Document:

Exhibit 10.1

 

CONTRACT
WORK AUTHORIZATION (Form 1) RELEASE NO. 4

 

for

ENGINEERING
AND

CONSTRUCTION MANAGEMENT SERVICES

 

Between

 

ACUSPHERE,
INC. (“ACUSPHERE/OWNER”)

 

and

 

PARSONS
COMMERCIAL TECHNOLOGY INC. (“PARSONS”)

 

All work authorized by Acusphere and performed
by Parsons in accordance with this Contract Work Authorization shall be
governed by the “Terms and Conditions for Engineering, Procurement and
Construction Management Services between Acusphere, Inc. and Parsons
Commercial Technology Group Inc.” (the EPCM), effective date July 6, 2004.

 

CONTRACT WORK AUTHORIZATION
RELEASE 4

(Form 1)

FOR

ENGINEERING AND CONSTRUCTION MANAGEMENT SERVICES

 

This Contract Work Authorization for the continuing performance of
engineering, construction management, procurement services and placement of
subcontracts (where applicable) is executed April 14, 2005 and between
ACUSPHERE, INC., with principal offices at 500 Arsenal Street, Watertown,
Massachusetts 02472 (“Acusphere/Owner”) and PARSONS COMMERCIAL TECHNOLOGY GROUP
INC. (“PARSONS”), with principal offices for this project located at 150
Federal Street, Boston, Massachusetts 02110.

 

This Contract Work Authorization, the scope of which is defined below,
is intended to cover engineering, construction management, procurement services
and placement of subcontracts (where applicable) (authorized to date by
Acusphere) to be provided by Parsons for Acusphere from July 6, 2004
through April 29, 2005. This Contract Work Authorization (Form 1)
Release 4 extends Parsons performance period from April 1, 2005, as
previously authorized per Contract Work Authorization (Form 1) Release 3,
to April 29, 2005.

 

 

IN CONSIDERATION of the covenants hereinafter set forth, the parties
hereto mutually agree as follows:

 

ARTICLE I            SCOPE OF
SERVICES

 

1.1           Description
of Services

 

Parsons shall continue to perform engineering
construction management and other services as required (hereinafter referred to
as the “Services”) in connection with Owner’s aseptic pharmaceutical
manufacturing facility located at 890 East Street, Tewksbury, Massachusetts
(the “Facilities”), as previously set forth and described in Exhibit 1,
which is attached to Contract Work Authorization (Form 1) Release Number
1, which was executed by the parties November 11, 2004.

 

ARTICLE II           ESTIMATED COST

 

	
  Previous
  total estimated cost up through and including Contract Work Authorization (Form 1)
  Release Number 3

  	
   

  	
  $

  	
  6,236,948.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Estimated
  increase based on Contract Work Authorization (Form 1) Release Number 4

  	
   

  	
  $

  	
  4,141,715.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Revised
  total estimated cost up through this Contract Work Authorization (Form 1)
  Release Number 4

  	
   

  	
  $

  	
  10,378,663.00

  	
   

  

 

It is anticipated that the revised estimated
costs added herein will be incurred prior to the end of April 29, 2005 and
that, in accordance with the terms of the EPCM and Contract Work Authorization
(Form 1) Release Nos. 1, 2 3, and 4, if Acusphere were to terminate this
contract during this term or elect to not extend this contract beyond April 29,
2005, Acusphere will be liable for costs which may exceed the amounts stated
above.

 

ARTICLE III          TERMS AND CONDITIONS

 

THE PARTIES ACKNOWLEDGE AND AGREE THE TERMS AND
CONDITIONS OF THIS AGREEMENT HAVE BEEN FREELY, FAIRLY AND THOROUGHLY
NEGOTIATED. FURTHER, THE PARTIES ACKNOWLEDGE AND AGREE SUCH TERMS AND
CONDITIONS, INCLUDING BUT NOT LIMITED TO THOSE RELATING TO WAIVERS, ALLOCATIONS
OF, RELEASES FROM, INDEMNITES AGAINST AND LIMITATIONS OF LIABILITY, WHICH MAY REQUIRE
CONSPICUOUS IDENTIFICATION, HAVE NOT BEEN SO IDENTIFIED BY MUTUAL AGREEMENT AND
THE PARTIES HAVE ACTUAL KNOWLEDGE OF THE INTENT AND EFFECT OF SUCH TERMS AND
CONDITIONS. EACH PARTY ACKNOWLEDGES THAT IN EXECUTING THIS 

 

 

AGREEMENT IT RELIED SOLELY ON ITS OWN JUDGEMENT,
BELIEF, AND KNOWLEDGE, AND SUCH ADVICE AS IT MAY HAVE RECEIVED FROM ITS
OWN COUNSEL, AND IT HAS NOT BEEN INFLUENCED BY ANY REPRESENTATION OR STATEMENTS
MADE BY ANY OTHER PARTY OR SUCH OTHER PARTY’S COUNSEL. NO PROVISION IN THIS
AGREEMENT IS TO BE INTERPRETED FOR OR AGAINST ANY PARTY BECAUSE THAT PARTY OR
ITS COUNSEL DRAFTED SUCH PROVISION.

 

ARTICLE IV          SCHEDULE

 

It is estimated that the work covered by the Contract Work
Authorization shall commence and be completed as noted below:

 

Work commenced on July 6, 2004 and shall be suspended at the end
of the day April 29, 2005 unless a subsequent authorization to continue is
received by Parsons from Acusphere on or prior to April 29, 2005.

 

All other terms and conditions for the Contract for
Engineering, Procurement and Construction Management Services, as previously
amended by Contract Work Authorization Numbers 1 through 3 remain unchanged.

 

IN WITNESS WHEREOF, the parties hereto have executed
this contract, document as of the date and year first above written.

 

 

	
  ACUSPHERE, INC. (“ACUSPHERE”)

  	
  PARSONS COMMERCIAL

  TECHNOLOGY GROUP INC.

  (“PARSONS”)

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Sherri C. Oberg

  	
   

  	
  By:

  	
  /s/ Daniel
  Mariani

  	
   

  
	
   

  	
   

  
	
  Title: 

  	
  Chief Executive Officer

  	
   

  	
  Title:

  	
  Senior Vice PresidentExhibit
10.1

 

 

Published
CUSIP Number:                        

 

 

CREDIT
AGREEMENT

 

dated as of April
13, 2005

 

among

 

DIRECTV HOLDINGS LLC,

as Borrower,

 

CERTAIN SUBSIDIARIES OF THE BORROWER,

as Guarantors,

 

THE
LENDERS PARTY HERETO,

 

BANK OF
AMERICA, N.A.,

as Administrative
Agent and Collateral Agent,

 

JPMORGAN
CHASE BANK, N.A.,

as Syndication
Agent,

 

CREDIT SUISSE FIRST BOSTON,

GOLDMAN SACHS CREDIT PARTNERS, L.P.

and

CITICORP NORTH AMERICA, INC.,

as
Co-Documentation Agents,

 

and

 

BANC OF
AMERICA SECURITIES LLC,

and

J.P. MORGAN
SECURITIES INC.,

as Co-Lead
Arrangers and Co-Book Managers

 

 

 

 

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

  	
  Times of Day

  	
   

  
	
  1.06

  	
  Exchange
  Rates; Currency Equivalents

  	
   

  
	
  1.07

  	
  Additional
  Alternative Currencies

  	
   

  
	
  1.08

  	
  Change of Currency

  	
   

  
	
  1.09

  	
  Letter of Credit Amounts

  	
   

  
	
   

  	
   

  	
   

  
	
  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; Administrative Agent’s Clawback

  	
   

  
	
  2.12

  	
  Sharing of Payments By
  Lenders

  	
   

  
	
  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

  	
   

  
	
  3.05

  	
  Compensation for Losses

  	
   

  
	
  3.06

  	
  Mitigation
  Obligations; Replacement of Lenders

  	
   

  
	
  3.07

  	
  Survival Losses

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  IV  GUARANTY

  	
   

  
	
  4.01

  	
  The Guaranty

  	
   

  
	
  4.02

  	
  Obligations Unconditional

  	
   

  
	
  4.03

  	
  Reinstatement

  	
   

  
	
  4.04

  	
  Certain Waivers

  	
   

  
	
  4.05

  	
  Remedies

  	
   

  
	
  4.06

  	
  Rights of Contribution

  	
   

  
	
  4.07

  	
  Guaranty of
  Payment; Continuing Guaranty

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE V  CONDITIONS PRECEDENT TO CREDIT EXTENSIONS

  	
   

  
	
  5.01

  	
  Conditions to
  Initial Credit Extensions

  	
   

  
	
  5.02

  	
  Conditions to all
  Credit Extensions

  	
   

  

 

i

 

	
  ARTICLE
  VI  REPRESENTATIONS AND WARRANTIES

  	
   

  
	
  6.01

  	
  Existence,
  Qualification and Power

  	
   

  
	
  6.02

  	
  Authorization; No
  Contravention

  	
   

  
	
  6.03

  	
  Governmental
  Authorization; Other Consents

  	
   

  
	
  6.04

  	
  Binding Effect

  	
   

  
	
  6.05

  	
  Financial Statements

  	
   

  
	
  6.06

  	
  No Material Adverse Effect

  	
   

  
	
  6.07

  	
  Litigation

  	
   

  
	
  6.08

  	
  No Default

  	
   

  
	
  6.09

  	
  Ownership of Property;
  Liens

  	
   

  
	
  6.10

  	
  Taxes

  	
   

  
	
  6.11

  	
  ERISA Compliance

  	
   

  
	
  6.12

  	
  Subsidiaries

  	
   

  
	
  6.13

  	
  Margin
  Regulations; PUHCA; Investment Company Act

  	
   

  
	
  6.14

  	
  Disclosure

  	
   

  
	
  6.15

  	
  Compliance with Laws

  	
   

  
	
  6.16

  	
  FCC Licenses

  	
   

  
	
  6.17

  	
  Satellites

  	
   

  
	
  6.18

  	
  Intellectual
  Property; Licenses, Etc.

  	
   

  
	
  6.19

  	
  Security Agreement

  	
   

  
	
  6.20

  	
  Pledge Agreement

  	
   

  
	
  6.21

  	
  Mortgages

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  VII  AFFIRMATIVE COVENANTS

  	
   

  
	
  7.01

  	
  Financial Statements

  	
   

  
	
  7.02

  	
  Certificates; Other
  Information

  	
   

  
	
  7.03

  	
  Notification

  	
   

  
	
  7.04

  	
  Preservation of Existence

  	
   

  
	
  7.05

  	
  Payment of Taxes
  and Other Obligations

  	
   

  
	
  7.06

  	
  Compliance with Law

  	
   

  
	
  7.07

  	
  Maintenance of Property

  	
   

  
	
  7.08

  	
  Insurance

  	
   

  
	
  7.09

  	
  ERISA Compliance

  	
   

  
	
  7.10

  	
  Books and Records

  	
   

  
	
  7.11

  	
  Inspection Rights

  	
   

  
	
  7.12

  	
  Use of Proceeds

  	
   

  
	
  7.13

  	
  Joinder of
  Subsidiaries as Guarantors

  	
   

  
	
  7.14

  	
  Pledge of Capital Stock

  	
   

  
	
  7.15

  	
  Pledge of Other Property

  	
   

  
	
  7.16

  	
  Prepayment of
  Existing Senior Notes

  	
   

  
	
  7.17

  	
  Further
  Assurances Regarding Collateral

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  VIII NEGATIVE COVENANTS

  	
   

  
	
  8.01

  	
  Liens

  	
   

  
	
  8.02

  	
  Investments

  	
   

  
	
  8.03

  	
  Indebtedness

  	
   

  
	
  8.04

  	
  Mergers and Dissolutions

  	
   

  
	
  8.05

  	
  Dispositions

  	
   

  
	
  8.06

  	
  Restricted Payments

  	
   

  
	
  8.07

  	
  Change in Nature of
  Business

  	
   

  
	
  8.08

  	
  Change in Fiscal Year

  	
   

  
	
  8.09

  	
  Transactions with
  Affiliates

  	
   

  

 

ii

 

	
  8.10

  	
  Financial Covenants

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  IX  EVENTS OF DEFAULT AND REMEDIES

  	
   

  
	
  9.01

  	
  Events of Default

  	
   

  
	
  9.02

  	
  Remedies Upon Event of Default

  	
   

  
	
  9.03

  	
  Application of Funds

  	
   

  
	
  9.04

  	
  Access and Command Codes

  	
   

  
	
  9.05

  	
  Certain Cure Rights

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE X  ADMINISTRATIVE AGENT AND COLLATERAL AGENT

  	
   

  
	
  10.01

  	
  Appointment
  and Authorization of Administrative Agent and Collateral Agent

  	
   

  
	
  10.02

  	
  Rights as a Lender

  	
   

  
	
  10.03

  	
  Exculpatory Provisions

  	
   

  
	
  10.04

  	
  Reliance by
  Administrative Agent

  	
   

  
	
  10.05

  	
  Delegation of Duties

  	
   

  
	
  10.06

  	
  Resignation of
  the Administrative Agent

  	
   

  
	
  10.07

  	
  Non-Reliance
  on Administrative Agent and Other Lenders

  	
   

  
	
  10.08

  	
  No Other Duties

  	
   

  
	
  10.09

  	
  Administrative
  Agent May File Proofs of Claim

  	
   

  
	
  10.10

  	
  Collateral and Guaranty
  Matters

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI  MISCELLANEOUS

  	
   

  
	
  11.01

  	
  Amendments, Etc.

  	
   

  
	
  11.02

  	
  Notices;
  Effectiveness; Electronic Communication

  	
   

  
	
  11.03

  	
  No Waiver; Cumulative
  Remedies

  	
   

  
	
  11.04

  	
  Expenses; Indemnity;
  Damage Waiver

  	
   

  
	
  11.05

  	
  Payments Set Aside

  	
   

  
	
  11.06

  	
  Successors and Assigns

  	
   

  
	
  11.07

  	
  Treatment
  of Certain Information; Confidentiality

  	
   

  
	
  11.08

  	
  Right of Setoff

  	
   

  
	
  11.09

  	
  Interest Rate Limitation

  	
   

  
	
  11.10

  	
  Counterparts;
  Integration; Effectiveness

  	
   

  
	
  11.11

  	
  Survival of
  Representations and Warranties

  	
   

  
	
  11.12

  	
  Severability

  	
   

  
	
  11.13

  	
  Replacement of Lenders

  	
   

  
	
  11.14

  	
  Governing Law;
  Jurisdiction; Etc.

  	
   

  
	
  11.15

  	
  Waiver of Jury Trial

  	
   

  
	
  11.16

  	
  USA PATRIOT Act Notice

  	
   

  
	
  11.17

  	
  Designation as Senior Debt

  	
   

  

 

iii

 

	
  SCHEDULES

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Schedule 2.01

  	
   

  	
  Lenders
  and Commitments

  	
   

  
	
  Schedule 6.12

  	
   

  	
  Subsidiaries

  	
   

  
	
  Schedule 6.16

  	
   

  	
  FCC Licenses

  	
   

  
	
  Schedule 6.17

  	
   

  	
  Satellites

  	
   

  
	
  Schedule 6.21

  	
   

  	
  Mortgaged
  Properties

  	
   

  
	
  Schedule 7.08

  	
   

  	
  Insurance

  	
   

  
	
  Schedule 8.01

  	
   

  	
  Existing Liens

  	
   

  
	
  Schedule 8.02

  	
   

  	
  Existing
  Investments

  	
   

  
	
  Schedule 8.03

  	
   

  	
  Existing
  Indebtedness

  	
   

  
	
  Schedule 11.02

  	
   

  	
  Notice
  Addresses

  	
   

  
	
  Schedule 11.06

  	
   

  	
  Processing
  and Recordation Fees

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXHIBITS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit 2.01(h)

  	
   

  	
  Form of
  Revolving Lender Joinder Agreement

  	
   

  
	
  Exhibit 2.01(i)

  	
   

  	
  Form of
  Incremental Tranche A Term Loan Joinder Agreement

  	
   

  
	
  Exhibit 2.01(j)

  	
   

  	
  Form of
  Incremental Tranche B Term Loan Joinder Agreement

  	
   

  
	
  Exhibit 2.01(k)

  	
   

  	
  Form of
  Tranche C Term Loan 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 2.13-3

  	
   

  	
  Form of
  Term Note

  	
   

  
	
  Exhibit 7.02(b)

  	
   

  	
  Form of
  Compliance Certificate

  	
   

  
	
  Exhibit 7.13

  	
   

  	
  Form of
  Joinder Agreement

  	
   

  
	
  Exhibit 11.06

  	
   

  	
  Form of
  Assignment and Assumption

  	
   

  

 

iv

 

CREDIT
AGREEMENT

 

This CREDIT AGREEMENT (this
“Credit Agreement”) is entered into as of April 13, 2005, among DIRECTV
HOLDINGS LLC, a Delaware limited liability company (the
“Borrower”), the Guarantors identified herein, the Lenders party hereto,
and BANK OF AMERICA, N.A., as Administrative Agent and Collateral Agent.

 

W I T N E S S E T H

 

WHEREAS, the Borrower and
the Guarantors have requested that the Lenders provide revolving credit and
term loan facilities for the purposes set forth herein; and

 

WHEREAS, the Lenders have
agreed to make the requested facilities 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 fifty percent
(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.

 

“Additional Notes”
means promissory notes or other instruments or agreements evidencing unsecured
senior or subordinated indebtedness issued after the Closing Date.

 

“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 the Administrative Agent’s address and, as appropriate,
account as set forth on Schedule 11.02, or such other address or
account 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.

 

1

 

“Aggregate Commitments”
means the aggregate principal amount of the Revolving Commitments, the Tranche
A Term Loan Commitments, the Tranche B Term Loan Commitments and the Tranche C
Term Loan Commitments, if any.

 

“Aggregate Commitment
Percentage” means, for each Lender, a fraction (expressed as a percentage
carried to the ninth decimal place), the numerator of which is the amount of
such Lender’s respective Revolving Commitment and Term Loan Commitment and the
denominator of which is the Aggregate Commitments.

 

“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, Canadian Dollars, Euro, Sterling, Swiss
Francs, Yen, Swedish Kroner and each other currency (other than Dollars) that
is approved in accordance with Section 1.07.

 

“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” means an amount equal to the lesser of the L/C Sublimit
and $25 million.  The Alternative
Currency Sublimit is part of, and not in addition to, the L/C Sublimit.

 

“Applicable Percentage” means the following
percentages per annum:

 

APPLICABLE
PERCENTAGES FOR REVOLVING LOANS, LETTERS OF CREDIT AND TRANCHE A TERM LOAN

 

	
  Pricing
  Level

  	
   

  	
  Consolidated Total

  Leverage Ratio

  	
   

  	
  Eurodollar Rate Loans

  and Standby Letter of

  Credit Fee

  	
   

  	
  Base

  Rate

  Loans

  	
   

  	
  Commitment

  Fee

  	
   

  
	
  I

  	
   

  	
  < 1.5:1.0

  	
   

  	
  0.750

  	
  %

  	
  0

  	
  %

  	
  0.175

  	
  %

  
	
  II

  	
   

  	
  >
  1.5:1.0 but < 2.5:1.0

  	
   

  	
  1.000

  	
  %

  	
  0

  	
  %

  	
  0.200

  	
  %

  
	
  III

  	
   

  	
  >
  2.5:1.0 but < 3.5:1.0

  	
   

  	
  1.250

  	
  %

  	
  0.250

  	
  %

  	
  0.225

  	
  %

  
	
  IV

  	
   

  	
  >
  3.5:1.0 but < 4.5:1.0

  	
   

  	
  1.500

  	
  %

  	
  0.500

  	
  %

  	
  0.250

  	
  %

  
	
  V

  	
   

  	
  >
  4.5:1.0

  	
   

  	
  1.750

  	
  %

  	
  0.750

  	
  %

  	
  0.375

  	
  %

  

 

2

 

APPLICABLE PERCENTAGES

FOR TRANCHE B TERM LOAN FUNDED ON THE CLOSING DATE

 

	
  Pricing
  Level

  	
   

  	
  Debt Rating

  	
   

  	
  Eurodollar Rate

  Loans

  	
   

  	
  Base Rate

  Loans

  	
   

  
	
  I

  	
   

  	
  BB or Ba2 and
  above

  	
   

  	
  1.500

  	
  %

  	
  0.500

  	
  %

  
	
  II

  	
   

  	
  BB- and Ba3 and
  below or unrated

  	
   

  	
  1.750

  	
  %

  	
  0.750

  	
  %

  

 

Applicable
Percentages for Revolving Loans (including Swingline Loans and Letters of
Credit), the Tranche A Term Loan (including any Incremental Tranche A Term Loan)
and the Commitment Fee will be based on the Consolidated Total Leverage Ratio
as set forth in the most recent Compliance certificate received by the
Administrative Agent pursuant to Section 7.02(b).  Any increase or decrease in such Applicable
Percentage resulting from a change in the Consolidated Total Leverage Ratio
shall become effective on the first Business Day immediately following the date
a Compliance Certificate is delivered pursuant to Section 7.02(b); provided,
however, that if a Compliance Certificate is not delivered when due in
accordance therewith, then Pricing Level V shall apply as of the first Business
Day after the date on which such Compliance Certificate was required to have
been delivered until the first Business Day immediately following delivery thereof.  The Applicable Percentage in effect from the
Closing Date through the date for delivery of the Compliance Certificate for
the fiscal quarter ending June 30, 2005 shall be determined based upon Pricing
Level IV for Revolving Loans (including Swingline Loans and Letters of Credit),
the Tranche A Term Loan and the Commitment Fee.

 

The Applicable
Percentages for the Tranche B Term Loan (including any Incremental Tranche B
Term Loan) will be based on the Borrower’s Debt Rating; 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 the
applicable Pricing Level shall be determined by reference to the higher (less
expensive) Debt Rating indicated thereby, (b) if there is only one (1) Debt
Rating, then the applicable Pricing Level shall be determined by reference to
the Pricing Level indicated thereby, (c) if there is no Debt Rating, then the
Applicable Percentage shall be set at Pricing Level II and (d) subject to the requirement that at least one
(1) of the Ratings Services must be either S&P or Moody’s, as provided in
the definition of “Ratings Service”, if the Borrower’s Debt Rating is
provided by a Rating Service other than S&P or Moody’s, the Applicable
Percentage will be based on the equivalent of any ratings category of S&P
or Moody’s used by such other Ratings Service. 
Initially, the Applicable Percentage shall be determined based upon the
Debt Rating specified in the certificate delivered pursuant to Section 5.01(d)(vi).  Thereafter, each change in the Applicable Percentage
resulting from a publicly announced change in the Debt Rating shall be
effective, in the case of an upgrade, during the period commencing on the date
of delivery by the Borrower to the Administrative Agent of notice thereof
pursuant to Section 7.03(b) and ending on the date immediately
preceding the effective date of the next such change and, in the case of a
downgrade, during the period commencing on the date of the public announcement
thereof and ending on the date immediately preceding the effective date of the
next such change.

 

The Applicable
Percentages for the Tranche C Term Loan, if any, will be as provided in the Tranche
C Term Loan Joinder Agreement.

 

Determinations by
the Administrative Agent of the appropriate Pricing Level shall be conclusive
absent manifest error.

 

3

 

“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 applicable, 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.

 

“Assignee Group”
means two (2) or more Eligible Assignees that are Affiliates of one another or
two (2) or more Approved Funds managed by the same investment advisor.

 

“Assignment and
Assumption” means an assignment and assumption entered into by a Lender and
an Eligible Assignee (with the consent of any party whose consent is required
by Section 11.06) and accepted by the Administrative Agent, in
substantially the form of Exhibit 11.06 or any other form approved by
the Administrative Agent.

 

“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 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 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.

 

“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 Eurodollar Rate Loans, having the same Interest Period, or (b) a
borrowing of Swingline Loans, as appropriate.

 

4

 

“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 New York, New York, and: (a) if such day relates to any interest rate
settings as to a Eurodollar Rate Loan denominated in Dollars, any fundings,
disbursements, settlements and payments in Dollars in respect of any such
Eurodollar Rate Loan, or any other dealings in Dollars to be carried out
pursuant to this Credit Agreement in respect of any such Eurodollar Rate Loan,
means any such day on which dealings in deposits in Dollars are conducted by
and between banks in the London interbank eurodollar market; (b) if such day
relates to any dealings in Euro to be carried out pursuant to this Credit Agreement,
means any such day which is a TARGET Day; and (c) if such day relates to any
dealings in any currency other than Dollars or Euro to be carried out pursuant
to this Credit Agreement, means any such day on which banks are open for
foreign exchange business in the principal financial center of the country of
such currency.

 

“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 Collateralize”
has the meaning specified in Section 2.03(g).

 

“Cash Equivalents”
means (a) securities issued or directly and fully guaranteed or insured by
the United States or any agency or instrumentality thereof (provided that the
full faith and credit of the United States is pledged in support thereof)
having maturities of not more than twelve (12) months from the date of
acquisition, (b) Dollar-denominated time deposits and certificates of deposit
of (i) any Lender, (ii) any domestic commercial bank of recognized
standing having capital and surplus in excess of $500 million or (iii) any
bank whose short-term commercial paper rating from S&P is at least A-1 or
from Moody’s is at least P-1, in each case with maturities of not more than
three hundred sixty-five (365) days from the date of acquisition,
(c) commercial paper issued by any issuer bearing at least a “2” rating
for any short-term rating provided by S&P and/or Moody’s and maturing
within two hundred seventy (270) days of the date of acquisition,
(d) repurchase agreements entered into by the Borrower with a bank or
trust company (including any of the Lenders) or recognized securities dealer
having capital and surplus in excess of $500 million for direct obligations
issued by or fully guaranteed by the United States, or for mortgage collateral,
in which the Borrower shall have a perfected first priority security interest
(subject to no other Liens) and having, on the date of purchase thereof, a fair
market value of at least one hundred percent (100%) of the amount of the
repurchase obligations, (e) variable or fixed rate notes issued by any issuer
rated at least AA by S&P (or the equivalent thereof) or at least Aa2 by
Moody’s (or the equivalent thereof) and maturing within one (1) year of the
date of acquisition and (f) Investments (classified in accordance with
GAAP as current assets) in money market investment programs registered under
the Investment Company Act of 1940, as amended, that are administered by
reputable financial institutions having capital and surplus of at least $500
million and the portfolios of which are limited to Investments of the character
described in the foregoing subclauses hereof.

 

“Change in Law”
means the occurrence, after the date of this Credit Agreement (or, in the case
of a permitted assignee of a Lender, after the date such assignee becomes a
party hereto), of any of the following: (a) the adoption or taking effect of
any law, rule, regulation or treaty, (b) any change in any law, rule,
regulation or treaty or in the administration, interpretation or application
thereof by any Governmental Authority or (c) the making or issuance of any
request, guideline or directive (whether or not having the force of law) by any
Governmental Authority.

 

5

 

“Change of Control”
means, with respect to any Person, an event or series of events by which:

 

(a)           any
“person” or “group” (as such terms are used in Sections 13(d) and 14(d) of
the Securities Exchange Act of 1934, but excluding any employee benefit plan of
such person or its subsidiaries, and any person or entity acting in its
capacity as trustee, agent or other fiduciary or administrator of any such
plan) other than a Permitted Holder becomes the “beneficial owner” (as defined
in Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934),
directly or indirectly, of fifty percent (50%) or more of the equity securities
of such Person entitled to vote for members of the board of directors or
equivalent governing body of such Person on a fully diluted basis; or

 

(b)           during
any period of twelve (12) consecutive
months, a majority of the members of the board of directors or other equivalent
governing body of such Person cease to be composed of individuals (i) who
were members of that board or equivalent governing body on the first day of
such period, (ii) whose election or nomination to that board or equivalent
governing body was approved by individuals referred to in clause (i)
above constituting at the time of such election or nomination at least a
majority of that board or equivalent governing body or (iii) whose
election or nomination to that board or other equivalent governing body was
approved by a Permitted Holder or by individuals referred to in clauses (i) and
(ii) above constituting at the time of such election or nomination
at least a majority of that board or equivalent governing body (excluding, in
the case of both clauses (ii) and (iii), any individual
whose initial nomination for, or assumption of office as, a member of that
board or equivalent governing body occurs as a result of an actual or
threatened solicitation of proxies or consents for the election or removal of
one or more directors by any person or group other than a solicitation for the
election of one (1) or more directors by or on behalf of the board of
directors).

 

“Closing Date”
means the date hereof.

 

“Co-Issuer” means
DIRECTV Financing Co., Inc., a Delaware corporation.

 

“Collateral” means
the collateral identified in, and at any time covered by, the Collateral
Documents.

 

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

 

“Collateral Documents”
means the Security Agreement, the Pledge Agreement, the Mortgages and any other
documents executed and delivered in connection with the attachment and
perfection of security interests granted to secure the Obligations.

 

“Commitment Fee”
has the meaning provided in Section 2.09.

 

“Commitment Percentage”
means the Revolving Commitment Percentage, the Tranche A Term Loan Commitment
Percentage, the Tranche B Term Loan Commitment Percentage and the Tranche C
Term Loan Commitment Percentage, if any, as appropriate.

 

“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.

 

6

 

“Commitments”
means the Revolving Commitment, the L/C Commitment, the Swingline Commitment,
the Tranche A Term Loan Commitments, the Tranche B Term Loan Commitments and
the Tranche C Term Loan Commitments, if any.

 

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

 

“Consolidated Capital
Expenditures” means, for any period for the Consolidated Group, without
duplication, all
expenditures with respect to property, plant and equipment during such period
which should be capitalized in accordance with GAAP (including the Attributable
Principal Amount of capital leases).

 

“Consolidated EBIT”
means, for any period for the Consolidated Group, Consolidated Net Income
before deducting therefrom total consolidated interest expense (to the extent
that such Consolidated Interest Expense was deducted in arriving at total consolidated
net income) and provision for taxes based on income that were included in
arriving at Consolidated Net Income and without giving effect to (i) any
extraordinary gains or any extraordinary non-cash losses (except to the extent
that any such extraordinary non-cash losses will require a cash payment in a
future period), (ii) any gains or losses from sales of assets other than from
sales of inventory in the ordinary course of business, (iii) the non-cash
component of any unusual or nonrecurring item of gain, loss, income or expense,
including write-offs and write-downs of assets other than inventory, (iv) any
non-cash gain or loss related to discontinued operations, (v) any non-cash
impairment loss of goodwill or other intangibles required to be taken pursuant
to Statement of Financial Accounting Standards Number 142, and (vi) any
non-cash expense recorded with respect to stock options or other equity-based
compensation, in each case to the extent used or included in determining
Consolidated Net Income, provided that with respect to accruals or reserves for
future cash disbursements, such future cash disbursements shall be deducted in
the fiscal period in which such cash disbursement is made.  Except as otherwise expressly provided, the
applicable period shall be the four (4) consecutive fiscal quarters ending as
of the date of determination. 
Consolidated EBIT shall be calculated on a Pro Forma Basis pursuant to
Section 1.03(b).

 

“Consolidated EBITDA”
means, for any period for the Consolidated Group, Consolidated EBIT for such
period, adjusted by (x) adding thereto (i) the amount of all amortization of
intangibles and depreciation that were deducted in arriving at Consolidated Net
Income for such period, (ii) the amount of all expenses incurred in connection
with the closing of this Credit Agreement to the extent that such expenses were
deducted in arriving at Consolidated Net Income for such period, (iii) the
amount of all non-cash deferred compensation expense to the extent that same
was deducted in arriving at Consolidated Net Income for such period, (iv) the
amount of all expenses associated with the early extinguishment of Indebtedness
and (v) for purposes of determining compliance with the financial covenants in Section
8.10 only, the Cure Amount, if any, received by the Borrower for such
period and (y) deducting therefrom the amount of all cash payments during such
period that are associated with any non-cash deferred compensation expense that
was added back to Consolidated Net Income in a previous period.  Except as otherwise expressly provided, the
applicable period shall be the four (4) consecutive fiscal quarters ending as
of the date of determination.  Consolidated
EBITDA shall be calculated on a Pro Forma Basis pursuant to Section 1.03(b).

 

“Consolidated Excess
Cash Flow” means, for any period for the Consolidated Group, the sum of (a)
reported cash flows from operating activities, minus (b) the sum of (i)
scheduled principal payments made on Consolidated Total Funded Debt (including
for purposes hereof, mandatory commitment reductions, sinking fund payments,
payments in respect of the principal components under capital leases and the
like relating thereto), (ii) Consolidated Capital Expenditures, but only to the
extent they exceed reserves established therefor under clause (v) below
in the prior twelve (12) month period, (iii) optional

 

7

 

prepayments of Funded
Debt (other than Revolving Loans owing under this Credit Agreement), (iv) to
the extent not financed with the incurrence or assumption of Indebtedness or
proceeds from Equity Transactions, Dispositions or Involuntary Dispositions,
sums expended for Permitted Acquisitions and Investments permitted under Section
8.02 (other than Investments in cash and Cash Equivalents), (v) reserves
established for Permitted Acquisitions that have been publicly announced but
not closed and for budgeted additions to plant, property and equipment in good
faith by the Borrower for anticipated cash uses in excess of cash sources
within the 12 month period from the date of determination (provided that
the Borrower shall indicate the particular uses for which the reserves are
established and give an accounting to the Administrative Agent, on request, on
the use thereof) and (vi) all proceeds from Securitization Transactions, plus
(c) the unused portion of reserves established under clause (b)(v) above
at the end of the applicable period not actually used for Permitted
Acquisitions that have been announced but not closed and for additions to
plant, property and equipment during the period.  Except as otherwise expressly provided, the
applicable period shall be for the four (4) consecutive fiscal quarters ending
as of the date of determination.

 

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

 

“Consolidated Interest
Coverage Ratio” means, as of the last day of each fiscal quarter for the
period of four (4) consecutive fiscal quarters then ending, the ratio of (i)
Consolidated EBITDA to (ii) Consolidated Interest Expense.

 

“Consolidated Interest
Expense” means, for any period for the Consolidated Group, the sum of the
total consolidated interest expense (calculated without regard to any
limitations on the payment thereof) plus, without duplication, the interest
component under Capital Leases and the implied interest component under
Securitization Transactions; provided that the amortization of (i)
deferred financing, legal and accounting costs with respect to this Credit
Agreement, the Existing Senior Notes and the Additional Notes (if any), (ii)
any interest expense attributable to the USSB Programming Contracts, NRTC
contract rights, NRTC member subscribers electing the long-term payment option
and long-term manufacturing subsidies in existence as of the Closing Date and
(iii) any interest expense attributable to Non-Recourse Indebtedness shall be
excluded from Consolidated Interest Expense to the extent the same would
otherwise have been included therein (other than interest expense attributable
to Securitization Transactions which shall not be so excluded).  Except as otherwise expressly provided, the
applicable period shall be the four (4) consecutive fiscal quarters ending as
of the date of determination. 
Consolidated Interest Expense shall be calculated on a Pro Forma Basis
pursuant to Section 1.03(b).

 

“Consolidated Net
Income” means, for any period for the Consolidated Group, the net income
(or loss), determined on a consolidated basis (after any deduction for minority
interests), provided that (i) in determining Consolidated Net Income,
the net income of any other Person which is not a Subsidiary of the Borrower or
is accounted for by the Borrower by the equity method of accounting shall be
included only to the extent of the payment of cash dividends or cash
distributions by such other Person to a member of the Consolidated Group during
such period and (ii) the net income of any Subsidiary of the Borrower shall be
excluded to the extent that the declaration or payment of cash dividends or
similar cash distributions by that Subsidiary of that net income is not at the
date of determination permitted by operation of its Organization Documents or
any agreement, instrument or law applicable to such Subsidiary.   Except as otherwise expressly provided, the
applicable period shall be the four (4) consecutive fiscal quarters ending as
of the date of determination. 
Consolidated Net Income shall be calculated on a Pro Forma Basis
pursuant to Section 1.03(b).

 

“Consolidated Senior
Secured Funded Debt” means the outstanding principal amount of all Loan
Obligations hereunder and the principal amount of all Funded Debt of the
Consolidated Group secured by

 

8

 

liens permitted under subsections
(c), (i), (o), (p), (q), or (s) of Section
8.01 (it being understood that outstanding letters of credit shall not
constitute Funded Debt unless such letters of credit have been drawn on by the
beneficiary thereof and the resulting obligations have not been paid by the
Borrower), but excluding, for purposes hereof, any such Funded Debt that is
Non-Recourse Indebtedness other than Funded Debt relating to a Securitization
Transaction which shall be considered “Consolidated Senior Secured Funded Debt”
hereunder even it if is Non-Recourse Indebtedness.  Consolidated Senior Secured Funded Debt shall
be calculated on a Pro Forma Basis pursuant to Section 1.03(b).

 

“Consolidated Senior
Secured Leverage Ratio” means, as of the last day of each fiscal quarter,
the ratio of (i) Consolidated Senior Secured Funded Debt on such day to (ii)
Consolidated EBITDA for the period of four (4) consecutive fiscal quarters
ending as of such day.

 

“Consolidated Total
Funded Debt” means,
at any time, the principal amount of all Funded Debt of the Consolidated Group
at such time determined on a consolidated basis (it being understood and agreed
that outstanding letters of credit shall not constitute Funded Debt unless such
letters of credit have been drawn on by the beneficiary thereof and the
resulting obligations have not been paid by the Borrower) , but excluding, for
purposes hereof, any such Funded Debt that is Non-Recourse Indebtedness other
than Funded Debt relating to a Securitization Transaction which shall be
considered “Consolidated Total Funded Debt” hereunder even if it is
Non-Recourse Indebtedness.  Consolidated
Total Funded Debt shall be calculated on a Pro Forma Basis pursuant to Section
1.03(b).

 

“Consolidated Total
Leverage Ratio” means, as of the last day of each fiscal quarter, the ratio
of (i) Consolidated Total Funded Debt on such day to (ii) Consolidated EBITDA
for the period of four (4) consecutive fiscal quarters ending as of such day.

 

“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.

 

“Controlled Person”
has the meaning provided in the defined term “News Group”.

 

“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 Collateral Documents, the Fee
Letter, the Issuer Documents, the Joinder Agreements, the Revolving Lender
Joinder Agreements, the Incremental Tranche A Term Loan Joinder Agreement, the Incremental
Tranche B Term Loan Joinder Agreement and the Tranche C Term Loan Joinder
Agreement, if any.

 

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

 

“Credit Parties”
means, collectively, the Borrower and the Guarantors.

 

“Credit Party
Materials” has the meaning provided in Section 7.02.

 

“Cure Amount” has
the meaning provided in Section 9.05.

 

9

 

“Cure Right” has
the meaning provided in Section 9.05.

 

“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.

 

“Debt Rating” means
the Borrower’s long term secured senior, non-credit enhanced debt ratings
provided by the Rating Services.

 

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

 

“Default Rate”
means an interest rate equal to (a) with respect to Obligations other than
(i) Eurodollar Rate Loans and (ii) Letter of Credit Fees, the Base Rate plus
the Applicable Percentage, if any, applicable to such Loans plus two
percent (2%) per annum; (b) with respect to Eurodollar Rate Loans, the
Eurodollar Rate plus the Applicable Percentage, if any, applicable to
such Loans plus two percent (2%) per annum; and (c) with respect to
Letter of Credit Fees, a rate equal to the Applicable Percentage plus
two percent (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 (1) 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 (1) Business Day of the date when due, unless the subject of a good
faith dispute, and has not cured such failure prior to the date of
determination, or (c) has been deemed insolvent or become the subject of a
bankruptcy or insolvency proceeding.

 

“Disposition” or “Dispose”
means the sale, transfer, license, lease or other disposition (including any
Sale and Leaseback Transaction) of any Property by any Person, including any
sale, assignment, transfer or other disposal, with or without recourse, of any
notes or accounts receivable or any rights and claims associated therewith, but
excluding, for purposes hereof, (a) Dispositions of obsolete or worn out property,
whether now owned or hereafter acquired, in the ordinary course of business;
(b) Dispositions of inventory, services or other property in the ordinary
course of business; (c) Dispositions of equipment or real property to the
extent that (i) such property is exchanged for credit against the purchase
price of similar replacement equipment or property or (ii) the proceeds of
such Disposition are reasonably promptly applied to the purchase price of such
replacement equipment or property; (d) Dispositions pursuant to Securitization
Transactions; (e) licenses, sublicenses, leases and subleases not interfering
in any material respect with the business of any member of the Consolidated
Group; (f) sales or discounts of accounts receivable in connection with the compromise
or collection thereof; (g) Dispositions by a member of the Consolidated Group
to another member of the Consolidated Group; and (h) Dispositions of rights to
construct or launch satellites (including ownership of such satellites after
launch).

 

“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

 

10

 

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 Credit Party”
means any Credit Party that is organized under the laws of any State of the
United States or the District of Columbia.

 

“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 the party or parties
whose approval is required under Section 11.06(b); provided that
notwithstanding the foregoing, “Eligible Assignee” shall not include the
Borrower or any of the Borrower’s Affiliates or Subsidiaries.

 

“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.

 

“Environmental Laws”
means any and all applicable federal, state, local, and foreign statutes, laws,
regulations, ordinances, rules, judgments, orders, decrees, permits,
concessions, grants, franchises, licenses, 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.

 

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

 

“Equity 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 a conversion of debt securities
to equity, (c) 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, (d) in connection with any
Acquisition permitted hereunder, (e) in connection with the redemption of the
Existing Senior Notes, (f) in connection with any Capital Expenditure or (g) a
capital contribution made in connection with the exercise of a Cure Right under
Section 9.05.

 

“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).

 

“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

 

11

 

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

 

“Eurodollar Base Rate”
has the meaning specified in the definition of Eurodollar Rate.

 

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

 

	
  Eurodollar
  Rate =

  	
   

  	
  Eurodollar Base Rate

  
	
   

  	
  1.00 minus Eurodollar Reserve Percentage

  

 

Where,

 

“Eurodollar Base Rate”
means, for such Interest Period, the rate per annum equal to the British
Bankers Association LIBOR Rate (“BBA LIBOR”), as published by Reuters
(or other commercially available source providing quotations of BBA LIBOR as
designated by the Administrative Agent from time to time) at approximately
11:00 a.m., London time, two (2) Business Days prior to the commencement of
such Interest Period, for Dollar deposits (for delivery on the first day of
such Interest Period) with a term equivalent to such Interest Period.  If such rate is not available at such time
for any reason, then the “Eurodollar Base Rate” for such Interest Period shall
be the rate per annum determined by the Administrative Agent to be the rate at
which deposits in Dollars for delivery on the first day of such Interest Period
in same day funds in the approximate amount of the Eurodollar 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 to
major banks in the London interbank eurodollar market at their request at
approximately 11:00 a.m., London time, two (2) Business Days prior to the
commencement of such Interest Period.

 

“Eurodollar Reserve
Percentage” means, for any day during any Interest Period, the reserve
percentage (expressed as a decimal, carried out to five (5) decimal places) in
effect on such day, whether or not applicable to any Lender, under regulations
issued from time to time by the FRB for determining the maximum reserve
requirement (including any emergency, supplemental or other marginal reserve
requirement) with respect to Eurocurrency funding (currently referred to as “Eurocurrency
liabilities”).  The Eurodollar Rate for
each outstanding Eurodollar Rate Loan shall be adjusted automatically as of the
effective date of any change in the Eurodollar Reserve Percentage.

 

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

 

“Event of Default”
has the meaning provided in Section 9.01.

 

12

 

“Excluded Domestic
Subsidiaries” means (a) a Domestic Subsidiary that is not a United States
person under Section 7701(a)(30) of the Internal Revenue Code, (b) a
Receivables Subsidiary or (c) a Financing Subsidiary.

 

“Excluded Property”
means (a) any personal Property (including motor vehicles) in respect of which
perfection of a Lien is not either (i) governed by the UCC or (ii) effected by
appropriate evidence of the Lien being filed in either the United States
Copyright Office or the United States Patent and Trademark Office, (b) any
leasehold interests in real property, (c) any fee
interests in real property other than the Mortgaged Properties, (d) any
Property that is subject to a Lien permitted under Section 8.01(i)
pursuant to documents that prohibit such Credit Party from granting any other
Liens in such Property, (e) any Property that is subject to a Lien pursuant to
a Securitization Transaction and (f) any permit, lease, license, contract or
instrument now or hereafter in effect of a Credit Party if the grant of a
security interest in such permit, lease, license, contract or instrument in a
manner contemplated by this Credit Agreement, under the terms thereof or under
applicable Law, is prohibited and would result in the termination thereof or
give the other parties thereto the right to terminate, accelerate or otherwise
materially and adversely alter such Credit Party’s rights, titles and interests
thereunder (including upon the giving of notice or the lapse of time or both).

 

“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), including branch profit Taxes or any
similar Taxes, and franchise Taxes imposed on it (in lieu of net income Taxes),
by the jurisdiction (or any political subdivision thereof) under the laws of
which such recipient is organized or in which its principal office is located
or, in the case of any Lender, in which its applicable Lending Office is
located, (b) any branch profits taxes imposed by the United States or any
similar tax imposed by any other jurisdiction in which the Borrower is located
and (c) in the case of a recipient (other than an assignee pursuant to a
request by the Borrower under Section 11.13), any withholding Tax that
is imposed on amounts payable to such recipient at the time such recipient
becomes a party hereto (or designates a new Lending Office) or is attributable
to such recipient’s failure or inability (other than as a result of a Change in
Law) to comply with Section 3.01(e), except to the extent that such recipient
(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).

 

“Existing Credit
Agreement” means the Credit Agreement, dated as of March 6, 2003, among the
Borrower, the lenders party thereto from time to time, Deutsche Bank Trust
Company Americas, as Administrative Agent, and Bank of America, as Syndication
Agent, as amended or modified from time to time.

 

“Existing Senior Note
Indenture” means the Indenture, dated as of February 28, 2003, among the
Borrower, the Co-Issuer and The Bank of New York, as amended and modified,
pursuant to which the Existing Senior Notes were issued.

 

“Existing Senior Notes”
means the Borrower’s and the Co-Issuer’s 8.375% Senior Notes, due 2013, issued
pursuant to the Existing Senior Note Indenture in an original principal amount
of $1.4 billion.

 

“FCC” means the
Federal Communications Commission or any governmental authority substituted
therefor.

 

13

 

“FCC Licenses”
means all authorizations, orders, licenses and permits issued by the FCC to
members of the Consolidated Group under which members of the Consolidated Group
are authorized to launch and operate its Satellites or to operate its transmit
only, receive only or transmit and receive earth stations.

 

“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
next preceding Business Day as so published on the next succeeding Business
Day, and (b) if no such rate is so published on such next succeeding
Business Day, the Federal Funds Rate for such day shall be the average rate
(rounded upward, if necessary, to the multiple of 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 13, 2005, among the Borrower, Bank of
America, BAS, JPMCB and JPMCS.

 

“Financing Subsidiary”
means a Subsidiary of the Borrower:

 

(1)           that
is formed solely for the purpose of, and that engages in no activities other
than activities in connection with, financing the purchase of customer premise
and receiving equipment (including delivery and installation costs) by retail
customers of the Consolidated Group;

 

(2)           that
is designated by the Borrower as a Financing Subsidiary;

 

(3)           no
portion of the Indebtedness or any other obligation (contingent or otherwise)
of which (a) is at any time guaranteed by any Credit Party (excluding
guaranties of obligations other than any guarantee of Indebtedness pursuant to
a Standard Securitization Undertaking), (b) is at any time recourse to or
obligates any Credit Party in any way other than pursuant to a Standard
Securitization Undertaking or (c) subjects any asset of any Credit Party,
directly or indirectly, contingently or otherwise, to the satisfaction thereof,
other than pursuant to a Standard Securitization Undertaking;

 

(4)           with
which no Credit Party has any material contract, agreement, arrangement or
understanding other than contracts, agreements, arrangements and understandings
entered into in the ordinary course of business on terms no less favorable to
such Credit Party than those that might be obtained at the time from Persons
that are not such Credit Party’s Affiliates and fees payable in the ordinary
course of business in connection with such financing activities; and

 

(5)           with
respect to which no Credit Party has any obligation (a) to subscribe for
additional shares of Capital Stock therein or make any additional capital
contribution or similar payment or transfer thereto or (b) to maintain or
preserve the solvency or any balance sheet term, financial condition, level of
income or results of operations thereof.

 

“First-Tier Foreign
Subsidiary” means any Foreign Subsidiary that is owned directly by a
Domestic Credit Party.

 

“Foreign Lender”
means any Lender or L/C Issuer that is not a United States person under
Section 7701(a)(30) of the Internal Revenue Code.

 

“Foreign Subsidiary”
means any Subsidiary that is not a Domestic Subsidiary.

 

14

 

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

 

“Fund”
means any Person (other than a natural person) that is (or will be) 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 Loan 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, except for customary conditional sales
and title retention arrangements with suppliers that are entered into in the
ordinary course of business) and all indebtedness and obligations in respect of
the deferred purchase price of property or services (other than trade accounts
payable incurred in the ordinary course of business);

 

(c)           all direct obligations
under letters of credit (including standby and commercial), bankers’
acceptances and similar instruments (including bank guaranties, surety bonds,
comfort letters, keep-well agreements and capital maintenance agreements) to
the extent such instruments or agreements support financial, rather than
performance, obligations;

 

(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 prior to the Term Loan Termination Date with
respect to the Tranche B Term Loan;

 

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

 

(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 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 and the deferred purchase obligations 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.

 

15

 

“Governmental
Authority” means the government of the United States or any other nation,
or of any political subdivision thereof, whether state or local, and any
agency, authority, instrumentality, regulatory body, court, central bank or
other entity exercising executive, legislative, judicial, taxing, regulatory or
administrative powers or functions of or pertaining to government (including
any supra-national bodies such as the European Union or the European Central
Bank).

 

“Granting
Lender” has the meaning specified in Section 11.06(h).

 

“Guaranteed
Obligations” has the meaning provided in Section 4.01(a).

 

“Guarantors”
means, collectively, each Subsidiary of the Borrower identified on the
signature pages hereto as a “Guarantor” and each other Subsidiary of the
Borrower that becomes a Guarantor pursuant to the terms hereof, in each case
together with their successors and permitted assigns.

 

“Hazardous Materials”
means all materials, substances or wastes characterized, classified or
regulated as hazardous, toxic, pollutant, contaminant or radioactive under
Environmental Laws, including petroleum or petroleum distillates, asbestos or
asbestos-containing materials, polychlorinated biphenyls, radon gas, infectious
or medical wastes.

 

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

 

“Incremental Loan
Facilities” has the meaning provided in Section 2.01(g).

 

“Incremental Revolving
Loans” has the meaning provided in Section 2.01(g).

 

“Incremental
Tranche A Term Loan” has the meaning provided in Section 2.01(g).

 

“Incremental Tranche A
Term Loan Joinder Agreement” means a lender joinder agreement substantially
in the form of Exhibit 2.01(i) executed and delivered in accordance with
the provisions of Section 2.01(i).

 

“Incremental
Tranche B Term Loan” has the meaning provided in Section 2.01(g).

 

“Incremental Tranche B
Term Loan Joinder Agreement” means a lender joinder agreement substantially
in the form of Exhibit 2.01(j) executed and delivered in accordance with
the provisions of Section 2.01(j).

 

“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)           all contingent
obligations under letters of credit (including standby and commercial), bankers’
acceptances and similar instruments (including bank guaranties, surety bonds,
comfort letters, keep-well agreements and capital maintenance agreements) to
the extent such instruments or agreements support financial, rather than
performance, obligations;

 

(c)           net obligations under
Swap Contracts;

 

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

 

16

 

(e)           Indebtedness of any
partnership or joint venture or other similar entity in which such Person is a
general partner or joint venturer, and 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 Indebtedness shall be determined (i) based on Swap Termination Value
in the case of net obligations under Swap Contracts under clause (c) 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
(d).

 

“Indemnified Taxes”
means Taxes other than Excluded Taxes.

 

“Indemnitee” has
the meaning provided in Section 11.04(b).

 

“Information” has
the meaning specified in Section 11.07.

 

“Interest Payment Date”
means, (a) as to any Base Rate Loan (including Swingline Loans), the last
Business Day of each March, June, September and December, the Revolving
Termination Date and the date of the final principal amortization payment on each
Term Loan and, in the case of any Swingline Loan, any other dates as may be
mutually agreed upon by the Borrower and the Swingline Lender, and (b) as
to any Eurodollar Rate Loan, the last Business Day of each Interest Period for
such Loan, the date of repayment of principal of such Loan, the Revolving
Termination Date and the date of the final principal amortization payment on each
Term Loan, 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 Eurodollar Rate Loan, the period commencing on the date such
Eurodollar Rate Loan is disbursed or converted to or continued as a Eurodollar
Rate Loan and ending on the date one (1), two (2), three (3) or six (6) and, with
prior written consent of all applicable Lenders, nine (9) or twelve (12) months
thereafter, as selected by the Borrower in its Loan Notice or such other period
that is twelve months or less requested by the Borrower and consented to by all
the directly affected Lenders; 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;

 

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

 

(d)           no Interest Period with
respect to either of the Term Loans shall extend beyond any principal
amortization payment date, except to the extent that the portion of such Loan
comprised of Eurodollar Rate Loans that is expiring prior to the applicable
principal amortization payment date plus the portion comprised of Base
Rate Loans equals or exceeds the principal amortization payment then due.

 

“Internal Revenue Code”
means the Internal Revenue Code of 1986.

 

17

 

“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 and
any arrangement pursuant to which the investor undertakes any Support
Obligation with respect to Indebtedness of 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.

 

“Involuntary
Disposition” means the receipt by any member of the Consolidated Group of
any cash insurance proceeds or condemnation awards payable by reason of theft,
loss, physical destruction or damage, loss of use, taking or similar event with
respect to any of its Property.

 

“IP Rights” has
the meaning provided in Section 6.18.

 

“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.

 

“Joinder Agreement”
means a joinder agreement substantially in the form of Exhibit 7.13
executed and delivered in accordance with the provisions of Section 7.13.

 

“JPMCB” means JPMorgan
Chase Bank, N.A., together with its successors.

 

“JPMCS” means J.P.
Morgan Securities Inc., together with its successors.

 

“Laws” means,
collectively, all international, foreign, federal, state and local statutes,
treaties, rules, guidelines, regulations, ordinances, codes, executive orders
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, including, without
limitation, Environmental Laws.

 

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

 

“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.  Each L/C Borrowing shall be
denominated in Dollars.

 

18

 

“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 (7) 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 date of determination, the aggregate amount available to be drawn
under all outstanding Letters of Credit plus the aggregate of all
Unreimbursed Amounts, including L/C Borrowings. 
For purposes of computing the amount available to be drawn under any
Letter of Credit, the amount of such Letter of Credit shall be determined in
accordance with Section 1.09.  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).

 

“Lender” means
each of the Persons identified as a “Lender” on the signature pages hereto
(and, as appropriate, includes the Swingline Lender) and each Person who joins
as a Lender pursuant to the terms hereof, together with their respective
successors and permitted assigns.

 

“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 standby and commercial letter of
credit issued hereunder.

 

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

 

“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, any
easement, right of way or other encumbrance on title to real property and any
financing lease having substantially the same economic effect as any of the
foregoing).

 

“Loan” means any
Revolving Loan, Swingline Loan or Term Loan, and the Base Rate Loans and
Eurodollar 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 (1) Type to the other, or (c) a continuation of
Eurodollar Rate Loans, which, if in writing, shall be substantially in the form
of Exhibit 2.02.

 

“Loan Obligations”
means the Revolving Obligations and the Term Loans.

 

19

 

“Material Adverse
Effect” means (a) a material adverse change in, or a material adverse
effect upon, the operations, business, assets, properties, liabilities (actual
or contingent) or condition (financial or otherwise) of the Consolidated Group taken
as a whole; (b) a material impairment of the ability of the Credit Parties
(taken as a whole) to perform their obligations under the Credit Documents; or
(c) a material adverse effect upon the legality, validity, binding effect
or the enforceability against any Credit Party of any Credit Document to which
it is a party.

 

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

 

“Mortgaged Property”
means each real property set forth on Schedule 6.21.

 

“Mortgages” means
those mortgages, deeds of trust, security deeds or like instruments given by
the Credit Parties, as grantors, to the Collateral Agent to secure the
Obligations, and any other such instruments that may be given by any Person
pursuant to the terms hereof, as such instruments may be amended and modified
from time to time.

 

“Multiemployer Plan”
means any employee pension 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 (5)
plan years, has made or been obligated to make contributions.

 

“Net Cash Proceeds”
means the aggregate proceeds paid in cash or Cash Equivalents received by any
member of the Consolidated Group in connection with any Disposition, Involuntary
Disposition or Equity Transaction, net of (a) direct costs (including reasonable
and customary legal, accounting and investment banking fees, sales commissions
and underwriting discounts) and (b) estimated taxes paid or payable as a result
thereof.  For purposes hereof, “Net Cash
Proceeds” includes any cash or Cash Equivalents received upon the disposition
of any non-cash consideration received by any member of the Consolidated Group
in any Disposition or Equity Transaction.

 

“News Group” means
News Corporation, a Delaware corporation, and any of its successors and
Affiliates, and (a) K. Rupert Murdoch and any executor, administrator,
guardian, conservator or similar legal representative thereof, (b) any member
of the immediate family of K. Rupert Murdoch, (c) any Person directly or
indirectly controlled by one or more of the members of the Murdoch family
described above (a “Controlled Person”), and (d) any Person acting as
agent for any Person described in clauses (a) through (d) hereof;
provided that a trust and the trustees of such trust shall be deemed to be
controlled by any one or more members of the Murdoch family if a majority of
the trustees of such trust are members of the Murdoch family or may be removed
or replaced by any one or more of the members of the Murdoch family and/or
Controlled Persons.

 

“Non-Recourse
Indebtedness” has the meaning specified in the definition of “Receivables
Subsidiary”.

 

“Notes” means the
Revolving Notes, the Swingline Note and the Term Notes.

 

“Notice of Intent to
Cure” has the meaning provided in Section 7.02(b).

 

“NRTC” means the
National Rural Telecommunications Cooperative.

 

“Obligations”
means, without duplication, (a) all advances to, and debts, liabilities,
obligations, covenants and duties of, any Credit Party arising under any Credit
Document or otherwise with respect to

 

20

 

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
any Credit Party 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, (b) all obligations under any
Swap Contract between any Credit Party and any Lender or Affiliate of a Lender
to the extent permitted hereunder and (c) all obligations under any Treasury
Management Agreement between any Credit Party and any Lender or Affiliate of a
Lender.

 

“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.

 

“Outstanding Amount”
means (a) with respect to Revolving Loans and Swingline Loans on any date,
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; (b) with respect to any L/C Obligations on any
date, the Dollar Equivalent amount of the aggregate outstanding 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 by the
Borrower of Unreimbursed Amounts (c) with respect to the Tranche A Term
Loan on any date, the aggregate outstanding principal amount thereof after
giving effect to any prepayments or repayments of the Tranche A Term Loan on
such date, (d) with respect to the Tranche B Term Loan on any date, the
aggregate outstanding principal amount thereof after giving effect to any
prepayments or repayments of the Tranche B Term Loan on such date, and (e) with respect to the Tranche C Term
Loan, if any, on any date, the aggregate outstanding principal amount thereof
after giving effect to any prepayments or repayments of the Tranche C Term Loan
on such date.

 

“Overnight Rate”
means, for any day, (a) with respect to any amount denominated in Dollars, the
Federal Funds Rate, 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 in the
applicable offshore interbank market for such currency to major banks in such interbank
market.

 

“Parent” means The DIRECTV
Group, Inc., a Delaware corporation, and any of its successors and Affiliates.

 

“Participant”
has the meaning specified in Section 11.06(d).

 

21

 

“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 (5) plan years.

 

“Permitted
Acquisition” means any Acquisition, provided that (i) the property
acquired (or the property of the Person acquired) in such Acquisition shall be
used or useful in a Permitted Business, (ii)  the property to be acquired in connection with
such Acquisition shall be located primarily in the United States of America,
(iii) in the case of an Acquisition of the capital stock or other equity
interest of another Person, the board of directors (or other comparable
governing body) of such other Person shall have duly approved such Acquisition,
(iv) no Default or Event of Default shall exist immediately after giving effect
to such Acquisition, (v) the representations and warranties made by the
Borrower herein shall be true and correct in all material respects at and as if
made as of the date of such Acquisition (after giving effect thereto) except to
the extent such representations and warranties expressly relate to an earlier
date, and (vi) if such Acquisition is for consideration greater than $50
million, the Borrower shall have delivered to the Administrative Agent a
compliance certificate signed by a Responsible Officer demonstrating compliance
with the financial covenants hereunder after giving effect to the subject
Acquisition on a Pro Forma Basis and reaffirming that the representations and
warranties made hereunder are true and correct in all material respects as of
such date except to the extent such representations and warranties expressly
relate to an earlier date.

 

“Permitted
Business” means any of developing, owning, engaging in and dealing with all
or any part of the business of domestic and international media, entertainment,
electronics, communications, voice, data and network services and reasonably
related extensions thereof, including but not limited to the purchase,
ownership, operation, leasing and selling of, and generally dealing in or with,
one or more communications satellites and the transponders thereon, and
communications uplink centers and related terrestrial infrastructure, the
acquisition, transmission, broadcast, production and other provision of
programming relating thereto and the manufacturing, distribution and financing
of equipment (including consumer electronic equipment) relating thereto.

 

“Permitted
Holders” means each of (a) News Group, (b) Parent and (c) any other Person,
directly or indirectly, controlled by any of the foregoing.

 

“Permitted Liens”
means Liens permitted pursuant to Section 8.01.

 

“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.

 

“Platform” has the
meaning specified in Section 7.02.

 

22

 

“Pledge Agreement”
means the pledge agreement dated as of the Closing Date given by the Credit
Parties, as pledgors, to the Collateral Agent to secure the Obligations, and
any other pledge agreements that may be given by any Person pursuant to the
terms hereof, in each case as the same may be amended and modified from time to
time.

 

“Pro Forma Basis”
means, with respect to any transaction, for purposes of determining the
applicable pricing level under the definition of “Applicable Percentage” and
determining compliance with the financial covenants hereunder, that such
transaction shall be deemed to have occurred as of the first day of the period
of four (4) consecutive fiscal quarters ending as of the end of the most recent
fiscal quarter for which annual or quarterly financial statements shall have
been delivered in accordance with the provisions hereof, after giving effect to
any Pro Forma Cost Savings.  Further, for
purposes of making calculations on a “Pro Forma Basis” hereunder, (a) in the
case of any Disposition, (i) income statement items (whether positive or
negative) attributable to the property, entities or business units that are the
subject of such Disposition shall be excluded to the extent relating to any
period prior to the date thereof and (ii) Indebtedness paid or retired in
connection with such Disposition shall be deemed to have been paid and retired
as of the first day of the applicable period; and (b) in the case of any
Acquisition, (i) income statement items (whether positive or negative)
attributable to the property, entities or business units that are the subject
thereof shall be included to the extent relating to any period prior to the
date thereof and (ii) Indebtedness incurred in connection with such Acquisition shall be deemed to have been incurred as of the first day
of the applicable period (and interest expense shall be imputed for the
applicable period assuming prevailing interest rates hereunder).

 

“Pro Forma Cost
Savings” means, with respect to any period, the reduction in net costs and
related adjustments that (i) were directly attributable to an acquisition,
merger, consolidation or disposition that occurred during the four-quarter
reference period or subsequent to the four-quarter reference period and on or
prior to the date of determination and calculated on a basis that is consistent
with Regulation S-X under the Securities Act of 1933, as amended and in effect
and applied as of the date hereof, (ii) were actually implemented by the
business that was the subject of any such acquisition, merger, consolidation or
disposition within 12 months after the date of the acquisition, merger,
consolidation or disposition and prior to the date of determination that are
supportable and quantifiable by the underlying accounting records of such
business or (iii) relate to the business that is the subject of any such
acquisition, merger, consolidation or disposition and that the Borrower
reasonably determines are probable based upon specifically identifiable actions
to be taken within 12 months of the date of the acquisition, merger,
consolidation or disposition and, in the case of each of (i), (ii) and (iii),
are described, as provided below, in a certificate from a Responsible Officer
of the Borrower, as if all such reductions in costs had been effected as of the
beginning of such period. Pro Forma Cost Savings described above shall be
accompanied by a certificate from a Responsible Officer of the Borrower
delivered to the Administrative Agent that outlines the specific actions taken
or to be taken, the net cost savings achieved or to be achieved from each such
action and that, in the case of clause (iii) above, such savings have been
determined to be probable.

 

“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 (or,
if either S&P or Moody’s, but not both, shall not make the Borrower’s long
term secured, senior, non-credit enhanced debt rating publicly available or the
Borrower decides in its sole discretion to substitute S&P or Moody’s, but
not both, with a nationally recognized securities rating agency or agencies, as
the case may be, selected by the Borrower, which may be substituted for S&P
or Moody’s, as the case may be).

 

“Receivables
Subsidiary” means a Subsidiary of the Borrower:

 

23

 

(1)           that
is formed solely for the purpose of, and that engages in no activities other
than activities in connection with, financing accounts receivable of the Credit
Parties;

 

(2)           that
is designated by the Borrower as a Receivables Subsidiary and that has total
assets at the time of such creation and designation with a book value of $10,000
or less;

 

(3)           no
portion of the Indebtedness or any other obligation (contingent or otherwise)
of which (a) is at any time guaranteed by any Credit Party (excluding
guarantees of obligations (other than any guarantee of Indebtedness) pursuant
to Standard Securitization Undertakings), (b) is at any time recourse to or
obligates any Credit Party in any way, other than pursuant to Standard
Securitization Undertakings or (c) subjects any asset of any Credit Party,
directly or indirectly, contingently or otherwise, to the satisfaction thereof,
other than pursuant to Standard Securitization Undertakings (such Indebtedness,
“Non-Recourse Indebtedness”);

 

(4)           with
which no Credit Party has any material contract, agreement, arrangement or
understanding other than contracts, agreements, arrangements and understandings
entered into in the ordinary course of business on terms no less favorable to
such Credit Party than those that might be obtained at the time from persons
that are not such Credit Party’s Affiliates in connection with a Securitization
Transaction and fees payable in the ordinary course of business in connection
with servicing accounts receivable in connection with such a Securitization
Transaction; and

 

(5)           with
respect to which no Credit Party has any obligation (a) to subscribe for
additional shares of Capital Stock therein or make any additional capital
contribution or similar payment or transfer thereto or (b) to maintain or
preserve the solvency or any balance sheet term, financial condition, level of
income or results of operations thereof.

 

“Register” has the
meaning provided in Section 11.06(c).

 

“Registered Public
Accounting Firm” has the meaning specified in the Securities Laws and shall
be independent of the Borrower as prescribed by the Securities Laws.

 

“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.

 

“Repricing Transaction” means the incurrence by any Credit Party of any new or additional
term loans (whether issued pursuant to an amendment to this Credit Agreement or
pursuant to a separate financing) that is broadly marketed or syndicated to
institutional investors in financings similar to the Tranche B Term Loan (i)
having an effective interest rate margin or weighted average yield (to be determined
by the Administrative Agent consistent with generally accepted financial
practice, after giving effect to, among other factors, margins, upfront or
similar fees or original issue discount shared with all lenders or holders
thereof, but excluding the effect of any arrangement, structuring, syndication
or other fees payable in connection therewith that are not shared with all
lenders or holders thereof) that is less than the Applicable Percentage for, or
weighted average yield (to be determined by the Administrative Agent on the
same basis) of, the Tranche B Term Loan, and (ii) the proceeds of which are
used to repay, in whole or in part, principal of the outstanding Tranche B Term
Loan.

 

24

 

“Request for Credit
Extension” means (a) with respect to a Borrowing of Loans (including
Swingline 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 Commitments or, if the Commitments shall have expired or
been terminated, Lenders holding in the aggregate more than fifty percent (50%)
of the Loan 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 Loan Obligations held or deemed held by, any Defaulting Lender shall be
excluded for purposes of making a determination of Required Lenders.

 

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

 

“Required
Tranche A Term Lenders” means, as of any date of determination,
Lenders holding more than fifty percent (50%) of the aggregate principal amount
of Tranche A Term Loan Commitments; provided that the
Tranche A Term Loan Commitments held or deemed held by any Defaulting
Lender shall be excluded for purposes of making a determination of Required
Tranche A Term Lenders.

 

“Required
Tranche B Term Lenders” means, as of any date of determination,
Lenders holding more than fifty percent (50%) of the aggregate principal amount
of Tranche B Term Loan Commitments; provided that the
Tranche B Term Loan Commitments held or deemed held by any Defaulting
Lender shall be excluded for purposes of making a determination of Required
Tranche B Term Lenders.

 

“Required
Tranche C Term Lenders” means, as of any date of determination,
Lenders holding more than fifty percent (50%) of the aggregate principal amount
of Tranche C Term Loan Commitments, if any; provided that the
Tranche C Term Loan Commitments held or deemed held by any Defaulting
Lender shall be excluded for purposes of making a determination of Required
Tranche C Term Lenders.

 

“Responsible Officer”
means the chief executive officer, the president, any executive vice president,
the chief financial officer, the treasurer, any assistant treasurer or any vice
president-finance of a Credit Party.  Any
document delivered hereunder that is signed by a Responsible Officer of a
Credit Party shall be conclusively presumed to have been authorized by all
necessary corporate, partnership and/or other action on the part of such Credit
Party and such Responsible Officer shall be conclusively presumed to have acted
on behalf of such Credit Party.

 

“Restricted Payment”
means (i) 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, (ii) 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 and (iii) any prepayment of other Funded Debt.

 

“Revaluation
Date” means, 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

 

25

 

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 L/C
Issuer shall determine or the Required Lenders shall require.

 

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

 

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

 

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

 

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

 

“Revolving Lenders”
means those Lenders with Revolving Commitments, together with their successors
and permitted assigns.  The initial
Revolving Lenders are identified on the signature pages hereto and are set forth
in Schedule 2.01.

 

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

 

“Revolving Notes”
means the promissory notes, if any, given to evidence the Revolving Loans, as
amended, restated, modified, supplemented, extended, renewed or replaced.  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 April 13, 2011.

 

“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 a Credit
Party) 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, as applicable, to be customary in the
place of disbursement or payment for the settlement of international banking
transactions in the relevant Alternative Currency.

 

“Sarbanes-Oxley”
means the Sarbanes-Oxley Act of 2002.

 

26

 

“Satellite”
means any satellite owned by, leased to or for which a contract to purchase has
been entered into by, any member of the Consolidated Group, whether such
satellite is in the process of manufacture, has been delivered for launch or is
in orbit (whether or not in operational service).

 

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

 

“Securities Laws”
means the Securities Act of 1933, the Securities Exchange Act of 1934, Sarbanes-Oxley
and the applicable accounting and auditing principles, rules, standards and
practices promulgated, approved or incorporated by the SEC or the Public
Company Accounting Oversight Board, as each of the foregoing may be amended and
in effect on any applicable date hereunder.

 

“Securitization
Receivables” has the meaning specified in the definition of “Securitization
Transaction”.

 

“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 Receivables Subsidiary.

 

“Security Agreement”
means the security agreement dated as of the Closing Date given by the Credit
Parties, as grantors, to the Collateral Agent to secure the Obligations, and
any other security agreements that may be given by any Person pursuant to the
terms hereof, in each case as the same may be amended and modified from time to
time.

 

“SPC” has the
meaning specified in Section 11.06(h).

 

“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.

 

“Standard Securitization
Undertaking” means representations, warranties, covenants, indemnitees and
guarantees of performance entered into by any Credit Party which are reasonably
customary in an accounts receivable or equipment lease financing securitization
transaction, including, without limitation, those relating to the servicing of
the assets of a Receivables Subsidiary or a Financing Subsidiary, it being
understood that any obligation of a seller of receivables in a Securitization
Transaction to repurchase receivables arising as a result of a breach of a
representation, warranty or covenant or otherwise, including as a result of a
receivable or portion thereof becoming subject to any asserted defense,
dispute, off-set or counterclaim of any kind as a result of any action taken
by, any failure to take action by or any other event relating to the seller,
which is customary for off-balance sheet receivables financing shall be deemed
to be a Standard Securitization Undertaking.

 

27

 

“Sterling”
and “£” mean the lawful currency of the United Kingdom.

 

“Subordinated Debt”
means Funded Debt that is expressly subordinated in right of payment to the
prior payment of the Loan Obligations hereunder and which has a final maturity
date that is beyond the later of the Revolving Termination Date and the Term
Loan Termination Date.

 

“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.

 

“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 payable by another Person (the “primary obligor”) in any manner,
whether directly or indirectly, and 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, (ii) to purchase or lease
property, securities or services for the purpose of assuring the obligee in
respect of such Indebtedness of the payment or performance of such
Indebtedness, (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 (iv) entered into for the purpose of assuring in any
other manner the obligee in respect of such Indebtedness of the payment 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 other obligation of any other Person, whether or not such
Indebtedness or other obligation is assumed by such Person (or any right,
contingent or otherwise, of any holder of such Indebtedness to obtain any such
Lien).  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,

 

28

 

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).

 

“Swedish Kroner”
means the lawful currency of Sweden.

 

“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).

 

“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).

 

“Swiss Francs”
means the lawful currency of Switzerland.

 

“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.

 

“Tax Distributions”
means, with respect to any fiscal year or portion thereof that the Borrower is
treated like a partnership or a disregarded entity under the Internal Revenue
Code (or is otherwise part of a consolidated group for Tax purposes), cash
distributions paid by the Borrower to its members (or other equity holders) in
respect of income tax liabilities (including estimates thereof and any tax deficiencies
or other subsequent adjustments to tax liabilities) attributable to the
ultimate taxpayers’ ownership interests (whether direct or indirect) in the
Borrower.

 

“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.

 

“Term Loan” means
the Tranche A Term Loan, the Tranche B Term Loan and Tranche C Term Loan, if
any.

 

“Term Loan Commitments”
means the Tranche A Term Loan Commitment, the Tranche B Term Loan
Commitment and the Tranche C Term Loan Commitment, if any.

 

29

 

“Term Loan Termination
Date” means, (i) with respect to the Tranche A Term Loan, April 13, 2011, (ii)
with respect to the Tranche B Term Loan, April 13, 2013 and (iii) with respect
to the Tranche C Term Loan, the final maturity date therefor.

 

“Term Notes” means
the Tranche A Term Notes, the Tranche B Term Notes and Tranche C Term
Notes.

 

“Tranche A Term
Lenders” means, prior to the funding of the initial Tranche A Term
Loan on the Closing Date or any Incremental Tranche A Term Loan, as applicable,
those Lenders with Tranche A Term Loan Commitments, and after funding of
the Tranche A Term Loan (including any Incremental Tranche A Term Loan),
those Lenders holding a portion of the Tranche A Term Loan (including any
Incremental Tranche A Term Loan), together with their successors and permitted
assigns.  The initial Tranche A Term
Lenders are identified on the signature pages hereto and are set forth on Schedule 2.01.

 

“Tranche A Term
Loan” has the meaning provided in Section 2.01(d).

 

“Tranche A Term
Loan Commitment” means, for each Tranche A Term Lender, the commitment
of such Lender to make a portion of the Tranche A Term Loan (including any
Incremental Tranche A Term Loan) hereunder; provided that, at any time
after funding of the Tranche A Term Loan, determinations of “Required
Lenders” and “Required Tranche A Term Lenders” shall be based on the
outstanding principal amount of the Tranche A Term Loan.

 

“Tranche A Term
Loan Commitment Percentage” means, for each Tranche A Term Lender, a
fraction (expressed as a percentage carried to the ninth decimal place), the
numerator of which is the principal amount of such Lender’s Tranche A Term
Loan (including any Incremental Tranche A Term Loan), and the denominator of
which is the Outstanding Amount of the Tranche A Term Loan (including any
Incremental Tranche A Term Loan).  The
initial Tranche A Term Loan Commitment Percentages are set forth on Schedule 2.01.

 

“Tranche A Term
Loan Committed Amount” means, for each Tranche A Term Lender, the
amount of such Lender’s Tranche A Term Loan Commitment.  The initial Tranche A Term Loan
Committed Amounts are set forth on Schedule 2.01, and, with respect
to any Incremental Tranche A Term Loan, the Tranche A Term Loan Committed
Amount with respect thereto will be set forth in the Incremental Tranche A Term
Loan Joinder Agreement.

 

“Tranche A Term
Note” means the promissory notes substantially in the form of Exhibit
2.13-3, if any, given to evidence the Tranche A Term Loans, as
amended, restated, modified, supplemented, extended, renewed or replaced.

 

“Tranche B Term
Lenders” means, prior to the funding of the initial Tranche B Term
Loan on the Closing Date or any Incremental Tranche B Term Loan, as applicable,
those Lenders with Tranche B Term Loan Commitments, and after funding of
the Tranche B Term Loan (including any Incremental Tranche B Term Loan),
those Lenders holding a portion of the Tranche B Term Loan (including any
Incremental Tranche B Term Loan), together with their successors and permitted
assigns.  The initial Tranche B Term
Lenders are identified on the signature pages hereto and are set forth on Schedule 2.01.

 

“Tranche B Term
Loan” means an extension of credit by a Tranche B Term Lender to the
Borrower pursuant to Section 2.01(e) in the form of a term loan and
shall include any Incremental Tranche B Term Loan.

 

30

 

“Tranche B Term
Loan Commitment” means, for each Tranche B Term Lender, the commitment
of such Lender to make a portion of the Tranche B Term Loan (including any
Incremental Tranche B Term Loan) hereunder; provided that, at any time
after funding of the initial Tranche B Term Loan, determinations of “Required
Lenders” and “Required Tranche B Term Lenders” shall be based on the
outstanding principal amount of the Tranche B Term Loan.

 

“Tranche B Term
Loan Commitment Percentage” means, for each Tranche B Term Lender, a
fraction (expressed as a percentage carried to the ninth decimal place), the
numerator of which is the principal amount of such Lender’s Tranche B Term
Loan (including any Incremental Tranche B Term Loan) and the denominator of
which is the Outstanding Amount of the Tranche B Term Loan (including any
Incremental Tranche B Term Loan).  The
initial Tranche B Term Loan Commitment Percentages are set forth on Schedule 2.01.

 

“Tranche B Term
Loan Committed Amount” means, for each Tranche B Term Lender, the
amount of such Lender’s Tranche B Term Loan Commitment.  The initial Tranche B Term Loan
Committed Amounts are set forth on Schedule 2.01, and, with respect
to any Incremental Tranche B Term Loan, the Tranche B Term Loan Committed
Amount with respect thereto will be set forth in the Incremental Tranche B Term
Loan Joinder Agreement.

 

“Tranche B Term
Note” means the promissory notes substantially in the form of Exhibit
2.13-3, if any, given to evidence the Tranche B Term Loans, as
amended, restated, modified, supplemented, extended, renewed or replaced.

 

“Tranche C Term
Lenders” means, upon establishment of a Tranche C Term Loan under Section
2.01(k), those Lenders holding a portion of the Tranche C Term Loan,
together with their successors and permitted assigns.  The initial Tranche C Term Lenders will
be identified in the Tranche C Term Loan Joinder Agreement.

 

“Tranche C Term
Loan” has the meaning provided in Section 2.01(f).

 

“Tranche C Term
Loan Commitment” means upon establishment of a Tranche C Term Loan under Section
2.01(k), for each Tranche C Term Lender, the commitment of such Lender
to make a portion of the Tranche C Term Loan hereunder; provided
that, at any time after funding of the Tranche C Term Loan, determinations
of “Required Lenders” and “Required Tranche C Term Lenders” shall be based
on the outstanding principal amount of the Tranche C Term Loan.

 

“Tranche C Term
Loan Commitment Percentage” means, for each Tranche C Term Lender, a
fraction (expressed as a percentage carried to the ninth decimal place), the
numerator of which is the principal amount of such Lender’s Tranche C Term
Loan, and the denominator of which is the Outstanding Amount of the
Tranche C Term Loan.  The initial
Tranche C Term Loan Commitment Percentages will be set forth in the
Tranche C Term Loan Joinder Agreement.

 

“Tranche C Term
Loan Committed Amount” means upon establishment of a Tranche C Term Loan
under Section 2.01(k), for each Tranche C Term Lender, the amount
of such Lender’s Tranche C Term Loan Commitment.  The initial Tranche C Term Loan
Committed Amounts will be set forth in the Tranche C Term Loan Joinder
Agreement.

 

“Tranche C Term Loan
Joinder Agreement” means a joinder agreement, substantially in the form of Exhibit
2.01(k), executed and delivered in accordance with the provisions of Section
2.01(k)(ii).

 

31

 

“Tranche C Term
Note” means the promissory notes substantially in the form of Exhibit
2.13-3, if any, given to evidence the Tranche C Term Loan, if any, as
amended, restated, modified, supplemented, extended, renewed or replaced.

 

“Treasury Management
Agreement” means any agreement governing the provision of treasury or cash
management services, including deposit accounts, funds transfer, automated
clearinghouse, zero balance accounts, returned check concentration, controlled
disbursement, lockbox, account reconciliation and reporting and trade finance
services.

 

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

 

“UCC” means the
Uniform Commercial Code in effect in any applicable jurisdiction from time to
time.

 

“Uninsured Liabilities”
shall mean any losses, damages, costs, expenses and/or, liabilities (including
any losses, damages, costs, expenses or liabilities resulting from property
damage or casualty, general liability, workers’ compensation claims and
business interruption) incurred by the Borrower or any Subsidiary which are not
covered by insurance, but with respect to which insurance coverage is
commercially available on commercially reasonable terms to Persons engaged in
the same or similar business as the Borrower and its Subsidiaries.

 

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

 

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

 

“USSB Programming
Contracts” shall mean those premium programming service contracts that were
acquired by the Borrower in connection with the Borrower’s merger with United
States Satellite Broadcasting Company and subsequently transferred to the
Borrower.

 

“Waivable Percentage”
has the meaning provided in Section 2.06(c).

 

“Waivable Repayment”
has the meaning provided in Section 2.06(c).

 

“Wholly Owned
Subsidiary” means, with respect to any direct or indirect Subsidiary of any
Person, that one hundred percent (100%) of the Capital Stock with ordinary
voting power issued by such Subsidiary (other than directors’ qualifying shares
and investments by foreign nationals mandated by applicable Law) is
beneficially owned, directly or indirectly, by such Person.

 

“Yen”
and “¥” mean the lawful currency of Japan.

 

1.02        Interpretive Provisions.

 

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

 

(a)           The definitions of
terms herein shall apply equally to the singular and plural forms of the terms
defined.  Whenever the context may
require, any pronoun shall include the corresponding masculine, feminine and
neuter forms.  The words “include”,
“includes” and “including” shall be deemed to be followed by the
phrase “without limitation”.  The
word “will” shall be construed to have the same meaning and effect as
the word “shall”.  Unless the context
requires otherwise, (i) any definition of or

 

32

 

reference to any
agreement, instrument or other document (including any Organization Document)
shall be construed as referring to such agreement, instrument or other document
as from time to time amended, supplemented or otherwise modified (subject to
any restrictions on such amendments, supplements or modifications set forth
herein or in any other Credit Document), (ii) any reference herein to any
Person shall be construed to include such Person’s successors and permitted assigns,
(iii) the words “herein”, “hereof” and “hereunder,” and
words of similar import when used in any Credit Document, shall be construed to
refer to such Credit Document in its entirety and not to any particular
provision thereof, (iv) all references in a Credit Document to “Articles”,
“Sections”, “Exhibits” and “Schedules” shall be construed
to refer to articles and sections of, and exhibits and schedules to, the Credit
Document in which such references appear, (v) any reference to any law shall
include all statutory and regulatory provisions consolidating, amending,
replacing or interpreting such law and any reference to any law or regulation
shall, unless otherwise specified, refer to such law or regulation as amended,
modified or supplemented from time to time, and (vi) the words “asset”
and “property” shall be construed to have the same meaning and effect
and to refer to any and all tangible and intangible assets and properties, including
cash, securities, accounts and contract rights.

 

(b)           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.”

 

(c)           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 in a manner
consistent with that used in preparing the audited financial statements
referenced in Section 5.01(d), except as otherwise specifically
prescribed herein.

 

(b)           Notwithstanding any
provision herein to the contrary, determinations of (i) the Consolidated Total
Leverage Ratio for purposes of determining the applicable pricing level under
the definition of “Applicable Percentage” and (ii) compliance with the
financial covenants shall be made on a Pro Forma Basis.

 

(c)           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, the Borrower may, after
giving written notice thereof to the Administrative Agent, determine all such
computations on such a basis; provided, however, that if within sixty
(60) days after delivery of such financial statements first reflecting such a
change in GAAP or in the consistent application thereof the Administrative
Agent or the Required Lenders shall object in writing to using any such changed
GAAP principles for determining such computations as provided above, then such
computations shall be made on a basis consistent with the most recent financial
statements delivered pursuant to Section 7.01(a) or (b) as to
which no such objection has been made.

 

(d)           Consolidation of
Variable Interest Entities.  All
references herein to consolidated financial statements of the Borrower and its
Subsidiaries or to the determination of any amount for the Borrower and its
Subsidiaries on a consolidated basis or any similar reference shall, in each
case, be deemed to include each variable interest entity that the Borrower is
required to consolidate pursuant to

 

33

 

FASB Interpretation
No.  46 – Consolidation of Variable
Interest Entities: an interpretation of ARB No. 
51 (January 2003) as if such variable interest entity were a Subsidiary
as defined herein.

 

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        Times of Day.

 

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

 

1.06        Exchange Rates; Currency Equivalents.

 

(a)           The Administrative Agent or the L/C Issuer,
as applicable, shall determine the Spot Rates as of each Revaluation Date to be
used for calculating Dollar Equivalent amounts of L/C 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 Credit Parties hereunder or calculating financial
covenants hereunder or except as otherwise provided herein, the applicable
amount of any currency (other than Dollars) for purposes of the Credit
Documents shall be such Dollar Equivalent amount as so determined by the
Administrative Agent or the L/C Issuer, as applicable.

 

(b)           Wherever in this Credit Agreement in connection
with the issuance, amendment or extension of a Letter of Credit, an amount,
such as a required minimum or multiple amount, is expressed in Dollars, but
such 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 unit of such Alternative Currency, with 0.5 of a unit
being rounded upward), as determined by the Administrative Agent or the L/C
Issuer, as the case may be.

 

1.07        Additional
Alternative Currencies.

 

(a)           The Borrower may from time to time request
that 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.  Such request shall be subject to the approval
of the Administrative Agent and the L/C Issuer and shall be made to the
Administrative Agent not later than 12:00 noon, five (5) Business Days prior to
the date of the desired L/C Credit Extension (or such other time or date as may
be agreed by the Administrative Agent and the L/C Issuer, in their sole
discretion).

 

(b)           If such a request is made to the Administrative
Agent, then the Administrative Agent shall promptly notify the L/C Issuer
thereof.  The L/C Issuer shall notify the
Administrative Agent, not later than 12:00 noon, five (5) Business Days after
receipt of such request whether it consents, in its sole discretion, to the
issuance of Letters of Credit, as the case may be, in such requested
currency.  Any failure by the L/C Issuer to
respond to such request within the time period specified in the preceding
sentence shall be deemed to be a refusal by the L/C Issuer to permit Letters of
Credit to be issued in such requested currency. 
If the Administrative Agent and the L/C Issuer consent to the issuance
of Letters of

 

34

 

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
1.07, the Administrative Agent shall promptly so notify the Borrower.

 

1.08        Change of Currency.

 

(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.

 

1.09        Letter of Credit Amounts.

 

Unless
otherwise provided, 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 available to be drawn 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.

 

ARTICLE II

 

COMMITMENTS AND CREDIT EXTENSIONS

 

2.01        Commitments.

 

Subject to the terms and
conditions set forth herein:

 

(a)           Revolving Loans.  During the Commitment Period, each Revolving
Lender severally agrees to make revolving credit loans (the “Revolving Loans”)
to the Borrower on any Business Day; provided that after giving effect
to any such Revolving Loan, (i) with regard to the Revolving Lenders
collectively, the Outstanding Amount of Revolving Obligations shall not exceed
FIVE HUNDRED MILLION DOLLARS ($500,000,000) (as such amount may be increased or decreased in accordance with the provisions hereof, the “Aggregate
Revolving Committed Amount”) and (ii) with regard to each

 

35

 

Revolving 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, Eurodollar 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 Revolving Lenders set forth
herein, agrees (A) to issue Letters of Credit denominated in Dollars or in one
or more Alternative Currencies for the account of the Borrower or any member of
the Consolidated Group on any Business Day, (B) to amend or extend Letters of Credit previously issued hereunder, and (C) to
honor drawings under Letters of Credit; and (ii) the Revolving 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 Revolving Lender’s
Revolving Commitment Percentage thereof; provided that (A) the Outstanding
Amount of L/C Obligations shall not exceed ONE HUNDRED FIFTY MILLION DOLLARS ($150,000,000)
(as such amount may be decreased in accordance with the provisions hereof, the “L/C
Sublimit”), (B) the Outstanding Amount of L/C Obligations denominated in Alternative
Currencies shall not exceed the Alternative Currency Sublimit, (C) with regard
to the Revolving Lenders collectively, the Outstanding Amount of Revolving
Obligations shall not exceed the Aggregate
Revolving Committed Amount and (D) with regard to each Revolving Lender
individually, such Revolving 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, in reliance upon the commitments of the other Lenders set forth
herein, to make revolving credit loans (the “Swingline Loans”) to the
Borrower on any Business Day; provided that (i) the Outstanding Amount
of Swingline Loans shall not exceed THIRTY-FIVE MILLION DOLLARS ($35,000,000)
(as such amount may be decreased in accordance with the provisions hereof, the “Swingline
Sublimit”) and (ii) with respect to the Revolving 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 Revolving 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)           Tranche A Term
Loan.  On the Closing Date, each of
the Tranche A Term Lenders severally agrees to make its portion of a term
loan (in the amount of its respective Tranche A Term Loan Committed
Amount) to the Borrower in a single advance in an aggregate principal amount of
FIVE HUNDRED MILLION DOLLARS ($500,000,000) (the “Tranche A Term
Loan”).  The aggregate principal amount of the Tranche A Term Loan may be
increased as provided in Section 2.01(i).  The Tranche A Term Loan may
consist of Base Rate Loans, Eurodollar Rate Loans or a combination thereto, as
the Borrower may request.  Amounts repaid
on the Tranche A Term Loan may not be reborrowed.

 

(e)           Tranche B Term Loan.  On
the Closing Date, each of the Tranche B Term Lenders severally agrees to make
its portion of a term loan (in the amount of its respective Tranche B Term Loan
Committed Amount) to the Borrower in a single advance in an aggregate principal
amount of ONE BILLION FIVE HUNDRED MILLION DOLLARS ($1,500,000,000) (the “Tranche
B Term Loan”).  The aggregate
principal amount of the Tranche B Term Loan may be increased as provided in Section
2.01(j).  The Tranche B Term Loan may
consist of Base Rate Loans, Eurodollar Rate Loans or a

 

36

 

combination
thereof, as the Borrower may request. 
Amounts repaid on the Tranche B Term Loan may not be reborrowed.

 

(f)            Tranche C Term Loan. 
After the Closing Date, a term loan (the “Tranche C Term Loan”)
of up to ONE BILLION DOLLARS ($1,000,000,000) may be made pursuant to the
provisions of Section 2.01(g) and Section 2.01(k).  The Tranche C Term Loan may consist of Base
Rate Loans, Eurodollar Loans or a combination thereof, as the Borrower may
request.  Amounts repaid on the Tranche C
Term Loan may not be reborrowed.

 

(g)           Incremental Loan Facilities.  Any
time after the Closing Date, the Borrower may, upon written notice to the
Administrative Agent, establish additional credit facilities (collectively, the
“Incremental Loan Facilities”) by increasing the Aggregate Revolving
Commitments hereunder as provided in Section 2.01(h) (the “Incremental
Revolving Loans”), increasing the Tranche A Term Loan hereunder as provided
in Section 2.01(i) (the “Incremental Tranche A Term Loan”),
increasing the Tranche B Term Loan hereunder as provided in Section 2.01(j)
(the “Incremental Tranche B Term Loan”) or establishment of a new
Tranche C Term Loan hereunder as provided in Section 2.01(f) and Section
2.01(k), or some combination thereof; provided that:

 

(i)            the aggregate principal amount of loans and
commitments for all the Incremental Loan Facilities established after the
Closing Date will not exceed $1.0 billion;

 

(ii)           no Default or Event of Default shall have
occurred and be continuing or shall result after giving effect to any such
Incremental Loan Facility;

 

(iii)          the conditions to the making of a Credit
Extension under Section 5.02 shall be satisfied; and

 

(iv)          the Borrower will provide supporting
resolutions, legal opinions, promissory notes and other items as may be reasonably
required by the Administrative Agent and the Lenders providing commitments for
the Incremental Loan Facilities.

 

In
connection with the establishment of any Incremental Loan Facility, (A) neither
BAS nor JPMCS, as Co-Lead Arrangers hereunder, shall have any obligation to
arrange for or assist in arranging for any Incremental Loan Facility without
their prior written approval and shall be subject to such conditions, including
fee arrangements, as may be provided in connection therewith, (B) none of the
Lenders, including Bank of America and JPMCB, shall have any obligation to
provide commitments or loans for any Incremental Loan Facility without their
prior written approval and (C) Schedule 2.01 will be revised to reflect
the Lenders, Loans, Commitments, committed amounts and Commitment Percentages
after giving effect to the establishment of any Incremental Loan Facility.

 

(h)           Establishment of Incremental Revolving Loans. 
Subject to Section 2.01(g), the Borrower may establish
Incremental Revolving Loans by increasing the Aggregate Revolving Committed
Amount hereunder, provided that:

 

(i)            any new lender providing commitments for the
Incremental Revolving Loans must be reasonably acceptable to the Administrative
Agent;

 

(ii)           lenders providing commitments for the
Incremental Revolving Loans pursuant to this Section 2.01(h) will
provide a Revolving Lender Joinder Agreement or other agreement reasonably
acceptable to the Administrative Agent;

 

37

 

(iii)          additional commitments established for the
Incremental Revolving Loans will be in a minimum principal amount of $150
million and integral multiples of $50 million in excess thereof; and

 

(iv)          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 break-funding amounts owing
under Section 3.05) as may be necessary to give effect to the revised
commitment amounts and percentages.

 

Any
Incremental Revolving Loan established hereunder shall have terms identical to
the Revolving Loans existing on the Closing Date, except for fees payable to
Lenders providing commitments for the Incremental Revolving Loan.

 

(i)            Establishment of Incremental Tranche A Term
Loan.  Subject to Section 2.01(g), the
Borrower may, at any time prior to the first amortization payment date on the
Tranche A Term Loan, increase the size of the Tranche A Term Loan by
establishing additional Tranche A Term Loan Commitments, provided that:

 

(i)            any new lender providing commitments for the
Incremental Tranche A Term Loan must be reasonably acceptable to the
Administrative Agent;

 

(ii)           lenders providing commitments for the
Incremental Tranche A Term Loan pursuant to this Section 2.01(i) will
provide an Incremental Tranche A Term Loan Joinder Agreement or other agreement
reasonably acceptable to the Administrative Agent;

 

(iii)          additional commitments established for the
Incremental Tranche A Term Loan will be in a minimum principal amount of $150
million and integral multiples of $50 million in excess thereof; and

 

(iv)          the Borrower will make such payments and
adjustments on the Tranche A Term Loan (including payment of any break-funding
amounts owing under Section 3.05) as may be necessary to give effect to
the revised commitment amounts and percentages.

 

Any
Incremental Tranche A Term Loan established hereunder shall have terms
identical to the Tranche A Term Loan existing on the Closing Date, except for
fees payable to Lenders providing commitments for the Incremental Tranche A
Term Loan.

 

(j)            Establishment of the Incremental Tranche B
Term Loan.  Subject to Section 2.01(g), the
Borrower may, at any time prior to the first amortization payment date on the
Tranche B Term Loan, increase the size of the Tranche B Term Loan by
establishing additional Tranche B Term Loan Commitments, provided that:

 

(i)            any new lender providing commitments for the
Incremental Tranche B Term Loan must be reasonably acceptable to the
Administrative Agent;

 

(ii)           lenders providing commitments for the
Incremental Tranche B Term Loan pursuant to this Section 2.01(j) will
provide an Incremental Tranche B Term Loan Joinder Agreement or other agreement
reasonably acceptable to the Administrative Agent;

 

38

 

(iii)          additional commitments established for the
Incremental Tranche B Term Loan will be in a minimum principal amount of $150
million and integral multiples of $50 million in excess thereof; and

 

(iv)          the Borrower will make such payments and
adjustments on the Tranche B Term Loan (including payment of any break-funding
amounts owing under Section 3.05) as may be necessary to give effect to
the revised commitment amounts and percentages.

 

Any
Incremental Tranche B Term Loan established hereunder shall have terms
identical to the Tranche B Term Loan existing on the Closing Date, except for
fees payable to Lenders providing commitments for the Incremental Tranche B
Term Loan.

 

(k)           Establishment of the Tranche C Term Loan.  Subject
to Section 2.01(g), the Borrower may, at any time after the Closing
Date, establish a Tranche C Term Loan, provided that:

 

(i)            lenders providing commitments for the Tranche
C Term Loan must be reasonably acceptable to the Administrative Agent;

 

(ii)           lenders providing commitments for the Tranche
C Term Loan pursuant to this Section 2.01(k) will provide a Tranche C
Term Loan Joinder Agreement or other agreement reasonably acceptable to the
Administrative Agent;

 

(iii)          additional commitments established for the
Tranche C Term Loan will be in a minimum principal amount of $150 million and
integral multiples of $50 million in excess thereof; and

 

(iv)          the Tranche C Term Loan will have a final
maturity date that is co-terminus with or later than the final maturity date
for the Tranche B Term Loan and an average-life-to-maturity from the date of
issuance that is not earlier than the average-life-to-maturity from the date of
issuance of the Tranche B Term Loan.

 

2.02        Borrowings,
Conversions and Continuations.

 

(a)           Each Borrowing, each
conversion of Loans from one Type to the other, and each continuation of
Eurodollar 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 12:00 noon (i) with respect to
Eurodollar Rate Loans, three (3) Business Days prior to the requested date of,
or (ii) with respect to Base Rate Loans, on the requested date of, any
Borrowing, conversion or continuation. 
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(b), each Borrowing, conversion or continuation shall be in a
principal amount of (i) with respect to Eurodollar Rate Loans, $5 million or a
whole multiple of $1 million in excess thereof or (ii) with respect to Base
Rate Loans, $500,000 or a whole multiple of $100,000 in excess thereof.  Each Loan Notice (whether telephonic or
written) shall specify (i) whether the Borrower’s request is with respect
to Revolving Loans or the Term Loan, (ii) whether such request is for a
Borrowing, conversion, or continuation, (iii) the requested date of such
Borrowing, conversion or continuation (which shall be a Business Day),
(iv) the principal amount of Loans to be borrowed, converted or continued,
(v) the Type of Loans to be borrowed, converted or continued, and
(vi) 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 or if the Borrower fails to give a
timely notice requesting a conversion or

 

39

 

continuation, then the
applicable Loans shall be made as, or converted to, Base Rate Loans.  Any automatic conversion to Base Rate Loans
shall be effective as of the last day of the Interest Period then in effect
with respect to the applicable Eurodollar Rate Loans.  If the Borrower requests a Borrowing of,
conversion to, or continuation of Eurodollar Rate Loans in any Loan Notice, but
fails to specify an Interest Period, the Interest Period will be deemed to be
one (1) month.

 

(b)           Following receipt of a
Loan Notice, the Administrative Agent shall promptly notify each Lender of the
amount of its pro rata share (determined in accordance with its respective
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 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
immediately available funds at the Administrative Agent’s Office not later than
1:00 p.m. on the Business Day specified in the applicable Loan Notice.  Upon satisfaction of the applicable
conditions set forth in Section 5.02 (and, if such Borrowing is the
initial Credit Extension, Section 5.01), 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 such
Borrowing 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, a Eurodollar Rate
Loan may be continued or converted only on the last day of an Interest Period
for such Eurodollar Rate Loan.  During
the existence of a Default or Event of Default at the request of the Required
Lenders, (i) no Loan may be requested as, converted to or continued as a
Eurodollar Rate Loan and (ii) any outstanding Eurodollar Rate Loan shall be
converted to a Base Rate Loan on the last day of the Interest Period with
respect thereto.

 

(d)           The Administrative
Agent shall promptly notify the Borrower and the Lenders of the interest rate
applicable to any Interest Period for Eurodollar Rate Loans upon determination
of such interest rate.  The determination
of the Eurodollar Rate by the Administrative Agent shall be conclusive in the
absence of manifest error.  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 Revolving Loans from one Type to the other,
and all continuations of Revolving Loans as the same Type, there shall not be
more than ten (10) Interest Periods in effect with respect to the Revolving
Loans, five (5) Interest Periods with respect to the Tranche A Term Loan, five
(5) Interest Periods with respect to the Tranche B Term Loan and five (5)
Interest Periods with respect to the Tranche C Term Loan.

 

40

 

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 (12) months after the date of issuance or
last extension, unless the Required Revolving 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 Revolving 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 stated amount less than $50,000;

 

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

 

(E)           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;

 

(F)           except as otherwise agreed by the L/C
Issuer, such Letter of Credit contains provisions for automatic reinstatement
of the stated amount after any drawing thereunder; or

 

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

 

41

 

(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-Extension Letters of Credit.

 

(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 L/C Application, appropriately completed
and signed by a Responsible Officer. 
Such L/C Application must be received by the L/C Issuer and the Administrative
Agent (A) not later than 12:00 noon at least two (2) Business Days prior to the
proposed issuance date or date of amendment, as the case may be, of any Letter
of Credit denominated in Dollars and (B) not later than 12:00 noon at least five
(5) Business Days prior to the proposed issuance date or date of amendment, as
the case may be, of any Letter of Credit denominated in an Alternative Currency
(or, in each case, 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 L/C 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 L/C 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 L/C 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 L/C 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 Revolving Lender or any Credit Party,
at least one (1) Business Day prior to the requested date of issuance or
amendment of the applicable Letter of Credit, that one or more applicable
conditions contained in Article V shall not then be satisfied, then, subject
to the terms and conditions hereof, the L/C Issuer shall, 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 Revolving Lender shall be deemed to, and hereby irrevocably and
unconditionally agrees to, purchase from the L/C Issuer

 

42

 

a risk participation in
such Letter of Credit in an amount equal to such Revolving 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 (but in any event not later than 30 days
prior to the scheduled expiry date thereof). 
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 Revolving 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 (5) Business Days before the Non-Extension Notice Date (1) from
the Administrative Agent that the Required Revolving Lenders have elected not
to permit such extension or (2) from the Administrative Agent, any Revolving Lender
or the Borrower that one or more of the applicable conditions specified in Section
5.02 is not then satisfied, and in each case directing the L/C Issuer not
to permit such extension.

 

(iv)          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
permits the automatic reinstatement of all or a portion of the stated amount
thereof after any drawing thereunder (each, an “Auto-Reinstatement Letter of
Credit”).  Unless otherwise directed
by the L/C Issuer, the Borrower shall not be required to make a specific
request to the L/C Issuer to permit such reinstatement.  Once an Auto-Reinstatement Letter of Credit
has been issued, except as provided in the following sentence, the Revolving Lenders
shall be deemed to have authorized (but may not require) the L/C Issuer to
reinstate all or a portion of the stated amount thereof in accordance with the
provisions of such Letter of Credit. 
Notwithstanding the foregoing, if such Auto-Reinstatement Letter of
Credit permits the L/C Issuer to decline to reinstate all or any portion of the
stated amount thereof after a drawing thereunder by giving notice of such
non-reinstatement within a specified number of days after such drawing (the “Non-Reinstatement
Deadline”), the L/C Issuer shall not permit such reinstatement if it has
received a notice (which may be by telephone or in writing) on or before the
day that is five (5) Business Days before the Non-Reinstatement Deadline (A)
from the Administrative Agent that the Required Revolving Lenders have elected
not to permit such reinstatement or (B) from the Administrative Agent, any Revolving
Lender or the Borrower that one or more of the applicable conditions specified
in Section 5.02 is not then satisfied (treating such reinstatement as an
L/C Credit Extension for purposes of this clause) and, in each case, directing
the L/C Issuer not to permit such reinstatement.

 

(v)           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.

 

43

 

(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. 
In the case of a Letter of
Credit denominated in an Alternative Currency, the Borrower shall reimburse the
L/C Issuer in such Alternative Currency, 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.  In the case of any
such reimbursement in Dollars of a drawing under a Letter of Credit denominated
in an Alternative Currency, the L/C Issuer shall notify the Borrower of the
Dollar Equivalent of the amount of the drawing promptly following the
determination thereof.  Not later
than 12:00 noon on the date of any payment by the L/C Issuer under a Letter of
Credit to be reimbursed in Dollars, or the Applicable Time on the date of any
payment by the L/C Issuer under a Letter of Credit to be reimbursed in an
Alternative Currency (each such date, an “Honor Date”), the Borrower
shall reimburse the L/C Issuer through the Administrative Agent in Dollars in
an amount equal to the amount of such drawing and in the applicable
currency.  If the Borrower fails to so
reimburse the L/C Issuer by such time, the Administrative Agent shall promptly
notify each Revolving Lender of the Honor Date, the amount of the unreimbursed
drawing (expressed in Dollars in the amount of the Dollar Equivalent thereof in
the case of a Letter of Credit denominated in an Alternative Currency) (the “Unreimbursed
Amount”), and the amount of such Revolving 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 Section 2.02(a)
for the principal amount of Base Rate Loans or the conditions set forth in Section
5.02.  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 Revolving Lender 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, in Dollars, at the
Administrative Agent’s Office for Dollar-denominated payments 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 Revolving 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 in Dollars, or if requested by the L/C
Issuer, the equivalent amount thereof in an Alternative Currency as determined
by the Administrative Agent at such time on the basis of the Spot Rate
(determined as of such funding date) for the purchase of such Alternative
Currency with Dollars.

 

(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 Revolving 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 Revolving Lender in satisfaction of its participation obligation under
this Section 2.03.

 

44

 

(iv)          Until
a Revolving 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 Revolving Lender’s Revolving Commitment Percentage
of such amount shall be solely for the account of the L/C Issuer.

 

(v)           Each
Revolving 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 setoff,
counterclaim, recoupment, defense or other right that such Revolving 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) with respect to funding participations in L/C Borrowings, non-compliance
with the conditions set forth in Section 5.02, 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 Revolving 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 Revolving 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 Revolving 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
applicable Overnight Rate from time to time in effect.  A certificate of the L/C Issuer submitted to
any Revolving 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 Revolving Lender such Revolving 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 Revolving Lender its Revolving Commitment Percentage thereof
(appropriately adjusted, in the case of interest payments, to reflect the
period of time during which such Revolving Lender’s L/C Advance was
outstanding) in Dollars and in the same type of 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 11.05
(including pursuant to any settlement entered into by the L/C Issuer in its
discretion), each Revolving 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 applicable Overnight Rate from time to time in

 

45

 

effect.  The obligations of the Revolving Lenders
under this clause shall survive the payment in full of the Obligations and the
termination of this Credit Agreement.

 

(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, setoff, 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;

 

(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 Revolving 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 of their respective Related Parties nor any correspondent,

 

46

 

participant or assignee of the L/C Issuer shall be liable to any Revolving
Lender for (i) any action taken or omitted in connection herewith at the
request or with the approval of the Revolving Lenders or the Required Revolving
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 Issuer Document. 
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 of their respective Related Parties nor any
correspondent, participant or assignee of the L/C Issuer, shall be liable or
responsible for any of the matters described in clauses (i) through
(vi) 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.  Upon the request of the
Administrative Agent, (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 may for any reason remain outstanding and partially or
wholly undrawn, the Borrower shall immediately Cash Collateralize the then
Outstanding Amount of all 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 Administrative Agent may, at any time and from time to time after
the initial deposit of Cash Collateral, request that additional Cash Collateral
be provided in order to protect against the results of exchange rate
fluctuations.  For purposes hereof, “Cash
Collateralize” means to pledge and deposit with or deliver to the
Administrative Agent, for the benefit of the L/C Issuer and the Lenders, as
collateral for the L/C Obligations, cash or deposit account balances pursuant
to documentation in form and substance satisfactory to the Administrative Agent
and the L/C Issuer (which documents are hereby consented to by the
Lenders).  Derivatives of such term have
corresponding meanings.  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 cash, deposit accounts and all
balances therein and all proceeds of the foregoing.  Cash collateral shall be maintained in
blocked, interest bearing deposit accounts or money market fund accounts at the
Administrative Agent.

 

(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

 

47

 

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.

 

(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 $100,000, 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 Revolving 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 V 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 at its office by crediting the account of the Borrower on the books of
the Swingline Lender in immediately available funds.

 

(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 Revolving Lender make a
Revolving Loan that is a Base Rate Loan in an amount equal to such Revolving 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 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 Commitments or the
conditions set forth in Section 5.02.  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 Revolving 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 Revolving 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.

 

48

 

(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 Revolving Lenders
fund its risk participation in the relevant Swingline Loan and each Revolving 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 Revolving Lender fails to make available to the Administrative Agent for
the account of the Swingline Lender any amount required to be paid by such Revolving
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 Revolving 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 greater of the Federal Funds Rate and a rate determined by the Swingline
Lender in accordance with banking industry rules on interbank
compensation.  A certificate of the
Swingline Lender submitted to any Revolving Lender (through the Administrative
Agent) with respect to any amounts owing under this clause (iii) shall
be conclusive absent manifest error.

 

(iv)                              Each
Revolving 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 setoff, counterclaim, recoupment, defense or other right that such
Revolving 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 5.02, 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 Revolving 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
Revolving 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 Revolving Lender’s risk participation was
funded) in the same funds as those received by the Swingline Lender.

 

(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 11.05
(including pursuant to any settlement entered into by the Swingline Lender in
its discretion), each Revolving 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.  The obligations of the Revolving Lenders
under this

 

49

 

clause shall survive the payment in full of the
Obligations and the termination of this Credit Agreement.

 

(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 Revolving
Lender funds its Revolving Loan or risk participation pursuant to this Section 2.04
to refinance such Revolving 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 Revolving 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.

 

(c)                                  Tranche A
Term Loan.  The Borrower shall repay
to the Tranche A Term Lenders the principal amount of the Tranche A Term
Loan (shown as a percentage of the original aggregate principal amount of the
Tranche A Term Loan including any Incremental Tranche A Term Loan) in quarterly
installments on the dates set forth below as follows:

 

	
  Date

  	
   

  	
  Principal

  Amortization Payment

  (shown as a Percentage of

  Original Principal Amount)

  	
   

  	
  Date

  	
   

  	
  Principal

  Amortization Payment

  (shown as a Percentage of

  Original Principal Amount)

  	
   

  
	
  June 30, 2008

  	
   

  	
  2.5%

  	
   

  	
  December 31, 2009

  	
   

  	
  5.0

  	
  %

  	
   

  
	
  September 30, 2008

  	
   

  	
  2.5%

  	
   

  	
  March 31, 2010

  	
   

  	
  5.0

  	
  %

  	
   

  
	
  December 31, 2008

  	
   

  	
  2.5%

  	
   

  	
  June 30, 2010

  	
   

  	
  17.5

  	
  %

  	
   

  
	
  March 31, 2009

  	
   

  	
  2.5%

  	
   

  	
  September 30, 2010

  	
   

  	
  17.5

  	
  %

  	
   

  
	
  June 30, 2009

  	
   

  	
  5.0%

  	
   

  	
  December 31, 2010

  	
   

  	
  17.5

  	
  %

  	
   

  
	
  September 30, 2009

  	
   

  	
  5.0%

  	
   

  	
  April 13, 2011

  	
   

  	
  Outstanding Principal

  Amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total:

  	
   

  	
  100.0

  	
  %

  	
   

  

 

(d)                                 Tranche B Term Loan.  The
principal amount of the Tranche B Term Loan shall be payable in thirty-one
consecutive quarterly installments which except for the final installment shall
be due on the last day of each March, June, September and December,
beginning with September 30, 2005. 
Subject to adjustment in connection with prepayments made pursuant to Section 2.06,
each of the first thirty (30) quarterly installments shall be in the principal amount
equal to the sum of $3,750,000 plus 0.25% of the aggregate principal
amount of all Incremental Tranche B Term Loans funded prior to the date of such
quarterly installment and the thirty-first (31st) and final installment, due April 13,
2013 (being the eighth anniversary date of the Closing Date), shall be in the
amount of the remaining principal balance of the Tranche B Term Loan.

 

(e)                                  Tranche C Term Loan.  The
principal amount of the Tranche C Term Loan shall be payable as provided in the
Tranche C Term Loan Joinder Agreement pursuant to which the Tranche C Term Loan
is established.

 

50

 

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
and as otherwise provided in Section 2.06(c)(iii) herein); provided
that:

 

(i)                                     in
the case of Loans other than Swingline Loans, (A) notice thereof must be
received by 12:00 noon by the Administrative Agent at least three (3) Business
Days prior to the date of prepayment, in the case of Eurodollar Rate Loans, and
one (1) Business Day prior to the date of prepayment, in the case of Base
Rate Loans, (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 Eurodollar 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).

 

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 Eurodollar Rate Loans hereunder shall be accompanied by
accrued interest on the amount prepaid and breakage or other amounts due, if
any, under Section 3.05.

 

(b)                                 Mandatory
Prepayments.

 

(i)                                     Revolving
Commitments.

 

(A)                              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, immediate
prepayment will be made on or in respect of the Revolving Obligations in an
amount equal to the difference; provided, however, that, except with
respect to clause (B), L/C Obligations will not be Cash Collateralized
hereunder until the Revolving Loans and Swingline Loans have been paid in full.

 

(B)                                If
the Administrative Agent notifies the Borrower at any time that the Outstanding
Amount of all L/C Obligations denominated in Alternative Currencies at such
time exceeds an amount equal to 110% of the Alternative Currency Sublimit then
in effect, then, within two (2) Business Days after receipt of such
notice, the Borrower shall Cash Collateralize the L/C Obligations denominated
in Alternative Currencies in an aggregate amount sufficient to reduce such
Outstanding Amount as of such date of payment to
an amount not to exceed 100% of the Alternative Currency Sublimit then in
effect.  The Administrative Agent may, at
any time and from time to time after the initial deposit of such Cash
Collateral, request that additional Cash Collateral be provided in order to
protect against the results of further exchange rate fluctuations.

 

51

 

(ii)                                  Dispositions
and Involuntary Dispositions. 
Prepayment will be made on the Loan Obligations in an amount equal to
one hundred percent (100%) of the Net
Cash Proceeds received from any Disposition or Involuntary Disposition by any
member of the Consolidated Group occurring after the Closing Date, to the
extent (A) such proceeds are not reinvested (or committed to be
reinvested) in the same or similar properties or assets within twelve (12)
months of the date of such Disposition or Involuntary Disposition and (B) the
aggregate amount of such proceeds that are not reinvested in accordance with
clause (A) hereof exceeds $150 million in any fiscal
year.  Any prepayment in respect of
Dispositions and Involuntary Dispositions hereunder will be payable promptly
following a determination that such a prepayment is due hereunder.

 

(iii)                               Equity
Transactions.  Prepayment will be
made on the Loan Obligations in an amount equal to fifty percent (50%) of the
Net Cash Proceeds from any Equity Transactions occurring after the Closing Date
where the Consolidated Total Leverage Ratio will be greater than 4.5:1.0 after
giving effect thereto on a Pro Forma Basis (and where the Consolidated Total
Leverage Ratio will be equal to or less than 4.5:1.0 after giving effect
thereto on a Pro Forma Basis, no mandatory prepayment will be required on
account thereof).  Any prepayment in
respect of an Equity Transaction hereunder will be payable on the Business Day
following receipt by the Borrower or other members of the Consolidated Group of
the Net Cash Proceeds therefrom.

 

(iv)                              Consolidated
Excess Cash Flow.  Prepayment will be
made on the Loan Obligations, in an amount equal to fifty percent (50%) of
Consolidated Excess Cash Flow for each fiscal year where (i) the
Consolidated Total Leverage Ratio will be greater than 4.5:1.0 after giving
effect thereto on a Pro Forma Basis and (ii) the Borrower’s Debt Rating is
BB or Ba2 or lower or unrated (and where the Consolidated Total Leverage Ratio
will be equal to or less than 4.5:1.0 after giving effect thereto on a Pro
Forma Basis or the Borrower’s Debt Rating is BB+ or Ba1 or higher, no mandatory
prepayment will be required on account thereof).  Any prepayment in respect of Consolidated Excess
Cash Flow hereunder will be payable annually on April 15 of the
immediately following fiscal year (commencing on April 15, 2006).

 

(v)                                 Final Maturity Date for Existing Senior Notes
and Additional Notes.  If the final maturity of any Existing Senior
Notes or Additional Notes is scheduled to occur prior to the earliest of the
Revolving Termination Date or any Term Loan Termination Date, then on the date
that is six (6) months prior to such final maturity of such Existing
Senior Notes or Additional Notes, if such Existing Senior Notes or Additional
Notes are still outstanding, (A) prepayment will be required on the Loan
Obligations in an amount equal to one hundred percent (100%) of the principal amount
of the Loans and (B) the Borrower shall Cash Collateralize the then
Outstanding Amount of all L/C Obligations, unless the final maturity of
such Existing Senior Notes or Additional Notes has been extended to a date that
is at least six (6) months after the earliest of the Revolving Termination
Date or any Term Loan Termination Date.

 

(vi)                              Change of Control. 
If there occurs any Change of Control with respect to the Borrower, then
on the date of such Change of Control, (A) prepayment will be required on
the Loan Obligations in an amount equal to one hundred percent (100%) of the
principal balance of the Loans and (B) the Borrower shall Cash
Collateralize the then Outstanding Amount of all L/C Obligations.

 

(vii)                           Eurodollar Prepayment Account.  If
the Borrower is required to make a mandatory prepayment of Eurodollar Rate
Loans under this Section 2.06(b), so long as no Event of Default
exists, the Borrower shall have the right, in lieu of making such prepayment in
full, to deposit an amount equal to such mandatory prepayment with the
Administrative Agent in a cash

 

52

 

collateral account
maintained (pursuant to documentation reasonably satisfactory to the
Administrative Agent) by and in the sole dominion and control of the
Administrative Agent.  Any amounts so deposited
shall be held by the Administrative Agent as collateral for the prepayment of
such Eurodollar Rate Loans and shall be applied to the prepayment of the
applicable Eurodollar Rate Loans at the end of the current Interest Periods
applicable thereto or, sooner, at the election of the Administrative Agent,
upon the occurrence of an Event of Default. 
At the request of the Borrower, amounts so deposited shall be invested
by the Administrative Agent in Cash Equivalents maturing on or prior to the
date or dates on which it is anticipated that such amounts will be applied to
prepay such Eurodollar Rate Loans; any interest earned on such Cash Equivalents
will be for the account of the Borrower and the Borrower will deposit with the
Administrative Agent the amount of any loss on any such Cash Equivalents to the
extent necessary in order that the amount of the prepayment to be made with the
deposited amounts may not be reduced.

 

(c)                                  Application.  Within each Loan, prepayments will be applied
first to Base Rate Loans, then to Eurodollar Rate Loans in direct order of
Interest Period maturities.  In addition:

 

(i)                                     Voluntary
Prepayments.  Voluntary prepayments
shall be applied as specified by the Borrower; provided that any
voluntary prepayment on the Term Loans shall be applied first pro rata to the
next principal amortization payments due on such Term Loans within the next
twelve (12) months and second pro rata to the remaining principal amortization
installments on the Term Loans, as the case may be.  Voluntary prepayments on the Loan Obligations
will be paid by the Administrative Agent to the Lenders ratably in accordance
with their respective interests therein.

 

(ii)                                  Mandatory
Prepayments.  Mandatory prepayments
on the Loan Obligations will be paid by the Administrative Agent to the Lenders
ratably in accordance with their respective interests therein; provided
that:

 

(A)                              Mandatory
prepayments in respect of the Revolving Commitments under subsection (b)(i)(A) above
shall be applied to the respective Revolving Obligations as appropriate.

 

(B)                                Mandatory
prepayments in respect of Dispositions and Involuntary Dispositions under subsection (b)(ii) above,
Equity Transactions under subsection (b)(iii) above and Consolidated
Excess Cash Flow under subsection (b)(iv) above shall be
applied (i) to the Term Loans, first pro rata to the next principal
amortization payments due on the Term Loans within the next twelve (12) months
and second pro rata to the remaining principal amortization installments on the
Term Loans, until paid in full, then (ii) to the Revolving Loan
Obligations.

 

(C)                                Mandatory
prepayments in respect of the Existing Senior Notes and Additional Notes under subsection (b)(v) above
or in respect of a Change of Control under subsection (b)(vi) above
shall be applied to the Loan Obligations hereunder, as appropriate.

 

Notwithstanding anything
to the contrary contained in this Section 2.06 or elsewhere in this
Credit Agreement (including, without limitation, in Section 11.01),
upon delivery by the Borrower of written notice to the Administrative Agent of
its intention to invoke the terms of this paragraph in connection with, and as
to all or any part of, any Waivable Repayment (as defined below) (with the
decision to give any such written notice and the percentage of any such

 

53

 

Waivable Repayment that
may be waived by the Lenders (the “Waivable Percentage”) to be in the
sole discretion of the Borrower) the Lenders with outstanding Term Loans shall
have the option to waive a mandatory repayment of such Loans pursuant to Sections
2.06(b)(ii), (iii), (iv) and (vi) (each such
prepayment or repayment, a “Waivable Repayment”) upon the terms and
provisions set forth in this paragraph. 
The Borrower shall give to the Administrative Agent written notice of
its intention to make a Waivable Repayment at least five (5) Business Days
prior to such repayment, which notice the Administrative Agent shall promptly
forward to all such Lenders (indicating in such notice the amount of such repayment
to be applied to each such Lender’s outstanding Term Loans).  In the event any such Lender desires to waive
such Lender’s right to receive any such Waivable Repayment in whole or in part,
such Lender shall so advise the Administrative Agent no later than the close of
business two (2) Business Days after the date of such notice from the
Administrative Agent, which notice shall also include the amount such Lender
desires to waive in respect of such repayment (which amount will not exceed the
Waivable Percentage of the portion of such Waivable Repayment which would
otherwise be paid to such Lender). If any Lender does not reply to the
Administrative Agent within the two (2) Business Days, it will be deemed
not to have waived any part of such repayment. 
If any Lender does not specify an amount it wishes to receive, it will
be deemed to have accepted one hundred percent (100%) of the total payment. In
the event that any such Lender waives all or part of such right to receive any
such Waivable Repayment, the amount so waived will be retained by the Borrower.

 

(iii)                               Repricing
Transaction Premium.  If the Borrower
makes a voluntary prepayment of the Tranche B Term Loan within one (1) year
of the Closing Date in connection with any Repricing Transaction, then the
Borrower shall pay to the Administrative Agent, for the ratable benefit of the
Tranche B Term Lenders, a prepayment premium in an amount equal to one percent
(1.00%) of the principal amount so prepaid.

 

2.07                        Termination
or Reduction of Commitments.

 

(a)                                  Voluntary
Reductions.  The Commitments
hereunder may be permanently reduced in whole or in part by notice from the
Borrower to the Administrative Agent; provided that (i) any such
notice thereof must be received by 12:00 noon 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 Loan Obligations then outstanding thereunder.  The Administrative Agent will give prompt
notice to the Lenders of any such reduction in Commitments.  Any reduction of the Aggregate 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 the Aggregate Commitments shall be paid on the
effective date of such termination.

 

(b)                                 Mandatory Reductions.  The
Aggregate Revolving Committed Amount shall be permanently reduced in an amount
equal to prepayments required to be applied to the Revolving Obligations in
respect of Dispositions and Involuntary Dispositions under Section 2.06(b)(ii),
Equity Transactions under Section 2.06(b)(iii), Consolidated Excess
Cash Flow under Section 2.06(b)(iv), maturity of Existing Senior
Notes and Additional Notes under Section 2.06(b)(v) and a
Change of Control under Section 2.06(b)(vi); provided that
the Aggregate Revolving Committed Amount shall not be reduced below $250
million, except in the case of a prepayment on account of a Change of Control
under Section 2.06(b)(vi).

 

54

 

2.08                        Interest.

 

(a)                                  Subject
to the provisions of subsection (b) below, (i) each
Eurodollar Rate Loan shall bear interest on the outstanding principal amount
thereof for each Interest Period at a rate per annum equal to the Eurodollar
Rate for such Interest Period plus the Applicable Percentage; (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.

 

(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)                                  Commitment
Fee.  The Borrower shall pay to the
Administrative Agent for the account of each Revolving Lender in accordance
with its Revolving Commitment Percentage thereof, a commitment fee (the “Commitment
Fee”) equal to the Applicable Percentage of the actual daily amount by
which the Aggregate Revolving Committed Amount exceeds the sum of (i) the
Outstanding Amount of Revolving Loans plus (ii) the Outstanding
Amount of L/C Obligations.  The
commitment fee shall accrue at all times during the Commitment Period,
including at any time during which one or more of the conditions in Article V
is not met, and shall be due and payable quarterly in arrears on the tenth (10th) day of each January, April, July and
October (for the commitment fee accrued during the previous calendar
quarter), commencing with the first such date to occur after the Closing Date,
and on the Revolving Termination Date. 
The commitment 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.  For purposes hereof, Swingline
Loans shall not be counted toward or be considered as usage of the Aggregate
Revolving Committed Amount.

 

55

 

(b)                                 Letter
of Credit Fees.

 

(i)                                     Letter
of Credit Fees.  The Borrower shall
pay to the Administrative Agent, for the account of each Revolving Lender in
accordance with its Revolving Commitment Percentage, a Letter of Credit fee, in
Dollars, (A) for each commercial
Letter of Credit, an amount equal to equal to one-eighth of one percent (1/8%)
per annum multiplied by the daily amount available to be drawn under such
Letter of Credit and (B) for each standby Letter of Credit, an amount
equal to the Applicable Percentage multiplied by the daily
maximum amount available to be drawn under such Letter of Credit (the “Letter
of Credit Fees”).  For purposes of
computing the daily amount available to be drawn under any Letter of Credit,
the amount of such Letter of Credit shall be determined in accordance with Section 1.09.  The Letter of Credit Fees shall be computed
on a quarterly basis in arrears, and shall be due and payable on the tenth
(10th) day of each January, April, July and October (for the Letter
of Credit Fees accrued during the previous calendar quarter), 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 amount available to be drawn under
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. 
Notwithstanding anything to the contrary contained herein, upon the
request of the Required Revolving Lenders, while any Event of Default exists,
all Letter of Credit Fees shall accrue at the Default Rate.

 

(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 (A) with
respect to each commercial Letter of Credit, as provided in the Fee Letter or
otherwise by agreement with the L/C Issuer, payable on the issuance thereof, (B) with
respect to any amendment of a commercial Letter of Credit to increase the
amount available to be drawn thereunder, by mutual agreement of the Borrower
and the L/C Issuer payable on the amount of the increase on the effective date
of the amendment, and (C) with respect to each standby, at the rate
per annum specified in the Fee Letter, computed on the daily amount available
to be drawn under such Letter of Credit on a quarterly basis in arrears.  Such fronting fee shall be due and payable on
the tenth (10th) day of each January, April, July and October (for
fronting fees accrued during the previous calendar quarter or portion thereof,
in the case of the first payment), 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.  For purposes of computing
the daily amount available to be drawn under any Letter of Credit, the amount
of such Letter of Credit shall be determined in accordance with Section 1.09.  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.

 

(c)                                  Other
Fees.

 

(i)                                     The
Borrower shall pay to Bank of America, JPMCB, BAS, JPMCS, 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.

 

56

 

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).  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 (1) day.  Each determination by the Administrative
Agent of an interest rate or fee hereunder shall be conclusive and binding for
all purposes, absent manifest error.

 

2.11                        Payments
Generally; Administrative Agent’s Clawback.

 

(a)                                  General.  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, all payments by the Borrower hereunder shall be made to the
Administrative Agent, for the account of the 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.  The Administrative Agent will promptly
distribute to each Lender its pro rata share of such payment in like funds as
received by wire transfer to such Lender’s Lending Office.  All payments received by the Administrative
Agent after 2:00 p.m. shall be deemed received on the immediately
succeeding Business Day and any applicable interest or fee shall continue to
accrue.  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.

 

(b)                                 (i)                                     Funding
by Lenders; Presumption by Administrative Agent.  Unless the Administrative Agent shall have
received notice from a Lender prior to the proposed date of any Borrowing that
such Lender will not make available to the Administrative Agent such Lender’s
share of such Borrowing, the Administrative Agent may assume that such Lender
has made such share available on such date in accordance with Section 2.02
and may, in reliance upon such assumption, make available to the Borrower a
corresponding amount.  In such event, if
a Lender has not in fact made its share of the applicable Borrowing available
to the Administrative Agent, then the applicable Lender and the Borrower
severally agree to pay to the Administrative Agent forthwith on demand such
corresponding amount in Same Day Funds with interest thereon, for each day from
and including the date such amount is made available to the Borrower to but
excluding the date of payment to the Administrative Agent, at (A) in the
case of a payment to be made by such Lender, the greater of the Federal Funds
Rate and a rate determined by the Administrative Agent in accordance with
banking industry rules on interbank compensation and (B) in the case
of a payment to be made by the Borrower, the interest rate applicable to Base
Rate Loans.  If the Borrower and such
Lender shall pay such interest to the Administrative Agent for the same or an
overlapping period, the Administrative Agent shall promptly remit to the
Borrower the amount of such interest paid by the Borrower for such period.  If such Lender pays its share of the
applicable Borrowing to the Administrative Agent, then the amount so paid shall
constitute such Lender’s Loan included in such Borrowing.  Any payment by the Borrower shall be without
prejudice to any claim the Borrower may have against a Lender that shall have
failed to make such payment to the Administrative Agent.

 

(ii)                                  Payments
by Borrower; Presumptions by Administrative Agent.  Unless the Administrative Agent shall have
received notice from the Borrower prior to the date on which

 

57

 

any payment is due to the
Administrative Agent for the account of the Lenders or the L/C Issuer hereunder
that the Borrower will not make such payment, the Administrative Agent may
assume that the Borrower has made such payment on such date in accordance
herewith and may, in reliance upon such assumption, distribute to the Lenders
or the L/C Issuer, as the case may be, the amount due.  In such event, if the Borrower has not in
fact made such payment, then each of the Lenders or the L/C Issuer, as the case
may be, severally agrees to repay to the Administrative Agent forthwith on
demand the amount so distributed to such Lender or the L/C Issuer, in Same Day
Funds with interest thereon, for each day from and including the date such
amount is distributed to it to but excluding the date of payment to the
Administrative Agent, at the greater of the Federal Funds Rate and a rate
determined by the Administrative Agent in accordance with banking industry rules on
interbank compensation.

 

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

 

(c)                                  Failure
to Satisfy Conditions Precedent.  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 V
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.

 

(d)                                 Obligation
of the Lenders Several.  The
obligations of the Lenders hereunder to make Loans, to fund participations in
Letters of Credit and Swingline Loans and to make payments pursuant to Section 11.04(c) are
several and not joint.  The failure of
any Lender to make any Loan, to fund any such participation or to make any
payment under Section 11.04(c) 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, to purchase its participation or to make its
payment under Section 11.04(c).

 

(e)                                  Funding
Source.  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.

 

2.12                        Sharing
of Payments By Lenders.

 

If any Lender shall, by
exercising any right of setoff or counterclaim or otherwise, obtain payment in
respect of any principal of or interest on any of the Loans made by it, or the
participations in L/C Obligations or in Swingline Loans held by it resulting in
such Lender’s receiving payment of a proportion of the aggregate amount of such
Loans or participations and accrued interest thereon greater than its pro rata
share thereof as provided herein, then the Lender receiving such greater
proportion shall (a) notify the Administrative Agent of such fact, and (b) purchase
(for cash at face value) participations in the Loans and subparticipations in
L/C Obligations and Swingline Loans of the other Lenders, or make such other
adjustments as shall be equitable, so that the benefit of all such payments
shall be shared by the Lenders ratably in accordance with the aggregate amount
of principal of and accrued interest on their respective Loans and other
amounts owing them, provided that:

 

(i)                                     if
any such participations or subparticipations are purchased and all or any
portion of the payment giving rise thereto is recovered, such participations or
subparticipations shall be rescinded and the purchase price restored to the
extent of such recovery, without interest; and

 

58

 

(ii)                                  the
provisions of this Section shall not be construed to apply to (x) any
payment made by the Borrower pursuant to and in accordance with the express
terms of this Credit Agreement or (y) any payment obtained by a Lender as
consideration for the assignment of or sale of a participation in any of its
Loans or subparticipations in L/C Obligations or Swingline Loans to any
assignee or participant, other than to the Borrower or any Subsidiary thereof
(as to which the provisions of this Section shall apply).

 

Each Credit Party
consents to the foregoing and agrees, to the extent it may effectively do so
under applicable law, that any Lender acquiring a participation pursuant to the
foregoing arrangements may exercise against such Credit Party rights of setoff
and counterclaim with respect to such participation as fully as if such Lender
were a direct creditor of such Credit Party in the amount of such
participation.

 

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 evidenced by one or more
entries in the Register maintained by the Administrative Agent, acting solely
for purposes of Treasury Regulation Section 5f.103-1(c) as agent for
the Borrower, in each case 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) above,
each Lender and the Administrative Agent shall maintain in accordance with its
usual practice accounts or records and, in the case of the Administrative
Agent, entries in the Register, 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.

 

(c)                                  Each
Lender having sold a participation in any of its Obligations, acting solely for
this purpose as agent for the Borrower, shall maintain a register for the
recordation of the names and addresses of such Participants (and each change
thereto, whether by assignment or otherwise) and the rights, interest or
obligation of such Participants in any Obligation, in any Commitment and in any
right to receive any payments hereunder.

 

59

 

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.  If the Administrative
Agent, any Lender or any L/C Issuer is entitled to any payment under this subsection (a) due
to a Change in Law, such party shall provide notice to the Administrative Agent
and the Borrower to the effect thereof, provided that the failure to
give such notice shall not affect the right to payment for such party.

 

(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 that
is entitled to an exemption from or reduction of withholding tax under the law
of the jurisdiction in which the Borrower is resident for tax purposes, or any
treaty to which such jurisdiction is a party, with respect to payments
hereunder or under any other Credit Document shall deliver to the Borrower
(with a copy to the Administrative Agent), at the time or times prescribed by
applicable law or reasonably requested by the Borrower or the Administrative
Agent, such properly completed and executed documentation prescribed by
applicable law as will permit such payments to be made without withholding or
at a reduced rate of withholding.  In
addition, any Lender, if requested by the Borrower or the Administrative Agent,
shall deliver such other documentation prescribed by applicable law or
reasonably requested by the Borrower or the Administrative Agent as will enable
the

 

60

 

Borrower or the Administrative Agent to determine whether or not such
Lender is subject to backup withholding or information reporting requirements.

 

Without limiting the
generality of the foregoing, in the event that the Borrower is resident for tax
purposes in the United States, 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, on or prior to the date on which any such
form or certification expires or becomes obsolete and after the occurrence of
any event requiring a change in the most recent form or certification
previously delivered by it (and from time to time thereafter upon the request
of the Borrower or the Administrative Agent, but only if such Foreign Lender is
legally entitled to do so), whichever of the following is applicable:

 

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

 

(ii)                                  duly
completed copies of IRS 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 Internal Revenue 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 Internal Revenue Code,
(B) a “10 percent shareholder” of the Borrower within the meaning of section 881(c)(3)(B) of
the Internal Revenue Code, or (C) a “controlled foreign corporation”
described in section 881(c)(3)(C) of the Internal Revenue Code and
(y) duly completed copies of IRS 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 or L/C Issuer that is a United States person under Section 7701(a)(30)
of the Internal Revenue Code 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 or L/C Issuer becomes a Lender or L/C
Issuer, as applicable, under this Agreement, on or prior to the date on which
any such form or certification expires or becomes obsolete and after the
occurrence of any event requiring a change in the most recent form or
certification previously delivered by it (and from time to time thereafter upon
the request of the Borrower or the Administrative Agent, but only if such
Lender or L/C Issuer is legally entitled to do so), duly completed copies of
Internal Revenue Service Form W-9 (or any successor form) certifying that
such Lender or L/C Issuer is entitled to an exemption from U.S. backup withholding
tax.

 

(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

 

61

 

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 Eurodollar Rate Loans, or to determine or charge
interest rates based upon the Eurodollar Rate, or any Governmental Authority
has imposed material restrictions on the authority of such Lender to purchase
or sell, or to take deposits of, Dollars in the London 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 Eurodollar Rate Loans
or to convert Loans that are Base Rate Loans to Eurodollar Rate Loans 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 Eurodollar Rate Loans of such Lender to
Base Rate Loans, either on the last day of the Interest Period therefor, if
such Lender may lawfully continue to maintain such Eurodollar Rate Loans to
such day, or immediately, if such Lender may not lawfully continue to maintain
such Eurodollar Rate Loans.  Upon any
such prepayment or conversion, the Borrower shall also pay accrued interest on
the amount so prepaid or converted.

 

3.03                        Inability
to Determine Rates.

 

If the Required Lenders
determine that for any reason in connection with any request for a Eurodollar
Rate Loan or a conversion to or continuation thereof that (a) Dollar
deposits are not being offered to banks in the London interbank Eurodollar
market for the applicable amount and Interest Period of such Eurodollar Rate
Loan, (b) adequate and reasonable means do not exist for determining the
Eurodollar Rate for any requested Interest Period with respect to a proposed
Eurodollar Rate Loan, or (c) the Eurodollar Rate for any requested
Interest Period with respect to a proposed Eurodollar Rate Loan 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 Eurodollar Rate Loans 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 Eurodollar Rate Loans or, failing that, will
be deemed to have converted such request into a request for a Borrowing of
Loans that are Base Rate Loans in the amount specified therein.

 

3.04                        Increased
Cost; Capital Adequacy.

 

(a)                                  Increased
Costs Generally.  If any Change in
Law shall:

 

(i)                                     impose,
modify or deem applicable any reserve, special deposit, compulsory loan,
insurance charge or similar requirement against assets of, deposits with or for
the account of, or credit extended or participated in by, any Lender (except
any reserve requirement reflected in the Eurodollar Rate) or the L/C Issuer;

 

(ii)                                  subject
any Lender or the L/C Issuer to any tax of any kind whatsoever with respect to
this Credit Agreement, any Letter of Credit, any participation in a Letter of
Credit or any Eurodollar Rate Loan made by it, or change the basis of taxation
of payments to such Lender

 

62

 

or the
L/C Issuer in respect thereof (except for Indemnified Taxes or Other Taxes
covered by Section 3.01 and the imposition of, or any change in the
rate of, any Excluded Tax payable by such Lender or the L/C Issuer); or

 

(iii)                               impose
on any Lender or the L/C Issuer or the London interbank market any other
condition, cost or expense affecting this Credit Agreement or Eurodollar Rate
Loans made by such Lender or any Letter of Credit or participation therein;

 

and the result of any of
the foregoing shall be to increase the cost to such Lender of making or
maintaining any Eurodollar Rate Loan (or of maintaining its obligation to make
any such Loan), or to increase the cost to such Lender or the L/C Issuer of
participating in, issuing or maintaining any Letter of Credit (or of
maintaining its obligation to participate in or to issue any Letter of Credit),
or to reduce the amount of any sum received or receivable by such Lender or the
L/C Issuer hereunder (whether of principal, interest or any other amount) then,
upon request of such Lender or the L/C Issuer, the Borrower will pay to such
Lender or the L/C Issuer, as the case may be, such additional amount or amounts
as will compensate such Lender or the L/C Issuer, as the case may be, for such
additional costs incurred or reduction suffered.  Notwithstanding the foregoing, this Section 3.04(a) shall
not apply to matters governed by Section 3.01.

 

(b)                                 Capital
Requirements.  If any Lender or the
L/C Issuer determines that any Change in Law affecting such Lender or the L/C
Issuer or any Lending Office of such Lender or such Lender’s or the L/C Issuer’s
holding company, if any, regarding capital requirements has or would have the
effect of reducing the rate of return on such Lender’s or the L/C Issuer’s
capital or on the capital of such Lender’s or the L/C Issuer’s holding company,
if any, as a consequence of this Credit Agreement, the Commitments of such
Lender or the Loans made by, or participations in Letters of Credit held by,
such Lender, or the Letters of Credit issued by the L/C Issuer, to a level
below that which such Lender or the L/C Issuer or such Lender’s or the L/C
Issuer’s holding company could have achieved but for such Change in Law (taking
into consideration such Lender’s or the L/C Issuer’s policies and the policies
of such Lender’s or the L/C Issuer’s holding company with respect to capital
adequacy), then from time to time the Borrower will pay to such Lender or the
L/C Issuer, as the case may be, such additional amount or amounts as will
compensate such Lender or the L/C Issuer or such Lender’s or the L/C Issuer’s
holding company for any such reduction suffered.

 

(c)                                  Certificates
for Reimbursement.  A certificate of
a Lender or the L/C Issuer setting forth the amount or amounts necessary to
compensate such Lender or the L/C Issuer or its holding company, as the case
may be, as specified in subsections (a) or (b) of this Section and
delivered to the Borrower shall be conclusive absent manifest error.  The Borrower shall pay such Lender or the L/C
Issuer, as the case may be, the amount shown as due on any such certificate
within ten (10) days after receipt thereof.

 

(d)                                 Delay
in Requests.  Failure or delay on the
part of any Lender or the L/C Issuer to demand compensation pursuant to the
foregoing provisions of this Section shall not constitute a waiver of such
Lender’s or the L/C Issuer’s right to demand such compensation, provided
that the Borrower shall not be required to compensate a Lender or the L/C
Issuer pursuant to the foregoing provisions of this Section for any
increased costs incurred or reductions suffered more than nine (9) months
prior to the date that such Lender or the L/C Issuer, as the case may be,
notifies the Borrower of the Change in Law giving rise to such increased costs
or reductions and of such Lender’s or the L/C Issuer’s intention to claim
compensation therefor (except that, if the Change in Law giving rise to such
increased costs or reductions is retroactive, then the nine-month period
referred to above shall be extended to include the period of retroactive effect
thereof).

 

63

 

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 reasonable
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); or

 

(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; or

 

(c)                                  any
assignment of a Eurodollar Rate Loan on a day other than the last day of the
Interest Period therefor as a result of a request by the Borrower pursuant to Section 11.13;

 

including any reasonable 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 and reasonable 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 Eurodollar Rate Loan made by it
at the Eurodollar Rate for such Loan
by a matching deposit or other borrowing in the London interbank eurodollar
market for a comparable amount and for a comparable period, whether or not such
Eurodollar Rate Loan was in fact so funded.

 

3.06                        Mitigation
Obligations; Replacement of Lenders.

 

(a)                                  Designation
of a Different Lending Office.  If
any Lender requests compensation under Section 3.04, or 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 gives a notice pursuant to Section 3.02, then such
Lender shall use reasonable efforts to designate a different Lending Office for
funding or booking its Loans hereunder or to assign its rights and obligations
hereunder to another of its offices, branches or affiliates, if, in the
judgment of such Lender, such designation or assignment (i) would
eliminate or reduce amounts payable pursuant to Section 3.01 or 3.04,
as the case may be, in the future, or eliminate the need for the notice
pursuant to Section 3.02, as applicable, and (ii) in each
case, would not subject such Lender to any unreimbursed cost or expense and
would not otherwise be disadvantageous to such Lender.  The Borrower hereby agrees to pay all
reasonable costs and expenses incurred by any Lender in connection with any
such designation or assignment.

 

(b)                                 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, the Borrower may
replace such Lender in accordance with Section 11.13.

 

(c)                                  Limitation on Additional Amounts, etc. Notwithstanding anything to the contrary
contained in this Article III of this Credit Agreement, unless a
Lender gives notice to the Borrower that it is obligated to pay an amount under
this Article within nine (9) months after the later of (i) the
date the

 

64

 

Lender incurs the respective increased costs, loss, expense or
liability, reduction in amounts received or receivable or reduction in return
on capital or (ii) the date such Lender has actual knowledge of its
incurrence of the respective increased costs, loss, expense or liability,
reductions in amounts received or receivable or reduction in return on capital,
then such Lender shall only be entitled to be compensated for such amount by
the Borrower pursuant to this Article III, to the extent of the
costs, loss, expense or liability, reduction in amounts received or receivable
or reduction in return on capital that are incurred or suffered on or after the
date which occurs nine (9) months prior to such Lender giving notice to
the Borrower that it is obligated to pay the respective amounts pursuant to this
Article III.

 

3.07                        Survival
Losses.

 

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

 

ARTICLE IV

 

GUARANTY

 

4.01                        The
Guaranty.

 

(a)                                  Each
of the Guarantors hereby jointly and severally guarantees to the Administrative
Agent and each of the holders of the Obligations, as hereinafter provided, as
primary obligor and not as surety, the prompt payment of the Obligations (the “Guaranteed
Obligations”) in full when due (whether at stated maturity, as a mandatory
prepayment, by acceleration, as a mandatory cash collateralization or
otherwise) strictly in accordance with the terms thereof.  The Guarantors hereby further agree that if
any of the Guaranteed Obligations are not paid in full when due (whether at
stated maturity, as a mandatory prepayment, by acceleration, as a mandatory
cash collateralization or otherwise), the Guarantors will, jointly and
severally, promptly pay the same, without any demand or notice whatsoever, and
that in the case of any extension of time of payment or renewal of any of the
Guaranteed Obligations, the same will be promptly paid in full when due
(whether at extended maturity, as a mandatory prepayment, by acceleration, as a
mandatory cash collateralization or otherwise) in accordance with the terms of
such extension or renewal.

 

(b)                                 Notwithstanding
any provision to the contrary contained herein, in any other of the Credit
Documents, Swap Contracts or other documents relating to the Obligations, the
obligations of each Guarantor under this Credit Agreement and the other Credit
Documents shall be limited to an aggregate amount equal to the largest amount
that would not render such obligations subject to avoidance under the Debtor
Relief Laws or any comparable provisions of any applicable state law.

 

4.02                        Obligations
Unconditional.

 

The
obligations of the Guarantors under Section 4.01 are joint and
several, absolute and unconditional, irrespective of the value, genuineness,
validity, regularity or enforceability of any of the Credit Documents or other
documents relating to the Obligations, or any substitution, compromise, release,
impairment or exchange of any other guarantee of or security for any of the
Guaranteed Obligations, and, to the fullest extent permitted by applicable Law,
irrespective of any other circumstance whatsoever that might otherwise
constitute a legal or equitable discharge or defense of a surety or guarantor,
it being the intent of this Section 4.02 that the obligations of
the Guarantors hereunder shall be absolute and unconditional under any and all
circumstances.  Each Guarantor agrees
that such Guarantor shall have no right of subrogation, indemnity,
reimbursement or contribution against the Borrower or any other Guarantor for
amounts paid under this Article IV until such time as the
Obligations have been irrevocably paid in full and the

 

65

 

commitments relating thereto have expired or been terminated.  Without limiting the generality of the
foregoing, it is agreed that, to the fullest extent permitted by law, the
occurrence of any one or more of the following shall not alter or impair the
liability of any Guarantor hereunder, which shall remain absolute and
unconditional as described above:

 

(a)                                  at
any time or from time to time, without notice to any Guarantor, the time for
any performance of or compliance with any of the Guaranteed Obligations shall
be extended, or such performance or compliance shall be waived;

 

(b)                                 any
of the acts mentioned in any of the provisions of any of the Credit Documents,
or other documents relating to the Guaranteed Obligations or any other
agreement or instrument referred to therein shall be done or omitted;

 

(c)                                  the
maturity of any of the Guaranteed Obligations shall be accelerated, or any of
the Obligations shall be modified, supplemented or amended in any respect, or
any right under any of the Credit Documents or other documents relating to the
Guaranteed Obligations, or any other agreement or instrument referred to
therein shall be waived or any other guarantee of any of the Guaranteed
Obligations or any security therefor shall be released, impaired or exchanged
in whole or in part or otherwise dealt with;

 

(d)                                 any
Lien granted to, or in favor of, the Administrative Agent or any of the holders
of the Guaranteed Obligations as security for any of the Guaranteed Obligations
shall fail to attach or be perfected; or

 

(e)                                  any
of the Guaranteed Obligations shall be determined to be void or voidable
(including, without limitation, for the benefit of any creditor of any
Guarantor) or shall be subordinated to the claims of any Person (including,
without limitation, any creditor of any Guarantor).

 

With respect to its
obligations hereunder, each Guarantor hereby expressly waives diligence,
presentment, demand of payment, protest, notice of acceptance of the guaranty
given hereby and of extensions of credit that may constitute obligations
guaranteed hereby, notices of amendments, waivers and supplements to the Credit
Documents and other documents relating to the Guaranteed Obligations, or the
compromise, release or exchange of collateral or security, and all notices
whatsoever, and any requirement that the Administrative Agent or any holder of
the Guaranteed Obligations exhaust any right, power or remedy or proceed
against any Person under any of the Credit Documents or any other documents relating
to the Guaranteed Obligations or any other agreement or instrument referred to
therein, or against any other Person under any other guarantee of, or security
for, any of the Obligations.

 

4.03                        Reinstatement.

 

Neither the Guarantors’
obligations hereunder nor any remedy for the enforcement thereof shall be
impaired, modified, changed or released in any manner whatsoever by an
impairment, modification, change, release or limitation of the liability of the
Borrower, by reason of the Borrower’s bankruptcy or insolvency or by reason of
the invalidity or unenforceability of all or any portion of the Guaranteed
Obligations.  The obligations of the
Guarantors under this Article IV shall be automatically reinstated
if and to the extent that for any reason any payment by or on behalf of any
Person in respect of the Guaranteed Obligations is rescinded or must be
otherwise restored by any holder of any of the Obligations, whether as a result
of any proceedings pursuant to any Debtor Relief Law or otherwise, and each
Guarantor agrees that it will indemnify the Administrative Agent and each
holder of Guaranteed Obligations on demand for all reasonable costs and
expenses (including all reasonable fees, expenses and disbursements of any law
firm or other counsel) incurred by the Administrative Agent or such holder of
Guaranteed Obligations in connection with such rescission or restoration,
including any such costs and expenses incurred in defending

 

66

 

against any claim alleging that such payment constituted a preference,
fraudulent transfer or similar payment under any Debtor Relief Law.

 

4.04                        Certain
Waivers.

 

Each Guarantor
acknowledges and agrees that (a) the guaranty given hereby may be enforced
without the necessity of resorting to or otherwise exhausting remedies in
respect of any other security or collateral interests, and without the
necessity at any time of having to take recourse against the Borrower hereunder
or against any collateral securing the Guaranteed Obligations or otherwise, (b) it
will not assert any right to require the action first be taken against the
Borrower or any other Person (including any co-guarantor) or pursuit of any
other remedy or enforcement any other right and (c) nothing contained
herein shall prevent or limit action being taken against the Borrower
hereunder, under the other Credit Documents or the other documents and
agreements relating to the Guaranteed Obligations or from foreclosing on any
security or collateral interests relating hereto or thereto, or from exercising
any other rights or remedies available in respect thereof, if neither the
Borrower nor the Guarantors shall timely perform their obligations, and the
exercise of any such rights and completion of any such foreclosure proceedings
shall not constitute a discharge of the Guarantors’ obligations hereunder
unless as a result thereof, the Guaranteed Obligations shall have been indefeasibly
paid in full and the commitments relating thereto shall have expired or been
terminated, it being the purpose and intent that the Guarantors’ obligations
hereunder be absolute, irrevocable, independent and unconditional under all
circumstances.

 

4.05                        Remedies.

 

The Guarantors agree
that, to the fullest extent permitted by law, as between the Guarantors, on the
one hand, and the Administrative Agent and the holders of the Guaranteed
Obligations, on the other hand, the Guaranteed Obligations may be declared to
be forthwith due and payable as provided in Section 9.02 (and shall
be deemed to have become automatically due and payable in the circumstances
provided in Section 9.02) for purposes of Section 4.01,
notwithstanding any stay, injunction or other prohibition preventing such
declaration (or preventing the Guaranteed Obligations from becoming automatically
due and payable) as against any other Person and that, in the event of such
declaration (or the Guaranteed Obligations being deemed to have become
automatically due and payable), the Guaranteed Obligations (whether or not due
and payable by any other Person) shall forthwith become due and payable by the
Guarantors for purposes of Section 4.01.  The Guarantors acknowledge and agree that the
Guaranteed Obligations are secured in accordance with the terms of the
Collateral Documents and that the holders of the Guaranteed Obligations may
exercise their remedies thereunder in accordance with the terms thereof.

 

4.06                        Rights
of Contribution.

 

The Guarantors hereby
agree as among themselves that, in connection with payments made hereunder,
each Guarantor shall have a right of contribution from each other Guarantor in
accordance with applicable Law.  Such
contribution rights shall be subordinate and subject in right of payment to the
Guaranteed Obligations until such time as the Guaranteed Obligations have been
irrevocably paid in full and the commitments relating thereto shall have
expired or been terminated, and none of the Guarantors shall exercise any such
contribution rights until the Guaranteed Obligations have been irrevocably paid
in full and the commitments relating thereto shall have expired or been
terminated.

 

4.07                        Guaranty
of Payment; Continuing Guaranty.

 

The guarantee in this Article IV
is a guaranty of payment and not of collection, and is a continuing guarantee,
and shall apply to all Guaranteed Obligations whenever arising.

 

67

 

ARTICLE V

 

CONDITIONS PRECEDENT TO CREDIT EXTENSIONS

 

5.01                        Conditions
to Initial Credit Extensions.

 

The obligation of each
Lender and the L/C Issuer 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, the Notes, the
Security Agreement and the Pledge Agreement, in each case, dated as of the
Closing Date, duly executed by a Responsible Officer of each Credit Party party
thereto 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 each
Credit Party, 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 or
certificate 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, operating agreement or
partnership agreement;

 

(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 such Credit Party that are authorized to execute Credit
Documents and to act on such Credit Party’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, in each case certified as of a recent date by the appropriate
Governmental Authority.

 

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

 

(d)                                 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 any
Credit Party of the Credit Documents to which it is a party, other than as are
in full force and effect and, to the extent requested by the Administrative
Agent, are attached thereto;

 

68

 

(ii)                                  Material
Adverse Effect.  There has been no
event or circumstance since the date of the audited financial statements for
the fiscal year ending December 31, 2004 that has had or would reasonably
be expected to have, either individually or in the aggregate, a Material
Adverse Effect;

 

(iii)                               Material
Litigation.  There is no action,
suit, investigation or proceeding pending or, to the knowledge of the Borrower,
threatened in any court or before any arbitrator or Governmental Authority that
could reasonably be expected to have, either individually or in the aggregate,
a Material Adverse Effect;

 

(iv)                              Financial
Statements.  The annual financial
statements of the Borrower for the fiscal year ended December 31, 2004 (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
audit adjustments) and (C) show all material indebtedness and other
liabilities, direct or contingent, of the Consolidated Group as of the date
thereof, including liabilities for taxes, material commitments and Indebtedness;

 

(v)                                 Financial
Covenant Calculations.  Calculations
demonstrating compliance with (on a Pro Forma Basis after giving effect to the
initial Credit Extensions and the other transactions occurring on the Closing
Date and the redemption of the Existing Senior Notes contemplated by Section 7.16)
the financial covenants set forth in Section 8.10 as of December 31,
2004; and

 

(vi)                              Debt
Rating.  The current Debt Ratings.

 

(e)                                  Personal
Property Collateral.  The Collateral
Agent’s receipt of the following, each in form and substance reasonably satisfactory
to the Collateral Agent:

 

(i)                                     Lien
Priority.  Evidence that (A) the
Collateral Agent, on behalf of the Lenders, holds a perfected, first priority
Lien on all Collateral and (B) none of the Collateral is subject to any
Liens (other than Permitted Liens);

 

(ii)                                  UCC
Financing Statements.  Such UCC
financing statements as are necessary or appropriate, in the Collateral Agent’s
discretion, to perfect the security interests in the Collateral;

 

(iii)                               Intellectual
Property.  Such patent, trademark and
copyright notices and recordations as are necessary or appropriate, in the
Collateral Agent’s discretion, to perfect the security interests in the Credit
Parties’ IP Rights;

 

(iv)                              Capital
Stock.  Original certificates
evidencing the Capital Stock pledged pursuant to the Collateral Documents (to
the extent such Capital Stock is certificated), together with undated stock
transfer powers executed in blank; and

 

(v)                                 Promissory
Notes.  Original promissory notes, if
any, evidencing intercompany loans or advances owing to any Credit Party by any
Subsidiary of the Borrower, together with undated allonges executed in blank.

 

69

 

(f)                                    Evidence
of Insurance.  The Collateral Agent’s
receipt of copies of insurance certificates or policies with respect to all
insurance required to be maintained pursuant to the Credit Documents
identifying the Collateral Agent as sole loss payee, with respect to casualty
insurance.

 

(g)                                 Capital Contribution. 
Receipt by the Borrower of gross cash proceeds of at least $531 million
from one or more capital contributions occurring on or prior to the Closing
Date.

 

(h)                                 Termination of Existing Credit Agreement. 
Confirmation that all Indebtedness of the Borrower under the Existing
Credit Agreement will be repaid in full and the commitments thereunder will be terminated
and all Liens relating thereto will be terminated or released substantially
contemporaneously with the initial advances under this Credit Agreement.

 

(i)                                     Other.  The Administrative Agent’s receipt of such
other reports, audits, assurances, certificates, documents, consents or
opinions as the Administrative Agent or the Lenders may reasonably require.

 

(j)                                     Fees
and Expenses.  All fees and expenses
(including, unless waived by the Administrative Agent, all reasonable fees,
expenses and disbursements of any law firm or other counsel) invoiced to the
Borrower and required to be paid on or before the Closing Date shall have been
paid.

 

Without limiting the
generality of the provisions of Section 10.04, for purposes of
determining compliance with the conditions specified in this Section 5.01,
each Lender that has signed this Credit Agreement shall be deemed to have
consented to, approved or accepted or to be satisfied with, each document or
other matter required thereunder to be consented to or approved by or
acceptable or satisfactory to a Lender unless the Administrative Agent shall
have received notice from such Lender prior to the proposed Closing Date
specifying its objection thereto.

 

5.02                        Conditions
to all Credit Extensions.

 

The obligation of each
Lender and the L/C Issuer to honor any Request for Credit Extension is subject
to the following conditions precedent:

 

(a)                                  The
representations and warranties of the Borrower and each other Credit Party
contained in Article VI shall be true and correct in all material
respects 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,
in which case they shall be true and correct in all material respects as of
such earlier date.

 

(b)                                 No
Default or Event of Default shall exist, or would result from such proposed Credit
Extension or from the application of the proceeds thereof.

 

(c)                                  The
incurrence by the Borrower of the Indebtedness evidenced by such Credit
Extension shall be permitted by the Existing Senior Note Indenture (to the
extent indebtedness thereunder is outstanding); and

 

(d)                                 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.

 

Each Request for Credit
Extension submitted by the Borrower shall be deemed to be a representation and
warranty by the Borrower that the conditions specified in Sections 5.02(a),
(b) and (c) have been satisfied on and as of the date
of the applicable Credit Extension.

 

70

 

ARTICLE VI

 

REPRESENTATIONS AND WARRANTIES

 

The Credit Parties
represent and warrant to the Administrative Agent and the Lenders that:

 

6.01                        Existence,
Qualification and Power.

 

Each Credit Party (a) is
duly organized or formed, validly existing and in good standing under the Laws
of the jurisdiction of its incorporation or formation, (b) has all
requisite power and authority and all requisite governmental licenses,
authorizations, consents and approvals to (i) execute, deliver and perform
its obligations under the Credit Documents to which it is a party and (ii) except
to the extent it would not reasonably be expected to have a Material Adverse
Effect, own its assets and carry on its business, and (c) except to the
extent it would not reasonably be expected to have a Material Adverse Effect,
is duly qualified and is licensed and in good standing under the Laws of each
jurisdiction where its ownership, lease or operation of properties or the
conduct of its business requires such qualification or license.

 

6.02                        Authorization;
No Contravention.

 

The execution, delivery
and performance by each Credit Party of each Credit Document to which it is
party have been duly authorized by all necessary corporate or other
organizational action and do not (a) contravene the terms of such Credit
Party’s Organization Documents; (b) conflict with or result in any breach
or contravention of, or the creation of any Lien (other than Permitted Liens)
under, (i) any Contractual Obligation to which such Credit Party is party
or (ii) any order, injunction, writ or decree of any Governmental
Authority or any arbitral award to which such Credit Party or its Property is
subject; or (c) violate any Law applicable to such Credit Party and the
relevant Credit Documents.

 

6.03                        Governmental
Authorization; Other Consents.

 

No approval, consent,
exemption, authorization, or other action by, or notice to, or filing with, any
Governmental Authority or any other Person is necessary or required in
connection with the execution, delivery or performance by, or enforcement
against, any Credit Party of this Credit Agreement or any other Credit Document
(other than (a) as have already been obtained and are in full force and
effect, (b) filings to perfect security interests granted pursuant to the
Credit Documents and (c) filings to release security interests granted
pursuant to the Existing Credit Agreement).

 

6.04                        Binding
Effect.

 

This Credit Agreement and
each other Credit Document has been duly executed and delivered by each Credit
Party that is party thereto.  This Credit
Agreement and the other Credit Documents constitute legal, valid and binding
obligations of such Credit Party, enforceable against such Credit Party in
accordance with its terms, except to the extent the enforceability thereof may
be limited by applicable Debtor Relief Laws affecting creditors’ rights
generally and by equitable principles of law (regardless of whether enforcement
is sought in equity or at law).

 

6.05                        Financial
Statements.

 

The audited consolidated
balance sheet of the Consolidated Group for the fiscal year ended December 31,
2004, and the related consolidated statements of income or operations,
shareholders’ equity and cash flows for such fiscal year, including the notes
thereto (i) were prepared in accordance with

 

71

 

GAAP consistently applied throughout the period covered thereby, except
as otherwise expressly noted therein; and (ii) fairly present the
financial condition of the Consolidated Group as of the date thereof and their
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.

 

6.06                        No
Material Adverse Effect.

 

Since December 31,
2004, there has been no event or circumstance, either individually or in the
aggregate, that has had or would reasonably be expected to have a Material
Adverse Effect.

 

6.07                        Litigation.

 

There are no actions,
suits or proceedings pending or, to the knowledge of the Borrower, threatened,
at law, in equity, in arbitration or before any Governmental Authority, by or
against the any member of the Consolidated Group or against any of their
properties or revenues that (a) purport to affect or pertain to this
Credit Agreement or any other Credit Document, or any of the transactions
contemplated hereby, or (b) either individually or in the aggregate would
reasonably be expected to have a Material Adverse Effect.

 

6.08                        No
Default.

 

No Default or Event of
Default has occurred and is continuing or would result from the consummation of
the transactions contemplated by this Credit Agreement or any other Credit
Document.

 

6.09                        Ownership
of Property; Liens.

 

The property of the
Consolidated Group is subject to no Liens, other than Permitted Liens.

 

6.10                        Taxes.

 

Each member of the
Consolidated Group has filed (or has had filed on its behalf) all federal and
other material state, local and foreign tax returns and reports required to be
filed, and have paid prior to delinquency all federal and other material state,
local and foreign taxes, assessments, fees and other governmental charges
levied or imposed upon them or their properties, income or assets otherwise due
and payable, except (i) those that are being contested in good faith by
appropriate proceedings diligently conducted and for which adequate reserves
have been provided in accordance with GAAP or (ii) any return or amount
the failure of which to so file or pay could not reasonably be expected to have
a Material Adverse Effect.

 

6.11                        ERISA
Compliance.

 

(a)                                  Each
Pension 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 knowledge of the Borrower, nothing has
occurred that would prevent, or cause the loss of, such qualification except in
such instances in which the failure to comply therewith either individually or
in the aggregate would not reasonably be expected to have Material Adverse
Effect.  The Borrower and each ERISA
Affiliate have made all required contributions to each Pension Plan subject to Section 412
of the Internal Revenue Code, and no application for a funding waiver or an extension
of any amortization period pursuant to Section 412 of the Internal Revenue
Code has been made with respect to any Pension Plan except in such instances in
which

 

72

 

the failure to comply therewith either individually or in the aggregate
would not reasonably be expected to have Material Adverse Effect.

 

(b)                                 There
are no pending or, to the 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) 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 (iii) 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 which in the case of clause (i) through (iii) above,
would reasonably be expected to have a Material Adverse Effect.

 

6.12                        Subsidiaries.

 

Set forth on Schedule 6.12,
is a list of all Subsidiaries of the Borrower as of the Closing Date, together
with the jurisdiction of organization, classes of Capital Stock (including
options, warrants, rights of subscription, conversion, exchangeability and
other similar rights), and ownership and ownership percentages of each such Subsidiary.  The outstanding Capital Stock has been
validly issued, is owned free of Liens (other than Permitted Liens), and with
respect to any outstanding shares of Capital Stock of a corporation, such
shares have been validly issued and are fully paid and non-assessable.  The outstanding shares of Capital Stock are
not subject to any buy-sell, voting trust or other shareholder agreement except
as identified on Schedule 6.12. 
The Borrower may provide information from time to time to modify and
update the information set forth on Schedule 6.12.

 

6.13                        Margin
Regulations; PUHCA; Investment Company Act.

 

(a)                                  The
Credit Parties are not engaged and will not engage, principally or as one of
their 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.

 

(b)                                 None
of the Credit Parties, 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.

 

6.14                        Disclosure.

 

No report, financial
statement, certificate or other information (taken as a whole) furnished
(whether in writing or orally) by or on behalf of any Credit Party to the
Administrative Agent or any Lender in connection with the transactions
contemplated hereby and the negotiation of this Credit Agreement or delivered
hereunder or under any other Credit Document (in each case, as modified or
supplemented by other information so furnished) contains any material
misstatement of fact or omits to state any material fact necessary to make the
statements therein, in the light of the circumstances under which they were
made, not misleading; provided that, with respect to projected financial
information, the

 

73

 

Borrower represents only that such information was prepared in good
faith based upon assumptions believed to be reasonable at the time.

 

6.15                        Compliance
with Laws.

 

Each member of the
Consolidated Group is in compliance in all material respects with the
requirements of all Laws and all orders, writs, injunctions, settlements or
other agreements with any Governmental Authority and decrees applicable to it
or to its properties, except in such instances in which (a) such
requirement of Law or order, writ, injunction or decree is being contested in
good faith by appropriate proceedings diligently conducted or (b) the
failure to comply therewith, either individually or in the aggregate, would not
reasonably be expected to have a Material Adverse Effect.

 

6.16                        FCC Licenses.

 

As
of the Closing Date, Schedule 6.16 accurately and completely lists
the space station and earth station licenses necessary for operation of
Satellites with C-band or Ku-band transponders issued by the FCC to members of
the Consolidated Group.  As of the Closing
Date, the FCC Licenses and the other licenses, approvals or authorizations
listed on Schedule 6.16 with respect to any Satellite include all
material authorizations, licenses and permits issued by the FCC or any other
governmental authority that are required or necessary to launch or operate such
Satellite, as applicable.  As of the
Closing Date, each such license is held in the name of the Borrower or another
member of the Consolidated Group and is validly issued and in full force and
effect, and the members of the Consolidated Group have fulfilled and performed
in all material respects all of their obligations with respect to thereto and
have full power and authority to operate thereunder.

 

6.17                        Satellites.

 

As
of the Closing Date, Schedule 6.17 accurately and completely lists
the Satellites owned or leased by members of the Consolidated Group, and sets
forth for each Satellite that is in orbit, the orbital slot and number and
frequency band of the transponders on such Satellite.

 

6.18                        Intellectual
Property; Licenses, Etc.

 

As
of the Closing Date, each member of the Consolidated Group owns, or possesses
the right to use, all of the trademarks, service marks, trade names,
copyrights, patents, patent rights, franchises, licenses and other intellectual
property rights (collectively, “IP Rights”) that are reasonably
necessary for the operation of their respective businesses, without conflict
with the rights of any other Person, except to the extent such conflict would
not reasonably be expected to have a Material Adverse Effect.  As of the Closing Date, no claim or
litigation regarding any of the foregoing is pending or, to the knowledge of
the Credit Parties, threatened, that, either individually or in the aggregate,
would reasonably be expected to have a Material Adverse Effect.

 

6.19                        Security
Agreement.

 

The Security Agreement is
effective to create in favor of the Collateral Agent, for the ratable benefit of
the holders of the Obligations, a legal, valid and enforceable security
interest in the Collateral identified therein, except to the extent the
enforceability thereof may be limited by applicable Debtor Relief Laws
affecting creditors’ rights generally and by equitable principles of law
(regardless of whether enforcement is sought in equity or at law) and, when UCC
financing statements (or other appropriate notices) in appropriate form are
duly filed at the locations identified in the Security Agreement, the Security
Agreement shall create a fully perfected first priority Lien on, and security
interest in, all right,

 

74

 

title and interest of the grantors thereunder in such Collateral, in
each case prior and superior in right to any other Lien (other than Permitted
Liens).

 

6.20                        Pledge
Agreement.

 

The Pledge Agreement is
effective to create in favor of the Collateral Agent, for the ratable benefit
of the holders of the Obligations, a legal, valid and enforceable security
interest in the Collateral identified therein, except to the extent the
enforceability thereof may be limited by applicable Debtor Relief Laws
affecting creditors’ rights generally and by equitable principles of law
(regardless of whether enforcement is sought in equity or at law) and the
Pledge Agreement shall create a fully perfected first priority Lien on, and
security interest in, all right, title and interest of the pledgors thereunder
in such Collateral, in each case prior and superior in right to any other Lien (i) with
respect to any such Collateral that is a “security” (as such term is defined in
the UCC) and is evidenced by a certificate, when such Collateral is delivered
to the Collateral Agent with duly executed stock powers with respect thereto, (ii) with
respect to any such Collateral that is a “security” (as such term is defined in
the UCC) but is not evidenced by a certificate, when UCC financing statements
in appropriate form are filed in the appropriate filing offices in the jurisdiction
of organization of the pledgor or when “control” (as such term is defined in
the UCC) is established by the Collateral Agent over such interests in
accordance with the provision of Section 8-106 of the UCC, or any
successor provision, and (iii) with respect to any such Collateral that is
not a “security” (as such term is defined in the UCC), when UCC financing
statements in appropriate form are filed in the appropriate filing offices in
the jurisdiction of organization of the pledgor.

 

6.21                        Mortgages.

 

Upon the execution and
delivery thereof, each of the Mortgages is effective to create in favor of the
Collateral Agent, for the ratable benefit of the holders of the Obligations, a
legal, valid and enforceable security interest in the Mortgaged Properties
identified therein in conformity with applicable Law, except to the extent the
enforceability thereof may be limited by applicable Debtor Relief Laws
affecting creditors’ rights generally and by equitable principles of law
(regardless of whether enforcement is sought in equity or at law) and, when the
Mortgages and UCC financing statements in appropriate form are duly recorded at
the locations identified in the Mortgages, and recording or similar taxes, if
any, are paid, the Mortgages shall constitute a fully perfected first priority
Lien on, and security interest in, all right, title and interest of the
grantors thereunder in such Mortgaged Properties, in each case prior and
superior in right to any other Lien (other than Permitted Liens).

 

ARTICLE VII

 

AFFIRMATIVE COVENANTS

 

Until the Loan
Obligations shall have been paid in full or otherwise satisfied, and the
Commitments hereunder shall have expired or been terminated, the Borrower will,
and will cause each of its Subsidiaries to:

 

7.01                        Financial
Statements.

 

Deliver to the
Administrative Agent and each Lender:

 

(a)                                  as
soon as available, but in any event within ten (10) days of the date the
Borrower is required to file its Form 10-K with the SEC (without giving
effect to any extension of such date, whether obtained by filing the
notification permitted by Rule 12b-25 or any successor provision thereto
or

 

75

 

otherwise) and not later than ninety (90) days after the end of each
fiscal year of the Borrower, a consolidated balance sheet of the Consolidated
Group as at the end of such fiscal year, and the related consolidated
statements of income or operations, shareholders’ equity and cash flows for
such fiscal year, setting forth in each case in comparative form the figures
for the previous fiscal year, all in reasonable detail and prepared in
accordance with GAAP, audited and accompanied by (1) a report and opinion
of a Registered Public Accounting Firm of nationally recognized standing, which
report and opinion shall be prepared in accordance with generally accepted
auditing standards and applicable Securities Laws and shall not be subject to
any “going concern” or like qualification or exception or any qualification or
exception as to the scope of such audit or other material qualification or
exception and (2) if required by Section 404 of Sarbanes-Oxley, an
attestation report of such Registered Public Accounting Firm as to the Borrower’s
internal controls pursuant to Section 404 of Sarbanes-Oxley; and

 

(b)                                 as
soon as available, but in any event within ten (10) days of the date the
Borrower is required to file its Form 10-Q with the SEC (without giving
effect to any extension of such date, whether obtained by filing the
notification permitted by Rule 12b-25 or any successor provision thereto
or otherwise) and not later than forty-five (45) days after the end of each of
the first three (3) fiscal quarters of each fiscal year of the Borrower, a
consolidated balance sheet of the Consolidated Group as at the end of such
fiscal quarter, and the related consolidated statements of income or
operations, shareholders’ equity and cash flows for such fiscal quarter and for
the portion of the Borrower’s fiscal year then ended, setting forth in each
case in comparative form the figures for the corresponding fiscal quarter of
the previous fiscal year and the corresponding portion of the previous fiscal
year, all in reasonable detail and certified by a Responsible Officer of the
Borrower as fairly presenting the financial condition, results of operations,
shareholders’ equity and cash flows of the Consolidated Group in accordance
with GAAP, subject only to normal year-end audit adjustments and the absence of
footnotes.

 

As to any information
contained in materials furnished pursuant to Section 7.02(d), the
Borrower shall not be separately required to furnish such information under subsection (a) or (b) above,
but the foregoing shall not be in derogation of the obligation of the Borrower
to furnish the information and materials described in subsections  (a) and (b) above
at the times specified therein.

 

7.02                        Certificates;
Other Information.

 

Deliver to the
Administrative Agent and each Lender:

 

(a)                                  concurrently
with the delivery of the financial statements referred to in Section 7.01(a),
a certificate of its independent certified public accountants certifying such
financial statements and stating that in making the examination necessary
therefor no knowledge was obtained of any Default or Event of Default with
respect to financial covenants or, if any such Default or Event of Default
shall exist, stating the nature and status of such event;

 

(b)                                 concurrently
with the delivery of the financial statements referred to in Sections 7.01(a) and
(b), a duly completed Compliance Certificate signed by a Responsible
Officer of the Borrower (i) commencing with the fiscal quarter ended June 30,
2005, setting forth computations in reasonable detail satisfactory to the
Administrative Agent demonstrating compliance with the financial covenants contained
herein, and (ii) certifying that no Default or Event of Default exists as
of the date thereof (or the nature and extent thereof and proposed actions with
respect thereto), and if such Compliance Certificate demonstrates an Event of
Default of any financial covenant contained in Section 8.10, the
Borrower may deliver, together with such Compliance Certificate, notice of its
intent to cure (a “Notice of Intent to Cure”) such Event of Default
through equity capital contributions as contemplated pursuant to Section 9.05;

 

76

 

(c)                                  promptly
after any reasonable request by the Administrative Agent or the Required
Lenders, copies of any 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 (so long as the
Borrower is not prohibited from doing so by the terms of the engagement of such
independent accountants);

 

(d)                                 copies
of all annual, regular, periodic and special reports and registration
statements that the Borrower may file with the SEC under Section 13 or 15(d) of
the Securities Exchange Act of 1934, and not otherwise required to be delivered
to the Administrative Agent pursuant hereto; and

 

(e)                                  promptly,
such additional information regarding the business, financial or corporate
affairs of any Credit Party or any Subsidiary of a Credit Party, or compliance
with the terms of the Credit Documents, as the Administrative Agent or the
Required Lenders (acting through the Administrative Agent) may from time to
time reasonably request.

 

Documents required to be
delivered pursuant to Sections 7.01 or 7.02 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 11.02;
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: (A) 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 (B) the Borrower shall notify (which may be by
facsimile or electronic mail) the Administrative Agent and each Lender 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.  Unless
expressly requested by a Lender, documents required to be delivered pursuant to
Sections 7.01 or 7.02 shall not be required to be physically
delivered to any Lender to the extent such documents are available on the EDGAR
database.  Notwithstanding anything
contained herein, in every instance the Borrower shall be required to provide
paper copies of the Compliance Certificates required by Section 7.02(b) to
the Administrative Agent.  Except for such
Compliance Certificates, the Administrative Agent shall have no obligation to
request the 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.

 

The Credit Parties hereby
acknowledge that the Administrative Agent, BAS and/or JPMCS will make available
to the Lenders and the L/C Issuer materials and/or information provided by or
on behalf of the Credit Parties hereunder (collectively, the “Credit Party
Materials”) by posting the Credit Party Materials on IntraLinks or another
similar electronic system (the “Platform”) and that certain of the
Lenders may be “public-side” Lenders (i.e., Lenders
that do not wish to receive material non-public information with respect to the
Credit Parties or their securities) (each, a “Public Lender”).  The Credit Parties hereby agree that so long
as any Credit Party is the issuer of any outstanding debt or equity securities
that are registered or issued pursuant to a private offering or is actively
contemplating issuing any such securities (1) all Credit Party Materials
that are to be made available to Public Lenders shall be clearly and
conspicuously marked “PUBLIC” (which, at a minimum, shall mean that the word “PUBLIC”
shall appear prominently on the first page thereof), or otherwise
indicated to the Administrative Agent as being “PUBLIC”; (2) by marking or
otherwise indicating the Credit Party Materials “PUBLIC,” the Credit Parties
shall be deemed to have authorized the Administrative Agent, BAS, JPMCS and the
L/C Issuer and the Lenders to treat such Credit Party Materials as not
containing any material non-public information with respect to the Credit
Parties or their securities for purposes of United States federal and

 

77

 

state securities laws (provided, however, that to the extent
such Credit Party Materials constitute Information, they shall be treated as
set forth in Section 11.07); (3) all Credit Party Materials
marked “PUBLIC” are permitted to be made available through a portion of the
Platform designated as “Public Investor”; and (4) the Administrative
Agent, BAS and JPMCS shall be entitled to treat any Credit Party Materials that
are not marked or otherwise indicated “PUBLIC” as being suitable only for
posting on a portion of the Platform not marked as “Public Investor”.  Notwithstanding the foregoing, the Borrower
shall be under no obligation to mark any Credit Party Materials “Public”.

 

7.03                        Notification.

 

Promptly, and in any
event within 3 Business Days (with respect to clause (a) and (b) below)
or within 10 Business Days (with respect to clause (c) below),
respectively, after any senior or financial officer of the Borrower or any of
its material Subsidiaries obtains knowledge thereof, notify the Administrative
Agent and each Lender of:

 

(a)                                  the
occurrence of any Default or Event of Default;

 

(b)                                 any
announcement by any Ratings Service of any change in a Debt Rating; and

 

(c)                                  any
litigation, investigation or proceeding affecting any Credit Party which would
reasonably be expected to have a Material Adverse Effect.

 

7.04                        Preservation of Existence.

 

Except
as otherwise permitted hereunder, do all things necessary to preserve and keep
in full force and effect its existence, rights, franchises and authority,
except to the extent that the failure to do so would not have a Material
Adverse Effect.

 

7.05                        Payment of Taxes and Other Obligations.

 

Pay
and discharge (i) all taxes, assessments and governmental charges or
levies imposed upon it, or upon its income or profits, or upon any of its
properties, before they become delinquent, (ii) all lawful claims
(including claims for labor, material and supplies) that, if unpaid, might give
rise to a Lien upon any of its properties, and (iii) except as prohibited
hereunder, all of its other Indebtedness as it becomes due, except in each case
to the extent that the failure to do so would not have a Material Adverse
Effect; provided that no member of the Consolidated Group shall be
required to pay any amount that is being contested in good faith by appropriate
proceedings for which adequate reserves determined in accordance with GAAP have
been established.

 

7.06                        Compliance with Law.

 

Comply
with the requirements of all applicable laws, rules, regulations and orders of
any Governmental Authority, a breach of which would result in a Material Adverse
Effect, except where contested in good faith by appropriate proceedings
diligently pursued.

 

7.07                        Maintenance of Property.

 

Maintain
and preserve its material properties and equipment in good repair, working
order and condition, normal wear and tear and casualty and condemnation
excepted, and make all repairs, renewals, replacements, extensions, additions,
betterments and improvements thereto as may be necessary or proper, to the
extent and in the manner customary for similar businesses.

 

78

 

7.08                        Insurance.

 

Maintain
at all times in 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 determined by the Borrower in its
reasonable business judgment; provided, however, that members of the
Consolidated Group may self-insure to the extent they deem prudent.  The Collateral Agent shall be named as loss
payee or mortgagee, as its interests may appear, with respect to any such
insurance providing coverage in respect of any collateral under the Collateral
Documents, and each provider of any such insurance shall agree, by endorsement
upon the policy or policies issued by it or by independent instruments
furnished to the Collateral Agent, that it will give the Collateral Agent
thirty (30) days’ prior written notice before any such policy or policies shall
be altered in any material respect or canceled, and that no act or default of
any member of the Consolidated Group or any other Person shall affect the
rights of the Collateral Agent or the Lenders under such policy or
policies.  The insurance coverage for the
Consolidated Group as of the Closing Date is outlined as to carrier, policy
number, expiration date and type on Schedule 7.08.

 

7.09                        ERISA
Compliance.

 

Do each of the following,
except where the failure to do so would not result in a Material Adverse
Effect:

 

(a)                                  maintain
each Plan (other than any Multiemployee Plan), in all material respects, in
compliance with the applicable provisions of ERISA, the Internal Revenue Code
and other applicable Law;

 

(b)                                 cause
each Pension Plan that is qualified under Section 401(a) of the
Internal Revenue Code to maintain such qualification; and

 

(c)                                  make
all required contributions to any Pension Plan subject to Section 412 of
the Internal Revenue Code.

 

7.10                        Books
and Records.

 

Maintain (a) proper
books of record and account, in which true and correct entries in conformity
with GAAP shall be made of all financial transactions and matters involving the
assets and business of the Borrower or such Subsidiary, as the case may be, and
(b) such books of record and account in material conformity with all
applicable requirements of any Governmental Authority having regulatory
jurisdiction over the Borrower or such Subsidiary.

 

7.11                        Inspection
Rights.

 

Permit representatives
and independent contractors of the Administrative Agent (which may be
accompanied by any Lender) to (i) to discuss its affairs, finances and
accounts with its directors, officers, and independent public accountants at
such reasonable times during normal business hours and as often as may be
reasonably desired, upon reasonable advance notice to the Borrower and (ii) visit
and inspect any of its properties and examine its corporate, financial and
operating records, once per fiscal year of the Borrower at such reasonable
times during normal business hours, upon reasonable advance notice to the
Borrower, and at the Administrative Agent’s expense; provided, however,
that when an Event of Default exists the Administrative Agent or any of its
representatives or independent contractors (which may be

 

79

 

accompanied by any Lender) may do any of the foregoing at the expense
of the Borrower at any time during normal business hours.

 

7.12                        Use
of Proceeds.

 

Use the proceeds of the
Credit Extensions to refinance Indebtedness under the Existing Credit Agreement
and certain other existing Indebtedness and for working capital, capital
expenditures, restricted payments and other general corporate purposes, in each
case not in contravention of any Law or of any Credit Document; provided,
however, that the proceeds of the Term Loans made on the Closing Date shall not
be used to redeem any Existing Senior Notes.

 

7.13                        Joinder
of Subsidiaries as Guarantors.

 

Promptly notify the
Administrative Agent of the formation, acquisition (or other receipt of interests)
or existence of any Domestic Subsidiary that is not a Guarantor (other than an
Excluded Domestic Subsidiary) that holds assets in excess of $50 million individually
and, together with all other Domestic Subsidiaries (other than Excluded
Domestic Subsidiaries) that are not Guarantors, $100 million, which notice
shall include information as to the jurisdiction of organization, the number
and class of Capital Stock outstanding and ownership thereof (including
options, warrants, rights of conversion or purchase relating thereto), and with
respect to any such Subsidiary that is a Domestic Subsidiary and a United
States person under Section 7701(a)(30) of the Internal Revenue Code,
within ninety (90) days of the formation, acquisition or other receipt of
interests thereof, cause the joinder of such Subsidiary as a Guarantor pursuant
to Joinder Agreements (or such other documentation in form and substance
reasonably acceptable to the Administrative Agent) accompanied by Organization
Documents and, if reasonably requested by the Administrative Agent, favorable
opinions of counsel to such Credit Party, in form and substance reasonably
satisfactory to the Administrative Agent.

 

7.14                        Pledge
of Capital Stock.

 

Pledge or cause to be
pledged to the Collateral Agent to secure the Obligations (a) one hundred
percent (100%) of the issued and outstanding Capital Stock of each Domestic
Subsidiary (other than an Excluded Domestic Subsidiary) that owns and holds
(including through direct and indirect Subsidiaries) assets in excess of $50
million individually and, together with all other Domestic Subsidiaries
(including their direct and indirect Subsidiaries but excluding Excluded
Domestic Subsidiaries) whose Capital Stock are not Collateral, $100 million,
within ninety (90) days of its formation, acquisition or other receipt of such
interests and (b) Capital Stock representing up to sixty-five (65%) of the
total combined voting power of the issued and outstanding Capital Stock of each
First-Tier Foreign Subsidiary and Domestic Subsidiary that is not a United
States person under Section 7701(a)(30) of the Internal Revenue Code that
owns and holds assets in excess of $50 million individually and, together with
all other First-Tier Foreign Subsidiaries and Domestic Subsidiaries that are
not United States persons under Section 7701(a)(30) of the Internal
Revenue Code whose Capital Stock are not Collateral, $100 million, within ninety (90) days of its formation, acquisition or
other receipt of such interests, in each case pursuant to the Pledge Agreement
or pledge joinder agreements, together with, if reasonably requested by the
Administrative Agent, opinions of counsel and any filings and deliveries
reasonably requested by the Collateral Agent in connection therewith to perfect
the security interests therein, all in form and substance reasonably
satisfactory to the Administrative Agent.

 

7.15                        Pledge
of Other Property.

 

With respect to each
Credit Party, pledge and grant a security interest in all of its personal
property, tangible and intangible, owned and leased (except (a) Excluded
Property, (b) as otherwise set

 

80

 

forth in Section 7.14 with respect to Capital Stock and (c) as
otherwise set forth in the Collateral Documents) to secure the Obligations,
within ninety (90) days of the acquisition thereof pursuant to such pledge and
security agreements, joinder agreements or other documents, together with
opinions of counsel and any filings and deliveries reasonably requested by the
Collateral Agent in connection therewith to perfect the security interests
therein, all in form and substance reasonably satisfactory to the
Administrative Agent.

 

7.16                        Prepayment of Existing Senior Notes.  

 

The Borrower shall,
within forty-five (45) days of the Closing Date, redeem Existing Senior Notes
in an aggregate principal amount of $490 million.

 

7.17                        Further Assurances Regarding Collateral.  

 

The Credit Parties shall,
within ninety (90) days after the Closing Date (or such later date as may be
agreed to by the Collateral Agent), deliver to the Collateral Agent:

 

(i)                                     Mortgages.  Counterparts of a Mortgage for
each Mortgaged Property, in each case duly executed by a Responsible Officer of
each Credit Party party thereto, as reasonably requested by the Administrative
Agent.

 

(ii)                                  Surveys.  Copies of recent ALTA surveys
of each Mortgaged Property by registered engineers or land surveyors;

 

(iii)                               Title Policies. 
Standard ALTA mortgagee polices insuring the priority of the Mortgages
and copies of recorded documentation relating to any exceptions; and

 

(iv)                              Environmental Reports. 
Copies of existing, material environmental reports and other material,
non-privileged environmental documentation, if any, relating to the Mortgaged
Properties, to the extent in the Borrower’s possession, custody or control.

 

(v)                                 Evidence of Insurance. 
Evidence of flood insurance on improvements located in a flood hazard
area for the Mortgaged Properties, identifying the Collateral Agent as sole
loss payee thereon.

 

ARTICLE VIII

 

NEGATIVE COVENANTS

 

Until the Loan
Obligations shall have been paid in full or otherwise satisfied, and the
Commitments hereunder shall have expired or been terminated, the Borrower will
not, and will not permit any of its Subsidiaries to:

 

8.01                        Liens.

 

Create, incur, assume or
suffer to exist any Lien upon any of its property, assets or revenues, whether
now owned or hereafter acquired, other than the following:

 

(a)                                  Liens given to secure the loans and
obligations hereunder and under the other Credit Documents;

 

81

 

(b)                                 Liens given to secure obligations under
interest rate protection agreements, foreign currency exchange agreements and
other similar agreement with Lenders or their affiliates, provided that (i) the
obligations are otherwise permitted under Section 8.03, (ii) the
Liens are on the same collateral that secures the loans and other obligations
hereunder and (iii) such obligations share pari  passu with
the Loans and Obligations hereunder in the collateral and the proceeds
therefrom subject to the provisions of Section 9.03;

 

(c)                                  Liens existing on the Closing Date and listed
on Schedule 8.01, together with any renewals, extensions and
replacements thereof, provided that the collateral interests are not broadened
or increased;

 

(d)                                 Liens (other than Liens created or imposed
under ERISA) for taxes, assessments or governmental charges or levies not yet
due or to the extent non-payment thereof is permitted under Section 7.05;

 

(e)                                  statutory Liens of landlords and Liens of
carriers, warehousemen, mechanics, materialmen and suppliers and other Liens
imposed by law or pursuant to customary reservations or retentions of title
arising in the ordinary course of business, provided that such Liens
secure only amounts not yet due and payable or, if due and payable, are unfiled
and no other action has been taken to enforce the same or are being contested
in good faith by appropriate proceedings for which adequate reserves determined
in accordance with GAAP have been established (and as to which the property
subject to any such Lien is not yet subject to a foreclosure, sale or loss
proceeding on account thereof (other than a proceeding where foreclosure, sale
or loss has been stayed));

 

(f)                                    Liens (other than Liens created or imposed
under ERISA) incurred or deposits made by any member of the Consolidated Group
in the ordinary course of business in connection with workers’ compensation,
unemployment insurance and other types of social security, or to secure the
performance of tenders, statutory obligations, bids, leases, government
contracts, performance and return-of-money bonds and other similar obligations
(exclusive of obligations for the payment of borrowed money);

 

(g)                                 Liens in connection with attachments or
judgments (including judgment or appeal bonds) that do not result in an Event
of Default under Section 9.01(h);

 

(h)                                 easements, rights-of-way, covenants,
restrictions (including zoning restrictions), minor defects or irregularities
in title and other similar charges or encumbrances not, in any material
respect, impairing the use of the encumbered property for its intended
purposes;

 

(i)                                     Liens on property of any Person securing
purchase money and sale/leaseback Indebtedness (including capital leases and
Synthetic Leases) of such Person to the extent permitted under Section 8.03(c),
provided, that any such Lien attaches only to the property financed or
leased and such Lien attaches prior to, at the time of or one hundred eighty (180)
days after the later of the date of acquisition of such property or the date
such property is placed in service, for the purpose of financing all or any
part of the purchase price thereof; provided, however, that for
purposes of this clause (i), (A) a satellite will be treated as a
newly acquired asset as of the date it is placed in service and (B) any
satellite transponder acquired through the exercise of an early buy-out option
shall be treated as a newly-acquired asset as of the date such option is
exercised;

 

(j)                                     licenses, sublicenses, leases or subleases
granted to others not interfering in any material respect with the business of
any member of the Consolidated Group;

 

82

 

(k)                                  any interest or title of a lessor under, and
Liens arising from UCC financing statements (or equivalent filings,
registrations or agreements in foreign jurisdictions) relating to, leases
permitted by this Credit Agreement;

 

(l)                                     Liens in favor of customs and revenue
authorities arising as a matter of law to secure payment of customs duties in
connection with the importation of goods and Liens deemed to exist in
connection with Investments in repurchase agreements that constitute Permitted
Investments;

 

(m)                               normal and customary rights of setoff upon
deposits of cash in favor of banks or other depository institutions;

 

(n)                                 Liens of a collection bank arising under Section 4-210
of the Uniform Commercial Code on items in the course of collection;

 

(o)                                 Liens on property or assets acquired in
connection with a Permitted Acquisition, provided that (i) the
indebtedness secured by such Liens is permitted under Section 8.03,
and (ii) the Liens are not incurred in connection with, or in
contemplation or anticipation of, the acquisition and do not attach or extend
to any other property or assets;

 

(p)                                 Liens
in favor of or by a Receivables Subsidiary created or deemed to exist in
connection with a Securitization Transaction not prohibited by this Credit Agreement
(including any related filings of any financing statements), but only to the
extent that any such Lien relates to the Securitization Receivables actually sold, contributed, financed or otherwise conveyed
or pledged pursuant to such transaction;

 

(q)                                 Liens in favor of or by a Financing
Subsidiary on the customer premise and receiving equipment, accounts
receivables and related assets associated with such equipment;

 

(r)                                    with respect to any Mortgaged Property, such
exceptions to title as are set forth in the title policies delivered with
respect thereto, all of which exceptions shall be reasonably acceptable to the
Administrative Agent; and

 

(s)                                  other
Liens not described above, provided that such Liens do not secure
obligations in excess of $100,000,000 at any one time outstanding.

 

8.02                        Investments.

 

Make or permit to exist
any Investments, except:

 

(a)                                  cash
and Cash Equivalents;

 

(b)                                 Investments
(including intercompany Investments) existing on the date hereof and listed on Schedule 8.02;

 

(c)                                  to
the extent not prohibited by applicable Law, advances to officers, directors
and employees of the Borrower and Subsidiaries made in the ordinary course of
business, for travel, entertainment, relocation and other ordinary business
purposes;

 

(d)                                 Investments
consisting of extensions of credit in the nature of accounts receivable or
notes receivable arising from the grant of trade credit in the ordinary course
of business, and Investments

 

83

 

received in satisfaction or partial satisfaction thereof from
financially troubled account debtors to the extent reasonably necessary in
order to prevent or limit loss;

 

(e)                                  Investments
by the Borrower and Domestic Subsidiaries in Domestic Credit Parties;

 

(f)                                    Investments by the Borrower and Domestic
Subsidiaries in Foreign Subsidiaries and in Persons or property where the property
to be acquired in connection with such Investment is not located primarily in
the United States, provided that (i) if such Investments exceed $50
million in the aggregate, the Consolidated Total Leverage Ratio will not be
greater than 4.5:1.0 and the Consolidated Senior Secured Leverage Ratio will
not be greater than 3.5:1.0, in each case after giving effect thereto on a Pro
Forma Basis and (ii) no Default or Event of Default shall exist after
giving effect thereto;

 

(g)                                 Investments
by Foreign Subsidiaries in any member of the Consolidated Group (including
other Foreign Subsidiaries);

 

(h)                                 Investments
in (i) Receivables Subsidiaries made as part of Securitization
Transactions not prohibited by this Credit Agreement and (ii) Financing Subsidiaries
made to fund the financing activity thereof not prohibited by this Credit
Agreement;

 

(i)                                     Support
Obligations permitted by Section 8.03;

 

(j)                                     Investments
made as a part of Permitted Acquisitions;

 

(k)                                  loans and advances to subscribers, suppliers,
technology partners and distributors in the ordinary course of business;

 

(l)                                     Investments by the Borrower, provided
that (i) the Consolidated Total Leverage Ratio will not be greater than
4.5:1.0 and the Consolidated Senior Secured Leverage Ratio will not be greater
than 3.5:1.0, in each case after giving effect thereto on a Pro Forma Basis and
(ii) no Default or Event of Default shall exist after giving effect
thereto;

 

(m)                               Investments representing non-cash
consideration received in connection with any Disposition permitted hereunder; and

 

(n)                                 other
Investments not contemplated in the foregoing clauses of this Section in
an aggregate principal amount not to exceed the sum (to the extent positive) of
(i) $250 million plus (ii) the portion of Net Cash Proceeds
from Equity Transactions occurring after the Closing Date that is not required
as a mandatory prepayment hereunder plus (iii) the amount of all
capital contributions received by the Borrower after the Closing Date, minus
(iv) the aggregate amount of Restricted Payments made pursuant to Section 8.06(d).

 

8.03                        Indebtedness.

 

Create, incur, assume or
suffer to exist any Indebtedness, except:

 

(a)                                  Indebtedness existing or arising under this
Credit Agreement and the other Credit Documents;

 

(b)                                 Indebtedness existing on the Closing Date set
forth on Schedule 8.03, and renewals, refinancings and extensions
thereof on market terms;

 

84

 

(c)                                  capital lease obligations and purchase money
Indebtedness (including obligations in respect of capital leases) to finance
the purchase or acquisition of fixed assets, and renewals, refinancings and
extensions thereof; provided that (i) such Indebtedness when
incurred shall not exceed the purchase price of the asset(s) financed and (ii) no
such Indebtedness shall be refinanced for a principal amount in excess of the
principal balance outstanding thereon at the time of any such refinancing;

 

(d)                                 obligations under interest rate, commodities
and foreign currency exchange protection agreements entered into in the
ordinary course of business to manage existing or anticipated risks and not for
speculative purposes;

 

(e)                                  unsecured intercompany Indebtedness among
members of the Consolidated Group to the extent permitted by Section 8.02;

 

(f)                                    Indebtedness evidenced by the Existing Senior
Notes;

 

(g)                                 Indebtedness of the Borrower or of the
Borrower and the Co-Issuer evidenced by Additional Notes, provided that (i) such
Indebtedness shall be issued on terms no less favorable to the Borrower in all
material respects than with prevailing market standards at the time such
Indebtedness is issued, (ii) the subordination provisions for any such
Indebtedness that is Subordinated Debt shall be consistent with prevailing
market standards and (iii) after giving effect to the issuance thereof,
the Credit Parties will be in compliance with the financial covenants hereunder
on a Pro Forma Basis (which, in the case of any issuance of Indebtedness in
excess of $100 million, shall be demonstrated by calculations certified by a
Responsible Officer) and no Default or Event of Default would exist hereunder;

 

(h)                                 Support Obligations by members of the
Consolidated Group in respect of Indebtedness permitted under subsections (a) through
(g); provided that any such Support Obligations with respect to
Indebtedness permitted under subsection (g) that is
Subordinated Debt shall be similarly subordinated to the loans and obligations
hereunder;

 

(i)                                     (i) Securitization Transactions that
constitute Non-Recourse Indebtedness and (ii) other Securitization
Transactions having an aggregate Attributable Principal Amount not to exceed
$250 million;

 

(j)                                     Indebtedness incurred by any Financing
Subsidiary;

 

(k)                                  Indebtedness acquired or assumed pursuant to
a Permitted Acquisition, provided that such Indebtedness was not incurred in
connection with, or in anticipation or contemplation of, such Permitted
Acquisition;

 

(l)                                     Indebtedness arising under any performance or
surety bond entered into in the ordinary course of business; and

 

(m)                               Funded
Debt of the Borrower and its Subsidiaries
not contemplated in the foregoing clauses of this Section in an aggregate principal amount not to
exceed $250 million.

 

85

 

8.04                        Mergers
and Dissolutions.

 

(a)                                  Enter into a transaction of merger or
consolidation, except that:

 

(i)                                     a Domestic Subsidiary of the Borrower may be
a party to a transaction of merger or consolidation with the Borrower or
another Domestic Subsidiary of the Borrower; provided that if the Borrower
is a party to such transaction, it shall be the surviving entity;

 

(ii)                                  a Foreign Subsidiary may be party to a
transaction of merger or consolidation with a Subsidiary of the Borrower; provided
that (A) if a Domestic Subsidiary is a party thereto, it shall be the
surviving entity and if such Domestic Subsidiary is not already a Credit Party,
it shall execute and deliver such joinder agreements as may be necessary for
compliance with the provisions of Section 7.13, and (B) if a
Foreign Subsidiary is a party thereto and a Domestic Subsidiary is not a party
thereto, the surviving entity shall be a Foreign Subsidiary and the Borrower
and its Subsidiaries shall be in compliance with the requirements of Section 7.14;

 

(iii)                               a Domestic Subsidiary of the Borrower may be
a party to a transaction of merger or consolidation with a Person other than a
member of the Consolidated Group; provided that (A) the surviving
entity shall be a Domestic Subsidiary of the Borrower and shall execute and
deliver such joinder agreements as may be necessary for compliance with the
provisions of Section 7.13, (B) no Default or Event of Default
shall exist immediately after giving effect thereto, and (C) the
transaction shall otherwise constitute a Permitted Acquisition; and

 

(iv)                              a Subsidiary of the Borrower may enter into a
transaction of merger or consolidation in connection with an Asset Disposition
permitted under Section 8.05; and

 

(v)                                 the Borrower may merge or consolidate with
another Person in connection with a conversion from a limited liability company
to a corporation; provided that the surviving entity shall execute and deliver
such joinder agreements and other documents reasonably requested by the Administrative
Agent to assume the Obligations of the Borrower under the Credit Documents.

 

(b)                                 Except in connection with a transaction
permitted by Section 8.04(a)(v), the Borrower will not dissolve,
liquidate or wind up its affairs.

 

8.05                        Dispositions.

 

Make any Disposition, except that (a) where at least seventy-five
percent (75%) of the consideration received from the Disposition is cash or
Cash Equivalents, members of the Consolidated Group may make Dispositions in
any fiscal year in an aggregate amount for all such Dispositions in any fiscal
year not to exceed an amount equal to ten percent (10%) of consolidated assets
for the Consolidated Group as of the end of the immediately preceding fiscal
year, (b) where less than seventy-five percent (75%) of the consideration
received from the Disposition is cash or Cash Equivalents, members of the
Consolidated Group may make Dispositions in any fiscal year in an aggregate
amount for all such Dispositions not to exceed $150 million, and (c) where
consideration received from any Disposition will exceed $50 million, the
Borrower shall deliver a certificate from a Responsible Officer, in form and
detail satisfactory to the Administrative Agent in its reasonable discretion,
demonstrating compliance with the financial covenants hereunder after giving
effect to the Disposition on a Pro Forma Basis and confirming that no Default
or Event of Default then exists hereunder.

 

86

 

8.06                        Restricted
Payments.

 

Declare or make, directly
or indirectly, any Restricted Payment, except that:

 

(a)                                  Subsidiaries
of the Borrower may pay dividends and make distributions in respect of their
Capital Stock;

 

(b)                                 the
Borrower may declare and make dividend payments or other distributions payable
solely in the common stock or other common equity interests of such Person;

 

(c)                                  the
Borrower may purchase, redeem or otherwise acquire shares of its common stock
or other common equity interests or warrants or options to acquire any such
shares with the proceeds received from the substantially concurrent issue of
new shares of its common stock or other common equity interests;

 

(d)                                 provided
that no Default or Event of Default shall exist after giving effect thereto,
the Borrower may make Restricted Payments in an aggregate amount from the
Closing Date not to exceed the sum (to the extent positive) of (i) $250
million plus (ii) the portion of Net Cash Proceeds from Equity
Transactions occurring after the Closing Date that is not required as a
mandatory prepayment hereunder plus (iii) the amount of all capital
contributions received by the Borrower after the Closing Date minus (iv) the
aggregate amount of Investments made pursuant to Section 8.02(n);

 

(e)                                  the
Borrower may redeem Existing Senior Notes (i) in an aggregate principal
amount not to exceed $490 million and (ii) not later than forty-five (45)
days following the Closing Date;

 

(f)                                    the
Borrower may refinance Funded Debt with the net cash proceeds of additional
Funded Debt so long as (i) if the Funded Debt being refinanced is
Subordinated Debt, then such new Funded Debt shall be at least as subordinated
in right of payment and otherwise to the Obligations as the Funded Debt being
refinanced (as determined by the Administrative Agent), (ii) the principal
amount of the new Funded Debt is not greater than the principal amount of the
Funded Debt being refinanced, together with any premium paid thereon and
reasonable costs and expenses (including underwriting discounts) incurred in
connection therewith, (iii) the final maturity and average life to
maturity of the new Funded Debt is not less than the Funded Debt being
refinanced and (iv) the material terms of the new Funded Debt taken as a
whole are at least as favorable to the Consolidated Group and the Lenders as
under the Funded Debt being refinanced;

 

(g)                                 the
Borrower may make Restricted Payments in connection with Tax Distributions;

 

(h)                                 the
members of the Consolidated Group may prepay or repay intercompany Indebtedness
owed to other members of the Consolidated Group;

 

(i)                                     the
Borrower may repay the intercompany note dated August 27, 2004 in the original
principal amount of $875 million owed to the Parent; and

 

(j)                                     the
Borrower may make additional Restricted Payments, provided that (i) the
Consolidated Total Leverage Ratio will not be greater than 4.5:1.0 and the
Consolidated Senior

 

87

 

Secured Leverage Ratio
will not be greater than 3.5:1.0, in each case after giving effect thereto on a
Pro Forma Basis and (ii) no Default or Event of Default shall exist after
giving effect thereto.

 

8.07                        Change
in Nature of Business.

 

Engage in any material
line of business other than a Permitted Business.

 

8.08                        Change
in Fiscal Year.

 

Change its fiscal year
without the prior written notice to the Administrative Agent and the Lenders.

 

8.09                        Transactions
with Affiliates.

 

Enter into any
transaction of any kind with any Affiliate of the Borrower (other than another
member of the Consolidated Group that is a Domestic Subsidiary), whether or not
in the ordinary course of business, other than (i) on fair and reasonable
terms substantially as favorable in all material respects to the Borrower or
such Subsidiary as would be obtainable by the Borrower or such Subsidiary at
the time in a comparable arm’s length transaction with a Person other than an
Affiliate and (ii) Restricted Payments permitted by Section 8.06.

 

8.10                        Financial
Covenants.

 

(a)                                  Consolidated
Senior Secured Leverage Ratio. 
Permit the Consolidated Senior Secured Leverage Ratio as of the last day
of any fiscal quarter to be greater than 4.0:1.0.

 

(b)                                 Consolidated
Total Leverage Ratio.  Permit the
Consolidated Total Leverage Ratio as of the last day of any fiscal quarter to
be greater than 6.0:1.0.

 

(c)                                  Consolidated
Interest Coverage Ratio.  Permit the
Consolidated Interest Coverage Ratio as of the last day of any fiscal quarter
to be less than 2.5:1.0.

 

ARTICLE IX

 

EVENTS OF DEFAULT AND REMEDIES

 

9.01                        Events
of Default.

 

Any of the following
shall constitute an Event of Default:

 

(a)                                  Non-Payment.  The Borrower or any other Credit Party fails
to pay (i) when and as required to be paid herein, any amount of principal
of any Loan, or (ii) within three (3) Business Days after the same
becomes due, any L/C Obligation or interest on any Loan or on any L/C
Obligation, or any regularly accruing fee due hereunder, or (iii) within ten
(10) Business Days after written notice thereof to the defaulting party by
the Administrative Agent or the Required Lenders after the same becomes due,
any other amount payable hereunder or under any other Credit Document; or

 

(b)                                 Specific
Covenants.  The Borrower or any other
Credit Party fails to perform or observe any term, covenant or agreement
contained in any of Section 7.03(a),  7.12 or Article VIII;
or

 

88

 

(c)                                  Other
Defaults.  The Borrower or any other
Credit Party fails to perform or observe any other covenant or agreement (not
specified in subsections (a) or (b) above) contained in
any Credit Document on its part to be performed or observed and such failure
continues for thirty (30) calendar days after written notice to the defaulting
party by the Administrative Agent or the Required Lenders; or

 

(d)                                 Representations
and Warranties.  Any representation,
warranty, certification or statement of fact made or deemed made by or on
behalf of the Borrower or any other Credit Party herein, in any other Credit
Document, or in any document delivered in connection herewith or therewith
shall be false in any material respect when made or deemed made; or

 

(e)                                  Cross-Default.  (i) Any member of the Consolidated Group
(A) fails to make any payment when due (whether by scheduled maturity,
required prepayment, acceleration, demand, or otherwise) in respect of any
Indebtedness or Support Obligations (other than Indebtedness hereunder,
Indebtedness under Swap Contracts and Non-Recourse Indebtedness other than in
connection with Securitization Transactions) having an aggregate principal
amount (including undrawn committed or available amounts and including amounts
owing to all creditors under any combined or syndicated credit arrangement) of
more than $100 million beyond the period of grace (if any) provided in the
instrument or agreement pursuant to which such Indebtedness was created, or (B) fails
to observe or perform any other agreement or condition relating to any such
Indebtedness or Support Obligations or contained in any instrument or agreement
evidencing, securing or relating thereto, or any other event occurs, the effect
of which default or other event is to cause, or to permit the holder or holders
of such Indebtedness or the beneficiary or beneficiaries of such Support
Obligations (or a trustee or agent on behalf of such holder or holders or
beneficiary or beneficiaries) to cause, with the giving of notice if required,
such Indebtedness to be demanded or to become due or to be repurchased,
prepaid, defeased or redeemed (automatically or otherwise), or an offer to
repurchase, prepay, defease or redeem such Indebtedness to be made, prior to
its stated maturity, or such Support Obligations to become payable or cash
collateral in respect thereof to be demanded; or (ii) there occurs under
any Swap Contract an Early Termination Date (as defined in such Swap Contract)
resulting from (A) any event of default under such Swap Contract as to
which the Borrower or any Subsidiary is the Defaulting Party (as defined in
such Swap Contract) or (B) any Termination Event (as so
defined) under such Swap Contract as to which the Borrower or any
Subsidiary is an Affected Party (as so defined) and, in either event, the
Swap Termination Value owed by the Borrower or such Subsidiary as a result
thereof is greater than $100 million; or

 

(f)                                    Insolvency
Proceedings, Etc.  Any Credit Party
institutes or consents to the institution of any proceeding under any Debtor
Relief Law, or makes an assignment for the benefit of creditors; or applies for
or consents to the appointment of any receiver, trustee, custodian,
conservator, liquidator, rehabilitator or similar officer for it or for all or
any material part of its property; or any receiver, trustee, custodian,
conservator, liquidator, rehabilitator or similar officer is appointed without
the application or consent of such Person and the appointment continues
undischarged or unstayed for sixty (60) calendar days; or any proceeding under
any Debtor Relief Law relating to any such Person or to all or any material
part of its property is instituted without the consent of such Person and
continues undismissed or unstayed for sixty calendar days, or an order for
relief is entered in any such proceeding; or

 

(g)                                 Inability
to Pay Debts; Attachment.  (i) Any
Credit Party becomes unable or admits in writing its inability or fails
generally to pay its debts as they become due, or (ii) any writ or warrant
of attachment or execution or similar process is issued or levied against all
or any material part of the property of any such Person and is not released,
vacated or fully bonded within thirty (30) days after its issue or levy; or

 

(h)                                 Judgments.  There is entered against any Credit Party a
final judgment or order for the payment of money in an aggregate amount
exceeding $100 million (to the extent not covered by

 

89

 

independent third-party insurance as to which the insurer does not
dispute coverage), and there is a period of 30 consecutive days during which a
stay of enforcement of such judgment, by reason of a pending appeal or
otherwise, is not in effect; or

 

(i)                                     ERISA.  (i) An ERISA Event occurs with respect
to a Pension Plan or Multiemployer Plan that has resulted or would reasonably
be expected to result in liability of a Credit Party under Title IV of
ERISA to the Pension Plan, Multiemployer Plan or the PBGC in an aggregate
amount in excess of $100 million, or (ii) a Credit Party fails to pay when
due, after the expiration of any applicable grace period, any installment
payment with respect to its withdrawal liability under Section 4201 of
ERISA under a Multiemployer Plan in an aggregate amount in excess of $100 million;
or

 

(j)                                     Invalidity
of Credit Documents.  Any Credit
Document, at any time after its execution and delivery 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 any Credit Party contests
in any manner the validity or enforceability of any Credit Document; or any
Credit Party denies that it has any or further liability or obligation under
any Credit Document, or purports to revoke, terminate or rescind any Credit
Document;

 

9.02                        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 Cash Collateralize the L/C Obligations (in an amount equal to
the then Outstanding Amount thereof); and

 

(d)                                 exercise
any rights provided in Section 9.04
in respect of Satellites;

 

(e)                                  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 Sections
9.01(f), 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 Cash Collateralize the L/C Obligations as aforesaid shall
automatically become effective, in each case without further act of the
Administrative Agent or any Lender.

 

9.03                        Application
of Funds.

 

After the exercise of
remedies provided for in Section 9.02 (or after the Loans have
automatically become immediately due and payable and the L/C Obligations have
automatically been required to be

 

90

 

Cash Collateralized as set forth in the proviso to Section 9.02),
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 all reasonable fees, expenses and
disbursements of any law firm or other counsel and amounts payable under Article III)
payable to the Administrative Agent and the Collateral Agent, in each case in
its capacity as such;

 

Second,
to payment of that portion of the Obligations constituting fees, indemnities
and other amounts (other than principal, interest, commitment fees and Letter
of Credit Fees) payable to the Lenders (including all reasonable fees, expenses
and disbursements of any law firm or other counsel and amounts payable under Article III),
ratably among the Lenders in proportion to the respective amounts described in
this clause Second payable to them;

 

Third,
to payment of that portion of the Obligations constituting accrued and unpaid commitment
fees, Letter of Credit Fees and interest on the Loans, L/C Borrowings and other
Obligations, ratably among the Lenders, the Swingline Lender and the L/C Issuer
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 any
Credit Party and any Lender, or any Affiliate of a Lender, to the extent such
Swap Contract is permitted hereunder, (c) payments of amounts due under
any Treasury Management Agreement between any Credit Party and any Lender, or
any Affiliate of a Lender and (d) the Administrative Agent for the account
of the L/C Issuer, to Cash Collateralize 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 to Cash Collateralize 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.

 

9.04                        Access
and Command Codes.

 

(a)                                  At
any time when an Event of Default has occurred and is continuing, the Borrower
will, and will cause each of its Subsidiaries to, at the request of the
Administrative Agent:

 

(i)                                     use
commercially reasonable efforts to obtain promptly from each provider (other
than the Borrower) of tracking, telemetry, control and monitoring services for
any Satellite, consents and agreements with the Collateral Agent to:

 

(A)                              deliver
expeditiously to the Collateral Agent, subject to having obtained any consent
or approval of, or registration or filing with, any Governmental Authority for
such delivery, all access codes, command codes and command encryption necessary
to establish access to and perform tracking, telemetry, control and monitoring
of any such Satellite, including activation and control of any spacecraft
subsystems and payload components and the transponders thereon;

 

91

 

(B)                                take
commercially reasonable steps necessary, to obtain any consent or approval of,
or registration or filing with, any Governmental Authority required to effect
any transfer of operational control over any such Satellite and related
technical data (including any license approving the export or re-export of such
Satellite to any Person or Persons as designated by the Administrative Agent);
and

 

(C)                                deliver
to the Collateral Agent written evidence of the issuance of any such consent,
approval, registration or filing once such consent, approval, registration or
filing has been obtained;

 

(ii)                                  if,
after having used its commercially reasonable efforts to obtain the consents
and agreements referred to in clause (i) above, any such consents
or agreements shall not have been so obtained, instruct each such provider of
tracking, telemetry, control and monitoring services (and each manufacturer or
primary contractor in respect of Satellites that have yet to be launched, to
the extent that the Borrower or any of its Subsidiaries does not have in its
possession all items referred to in clause (iii) below) to
cooperate in providing the access codes, command codes and command encryption
referred to in said clause (i), in each case subject to having obtained
any consent or approval of, or registration or filing with, any Governmental Authority
for such delivery; and

 

(iii)                               deliver
to the Collateral Agent, subject to having obtained any requisite consent or
approval of, or registration or filing with, any Governmental Authority for
such delivery, all access codes, command codes and command encryption
necessary, in the sole judgment of the Administrative Agent, to establish
access to and perform tracking, telemetry, control and monitoring of any
Satellite, including activation and control of any spacecraft subsystems and
payload components and the transponders thereon and any changes to or
modifications of such codes and encryption.

 

(b)                                 At
any time when an Event of Default has occurred and is continuing, the Borrower
and its Subsidiaries will, and will use its commercially reasonable efforts to
cause each provider (other than the Borrower or its Subsidiaries) of tracking,
telemetry, control and monitoring services for any Satellite to agree to not
change any access codes, command codes or command encryption necessary to
establish access to and perform tracking, telemetry, control and monitoring of
each Satellite at any time, without promptly furnishing to the Collateral Agent
the new access codes, command codes and command encryption necessary to
establish access to and perform tracking, telemetry, control and monitoring of
such Satellite, once such access codes, command codes and command encryption
have been delivered to the Collateral Agent pursuant to this Section.

 

9.05                        Certain
Cure Rights.

 

Notwithstanding anything
to the contrary contained in Section 9.01, in the event that the
Borrower fails to comply with any financial covenant contained in Section 8.10,
the Borrower shall have the right, no later than 10 Business Days after the
delivery of a Notice of Intent to Cure, to receive capital contributions in an
aggregate amount not in excess of the amount necessary to cure the relevant
failure to comply with such financial covenant (collectively, the “Cure
Right”), and upon the receipt by the Borrower of such cash or capital
contribution (the “Cure Amount”), such financial covenant shall be
recalculated giving effect to the following pro forma adjustments:

 

92

 

(a)                                  Consolidated
EBITDA shall be increased, in accordance with the definition thereof, solely
for the purpose of measuring such financial covenant (and not, for any other
purpose, including, for instance, determining Restricted Payments under Section 8.06)
and not for any other purpose under this Credit Agreement, by an amount equal
to the Cure Amount;

 

(b)                                 if,
after giving effect to the foregoing recalculations, the Borrower shall then be
in compliance with the requirements of such financial covenant, the Borrower
shall be deemed to have satisfied the requirements of such financial covenant
as of the relevant date of determination with the same effect as though there
had been no failure to comply therewith at such date, and the applicable breach
or default of such financial covenant which had occurred shall be deemed cured
for all purposes of this Credit Agreement and the other Credit Documents; and

 

(c)                                  to
the extent a fiscal quarter ended for which such financial covenant is
initially recalculated as a result of a Cure Right is included in the
calculation of a financial covenant in a subsequent fiscal period, the Cure
Amount shall be included in the amount of Consolidated EBITDA for such initial
fiscal period;

 

provided
that the Cure Rights hereunder may not be exercised for more than two (2) consecutive
fiscal quarters nor a total more than six (6) fiscal quarters from the
Closing Date.

 

ARTICLE X

 

ADMINISTRATIVE AGENT AND COLLATERAL AGENT

 

10.01                 Appointment
and Authorization of Administrative Agent and Collateral Agent.

 

(a)                                  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 Administrative Agent, the Lenders and the L/C
Issuer, and neither the Borrower nor any other Credit Party shall have rights
as a third party beneficiary of any of such provisions.

 

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

 

93

 

immunities (i) provided to the Administrative Agent under the
Credit Documents with respect to any acts taken or omissions suffered by the
Collateral Agent in connection with any Collateral or the Collateral Documents
as fully as if the term “Administrative Agent” as used in such Credit Documents
included the Collateral Agent with respect to such acts or omissions, and (ii) as
additionally provided herein or in the Collateral Documents with respect to the
Collateral Agent.

 

(c)                                  The
L/C Issuer shall act on behalf of the Lenders with respect to any Letters of
Credit issued by it and the documents associated therewith, and the L/C Issuer
shall have all of the benefits and immunities (i) provided to the
Administrative Agent in this Article X with respect to any acts
taken or omissions suffered by the L/C Issuer in connection with Letters of
Credit issued by it or proposed to be issued by it and Issuer Documents pertaining
to such Letters of Credit as fully as if the term “Administrative Agent” as
used in this Article X included the L/C Issuer with respect to such
acts or omissions, and (ii) as additionally provided herein with respect
to the L/C Issuer.

 

10.02                 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.

 

10.03                 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 11.01 and 9.02) or (ii) in the absence
of its own gross negligence or

 

94

 

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

 

10.04                 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.

 

10.05                 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.

 

10.06                 Resignation
of the Administrative Agent.

 

The Administrative Agent
may at any time give notice of its resignation to the Lenders, the L/C Issuer
and the Borrower.  Upon receipt of any
such notice of resignation, the Required Lenders shall have the right, with the
consent of the Borrower (provided, no consent shall be required if an Event of
Default has occurred and is continuing), 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 30 days after the retiring
Administrative Agent gives notice of its resignation, then the retiring

 

95

 

Administrative Agent may
on behalf of the Lenders and the L/C Issuer, with the consent of the Borrower
(provided, no consent shall be required if an Event of Default has occurred and
is continuing), 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 (except that in the case of any collateral security held
by the Administrative Agent on behalf of the Lenders or the L/C Issuer under
any of the Credit Documents, the retiring Administrative Agent shall continue
to hold such collateral security until such time as a successor Administrative
Agent is appointed) and (2) all payments, communications and determinations
provided to be made by, to or through the Administrative Agent shall instead be
made by 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 11.04
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 arrangements 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.

 

10.07                 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.

 

10.08                 No Other
Duties.

 

Anything
herein to the contrary notwithstanding, none of the “Syndication Agent”, “Co-Documentation
Agents”, “Co-Lead Arrangers” and “Co-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

 

96

 

Documents, except in its
capacity, as applicable, as the Administrative Agent, a Lender or the L/C
Issuer hereunder.

 

10.09                 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 any Credit Party, 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:

 

(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 (other than
obligations under Swap Contracts or Treasury Management Agreements to which the
Administrative Agent is not a party) 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 2.09 and 11.04) 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 11.04.

 

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.

 

10.10                 Collateral and Guaranty Matters.

 

The
Lenders and the L/C Issuer irrevocably authorize the Administrative Agent and
the Collateral Agent, at its option and in its discretion:

 

(a)                                  to release any
Guarantor from its obligations under the Guaranty if such Person ceases to be a
Subsidiary as a result of a transaction permitted hereunder;

 

(b)                                 to release any Lien on
any property granted to or held by the Collateral Agent under any Credit
Document (i) upon termination of the Aggregate Commitments and payment in full
of all Obligations (other than contingent indemnification obligations) and the
expiration or termination of all Letters of Credit, (ii) that is sold or to be
sold as part of or in connection with any sale permitted hereunder or under any
other Credit Document, or (iii) subject to Section 11.01, if
approved, authorized or ratified in writing by the Required Lenders; and

 

97

 

(c)                                  to subordinate any
Lien on any property granted to or held by the Collateral Agent under any
Credit Document to the holder of any Lien on such property that is permitted by
Section 8.01(i).

 

Upon
request by the Administrative Agent or the Collateral Agent at any time, the
Required Lenders will confirm in writing the authority of the Collateral Agent
to release or subordinate its interest in particular property and of the
Administrative Agent to release any Guarantor from its obligations hereunder
pursuant to this Section 10.10.

 

ARTICLE XI

MISCELLANEOUS

 

11.01                 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 or the applicable Credit Party, as the case
may be, 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 9.02), 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 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,

 

(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
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,

 

98

 

(v)                                 change
any provision of this Section 11.01(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,

 

(vi)                              release
all or substantially all of the Collateral (other than as provided herein or as
appropriate in connection with transactions permitted hereunder), or

 

(vii)                           release
all or substantially all of the Guarantors without the written consent of each
Lender;

 

(b)                                 unless also signed by
the Required Revolving Lenders, no such amendment, waiver or consent shall:

 

(i)                                     waive
any Default or Event of Default for purposes of Section 5.02,

 

(ii)                                  amend
or waive the manner of application of any mandatory prepayment to the Revolving
Obligations under Section 2.06(c), or

 

(iii)                               amend
or waive the provisions of Section 5.02 (Conditions to all Credit
Extensions), this Section 11.01(b) or the definition of “Required
Revolving Lenders”;

 

(c)                                  unless also signed by
the Required Tranche A Term Lenders, no such amendment, waiver or consent
shall:

 

(i)                                     amend
or waive the manner of application of any mandatory prepayment to the
Tranche A Term Loan under Section 2.06(c), or

 

(ii)                                  amend
or waive the provisions of this Section 11.01(c) or the definition
of “Required Tranche A Term Lenders”;

 

(d)                                 unless also signed by
the Required Tranche B Term Lenders, no such amendment, waiver or consent
shall:

 

(i)                                     amend
or waive the manner of application of any mandatory prepayment to the
Tranche B Term Loan under Section 2.06(c), or

 

(ii)                                  amend
or waive the provisions of this Section 11.01(d) or the definition
of “Required Tranche B Term Lenders”;

 

(e)                                  unless also signed by the Required Tranche C
Term Lenders, no such amendment, waiver or consent shall:

 

(i)                                     amend or waive the manner of application of
any mandatory prepayment to the Tranche C Term Loan under Section 2.06(c),
or

 

(ii)                                  amend or waive the provisions of this Section 11.01(e)
or the definition of “Required Tranche C Term Lenders”;

 

99

 

(f)                                    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 Issuer Document relating to any Letter of Credit issued or to be issued
by it;

 

(g)                                 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;

 

(h)                                 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; and

 

(i)                                     unless also
consented to in writing by the Collateral Agent, no such amendment, waiver or
consent shall affect the rights or duties of the Collateral 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 a Credit Party to use cash collateral in the context of a
bankruptcy or insolvency proceeding, (iv) Section 11.06(h) may not
be amended, waived or otherwise modified without the consent of each Granting
Lender all or any part of whose Loans are being funded by an SPC at the time of
such amendment, waiver or other modification, and (v) the Fee Letter may be
amended, or rights or privileges thereunder waived, in a writing executed only
by the parties thereto.

 

11.02                 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 or, with confirmation of receipt, electronic mail 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 11.02; 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).

 

100

 

(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)                                  THE PLATFORM IS PROVIDED
“AS IS” AND “AS AVAILABLE”.  THE AGENT
PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE
CREDIT PARTY MATERIALS OR THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM
LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE BORROWER MATERIALS.  NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR
STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR
PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR
OTHER CODE DEFECTS, IS MADE BY ANY AGENT PARTY IN CONNECTION WITH THE CREDIT
PARTY MATERIALS OR THE PLATFORM.  In no
event shall the Administrative Agent or any of its Related Parties
(collectively, the “Agent Parties”) have any liability to any Credit
Party, any Lender, the L/C Issuer or any other Person for losses, claims,
damages, liabilities or expenses of any kind (whether in tort, contract or
otherwise) arising out of any Credit Party’s or the Administrative Agent’s
transmission of Credit Party Materials through the Internet, except to the
extent that such losses, claims, damages, liabilities or expenses are
determined by a court of competent jurisdiction by a final and nonappealable
judgment to have resulted from the gross negligence or willful misconduct of
such Agent Party; provided, however, that in no event shall any
Agent Party have any liability to any Credit Party, any Lender, the L/C Issuer
or any other Person for indirect, special, incidental, consequential or
punitive damages (as opposed to direct or actual damages).

 

(d)                                 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.  In addition, each
Lender agrees to notify the Administrative Agent from time to time to ensure
that the Administrative Agent has on record (i) an effective address, contact
name, telephone number, telecopier number and electronic mail address to which
notices and other communications may be sent and (ii) accurate wire
instructions for such Lender.

 

(e)                                  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

 

101

 

Loan Notices and
Swingline 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.

 

11.03                 No Waiver; Cumulative Remedies.

 

No
failure by any Lender, the L/C Issuer, Swingline 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.

 

11.04                 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), and all fees and time charges for attorneys who may be employees
of 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 any settlement costs and fees, charges and
disbursements of any counsel for any Indemnitee), and shall indemnify and hold
harmless each Indemnitee from all fees and time charges and disbursements for
attorneys who may be employees of any Indemnitee, incurred by any Indemnitee or
asserted against any Indemnitee by any third party or by the Borrower or any
other Credit Party 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, or, in the case of the Administrative Agent (and any sub-agent
thereof) and its Related Parties only, the administration of this Credit
Agreement and the other Credit Documents,

 

102

 

(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 documents presented in connection with such demand do
not strictly comply with the terms of such Letter of Credit), (iii) any
Environmental Liability related to the Borrower or any of its Subsidiaries, or
(iv) any claim, litigation, investigation or proceeding relating to any of
the foregoing, whether based on contract, tort or any other theory, whether
brought by a third party or by the Borrower or any other Credit Party, and
regardless of whether any Indemnitee is a party thereto, in all cases, whether
or not caused by or arising, in whole or in part, out of comparative,
contributory or sole negligence of the Indemnitee; provided that such
indemnity shall not, as to any Indemnitee, be available to the extent that such
losses, claims, damages, liabilities or related expenses (x) are
determined by a court of competent jurisdiction by final and nonappealable
judgment to have resulted from the gross negligence or willful misconduct of
such Indemnitee, (y) result from a claim brought by the Borrower or any
other Credit Party against an Indemnitee for breach in bad faith of such
Indemnitee’s obligations hereunder or under any other Credit Document, if the
Borrower or such Credit Party has obtained a final and nonappealable judgment
in its favor on such claim as determined by a court of competent jurisdiction
or (z) result from a violation of Environmental Laws or the presence or release
of Hazardous Materials that first occurs at a Mortgaged Property after any
Indemnitee or its successor or assign takes title to such Mortgaged Property by
way of foreclosure, deed-in-lieu of foreclosure or similar transfer.  Notwithstanding the foregoing, this Section 11.04(b)
shall not apply to matters governed by Section 3.01.

 

(c)                                  Reimbursement by
Lenders.  To the extent that the
Borrower for any reason fails to indefeasibly pay any amount required under subsections (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 Aggregate Commitment Percentage or, in the case of L/C
Obligations, Revolving Commitment Percentage (determined
in each case 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(d).

 

(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 Commitments and the
repayment, satisfaction or discharge of all the other Obligations.

 

103

 

11.05                 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
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 on 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 Federal Funds
Rate from time to time in effect.  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.

 

11.06                 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 neither the Borrower nor any other Credit Party may assign or
otherwise transfer any of its rights or obligations hereunder without the prior
written consent of the Administrative Agent and each Lender (other than in
connection with a transaction permitted by Section 8.04) 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 (1) 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 (A) in the case of
Revolving Commitments and Revolving Loans, $5 million and (B) in the case each
of the Term Loans, $1 million, unless, in
each case, each of the Administrative Agent and, so long as no Event of Default
has occurred and is continuing, the

 

104

 

Borrower
otherwise consents (each such consent not to be unreasonably withheld or
delayed); provided, however, that concurrent assignments to
members of an Assignee Group and concurrent assignments from members of an
Assignee Group to a single Eligible Assignee (or to an Eligible Assignee and
members of its Assignee Group) will be treated as a single assignment for
purposes of determining whether such minimum amount has been met;

 

(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 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) a Revolving Commitment and Revolving Loans 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, so long
as no Event of Default has occurred and is continuing, the Borrower (each such
approval not to be unreasonably withheld or delayed); provided that the
Borrower’s approval shall not be required if the proposed assignee is a Lender,
an Affiliate of a Lender or an Approved Fund and (B) a Term Loan must be
approved by the Administrative Agent and, so long as no Event of Default has
occurred and is continuing, the Borrower (each such approval not to be
unreasonably withheld or delayed); provided that no approval shall be
required if the proposed assignee is a Lender, an Affiliate of a Lender or an
Approved Fund; 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 in
the amount, if any, required as set forth in Schedule 11.06, and
the Eligible Assignee, if it shall not be a Lender, shall (A) deliver to the
Administrative Agent an Administrative Questionnaire and (B) deliver to the
Borrower and the Administrative Agent the forms required to be delivered
pursuant to Section 3.01(e).

 

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 11.04 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 and the
interest thereon owing and paid to, each Lender pursuant to the terms hereof
from time to time (the “Register”). 
The entries in the Register shall be conclusive absent manifest error,
and the Borrower, the

 

105

 

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 each of 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 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 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 Section 11.01(a) 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 11.08 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, unless the sale of the participation to such Participant is made
with the Borrower’s prior written consent. 
A Participant shall not be entitled to the benefits of Section 3.01
unless (i) in the case of a Participant that would be a Foreign Lender if it
was a Lender, the Borrower is notified of the participation sold to such
Participant and (ii) 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.

 

106

 

(h)                                 Special Purpose
Funding Vehicles.  Notwithstanding anything
to the contrary contained herein, any Lender (a “Granting Lender”) may
grant to a special purpose funding vehicle identified as such in writing from
time to time by the Granting Lender to the Administrative Agent and the
Borrower (an “SPC”) the option to provide all or any part of any Loan
that such Granting Lender would otherwise be obligated to make pursuant to this
Credit Agreement; provided that (i) nothing herein shall constitute a
commitment by any SPC to fund any Loan, and (ii) if an SPC elects not to
exercise such option or otherwise fails to make all or any part of such Loan,
the Granting Lender shall be obligated to make such Loan pursuant to the terms
hereof or, if it fails to do so, to make such payment to the Administrative
Agent as is required under Section 2.11(b)(i).  Each party hereto hereby agrees that (i)
neither the grant to any SPC nor the exercise by any SPC of such option shall
increase the costs or expenses or otherwise increase or change the obligations
of the Borrower under this Credit Agreement (including its obligations under Section 3.04),
(ii) no SPC shall be liable for any indemnity or similar payment obligation
under this Credit Agreement for which a Lender would be liable, and (iii) the
Granting Lender shall for all purposes, including the approval of any
amendment, waiver or other modification of any provision of any Credit
Document, remain the lender of record hereunder.  The making of a Loan by an SPC hereunder
shall utilize the Commitment of the Granting Lender to the same extent, and as
if, such Loan were made by such Granting Lender.  In furtherance of the foregoing, each party
hereto hereby agrees (which agreement shall survive the termination of this
Credit Agreement) that, prior to the date that is one (1) year and one (1) day
after the payment in full of all outstanding commercial paper or other senior
debt of any SPC, it will not institute against, or join any other Person in
instituting against, such SPC any bankruptcy, reorganization, arrangement,
insolvency, or liquidation proceeding under the laws of the United States or
any State thereof.  Notwithstanding
anything to the contrary contained herein, any SPC may (i) with notice to, but
without prior consent of the Borrower and the Administrative Agent and with the
payment of a processing fee in the amount of $2,500, assign all or any portion
of its right to receive payment with respect to any Loan to the Granting Lender
and (ii) disclose on a confidential basis any non-public information relating
to its funding of Loans to any rating agency, commercial paper dealer or
provider of any surety or Guarantee or credit or liquidity enhancement to such
SPC.

 

(i)                                     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, powers, privileges and duties 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 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 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). 
Upon the appointment of a successor L/C Issuer and/or Swingline Lender,
(a) such successor shall succeed to and become vested with all of the rights,
powers, privileges and duties of the retiring L/C Issuer or Swingline Lender,
as the case may be, and (b) 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 arrangements satisfactory to Bank of
America to effectively assume the obligations of Bank of America with respect
to such Letters of Credit.

 

107

 

11.07                 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 the 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 provisions substantially the same as those 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, (ii)
any actual or prospective counterparty (or its advisors) to any swap, derivative
or securitization transaction relating to the Borrower and its obligations or
any direct, indirect, actual or prospective assignee, participant or
counterparty (and its advisors) to any swap, derivative or securitization
transaction, (iii) to an investor or prospective investor in an Approved Fund
that also agrees that Information shall be used solely for the purpose of
evaluating an investment in such Approved Fund, (iv) to a trustee, collateral
manager, servicer, backup servicer, noteholder or secured party in an Approved
Fund in connection with the administration, servicing and reporting on the
assets serving as collateral for an Approved Fund or (v) to a nationally
recognized rating agency that requires access to information regarding the
Credit Parties, the Loans and Credit Documents in connection with ratings
issued with respect to an Approved Fund, (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.  In the case of information received from the
Borrower or any Subsidiary after the date hereof, such information shall be
treated as confidential unless such information is marked or otherwise
indicated as “Public” pursuant to Section 7.02.  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.

 

Each
of the Administrative Agent, the Lenders and the L/C Issuer acknowledges that
(a) the Information may include material non-public information concerning the
Borrower or a Subsidiary, as the case may be, (b) it has developed compliance
procedures regarding the use of material non-public information and (c) it will
handle such material non-public information in accordance with applicable Law,
including federal and state securities Laws.

 

11.08                 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

 

108

 

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 or any other Credit Party against any and all of the obligations of
such Borrower or such Credit Party 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 or such Credit Party 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 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.

 

11.09                 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.

 

11.10                 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 5.01,
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.

 

11.11                 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.

 

109

 

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

 

11.13                 Replacement of Lenders.

 

(a)                                  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 or if any other circumstance exists
hereunder that gives the Borrower the right to replace a Lender as a party
hereto, 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 11.06), 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:

 

(i)                                     the
Borrower shall have paid to the Administrative Agent the assignment fee
specified in Section 11.06(b);

 

(ii)                                  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);

 

(iii)                               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; 

 

(iv)                              such
assignment does not conflict with applicable Laws; and

 

(v)                                 such
assignment is recorded in the Register.

 

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.

 

(b)                                 If, in connection with any proposed
amendment, change, waiver, discharge or termination of any of the provisions of
this Credit Agreement or any other Credit Document (a “Proposed Change”)
as contemplated by Section 11.01, the consent of the Required
Lenders is obtained but the consent of one or more of such other Lenders whose
consent is required is not obtained (any such Lender whose consent is not
obtained as described in this clause (b) being referred to as a “Non-Consenting
Lender”), then, at

 

110

 

the
Borrower’s request, any Eligible Assignee reasonably acceptable to the
Administrative Agent shall have the right to purchase from such Non-Consenting
Lender, and such Non-Consenting Lender agrees that it shall, upon the
Administrative Agent’s request, sell and assign to such Eligible Assignee, all
of the Commitments and Loans of such Non-Consenting Lender for an amount equal
to the principal balance of all Loans held by the Non-Consenting Lender and all
accrued and unpaid interest and fees with respect thereto and all other amounts
payable to it hereunder through the date of sale and payment by the Borrower to
the Administrative Agent of the assignment fee under Section 11.06(b);
provided, however, that such purchase and sale shall not be
effective until (x) the Administrative Agent shall have received from such
Eligible Assignee an agreement in form and substance satisfactory to the
Administrative Agent and the Borrower whereby such Eligible Assignee shall
agree to be bound by the terms hereof and (y) such Non-Consenting Lender shall
have received payments of all Loans held by it and all accrued and unpaid
interest and fees with respect thereto and all other amounts payable to it
hereunder through the date of the sale. 
Each Lender agrees that, if it becomes a Non-Consenting Lender, it shall
execute and deliver to the Administrative Agent an Assignment and Assumption to
evidence such sale and purchase and shall deliver to the Administrative Agent
any Note (if the assigning Lender’s Loans are evidenced by a Note) subject to
such Assignment and Assumption; provided, however, that the failure of any
Non-Consenting Lender to execute an Assignment and Assumption shall not render
such sale and purchase (and the corresponding assignment) invalid.

 

11.14                 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 AND EACH
OTHER CREDIT PARTY IRREVOCABLY AND UNCONDITIONALLY SUBMIT, 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.  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 ANY OTHER CREDIT
PARTY OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.

 

(c)                                  WAIVER OF VENUE.  THE BORROWER AND EACH OTHER CREDIT PARTY 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

 

111

 

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 11.02.  NOTHING IN THIS CREDIT AGREEMENT WILL AFFECT
THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY
APPLICABLE LAW.

 

11.15                 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.

 

11.16                 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.

 

11.17                 Designation as Senior Debt.

 

All
Obligations shall be “Designated Senior Indebtedness”(or such similar defined
term) for purposes of all documentation governing Subordinated Debt.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

112

 

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

 

 

	
  BORROWER:

  	
  DIRECTV HOLDINGS LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
  GUARANTORS:

  	
  DIRECTV FINANCING CO., INC.,

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DIRECTV ENTERPRISES, LLC,

  
	
   

  	
  a Delaware limited liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DIRECTV CUSTOMER SERVICES, INC.,

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DIRECTV HOME SERVICES, LLC,

  
	
   

  	
  a Delaware limited liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DIRECTV, INC.,

  
	
   

  	
  a California corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

DIRECTV
HOLDINGS LLC

CREDIT
AGREEMENT

 

 

	
   

  	
  DIRECTV MERCHANDISING, INC.,

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DIRECTV OPERATIONS, LLC,

  
	
   

  	
  a California limited liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  USSB II, INC.,

  
	
   

  	
  a Minnesota corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DIRECTV PROGRAMMING HOLDINGS I, INC.,

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DIRECTV PROGRAMMING HOLDINGS II, INC.,

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  LABC PRODUCTIONS, INC.,

  
	
   

  	
  a California corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

	
  ADMINISTRATIVE
  AGENT:

  	
  BANK OF
  AMERICA, N.A.,

  
	
   

  	
  as
  Administrative Agent and Collateral Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

	
  LENDERS:

  	
  BANK OF
  AMERICA, N.A.,

  
	
   

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

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

	
   

  	
  JPMORGAN
  CHASE BANK, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

	
   

  	
  [OTHER
  LENDERS ]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

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