsidiary
to, directly or indirectly:

 

7.01                        Restricted Funded Debt.

 

Permit any of its
Subsidiaries to contract, create, assume or otherwise incur any Restricted
Funded Debt if, after giving effect to any such incurrence, the aggregate
principal amount of all outstanding Restricted Funded Debt of the Subsidiaries
would exceed fifty percent (50%) of Consolidated EBITDA for the four
consecutive fiscal quarter period most recently ended prior to such incurrence,
unless such excess amount of the Restricted Funded Debt to be incurred is
subordinated (on terms and conditions reasonably satisfactory to the Required
Lenders) to the Obligations.

 

7.02                        Liens.

 

Contract, create, incur,
assume or permit to exist any Lien with respect to any of its property or
assets (including stock or other securities of any Person, including any
Subsidiary), whether now owned or after acquired, except:

 

(a)                                  Liens
incurred and pledges and deposits made in the ordinary course of business in
connection with worker’s compensation, unemployment insurance, old-age pensions
and other social security laws or regulations;

 

(b)                                 Liens
securing the performance of bids, tenders, leases, contracts (other than for
the repayment of borrowed money), statutory obligations, surety, customs and
appeal bonds and other obligations of like nature, incurred as an incident to
and in the ordinary course of business;

 

(c)                                  Liens
imposed by law, such as carriers’, warehousemen’s, mechanics’, materialmen’s and
vendors’ liens, incurred in good faith in the ordinary course of business and
securing obligations which are not yet due or which are being contested;

 

(d)                                 Liens
for taxes, assessments and other charges or levies not yet due or which are
being contested;

 

(e)                                  zoning
restrictions, easements, licenses, rights, reservations, provisions, covenants,
conditions, waivers, restrictions on the use of property or minor
irregularities of title (and with respect to leasehold interests, mortgages,
obligations, liens and other encumbrances incurred, created, assumed or
permitted to exist and arising by, through or under or asserted by a landlord
or owner of the leased property, with or without consent of the lessee), none
of which materially impairs the use of any parcel of property material to the
operation of the business of the Borrower and its Subsidiaries taken as a
whole;

 

(f)                                    Liens
upon any property acquired, constructed or improved by the Borrower or any
Subsidiary which are created or incurred contemporaneously with or within 180
days after such acquisition, construction or improvement to secure or provide
for the payment of any part of the purchase price of such property or the cost
of such construction or improvement (but no other amounts); provided
that any such Lien or security interest shall not apply to any other property
of the Borrower or any Subsidiary;

 

56

 

(g)                                 Liens
on property existing at the time such property or the Person owning such
property is acquired by, merged into or consolidated with, the Borrower or any
Subsidiary; provided, in each case, that such liens were not created in
contemplation of the acquisition by the Borrower or any Subsidiary of such
property;

 

(h)                                 other
Liens on assets other than inventory or accounts receivable created, incurred,
assumed or permitted to exist in the ordinary course of its business or
customary in its industry;

 

(i)                                     extensions,
renewals and replacements of Liens referred to in paragraphs (a)-(i)
of this Section 7.02; provided, that any such extension, renewal
or replacement Lien shall be limited to the property or assets covered by the
Lien extended, renewed or replaced and that the obligations secured by any such
extension, renewal or replacement Lien shall be in an amount not greater than
the amount of the obligations secured by the Lien extended, renewed or
replaced;

 

(j)                                     judgment
and attachment Liens not giving rise to an Event of Default or Liens created by
or existing from any litigation or legal proceeding that are being contested in
good faith through appropriate proceedings and with respect to which adequate
reserves are being maintained in accordance with GAAP;

 

(k)                                  Liens
created or deemed to exist in connection with a Permitted Securitization
Transaction (including any related filings of any financing statements), but
only to the extent that any such Lien relates to the applicable receivables and
related property actually sold, contributed or otherwise conveyed pursuant to
such transaction;

 

(l)                                     any
Lien against a Securitization Subsidiary pursuant to any Permitted
Securitization Transaction;

 

(m)                               Liens
created in connection with the Cash Collateral obligations of the Borrower and
its Subsidiaries not to exceed $30 million in the aggregate from time to time outstanding;
and

 

(n)                                 Liens
(other than as referred to in paragraphs (a) through (m) of this Section
7.02 existing on the date of this Credit Agreement or created from time to
time during the term of this Credit Agreement, either individually or in the
aggregate, and securing Indebtedness or other obligations in an amount not in
excess of $30 million in the aggregate.

 

 

7.03                        Fundamental Changes.

 

Merge with or into or
consolidate or combine with any other Person; except that:  (a) any Subsidiary (direct or indirect) of
the Borrower may merge with or into or consolidate or combine with the Borrower
or any other Subsidiary (direct or indirect) of the Borrower (whether in one
transaction or a series of transactions); (b) any Subsidiary (direct or
indirect) of the Borrower may merge, consolidate or combine with any Person if
the surviving Person is a Subsidiary (direct or indirect) of the Borrower; (c)
if no Default or Event of Default shall have occurred at the time of or
immediately after giving effect to such transaction and be continuing, the
Borrower may merge, consolidate or combine with any Person if the surviving
corporation is the Borrower; and (d) any Subsidiary (direct or indirect) of the
Borrower may merge, consolidate or combine with any other Person as part of a
transaction in which the surviving Person is not a Subsidiary (direct or
indirect) of the Borrower, to the extent that the sum of (i) the aggregate net
book value of such Subsidiary, plus (ii) the aggregate net book value of
all other Subsidiaries (direct or indirect) of the Borrower previously or
contemporaneously merged, consolidated

 

57

 

or combined pursuant to
this Section 7.03(d), plus (iii) the previous or contemporaneous
Asset Dispositions pursuant to Section 7.04(v), does not exceed
twenty-five percent (25%) of the total consolidated assets of the Consolidated
Group as shown on its consolidated balance sheet for its most recent prior
fiscal quarter.

 

7.04                        Asset Dispositions.

 

Make any Asset
Disposition (including, without limitation, any sale/leaseback transaction);
except that the Borrower and its Subsidiaries (direct or indirect) may
make:  (i) Asset Dispositions of
inventory, or used, worn-out or surplus equipment, all in the ordinary course
of business; (ii) Asset Dispositions on reasonable commercial terms and for
fair value or which would not have a Material Adverse Effect (except that
dispositions of any of the Capital Stock or all or substantially all of the
assets of any Subsidiary shall not be permitted under this clause (ii)); (iii)
Asset Dispositions to the Borrower or any of its Subsidiaries; (iv) Asset
Dispositions to any Person that becomes a Subsidiary (direct or indirect) of
the Borrower as part of a transaction or series of transactions that includes
the Asset Disposition; and (v) Asset Dispositions to any Person where the sum
of (A) the aggregate net book value of the transferred assets, plus (B)
the aggregate net book value of all transactions pursuant to Section 7.03(d),
plus (C) the aggregate net book value of the transferred assets in all
previous or contemporaneous Asset Dispositions pursuant to this Section
7.04(v), does not exceed twenty-five percent (25%) of the total
consolidated assets of the Consolidated Group as shown on its consolidated
balance sheet for its most recent prior fiscal quarter.

 

7.05                        Financial Covenants.  

 

(a)                                  Consolidated
Leverage Ratio.  Permit the
Consolidated Leverage Ratio, as of the last day of each fiscal quarter, of the
Consolidated Group to be greater than 3.0:1.0.

 

(b)                                 Consolidated
Net Worth.  Permit Consolidated Net
Worth at any time to be less than the sum of $1.4 billion, plus, as of
the end of each fiscal quarter occurring after the Closing Date, an amount
equal to fifty percent (50%) of Consolidated Net Income (to the extent
positive) for the fiscal quarter then ended, such increases to be cumulative, plus,
as of the end of each fiscal quarter occurring after the Closing Date, an
amount equal to fifty percent (50%) of the net proceeds from Equity
Transactions occurring during the fiscal quarter then ended, such increases to
be cumulative, minus, as of the end of each fiscal quarter occurring after the
Closing Date, an amount equal to the sum of all dividends and distributions
paid by the Parent in respect of its Capital Stock and amounts used to
repurchase or redeem Capital Stock of the Parent during the fiscal quarter then
ended, such decreases to be cumulative.

 

7.06                        Permitted Securitization
Transaction.

 

Enter into or permit to
exist any Securitization Transaction that is not a Permitted Securitization
Transaction.

 

7.07                        Transactions with Affiliates.

 

Enter into or permit to
exist any transaction or series of transactions with any officer, director,
shareholder, Subsidiary or Affiliate of such Person other than transactions
which are entered into on terms and conditions substantially as favorable to
such Person as would be obtainable by it in a comparable arms-length
transaction with a Person other than an officer, director, shareholder,
Subsidiary or Affiliate; provided that this Section 7.07 does not
prohibit or restrict any transaction or series of transactions in

 

58

 

which the Borrower is the
beneficiary of any terms and conditions otherwise prohibited or restricted
under the Section 7.07.

 

7.08                        Dividends; Stock Repurchases and
Redemptions.

 

Declare and make dividend
payments or other distributions or purchase, redeem or otherwise acquire shares
of its Capital Stock or the Parent’s Capital Stock in excess of $150 million
per fiscal year unless, after giving effect thereto, the Consolidated Group
shall have more than $400 million in cash and marketable securities on hand and
domiciled in the United States.

 

ARTICLE VIII  

EVENTS OF DEFAULT AND REMEDIES

 

8.01                        Events of Default.

 

Any one or more of the
following events shall constitute an Event of Default:

 

(a)                                  The
Borrower fails to pay any principal on any Outstanding Obligation (other than
fees) as and on the date when due; or

 

(b)                                 The
Borrower fails to pay any interest on any Outstanding Obligation hereunder
within three (3) Business Days after the date due; or fails to pay any fees or
other amount payable to the Administrative Agent or any Lender under any Credit
Document within five (5) days after the date due;

 

(c)                                  (i)
The Borrower shall fail to observe or perform any term, covenant, obligation or
condition of the Borrower under this Credit Agreement or any other Credit
Document other than those set forth in Sections 8.01(a) or (b)
hereof, and such failure shall continue for thirty (30) days (except for the
covenants set forth in Sections 7.01, 7.03, 7.04 and 7.05
for which there shall be no such grace period) after notice thereof to the
Borrower, or (ii) any representation or warranty made by the Borrower set forth
in this Credit Agreement or in any other Credit Document or the commitment
letter dated April 15, 2004 among the Borrower, BAS and the Administrative
Agent in respect of this Credit Agreement or in any document, certificate or financial
or other statement delivered in connection herewith or therewith shall be false
or inaccurate in any material respect when made;

 

(d)                                 The Borrower, the
Parent or any of their respective Subsidiaries shall default (beyond applicable
periods of grace and/or notice and cure) in the payment when due of any
principal of or interest on any Indebtedness having an outstanding principal
amount of at least $25 million; or any other event or condition shall occur
which results in the maturity of such Indebtedness being accelerated other than
at the option of the Borrower, the Parent or any such Subsidiary, except with
respect to any Subsidiary other than Borrower, to the extent any of the
foregoing does not result in a Material Adverse Effect or any other Event of
Default hereunder;

 

(e)                                  The liquidation or
dissolution of the Borrower, the Parent or any of their respective
Subsidiaries, or the suspension of the business of the Borrower, the Parent or
any of their respective Subsidiaries, or the filing by the Borrower, the Parent
or any of their respective Subsidiaries, of a voluntary petition or an answer
seeking reorganization, arrangement, readjustment of its debts or for any other
relief under the Bankruptcy Code, as amended, or under any other insolvency act
or law, state or federal, now or hereafter existing, or any other action of the
Borrower, the Parent or any of their

 

59

 

respective Subsidiaries,
indicating its consent to, approval of or acquiescence in, any such petition or
proceeding; the application by the Borrower, the Parent or any of their
respective Subsidiaries, for, or the appointment by consent or acquiescence of
the Borrower, the Parent or any of their respective Subsidiaries, of a
receiver, a trustee or a custodian of the Borrower, the Parent or any of their
respective Subsidiaries, for all or a substantial part of its property; the
making by the Borrower, the Parent or any of their respective Subsidiaries, of
any assignment for the benefit of creditors; the admission by the Borrower, the
Parent or any of their respective Subsidiaries, in writing of its inability to
pay its debts as they mature or the Borrower, the Parent or any of their
respective Subsidiaries, is generally not paying its debts and other financial
obligations as they become due and payable; or the Borrower, the Parent or any
of their respective Subsidiaries, taking any corporate action to authorize any
of the foregoing, except with respect to any Subsidiary other than the Borrower,
to the extent any of the foregoing does not result in a Material Adverse Effect
or any other Event of Default hereunder;

 

(f)                                    The filing of an
involuntary petition against the Borrower, the Parent or any of their
respective Subsidiaries, in bankruptcy or seeking reorganization, arrangement,
readjustment of its debts or for any other relief under the Bankruptcy Code, as
amended, or under any other insolvency act or law, state or federal, now or
hereafter existing; or the involuntary appointment of a receiver, a trustee or
a custodian of the Borrower, the Parent or any of their respective
Subsidiaries, for all or a substantial part of its property; or the issuance of
a warrant of attachment, execution or similar process against any substantial
part of the property of the Borrower, the Parent or any of their respective
Subsidiaries, and the continuance of any of such events for sixty (60) days
undismissed or undischarged, except with respect to any Subsidiary other than
the Borrower, to the extent any of the foregoing does not result in a Material
Adverse Effect or any other Event of Default hereunder;

 

(g)                                 The adjudication of
the Borrower, the Parent or any of their respective Subsidiaries, as bankrupt
or insolvent, except with respect to any Subsidiary other than the Borrower, to
the extent any of the foregoing does not result in a Material Adverse Effect or
any other Event of Default hereunder;

 

(h)                                 The entering of any
order in any proceedings against the Borrower, the Parent or any of their
respective Subsidiaries, decreeing the dissolution, divestiture or split-up of
the Borrower, the Parent or any of their respective Subsidiaries, and such
order remains in effect for more than sixty (60) days, except with respect to
any Subsidiary other than the Borrower, to the extent any of the foregoing does
not result in a Material Adverse Effect or any other Event of Default
hereunder;

 

(i)                                     A final judgment
or judgments for the payment of money shall be rendered by a court or courts
with competent jurisdiction against the Borrower, the Parent or any of their
respective Subsidiaries, or any of their assets in excess of $15 million in the
aggregate, and (i) the same shall not be discharged (or provision shall not be
made for such discharge), or a stay of execution thereof shall not be procured,
within sixty (60) days from the date of entry thereof, or (ii) the Borrower,
the Parent or any of their respective Subsidiaries, shall not, within said
period of sixty (60) days, or such longer period during which execution of the same
shall have been stayed, appeal therefrom and cause the execution thereof to be
stayed during such appeal, or (iii) such judgment or judgments shall not be
discharged (or provisions shall not be made for such discharge) within sixty
(60) days after a decision has been reached with respect to such appeal and the
related stay has been lifted;

 

(j)                                     (i) An ERISA
Event occurs with respect to a Pension Plan or Multiemployer Plan that has
resulted in liability of the Borrower under Title IV of ERISA to the Pension
Plan, Multiemployer Plan or the PBGC in an aggregate amount in excess of $15
million, and the Borrower or its ERISA Affiliate fails to pay such amount when
due or (ii) the Borrower or any ERISA Affiliate fails to pay when due,
after the expiration of any applicable grace period, any installment payment
with respect to its withdrawal liability

 

60

 

under Section 4201
of ERISA under a Multiemployer Plan in an aggregate amount in excess of $15
million;

 

(k)                                  (i) As a result of
one (1) or more transactions after the date of this Credit Agreement, any
“person” or “group” of persons shall have “beneficial ownership” (within the
meaning of Section 13(d) or 14(d) of the Securities Exchange Act of 1934, as
amended, and the applicable rules and regulations thereunder) of thirty-five
percent (35%) or more of the outstanding common stock of the Parent; or (ii)
without limiting the generality of the foregoing, during any period of twelve
(12) consecutive months, commencing after the date of this Credit Agreement,
individuals who at the beginning of such period of twelve (12) months were
directors of the Parent shall cease for any reason to constitute a majority of
the board of directors of Parent, provided, that the relationships among
the respective shareholders of the Parent on the Closing Date shall not be
deemed to constitute all or any combination of them as a “group” for purposes
of clause (k)(i); or

 

(l)                                     Any Credit
Document, at any time after its execution and delivery by the Borrower and for
any reason other than as expressly permitted hereunder or satisfaction in full
of all the Obligations, ceases to be in full force and effect; or the Borrower,
the Parent or any of their respective Subsidiaries contests in any manner the
validity or enforceability of any Credit Document; or the Borrower denies that
it has any or further liability or obligation under any Credit Document, or
purports to revoke, terminate or rescind any Credit Document.

 

8.02                        Remedies Upon Event of Default.

 

If any Event of Default
occurs and is continuing, the Administrative Agent shall, at the request of, or
may, with the consent of, the Required Lenders, take any or all of the
following actions:

 

(a)                                  declare
the commitments of the Lenders to make Loans and the obligation of the L/C
Issuer to make L/C Credit Extensions to be terminated, whereupon such
commitments and obligation shall be terminated;

 

(b)                                 declare
the unpaid principal amount of all outstanding Loans, all interest accrued and
unpaid thereon, and all other amounts owing or payable hereunder or under any
other Credit Document to be immediately due and payable, without presentment,
demand, protest or other notice of any kind, all of which are hereby expressly
waived by the Borrower;

 

(c)                                  require
that the Borrower provide Cash Collateral for the L/C Obligations (in an amount
equal to the then Outstanding Amount thereof); and

 

(d)                                 exercise
on behalf of itself and the Lenders all rights and remedies available to it or
to the Lenders under the Credit Documents or applicable Law;

 

provided,
however, that upon the occurrence of an Event of Default under Section
8.01(f), (g) or (h), the obligation of each Lender to make
Loans and any obligation of the L/C Issuer to make L/C Credit Extensions shall
automatically terminate, the unpaid principal amount of all outstanding Loans
and all interest and other amounts as aforesaid shall automatically become due
and payable, and the obligation of the Borrower to provide Cash Collateral for
the L/C Obligations as aforesaid shall automatically become effective, in each
case without further act of the Administrative Agent or any Lender.

 

61

 

8.03                        Application of Funds.

 

After the exercise of
remedies provided for in Section 8.02 (or after the Loans have
automatically become immediately due and payable and the L/C Obligations have
automatically been required to provide Cash Collateral as set forth in the
proviso to Section 8.02), any amounts received on account of the
Obligations shall be applied by the Administrative Agent in the following
order:

 

First,
to payment of that portion of the Obligations constituting fees, indemnities,
expenses and other amounts (including Attorney Costs and amounts payable under Article III)
payable to the Administrative Agent in its capacity as such;

 

Second,
to payment of that portion of the Obligations constituting fees, indemnities
and other amounts (other than principal and interest) payable to the Lenders
(including Attorney Costs and amounts payable under Article III),
ratably among the Lenders in proportion to the amounts described in this
clause Second payable to them;

 

Third,
to payment of that portion of the Obligations constituting accrued and unpaid
interest on the Loans, L/C Borrowings and other Obligations, ratably among the
Lenders in proportion to the respective amounts described in this clause Third
payable to them;

 

Fourth,
to (a) payment of that portion of the Obligations constituting unpaid principal
of the Loans and L/C Borrowings, (b) payment of breakage, termination or other
amounts owing in respect of any Swap Contract between the Borrower and any
Lender, or any Affiliate of a Lender, to the extent such Swap Contract is
permitted hereunder, (c) the Administrative Agent for the account of the L/C
Issuer, as Cash Collateral for that portion of the L/C Obligations comprised of
the aggregate undrawn amount of Letters of Credit, ratably among such parties
in proportion to the respective amounts described in this clause Fourth
payable to them; and

 

Last,
the balance, if any, after all of the Obligations have been indefeasibly paid
in full, to the Borrower or as otherwise required by Law.

 

Subject to Section 2.03(c),
amounts used as Cash Collateral for the aggregate undrawn amount of Letters of
Credit pursuant to clause Fourth above shall be applied to satisfy
drawings under such Letters of Credit as they occur.  If any amount remains on deposit as Cash
Collateral  after all Letters of Credit have
either been fully drawn or expired, such remaining amount shall be applied to
the other Obligations, if any, in the order set forth above.

 

ARTICLE IX  

ADMINISTRATIVE AGENT

 

9.01                        Appointment and Authority.

 

Each of the Lenders and
the L/C Issuer hereby irrevocably appoints Bank of America to act on its behalf
as the Administrative Agent hereunder and under the other Credit Documents and
authorizes the Administrative Agent to take such actions on its behalf and to
exercise such powers as are delegated to the Administrative Agent by the terms hereof
or thereof, together with such actions and powers as are reasonably incidental
thereto.  The provisions of this Article
are solely for the benefit of the

 

62

 

Administrative Agent, the
Lenders and the L/C Issuer, and the Borrower shall  have
no rights as a third party beneficiary of, and no obligations under, any of
such provisions.

 

9.02                        Rights
as a Lender.

 

The Person serving as the
Administrative Agent hereunder shall have the same rights and powers in its
capacity as a Lender as any other Lender and may exercise the same as though it
were not the Administrative Agent and the term “Lender” or “Lenders” shall,
unless otherwise expressly indicated or unless the context otherwise requires,
include the Person serving as the Administrative Agent hereunder in its
individual capacity.  Such Person and its
Affiliates may accept deposits from, lend money to, act as the financial
advisor or in any other advisory capacity for and generally engage in any kind
of business with the Borrower or any Subsidiary or other Affiliate thereof as
if such Person were not the Administrative Agent hereunder and without any duty
to account therefor to the Lenders.

 

9.03                        Exculpatory
Provisions.

 

The Administrative Agent
shall not have any duties or obligations except those expressly set forth
herein and in the other Credit Documents. 
Without limiting the generality of the foregoing, the Administrative
Agent:

 

(a)                                  shall
not be subject to any fiduciary or other implied duties, regardless of whether
a Default has occurred and is continuing;

 

(b)                                 shall
not have any duty to take any discretionary action or exercise any
discretionary powers, except discretionary rights and powers expressly
contemplated hereby or by the other Credit Documents that the Administrative
Agent is required to exercise as directed in writing by the Required Lenders
(or such other number or percentage of the Lenders as shall be expressly
provided for herein or in the other Credit Documents), provided that the
Administrative Agent shall not be required to take any action that, in its
opinion or the opinion of its counsel, may expose the Administrative Agent to
liability or that is contrary to any Credit Document or applicable law; and

 

(c)                                  shall
not, except as expressly set forth herein and in the other Credit Documents,
have any duty to disclose, and shall not be liable for the failure to disclose,
any information relating to the Borrower or any of its Affiliates that is
communicated to or obtained by the Person serving as the Administrative Agent
or any of its Affiliates in any capacity.

 

The Administrative Agent
shall not be liable for any action taken or not taken by it (i) with the
consent or at the request of the Required Lenders (or such other number or
percentage of the Lenders as shall be necessary, or as the Administrative Agent
shall believe in good faith shall be necessary, under the circumstances as
provided in Sections 10.01 and 8.02) or (ii) in the absence of
its own gross negligence or willful misconduct. 
The Administrative Agent shall be deemed not to have knowledge of any
Default unless and until notice describing such Default is given to the
Administrative Agent by the Borrower, a Lender or the L/C Issuer.

 

The Administrative Agent
shall not be responsible for or have any duty to ascertain or inquire into (i)
any statement, warranty or representation made in or in connection with this
Credit Agreement or any other Credit Document, (ii) the contents of any
certificate, report or other document delivered hereunder or thereunder or in
connection herewith or therewith, (iii) the performance or observance of
any of the covenants, agreements or other terms or conditions set forth herein
or therein or the occurrence

 

63

 

of any Default, (iv) the
validity, enforceability, effectiveness or genuineness of this Credit
Agreement, any other Credit Document or any other agreement, instrument or
document or (v) the satisfaction of any condition set forth in Article IV
or elsewhere herein, other than to confirm receipt of items expressly required
to be delivered to the Administrative Agent.

 

9.04                        Reliance by Administrative Agent.

 

The Administrative Agent
shall be entitled to rely upon, and shall not incur any liability for relying
upon, any notice, request, certificate, consent, statement, instrument,
document or other writing (including any electronic message, Internet or
intranet website posting or other distribution) believed by it to be genuine
and to have been signed, sent or otherwise authenticated by the proper
Person.  The Administrative Agent also
may rely upon any statement made to it orally or by telephone and believed by
it to have been made by the proper Person, and shall not incur any liability
for relying thereon.  In determining
compliance with any condition hereunder to the making of a Loan, or the
issuance of a Letter of Credit, that by its terms must be fulfilled to the
satisfaction of a Lender or the L/C Issuer, the Administrative Agent may
presume that such condition is satisfactory to such Lender or the L/C Issuer
unless the Administrative Agent shall have received notice to the contrary from
such Lender or the L/C Issuer prior to the making of such Loan or the issuance
of such Letter of Credit.  The Administrative
Agent may consult with legal counsel (who may be counsel for the Borrower),
independent accountants and other experts selected by it, and shall not be
liable for any action taken or not taken by it in accordance with the advice of
any such counsel, accountants or experts.

 

9.05                        Delegation
of Duties.

 

The Administrative Agent
may perform any and all of its duties and exercise its rights and powers
hereunder or under any other Credit Document by or through any one or more
sub-agents appointed by the Administrative Agent.  The Administrative Agent and any such
sub-agent may perform any and all of its duties and exercise its rights and
powers by or through their respective Related Parties.  The exculpatory provisions of this Article
shall apply to any such sub-agent and to the Related Parties of the
Administrative Agent and any such sub-agent, and shall apply to their
respective activities in connection with the syndication of the credit
facilities provided for herein as well as activities as Administrative Agent.

 

9.06                        Resignation of Administrative Agent.

 

The Administrative Agent
may at any time upon 30 days’ notice to the Lenders, the L/C Issuer and the
Borrower, resign.  Upon receipt of any
such notice of resignation, the Required Lenders shall have the right, in
consultation with the Borrower and with the consent of the Borrower at all
times other than during the existence of an Event of Default, to appoint a
successor, which shall be a bank with an office in the United States, or an
Affiliate of any such bank with an office in the United States.  If no such successor shall have been so
appointed by the Required Lenders and shall have accepted such appointment
within thirty (30) days after the retiring Administrative Agent gives
notice of its resignation, then the retiring Administrative Agent may, on
behalf of the Lenders and the L/C Issuer, appoint a successor Administrative
Agent meeting the qualifications set forth above; provided that if the
Administrative Agent shall notify the Borrower and the Lenders that no
qualifying Person has accepted such appointment, then such resignation shall
nonetheless become effective in accordance with such notice and (1) the
retiring Administrative Agent shall be discharged from its duties and
obligations hereunder and under the other Credit Documents and (2) all
payments, communications and determinations provided to be made by, to or
through the Administrative Agent shall instead be made by

 

64

 

or to each Lender and the
L/C Issuer directly, until such time as the Required Lenders appoint a
successor Administrative Agent as provided for above in this Section.  Upon the acceptance of a successor’s
appointment as Administrative Agent hereunder, such successor shall succeed to
and become vested with all of the rights, powers, privileges and duties of the
retiring (or retired) Administrative Agent, and the retiring Administrative
Agent shall be discharged from all of its duties and obligations hereunder or
under the other Credit Documents (if not already discharged therefrom as
provided above in this Section).  The
fees payable by the Borrower to a successor Administrative Agent shall be the
same as those payable to its predecessor unless otherwise agreed between the
Borrower and such successor.  After the
retiring Administrative Agent’s resignation hereunder and under the other
Credit Documents, the provisions of this Article and Section 10.04
shall continue in effect for the benefit of such retiring Administrative Agent,
its sub-agents and their respective Related Parties in respect of any actions
taken or omitted to be taken by any of them while the retiring Administrative
Agent was acting as Administrative Agent. 
Any resignation by Bank of America as Administrative Agent pursuant to
this Section shall also constitute its resignation as L/C Issuer and Swingline
Lender.  Upon the acceptance of a
successor’s appointment as Administrative Agent hereunder, (a) such successor
shall succeed to and become vested with all of the rights, powers, privileges
and duties of the retiring L/C Issuer and Swingline Lender, (b) the retiring
L/C Issuer and Swingline Lender shall be discharged from all of their
respective duties and obligations hereunder or under the other Credit Documents,
and (c) the successor L/C Issuer shall issue letters of credit in substitution
for the Letters of Credit, if any, outstanding at the time of such succession
or make other arrangement satisfactory to the retiring L/C Issuer to
effectively assume the obligations of the retiring L/C Issuer with respect to
such Letters of Credit.

 

9.07                        Non-Reliance on Administrative
Agent and Other Lenders.

 

Each Lender and the L/C
Issuer acknowledges that it has, independently and without reliance upon the
Administrative Agent or any other Lender or any of their Related Parties and
based on such documents and information as it has deemed appropriate, made its
own credit analysis and decision to enter into this Credit Agreement.  Each Lender and the L/C Issuer also
acknowledges that it will, independently and without reliance upon the
Administrative Agent or any other Lender or any of their Related Parties and
based on such documents and information as it shall from time to time deem
appropriate, continue to make its own decisions in taking or not taking action
under or based upon this Credit Agreement, any other Credit Document or any
related agreement or any document furnished hereunder or thereunder.

 

9.08                        No Other Duties, Etc.  

 

Anything herein to the
contrary notwithstanding, none of the Arrangers or Book Managers listed on the
cover page hereof shall have any powers, duties or responsibilities under this
Credit Agreement or any of the other Credit Documents, except in its capacity,
as applicable, as the Administrative Agent, a Lender or the L/C Issuer
hereunder.

 

9.09                        Administrative Agent May File Proofs
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 or L/C Obligation 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

 

65

 

(a)                                  to
file and prove a claim for the whole amount of the principal and interest owing
and unpaid in respect of the Loans, L/C Obligations and all other Obligations
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, the L/C Issuer and the
Administrative Agent (including any claim for the reasonable compensation,
expenses, disbursements and advances of the Lenders, the L/C Issuer and the
Administrative Agent and their respective agents and counsel and all other
amounts due the Lenders, the L/C Issuer and the Administrative Agent under Sections 2.03(j),
2.09 and 10.04) 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 and the L/C
Issuer 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 and the L/C Issuer, 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 Sections 2.09 and 10.04.

 

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 or the L/C Issuer any plan of
reorganization, arrangement, adjustment or composition affecting the
Obligations 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.

 

ARTICLE X  

MISCELLANEOUS

 

10.01                 Amendments, Etc.

 

No amendment or waiver
of, or any consent to deviation from, any provision of this Credit Agreement or
any other Credit Document shall be effective unless in writing and signed by
the Borrower and the Required Lenders and acknowledged by the Administrative
Agent, and each such amendment, waiver or consent shall be effective only in
the specific instance and for the specific purpose for which it is given; provided,
however, that:

 

(a)                                  unless
also consented to in writing by each Lender directly affected thereby, no such
amendment, waiver or consent shall:

 

(i)                                     extend or increase
the Commitment of any Lender (or reinstate any Commitment terminated pursuant
to Section 8.02), it being understood that the amendment or waiver of an
Event of Default or a mandatory reduction or a mandatory prepayment in
Commitments shall not be considered an extension or an increase in Commitments,

 

(ii)                                  waive non-payment or
postpone any date fixed by this Credit Agreement or any other Credit Document
for any payment of principal, interest, fees or other amounts due to any Lender
hereunder or under any other Credit Document,

 

66

 

(iii)                               reduce the principal of,
or the rate of interest specified herein on, any Loan or L/C Borrowing, or any
fees or other amounts payable hereunder or under any other Credit Document; provided,
however, that only the consent of the Borrower and the Required Lenders shall
be necessary (A) to amend the definition of “Default Rate” or to waive any
obligation of the Borrower to pay interest or Letter of Credit Fees at the
Default Rate or (B) to amend any financial covenant hereunder (or any
defined term used therein) even if the effect of such amendment would be to reduce
the rate of interest on any Loan or L/C Borrowing or to reduce any fee payable
hereunder,

 

(iv)                              change any provision of
this Credit Agreement regarding pro rata sharing or pro rata funding with
respect to (A) the making of advances (including participations), (B) the
manner of application of payments or prepayments of principal, interest, or
fees, (C) the manner of application of reimbursement obligations from drawings
under Letters of Credit, or (D) the manner of reduction of commitments and
committed amounts,

 

(v)                                 amend Section 1.09
or the definition of “Alternative Currency” without the written consent of each
Lender;

 

(vi)                              change any provision of
this Section 10.01(a) or the definition of “Required Lenders” or
any other provision hereof 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

 

(vii)                           extend the expiry date of
any Letter of Credit to a date after the L/C Expiration Date,

 

(b)                                 unless
also consented to in writing by the L/C Issuer, no such amendment, waiver or
consent shall affect the rights or duties of the L/C Issuer under this Credit
Agreement or any L/C Application relating to any Letter of Credit issued or to
be issued by it;

 

(c)                                  unless
also consented to in writing by the Swingline Lender, no such amendment, waiver
or consent shall affect the rights or duties of the Swingline Lender under this
Credit Agreement; and

 

(d)                                 unless
also consented to in writing by the Administrative Agent, no such amendment,
waiver or consent shall affect the rights or duties of the Administrative Agent
under this Credit Agreement or any other Credit Document;

 

provided
however, that notwithstanding anything to the contrary contained herein, (i) no
Defaulting Lender shall have any right to approve or disapprove any amendment,
waiver or consent hereunder, except that the Commitment of such Lender may not
be increased or extended without the consent of such Lender, (ii) each Lender
is entitled to vote as such Lender sees fit on any bankruptcy or insolvency
reorganization plan that affects the Loans, (iii) each Lender acknowledged that
the provisions of Section 1126(c) of the Bankruptcy Code supersedes the
unanimous consent provisions set forth herein, (iv) the Required Lenders may
consent to allow the Borrower to use Cash Collateral in the context of a
bankruptcy or insolvency proceeding, and (v) the Fee Letter may be amended, or
rights or privileges thereunder waived, in a writing executed only by the parties
thereto.

 

67

 

10.02                 Notices; Effectiveness; Electronic
Communication.

 

(a)                                  Notices
Generally.  Except in the case of
notices and other communications expressly permitted to be given by telephone
(and except as provided in subsection (b) below), all notices and other
communications provided for herein shall be in writing and shall be delivered
by hand or overnight courier service, mailed by certified or registered mail or
sent by telecopier as follows, and all notices and other communications
expressly permitted hereunder to be given by telephone shall be made to the
applicable telephone number, as follows:

 

(i)                                     if
to the Borrower, the Administrative Agent, the L/C Issuer or the Swingline
Lender, to the address, telecopier number, electronic mail address or telephone
number specified for such Person on Schedule 10.02; and

 

(ii)                                  if
to any other Lender, to the address, telecopier number, electronic mail address
or telephone number specified in its Administrative Questionnaire.

 

Notices sent by hand or
overnight courier service, or mailed by certified or registered mail, shall be
deemed to have been given when received; notices sent by telecopier shall be
deemed to have been given when sent (except that, if not given during normal
business hours for the recipient, shall be deemed to have been given at the
opening of business on the next Business Day for the recipient).  Notices delivered through electronic
communications to the extent provided in subsection (b) below, shall be
effective as provided in such subsection (b).

 

(b)                                 Electronic
Communications.  Notices and other
communications to the Lenders and the L/C Issuer hereunder may be delivered or
furnished by electronic communication (including e-mail and Internet or
intranet websites) pursuant to procedures approved by the Administrative Agent,
provided that the foregoing shall not apply to notices to any Lender or
the L/C Issuer pursuant to Article II if such Lender or the L/C Issuer,
as applicable, has notified the Administrative Agent that it is incapable of
receiving notices under such Article by electronic communication.  The Administrative Agent or the Borrower may,
in its discretion, agree to accept notices and other communications to it
hereunder by electronic communications pursuant to procedures approved by it, provided
that approval of such procedures may be limited to particular notices or
communications.

 

Unless the Administrative
Agent otherwise prescribes, (i) notices and other communications sent to
an e-mail address shall be deemed received upon the sender’s receipt of an
acknowledgement from the intended recipient (such as by the “return receipt
requested” function, as available, return e-mail or other written
acknowledgement), provided that if such notice or other communication is
not sent during the normal business hours of the recipient, such notice or
communication shall be deemed to have been sent at the opening of business on
the next business day for the recipient, and (ii) notices or communications
posted to an Internet or intranet website shall be deemed received upon the
deemed receipt by the intended recipient at its e-mail address as described in
the foregoing clause (i) of notification that such notice or
communication is available and identifying the website address therefor.

 

(c)                                  Change
of Address, Etc.  Each of the
Borrower, the Administrative Agent, the L/C Issuer and the Swingline Lender may
change its address, telecopier or telephone number for notices and other
communications hereunder by notice to the other parties hereto.  Each other Lender may change its address,
telecopier or telephone number for notices and other communications hereunder
by notice to the Borrower, the Administrative Agent, the L/C Issuer and the
Swingline Lender.

 

68

 

(d)                                 Reliance
by Administrative Agent, L/C Issuer and Lenders.  The Administrative Agent, the L/C
Issuer and the Lenders shall be entitled to rely and act upon any notices
(including telephonic Loan 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 thereof, as understood by the recipient,
varied from any confirmation thereof. 
The Borrower shall indemnify the Administrative Agent, the L/C Issuer,
each Lender and the Related Parties of each of them 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
telephonic communications with the Administrative Agent may be recorded by the
Administrative Agent, and each of the parties hereto hereby consents to such
recording.

 

10.03                 No
Waiver; Cumulative Remedies.

 

No failure by the
Borrower, any Lender or the Administrative Agent to exercise, and no delay by
any such Person in exercising, any right, remedy, power or privilege hereunder
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.

 

10.04                 Expenses;
Indemnity; Damage Waiver.

 

(a)                                  Costs
and Expenses.  The Borrower shall pay
(i) all reasonable out-of-pocket expenses incurred by the Administrative
Agent and its Affiliates (including the reasonable fees, charges and
disbursements of counsel for the Administrative Agent), in connection with the
syndication of the credit facilities provided for herein, the preparation,
negotiation, execution, delivery and administration of this Credit Agreement
and the other Credit Documents or any amendments, modifications or waivers of
the provisions hereof or thereof (whether or not the transactions contemplated
hereby or thereby shall be consummated), (ii) all reasonable out-of-pocket
expenses incurred by the L/C Issuer in connection with the issuance, amendment,
renewal or extension of any Letter of Credit or any demand for payment
thereunder and (iii) all reasonable out-of-pocket expenses incurred by the
Administrative Agent, any Lender or the L/C Issuer, including the fees, charges
and disbursements of any counsel for the Administrative Agent, any Lender or
the L/C Issuer, in connection with the enforcement or protection of its rights
(A) in connection with this Credit Agreement and the other Credit
Documents, including its rights under this Section, or (B) in connection
with the Loans made or Letters of Credit issued hereunder, including all such
out-of-pocket expenses incurred during any workout, restructuring or
negotiations in respect of such Loans or Letters of Credit.

 

(b)                                 Indemnification
by the Borrower.  The Borrower shall
indemnify the Administrative Agent (and any sub-agent thereof), each Lender and
the L/C Issuer, and each Related Party of any of the foregoing Persons (each
such Person being called an “Indemnitee”) against, and hold each
Indemnitee harmless from, any and all losses, claims, damages, liabilities and
related expenses (including the fees, charges and disbursements of any counsel
for any Indemnitee, incurred by any Indemnitee or asserted against any
Indemnitee by any third party or by the Borrower arising out of, in connection
with, or as a result of (i) the execution or delivery of this Credit Agreement,
any other Credit 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 Letter of Credit or the use or
proposed use of the proceeds therefrom (including any refusal by the L/C Issuer
to honor a demand for payment under a Letter of Credit if the

 

69

 

documents presented in
connection with such demand do not strictly comply with the terms of such
Letter of Credit) or (iii) 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, 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) arise out of a dispute solely between two or more Indemnitees not
caused by or involving an act or omission by the Borrower or any of its
Subsidiaries, (y) 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 (z) result from a claim brought
by the Borrower against an Indemnitee for breach of such Indemnitee’s
obligations hereunder or under any other Credit Document, if the Borrower has
obtained a final and nonappealable judgment in its favor on such claim as
determined by a court of competent jurisdiction.

 

(c)                                  Reimbursement
by Lenders.  To the extent that the
Borrower for any reason fails to indefeasibly pay any amount required under
subsection (a) or (b) of this Section to be paid by it
to the Administrative Agent (or any sub-agent thereof), the L/C Issuer or any
Related Party of any of the foregoing, each Lender severally agrees to pay to
the Administrative Agent (or any such sub-agent), the L/C Issuer or such
Related Party, as the case may be, such Lender’s Revolving 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) or the L/C Issuer in its capacity
as such, or against any Related Party of any of the foregoing acting for the
Administrative Agent (or any such sub-agent) or L/C Issuer in connection with
such capacity.  The obligations of the
Lenders under this subsection (c) are subject to the provisions of Section 2.11(e).

 

(d)                                 Waiver
of Consequential Damages, Etc.  To
the fullest extent permitted by applicable law, the Borrower shall not assert,
and hereby waives, any claim against any Indemnitee, on any theory of
liability, for special, indirect, consequential or punitive damages (as opposed
to direct or actual damages) arising out of, in connection with, or as a result
of, this Credit Agreement, any other Credit Document or any agreement or
instrument contemplated hereby, the transactions contemplated hereby or
thereby, any Loan or Letter of Credit or the use of the proceeds thereof.  No Indemnitee referred to in subsection (b)
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 Credit Agreement or the other Credit Documents or the
transactions contemplated hereby or thereby.

 

(e)                                  Payments.  All amounts due under this Section shall be
payable not later than ten (10) Business Days after demand therefor.

 

(f)                                    Survival.  The agreements in this Section shall survive
the resignation of the Administrative Agent and the L/C Issuer, the replacement
of any Lender, the termination of the Aggregate Revolving Commitments and the
repayment, satisfaction or discharge of all the other Obligations.

 

10.05                 Payments
Set Aside.

 

To the extent that any
payment by or on behalf of the Borrower is made to the Administrative Agent, the
L/C Issuer or any Lender, or the Administrative Agent, the L/C Issuer or any
Lender exercises its right of setoff, and such payment or the proceeds of such
setoff or any part thereof is subsequently

 

70

 

invalidated, declared to
be fraudulent or preferential, set aside or required (including pursuant to any
settlement entered into by the Administrative Agent, the L/C Issuer or such
Lender in its discretion) to be repaid to a trustee, receiver or any other party,
in connection with any proceeding under any Debtor Relief Law or otherwise,
then (a) to the extent of such recovery, the obligation or part thereof
originally intended to be satisfied shall be revived and continued in full
force and effect as if such payment had not been made or such setoff had not
occurred, and (b) each Lender and the L/C Issuer severally agrees to pay to the
Administrative Agent upon demand its applicable share (without duplication) of
any amount so recovered from or repaid by the Administrative Agent, plus
interest thereon from the date of such demand to the date such payment is made
at a rate per annum equal to the applicable Overnight Rate from time to time in
effect, in the applicable currency of such recovery or payment.  The obligations of the Lenders and the L/C
Issuer under clause (b) of the preceding sentence shall survive the payment in
full of the Obligations and the termination of this Credit Agreement.

 

10.06                 Successors and Assigns.

 

(a)                                  Successors and
Assigns Generally.  The provisions of
this Credit Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns permitted hereby,
except that the Borrower may not assign or otherwise transfer any of its rights
or obligations hereunder without the prior written consent of the
Administrative Agent and each Lender and no Lender may assign or otherwise
transfer any of its rights or obligations hereunder except (i) to an Eligible
Assignee in accordance with the provisions of subsection (b) of this
Section, (ii) by way of participation in accordance with the provisions of
subsection (d) of this Section, or (iii) by way of pledge or assignment
of a security interest subject to the restrictions of subsection (f) of
this Section  (and any other attempted
assignment or transfer by any party hereto shall be null and void).  Nothing in this Credit Agreement, expressed
or implied, shall be construed to confer upon any Person (other than the parties
hereto, their respective successors and assigns permitted hereby, Participants
to the extent provided in subsection (d) of this Section and, to the
extent expressly contemplated hereby, the Related Parties of each of the
Administrative Agent, the L/C Issuer and the Lenders) any legal or equitable
right, remedy or claim under or by reason of this Credit Agreement.

 

(b)                                 Assignments by
Lenders.  Any Lender may at any time
assign to one or more Eligible Assignees all or a portion of its rights and
obligations under this Credit Agreement (including all or a portion of its
Commitment and the Loans (including for purposes of this subsection (b),
participations in L/C Obligations and in Swingline Loans) at the time owing to
it); provided that

 

(i)                                     except
in the case of an assignment of the entire remaining amount of the assigning
Lender’s Commitment and the Loans at the time owing to it or in the case of an
assignment to a Lender or an Affiliate of a Lender or an Approved Fund with
respect to a Lender, the aggregate amount of the Commitment (which for this
purpose includes Loans outstanding thereunder) or, if the Commitment is not
then in effect, the principal outstanding balance of the Loans of the assigning
Lender subject to each such assignment, determined as of the date the
Assignment and Assumption with respect to such assignment is delivered to the
Administrative Agent or, if “Trade Date” is specified in the Assignment and
Assumption, as of the Trade Date, shall not be less than $3,000,000  unless each of the Administrative Agent and, so long as no
Event of Default has occurred and is continuing, the Borrower otherwise
consents (each such consent not to be unreasonably withheld or delayed);

 

(ii)                                  each
partial assignment shall be made as an assignment of a proportionate part of
all the assigning Lender’s rights and obligations under this Credit Agreement
with respect to the

 

71

 

Loans or the
Commitment assigned, except that this clause (ii) shall not apply to rights in
respect of Swingline Loans;

 

(iii)                               any
assignment of a Commitment must be approved by the Administrative Agent, the
L/C Issuer and the Swingline Lender unless the Person that is the proposed
assignee is itself a Lender (whether or not the proposed assignee would
otherwise qualify as an Eligible Assignee); and

 

(iv)                              the
parties to each assignment shall execute and deliver to the Administrative
Agent an Assignment and Assumption, together with a processing and recordation
fee of $3,500, and the Eligible Assignee, if it shall not be a Lender, shall
deliver to the Administrative Agent an Administrative Questionnaire.

 

Subject to
acceptance and recording thereof by the Administrative Agent pursuant to
subsection (c) of this Section, from and after the effective date
specified in each Assignment and Assumption, the Eligible Assignee thereunder
shall be a party to this Credit Agreement and, to the extent of the interest
assigned by such Assignment and Assumption, have the rights and obligations of
a Lender under this Credit Agreement, and the assigning Lender thereunder
shall, to the extent of the interest assigned by such Assignment and
Assumption, be released from its obligations under this Credit Agreement (and,
in the case of an Assignment and Assumption covering all of the assigning
Lender’s rights and obligations under this Credit Agreement, such Lender shall
cease to be a party hereto) but shall continue to be entitled to the benefits
of Sections 3.01, 3.04, 3.05, and 10.04 with
respect to facts and circumstances occurring prior to the effective date of
such assignment.  Upon request, the
Borrower (at its expense) shall execute and deliver a Note to the assignee
Lender.  Any assignment or transfer by a
Lender of rights or obligations under this Credit Agreement that does not
comply with this subsection shall be treated for purposes of this Credit
Agreement as a sale by such Lender of a participation in such rights and
obligations in accordance with subsection (d) of this Section.

 

(c)                                  Register.  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 for the recordation of the names and addresses of the Lenders, and the
Commitments of, and principal amounts of the Loans and L/C Obligations owing
to, each Lender pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be
conclusive, and the Borrower, the Administrative Agent and the Lenders may
treat each Person whose name is recorded in the Register pursuant to the terms
hereof as a Lender hereunder for all purposes of this Credit Agreement,
notwithstanding notice to the contrary. 
The Register shall be available for inspection by the Borrower and the
L/C Issuer at any reasonable time and from time to time upon reasonable prior
notice.  In addition, at any time that a
request for a consent for a material or substantive change to the Credit
Documents is pending, any Lender wishing to consult with other Lenders in
connection therewith may request and receive from the Administrative Agent a
copy of the Register.

 

(d)                                 Participations.  Any Lender may at any time, without the
consent of, or notice to, the Borrower or the Administrative Agent, sell
participations to any Person (other than a natural person or the Borrower or
any of the Borrower’s Affiliates or Subsidiaries) (each, a “Participant”)
in all or a portion of such Lender’s rights and/or obligations under this
Credit Agreement (including all or a portion of its Commitment and/or the Loans
(including such Lender’s participations in L/C Obligations and/or Swingline
Loans) owing to it); provided that (i) such Lender’s obligations
under this Credit Agreement shall remain unchanged, (ii) such Lender shall
remain solely responsible to the other parties hereto for the performance of
such obligations and (iii) the Borrower, the Administrative Agent, the
Lenders and the

 

72

 

L/C Issuer shall
continue to deal solely and directly with such Lender in connection with such
Lender’s rights and obligations under this Credit Agreement.

 

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 Credit Agreement
and to approve any amendment, modification or waiver of any provision of this
Credit Agreement; provided that such agreement or instrument may provide
that such Lender will not, without the consent of the Participant, agree to any
amendment, waiver or other modification described in the first proviso to Section
10.01 that affects such Participant. 
Subject to subsection (e) of this Section, the Borrower agrees
that each Participant shall be entitled to the benefits of Sections 3.01,
3.04 and 3.05  to the same
extent as if it were a Lender and had acquired its interest by assignment
pursuant to subsection (b) of this Section.  To the extent permitted by law, each
Participant also shall be entitled to the benefits of Section 10.08  as though it were a Lender, provided such
Participant agrees to be subject to Section 2.12 as though it were a
Lender.

 

(e)                                  Limitation upon
Participant Rights.  A Participant
shall not be entitled to receive any greater payment under Section 3.01
or 3.04  than the applicable Lender would
have been entitled to receive with respect to the participation sold to such
Participant.  A Participant that would be
a Foreign Lender if it were a Lender shall not be entitled to the benefits of Section 3.01
unless the Borrower is notified of the participation sold to such Participant
and such Participant agrees, for the benefit of the Borrower, to comply with Section
3.01(e) as though it were a Lender.

 

(f)                                    Certain Pledges.  Any Lender may at any time pledge or assign a
security interest in all or any portion of its rights under this Credit
Agreement (including under its Note(s), if any) to secure obligations of such
Lender, including any pledge or assignment to secure obligations to a Federal
Reserve Bank; provided that no such pledge or assignment shall release
such Lender from any of its obligations hereunder or substitute any such
pledgee or assignee for such Lender as a party hereto.

 

(g)                                 Electronic
Execution of Assignments.  The words
“execution”, “signed”, “signature”, and words of like import in any Assignment
and Assumption shall be deemed to include electronic signatures or the keeping
of records in electronic form, each of which shall be of the same legal effect,
validity or enforceability as a manually executed signature or the use of a
paper-based recordkeeping system, as the case may be, to the extent and as
provided for in any applicable law, including the Federal Electronic Signatures
in Global and National Commerce Act, the New York State Electronic Signatures
and Records Act, or any other similar state laws based on the Uniform
Electronic Transactions Act.

 

(h)                                 Resignation
as L/C Issuer or Swingline Lender after Assignment.  Notwithstanding anything to the contrary
contained herein, if at any time Bank of America assigns all of its Commitment
and Loans pursuant to subsection (b) above, Bank of America may, (i)
upon thirty (30) days’ notice to the Borrower and the Lenders, resign as L/C
Issuer and/or (ii) upon thirty (30) days’ notice to the Borrower, resign as
Swingline Lender.  In the event of any
such resignation as L/C Issuer or Swingline Lender, the Borrower shall be
entitled to appoint from among the Lenders a successor L/C Issuer or Swingline
Lender hereunder; provided, however, that no failure by the Borrower
to appoint any such successor shall affect the resignation of Bank of America
as L/C Issuer or Swingline Lender, as the case may be.  If Bank of America resigns as L/C Issuer, it
shall retain all the rights and obligations of the L/C Issuer hereunder with
respect to all Letters of Credit outstanding as of the effective date of its
resignation as L/C Issuer and all L/C Obligations with respect thereto
(including the right to require the Lenders to make Base Rate Committed Loans
or fund risk participations in Unreimbursed Amounts pursuant to Section
2.03(c)).  If Bank of America resigns
as Swingline Lender, it shall retain all the rights of the Swingline Lender
provided for hereunder with respect to Swingline Loans made by it and
outstanding as of the effective

 

73

 

date of such resignation,
including the right to require the Lenders to make Base Rate Loans or fund risk
participations in outstanding Swingline Loans pursuant to Section 2.04(b).

 

10.07                 Treatment of Certain Information;
Confidentiality.

 

Each of the
Administrative Agent, the Lenders and the L/C Issuer agrees to maintain the
confidentiality of the Information (as defined below), except that Information
may be disclosed (a) to its Affiliates and to its and its Affiliates’
respective partners, directors, officers, employees, agents, advisors and
representatives (it being understood that all Persons to whom such disclosure
is made will be informed of the confidential nature of such Information and instructed
to keep such Information confidential), (b) to the extent requested by any
regulatory authority purporting to have jurisdiction over it (including any
self-regulatory authority, such as the National Association of Insurance
Commissioners), (c) to the extent required by applicable laws or regulations or
by any subpoena or similar legal process, (d) to any other party hereto, (e) in
connection with the exercise of any remedies hereunder or under any other
Credit Document or any action or proceeding relating to this Credit Agreement
or any other Credit Document or the enforcement of rights hereunder or
thereunder, (f) subject to an agreement containing the provisions of this
Section, to (i) any assignee of or Participant in, or any prospective assignee
of or Participant in, any of its rights or obligations under this Credit
Agreement or (ii) any actual or prospective counterparty (or its advisors) to
any swap or derivative transaction relating to the Borrower and its
obligations, (g) with the consent of the Borrower or (h) to the extent such
Information (x) becomes publicly available other than as a result of a breach
of this Section or (y) becomes available to the Administrative Agent, any
Lender, the L/C Issuer or any of their respective Affiliates on a
nonconfidential basis from a source other than the Borrower.

 

For purposes of this
Section, “Information” means all information received from the Borrower
or any Subsidiary relating to the Borrower or any Subsidiary or any of their
respective businesses, other than any such information that is available to the
Administrative Agent, any Lender or the L/C Issuer on a nonconfidential basis
prior to disclosure by the Borrower or any Subsidiary, provided that, in
the case of information received from the Borrower or any Subsidiary after the
date hereof, such information is clearly identified at the time of delivery as
confidential.  Any Person required to
maintain the confidentiality of Information as provided in this Section shall
be considered to have complied with its obligation to do so if such Person has
exercised the same degree of care to maintain the confidentiality of such
Information as such Person would accord to its own confidential information.

 

10.08                 Right of
Setoff.

 

If an Event of Default
shall have occurred and be continuing, each Lender, the L/C Issuer and each of
their respective Affiliates is hereby authorized at any time and from time to
time, to the fullest extent permitted by applicable law, to set off and apply
any and all deposits (general or special, time or demand, provisional or final,
in whatever currency) at any time held and other obligations (in whatever
currency) at any time owing by such Lender, the L/C Issuer or any such
Affiliate to or for the credit or the account of the Borrower against any and
all of the obligations of such Borrower now or hereafter existing under this
Credit Agreement or any other Credit Document to such Lender or the L/C Issuer,
irrespective of whether or not such Lender or the L/C Issuer shall have made any
demand under this Credit Agreement or any other Credit Document and although
such obligations of such Borrower  may be
contingent or unmatured or are owed to a branch or office of such Lender or the
L/C Issuer different from the branch or office holding such deposit or
obligated on such indebtedness.  The
rights of each Lender, the L/C Issuer and their respective Affiliates under
this Section are in addition to other rights and remedies (including other
rights of setoff) that such Lender, the L/C Issuer or their respective
Affiliates may have.  Each

 

74

 

Lender and the L/C Issuer
agrees to notify the Borrower and the Administrative Agent promptly after any
such setoff and application, provided that the failure to give such
notice shall not affect the validity of such setoff and application.

 

10.09                 Interest
Rate Limitation.

 

Notwithstanding anything
to the contrary contained in any Credit Document, the interest paid or agreed
to be paid under the Credit Documents shall not exceed the maximum rate of
non-usurious interest permitted by applicable Law (the “Maximum Rate”).  If the Administrative Agent or any Lender
shall receive interest in an amount that exceeds the Maximum Rate, the excess
interest shall be applied to the principal of the Loans or, if it exceeds such
unpaid principal, refunded to the Borrower. 
In determining whether the interest contracted for, charged, or received
by the Administrative Agent or a Lender exceeds the Maximum Rate, such Person
may, to the extent permitted by applicable Law, (a) characterize any payment
that is not principal as an expense, fee, or premium rather than interest, (b)
exclude voluntary prepayments and the effects thereof, and (c) amortize,
prorate, allocate, and spread in equal or unequal parts the total amount of
interest throughout the contemplated term of the Obligations hereunder.

 

10.10                 Counterparts; Integration;
Effectiveness.

 

This Credit Agreement may
be executed in counterparts (and by different parties hereto in different
counterparts), each of which shall constitute an original, but all of which
when taken together shall constitute a single contract.  This Credit Agreement and the other Credit
Documents constitute the entire contract among the parties relating to the
subject matter hereof and supersede any and all previous agreements and
understandings, oral or written, relating to the subject matter hereof.  Except as provided in Section 4.01,
this Credit Agreement shall become effective when it shall have been executed
by the Administrative Agent and when the Administrative Agent shall have
received counterparts hereof that, when taken together, bear the signatures of
each of the other parties hereto. 
Delivery of an executed counterpart of a signature page of this Credit
Agreement by telecopy shall be effective as delivery of a manually executed
counterpart of this Credit Agreement.

 

10.11                 Survival of Representations and
Warranties.

 

All representations and
warranties made hereunder and in any other Credit Document or other document
delivered pursuant hereto or thereto or in connection herewith or therewith
shall survive the execution and delivery hereof and thereof.  Such representations and warranties have been
or will be relied upon by the Administrative Agent and each Lender, regardless
of any investigation made by the Administrative Agent or any Lender or on their
behalf and notwithstanding that the Administrative Agent or any Lender may have
had notice or knowledge of any Default at the time of any Credit Extension, and
shall continue in full force and effect as long as any Loan or any other
Obligation hereunder shall remain unpaid or unsatisfied or any Letter of Credit
shall remain outstanding.

 

10.12                 Severability.

 

If any provision of this
Credit Agreement or the other Credit Documents is held to be illegal, invalid
or unenforceable, (a) the legality, validity and enforceability of the
remaining provisions of this Credit Agreement and the other Credit Documents
shall not be affected or impaired thereby and (b) the parties shall endeavor in
good faith negotiations to replace the illegal, invalid or unenforceable
provisions with valid provisions the economic effect of which comes as close as
possible to that of the illegal, invalid

 

75

 

or unenforceable
provisions.  The invalidity of a
provision in a particular jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

 

10.13                 Replacement
of Lenders.

 

If any Lender requests
compensation under Section 3.04, or if the Borrower is required to pay
any additional amount to any Lender or any Governmental Authority for the
account of any Lender pursuant to Section 3.01, or if any Lender is a
Defaulting Lender, then the Borrower may, at its sole expense and effort, upon
notice to such Lender and the Administrative Agent, require such Lender to
assign and delegate, without recourse (in accordance with and subject to the
restrictions contained in, and consents required by, Section 10.06), all
of its interests, rights and obligations under this Credit Agreement and the
related Credit Documents to an assignee that shall assume such obligations
(which assignee may be another Lender, if a Lender accepts such assignment), provided
that:

 

(a)                                  the
Borrower shall have paid to the Administrative Agent the assignment fee
specified in Section 10.06(b);

 

(b)                                 such
Lender shall have received payment of an amount equal to the outstanding
principal of its Loans and L/C Advances, accrued interest thereon, accrued fees
and all other amounts payable to it hereunder and under the other Credit
Documents (including any amounts under Section 3.05) from the assignee
(to the extent of such outstanding principal and accrued interest and fees) or
the Borrower (in the case of all other amounts);

 

(c)                                  in
the case of any such assignment resulting from a claim for compensation under Section
3.04 or payments required to be made pursuant to Section 3.01, such
assignment will result in a reduction in such compensation or payments
thereafter; and

 

(d)                                 such
assignment does not conflict with applicable Laws.

 

A Lender shall not be
required to make any such assignment or delegation if, prior thereto, as a
result of a waiver by such Lender or otherwise, the circumstances entitling the
Borrower to require such assignment and delegation cease to apply.

 

10.14                 Governing
Law; Jurisdiction; Etc.

 

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

 

(b)                                 SUBMISSION
TO JURISDICTION.  THE BORROWER
IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE
NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK SITTING IN THE
BOROUGH OF MANHATTAN AND OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN
DISTRICT OF SUCH STATE AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION
OR PROCEEDING ARISING OUT OF OR RELATING TO THIS CREDIT AGREEMENT OR ANY OTHER
CREDIT DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF
THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN
RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH
NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN
SUCH FEDERAL COURT.

 

76

 

EACH OF THE PARTIES
HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE
CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT
OR IN ANY OTHER MANNER PROVIDED BY LAW. 
NOTHING IN THIS CREDIT AGREEMENT OR IN ANY OTHER CREDIT DOCUMENT SHALL
AFFECT ANY RIGHT THAT THE ADMINISTRATIVE AGENT, ANY LENDER OR THE L/C ISSUER
MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS CREDIT
AGREEMENT OR ANY OTHER CREDIT DOCUMENT AGAINST THE BORROWER OR ITS PROPERTIES
IN THE COURTS OF ANY JURISDICTION.

 

(c)                                  WAIVER
OF VENUE.  THE BORROWER IRREVOCABLY
AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY
ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS CREDIT AGREEMENT OR ANY
OTHER CREDIT DOCUMENT IN ANY COURT REFERRED TO IN PARAGRAPH (B) OF THIS
SECTION.  EACH OF THE PARTIES HERETO
HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR
PROCEEDING IN ANY SUCH COURT.

 

(d)                                 SERVICE
OF PROCESS.  EACH PARTY HERETO
IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES
IN SECTION 10.02.  NOTHING IN
THIS CREDIT AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE
PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

 

10.15                 Waiver of
Jury Trial.

 

EACH PARTY HERETO HEREBY
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY
RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR
INDIRECTLY ARISING OUT OF OR RELATING TO THIS CREDIT AGREEMENT OR ANY OTHER
CREDIT DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER
BASED ON CONTRACT, TORT OR ANY OTHER THEORY). 
EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR
ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH
OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO
HAVE BEEN INDUCED TO ENTER INTO THIS CREDIT AGREEMENT AND THE OTHER CREDIT
DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION.

 

10.16                 USA
PATRIOT Act Notice.

 

Each Lender that is
subject to the Act (as hereinafter defined) 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, which
information includes the name and address of the Borrower and other information
that will allow such Lender or the Administrative Agent, as applicable, to
identify such Borrower in accordance with the Act.

 

77

 

10.17                 Judgment Currency.

 

If, for the purposes of
obtaining judgment in any court, it is necessary to convert a sum due hereunder
or any other Credit Document in one currency into another currency, the rate of
exchange used shall be that at which in accordance with normal banking
procedures the Administrative Agent could purchase the first currency with such
other currency on the Business Day preceding that on which final judgment is
given.  The obligation of the Borrower in
respect of any such sum due from it to the Administrative Agent or the Lenders
hereunder or under the other Credit Documents shall, notwithstanding any
judgment in a currency (the “Judgment Currency”) other than that in
which such sum is denominated in accordance with the applicable provisions of
this Credit Agreement (the “Agreement Currency”), be discharged only to
the extent that on the Business Day following receipt by the Administrative
Agent of any sum adjudged to be so due in the Judgment Currency, the
Administrative Agent may in accordance with normal banking procedures purchase
the Agreement Currency with the Judgment Currency.  If the amount of the Agreement Currency so
purchased is less than the sum originally due to the Administrative Agent from
the Borrower in the Agreement Currency, the Borrower agrees, as a separate
obligation and notwithstanding any such judgment, to indemnify the
Administrative Agent or the Person to whom such obligation was owing against
such loss.  If the amount of the
Agreement Currency so purchased is greater than the sum originally due to the
Administrative Agent in such currency, the Administrative Agent agrees to
return the amount of any excess to the Borrower (or to any other Person who may
be entitled thereto under applicable law).

 

10.18                 ENTIRE
AGREEMENT.

 

THIS
CREDIT AGREEMENT AND THE OTHER CREDIT DOCUMENTS REPRESENT THE FINAL AGREEMENT
AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG
THE PARTIES.

 

78

 

IN WITNESS WHEREOF, the
parties hereto have caused this Credit Agreement to be duly executed as of the
date first above written.

 

 

	
  BORROWER

  	
  :

  	
  SABRE INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James E. Murphy

  	
   

  
	
   

  	
  Name: James E. Murphy

  
	
   

  	
  Title: SVP, Corporate
  Development & Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [Signatures Continue on
  Following Pages]

  

 

 

	
  ADMINISTRATIVE AGENT

  	
  :

  	
  BANK OF AMERICA, N.A.,

  
	
   

  	
  as Administrative Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Anne Brooke Lazorik

  	
   

  
	
   

  	
  Name: Anne Brooke
  Lazorik

  
	
   

  	
  Title: Assistant Vice
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [Signatures Continue on
  Following Pages]

  

 

 

	
  LENDERS

  	
  :

  	
  BANK OF AMERICA, N.A.,

  
	
   

  	
  as L/C Issuer,
  Swingline Lender and as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Robert Mauriello

  	
   

  
	
   

  	
  Name: Robert Mauriello

  
	
   

  	
  Title: Principal

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [Signatures Continue on
  Following Pages]

  

 

 

	
   

  	
  CITIBANK, N.A.,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Robert H. Riley III

  	
   

  
	
   

  	
  Name: Robert H. Riley
  III

  
	
   

  	
  Title: Senior Vice
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [Signatures Continue on
  Following Pages]

  

 

 

	
   

  	
  SUMITOMO MITSUI BANKING CORP.,

  
	
   

  	
  NEW YORK,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Gaylord C. Holmes

  	
   

  
	
   

  	
  Name: Gaylord C. Holmes

  
	
   

  	
  Title: Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [Signatures Continue on
  Following Pages]

  

 

 

	
   

  	
  UFJ BANK LIMITED,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/John T. Feeney

  	
   

  
	
   

  	
  Name: John T. Feeney

  
	
   

  	
  Title: Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [Signatures Continue on
  Following Pages]

  

 

 

	
   

  	
  BANK ONE, NA,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/David I. Shaw

  	
   

  
	
   

  	
  Name: David I. Shaw

  
	
   

  	
  Title: First Vice
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [Signatures Continue on
  Following Pages]

  

 

 

	
   

  	
  JPMORGAN CHASE BANK,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Mae Reeves

  	
   

  
	
   

  	
  Name: Mae Reeves

  
	
   

  	
  Title: Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [Signatures Continue on
  Following Pages]

  

 

 

	
   

  	
  LONE STAR BANK,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Melinda N. Jackson

  	
   

  
	
   

  	
  Name: Melinda N.
  Jackson

  
	
   

  	
  Title: Senior Vice
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [Signatures Continue on
  Following Pages]

  

 

 

	
   

  	
  THE BANK OF NEW YORK,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/David Sunderwith

  	
   

  
	
   

  	
  Name: David Sunderwith

  
	
   

  	
  Title: Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [Signatures Continue on
  Following Pages]

  

 

 

	
   

  	
  BANCA NAZIONALE DEL LAVORO SPA,

  
	
   

  	
  NEW YORK BRANCH,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Juan
  Cortes              /s/Francesco
  Di Mario

  	
   

  
	
   

  	
  Name: Juan
  Cortes            Francesco
  Di Mario

  
	
   

  	
  Title: Vice
  President          Vice
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [Signatures Continue on
  Following Page]

  

 

 

	
   

  	
  COMERICA BANK,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Jeff P. Geisbauer

  	
   

  
	
   

  	
  Name:  Jeff P. Geisbauer

  
	
   

  	
  Title: Corporate
  Banking Office

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [End of Signature
  Pages]

  

 

 

Exhibit 2.01(d)

 

FORM OF REVOLVING
LENDER JOINDER AGREEMENT

 

THIS REVOLVING LENDER
JOINDER AGREEMENT (this “Agreement”), dated as of
              ,
200    , to the Credit Agreement referenced below is by and
among [NEW REVOLVING LENDER] (the “New Revolving Lender”), SABRE INC., a
Delaware corporation (the “Borrower”), and BANK OF AMERICA, N.A., as
Administrative Agent.  Capitalized terms
used but not otherwise defined herein have the meanings provided in the Credit
Agreement.

 

W I T N E S S E T
H

 

WHEREAS, pursuant to that
Credit Agreement, dated as of June      , 2004 (as
amended and modified from time to time, the “Credit Agreement”), among
the Borrower, the Lenders and the Administrative Agent, the Lenders have agreed
to provide the Borrower with a revolving credit facility;

 

WHEREAS, pursuant to Section
2.01(d) of the Credit Agreement, the Borrower has requested that the New
Revolving Lender provide an additional Revolving Commitment under the Credit
Agreement; and

 

WHEREAS, the New
Revolving Lender has agreed to provide the additional Revolving Commitment on
the terms and conditions set forth herein and to become a “Lender” under the
Credit Agreement in connection therewith;

 

NOW, THEREFORE, IN
CONSIDERATION of the premises and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

 

1.                                       The
New Revolving Lender hereby agrees to provide a Revolving Commitment to the
Borrower during the Commitment Period in an amount up to its Revolving
Committed Amount set forth on Schedule 2.01 attached hereto. The New
Revolving Lender’s Revolving Commitment Percentage shall be as set forth on Schedule
2.01 attached hereto.  The existing
Schedule 2.01 to the Credit Agreement shall be deemed to be amended to include
the information set forth on Schedule 2.01 attached hereto.

 

2.                                       The
New Revolving Lender shall be deemed to have purchased, without recourse, a
risk participation from the L/C Issuer in all Letters of Credit issued or
existing under the Credit Agreement and the obligations arising thereunder in
an amount equal to its Revolving Commitment Percentage of the obligations under
such Letters of Credit, and shall absolutely, unconditionally and irrevocably
assume, as primary obligor and not as surety, and be obligated to pay to the
L/C Issuer and discharge when due, its Revolving Commitment Percentage of the obligations
arising under such Letters of Credit.

 

3.                                       The
New Revolving Lender (a) represents and warrants that (i) it has full
power and authority, and has taken all action necessary, to execute and deliver
this Agreement and to consummate the transactions contemplated hereby and to
become a Lender under the Credit Agreement, (ii) it meets all requirements
of an Eligible Assignee under the Credit Agreement, (iii) from and after
the date hereof, it shall be bound by the provisions of the Credit Agreement as
a Lender thereunder and shall have the obligations of a Lender thereunder,
(iv) it has received a copy of the Credit Agreement, together with copies
of the most recent financial statements delivered pursuant to Section 6.04
thereof and such other documents and information as it has deemed appropriate
to make its own credit analysis and decision to enter into this Agreement and,
based on such information, has made such analysis and decision independently
and without reliance on the Administrative Agent or any other Lender and
(v) if it is a Foreign Lender, attached hereto is any documentation
required to be delivered by it pursuant to the terms

 

 

of the Credit Agreement,
duly completed and executed by the New Lender; and (b) agrees that
(i) it will, independently and without reliance on the Administrative
Agent or any other Lender, and based on such documents and information as it
shall deem appropriate at the time, continue to make its own credit decisions
in taking or not taking action under the Credit Documents and (ii) it will
perform in accordance with their terms all of the obligations which by the
terms of the Credit Documents are required to be performed by it as a Lender.

 

4.                                       The
Borrower agrees that, as of the date hereof, the New Revolving Lender shall (a)
be a party to the Credit Agreement and the other Credit Documents, (b) be a
“Lender” for all purposes of the Credit Agreement and the other Credit
Documents and (c) have the rights and obligations of a Lender under the Credit
Agreement and the other Credit Documents.

 

5.                                       The
address of the New Revolving Lender for purposes of all notices and other
communications is as set forth on the Administrative Questionnaire delivered by
the New Revolving Lender to the Administrative Agent.

 

6.                                       This
Agreement may be executed in any number of counterparts and by the various
parties hereto in separate counterparts, each of which when so executed shall
be deemed to be an original and all of which taken together shall constitute
one contract.  Delivery of an executed
counterpart of this Agreement by telecopier shall be effective as delivery of a
manually executed counterpart of this Agreement.

 

7.                                       This
Agreement shall be governed by and construed and interpreted in accordance with
the laws of the State of New York.

 

[remainder of page
intentionally left blank]

 

 

IN WITNESS WHEREOF, each
of the parties hereto has caused this Agreement to be executed by a duly
authorized officer as of the date first above written.

 

	
  NEW REVOLVING LENDER

  	
  :

  	
  [NEW REVOLVING LENDER]

  	 

	
   

  	
   

  	 

	
   

  	
  By:

  	
   

  	
   

  	 

	
   

  	
  Name:

  	 

	
   

  	
  Title:

  	 

	
   

  	
   

  	 

	
  BORROWER

  	
  :

  	
  SABRE INC., a Delaware
  corporation

  	 

	
   

  	
   

  	 

	
   

  	
  By:

  	
   

  	
   

  	 

	
   

  	
  Name:

  	 

	
   

  	
  Title:

  	 

	
   

  	
   

  	 

	
   

  	
   

  	 

	
  Accepted and Agreed

  	
  :

  	
   

  
	
   

  	
   

  	 

	
  BANK OF AMERICA, N.A.,

  	
   

  	 

	
  as Administrative Agent

  	
   

  	 

	
   

  	
   

  	 

	
  By:

  	
   

  	
   

  	
   

  	 

	
  Name:

  	
   

  	 

	
  Title:

  	
   

  	 

											

 

 

Exhibit 2.02

 

FORM OF LOAN
NOTICE

 

Date: 
                           

 

To:                              BANK OF AMERICA, N.A., as
Administrative Agent

 

Re:                               Credit
Agreement, dated as of June     , 2004 (as amended,
restated, extended, supplemented or otherwise modified in writing from time to
time, the “Credit Agreement”), among SABRE INC., a Delaware corporation
(the “Borrower”), the Lenders party thereto and BANK OF AMERICA, N.A., as Administrative Agent.  Capitalized terms used but not otherwise
defined herein have the meanings provided in the Credit Agreement.

 

Ladies
and Gentlemen:

 

1.                                       The
undersigned hereby requests the following:

 

	
  o  a Swingline Loan Borrowing

  	
   

  	
  o  a Revolving Loan Borrowing

  
	
   

  	
   

  	
   

  
	
  o  a Revolving Loan continuation

  	
   

  	
  o  a Revolving Loan Conversion

  

 

2.                                       Date
of Borrowing (which shall be a Business Day):                                                                                        

 

3.                                       Amount
of Borrowing: 
                                                                                                                                     

 

	
  4.

  	
   

  	
  Currency:

  	
  o  Dollars (required for a Swingline Loan)

  	
   

  	
  o  Australian Dollars

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o  British Pound Sterling

  	
  o  Canadian Dollars

  	
   

  	
  o  Euro

  	
  o  Yen

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o  Other (specify request)
                               

  	
   

  	
   

  	
   

  
								

 

	
  5.

  	
   

  	
  Type of Loan requested
  (select one):

  	
   

  	
  o  Base Rate Loan (required for a Swingline
  Loan)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  o  Eurocurrency Rate Loan

  
	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Interest Period for
  Eurocurrency Rate Loans (select one):

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o  One Month

  	
   

  	
  o  Two Months

  	
  o  Three Months

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o  Six Months

  	
   

  	
  o  Twelve Months

  
								

 

The Borrower
hereby represents and warrants that (a) this Request for Credit Extension
complies with the proviso at the end of the first sentence of Section
2.01(a), with respect to Revolving Loans, and Section 2.01(c), with
respect to a new Swingline Loan, and with the requirements of Section 2.02
of the Credit Agreement and (b) the representations and warranties contained in
Section 4.02(a) and (b) of the Credit Agreement have been
satisfied on and as of the date of the requested Credit Extension.

 

[Signature on Following
Page]

 

 

	
   

  	
  SABRE INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

Exhibit 2.13-1

 

FORM OF REVOLVING
NOTE

June
     , 2004

 

FOR VALUE RECEIVED, the
undersigned (the “Borrower”), hereby promises to pay to
                                       ,
its successors or registered assigns (the “Lender”), the Lender’s
Revolving Committed Amount, or if less, the aggregate unpaid principal amount
of all Revolving Loans owing to the Lender under the Credit Agreement, dated as
of June      , 2003 (as amended, restated, extended,
supplemented or otherwise modified, the “Credit Agreement”), among SABRE
INC., as Borrower, the Lenders party thereto and BANK OF AMERICA, N.A., as
Administrative Agent, in accordance with the provisions thereof.

 

The Borrower promises to
pay interest on the unpaid principal amount of each Revolving Loan from the
date of such Loan until such principal amount is paid in full, at such interest
rates and at such times as provided in the Credit Agreement.  All payments of principal and interest shall
be made to the Administrative Agent for the account of the Lender, at the
Administrative Agent’s Office, in the Applicable Currency in Same Day
Funds.  If any amount is not paid in full
when due hereunder, such unpaid amount shall bear interest, to be paid upon
demand, from the due date thereof until the date of actual payment (before as
well as after judgment) computed at the applicable per annum rate set forth in
the Credit Agreement.

 

This Note is one of the
Notes referred to in the Credit Agreement and is entitled to the benefits
thereof.  This Note may be prepaid in
whole or in part subject to the terms and conditions provided therein.  Revolving Loans  made by the Lender may be evidenced by one or more loan
accounts or records maintained by the Lender in the ordinary course of
business.  The Lender may also attach
schedules to this Note and endorse thereon the date, amount and maturity of its
Loans and payments with respect thereto.

 

Upon the occurrence and
continuation of an Event of Default, all amounts then remaining unpaid on this
Note shall become, or may be declared to be, immediately due and payable as
provided in the Credit Agreement, without diligence, presentment, protest and
demand or notice of protest, demand, dishonor and non-payment of this Note, all
of which are hereby waived by the Borrower, for itself and its successors and
assigns.

 

THIS NOTE SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

	
   

  	
  SABRE INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

Exhibit 2.13-2

 

FORM OF REVOLVING
SWINGLINE NOTE

 

June
     , 2004

 

FOR VALUE RECEIVED, the
undersigned (the “Borrower”), hereby promises to pay to
                                       ,
its successors or registered assigns (the “Swingline Lender”), the
aggregate unpaid principal amount of all Swingline Loans owing to the Swingline
Lender under the Credit Agreement, dated as of June
     , 2004 (as amended, restated, extended,
supplemented or otherwise modified, the “Credit Agreement”), among SABRE
INC., as Borrower, the Lenders party thereto and BANK OF AMERICA, N.A., as
Administrative Agent, in accordance with the provisions thereof.

 

The Borrower promises to
pay interest on the unpaid principal amount of each Swingline  Loan from the date of such Loan until such principal amount
is paid in full, at such interest rates and at such times as provided in the
Credit Agreement.  All payments of
principal and interest shall be made to the Swingline Lender in Dollars in
immediately available funds.  If any
amount is not paid in full when due hereunder, such unpaid amount shall bear
interest, to be paid upon demand, from the due date thereof until the date of
actual payment (before as well as after judgment) computed at the applicable
per annum rate set forth in the Credit Agreement.

 

This Note is one of the
Notes referred to in the Credit Agreement and is entitled to the benefits
thereof.  This Note may be prepaid in
whole or in part subject to the terms and conditions provided therein.  Swingline  Loans  made by the Swingline  Lender may be
evidenced by one or more loan accounts or records maintained by the Swingline
Lender in the ordinary course of business. 
The Swingline Lender may also attach schedules to this Note and endorse
thereon the date, amount and maturity of its Loans and payments with respect
thereto.

 

Upon the occurrence and
continuation of an Event of Default, all amounts then remaining unpaid on this
Note shall become, or may be declared to be, immediately due and payable as
provided in the Credit Agreement, without diligence, presentment, protest and
demand or notice of protest, demand, dishonor and non-payment of this Note, all
of which are hereby waived by the Borrower, for itself and its successors and
assigns.

 

THIS NOTE SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

	
   

  	
  SABRE INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

Exhibit 6.05(d)

 

FORM OF COMPLIANCE
CERTIFICATE

 

[date]

 

 

Financial Statement
Date: 
                                            

 

To:                              Bank
of America, N.A., as Administrative Agent

 

Re:                               Credit
Agreement, dated as of June     , 2004 (as amended,
restated, extended, supplemented or otherwise modified in writing from time to
time, the “Credit Agreement”), among SABRE INC., a Delaware corporation
(the “Borrower”), the Lenders party thereto and BANK OF AMERICA, N.A., as Administrative Agent.  Capitalized terms used but not otherwise
defined herein have the meanings provided in the Credit Agreement.

 

Ladies
and Gentlemen:

 

The undersigned
Responsible Officer hereby certifies as of the date hereof that [he/she] is the
                                                         
of the Borrower, and that, as such, is authorized to execute and deliver this
Compliance Certificate to the Administrative Agent on the behalf of the
Borrower, and that:

 

[Use
following paragraph 1 for fiscal year-end financial statements:]

 

[1.                                   [Attached
hereto as Schedule 1 are the] [The] year-end audited financial
statements required by Section 6.04(a) of the Credit Agreement
for the fiscal year of the Parent and its Consolidated Subsidiaries ended as of
the date set forth above, together with the report and opinion of an
independent certified public accountant required by such section [,have been
electronically delivered to the Administrative Agent pursuant to the conditions
set forth in Section 6.05 of the Credit Agreement].

 

[Use
following paragraph 1 for fiscal quarter-end financial statements:]

 

[1.                                   [Attached
hereto as Schedule 1 are the] [The] unaudited financial statements
required by Section 6.04(b) of the Credit Agreement for the
fiscal quarter of the Parent and its Consolidated Subsidiaries ended as of the
date set forth above [have been electronically delivered to the Administrative
Agent pursuant to the conditions set forth in Section 6.05 of the Credit
Agreement].  Such financial statements
fairly present the financial condition, results of income or operations,
shareholders’ equity and cash flows of the Consolidated Group in accordance
with GAAP as at such date and for such period, subject only to normal year-end
audit adjustments and the absence of footnotes.]

 

2.                                       The
financial covenant analyses and information set forth on Schedule [1][2]
attached hereto are true, accurate and complete on and as of the date of this
Compliance Certificate.  [The Borrower is
in compliance with each of the financial covenants contained in Section 7.05.]  [The Borrower is not in compliance with the
following financial covenants contained in Section 7.05:]

 

3.                                       [To
the best knowledge of the undersigned during such fiscal period, no Default or
Event of Default exists with respect to the Borrower.]

 

 

[With respect to the
Borrower, Defaults or Events of Default exist. 
The following is a listing of such Defaults or Events of Default,
including the nature and extent thereof and what action the Borrower proposes
to take with respect thereto:]

 

 

4.                                       Set
forth below is a summary of all material changes in GAAP and in the consistent
application thereof during the period covered by the financial statements
[delivered electronically] [attached hereto] that materially impact the
calculation of the financial covenants contained in Section 7.05,
including a reconciliation between calculation of the financial covenants
before and after giving effect to such changes:

 

 

IN WITNESS WHEREOF, the
undersigned has executed this Compliance Certificate as of
                         ,
200     .

 

	
   

  	
  SABRE INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

[Schedule 1

to Compliance Certificate

 

FINANCIAL
STATEMENTS AND RELATED DELIVERIES

 

 

(attached)]

 

 

Schedule [1][2]

to Compliance Certificate

 

COVENANT
CALCULATIONS

 

 

Exhibit 10.06

 

ASSIGNMENT AND
ASSUMPTION

 

This Assignment and
Assumption (this “Assignment and Assumption”) is dated as of the
Effective Date set forth below and is entered into by and between [Insert name
of Assignor] (the “Assignor”) and [Insert name of Assignee] (the “Assignee”).  Capitalized terms used but not defined herein
have the meanings provided in the Credit Agreement identified below, receipt of
a copy of which is hereby acknowledged by the Assignee.  The Standard Terms and Conditions set forth
in Annex 1 attached hereto are hereby agreed to and incorporated herein
by reference and made a part of this Assignment and Assumption as if set forth
herein in full.

 

For an agreed consideration, the Assignor and the
Assignee hereby agree as follows:  the
Assignor hereby irrevocably sells and assigns to the Assignee, and the Assignee
hereby irrevocably purchases and assumes from the Assignor, subject to and in
accordance with the Standard Terms and Conditions and the Credit Agreement, as
of the Effective Date inserted by the Administrative Agent as contemplated
below (i) all of the Assignor’s rights and obligations in its capacity as a
Lender under the Credit Agreement and any other documents or instruments
delivered pursuant thereto to the extent related to the amount and percentage
interest identified below of all of such outstanding rights and obligations of
the Assignor under the respective facilities identified below (including Letters
of Credit and Swingline Loans within such facilities and guaranties given with
respect to such facilities) and (ii) to the extent permitted to be assigned
under applicable law, all claims, suits, causes of action and any other right
of the Assignor (in its capacity as a Lender) against any Person, whether known
or unknown, arising under or in connection with the Credit Agreement, any other
documents or instruments delivered pursuant thereto or the loan transactions
governed thereby or in any way based on or related to any of the foregoing,
including, but not limited to, contract claims, tort claims, malpractice
claims, statutory claims and all other claims at law or in equity related to
the rights and obligations sold and assigned pursuant to clause (i)
above (the rights and obligations sold and assigned pursuant to clauses (i)
and (ii) above being referred to herein collectively as the “Assigned
Interest”); provided that the Assignor shall remain entitled to the
indemnities set forth in Section 10.04(b) of the Credit Agreement
pursuant to the terms thereof.  Such sale
and assignment is without recourse to the Assignor and, except as expressly
provided in this Assignment, without representation or warranty by the Assignor.

 

	
   

  	
  1.

  	
  Assignor:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.

  	
  Assignee:

  	
   

  	
  [and is an

  
	
   

  	
   

  	
   

  	
  Affiliate/Approved Fund of
  [identify Lender]]

  

 

	
  Borrower:

  	
   

  	
  SABRE INC.

  
	
   

  	
   

  	
   

  
	
  Administrative Agent:

  	
   

  	
  BANK OF AMERICA, N.A.

  
	
   

  	
   

  	
   

  
	
  Credit Agreement:

  	
   

  	
  Credit Agreement dated
  as of June      , 2004 among the Borrower, the
  Lenders

  party thereto and the Administrative Agent.

  
	
   

  	
   

  	
   

  
	
  Published
  CUSIP

  	
   

  	
   

  
	
  Number
  for Credit

  	
   

  	
   

  
	
  Agreement:

  	
   

  	
  78571YAA8

  

 

 

Assigned Interest:

 

	
  Facility

  Assigned

  	
   

  	
  Aggregate

  Committed

  Amount of such

  Facility

  (for all Lenders)

  	
   

  	
  Amount Assigned of

  Commitment/Loans under

  such Facility

  	
   

  	
  Percentage Assigned of

  Commitment/Loans under

  such Facility(1)

  	
   

  	
  Cusip

  Number

  	
   

  
	
  Revolving
  Commitment

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  	
  %

  	
  78571YAA8

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

[3.                                   Trade Date:                                                                                                                    (2)]

 

4.                                       Effective
Date:                                                                                                     (3)

 

[remainder of page
intentionally left blank]

 

(1)
Set forth, to at least 9 decimals, as a percentage of the aggregate
Commitment/Loans of all Lenders under the Facility being assigned.

(2)
To be completed if the Assignor and the Assignee intend that the minimum
assignment amount is to be determined as of the Trade Date.

(3) To be inserted by
Administrative Agent and shall be the effective date of recordation of transfer
in the register therefor.

 

 

The terms set forth in
this Assignment and Assumption are hereby agreed to:

 

	
  ASSIGNOR

  	
  :

  	
  [NAME OF ASSIGNOR]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
  ASSIGNEE

  	
  :

  	
  [NAME OF ASSIGNEE]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
  [Consented to and](4)
  Accepted:

  	
   

  
	
   

  	
   

  
	
  BANK OF AMERICA, N.A.,
  as Administrative Agent

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  
	
   

  	
   

  
	
  [Consented to:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:] (5)

  	
   

  
							

 

(4) To be added only if
the consent of the Administrative Agent is required by the terms of the Credit
Agreement.

(5)
To be added only if the consent of other parties (i.e.,
the Borrower, the L/C Issuer and/or the Swingline Lender) is required by the
terms of the Credit Agreement.

 

 

Annex 1

to Assignment and
Assumption

 

STANDARD TERMS AND
CONDITIONS

 

1.                                       Representations
and Warranties.

 

1.1.                              Assignor.  The Assignor (a) represents and warrants
that (i) it is the legal and beneficial owner of the Assigned Interest,
(ii) the Assigned Interest is free and clear of any lien, encumbrance or
other adverse claim and (iii) it has full power and authority, and has
taken all action necessary, to execute and deliver this Assignment and
Assumption and to consummate the transactions contemplated hereby; and
(b) assumes no responsibility with respect to (i) any statements,
warranties or representations made in or in connection with the Credit
Agreement or any other Credit Document, (ii) the execution, legality,
validity, enforceability, genuineness, sufficiency or value of the Credit
Documents or any collateral thereunder, (iii) the financial condition of
the Borrower, any of its Subsidiaries or Affiliates or any other Person
obligated in respect of any Credit Document or (iv) the performance or
observance by the Borrower, any of its Subsidiaries or Affiliates or any other
Person of any of their respective obligations under any Credit Document.

 

1.2.                              Assignee.  The Assignee (a) represents and warrants
that (i) it has full power and authority, and has taken all action
necessary, to execute and deliver this Assignment and Assumption and to
consummate the transactions contemplated hereby and to become a Lender under
the Credit Agreement, (ii) it meets all requirements of an Eligible
Assignee under the Credit Agreement (subject to receipt of such consents as may
be required under the Credit Agreement), (iii) from and after the Effective
Date, it shall be bound by the provisions of the Credit Agreement as a Lender
thereunder and, to the extent of the Assigned Interest, shall have the
obligations of a Lender thereunder, (iv) it has received a copy of the
Credit Agreement, together with copies of the most recent financial statements
delivered pursuant to Section 6.04 thereof, as applicable, and such
other documents and information as it has deemed appropriate to make its own
credit analysis and decision to enter into this Assignment and Assumption and
to purchase the Assigned Interest on the basis of which it has made such
analysis and decision independently and without reliance on the Administrative
Agent or any other Lender, (v) if it is a Foreign Lender, it has delivered
(or will promptly deliver) to the Administrative Agent and the Borrower any
documentation required to be delivered by it pursuant to the terms of the
Credit Agreement, duly completed and executed by the Assignee; and
(b) agrees that (i) it will, independently and without reliance on
the Administrative Agent, the Assignor or any other Lender, and based on such
documents and information as it shall deem appropriate at the time, continue to
make its own credit decisions in taking or not taking action under the Credit
Documents, and (ii) it will perform in accordance with their terms all of
the obligations which by the terms of the Credit Documents are required to be
performed by it as a Lender.

 

2.                                       Payments.  From and after the Effective Date, the
Administrative Agent shall make all payments in respect of the Assigned
Interest (including payments of principal, interest, fees and other amounts) to
the Assignor for amounts that have accrued to but excluding the Effective Date
and to the Assignee for amounts that accrue from and after the Effective Date.

 

3.                                       General
Provisions.  This Assignment and
Assumption shall be binding upon, and inure to the benefit of, the parties
hereto and their respective successors and assigns.  This Assignment and Assumption may be
executed in any number of counterparts, which together shall constitute one
instrument.  Delivery of an executed
counterpart of a signature page of this Assignment and Assumption by telecopy
shall be effective as delivery of a manually executed counterpart of this
Assignment and Assumption.  THIS
ASSIGNMENT AND ASSUMPTION SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAW OF THE STATE OF NEW YORK.Exhibit 10.1

 

EMPLOYMENT
AGREEMENT

 

THIS AGREEMENT (the “Agreement”) is made as
of the 28th day of May, 2004, by and between NTL Incorporated, a Delaware
corporation (the “Company”), and Bryan H. Hall (the “Executive”).

 

WHEREAS, the Company wishes to employ the
Executive as General Counsel of the Company, effective as of June 15, 2004
(the “Effective Date”);

 

WHEREAS the parties intend that (i) the Executive will reside in the
United Kingdom and perform duties on behalf of the consolidated enterprise as
its General Counsel while present in the United Kingdom, particularly with
regard to the UK business, and (ii) he will travel to the United States where
he will perform duties on behalf of the Company as its General Counsel, in each
case upon the terms and conditions of this Agreement; and

 

WHEREAS, the Executive wishes to accept such
employment and to render services to the Company on the terms and conditions
set forth herein.

 

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

 

1.                                       Effectiveness.  This Agreement shall become effective as of
the Effective Date.

 

2.                                       Employment
Term.

 

(a)                                  The term of the
Executive’s employment pursuant to this Agreement (the “Employment Term”) shall
commence as of the Effective Date and shall end on December 31, 2006,
unless the Employment Term terminates earlier pursuant to

 

 

Section 7 of this Agreement. 
The Employment Term may be extended by mutual agreement of the Company
and the Executive.

 

(b)                                 Title; Duties.  During the Employment Term, the Executive
shall serve the Company as its General Counsel and, in such capacity, shall
perform such duties, services and responsibilities as are commensurate with
such position.  In his capacity as
General Counsel, the Executive shall report to the Chief Executive Officer of
the Company.  During the Employment
Term, the Executive shall be based in the United Kingdom but shall undertake
such overseas travel as is necessary for the proper performance of his duties
hereunder.

 

During the Employment Term, the Executive
shall devote substantially all of his time to the performance of the
Executive’s duties hereunder and will not, without the prior written approval
of the Chief Executive Officer of the Company, engage in any other business
activity which interferes in any material respect with the performance of the
Executive’s duties hereunder or which is in violation of written policies
established from time to time by the Company. 
Nothing contained in this Agreement shall preclude the Executive from
devoting a reasonable amount of time and attention during the Employment Term
to (A) continuing legal education, including, without limitation, any and all
continuing legal education efforts as may be required to remain in good standing
with the bar of the State of New York (which may include attendance at seminars
and other similar events) and (B) (i) serving, with the prior approval of the
Board of Directors of the Company (the “Board”), as a non-executive director,
trustee or member of a committee of any for-profit organizations;

 

2

 

(ii) engaging in charitable and
community activities (including pro bono legal services); and (iii) managing
personal and family investments and affairs, so long as any activities of the
Executive which are within the scope of clauses (A) and (B) (i), (ii) and (iii)
of this Section 2(b) do not interfere in any material respect with the
performance of the Executive’s duties hereunder.

 

3.                                       Monetary
Remuneration.

 

(a)                                  Base Salary.  During the Employment Term, in consideration
of the performance by the Executive of the Executive’s obligations hereunder to
the Company and its parents, subsidiaries, associated and affiliated companies
and joint ventures (collectively, the “Company Affiliated Group”) in any
capacity (including any services as an officer, director, employee, member of
any Board committee or management committee or otherwise), the Company shall
cause to be paid to the Executive an annual salary of £300,000 (the “Base
Salary”), which shall accrue on a daily basis. 
The Base Salary shall be payable in accordance with normal payroll
practices in effect from time to time for senior management generally; provided
that the Executive may designate at one time each year a percentage of cash
compensation, not yet paid, to be paid in U.S. Dollars, with the exchange rate
set on the date that such designation is made by reference to the noon buying
rate as quoted by the Federal Reserve Bank of New York.  The Executive shall receive no additional
compensation for services that he provides to the Company Affiliated Group
other than as set forth herein.

 

(b)                                 Annual Cash Bonus.  During each fiscal year of the Company that
the Employment Term is in effect, the Executive shall be eligible to earn a
cash bonus in

 

3

 

the sole discretion of the Board of (at target) 75%, but subject to a
maximum of 150%, of Base Salary (prorated for any partial fiscal year) (the
“Annual Cash Bonus”).  In addition, the
Company shall cause the Executive to participate in the NTL Group Long Term
Incentive Plan.

 

(c)                                  Expatriate Package.  During
the Employment Term and for any period during which the Executive is required
by the Company to live in the United Kingdom, the Executive and his family
shall have the right to receive the benefits of the Company’s standard
expatriate benefits package (as applied to comparable United States expatriate
employees of the Company), but in any event such benefits will be consistent
with the terms set forth in Appendix A hereto. 
Tax equalization shall be consistent with existing Company Tax
Equalization Policy, attached as Appendix B hereto, and incorporated by
reference.

 

4.                                       Equity-Based
Compensation.

 

During the Employment Term, the Executive
shall be eligible to receive options to purchase common stock of the Company in
addition to the options described in Appendix C at such exercise prices,
schedules as to exercisability and other terms and conditions as determined in
the sole discretion of the Board or its Compensation Committee under the
Amended and Restated NTL 2004 Stock Incentive Plan or successor plan.

 

5.                                       Benefits.

 

(a)                                  During the Employment
Term, the Executive shall be entitled to participate in all of the employee
benefit plans, programs, policies and arrangements

 

4

 

(including fringe benefit and executive perquisite programs and
policies) made available by the Company Affiliate Group to, or for the benefit
of, its executive officers in accordance with the terms thereof as they may be
in effect from time to time, in so far as such benefits are capable of being
provided in the United Kingdom.

 

(b)                                 Reimbursement of
Expenses.  During the Employment
Term, the Company shall cause the Executive to be reimbursed for all reasonable
business expenses incurred by the Executive in carrying out the Executive’s
duties, services and responsibilities under this Agreement, and reasonable
expenses incurred in connection with maintaining admission to practice in the
State of New York, so long as the Executive complies with the general
procedures of the Company Affiliated Group for submission of expense reports,
receipts or similar documentation of such expenses applicable to senior
management generally.

 

6.                                       Vacations.  For each whole and partial calendar year
during the Employment Term, the Executive shall be entitled in addition to
public and statutory holidays to 25 days of paid vacation (prorated for any
partial calendar year, except that for calendar year 2004, the vacation
entitlement shall be 15 days), to be credited and taken in accordance with the
Company’s policy as in effect from time to time for its similarly situated
executives.

 

7.                                       Termination;
Severance.

 

(a)                                  Termination of
Employment.  The Company may
terminate the employment of the Executive in a Termination Without Cause upon
30 days’ written notice to the Executive. 
The Company may (at its discretion) at any time following the

 

5

 

giving of such notice (but not exceeding the length of the notice
given) cease to provide work for the Executive in which event during such
notice period the other provisions of this Agreement shall continue to have
full force and effect but the Executive shall not be entitled to access to any
premises of the Company or any member of the Company Affiliated Group.  In addition, the employment of the Executive
shall automatically terminate as of the date on which the Executive dies or is
Disabled.  For the purposes of this
Agreement, the Executive shall be “Disabled” as of any date if, as of such
date, the Executive has been unable, due to physical or mental incapacity, to
substantially perform the Executive’s duties, services and responsibilities
hereunder either for a period of at least 180 consecutive days or for at least
270 days in any consecutive 365-day period, whichever may be applicable.  Upon termination of the Executive’s
employment during the Employment Term because the Executive dies or is
Disabled, the Company shall cause the Executive (or the Executive’s estate, if
applicable) to be provided with death or disability benefits (as applicable)
pursuant to the plans, programs, policies and arrangements of the Company
Affiliated Group as are then in effect with respect to executive officers.  In addition, upon any termination of the
Executive’s employment during the Employment Term, the Company shall cause the
Executive to be paid any earned but unpaid portion of the Base Salary and Annual
Cash Bonus.  Immediately following
termination of the Executive’s employment for any reason, the Employment Term
shall terminate.

 

(b)                                 Termination Without
Cause; Constructive Termination Without Cause.  Upon a Termination Without Cause or a Constructive Termination
Without

 

6

 

Cause, the Company shall, as soon as practicable following the
Executive’s execution and delivery to the Company of the general release of
claims set forth in Section 7(f) and, following the expiration of any
applicable revocation period, cause the Executive to be paid a lump-sum
severance payment of cash equal to the product of the Base Salary times 3.

 

(c)                                  Termination upon
Non-Renewal of the Employment Term. 
Unless the parties hereto agree otherwise, the Employment Term and the
Executive’s employment with the Company shall end on December 31,
2006.  In connection with such
termination of employment, the Company shall, as soon as practicable following
the Executive’s execution and delivery to the Company of the general release
set forth in Section 7(f) and following the expiration of any applicable
revocation period, cause the Executive to be paid a lump-sum severance payment
of cash equal to one-half of the Base Salary. 
In the event that the Executive has not obtained subsequent employment
(as a common-law employee, as an independent contractor or in any other
capacity) by the end of the six-month period following the date of termination
pursuant to this Section 7(c), then, during each of the six calendar
months after such six-month period, the Company shall cause the Executive to be
paid additional severance pay equal to one-twelfth of the Base Salary;
provided, that the right to additional severance pay pursuant to this sentence
shall terminate as to any unpaid portion of such severance pay when the
Executive first obtains any such subsequent employment.  In addition, in connection with a
termination of employment pursuant to this Section 7(c), the Company shall
cause the Executive to be paid a full annual bonus for the Company’s 2006
fiscal year, determined based on

 

7

 

actual satisfaction of any applicable performance goals during such
fiscal year, with such bonus to be paid promptly after the determination of the
amount thereof and without application of any mandatory deferral provisions or
continued employment requirements.

 

(d)                                 Upon a termination of
the Executive’s employment during the Employment Term by the Company for Cause,
or upon termination by the Executive with 30 days’ written notice given to the
Company (other than a Constructive Termination Without Cause), the Executive
shall be entitled to earned but unpaid Base Salary and benefits through the
date of termination, and the Executive shall not be entitled to any other
payments or benefits.

 

(e)                                  Upon any termination
of the Executive’s employment during the Employment Term other than by the
Company for Cause, the Executive and his family shall be entitled to continued
medical benefits under (and in accordance with the terms of) the Company’s
benefit plans for 1 year from the date of termination.

 

For purposes of this Agreement:

 

(i)                                     A “Constructive
Termination Without Cause” means a termination of the Executive’s
employment during the Employment Term by the Executive following the occurrence
of any of the following events without the Executive’s prior consent: (A)
failure by the Company to continue the Executive as the General Counsel
(excluding a promotion); (B) any material diminution in the Executive’s working
conditions or authority, responsibilities or authorities; (C) assignment to the
Executive of duties that are inconsistent, in a material respect, with the
scope of duties and responsibilities associated with his position as set forth
herein; (D) any materially

 

8

 

adverse change in the reporting structure applicable to the Executive
(but not including a change in the person filling the position to which the
Executive reports); (E) the failure of the Company to maintain commercially
reasonable directors’ and officers’ liability insurance; or (F) a Change in
Control occurs and the Executive is terminated in a Termination Without Cause
during the period commencing on the date of the Change in Control and ending on
the first anniversary thereof.  For
purposes of this Agreement, a “Change in Control” is defined in Appendix D
attached hereto, and incorporated by reference.  The Executive shall give the Company 10 days’ notice of the
Executive’s intention to terminate the Executive’s employment and claim that a
Constructive Termination Without Cause (as defined in (A), (B), (C), (D), (E)
or (F) above) has occurred, and such notice shall describe the facts and
circumstances in support of such claim in reasonable detail.  The Company shall have 10 days thereafter to
cure such facts and circumstances if possible.

 

(ii)                                  A “Termination
Without Cause” means a termination of the Executive’s employment during the
Employment Term by the Company other than for Cause.

 

(iii)                               “Cause” means (x)
the Executive is convicted of, or pleads guilty or nolo contendere to, a
felony or to any crime involving fraud, embezzlement or breach of trust; (y)
the willful or continued failure of the Executive to perform the Executive’s
duties hereunder (other than as a result of physical or mental illness); or (z)
in carrying out the Executive’s duties hereunder, the Executive has engaged in
conduct that constitutes gross neglect or willful misconduct, unless the Executive
believed in 

 

9

 

good faith that such conduct was in, or not opposed to, the best
interests of the Company and each member of the Company Affiliated Group.  The Company shall give the Executive 10 days’
notice of the Company’s intention to terminate the Executive’s employment and
claim that facts and circumstances constituting Cause exist, and such notice
shall describe the facts and circumstances in support of such claim.  The Executive shall have 10 days thereafter
to cure such facts and circumstances if possible.  If the Board reasonably concludes that the Executive has not
cured such facts or circumstances within such time, Cause shall not be deemed
to have been established unless and until the Executive has received a hearing
before the Board (if promptly requested by the Executive) and a majority of the
Board within 10 days of the date of such hearing (if so requested) reasonably
confirms the existence of Cause and the termination of the Executive therefor.

 

(f)                                    Release; Full
Satisfaction.  Notwithstanding any
other provision of this Agreement, no severance pay shall become payable under
this Agreement unless and until the Executive and the Company execute the
general release of claims in form attached as Appendix E, including where
relevant a release of any statutory claims, and such release has become
irrevocable; provided, that the Executive shall not be required to release any
indemnification rights, rights to benefits, and any accrued rights under this
Agreement.  The payments to be provided
to the Executive pursuant to this Section 7 upon termination of the
Executive’s employment shall constitute the exclusive payments in the nature of
severance or termination pay or salary continuation which shall be due to the
Executive upon a termination of employment and shall be in lieu of any other
such

 

10

 

payments under any severance or termination plan, program, policy or
other arrangement which has heretofore been or shall hereafter be established
by any member of the Company Affiliated Group.

 

(g)                                 Resignation.  Upon termination of the Executive’s
employment for any reason, the Executive shall be deemed to have resigned from
all positions with any member of the Company Affiliated Group, as applicable.

 

(h)                                 Cooperation
Following Termination.  Following
termination of the Executive’s employment for any reason, the Executive agrees
to reasonably cooperate with the Company upon the reasonable request of the Board
and to be reasonably available to the Company with respect to matters arising
out of the Executive’s services to any member of the Company Affiliated
Group.  The Company shall cause the
Executive to be reimbursed for, or, at the Executive’s request, cause the
Executive to be advanced, expenses reasonably incurred in connection with such
matters.

 

8.                                       Executive’s
Representation.  The Executive
represents to the Company that the Executive’s execution and performance of
this Agreement does not violate any agreement or obligation (whether or not
written) that the Executive has with or to any person or entity including,
without limitation, any prior employer.

 

9.                                       Executive’s
Covenants.

 

(a)                                  Confidentiality.  The Executive agrees and understands that
the Executive has been, and in the Executive’s position with the Company the
Executive will be, exposed to and receive information relating to the
confidential affairs of the Company Affiliated Group, including, without
limitation, technical information, business and

 

11

 

marketing plans, strategies, customer (or potential customer)
information, other information concerning the products, promotions,
development, financing, pricing, technology, inventions, expansion plans,
business policies and practices of the Company Affiliated Group, whether or not
reduced to tangible form, and other forms of information considered by the
Company Affiliated Group to be confidential and in the nature of trade secrets.  The Executive will not knowingly disclose
such information, either directly or indirectly, to any person or entity
outside the Company Affiliated Group without the prior written consent of the
Company; provided, however, that (i) the Executive shall have no obligation under
this Section 9(a) with respect to any information that is or becomes
publicly known other than as a result of the Executive’s breach of the
Executive’s obligations hereunder and (ii) the Executive may (x) disclose such
information to the extent he determines that so doing is reasonable or
appropriate in the performance of the Executive’s duties or, (y) after giving
prior notice to the Company to the extent practicable, under the circumstances,
disclose such information to the extent required by applicable laws or
governmental regulations or by judicial or regulatory process.  Upon termination of the Executive’s
employment, the Executive shall promptly supply to the Company all property,
keys, notes, memoranda, writings, lists, files, reports, customer lists,
correspondence, tapes, disks, cards, surveys, maps, logs, machines, technical
data and any other tangible product or document which has been produced by,
received by or otherwise submitted to the Executive in the course of or
otherwise in connection with the Executive’s services to the Company Affiliated
Group during or prior to the Employment Term.

 

12

 

(b)                                 Non-Competition and Non-Solicitation.  During
the period commencing upon the Effective Date and ending on the 18-month
anniversary of the termination of the Executive’s employment with the Company,
the Executive shall not, as an employee, employer, stockholder, officer,
director, partner, associate, consultant or other independent contractor,
advisor, proprietor, lender, or in any other manner or capacity (other than
with respect to the Executive’s services to the Company Affiliated Group),
directly or indirectly:

 

(i)                                     perform services
for, or otherwise have any involvement with, any business unit of a person,
where such business unit competes directly or indirectly with any member of the
Company Affiliated Group by owning or operating (x) broadband communications
networks for telephone, cable television or internet services or (y)
transmission networks for television and radio broadcasting, in each case
principally in the United Kingdom or Ireland (the “Core Business”); provided,
however, that this Agreement shall not prohibit the Executive from owning up to
1% of any class of equity securities of one or more publicly traded companies;

 

(ii)                                  hire any individual
who is, or within the 12 months prior to the Executive’s termination was, an
employee of any member of the Company Affiliated Group whose base salary at the
time of hire exceeded £65,000 per year and with whom the Executive had direct
contact (other than on a de minimis basis); or

 

(iii)                               solicit, in competition
with any member of the Company Affiliated Group in the Core Businesses, any
business, or order of business from any person that the Executive knows was a
current or prospective customer of any member of

 

13

 

the Company Affiliated Group during the Executive’s employment and with
whom the Executive had contact;

 

provided, that, notwithstanding the foregoing, the Executive shall not
be deemed to be in violation of clause (i) or clause (iii) of the foregoing by
virtue of (i) rejoining Fried, Frank, Harris, Shriver & Jacobson LLP (or
any of its successors or affiliates) as a partner, member or employee, and
acting in such capacity or (ii) acting as an attorney (as partner, shareholder,
member or employee) or as vice president, director or managing director or
similar position at any other law firm, investment banking firm or consulting
firm, institutional investor or similar entity, in each case so long as the
Executive takes reasonable steps to insulate himself from the businesses and
activities of any such entity that relate to the Core Businesses during any
period that this Section 9(b) is in effect.

 

(c)                                  Proprietary Rights.  The Executive assigns all of the Executive’s
interest in any and all inventions, discoveries, improvements and patentable or
copyrightable works initiated, conceived or made by the Executive, either alone
or in conjunction with others, during the Employment Term and related to the
business or activities of any member of the Company Affiliated Group to the
Company or its nominee.  Whenever
requested to do so by the Company, the Executive shall execute any and all
applications, assignments or other instruments that the Company shall in good
faith deem necessary to apply for and obtain trademarks, patents or copyrights
of the United States or any foreign country or otherwise protect the interest
of any member of the Company Affiliated Group therein.  These obligations shall continue beyond the
conclusion of the Employment Term with respect to inventions, discoveries,

 

14

 

improvements or copyrightable works initiated, conceived or made by the
Executive during the Employment Term.

 

(d)                                 Acknowledgment.  The Executive expressly recognizes and
agrees that the restraints imposed by this Section 9 are reasonable as to
time and geographic scope and are not oppressive.  The Executive further expressly recognizes and agrees that the
restraints imposed by this Section 9 represent a reasonable and necessary
restriction for the protection of the legitimate interests of the Company
Affiliated Group, that the failure by the Executive to observe and comply with
the covenants and agreements in this Section 9 will cause irreparable harm
to the Company Affiliated Group, that it is and will continue to be difficult
to ascertain the harm and damages to the Company Affiliated Group that such a
failure by the Executive would cause, that the consideration received by the
Executive for entering into these covenants and agreements is fair, that the
covenants and agreements and their enforcement will not deprive the Executive
of an ability to earn a reasonable living, and that the Executive has acquired
knowledge and skills in this field that will allow the Executive to obtain
employment without violating these covenants and agreements.  The Executive further expressly acknowledges
that the Executive has received an opportunity to consult independent counsel
before executing this Agreement.

 

10.                                 Indemnification.

 

(a)                                  To the extent
permitted by applicable law, the Company shall indemnify the Executive against,
and save and hold the Executive harmless from, any damages, liabilities,
losses, judgments, penalties, fines, amounts paid or to be paid in

 

15

 

settlement, costs and reasonable expenses (including, without
limitation, attorneys’ fees and expenses), resulting from, arising out of or in
connection with any threatened, pending or completed claim, action, proceeding
or investigation (whether civil or criminal) against or affecting the Executive
by reason of the Executive’s service from and after the Effective Date as an
officer, director or employee of, or consultant to, any member of the Company
Affiliated Group, or in any capacity at the request of any member of the
Company Affiliated Group, or an officer, director or employee thereof, in or
with regard to any other entity, employee benefit plan or enterprise (other
than arising out of the Executive’s acts of misappropriation of funds or actual
fraud).  In the event the Company does
not compromise or assume the defense of any indemnifiable claim or action
against the Executive, the Company shall promptly cause the Executive to be
paid to the extent permitted by applicable law all costs and expenses incurred
or to be incurred by the Executive in defending or responding to any claim or
investigation in advance of the final disposition thereof; provided, however,
that if it is ultimately determined by a final judgment of a court of competent
jurisdiction (from whose decision no appeals may be taken, or the time for
appeal having lapsed) that the Executive was not entitled to indemnity
hereunder, then the Executive shall repay forthwith all amounts so
advanced.  The Company may not agree to
any settlement or compromise of any claim against the Executive, other than a
settlement or compromise solely for monetary damages for which the Company
shall be solely responsible, without the prior written consent of the
Executive, which consent shall not be unreasonably withheld.  This right to indemnification shall be in
addition to, and not in lieu of, any other right to

 

16

 

indemnification to which the Executive shall be entitled pursuant to
the Company’s Certificate of Incorporation or By-laws or otherwise.

 

(b)                                 Directors’ and
Officers’ Insurance.  The Company
shall use its best efforts to maintain commercially reasonable directors’ and
officers’ liability insurance during the Employment Term which will cover the
Executive.

 

11.                                 Certain Additional
Payments by the Company.

 

Anything in this Agreement to the contrary
notwithstanding, in the event that it is determined (as hereafter provided)
that any payment (other than the Gross-Up Payments provided for in this
Section 11) or distribution by the Company or any of its affiliates to or
for the benefit of the Executive, whether paid or payable or distributed or
distributable pursuant to the terms of this Agreement or otherwise pursuant to
or by reason of any other agreement, policy, plan, program or arrangement,
including, without limitation, any stock option, performance share, performance
unit, stock appreciation right or similar right, or the lapse or termination of
any restriction on or the vesting or exercisability of any of the foregoing (a
“Payment”), would be subject to the excise tax imposed by Section 4999 of
the Internal Revenue Code of 1986, as amended (the “Code”) (or any successor
provision thereto) by reason of being considered “contingent on a change in
ownership or control” of the Company, within the meaning of Section 280G
of the Code (or any successor provision thereto) or to any similar tax imposed
by state or local law, or any interest or penalties with respect to such tax
(such tax or taxes, together with any such interest and penalties, being
hereafter collectively referred to as the “Excise Tax”), then the Executive will
be entitled to receive an additional payment or payments

 

17

 

(collectively, a “Gross-Up Payment”). 
The Gross-Up Payment will be in an amount such that, after payment by
the Executive of all taxes (including any interest or penalties imposed with
respect to such taxes), including any Excise Tax imposed upon the Gross-Up
Payment, the Executive retains an amount of the Gross-Up Payment equal to the
Excise Tax imposed upon the Payment. 
For purposes of determining the amount of the Gross-Up Payment, the
Executive will be considered to pay (x) federal income taxes at the highest
rate in effect in the year in which the Gross-Up Payment will be made and (y)
state and local income taxes at the highest rate in effect in the state or
locality in which the Gross-Up Payment would be subject to state or local tax,
net of the maximum reduction in federal income tax that could be obtained from
deduction of such state and local taxes.

 

12.                                 Miscellaneous.

 

(a)                                  Non-Waiver of Rights.  The failure to enforce at any time the
provisions of this Agreement or to require at any time performance by the other
party of any of the provisions hereof shall in no way be construed to be a
waiver of such provisions or to affect either the validity of this Agreement or
any part hereof, or the right of either party to enforce each and every
provision in accordance with its terms. 
No waiver by either party hereto at any time of any breach by the other
party hereto of, or compliance with, any condition or provision of this
Agreement to be performed by such other party shall be deemed a waiver of
similar or dissimilar conditions or provisions at that time or at any prior or
subsequent time.

 

18

 

(b)                                 Notices.  All notices required or permitted hereunder
will be given in writing, by personal delivery, by confirmed facsimile
transmission (with a copy sent by express delivery) or by express next-day
delivery via express mail or any reputable courier service, in each case
addressed as follows (or to such other address as may be designated):

 

	
  If to the
  Company:

  	
  NTL House,
  Bartley Wood Business Park,

  Hook, Hampshire RG27 9UP

  Attention: Carolyn Walker, Group HR Director

  Fax: +44 1256 752 454

  
	
   

  	
   

  
	
  With a copy
  to:

  	
  Fried, Frank, Harris,

  Shriver & Jacobson LLP

  One New York Plaza

  New York, New York  10004

  Fax: +001 212 859 4000

  Attention:  Jeffrey Bagner, Esq.

  
	
   

  	
   

  
	
  If to the
  Executive:

  	
  Bryan H.
  Hall

  514 Ridgewood Avenue

  Glen Ridge, NJ 07028

  With a copy to his address on file with the

  Company’s payroll department

  Fax: none

  

 

Notices that are delivered personally, by
confirmed facsimile transmission, or by courier as aforesaid, shall be
effective on the date of delivery.

 

(c)                                  Binding Effect;
Assignment.  This Agreement shall
inure to the benefit of and be binding upon the parties hereto and their
respective heirs, executors, personal representatives, estates, successors
(whether direct or indirect, by purchase, merger, consolidation, reorganization
or otherwise) and assigns. 
Notwithstanding the

 

19

 

provisions of the immediately preceding sentence, the Executive shall
not assign all or any portion of this Agreement without the prior written
consent of the Company.

 

(d)                                 Withholding.  The Company shall withhold or cause to be
withheld from any payments made pursuant to this Agreement any relevant taxes
as shall be required to be withheld pursuant to any law or governmental
regulation or ruling in accordance with the Tax Equalization Policy set forth
in Appendix B.

 

(e)                                  Entire Agreement.  This Agreement constitutes the complete
understanding between the parties with respect to the Executive’s employment
and supersedes any other prior oral or written agreements, arrangements or understandings
between the Executive and any member of the Company Affiliated Group.  Without limiting the generality of this
Section 12(e), effective as of the Effective Date, this Agreement
supersedes any existing employment, retention, severance and change-in-control
agreements or similar arrangements or understandings (collectively, the “Prior
Agreements”) between the Executive and the Company and any member of the
Company Affiliated Group, and any and all claims under or in respect of the
Prior Agreements that the Executive may have or assert on or following the
Effective Date shall be governed by and completely satisfied and discharged in
accordance with the terms and conditions of this Agreement.  No agreements or representations, oral or
otherwise, express or implied, with respect to the subject matter hereof have
been made by either party that are not set forth expressly in this Agreement.

 

(f)                                    Severability.  If any provision of this Agreement, or any
application thereof to any circumstances, is invalid, in whole or in part, such
provision or application

 

20

 

shall to that extent be severable and shall not affect other provisions
or applications of this Agreement.

 

(g)                                 Governing Law, Etc.  This Agreement shall be governed by and
construed in accordance with the internal laws of England and Wales, without
reference to the principles of conflict of laws.  Both parties irrevocably submit to the exclusive jurisdiction of
the courts of England and Wales.

 

(h)                                 Modifications.  Neither this Agreement nor any provision
hereof may be modified, altered, amended or waived except by an instrument in
writing duly signed by the party to be charged.

 

(i)                                     Number and
Headings.  Whenever any words used
herein are in the singular form, they shall be construed as though they were
also used in the plural form in all cases where they would so apply.  The headings contained herein are solely for
purposes of reference, are not part of this Agreement and shall not in any way
affect the meaning or interpretation of this Agreement.

 

(j)                                     Counterparts.  This Agreement may be executed in two or
more counterparts, each of which shall be deemed an original but all of which
together shall constitute one and the same instrument.

 

(signature page follows)

 

21

 

IN WITNESS WHEREOF, the Company has caused this Agreement to be
executed and the Executive has executed this Agreement as of the day and year
first above written, in each case effective as of the Effective Date.

 

	
   

  	
  NTL INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Simon Duffy

  
	
   

  	
  By:  Simon Duffy

  
	
   

  	
  Title:  Chief Executive
  Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Bryan H. Hall

  
	
   

  	
  Bryan H. Hall

  

 

22

 

Appendix
A

 

DRAFT   NTL: ASSIGNMENT COMPENSATION SUMMARY SHEET

 

	
  Personal
  / Assignment Information

  
	
   

  
	
  Assignee Name:

  	
  Bryan Hall

  
	
  Home Country:

  	
  United States of America

  	
  Host Country:

  	
  United Kingdom

  
	
  Length of Assignment:

  	
  To 31st December 2006

  
	
  Annual Leave Entitlement:

  	
   

  	
  5 weeks

  
	
  Accompanied Assignment:

  	
  Partner:

  	
  ý

  	
  (tick if accompanying)

  
	
   

  	
  Dependant(s):

  	
  2

  	
  (total accompanying assignee)

  
	
   

  	
   

  	
   

  
	
  Assignment Remuneration Details

  	
   

  	
   

  
	
  Assignment Base Salary (Gross):

  	
  £300,000

  
	
  Tax Equalised:

  	
  Yes

  
	
  Home for Tax Equalisation Purposes: 

  	
  As per NTL policy

  
								

 

	
   

  	
  Tick if

  Applies

  	
   

  	
  Maximum
  Spend (£)

  
	
  Ernst & Young LLP Tax Services

  	
  ý

  	
   

  	
  As Agreed with Ernst & Young 

  
	
  Pre-Assignment Visit – Hotel Accommodation

  	
  ý

  	
   

  	
  As per NTL policy

  
	
  Pre-Assignment Visit – Daily Per Diem

  	
  ý

  	
   

  	
  As per NTL
  policy

  
	
  Relocation Allowance

  	
  ý

  	
   

  	
  £25,000

  
	
  Temporary Accommodation

  	
  ý

  	
   

  	
  As per NTL policy

  
	
  Housing

  	
  ý

  	
   

  	
  £1,850 per week

  
	
  Furniture Hire

  	
  ý

  	
   

  	
  As per NTL policy

  
	
  Company Car Cash Allowance 

  	
  ý

  	
   

  	
  £10,620 per annum

  
	
  Home Leave

  	
  ý

  	
   

  	
  As per NTL policy

  
	
   

  	
   

  	
   

  	
   

  
	
  Other Details

  	
   

  	
   

  	
   

  
	
  Pension

  	
  As per NTL policy (Company payment to US NTL Inc.
  401(k) plan of 2/3rds of Executive’s actual contribution to a maximum of 6%
  of base salary).

  
	
  Social Security

  	
  Home 

  
	
  Healthcare

  	
  Cigna International Plan for self + family (four
  children total (all under the age of 18))

  
	
  Disability Insurance

  	
  UNUM Group Plan (for self)

  
	
  Vision Plan

  	
  As per NTL policy

  
					

 

NOTE:
THIS DOCUMENT ONLY PROVIDES A SUMMARY, REFERENCE MUST BE MADE TO

THE NTL EXPATRIATE POLICY AND THE NTL TAX EQUALISATION POLICY FOR

CONDITIONS ATTACHING TO ALL ITEMS DESCRIBED ABOVE

 

23

 

Appendix
B

 

NTL INCORPORATED

US TAX & SOCIAL SECURITY EQUALISATION POLICY

Effective 1st January 2004

 

A.                                   Objective

 

A US tax & social security equalisation
policy has been established for employees on assignment from the USA, as an
employee’s actual tax liability will be different from what it would have been
had the employee not left the USA.  This
policy only applies to employees who are entitled to tax equalisation under the
terms of their Contract of Employment and/or Terms of Assignment
Letter/Assignment Compensation Summary Sheet.

 

Throughout this policy the masculine gender
has been used for simplification and is to be read in the feminine gender
whenever appropriate.

 

The objective of this policy is to ensure
that the employee pays approximately no more or no less tax/social security on
income and benefits than he would have paid had that employee remained living
and working in the USA.

 

By equalising income tax/social security
costs for its employees, NTL Inc. intends that each employee shall fully comply
with the tax filing and payment requirements imposed by the fiscal authorities
in the host country and the USA. Assistance will be provided to the employee by
Ernst & Young LLP in order to meet their Tax Return filing requirements.
(Also refer to Section 3.5 of the “Expatriate Policy”)

 

NTL Inc. reserves the right to amend this Tax
Equalisation Policy as necessary.

 

B.                                     Reporting
Obligations

 

NTL Inc. requires that all employees be
familiar and comply fully with all applicable national and local laws. In
connection with tax/social security matters, the following guidelines ensure
that NTL Inc. and its employees will meet those requirements.

 

•                  NTL Inc. regards
timely compliance with worldwide income tax/social security requirements as a
mandatory obligation of each employee.

 

•                  An employee must
conduct himself at all times so as to avoid charges of fiscal evasion or abuse,
or of violation of local law, which could jeopardise in any way his standing
personally or as a representative of NTL Inc.

 

24

 

•                  An employee is
expected to exercise care and attention in minimising his liability for
worldwide income taxes/social security contributions in accordance with
appropriate principles of fiscal planning. An employee must co-operate with NTL
Inc. to ensure that his home and host country Tax Returns are filed in such a
manner as to produce the lowest possible tax permitted by law.

 

Each employee is required to report taxable
income and pay income taxes to the taxing authorities which have jurisdiction
during the period of his assignment. The income tax/social security
contributions to be paid by each employee will be governed by the fiscal laws
and regulations under which the authorities operate.

 

Failure to Comply:

 

Upon notification by Ernst & Young LLP to NTL Inc. of an employee’s
failure to comply with all the above requirements, the employee will be given
by written notice one month to comply.

 

If after that time the employee continues to be non compliant a penalty
hypothetical tax rate of 50% will be imposed on all income specified under
Section D(1) below.

 

If after three months from the date of the above written notice the
employee is still non-compliant, entitlement to tax equalisation will cease
immediately together with eligibility for assistance under Section C below
and Section 2.2 of the “Expatriate Policy”.  This will result in the employee being personally responsible for
payment of all tax and social security liabilities on worldwide income, as well
as the preparation and filing of all Tax Returns.

 

C.                                     Tax
Return Preparation Assistance

 

It is the responsibility of each employee to
ensure that the proper Tax Returns are filed when due. NTL Inc. has engaged
Ernst & Young LLP to assist employees in meeting this obligation. The fee
for such services will be borne directly by NTL Inc.

 

Tax Returns prepared by Ernst
& Young LLP will be kept confidential by them. However, in completing
annual tax equalisation reconciliation calculations, limited essential
information will be extracted from the actual home/host country Tax Returns to
facilitate operation of this Tax Equalisation Policy.

 

25

 

D.                                    Implementation
of Tax Equalisation

 

NTL Inc. will continue to withhold actual US Social Security
contributions from the compensation relating to the assignment period, subject
to any statutory limits and the terms of this Tax Equalisation Policy

 

Under this Tax Equalisation Policy, each
employee will have a total income tax and social security liability
approximating to his liability
had he not been assigned outside the USA. 
This position is achieved by calculating a preliminary hypothetical
tax/social security liability and reducing the employee’s compensation by that
amount.

 

In order to ensure that the preliminaryhypothetical tax retained
during a year is as near as possible to an employee’s final hypothetical
tax obligation to NTL Inc., an estimate of the employee’s personal income and
allowable itemised deductions will need to be provided to Ernst & Young LLP
at the commencement of the assignment and in January of each subsequent
year of assignment.

 

Having reduced compensation by a retained hypothetical US income tax, NTL Inc.
will assume responsibility for paying the employee’s actual worldwide income
tax and social security liabilities, if any.

 

After the close of the year, and after an employee’s US Federal (and State,
if required) Tax Return has been filed, Ernst & Young LLP will prepare a
year-end reconciliation. The “preliminary hypothetical US tax” will be
adjusted, to reflect actual income and deductions in place of estimated amounts
used at the beginning of the year. This reconciliation will be the basis of a
final settlement between NTL Inc. and the employee of that year’s income tax
reimbursement.

 

1.                                       Hypothetical
US tax (retained from pay)

 

Hypothetical tax represents an estimate of the employee’s US Federal
and State tax obligations on his projected taxable income. The Federal
hypothetical tax will be calculated using actual filing status, current
dependency exemptions and tax rates for the taxable year.

 

NTL Inc. policy is to calculate hypothetical
State tax based upon a fixed rate of 6% of hypothetical “adjusted gross income”.  The fixed State tax rate will be reviewed
every three years but there will be no mid assignment rate changes.

 

In summary, income to be included in the
hypothetical tax calculations is as follows:-

 

26

 

•                  base salary (net
after deduction of employee 401k contributions and employee pre-tax medical
contributions)

 

•                  bonus

 

•                  all income from
stock based incentives

 

•                  group term life

 

•                  personal passive
(investment) income

 

(See section 2(a) below for further
definitions)

 

If married, passive income of the employee’s
spouse will also be included. Subject to the specific exception below,
spousal salary and/or other earned income from employment performed outside the
USA, however, is specifically excluded from the hypothetical calculation.
Rationale: A spouse is eligible to make an election under the IRS Code Sec.911
for a foreign earned income exclusion in their own right. This, plus credit for
foreign taxes paid on foreign source wages, should result in no incremental US
tax being due on such income. The spouse remains personally liable for all
foreign income tax and social security contributions due.

 

In arriving at hypothetical taxable income, deductions will be
available for:

 

•                  actual amounts
claimed on Federal Tax Return to arrive at “adjusted gross income”.

 

•                  actual itemised
deductions per Federal Tax Return, excluding any itemised deductions funded by
NTL.

 

•                  actual mortgage
interest and real estate taxes paid per Federal Income Tax Return
Schedule A, form 1040 as filed with the IRS.

 

•                  a deduction will
be given for hypothetical State taxes payable to NTL.

 

The hypothetical US income tax retained from
pay may be changed by NTL Inc. during the course of a year whenever there is a
change in:

 

•                  the employee’s
compensation; or

 

•                  401(k)
contribution; or

 

•                  other NTL Inc.
income/related deductions; or

 

27

 

•                  a change in
filing status or number of dependants.

 

Also, upon prompt notification to Ernst &
Young LLP and verification of US itemised deductions and deductible losses and
adjustments such as US rental losses, etc. NTL Inc. may reduce the retained
hypothetical tax to give the employee the appropriate reduction in retained
hypothetical tax. Conversely, NTL Inc. may increase the retained hypothetical
tax in order to collect the additional hypothetical US income tax on net
personal income such as dividends, interest, capital gains etc.

 

The hypothetical US income tax retained from
pay is not a withholding tax and should not be confused with the amount of US
income tax withholding to which the employee may have been subject prior to
their assignment. The two amounts are calculated in different ways and will
often be different in amount. The hypothetical US income tax is simply a negative
item in the employee’s compensation package which, because it approximates to
his tax obligation for the year on NTL Inc. income, provides the employee with
approximately the same net level of spendable income as if they had remained in
the home location.

 

Spousal Income - Exception

 

In the event that both spouses are employed by NTL Inc. and on foreign
assignment, the hypothetical tax liability will be based on the inclusion of
all income (as above) and calculated on the basis of the married filing joint
tax rates. The hypothetical taxes payable by each spouse will be in proportion
to their respective gross income (as defined above), but net of 401k
contributions and/or other NTL Inc. income/related deductions.

 

2.                                       Final Hypothetical
US Tax (for tax reimbursement purposes)

 

As stated above, after the close of the year, the “preliminary
hypothetical US tax” will be adjusted to a “final hypothetical US tax” based on
actual amounts. This hypothetical US tax then becomes the “final” tax burden
which an employee must bear for the year.

 

Because the USA taxes its citizens and
green-card holders on worldwide income, the final hypothetical US tax will be
based not only on NTL Inc. base salary and bonus, etc as defined in
Section 1 above, but also on the employee’s taxable net personal income or
loss, adjustments to income, and in most circumstances on his actual itemised
deductions as well. In the absence of a reduction in the preliminary
hypothetical US tax as discussed above, the NTL Inc. employee with losses,
alimony or itemised deductions will likely receive a cash reimbursement from
NTL Inc. after the end of the

 

28

 

year. On the other hand, an NTL Inc. employee with net
personal income will be obliged to make a cash payment to NTL Inc. after the
end of the year equal to the additional hypothetical tax on such income. Such
employees are thereby on notice that they must have sufficient cash to pay this
hypothetical tax on personal income, or make arrangements for NTL Inc. to
retain it through payroll. Any additional hypothetical tax due to NTL/from NTL
must be settled by either the employee or NTL as appropriate within 30 days of
receipt of the finalised tax equalisation settlement from Ernst & Young
LLP.

 

The final hypothetical US tax will be based
on the following items:

 

(a)                           NTL
Inc. Income

 

•                  Base salary,
less 401(k) contributions and any other pre-tax employee contributions. (For
this purpose, in the case of an employee who works a part-year on assignment
for NTL Inc. and who works a part-year for NTL Inc. in the US base salary will
be the sum of the two part-year base salaries).

 

•                  Cash bonuses and
any other cash incentive compensation.

 

•                  Income from all
NTL Inc. stock based incentives, including, but not limited to, non-qualifying
stock options (NQSO) and Incentive Stock Options (ISO)

 

•                  Imputed income
from group term life insurance and any other employee benefit considered
taxable in the US which the employee would have received independent of his
assignment.

 

•                  Assignment
related allowances and reimbursements including the one month relocation
allowance (See Expatriate Policy) are excluded from all calculations of
hypothetical tax to ensure that NTL Inc. bears the full cost of any tax
imposed on these items.

 

(b)                          Net
Personal Income

 

“Net personal income” is the positive amount,
which results from subtracting “personal losses” from “personal income”. NTL
Inc. reserves the right to “cap” the amount of net personal income which it
will tax equalise under this policy, and also to limit its reimbursement of
host country taxes thereon when such taxes could have been avoided by following
the tax advice of Ernst & Young LLP.

 

29

 

“Personal income” encompasses income earned
or received from sources other than NTL Inc. It includes, but is not limited
to, amounts from the following sources which are taxable on an employee’s
actual US Tax Return:

 

•                  Dividends.

 

•                  Interest.

 

•                  State income tax
refunds.

 

•                  Net capital
gain, including the taxable gain from the sale of an employee’s US principal
residence and gain from the sale of any residence owned by the employee in the
country of assignment or any other country outside the USA

 

•                  Net rental
income (but excluding NTL Inc. funded expenses).

 

•                  Net partnership
income.

 

(See “The Expatriate Policy” Sections 3.10
& 5.2 for general rules for house sales)

 

“Personal Income” also includes:

 

•                  Any salaries or
compensation received by the employee prior to, or subsequent to, the
International Assignment, while self-employed or employed by a corporation
unrelated to NTL Inc..

 

•                  Any salaries,
compensation or self-employment income received by the employee’s spouse prior
to, or subsequent to, the International Assignment.

 

During the period of the employee’s
assignment, to the extent that an employee’s spouse has a job in the host
country, or is self-employed there, the spouse will be fully responsible for
any income and social taxes imposed on the spouse’s income. In this
circumstance, the year-end US tax equalisation calculation will not
reflect a final hypothetical US income tax on such income; and in calculating
the actual US income tax if any, attributable to the spouse’s income, the
spouse will receive the full benefit of the spouse’s “earned income exclusion”
and the appropriate “foreign tax credit” available under US tax law.

 

“Personal losses” encompass losses funded
exclusively by the employee. This category includes, but is not limited to:

 

30

 

•                  Net capital loss
deductible on the actual US income Tax Return.

 

•                  Net rental loss
deductible on the actual US income Tax Return (but excluding any NTL Inc.
funded expenses).

 

•                  Net partnership
loss deductible on the actual US income Tax Return.

 

(c)                           Net
Personal Loss

 

“Net Personal Loss is the negative amount
which results from subtracting “personal losses” from “personal income”.

 

(d)                          Deductions

 

The following deductions which are not
funded by NTL Inc. will be allowed in arriving at an employee’s
hypothetical taxable income for purposes of computing his final hypothetical US
income tax:

 

•                  Adjustments to
gross income claimed on the employee’s actual US income Tax Return for the
taxable year, such as alimony and deductible IRA contributions; plus

 

•                  the amount of
actual itemised deductions deductible on an employee’s US income Tax Return for
the taxable year plus the amount of the final hypothetical State income tax for
the year.

 

An employee’s actual itemised deductions will
be reduced by those expenses which were reimbursed (directly or in the form of
an allowance) by NTL Inc.

 

The phase out of itemised deductions for high
income tax payers will be recalculated based upon the hypothetical stay at home
income included in the final annual tax equalisation settlement

 

(e)                           Tax
Rates & Filing Status

 

In computing the final hypothetical US income
tax, the tax rates and filing status to be used are those used on the actual US
Federal  income Tax Return and the fixed
State tax rate (See Section 1 above) for the year.

 

3.                                       Reimbursement
of Actual Worldwide Income Taxes & Social Security

 

Having reduced an employee’s compensation by
a retained hypothetical US income tax which is later adjusted to a final
hypothetical US tax, NTL Inc.

 

31

 

will reimburse the actual amount of worldwide
income taxes paid by an employee as well as local social taxes paid, if any.

 

Whenever an employee must pay a local income
or social tax, NTL Inc. will at that time pay the amount of such tax to or on
behalf of the employee. This includes local income and social taxes in the form
of:-

 

•                  Withholding
taxes which NTL Inc. is required to pay over to the assignment country
government.

 

•                  Estimated tax
filings made during the year.

 

•                  Payment of the
balance due with the assignment country income Tax Return or upon final
assessment for the tax year.

 

In all cases, the employee’s cash flow will
not be reduced by tax payments to the assignment country government.

 

Verification of the actual amount of local
taxes paid by each employee will be provided by Ernst & Young LLP, which
will communicate the amount thereof to NTL Inc.. An amount equal to any
local tax refunds must be paid or turned over to NTL Inc. by the employee,
since NTL Inc. (and not the employee) will have funded all local taxes.

 

4.                                       Year-End
US Tax Equalisation

 

After an employee’s US Tax Return has been
filed, Ernst & Young LLP will prepare a tax reconciliation calculation.

 

NTL Inc. will provide to Ernst & Young
LLP the salary and other information (retained hypothetical tax, etc.)
necessary to complete this form. Ernst & Young LLP will send the year-end
US Tax reconciliation to NTL Inc. and the employee. Both parties will review
and approve the calculations provided by Ernst & Young LLP.

 

The year-end US Tax reconciliation will
reconcile the preliminary hypothetical US income tax with the final
hypothetical US income tax for the year. It will also disclose the actual US
income tax for the year (if any) which, under this policy, is fully
reimbursable by NTL Inc.. The reconciliation will then indicate the net
reimbursement owed to/by the employee, and NTL Inc. Reimbursement will be made
promptly, within 30 days of Ernst & Young LLP issuing the calculation.

 

NTL
Inc. will reimburse the employee
for all interest and penalties relating to NTL Inc. income except when
the assessment of the interest

 

32

 

and
penalties results from the negligence or fault of the employee; e.g., a delay
in submitting data booklets or tax questionnaires to Ernst & Young LLP
which in turn prevents the timely filing of a return. (Also see Section B
above)

 

NTL Inc. will also reimburse interest imposed
on any balance due resulting from an extended due date for filing US Tax
Returns granted to US taxpayers residing overseas.

 

5.                                       Credits
Allowed against US tax for Host Country Taxes Paid

 

Any tax credits for host country taxes
(referred to as “foreign tax credits”) paid or reimbursed by NTL Inc.
which reduce an employee’s US income tax liability prior to, during or
subsequent to his assignment, will be for the benefit of NTL Inc..  This repayment is to be made within 14
days of receipt from the IRS.

 

It also includes tax credits (reimbursed by
NTL Inc.) which are carried back or carried forward, regardless of whether the
income in the carryback or carry forward year is related to the International
Assignment.  In such instances, an
employee must pay the amount of his tax refund received from the Internal
Revenue Service, plus interest, to NTL Inc.. 
This payment is to be made within 14 days of receipt of the refund.

 

6.                                       Net
Operating Losses

 

Any net operating losses resulting from
exclusions available to US citizens working abroad will be considered to be for
the benefit of NTL Inc., because the tax benefit of these personal losses will
have been fully realised by the employee in the hypothetical tax
calculation.  This includes a net
operating loss which is carried back or carried forward regardless of whether
the income in the carryback or carry forward year is related to the
International Assignment.  In such
instances, an employee must pay the amount of his tax refund received from the
Internal Revenue Service and applicable State tax authority, plus interest, to
NTL Inc..  This payment is to be made
within 14 days of receipt of the refund.

 

7.                                       Subsequent
Adjustments

 

Assignment country government or US Internal
Revenue Service or State government examinations of employee Tax Returns are
not uncommon.  When they occur, the
year-end US or local tax equalisation for that year will be recomputed, if
necessary, with adjustments made as appropriate.

 

33

 

NTL will pay or reimburse reasonable fees, subject
to prior approval, incurred by Ernst & Young LLP for dealing with US IRS or
foreign tax notices, audits and examinations.

 

8.                                       “Tax on Tax”

 

Whenever NTL Inc. reimburses local or US
income taxes (either currently, or in the following year), such reimbursements
themselves constitute taxable income for US income tax purposes and, generally,
for assignment country tax purposes as well. 
Under this Tax Equalisation Policy any “final” tax paid with respect to
income tax reimbursements will be fully reimbursed by NTL Inc. and grossed up
as appropriate.

 

For repatriated employees receiving tax
reimbursements during the year subsequent to termination of their International
Assignment, the payment may be grossed up to include any final tax due on the
reimbursement in order to keep the employee whole.

 

[9.                                   Short-term
loans/advances

 

Even though compensation is reduced by the US
hypothetical tax, it may be necessary for NTL Inc. to withhold actual US or
local taxes as applicable, and to remit these taxes to the proper US and local
taxing authorities.  In order to ease
the employee’s cash flow burden, the employee in such cases will receive a loan
or tax advance equal to the host and/or US taxes withheld, with the approval of
NTL Inc.  The total loan or tax advanced
will be settled in the following year at the time the Year-End US Tax
Equalisation or local tax reconciliation is prepared.]

 

10.                                 Annual settlement with employee

 

When the Year-End US Tax Equalisation
calculations result in a balance due to the employee, the amount will first be
applied against any outstanding loans or tax advances for the same year.  The remainder will be paid by NTL Inc. to
the employee.

 

If loans for a particular year exceed the
amount of the tax equalisation balance due, the employee must repay such
excess loans to NTL Inc. within 14 days of receiving the applicable refund of
taxes from the US or host country taxing authorities.  NTL Inc. reserves the right to recapture all
unpaid tax loans by reducing the employee’s base salary.

 

34

 

11.                                 Treatment of
new, returning, terminated and retired employees

 

For an employee who is hired, transferred,
terminated or who returns home during the year, the Year-End US Tax
Equalisation will be adjusted in order to compare:

 

•                  Hypothetical US
income tax retained from compensation (described above) during the portion of
the year spent on International Assignment,

 

•                  Final
hypothetical US income tax (described above) on the entire year’s income, and

 

•                  Actual US income
tax liability on Form 1040 for the entire year.

 

Where the employee was employed by an
employer other than NTL Inc. or any affiliate during the year, compensation
from the employee’s previous or subsequent employer will be treated as personal
income and will therefore be subject to US hypothetical tax and will be fully
tax equalised.

 

Where the employee spent part of the year
(either pre-assignment or post assignment) in the US he will be fully
responsible for applicable State income taxes assessed during such part-year
periods, except to the extent that such State income taxes are increased by a
NTL Inc. allowance on which NTL Inc. assumes responsibility for paying actual
taxes.

 

12.                                 Treatment of
employees who are married to participants in tax equalisation policies of other
employers

 

For an employee whose spouse is employed in the host country by
entities other than NTL Inc. and is covered by a tax equalisation policy of
another employer, the manner in which the final hypothetical tax and reimbursable
US and local taxes are calculated will be determined on a case-by-case
basis.  This approach will ensure that
an NTL Inc. employee receives the protection to which he is entitled under the
NTL Inc. US Tax & Social Security Equalisation Policy by eliminating any
distorted results which could occur if the standard calculations were
performed.

 

35

 

Appendix C

 

NTL Incorporated
Equity-Based Compensation

 

Options to purchase common stock of NTL Incorporated

 

The Executive will be granted 60,000 options at an exercise price equal
to the fair market value on the date of execution of the employment agreement.

 

Vesting period = three years

 

The options granted will vest 33% on each anniversary of the Effective Date.

 

Other terms:  The options will
be subject to the Company’s standard form of stock option agreement.

 

36

 

Appendix
D

 

A “Change in Control” shall be deemed to occur if the event set forth
in any one of the following paragraphs shall have occurred:

 

(i)                                     Any
Person is or becomes the Beneficial Owner, directly or indirectly, of
securities of the Company (not including in the securities beneficially owned
by such Person any securities acquired directly from the Company) representing
30% or more of the combined voting power of the Company’s then outstanding
securities, excluding any Person who becomes such a Beneficial Owner in
connection with a transaction described in clause (a) of Paragraph (iii) below;
or

 

(ii)                                  the
following individuals cease for any reason to constitute a majority of the
number of directors then serving: individuals who, on the date the Plan is
adopted by the Board of Directors of the Company (“Board”), constitute the
Board and any new director (other than a director whose initial assumption of
office is in connection with an actual or threatened election contest,
including, without limitation, a consent solicitation, relating to the election
of directors of the Company) whose appointment or election by the Board or
nomination for election by the Company’s stockholders was approved or
recommended by a vote of at least a majority of the directors then still in
office who either were directors on the date hereof or whose appointment,
election or nomination for election was previously so approved or recommended;
or

 

(iii)                               there
is consummated a merger or consolidation of the Company or any direct or
indirect subsidiary of the Company with any other corporation, other than (a) a
merger or consolidation which would result in the voting securities of the
Company outstanding immediately prior to such merger or consolidation
continuing to represent (either by remaining outstanding or by being converted
into voting securities of the surviving entity or any parent thereof) at least
50% of the combined voting power of the securities of the Company or such
surviving entity or any parent thereof outstanding immediately after such
merger or consolidation, or (b) a merger or consolidation effected to implement
a recapitalization of the Company (or similar transaction) in which no Person
is or becomes the Beneficial Owner, directory or indirectly, of securities of
the Company (not including in the securities beneficially owned by such Person
any securities acquired directly from the Company) representing 30% or more of
the combined voting power of the Company’s then outstanding securities; or

 

(iv)                              the
stockholders of the Company approve a plan of complete liquidation or
dissolution of the Company or there is consummated an agreement for the sale or
disposition by the Company of all or substantially all of the Company’s assets,
other than a sale or disposition by the Company of all substantially all of the
Company’s assets to an entity, at least 50% of the combined voting power of the
voting securities of which are owned by the stockholders of the Company
immediately prior to such sale.

 

37

 

Notwithstanding the foregoing, a “Change in Control” shall not be
deemed to have occurred by virtue of the consummation of any transaction or
series of integrated transactions immediately following which the record
holders of the common stock of the Company immediately prior to such
transaction or series of transactions continue to have substantially the same
proportionate ownership in an entity which owns all or substantially all of the
assets of the Company immediately following such transaction or series of
transactions.

 

For purposes of this Appendix D:

 

“Affiliate” shall have the meaning set forth in Rule 12b-2 under
Section 12 of the Securities Exchange Act of 1934.

 

“Person” shall have the meaning given in Section 3(a)(9) of the
Securities Exchange Act of 1934, as modified and used in Sections 13(d) and
14(d) thereof, except that such terms shall not include (i) the Company or any
of its Affiliates, (ii) a trustee or other fiduciary holding securities under
an employee benefit plan of the Company or any of its subsidiaries, (iii) an
underwriter temporarily holding securities pursuant to an offering of such
securities, or (iv) a corporation owned, directly or indirectly, by
stockholders of the Company in substantially the same proportions as their
ownership of stock of the Company.

 

“Beneficial Owner” shall have the meaning set forth in Rule 13d-3 under
the Securities Exchange Act of 1934, except that a Person shall not be deemed
to be the Beneficial Owner of any securities which are properly filed on a Form
13-G.

 

38

 

Appendix E

 

RELEASE AGREEMENT

 

In consideration of the severance payments and benefits provided for or
referred to in the Employment Agreement, dated as of May 31, 2004, to which the
undersigned is a party (the “Benefits”), and the release from the undersigned
set forth herein, NTL Incorporated (the “Company”) and the undersigned agree to
the terms of this Release Agreement.

 

1.                                       The undersigned
acknowledges and agrees that the Company is under no obligation to offer the
undersigned the Benefits, unless the undersigned consents to the terms of this
Release Agreement.  The undersigned
further acknowledges that he is under no obligation to consent to the terms of
this Release Agreement and that the undersigned has entered into this agreement
freely and voluntarily.

 

2.                                       The undersigned
voluntarily, knowingly and willingly releases and forever discharges the
Company and its Affiliates, together with their respective officers, directors,
partners, shareholders, employees, agents, and the officers, directors,
partners, shareholders, employees, agents of the foregoing, as well as each of
their predecessors, successors and assigns (collectively, “Releasees”), from
any and all charges, complaints, claims, promises, agreements, controversies,
causes of action and demands of any nature whatsoever that the undersigned or
his executors, administrators, successors or assigns ever had, now has or
hereafter can, shall or may have against Releasees by reason of any matter,
cause or thing whatsoever arising prior to the time of signing of this Release
Agreement by the undersigned.  The
release being provided by the undersigned in this Release Agreement includes,
but is not limited to, any rights or claims relating in any way to the
undersigned’s employment relationship with the Company, or the termination
thereof, or under any statute, including the federal Age Discrimination in
Employment Act of 1967, Title VII of the Civil Rights Act of 1964, the Civil
Rights Act of 1990, the Americans with Disabilities Act of 1990, the Employee
Retirement Income Security Act of 1974, the Family and Medical Leave Act of
1993, each as amended, and any other federal, state or local law or judicial
decision (U.S. and non-U.S.).

 

3.                                       The undersigned
acknowledges and agrees that he shall not, directly or indirectly, seek or
further be entitled to any personal recovery in any lawsuit or other claim
against the Company or any other Releasee based on any event arising out of the
matters released in paragraph 2.

 

4.                                       Nothing herein
shall be deemed to release (i) any of the undersigned’s rights to the Benefits,
(ii) any of the benefits that the undersigned has accrued prior to the date
this Release Agreement is executed by the undersigned under the Company’s
employee benefit plans and arrangements, or any agreement in effect with

 

39

 

respect
to the employment of the undersigned or (iii) any claim for indemnification as
provided under Section 10 of the Employment Agreement.

 

5.                                       In
consideration of the undersigned’s release set forth in paragraph 2, the
Company knowingly and willingly releases and forever discharges the undersigned
from any and all charges, complaints, claims, promises, agreements,
controversies, causes of action and demands of any nature whatsoever that the Company
now has or hereafter can, shall or may have against him by reason of any
matter, cause or thing whatsoever arising prior to the time of signing of this
Release Agreement by the Company, provided, however, that nothing herein is
intended to release any claim the Company may have against the undersigned for
any illegal conduct or conduct constituting gross negligence or willful
misconduct in connection with his employment with the Company.

 

6.                                       The undersigned
acknowledges that the Company has advised him to consult with an attorney of
his choice prior to signing this Release Agreement.  The undersigned represents that, to the extent he desires, he has
had the opportunity to review this Release Agreement with an attorney of his
choice.

 

7.                                       The undersigned
acknowledges that he has been offered the opportunity to consider the terms of
this Release Agreement for a period of at least twenty-one days, although he
may sign it sooner should he desire. 
The undersigned further shall have seven additional days from the date
of signing this Release Agreement to revoke his consent hereto by notifying, in
writing, the Secretary of the Company. 
This Release Agreement will not become effective until seven days after
the date on which the undersigned has signed it without revocation.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  Bryan Hall

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  NTL Incorporated

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
					

 

40

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