Document:

EX-4.1

 

CONFORMED COPY

Exhibit 4.1

FIVE-YEAR CREDIT AGREEMENT

dated as of

September 1, 2004

among

THE DUN & BRADSTREET CORPORATION

The Borrowing Subsidiaries Party Hereto

The Lenders Party Hereto

JPMORGAN CHASE BANK,

as Administrative Agent,

BANK OF TOKYO-MITSUBISHI TRUST COMPANY

CITICORP USA, INC.,

as Syndication Agents,

and

THE BANK OF NEW YORK

SUNTRUST BANK,

as Documentation Agents

$300,000,000 REVOLVING CREDIT AND COMPETITIVE

ADVANCE FACILITY

J.P. MORGAN SECURITIES INC.

Sole Bookrunner and Sole Lead Arranger

 

TABLE OF CONTENTS

	 	 	 
	 	 	Page

	ARTICLE 1
	 	 
	Definitions
	 	 
	Section 1.01. Defined Terms
	 	1
	Section 1.02. Classification of Loans and Borrowings
	 	22
	Section 1.03. Terms Generally
	 	22
	Section 1.04. Accounting Terms; GAAP
	 	22
	Section 1.05. Exchange Rates
	 	23
	ARTICLE 2
	 	 
	The Credits
	 	 
	Section 2.01. Commitments
	 	23
	Section 2.02. Loans and Borrowings
	 	24
	Section 2.03. Requests for Revolving Borrowings
	 	25
	Section 2.04. Competitive Bid Procedure
	 	26
	Section 2.05. Swingline Loans
	 	30
	Section 2.06. Funding of Borrowings
	 	31
	Section 2.07. Interest Elections
	 	32
	Section 2.08. Termination, Reduction and Increase of Commitments
	 	34
	Section 2.09. Repayment of Loans; Evidence of Debt
	 	35
	Section 2.10. Prepayment of Loans
	 	36
	Section 2.11. Fees
	 	38
	Section 2.12. Interest
	 	39
	Section 2.13. Alternate Rate of Interest
	 	39
	Section 2.14. Increased Costs
	 	41
	Section 2.15. Break Funding Payments
	 	42
	Section 2.16. Taxes
	 	43
	Section 2.17. Payments Generally; Pro Rata Treatment; Sharing of Set-offs
	 	45
	Section 2.18. Mitigation Obligations; Replacement of Lenders
	 	47
	Section 2.19. Borrowing Subsidiaries
	 	48
	ARTICLE 3
	 	 
	Representations And Warranties
	 	 
	Section 3.01. Organization; Powers
	 	48
	Section 3.02. Authorization; Enforceability
	 	49
	Section 3.03. Governmental Approvals; No Conflicts
	 	49
	Section 3.04. Financial Condition; No Material Adverse Change
	 	49
	Section 3.05. Properties
	 	50
	Section 3.06. Litigation and Environmental Matters
	 	50

i

 

	 	 	 
	 	 	Page

	Section 3.07. Compliance with Laws and Agreements
	 	51
	Section 3.08. Investment and Holding Company Status
	 	51
	Section 3.09. Taxes
	 	51
	Section 3.10. ERISA
	 	51
	Section 3.11. Disclosure
	 	51
	Section 3.12. Subsidiaries
	 	52
	Section 3.13. Use of Proceeds
	 	52
	ARTICLE 4
	 	 
	Conditions
	 	 
	Section 4.01. Effective Date
	 	52
	Section 4.02. Each Credit Event
	 	54
	Section 4.03. Each Borrowing Subsidiary Credit Event
	 	54
	ARTICLE 5
	 	 
	Affirmative Covenants
	 	 
	Section 5.01. Financial Statements and Other Information
	 	55
	Section 5.02. Notices of Material Events
	 	56
	Section 5.03. Existence; Conduct of Business
	 	57
	Section 5.04. Payment of Obligations
	 	57
	Section 5.05. Maintenance of Properties; Insurance
	 	57
	Section 5.06. Books and Records; Inspection Rights
	 	58
	Section 5.07. Compliance with Laws
	 	58
	Section 5.08. Use of Proceeds
	 	58
	ARTICLE 6
	 	 
	Negative Covenants
	 	 
	Section 6.01. Liens
	 	59
	Section 6.02. Fundamental Changes
	 	60
	Section 6.03. Transactions with Affiliates
	 	61
	Section 6.04. Sale and Lease-Back Transactions
	 	61
	Section 6.05. Subsidiary Indebtedness
	 	62
	Section 6.06. Total Debt to EBITDA Ratio
	 	62
	Section 6.07. Interest Coverage Ratio
	 	62

ii

 

	 	 	 
	 	 	Page

	ARTICLE 7
	 	 
	Events Of Default
	 	 
	ARTICLE 8
	 	 
	The Administrative Agent
	 	 
	ARTICLE 9
	 	 
	Guarantee
	 	 
	ARTICLE 10
	 	 
	Miscellaneous
	 	 
	Section 10.01. Notices
	 	70
	Section 10.02. Waivers; Amendments
	 	71
	Section 10.03. Expenses; Indemnity; Damage Waiver
	 	72
	Section 10.04. Successors and Assigns
	 	73
	Section 10.05. Survival
	 	77
	Section 10.06. Counterparts; Integration; Effectiveness
	 	78
	Section 10.07. Severability
	 	78
	Section 10.08. Right of Setoff
	 	78
	Section 10.09. Governing Law; Jurisdiction; Consent to Service of Process
	 	79
	Section 10.10. Waiver of Jury Trial
	 	79
	Section 10.11. Headings
	 	80
	Section 10.12. Confidentiality
	 	80
	Section 10.13. Interest Rate Limitation
	 	81
	Section 10.14. Conversion of Currencies
	 	81
	Section 10.15. European Economic and Monetary Union
	 	81
	Section 10.16. USA Patriot Act
	 	83

SCHEDULES:

	 	 	 	 	 
	Schedule 2.01(a)

	 	—
	 	Lenders and Facility Commitments
	Schedule 2.01(b)

	 	—
	 	Designated Currency Lenders and Designated Currency
Commitments
	Schedule 2.01(c)

	 	—
	 	Yen Lenders and Yen Commitments
	Schedule 2.17

	 	—
	 	Payments on Multicurrency Loans
	Schedule 3.12

	 	—
	 	Subsidiaries
	Schedule 6.01

	 	—
	 	Existing Liens

iii

 

EXHIBITS:

	 	 	 	 	 
	Exhibit A

	 	—
	 	Form of Assignment and Assumption
	Exhibit B-1

	 	—
	 	Form of Opinion of Company’s Counsel
	Exhibit B-2

	 	—
	 	Form of Opinion of Hunton & Williams LLP
	Exhibit C

	 	—
	 	Form of Opinion of Borrowing Subsidiary’s Counsel
	Exhibit D

	 	—
	 	Form of Borrowing Subsidiary Agreement
	Exhibit E

	 	—
	 	Form of Borrowing Subsidiary Termination
	Exhibit F

	 	—
	 	Form of Statement Relating to Tax Status
	Exhibit G

	 	—
	 	Form of Assumption Agreement

iv

 

     CREDIT AGREEMENT dated as of September 1, 2004, among THE DUN & BRADSTREET
CORPORATION, the BORROWING SUBSIDIARIES party hereto, the LENDERS party hereto,
JPMORGAN CHASE BANK, as Administrative Agent, BANK OF TOKYO-MITSUBISHI TRUST
COMPANY and CITICORP USA, INC., as Syndication Agents, and THE BANK OF NEW YORK
and SUNTRUST BANK, as Documentation Agents.

     The parties hereto agree as follows:

ARTICLE 1

Definitions

     Section 1.01. Defined
Terms. As used in this Agreement, the following
terms have the meanings specified below:

     “ABR”, when used in reference to any Loan or Borrowing, refers to whether
such Loan, or the Loans comprising such Borrowing, are bearing interest at a
rate determined by reference to the Alternate Base Rate.

     “Acceptable Insurer” means (i) Lloyd’s of London, so long as it is rated
at least 3 crowns by S&P, (ii) an insurance company having an A.M. Best rating
of “A-” or better and being in a financial size category of IX or larger (as
such category is defined on the date hereof) or (iii) an insurance company
otherwise reasonably acceptable to the Administrative Agent.

     “Administrative Agent” means JPMorgan Chase Bank, in its capacity as
administrative agent for the Lenders hereunder.

     “Administrative Questionnaire” means an Administrative Questionnaire in a
form supplied by the Administrative Agent.

     “Affiliate” means, with respect to a specified 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. No SPC of
any Lender shall be an Affiliate of such Lender.

     “Aggregate Utilization Percentage” means, on any date, the percentage
equal to a fraction, the numerator of which is the aggregate principal amount
of the Revolving Credit Exposures of all Lenders and the denominator of which
is the aggregate amount of Facility Commitments on such date of determination;
provided that, if any Revolving Credit Exposures remain outstanding and the
Facility Commitments shall have been terminated, the Aggregate Utilization
Percentage on and after such date shall be deemed to be in excess of 50%.

 

     “Agreement Currency” has the meaning assigned to such term in Section
10.14.

     “Alternate Base Rate” means, for any day, a rate per annum equal to the
greater of (a) the Prime Rate in effect on such day and (b) the Federal Funds
Effective Rate in effect on such day plus 1/2 of 1%. Any change in the
Alternate Base Rate due to a change in the Prime Rate or the Federal Funds
Effective Rate shall be effective from and including the effective date of such
change in the Prime Rate or the Federal Funds Effective Rate, respectively.

     “Applicable Agent” means, (a) with respect to a Loan or Borrowing
denominated in dollars, the Administrative Agent, (b) with respect to a Loan or
Borrowing denominated in Sterling, the London Agent, or (c) with respect to a
Loan or Borrowing denominated in any particular Eligible Currency, such other
Person as may be agreed upon by the Company and the Administrative Agent and
designated in a notice delivered to the Lenders.

     “Applicable Percentage” means, with respect to any Lender, the percentage
of the total Available Facility Commitments represented by such Lender’s
Available Facility Commitment. If the Facility Commitments have terminated or
expired, the Applicable Percentages shall be determined based upon the Facility
Commitments most recently in effect, giving effect to any assignments.

     “Applicable Rate” means, for any day, with respect to any Eurocurrency
Revolving Loan, or with respect to the facility fees payable pursuant to
Section 2.11, as the case may be, the applicable rate per annum set forth below
under the caption “Eurocurrency Spread” or “Facility Fee Rate”, as the case may
be, based upon the rating for the Index Debt (the “Index Debt Rating”) by S&P
and Fitch, respectively, applicable on such date; provided that if, at any
time, Moody’s has in effect an Index Debt Rating, then all references to Fitch
in this definition shall be deemed to be references to Moody’s and all
references to Fitch ratings in the following table shall be deemed to be
references to the comparable Moody’s ratings:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Category 1
	 	Category 2
	 	Category 3
	 	Category 4
	 	Category 5
	 	Category 6

	Index Debt Rating:
	 	A or above	 	 	A -	 	 	BBB+	 	BBB	 	BBB -	 	below BBB -
	Facility Fee Rate
	 	 	.080	%	 	 	.090	%	 	 	.100	%	 	 	.125	%	 	 	.150	%	 	 	.175	%
	Eurocurrency Spread
	 	 	.170	%	 	 	.210	%	 	 	.400	%	 	 	.500	%	 	 	.725	%	 	 	.950	%

2

 

     For purposes of the foregoing, (i) if either S&P or Fitch shall not have
in effect an Index Debt Rating (other than by reason of the circumstances
referred to in the last sentence of this paragraph), then the Applicable Rate
shall be the rate
set forth in the Category that is one number higher than the Category
applicable to the rating in effect; (ii) if neither S&P nor Fitch shall have in
effect an Index Debt Rating (other than by reason of the circumstances referred
to in the last sentence of this paragraph), then the Applicable Rate shall be
the rate set forth in Category 6; (iii) if the Index Debt Ratings established
or deemed to have been established by S&P and Fitch shall fall within different
Categories, the Applicable Rate shall be based on the higher of the two ratings
unless one of the two ratings is two or more Categories lower than the other,
in which case the Applicable Rate shall be determined by reference to the
Category next below that of the higher of the two ratings; and (iv) if the
Index Debt Ratings established by S&P and Fitch shall be changed (other than as
a result of a change in the rating system of S&P or Fitch), such change shall
be effective as of the date on which it is first announced by the applicable
rating agency, irrespective of when notice of such change shall have been
furnished by the Company to the Administrative Agent and the Lenders pursuant
to Section 5.01 or otherwise. Each change in the Applicable Rate shall apply
(other than as described in the immediately succeeding sentence) during the
period commencing on the effective date of such change and ending on the date
immediately preceding the effective date of the next such change. If the
rating system of S&P or Fitch shall change, or if either such rating agency
shall cease to be in the business of rating corporate debt obligations, the
Company and the Lenders shall negotiate in good faith to amend this definition
to reflect such changed rating system or the unavailability of ratings from
such rating agency and, pending the effectiveness of any such amendment, the
Applicable Rate shall be determined by reference to the rating most recently in
effect prior to such change or cessation.

     “Assignment and Assumption” means an assignment and assumption entered
into by a Lender and an assignee (with the consent of any party whose consent
is required by Section 10.04), and accepted by the Administrative Agent, in the
form of Exhibit A or any other form approved by the Administrative Agent.

     “Assumption Agreement” has the meaning set forth in Section 2.08(d).

     “Available Facility Commitment” means, with respect to any Lender at any
time, an amount equal to such Lender’s Facility Commitment at such time minus
such Lender’s Funded Revolving Credit Exposure at such time. If the Facility
Commitments have terminated or expired, the Available Facility Commitments
shall be determined based upon the Facility Commitments most recently in
effect, giving effect to any assignments.

     “Availability Period” means with respect to the Facility Commitments, the
Designated Currency Commitments or the Yen Commitments, as the case may

3

 

be, the
period from and including the Effective Date to but excluding the earlier of
the Maturity Date and the date of termination of the Facility Commitments, the
Designated Currency Commitments or the Yen Commitments, respectively, pursuant
to Section 2.08 or Article 7.

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

     “Borrower” means the Company or any Borrowing Subsidiary.

     “Borrowing” means (a) Revolving Loans of the same Type and currency, made,
converted or continued on the same date and, in the case of Eurocurrency Loans,
as to which a single Interest Period is in effect, (b) a Competitive Loan or
group of Competitive Loans of the same Type made on the same date and as to
which a single Interest Period is in effect or (c) a Swingline Loan.

     “Borrowing Date” means any Business Day specified in a notice pursuant to
Section 2.03, 2.04 or 2.05 as a date on which the relevant Borrower requests
Loans to be made hereunder.

     “Borrowing Minimum” means (a) in the case of a Borrowing denominated in
dollars, $5,000,000 and (b) in the case of a Borrowing denominated in any
Eligible Currency, the smallest amount of such Eligible Currency that (i) is an
integral multiple of 1,000,000 units (or, in the case of Pounds Sterling,
500,000 units) of such currency and (ii) has a Dollar Equivalent in excess of
$5,000,000.

     “Borrowing Multiple” means (a) in the case of a Borrowing denominated in
dollars, $1,000,000 and (b) in the case of a Borrowing denominated in any
Eligible Currency, 1,000,000 units (or, in the case of Pounds Sterling, 500,000
units) of such currency.

     “Borrowing Request” means a request for a Revolving Borrowing in
accordance with Section 2.03.

     “Borrowing Subsidiary” means, at any time, any Subsidiary of the Company
designated as a Borrowing Subsidiary by the Company pursuant to Section 2.19
that has not ceased to be a Borrowing Subsidiary pursuant to such Section or
Article 7.

     “Borrowing Subsidiary Agreement” means a Borrowing Subsidiary Agreement
substantially in the form of Exhibit D.

     “Borrowing Subsidiary Termination” means a Borrowing Subsidiary
Termination substantially in the form of Exhibit E.

4

 

     “Business Day” means any day that is not a Saturday, Sunday or other day
on which commercial banks in New York City are authorized or required by law to
remain closed; provided that (i) when used in connection with a Eurocurrency
Loan, the term “Business Day” shall also exclude any day on which banks are not
open for dealings in deposits in the applicable currency in the London
interbank market, (ii) when such term is used in connection with a Revolving
Designated
Currency Loan comprised of Euros, references to “Business Day” shall be
deemed to be references to any Target Operating Day on which banks are open for
general banking business in the jurisdiction of the relevant funding office of
the designated Applicable Agent and (iii) when used in connection with notices
or payments to or from an Applicable Agent, such term shall also exclude any
day on which the Applicable Agent is not open.

     “Calculation Date” means the last Business Day of each calendar month and
such other Business Days during such calendar month as may be notified by the
Company to the Administrative Agent, provided that there shall be no more than
three Calculation Dates in any calendar month.

     “Capital Lease Obligations” of any Person means the obligations of such
Person to pay rent or other amounts under any lease of (or other arrangement
conveying the right to use) real or personal property, or a combination
thereof, which obligations are required to be classified and accounted for as
capital leases on a balance sheet of such Person under GAAP, and the amount of
such obligations shall be the capitalized amount thereof determined in
accordance with GAAP.

     “Change in Control” means (a) the acquisition of ownership, directly or
indirectly, beneficially or of record, by any Person or group (within the
meaning of the Securities Exchange Act of 1934 and the rules of the Securities
and Exchange Commission thereunder as in effect on the date hereof), of Equity
Interests representing more than 30% of the aggregate ordinary voting power
represented by the issued and outstanding Equity Interests of the Company; or
(b) occupation of a majority of the seats (other than vacant seats) on the
board of directors of the Company by Persons who were not (i) nominated by the
board of directors of the Company or (ii) appointed by directors so nominated
or appointed.

     “Change in Law” means (a) the adoption of any law, rule or regulation
after the date of this Agreement, (b) any change in any law, rule or regulation
or in the interpretation or application thereof by any Governmental Authority
after the date of this Agreement or (c) compliance by any Lender (or, for
purposes of Section 2.14(c), by any lending office of such Lender or by such
Lender’s holding company, if any) with any request, guideline or directive
(whether or not having the force of law) of any Governmental Authority made or
issued after the date of this Agreement.

5

 

     “Class”, when used in reference to any Loan or Borrowing, refers to
whether such Loan, or the Loans comprising such Borrowing, are Revolving Dollar
Loans, Revolving Designated Currency Loans, Revolving Yen Loans, Competitive
Loans or Swingline Loans.

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

     “Commitment” means a Facility Commitment, a Designated Currency Commitment
or a Yen Commitment.

     “Company” means The Dun & Bradstreet Corporation, a Delaware corporation,
and its successors.

     “Competitive Bid” means an offer by a Lender to make a Competitive Loan in
accordance with Section 2.04.

     “Competitive Bid Rate” means, with respect to any Competitive Bid, the
Margin or the Fixed Rate, as applicable, offered by the Lender making such
Competitive Bid.

     “Competitive Bid Request” means a request for Competitive Bids in
accordance with Section 2.04.

     “Competitive Loan” means a Loan made pursuant to Section 2.04.

     “Competitive Loan Exposure” means, with respect to any Lender at any time,
the sum of the outstanding principal amount of such Lender’s Competitive Loans
(or the Dollar Equivalent thereof in the case of a Competitive Loan in an
Eligible Currency) at such time.

     “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.

     “Default” means any event or condition which constitutes an Event of
Default or which upon notice, lapse of time or both would, unless cured or
waived, become an Event of Default.

     “Designated Currency” means Pounds Sterling, Euros and any other Eligible
Currency that shall be designated by the Company in a notice delivered to the
Administrative Agent and approved by the Administrative Agent and all the
Designated Currency Lenders as a Designated Currency. The Company may specify
in any notice delivered to the Administrative Agent with respect to the
designation of any Eligible Currency one or more locations from which a

6

 

Borrower may make payments of principal of or interest on any Multicurrency
Loans in such Eligible Currency. Subject to the approval of the Administrative
Agent and all the Designated Currency Lenders, Schedule 2.17 shall be deemed to
have been amended to add each such location for payments with respect to
Multicurrency Loans in such Eligible Currency (but not any other Loans).

     “Designated Currency Commitment” means, with respect to each Designated
Currency Lender, the commitment of such Designated Currency Lender to make
Revolving Designated Currency Loans, expressed as an amount
representing the maximum aggregate Dollar Equivalents of the principal
amounts of such Designated Currency Lender’s outstanding Revolving Designated
Currency Loans that may be outstanding after giving effect to any such
Revolving Designated Currency Loans, as such commitment may be (a) reduced from
time to time pursuant to Section 2.08 and (b) reduced or increased from time to
time pursuant to assignments by or to such Designated Currency Lender pursuant
to Section 10.04(b). The initial amount of each Designated Currency Lender’s
Designated Currency Commitment is set forth on Schedule 2.01(b) or in the
Assignment and Assumption pursuant to which such Designated Currency Lender
shall have assumed its Designated Currency Commitment, as applicable.

     “Designated Currency Lenders” means the Persons listed on Schedule 2.01(b)
and any other Person that shall have become a Designated Currency Lender
pursuant to any Assignment and Assumption, other than a Person that ceases to
be a Designated Currency Lender pursuant to an Assignment and Assumption.

     “Designated Subsidiary” means (i) Dun & Bradstreet Inc., a Delaware
corporation, and (ii) any other Subsidiary designated as a “Designated
Subsidiary” by the Company.

     “Disclosed Matters” means the actions, suits and proceedings and other
matters disclosed in footnote 7 (“Contingencies”) to the consolidated financial
statements in the Company’s Report on Form 10-Q filed with the Securities and
Exchange Commission for the quarterly period ended June 30, 2004.

     “dollars” or “$” refers to lawful money of the United States of America.

     “Dollar Equivalent” means, on any date of determination, with respect to
any amount in any Eligible Currency, the equivalent in dollars of such amount,
determined by the Administrative Agent pursuant to Section 1.05(a) using the
Exchange Rate with respect to such Eligible Currency then in effect.

     “Domestic Borrowing Subsidiary” means any Borrowing Subsidiary organized
under the laws of any jurisdiction in the United States.

7

 

     “EBITDA” means, for any period, the consolidated net income of the Company
and its consolidated Subsidiaries for such period plus, to the extent deducted
in computing such consolidated net income for such period, the sum (without
duplication) of (a) income tax expense, (b) Interest Expense, (c) depreciation
and amortization expense and (d) extraordinary losses, and minus, to the extent
added in computing such consolidated net income for such period, extraordinary
gains.

     “Effective Date” means the date on which the conditions specified in
Section 4.01 are satisfied (or waived in accordance with Section 10.02).

     “Eligible Currency” means at any time any Designated Currency, Yen or any
other currency (other than dollars) that is freely tradeable and exchangeable
into dollars in the London market and for which the Administrative Agent can
determine an Exchange Rate.

     “Environmental Laws” means all laws, rules, regulations, codes,
ordinances, orders, decrees, judgments, injunctions or binding agreements
issued, promulgated or entered into by any Governmental Authority, relating to
pollution or the protection of the environment, preservation or reclamation of
natural resources, the management, release or threatened release of any
Hazardous Material.

     “Environmental Liability” means any liability, contingent or otherwise
(including any liability for damages, costs of environmental remediation,
fines, penalties or indemnities), of the Company or any Subsidiary directly or
indirectly resulting from or based upon violation of or liability under any
Environmental Law or any contract, agreement or other consensual arrangement
pursuant to which liability is assumed or imposed with respect thereto.

     “Equity Interests” means shares of capital stock, partnership interests,
membership interests in a limited liability company, beneficial interests in a
trust or other equity ownership interests in a Person, and any warrants,
options or other rights entitling the holder thereof to purchase or acquire any
such equity interest.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as
amended from time to time.

     “ERISA Affiliate” means any trade or business (whether or not
incorporated) that, together with the Company, is treated as a single employer
under Section 414(b) or (c) of the Code or, solely for purposes of Section 302
of ERISA and Section 412 of the Code, is treated as a single employer under
Section 414 of the Code.

8

 

     “ERISA Event” means (a) any “reportable event”, as defined in Section 4043
of ERISA or the regulations issued thereunder with respect to a Plan (other
than an event for which the 30-day notice period is waived); (b) the existence
with respect to any Plan of an “accumulated funding deficiency” (as defined in
Section 412 of the Code or Section 302 of ERISA), whether or not waived; (c)
the filing pursuant to Section 412(d) of the Code or Section 303(d) of ERISA of
an application for a waiver of the minimum funding standard with respect to any
Plan; (d) the incurrence by the Company or any of its ERISA Affiliates of any
liability under Title IV of ERISA with respect to the termination of any Plan;
(e) the receipt by the Company or any ERISA Affiliate from the PBGC or a plan
administrator of any notice relating to an intention to terminate any Plan or
Plans or to appoint a trustee to administer any Plan; (f) the incurrence by the
Company or any of its ERISA Affiliates of any liability with respect to the
withdrawal or partial withdrawal from any Plan or Multiemployer Plan; or (g)
the receipt by the
Company or any ERISA Affiliate of any notice, or the receipt by any
Multiemployer Plan from the Company or any ERISA Affiliate of any notice,
concerning the imposition of Withdrawal Liability or a determination that a
Multiemployer Plan is, or is expected to be, insolvent or in reorganization,
within the meaning of Title IV of ERISA.

     “Euro” has the meaning assigned to the term “euro” in Section 10.15(a).

     “Eurocurrency”, when used in reference to any Loan or Borrowing, refers to
whether such Loan, or the Loans comprising such Borrowing, are bearing interest
at a rate determined by reference to the LIBO Rate.

     “Event of Default” has the meaning assigned to such term in Article 7.

     “Exchange Rate” means, on any day, with respect to any Eligible Currency,
the rate at which such Eligible Currency may be exchanged into dollars (and,
for purposes of any provision of this Agreement requiring or permitting the
conversion of Multicurrency Loans to dollar Loans, the rate at which dollars
may be exchanged into the applicable Eligible Currency), as set forth at or
about 9:00 a.m., New York City time, or at or about 11:00 a.m., London time, on
such date on Reuters page FX, WRLD, for such currency. In the event that such
rate does not appear on Reuters page FX, WRLD, the Exchange Rate shall be
determined by reference to such other publicly available service for displaying
exchange rates as may be agreed upon by the Applicable Agent and the Company,
or, in the absence of such agreement, such Exchange Rate shall instead be the
arithmetic average of the spot rates of exchange quoted to the Applicable Agent
in the market where its foreign currency exchange operations in respect of such
currency are then being conducted, on or about 11:00 a.m., New York City time,
or on or about 11:00 a.m., London time, on such date for the purchase of
dollars (or such foreign currency, as the case may be) for delivery two
Business Days later; provided that if at the time of any such determination,
for any reason, no

9

 

such spot rate is being quoted, the Applicable Agent, after
consultation with the Company, may use any reasonable method it deems
appropriate to determine such rate, and such determination shall be presumed
correct absent manifest error.

     “Excluded Taxes” means, with respect to the Administrative Agent, any
Lender or any other recipient of any payment to be made by or on account of any
obligation of any Borrower hereunder, (a) any Taxes imposed as a result of a
present or former connection between such Lender or the Administrative Agent
and the Governmental Authority imposing such tax (other than any such Taxes
owed solely as a result of such Lender or the Administrative Agent having
executed, delivered or performed its obligations or received a payment under,
or enforced, this Agreement) and (b) in the case of a Foreign Lender, any
withholding tax that is imposed on amounts payable to such Foreign Lender to
the extent they are in effect and would apply as of the date such Foreign
Lender becomes a party to this Agreement or designates a new lending office
(including withholding taxes imposed by the United States of America and
withholding taxes
that would be imposed on payments made by a Borrowing Subsidiary the
Relevant Jurisdiction with respect to which is the United Kingdom, regardless
of whether the Company has designated such a Borrowing Subsidiary) (other than
with respect to any Foreign Lender that is a Foreign Lender with respect to any
Borrowing Subsidiary that is designated after the date of this Agreement (other
than a Borrowing Subsidiary the Relevant Jurisdiction with respect to which is
United Kingdom)), except to the extent that such Foreign Lender (or its
assignor, if any) was entitled, at the time of designation of a new lending
office (or assignment), to receive additional amounts from the applicable
Borrower with respect to such withholding tax pursuant to Section 2.16(a) or
(c) any Taxes attributable to a Foreign Lender’s failure to comply with Section
2.16(e).

     “Existing Credit Agreements” means (i) the Five-Year Revolving Credit and
Competitive Advance Facility dated as of September 11, 2000 among the Company,
the borrowing subsidiaries party thereto, the lenders party thereto, JPMorgan
Chase Bank (as successor to The Chase Manhattan Bank), as administrative agent,
Citibank, N.A., as syndication agent, and The Bank of New York, as
documentation agent, and (ii) the 364-Day Revolving Credit and Competitive
Advance Facility dated as of September 7, 2001 and amended and restated as of
September 6, 2002 and September 5, 2003 among the Company, the borrowing
subsidiaries party thereto, the lenders party thereto, JPMorgan Chase Bank, as
administrative agent, Citibank, N.A. and Bank of Tokyo-Mitsubishi Trust
Company, as co-syndication agents, and The Bank of New York and The Northern
Trust Company as co-documentation agents, each as in effect immediately prior
to the Effective Date.

     “Facility Commitment” means, with respect to each Lender, the commitment
of such Lender to make Revolving Loans and to acquire participations in
Swingline Loans hereunder, expressed as an amount representing

10

 

the maximum
aggregate amount of such Lender’s Revolving Credit Exposure hereunder, as such
commitment may be (a) reduced or increased from time to time pursuant to
Section 2.08 and (b) reduced or increased from time to time pursuant to
assignments by or to such Lender pursuant to Section 10.04. The initial amount
of each Lender’s Facility Commitment is set forth on Schedule 2.01(a), or in
the Assignment and Assumption pursuant to which such Lender shall have assumed
its Facility Commitment, as applicable. The initial aggregate amount of the
Facility Commitments is $300,000,000.

     “Federal Funds Effective Rate” means, for any day, the weighted average
(rounded upwards, if necessary, to the next 1/100 of 1%) of the rates on
overnight Federal funds transactions with members of the Federal Reserve System
arranged by Federal funds brokers, as published on the next succeeding Business
Day by the Federal Reserve Bank of New York, or, if such rate is not so
published for any day that is a Business Day, the average (rounded upwards, if
necessary, to the next 1/100 of 1%) of the quotations for such day for such
transactions received by the Administrative Agent from three Federal funds
brokers of recognized standing selected by it.

     “Financial Officer” of any Person means the chief financial officer,
principal accounting officer, treasurer or controller of such Person.

     “Fitch” means Fitch IBCA, Duff & Phelps.

     “Fixed Rate” means, with respect to any Competitive Loan (other than a
Eurocurrency Competitive Loan), the fixed rate of interest per annum specified
by the Lender making such Competitive Loan in its related Competitive Bid.

     “Fixed Rate Loan” means a Competitive Loan bearing interest at a Fixed
Rate.

     “Foreign Lender” means, with respect to any Loan, any Lender making such
Loan that is organized under the laws of a jurisdiction other than the Relevant
Jurisdiction.

     “Funded Revolving Credit Exposure” means, with respect to any Lender at
any time, the sum at such time, without duplication, of (a) the aggregate
principal amount at such time of the outstanding Revolving Dollar Loans of such
Lender, (b) the Dollar Equivalent of the aggregate principal amount of the
outstanding Revolving Yen Loans of such Lender, (c) the aggregate amount of the
Dollar Equivalents of the principal amounts of the outstanding Revolving
Designated Currency Loans of such Lender and (d) that portion of such Lender’s
Swingline Exposure attributable to Swingline Loans in respect of which such
Lender has made (or is required to have made) payments to the Swingline Lender
pursuant to Section 2.05(c).

11

 

     “GAAP” means generally accepted accounting principles in the United States
of America.

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

     “Guarantee” of or by any Person (the “guarantor”) means any obligation,
contingent or otherwise, of the guarantor guaranteeing or having the economic
effect of guaranteeing any Indebtedness of any other Person (the “primary
obligor”), whether directly or indirectly, and including any obligation of the
guarantor, direct or indirect, (a) to purchase or pay (or advance or supply
funds for the purchase or payment of) such Indebtedness or other obligation or
to purchase (or to advance or supply funds for the purchase of) any security
for the payment thereof, (b) to purchase or lease property, securities or
services for the purpose of assuring the owner of such Indebtedness or other
obligation of the payment thereof, (c) to maintain working capital, equity
capital or any other financial statement condition or liquidity of the primary
obligor so as to enable
the primary obligor to pay such Indebtedness or other obligation or (d) as
an account party in respect of any letter of credit or letter of guaranty
issued to support such Indebtedness or obligation; provided, that the term
Guarantee shall not include endorsements for collection or deposit in the
ordinary course of business.

     “Hazardous Materials” means (a) petroleum or petroleum distillates,
asbestos or asbestos containing materials, polychlorinated biphenyls and radon
gas and (b) any other chemicals, materials or substances designated, classified
or regulated as hazardous or toxic or as a pollutant or contaminant under any
Environmental Law.

     “Indebtedness” of any Person means, without duplication, (a) all
obligations of such Person for borrowed money, (b) all obligations of such
Person evidenced by bonds, debentures, notes or similar instruments, (c) all
obligations of such Person under conditional sale or other title retention
agreements relating to property acquired by such Person, (d) all obligations of
such Person in respect of the deferred purchase price of property or services
(excluding accounts payable incurred in the ordinary course of business), (e)
all Indebtedness of others secured by (or for which the holder of such
Indebtedness has an existing unconditional right to be secured by) any Lien on
property owned or acquired by such Person, whether or not the Indebtedness
secured thereby has been assumed (the amount of any Indebtedness resulting from
this clause (e) shall be equal to the lesser of (i) the amount secured by such
Lien and (ii) the fair market value of the property subject to such Lien as
determined in good faith by such Person), (f) all

12

 

Guarantees by such Person of
Indebtedness of others, (g) all Capital Lease Obligations of such Person, (h)
all obligations, contingent or otherwise, of such Person as an account party in
respect of letters of credit and letters of guaranty issued by banks or other
financial institutions and (i) all obligations, contingent or otherwise, of
such Person in respect of bankers’ acceptances created for the account of such
Person. The Indebtedness of any Person shall include the Indebtedness of any
other entity (including any partnership in which such Person is a general
partner) to the extent such Person is liable therefor as a result of such
Person’s ownership interest in or other relationship with such entity, except
to the extent the terms of such Indebtedness provide that such Person is not
liable therefor.

     “Indemnified Taxes” means Taxes other than Excluded Taxes.

     “Index Debt” means senior, unsecured, long-term indebtedness for borrowed
money of the Company that is not guaranteed by any other Person or subject to
any other credit enhancement.

     “Interest Coverage Ratio” means, for any period, the ratio of (a) EBITDA
for such period to (b) Interest Expense for such period.

     “Interest Election Request” means a request by the relevant Borrower to
convert or continue a Revolving Borrowing in accordance with Section 2.07.

     “Interest Expense” means, for any period, (x) the interest expense of the
Company and its consolidated Subsidiaries for such period determined on a
consolidated basis in accordance with GAAP and including (i) the amortization
of debt discounts to the extent included in interest expense in accordance with
GAAP, (ii) the amortization of all fees (including fees with respect to Swap
Agreements) payable in connection with the incurrence of Indebtedness to the
extent included in interest expense in accordance with GAAP and (iii) the
portion of any rents payable under capital leases allocable to interest expense
in accordance with GAAP minus (y) the interest income of the Company and its
consolidated Subsidiaries for such period determined on a consolidated basis in
accordance with GAAP.

     “Interest Payment Date” means (a) with respect to any ABR Loan (other than
a Swingline Loan), the last day of each March, June, September and December,
(b) with respect to any Eurocurrency Loan, the last day of the Interest Period
applicable to the Borrowing of which such Loan is a part and, in the case of a
Eurocurrency Borrowing with an Interest Period of more than three months’
duration, each day prior to the last day of such Interest Period that occurs at
intervals of three months’ duration after the first day of such Interest
Period, (c) with respect to any Fixed Rate Loan, the last day of the Interest
Period applicable to the Borrowing of which such Loan is a part and, in the
case of a Fixed Rate

13

 

Borrowing with an Interest Period of more than 90 days’
duration (unless otherwise specified in the applicable Competitive Bid
Request), each day prior to the last day of such Interest Period that occurs at
intervals of 90 days’ duration after the first day of such Interest Period, and
any other dates that are specified in the applicable Competitive Bid Request as
Interest Payment Dates with respect to such Borrowing and (d) with respect to
any Swingline Loan, the day that such Loan is required to be repaid.

     “Interest Period” means (a) with respect to any Eurocurrency Borrowing,
the period commencing on the date of such Borrowing and ending on the
numerically corresponding day in the calendar month that is one, two, three or
six months thereafter, as the relevant Borrower may elect and (b) with respect
to any Fixed Rate Borrowing, the period (which shall not be less than one day
or more than 360 days) commencing on the date of such Borrowing and ending on
the date specified in the applicable Competitive Bid Request; provided, that
(i) if any Interest Period would end on a day other than a Business Day, such
Interest Period shall be extended to the next succeeding Business Day unless,
in the case of a Eurocurrency Borrowing only, such next succeeding Business Day
would fall in the next calendar month, in which case such Interest Period shall
end on the next preceding Business Day and (ii) any Interest Period pertaining
to a Eurocurrency Borrowing that commences on the last Business Day of a
calendar month (or on a day for which there is no numerically corresponding day
in the last calendar month of such Interest Period) shall end on the last
Business Day of the
last calendar month of such Interest Period. For purposes hereof, the
date of a Borrowing initially shall be the date on which such Borrowing is made
and, in the case of a Revolving Borrowing, thereafter shall be the effective
date of the most recent conversion or continuation of such Borrowing.

     “Judgment Currency” has the meaning assigned to such term in Section
10.14.

     “Lenders” means the Persons listed on Schedule 2.01(a) and any other
Person that shall have become a party hereto pursuant to an Assignment and
Assumption, other than any such Person that ceases to be a party hereto
pursuant to an Assignment and Assumption. Unless the context otherwise
requires, the term “Lenders” includes the Swingline Lender.

     “LIBO Rate” means, with respect to any Eurocurrency Borrowing for any
Interest Period, the rate appearing on Page 3750 (or, in the case of a
Multicurrency Borrowing, the rate appearing on the Page for the applicable
Eligible Currency) of the Dow Jones Market Service (or on any successor or
substitute page of such Service, or any successor to or substitute for such
Service, providing rate quotations comparable to those currently provided on
such page of such Service, as determined by the Administrative Agent in
consultation with the Company from time to time for purposes of providing
quotations of interest rates

14

 

applicable to dollar deposits (or, in the case of
a Multicurrency Borrowing, deposits in the applicable Eligible Currency) in the
London interbank market) at approximately 11:00 a.m., London time, two Business
Days prior to the commencement of such Interest Period, as the rate for dollar
deposits (or the applicable Eligible Currency) with a maturity comparable to
such Interest Period. In the event that such rate is not available at such
time for any reason, then the “LIBO Rate” with respect to such Eurocurrency
Borrowing for such Interest Period shall be the rate at which the
Administrative Agent is offered dollar deposits of $5,000,000 (or, in the case
of a Multicurrency Borrowing, deposits in the applicable Eligible Currency in
an amount the Dollar Equivalent of which is approximately equal to $5,000,000)
and for a maturity comparable to such Interest Period in immediately available
funds in the London interbank market at approximately 11:00 a.m., London time,
two Business Days prior to the commencement of such Interest Period.

     “Lien” means, with respect to any asset of any Person, (a) any mortgage,
deed of trust, lien, pledge, hypothecation, encumbrance, charge or security
interest in, on or of such asset of any Person, for the purpose of securing any
obligation of such Person or any other Person, and (b) the interest of a vendor
or a lessor under any conditional sale agreement, capital lease or title
retention agreement (or any financing lease having substantially the same
economic effect as any of the foregoing) relating to such asset.

     “Loans” means the loans made by the Lenders to the Borrowers pursuant to
this Agreement.

     “London Agent” means Chase Manhattan International Limited.

     “Margin” means, with respect to any Competitive Loan bearing interest at a
rate based on the LIBO Rate, the marginal rate of interest, if any, to be added
to or subtracted from the LIBO Rate to determine the rate of interest
applicable to such Loan, as specified by the Lender making such Loan in its
related Competitive Bid.

     “Material Adverse Effect” means a material adverse effect on (a) the
business, assets, financial condition or results of operations of the Company
and its Subsidiaries taken as a whole or (b) the ability of the Company to
perform any of its payment obligations under this Agreement.

     “Material Indebtedness” means Indebtedness (other than the Loans), or
obligations in respect of one or more Swap Agreements, of the Company and its
Subsidiaries in an aggregate principal amount exceeding $50,000,000. For
purposes of determining Material Indebtedness, the “principal amount” of the
obligations of the Company or any Subsidiary in respect of any Swap Agreement
at any time shall be the maximum aggregate amount (giving effect to any netting

15

 

agreements) that the Company or such Subsidiary would be required to pay if
such Swap Agreement were terminated at such time.

     “Material Subsidiary” means any Borrowing Subsidiary and any Subsidiary
(a) the Total Assets of which exceed 10% of the Total Assets of the Company and
its consolidated Subsidiaries as of the end of the most recently completed
fiscal year or (b) the Net Revenue of which exceeds 10% of the Net Revenue of
the Company and its consolidated Subsidiaries as of the end of the most
recently completed fiscal year, provided that (i) any Subsidiary that directly
or indirectly owns a Material Subsidiary shall itself be a Material Subsidiary
and (ii) in the event Subsidiaries that would otherwise not be Material
Subsidiaries shall in the aggregate account for a percentage in excess of 15%
of the Total Assets or 15% of the Net Revenue of the Company and its
consolidated Subsidiaries as of the end of the most recently completed fiscal
year, then one or more of such Subsidiaries designated by the Company (or, if
the Company shall make no designation, one or more of such Subsidiaries in
descending order based on their respective contributions to such determination
of Total Assets), shall be included as Material Subsidiaries to the extent
necessary to eliminate such excess.

     “Maturity Date” means September 1, 2009 (or, if such day if not a Business
Day, the next succeeding Business Day).

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

     “Multicurrency Borrowing” means a Borrowing comprised of Multicurrency
Loans.

     “Multicurrency Loan” means a Revolving Loan denominated in Yen or in a
Designated Currency or a Competitive Loan in an Eligible Currency.

     “Multicurrency Lender” means any Lender of a Multicurrency Loan.

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

     “Net Revenue” means, with respect to any Person for any period, the net
revenue of such Person and its consolidated subsidiaries, determined on a
consolidated basis in accordance with GAAP for such period.

     “Obligations” means the obligations of each of the Borrowing Subsidiaries
under this Agreement and the Borrowing Subsidiary Agreements with respect to
the payment of (i) the principal of and interest on the Loans to each such
Borrowing Subsidiary when and as due, whether at maturity, by acceleration,
upon one or more dates set for prepayment or otherwise and (ii) all

16

 

other
monetary obligations of each of the Borrowing Subsidiaries hereunder and
thereunder.

     “Other Taxes” means any and all present or future stamp or documentary
taxes or any other excise or property taxes, charges or similar levies arising
from the execution, delivery or enforcement of, or otherwise with respect to,
this Agreement.

     “Participant” has the meaning set forth in Section 10.04(c).

     “PBGC” means the Pension Benefit Guaranty Corporation referred to and
defined in ERISA and any successor entity performing similar functions.

     “Permitted Encumbrances” means:

     (a)Liens imposed by law for taxes that are not yet delinquent or are being
contested in compliance with Section 5.04;

     (b) carriers’, warehousemen’s, mechanics’, materialmen’s, landlords’,
repairmen’s and other like Liens imposed by law, arising in the ordinary course
of business and securing obligations that are not overdue by more than 60 days
or are being contested in compliance with Section 5.04;

     (c) pledges and deposits made in the ordinary course of business in
compliance with workers’ compensation, unemployment insurance and other social
security laws or regulations;

     (d) deposits to secure the performance of bids, trade contracts, leases,
statutory obligations, surety and appeal bonds, performance bonds and other
obligations of a like nature, in each case in the ordinary course of business
and
deposits securing liabilities to insurance carriers under insurance or
self-insurance arrangements;

     (e) easements, zoning restrictions, rights-of-way and similar encumbrances
on real property imposed by law or arising in the ordinary course of business
that do not secure any monetary obligations and do not materially detract from
the value of the affected property or interfere with the ordinary conduct of
business of the Company or any Subsidiary; and

     (f) bankers’ liens and rights of setoff with respect to customary
depository arrangements entered into in the ordinary course of business;

provided that the term “Permitted Encumbrances” shall not include any Lien
securing Indebtedness.

17

 

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

     “Plan” means any employee pension benefit plan (other than a
Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section
412 of the Code or Section 302 of ERISA, and in respect of which the Company or
any ERISA Affiliate is (or, if such plan were terminated, would under Section
4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of
ERISA.

     “Prime Rate” means the rate of interest per annum publicly announced from
time to time by JPMorgan Chase Bank as its prime rate in effect at its
principal office in New York City; each change in the Prime Rate shall be
effective from and including the date such change is publicly announced as
being effective.

     “Register” has the meaning set forth in Section 10.04.

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

     “Relevant Jurisdiction” means (i) in the case of any Loan to the Company
or any Domestic Borrowing Subsidiary, the United States of America, and (ii) in
the case of any Loan to any other Borrowing Subsidiary, the jurisdiction
imposing (or having the power to impose) withholding tax on payments by such
Borrowing Subsidiary under this Agreement.

     “Required Lenders” means, at any time, Lenders having Revolving Credit
Exposures and unused Commitments representing at least 51% of the sum of the
total Revolving Credit Exposures and unused Commitments at such time;
provided that, for purposes of declaring the Loans to be due and payable
pursuant to Article 7, and for all purposes after the Loans become due and
payable pursuant to Article 7 or the Commitments expire or terminate, the total
Competitive Loan Exposures of the Lenders shall be included in their respective
Revolving Credit Exposures in determining the Required Lenders.

     “Reset Date” has the meaning set forth in Section 1.05(a).

     “Revolving Credit Exposure” means, with respect to any Lender at any time,
the sum of the outstanding principal amount of such Lender’s Revolving Loans
(or the Dollar Equivalent thereof, in the case of Multicurrency Loans) and its
Swingline Exposure at such time.

18

 

     “Revolving Designated Currency Borrowing” means a Borrowing comprised of
Revolving Designated Currency Loans.

     “Revolving Designated Currency Loans” means the Loans made pursuant to
Section 2.01(b) that are denominated in Designated Currencies.

     “Revolving Dollar Borrowing” means a Borrowing comprised of Revolving
Dollar Loans.

     “Revolving Dollar Loans” means Loans denominated in dollars and made
pursuant to Section 2.01(a). Each Revolving Dollar Loan shall be a
Eurocurrency Loan or an ABR Loan.

     “Revolving Loans” means Revolving Dollar Loans, Revolving Yen Loans and
Revolving Designated Currency Loans.

     “Revolving Yen Borrowing” means a Borrowing comprised of Revolving Yen
Loans.

     “Revolving Yen Loans” means the Loans made pursuant to Section 2.01(c)
that are denominated in Yen.

     “S&P” means Standard & Poor’s.

     “SPC” has the meaning set forth in Section 10.04(e).

     “Statutory Reserve Rate” means, with respect to any Eligible Currency, a
fraction (expressed as a decimal), the numerator of which is the number one and
the denominator of which is the number one minus the aggregate of the maximum
reserve percentages (including any marginal, special, emergency or supplemental
reserves) expressed as a decimal established by any Governmental Authority of
the jurisdiction of such currency (or any other jurisdiction in which the
funding operations of any Lender shall be conducted with respect to any
Eligible Currency) to which banks in such jurisdiction are subject for any
category of deposits or liabilities customarily used to fund loans in such
currency or by
reference to which interest rates applicable to Loans in such Eligible
Currency are determined. Such reserve, liquid asset or similar percentages
shall, in the case of dollars, include those imposed pursuant to Regulation D
of the Board. Eurocurrency Loans shall be deemed to constitute eurocurrency
funding and to be subject to such reserve requirements without benefit of or
credit for proration, exemptions or offsets that may be available from time to
time to any Lender under such Regulation D or any comparable regulation. The
Statutory Reserve Rate shall be adjusted automatically on and as of the
effective date of any change in any reserve percentage.

     “Sterling” or “£” means the lawful money of the United Kingdom.

19

 

     “subsidiary” means, with respect to any Person (the “parent”) at any date,
any corporation, limited liability company, partnership, association or other
entity the accounts of which would be consolidated with those of the parent in
the parent’s consolidated financial statements if such financial statements
were prepared in accordance with GAAP as of such date, as well as any other
corporation, limited liability company, partnership, association or other
entity of which securities or other ownership interests representing more than
50% of the equity or more than 50% of the ordinary voting power or, in the case
of a partnership, more than 50% of the general partnership interests are, as of
such date, owned, controlled or held by the parent or one or more subsidiaries
of the parent or by the parent and one or more subsidiaries of the parent.

     “Subsidiary” means any subsidiary of the Company.

     “Successor Corporation” has the meaning set forth in Section 6.02(c).

     “Swap Agreement” means any agreement with respect to any swap, forward,
future or derivative transaction or option or similar agreement involving, or
settled by reference to, one or more rates, currencies, commodities, equity or
debt instruments or securities, or economic, financial or pricing indices or
measures of economic, financial or pricing risk or value or any similar
transaction or any combination of these transactions; provided that no phantom
stock or similar plan providing for payments only on account of services
provided by current or former directors, officers, employees or consultants of
the Company or the Subsidiaries shall be a Swap Agreement.

     “Swingline Exposure” means, at any time, the aggregate principal amount of
all Swingline Loans outstanding at such time. The Swingline Exposure of any
Lender at any time shall be its Applicable Percentage of the total Swingline
Exposures at such time.

     “Swingline Lender” means JPMorgan Chase Bank, in its capacity as lender of
Swingline Loans hereunder.

     “Swingline Loan” means a Loan in dollars made pursuant to Section 2.05.

     “Target Operating Day” means any day that is not (a) a Saturday or Sunday,
(b) Christmas Day or New Year’s Day or (c) any other day on which the
Trans-European Real-time Gross Settlement Operating System (or any successor
settlement system) is not operating (as determined by the Administrative
Agent).

     “Taxes” means any and all present or future taxes, levies, imposts,
duties, deductions, charges or withholdings imposed by any Governmental
Authority.

20

 

     “Total Assets” means, at any date as to any Person, the total assets of
such Person and its consolidated subsidiaries at such date, determined on a
consolidated basis in accordance with GAAP.

     “Total Debt” means, at any date, all indebtedness of the Company and its
consolidated Subsidiaries at such date to the extent such items should be
reflected on the consolidated balance sheet of the Company (excluding any such
items which appear only in the notes to such consolidated balance sheet) at
such date in accordance with GAAP.

     “Total Debt to EBITDA Ratio” means, at the time such ratio is calculated,
the ratio of (a) Total Debt at such time to (b) EBITDA for the most recent
period of four consecutive fiscal quarters of the Company ended at or prior to
such time. Solely for purposes of this definition, (i) if the Company or any
of its consolidated subsidiaries shall have completed an acquisition of all or
a substantial part of the assets, or a going concern business or division, of
any Person, or (ii) if the Company shall have merged with any Person during
such period or (iii) the Company or any of its consolidated subsidiaries shall
have disposed of all or a substantial part of its assets or a going concern
business or division, in each case, EBITDA for the relevant period shall be
determined on a pro forma basis as if such acquisition, disposition or merger,
and the incurrence of any related Indebtedness, had occurred on the first day
of such period.

     “Transactions” means the execution, delivery and performance by the
Borrowers of this Agreement and the Borrowing Subsidiary Agreements, the
borrowing of Loans and the use of the proceeds thereof described in Section
3.13.

     “Type”, when used in reference to any Loan or Borrowing, refers to whether
the rate of interest on such Loan, or on the Loans comprising such Borrowing,
is determined by reference to the LIBO Rate, the Alternate Base Rate or, in the
case of a Competitive Loan or Borrowing, the LIBO Rate or a Fixed Rate.

     “Yen” or “¥” refers to the lawful money of Japan.

     “Yen Commitment” means, with respect to each Yen Lender, the commitment of
such Yen Lender to make Revolving Yen Loans, expressed as an amount
representing the maximum aggregate Dollar Equivalent of the principal amount of
such Yen Lender’s outstanding Revolving Yen Loans that may be
outstanding after giving effect to any such Revolving Yen Loan, as such
commitment may be (a) reduced from time to time pursuant to Section 2.08 and
(b) reduced or increased from time to time pursuant to assignments by or to
such Yen Lender pursuant to Section 10.04. The initial amount of each Yen
Lender’s Yen Commitment is set forth on Schedule 2.01(c) or in the Assignment
and

21

 

Assumption pursuant to which such Yen Lender shall have assumed its Yen
Commitment, as applicable.

     “Yen Lenders” shall mean the Persons listed on Schedule 2.01(c) and any
other Person that shall become a Yen Lender pursuant to an Assignment and
Assumption, other than any such Person that ceases to be a Yen Lender pursuant
to an Assignment and Assumption.

     “Withdrawal Liability” means liability to a Multiemployer Plan as a result
of a complete or partial withdrawal from such Multiemployer Plan, as such terms
are defined in Part I of Subtitle E of Title IV of ERISA.

     Section 1.02. Classification of Loans and Borrowings. For purposes of
this Agreement, Loans may be classified and referred to by Class (e.g., a
“Revolving Loan”) or by Type (e.g., a “Eurocurrency Loan”) or by Class and Type
(e.g., a “Eurocurrency Revolving Loan”). Borrowings also may be classified and
referred to by Class (e.g., a “Revolving Borrowing”) or by Type (e.g., a
“Eurocurrency Borrowing”) or by Class and Type (e.g., a “Eurocurrency Revolving
Borrowing”).

     Section 1.03. Terms Generally. 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 (a) any definition of or
reference to any agreement, instrument or other document herein shall be
construed as referring to such agreement, instrument or other document as from
time to time amended, supplemented or otherwise modified (subject to any
restrictions on such amendments, supplements or modifications set forth
herein), (b) any reference herein to any Person shall be construed to include
such Person’s successors and assigns, (c) the words “herein”, “hereof” and
“hereunder”, and words of similar import, shall be construed to refer to this
Agreement in its entirety and not to any particular provision hereof, (d) all
references herein to Articles, Sections, Exhibits and Schedules shall be
construed to refer to Articles and Sections of, and Exhibits and Schedules to,
this Agreement and (e) 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.

     Section 1.04. Accounting Terms; GAAP. Except as otherwise expressly
provided herein, all terms of an accounting or financial nature shall be
construed in accordance with GAAP, as in effect from time to time; provided
that, if the Company notifies the Administrative Agent that the Company
requests an

22

 

amendment to any provision hereof to eliminate the effect of any
change occurring after the date hereof in GAAP or in the application thereof on
the operation of such provision (or if the Administrative Agent notifies the
Company that the Required Lenders request an amendment to any provision hereof
for such purpose), regardless of whether any such notice is given before or
after such change in GAAP or in the application thereof, then such provision
shall be interpreted on the basis of GAAP as in effect and applied immediately
before such change shall have become effective until such notice shall have
been withdrawn or such provision amended in accordance herewith.

     Section 1.05. Exchange Rates. (a) Not later than 1:00 p.m., New York
City time, on each Calculation Date, the Administrative Agent shall (i)
determine the Exchange Rate as of such Calculation Date with respect to each
Eligible Currency (A) in which any Lender or Lenders shall have extended a
commitment to make Loans or (B) in which any Loan or Loans shall be outstanding
and (ii) give notice thereof to the Lenders and the Company. The Exchange
Rates so determined shall become effective on the first Business Day
immediately following the relevant Calculation Date (a “Reset Date”), shall
remain effective until the next succeeding Reset Date, and shall for all
purposes of this Agreement (other than Section 2.13(b)(i), Section 10.14 or any
other provision expressly requiring the use of a current Exchange Rate) be the
Exchange Rates employed in converting any amounts between dollars and Eligible
Currencies.

     (b) Not later than 5:00 p.m., New York City time, on each Reset Date and
each Borrowing Date with respect to Multicurrency Loans, the Administrative
Agent shall (i) determine the Dollar Equivalent of the aggregate principal
amount of the Multicurrency Loans then outstanding (after giving effect to any
Multicurrency Loans to be made or repaid on such date) and (ii) notify the
Lenders and the Company of the results of such determination.

ARTICLE 2

The Credits

     Section 2.01. Commitments. (a) Subject to the terms and conditions set
forth herein, each Lender, severally and not jointly, agrees to make Revolving
Loans, denominated in dollars, to any Borrower from time to time during the
Availability Period for the Facility Commitments in an aggregate principal
amount that will not result in (i) such Lender’s Revolving Credit Exposure
exceeding such Lender’s Facility Commitment or (ii) the sum of the total
Revolving Credit Exposures plus the total Competitive Loan Exposures exceeding
the total Facility Commitments.

     (b) Subject to the terms and conditions set forth herein, each Designated
Currency Lender agrees to make Loans denominated in any Designated Currency

23

 

to
any Borrower from time to time during the Availability Period for the
Designated Currency Commitments in an aggregate principal amount that, after
giving effect to any requested Loan, will not result in (i) the aggregate
amount of the Dollar Equivalents of the principal amounts of the Revolving
Designated Currency Loans of any Designated Currency Lender exceeding such
Lender’s Designated Currency Commitment, (ii) the aggregate amount of the
Dollar Equivalents of the principal amounts of all outstanding Revolving
Designated Currency Loans and Revolving Yen Loans exceeding $100,000,000, (iii)
any Lender’s Revolving Credit Exposure exceeding such Lender’s Facility
Commitment or (iv) the sum of the total Revolving Credit Exposures plus the
total Competitive Loan Exposures exceeding the total Facility Commitments.

     (c) Subject to the terms and conditions set forth herein, each Yen Lender
agrees to make Loans denominated in Yen to any Borrower from time to time
during the Availability Period for the Yen Commitments in an aggregate
principal amount that, after giving effect to any requested Loan, will not
result in (i) the Dollar Equivalent of the aggregate principal amount of the
Revolving Yen Loans of any Yen Lender exceeding such Lender’s Yen Commitment,
(ii) the aggregate amount of the Dollar Equivalents of the principal amounts of
all outstanding Revolving Designated Currency Loans and Revolving Yen Loans
exceeding $100,000,000, (iii) any Lender’s Revolving Credit Exposure exceeding
such Lender’s Facility Commitment or (iv) the sum of the total Revolving Credit
Exposures plus the total Competitive Loan Exposures exceeding the total
Facility Commitments.

     (d) Within the foregoing limits and subject to the terms and conditions
set forth herein, the Borrowers may borrow, prepay and reborrow Revolving
Loans.

     Section 2.02. Loans and Borrowings. (a) Each Revolving Dollar Loan
shall be made as part of a Borrowing consisting of Revolving Loans denominated
in dollars and made by the Lenders ratably in accordance with their respective
Available Facility Commitments. Each Revolving Designated Currency Loan shall
be made as part of a Borrowing consisting of Revolving Loans denominated in the
same Designated Currency made by the Designated Currency Lenders ratably in
accordance with their respective Designated Currency Commitments. Each
Revolving Yen Loan shall be made as part of a Borrowing consisting of Revolving
Loans denominated in Yen and made by the Yen Lenders ratably in accordance with
their respective Yen Commitments. Each Competitive Loan shall be made in
accordance with the procedures set forth in Section 2.04. The failure of any
Lender to make any Loan required to be made by it shall not relieve any other
Lender of its obligations hereunder; provided that the Commitments and
Competitive Bids of the Lenders are several and no Lender shall be responsible
for any other Lender’s failure to make Loans as required.

24

 

     (b) Subject to Section 2.13, (i) each Revolving Dollar Borrowing shall be
comprised entirely of ABR Loans or Eurocurrency Loans as the applicable
Borrower may request in accordance herewith, (ii) each Revolving Designated
Currency Borrowing shall be comprised entirely of Eurocurrency Loans, (iii)
each Revolving Yen Borrowing shall be comprised entirely of Eurocurrency Loans
and (iv) each Competitive Borrowing shall be comprised entirely of Eurocurrency
Competitive Loans or Fixed Rate Loans as the applicable Borrower may request in
accordance herewith. Each Swingline Loan shall be an ABR Loan. Each Lender at
its option may make any Eurocurrency Loan by causing any domestic or foreign
branch or Affiliate of such Lender to make such Loan; provided that (i) any
exercise of such option shall not affect the obligation of any Borrower to
repay such Loan in accordance with the terms of this Agreement and (ii) unless
any Borrower shall request that an Affiliate of a Lender make a Loan, a Lender
may not recover for any increased costs under Section 2.14 or 2.16 incurred
solely as a result of an Affiliate of such Lender, rather than such Lender,
making a Loan, if, without economic disadvantage to, and consistent with the
policies and practices of, such Lender, such Loan could have been made in a
manner that would have avoided such increased costs under Section 2.14 or 2.16.

     (c) At the commencement of each Interest Period for any Borrowing (other
than a Swingline Loan), such Borrowing shall be in an aggregate amount that is
at least equal to the Borrowing Minimum and an integral multiple equal to the
Borrowing Multiple; provided that (i) a Eurocurrency Revolving Borrowing that
is a Multicurrency Borrowing may be continued into a new Interest Period
pursuant to Section 2.07 without regard to the foregoing and (ii) an ABR
Revolving Dollar Borrowing may be in an aggregate amount that is equal to the
aggregate Available Facility Commitments. Each Swingline Loan shall be in an
amount that is an integral multiple of $100,000 and not less than $500,000.
Borrowings of more than one Type and Class may be outstanding at the same time;
provided that there shall not at any time be more than a total of twenty (but
no more than ten in any one currency) Eurocurrency Revolving Borrowings
outstanding.

     (d) Notwithstanding any other provision of this Agreement, no Borrower
shall be entitled to request, or to elect to convert or continue, any Borrowing
if the Interest Period requested with respect thereto would end after the
Maturity Date.

     Section 2.03. Requests for Revolving Borrowings. To request a Revolving
Borrowing, a Borrower shall notify the Applicable Agent of such request by
telephone (a) in the case of a Eurocurrency Borrowing denominated in dollars,
not later than 11:00 a.m., New York City time, three Business Days before the
date of the proposed Borrowing, (b) in the case of an ABR Borrowing, not later
than 11:00 a.m., New York City time, on the same day as the proposed Borrowing
and (c) in the case of a Revolving Designated Currency Borrowing or

25

 

a Revolving
Yen Borrowing, not later than 10:00 a.m., London time, three Business Days
before the date of the proposed Borrowing. Each such telephonic
Borrowing Request shall be irrevocable and shall be confirmed promptly by
hand delivery or telecopy to the Applicable Agent of a written Borrowing
Request in a form approved by the Applicable Agent and signed by the applicable
Borrower. Each such telephonic and written Borrowing Request shall specify the
following information in compliance with Section 2.02:

          (i) the aggregate amount of the requested Borrowing;

          (ii) the date of such Borrowing, which shall be a Business Day;

          (iii) whether such Borrowing is to be an ABR Borrowing or a
Eurocurrency Borrowing;

          (iv) in the case of a Eurocurrency Borrowing, the initial Interest
Period to be applicable thereto, which shall be a period contemplated by
the definition of the term “Interest Period”, and the currency of such
Borrowing, which shall be dollars, Yen or a Designated Currency;

          (v) the location and number of the relevant Borrower’s account to
which funds are to be disbursed, which shall comply with the
requirements of Section 2.06; and

          (vi) in the case of a Borrowing in Yen or a Designated Currency,
the location from which payments of the principal and interest on such
Borrowing will be made, which will comply with the requirements of
Section 2.17.

If no election as to the Type of Revolving Dollar Borrowing is specified, then
the requested Revolving Dollar Borrowing shall be an ABR Borrowing. If no
currency is specified with respect to any requested Eurocurrency Revolving
Borrowing, then the relevant Borrower shall be deemed to have selected dollars.
If no Interest Period is specified with respect to any requested Eurocurrency
Revolving Borrowing, then the relevant Borrower shall be deemed to have
selected an Interest Period of one month’s duration. Promptly following
receipt of a Borrowing Request in accordance with this Section, the Applicable
Agent shall advise each Lender of the details thereof and of the amount of such
Lender’s Loan to be made as part of the requested Borrowing.

     Section 2.04. Competitive Bid Procedure. (a) Subject to the terms and
conditions set forth herein, from time to time during the Availability Period
any Borrower may request Competitive Bids and may (but shall not have any
obligation to) accept Competitive Bids and borrow Competitive Loans; provided
that the sum of the total Revolving Credit Exposures plus the total Competitive

26

 

Loan Exposures at any time shall not exceed the total Facility Commitments. To
request Competitive Bids, a Borrower shall notify the Applicable Agent of such
request by telephone, (i) in the case of a Eurocurrency Borrowing denominated
in dollars, not later than 11:00 a.m., New York City time, four Business Days
before
the date of the proposed Borrowing, (ii) in the case of a Eurocurrency
Borrowing denominated in an Eligible Currency, not later than 3:00 p.m., London
time, four Business Days before the date of the proposed Borrowing, (iii) in
the case of a Fixed Rate Borrowing denominated in dollars, not later than 10:00
a.m., New York City time, one Business Day before the date of the proposed
Borrowing and (iv) in the case of a Fixed Rate Borrowing denominated in an
Eligible Currency, not later than 3:00 p.m., London time, four Business Days
before the date of the proposed Borrowing; provided that the Borrowers may
submit jointly up to (but not more than) three Competitive Bid Requests on the
same day, but a Competitive Bid Request shall not be made within five Business
Days after the date of any previous Competitive Bid Request, unless any and all
such previous Competitive Bid Requests shall have been withdrawn or all
Competitive Bids received in response thereto rejected. Each such telephonic
Competitive Bid Request shall be confirmed promptly by hand delivery or
telecopy to the Applicable Agent of a written Competitive Bid Request in a form
approved by the Applicable Agent and signed by the applicable Borrower. Each
such telephonic and written Competitive Bid Request shall specify the following
information in compliance with Section 2.02:

          (i) the aggregate amount of the requested Borrowing;

          (ii) the date of such Borrowing, which shall be a Business Day;

          (iii) whether such Borrowing is to be a Eurocurrency Borrowing or a
Fixed Rate Borrowing;

          (iv) the Interest Period to be applicable to such Borrowing, which
shall be a period contemplated by the definition of the term “Interest
Period”, and the currency of such Borrowing which shall be dollars or an
Eligible Currency; and

          (v) the location and number of the relevant Borrower’s account to
which funds are to be disbursed, which shall comply with the
requirements of Section 2.06; and

          (vi) in the case of a Borrowing in Yen or a Designated Currency,
the location from which payments of the principal and interest on such
Borrowing will be made, which will comply with the requirements of
Section 2.17.

27

 

If no currency is specified with respect to any Competitive Bid Request, the
relevant Borrower shall be deemed to have selected dollars. Promptly following
receipt of a Competitive Bid Request in accordance with this Section, the
Applicable Agent shall notify the Lenders of the details thereof by telecopy,
inviting the Lenders to submit Competitive Bids.

     (b) Each Lender may (but shall not have any obligation to) make one or
more Competitive Bids to any Borrower in response to a Competitive Bid Request.
Each Competitive Bid by a Lender must be in a form reasonably approved by the
Applicable Agent and must be received by the Applicable Agent by telecopy, (i)
in the case of a Eurocurrency Competitive Borrowing denominated in dollars, not
later than 9:30 a.m., New York City time, three Business Days before the
proposed date of such Competitive Borrowing, (ii) in the case of a Eurocurrency
Competitive Borrowing denominated in an Eligible Currency, not later than 3:00
p.m., London time, three Business Days before the date of the proposed
Competitive Borrowing, (iii) in the case of a Fixed Rate Borrowing denominated
in dollars, not later than 9:30 a.m., New York City time, on the proposed date
of such Competitive Borrowing and (iv) in the case of a Fixed Rate Borrowing
denominated in an Eligible Currency, not later than 3:00 p.m., London time,
three Business Days before the date of the proposed Competitive Borrowing.
Competitive Bids that do not conform substantially to the form approved by the
Applicable Agent may be rejected by the Applicable Agent, and the Applicable
Agent shall notify the applicable Lender as promptly as practicable. Each
Competitive Bid shall specify (i) the principal amount (which shall be in an
amount that is at least equal to the Borrowing Minimum and an integral multiple
equal to the Borrowing Multiple, and which may equal the entire principal
amount of the Competitive Borrowing requested by the applicable Borrower) of
the Competitive Loan or Loans that the Lender is willing to make, (ii) the
Competitive Bid Rate or Rates at which the Lender is prepared to make such Loan
or Loans (expressed as a percentage rate per annum in the form of a decimal to
no more than four decimal places), (iii) the Interest Period applicable to each
such Loan and the last day thereof and (iv) the currency of the Competitive
Borrowing.

     (c) The Applicable Agent shall promptly notify the relevant Borrower by
telecopy of the Competitive Bid Rate and the principal amount specified in each
Competitive Bid and the identity of the Lender that shall have made such
Competitive Bid.

     (d) Subject only to the provisions of this paragraph, a Borrower may
accept or reject any Competitive Bid. The relevant Borrower shall notify the
Applicable Agent by telephone, confirmed by telecopy in a form reasonably
approved by the Applicable Agent, whether and to what extent it has decided to
accept or reject each Competitive Bid, (i) in the case of a Eurocurrency
Competitive Borrowing denominated in dollars, not later than 10:30 a.m., New

28

 

York City time, three Business Days before the date of the proposed Competitive
Borrowing, (ii) in the case of a Eurocurrency Competitive Borrowing denominated
in an Eligible Currency, not later than 4:00 p.m., London time, three Business
Days before the date of the proposed Competitive Borrowing, (iii) in the case
of a Fixed Rate Borrowing denominated in dollars, not later than 10:30 a.m.,
New York City time, on the proposed date of the Competitive Borrowing and (iv)
in the case of a Fixed Rate Borrowing denominated in an Eligible Currency, not
later than 4:00 p.m., London time, three Business Days before the date of
the proposed Competitive Borrowing; provided that (i) the failure of such
Borrower to give such notice shall be deemed to be a rejection of each
Competitive Bid, (ii) such Borrower shall not accept a Competitive Bid made at
a particular Competitive Bid Rate if such Borrower rejects a Competitive Bid
made at a lower Competitive Bid Rate, (iii) the aggregate amount of the
Competitive Bids accepted by such Borrower shall not exceed the aggregate
amount of the requested Competitive Borrowing specified in the related
Competitive Bid Request, (iv) to the extent necessary to comply with clause
(iii) above, such Borrower may accept Competitive Bids at the same Competitive
Bid Rate in part, which acceptance, in the case of multiple Competitive Bids at
such Competitive Bid Rate, shall be made pro rata in accordance with the amount
of each such Competitive Bid, and (v) except pursuant to clause (iv) above, no
Competitive Bid shall be accepted for a Competitive Loan unless such
Competitive Loan is in a minimum principal amount of at least the Borrowing
Minimum and an integral multiple equal to the Borrowing Multiple; provided
further that if a Competitive Loan must be in an amount less than the Borrowing
Minimum because of the provisions of clause (iv) above, such Competitive Loan
may be for a minimum of $1,000,000 (or the Dollar Equivalent thereof), and in
calculating the pro rata allocation of acceptances of portions of multiple
Competitive Bids at a particular Competitive Bid Rate pursuant to clause (iv)
the amounts shall be rounded to integral multiples of the Borrowing Multiple in
a manner determined by such Borrower. A notice given by any Borrower pursuant
to this paragraph shall be irrevocable.

     (e) The Applicable Agent shall promptly notify each bidding Lender by
telecopy whether or not its Competitive Bid has been accepted (and, if so, the
amount and Competitive Bid Rate so accepted), and each successful bidder will
thereupon become bound, subject to the terms and conditions hereof, to make the
Competitive Loan in respect of which its Competitive Bid has been accepted.

     (f) If the Administrative Agent shall elect to submit a Competitive Bid in
its capacity as a Lender, it shall submit such Competitive Bid directly to the
relevant Borrower at least one quarter of an hour earlier than the time by
which the other Lenders are required to submit their Competitive Bids to the
Administrative Agent pursuant to paragraph (b) of this Section.

29

 

     Section 2.05. Swingline Loans. (a) Subject to the terms and conditions
set forth herein, the Swingline Lender agrees to make Swingline Loans in
dollars to any Borrower from time to time during the Availability Period, in an
aggregate principal amount at any time outstanding that will not result in (i)
the aggregate principal amount of outstanding Swingline Loans exceeding
$20,000,000 or (ii) the sum of the total Revolving Credit Exposures plus the
total Competitive Loan Exposures exceeding the total Facility Commitments;
provided that the Swingline Lender shall not be required to make a Swingline
Loan to refinance an outstanding Swingline Loan. Within the foregoing limits
and subject to the terms
and conditions set forth herein, any Borrower may borrow, prepay and
reborrow Swingline Loans.

     (b) To request a Swingline Loan, a Borrower shall notify the
Administrative Agent of such request by telephone (confirmed by telecopy), not
later than 1:00 p.m., New York City time, on the day of a proposed Swingline
Loan. Each such notice shall be irrevocable and shall specify the requested
date (which shall be a Business Day) and amount of the requested Swingline
Loan. The Administrative Agent will promptly advise the Swingline Lender of
any such notice received from any Borrower. The Swingline Lender shall make
each Swingline Loan available to the relevant Borrower by means of a credit to
the general deposit account of the Company with the Swingline Lender by 3:00
p.m., New York City time, on the requested date of such Swingline Loan (and if
the applicable Borrower is a Borrowing Subsidiary, the Company shall make such
funds available to such Borrowing Subsidiary) or to such other account as may
be specified in the applicable Borrowing Request.

     (c) The Swingline Lender may by written notice given to the Administrative
Agent not later than 10:00 a.m., New York City time, on any Business Day
require the Lenders to acquire participations on such Business Day in all or a
portion of the Swingline Loans outstanding. Such notice shall specify the
aggregate amount of Swingline Loans in which Lenders will participate.
Promptly upon receipt of such notice, the Administrative Agent will give notice
thereof to each Lender, specifying in such notice such Lender’s Applicable
Percentage of such Swingline Loan or Loans. Each Lender hereby absolutely and
unconditionally agrees, upon receipt of notice as provided above, to pay to the
Administrative Agent, for the account of the Swingline Lender, such Lender’s
Applicable Percentage of such Swingline Loan or Loans. Each Lender
acknowledges and agrees that its obligation to acquire participations in
Swingline Loans pursuant to this paragraph is absolute and unconditional and
shall not be affected by any circumstance whatsoever, including the occurrence
and continuance of a Default or reduction or termination of the Commitments,
and that each such payment shall be made without any offset, abatement,
withholding or reduction whatsoever. Each Lender shall comply with its
obligation under this paragraph by wire transfer of immediately available
funds, in the same manner as provided in Section 2.06 with respect to Loans
made by such Lender (and Section

30

 

2.06 shall apply, mutatis mutandis, to the
payment obligations of the Lenders), and the Administrative Agent shall
promptly pay to the Swingline Lender the amounts so received by it from the
Lenders. The Administrative Agent shall notify the relevant Borrower of any
participations in any Swingline Loan acquired pursuant to this paragraph, and
thereafter payments in respect of such Swingline Loan shall be made to the
Administrative Agent and not to the Swingline Lender. Any amounts received by
the Swingline Lender from any Borrower (or other party on behalf of such
Borrower) in respect of a Swingline Loan after receipt by the Swingline Lender
of the proceeds of a sale of participations therein shall be promptly remitted
to the Administrative Agent; any such amounts received by the
Administrative Agent shall be promptly remitted by the Administrative
Agent to the Lenders that shall have made their payments pursuant to this
paragraph and to the Swingline Lender, as their interests may appear; provided
that any such payment so remitted shall be repaid to the Swingline Lender or to
the Administrative Agent, as applicable, if and to the extent such payment is
required to be refunded to any Borrower for any reason. The purchase of
participations in a Swingline Loan pursuant to this paragraph shall not relieve
the relevant Borrower of any default in the payment thereof.

     Section 2.06. Funding of Borrowings. (a) Each Lender shall make each
Loan to be made by it hereunder on the proposed date thereof by wire transfer
of immediately available funds by (i) 12:00 noon, New York City time, in case
of a Loan denominated in dollars, (ii) 11:00 a.m., London time, in the case of
a Revolving Designated Currency Loan, (iii) 11:00 a.m., Tokyo time, in the case
of a Revolving Yen Loan or (iv) 11:00 a.m., local time, in the case of a
Competitive Loan denominated in an Eligible Currency, in each case to the
account of the Applicable Agent most recently designated by it for such purpose
for Loans of such Class by notice to the applicable Lenders; provided that
Swingline Loans shall be made as provided in Section 2.05. The Applicable
Agent will make such Loans available to the relevant Borrower (i) in case of a
Loan denominated in dollars, promptly (but in no event later than 1:00 p.m.,
New York City time), by crediting the amounts so received by 12:00 noon, New
York City time, in like funds, to an account of the Company maintained with the
Administrative Agent in New York City, (ii) in the case of Revolving Designated
Currency Loans, promptly (but in no event later than 12:00 noon, London time),
by crediting the amounts so received by 11:00 a.m., London time, in like funds,
to an account of the Company maintained with the Applicable Agent in London,
(iii) in the case of Revolving Yen Loans, promptly (but in no event later than
12:00 noon, Tokyo time), by crediting the amounts so received by 11:00 a.m.,
Tokyo time, in like funds, to an account of the Company maintained with the
Applicable Agent in London (in each case as designated by such Borrower in the
applicable Borrowing Request or Competitive Bid Request (and, if the applicable
Borrower is a Borrowing Subsidiary, the Company shall make such funds available
to such

31

 

Borrowing Subsidiary)), or (iv) to such other account as may be
specified in the applicable Borrowing Request or Competitive Bid Request.

     (b) Unless the Applicable Agent shall have received notice from a Lender
prior to the proposed time of any Borrowing that such Lender will not make
available to the Applicable Agent such Lender’s share of such Borrowing, the
Applicable Agent may assume that such Lender has made such share available on
such date in accordance with paragraph (a) of this Section and may, in reliance
upon such assumption, make available to the relevant Borrower a corresponding
amount. In such event, if a Lender has not in fact made its share of the
applicable Borrowing available to the Applicable Agent, then the applicable
Lender and each Borrower severally agree to pay to the Applicable Agent
forthwith on demand such corresponding amount with interest thereon, for each
day from and including
the date such amount is made available to the relevant Borrower to but
excluding the date of payment to the Applicable Agent, at (i) in the case of
such Lender, (x) the Federal Funds Effective Rate (in the case of a Borrowing
in dollars) and (y) the rate reasonably determined by the Applicable Agent to
be the cost to it of funding such amount (in the case of a Borrowing in an
Eligible Currency) or (ii) in the case of such Borrower, the interest rate
applicable to the subject Loan. If such Lender pays such amount to the
Applicable Agent, then such amount shall constitute such Lender’s Loan included
in such Borrowing and the Applicable Agent shall return to such Borrower any
amount (including interest) paid by the Borrower to the Applicable Agent
pursuant to this paragraph with respect to such amount.

     Section 2.07. Interest Elections. (a) Each Revolving Borrowing
initially shall be of the Type specified in the applicable Borrowing Request
and, in the case of a Eurocurrency Revolving Borrowing, shall have an initial
Interest Period as specified in such Borrowing Request. Thereafter, the
relevant Borrower may elect to convert such Borrowing to a different Type or to
continue such Borrowing and, in the case of a Eurocurrency Revolving Borrowing,
may elect Interest Periods therefor, all as provided in this Section. A
Borrower may elect different options with respect to different portions of the
affected Borrowing, in which case each such portion shall be allocated ratably
among the Lenders holding the Loans comprising such Borrowing, and the Loans
comprising each such portion shall be considered a separate Borrowing. This
Section shall not apply to Competitive Borrowings or Swingline Borrowings,
which may not be converted or continued. Notwithstanding any contrary
provision herein, this Section shall not be construed to permit any Borrower to
(i) change the currency of any Borrowing or (ii) convert any Multicurrency
Borrowing to an ABR Borrowing.

     (b) To make an election pursuant to this Section, a Borrower shall notify
the Administrative Agent of such election by telephone by the time and at the
office at which a Borrowing Request would be required to be delivered under

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Section 2.03 if such Borrower were requesting a Revolving Borrowing of the Type
resulting from such election to be made on the effective date of such election.
Each such telephonic Interest Election Request shall be irrevocable and shall
be confirmed promptly by hand delivery or telecopy to the Administrative Agent
of a written Interest Election Request in a form reasonably approved by the
Administrative Agent and signed by the relevant Borrower.

     (c) Each telephonic and written Interest Election Request shall specify
the following information in compliance with Section 2.02:

          (i) the Borrowing to which such Interest Election Request applies
and, if different options are being elected with respect to different
portions thereof, the portions thereof to be allocated to each resulting
Borrowing (in which case the information to be specified pursuant to
clauses (iii) and (iv) below shall be specified for each resulting
Borrowing);

          (ii) the effective date of the election made pursuant to such
Interest Election Request, which shall be a Business Day;

          (iii) whether the resulting Borrowing is to be an ABR Borrowing or
a Eurocurrency Borrowing; and

          (iv) if the resulting Borrowing is a Eurocurrency Borrowing, the
Interest Period to be applicable thereto after giving effect to such
election, which shall be a period contemplated by the definition of the
term “Interest Period”.

If any such Interest Election Request requests a Eurocurrency Borrowing but
does not specify an Interest Period, then such Borrower shall be deemed to have
selected an Interest Period of one month’s duration.

     (d) Promptly following receipt of an Interest Election Request, the
Administrative Agent shall advise each Lender of the details thereof and of
such Lender’s portion of each resulting Borrowing.

     (e) If the relevant Borrower fails to deliver a timely Interest Election
Request with respect to a Eurocurrency Revolving Borrowing prior to the end of
the Interest Period applicable thereto, then, unless such Borrowing is repaid
as provided herein, at the end of such Interest Period such Borrowing shall be
converted to an ABR Borrowing (unless such Borrowing is a Multicurrency
Borrowing, in which case such Borrowing shall be continued at the end of the
Interest Period applicable thereto as a Eurocurrency Revolving Borrowing with
an Interest Period of a duration of one month). Notwithstanding any contrary
provision hereof, if an Event of Default has occurred and is continuing and the

33

 

Applicable Agent, at the request of the Required Lenders, so notifies the
Company, then, so long as an Event of Default is continuing (i) no outstanding
Revolving Borrowing may be converted to or continued as a Eurocurrency
Borrowing (except as set forth in clause (ii)(y)) and (ii) unless repaid (x)
each Eurocurrency Revolving Borrowing (other than a Multicurrency Borrowing)
shall be converted to an ABR Borrowing at the end of the Interest Period
applicable thereto and (y) each Multicurrency Borrowing shall be continued at
the end of the Interest Period applicable thereto as a Multicurrency Borrowing
with an Interest Period of a duration of one month.

     Section 2.08.
Termination, Reduction and Increase of Commitments. (a)
Unless previously terminated, the Facility Commitments, the Designated Currency
Commitments and the Yen Commitments shall each terminate on the Maturity Date.

     (b) The Company may at any time terminate, or from time to time reduce,
the Facility Commitments, the Designated Currency Commitments or the Yen
Commitments; provided that (i) each reduction of the Commitments shall be in an
amount that is an integral multiple of $1,000,000 and not less than $5,000,000
and (ii) the Company shall not terminate or reduce (A) the Facility Commitments
if, after giving effect to any concurrent prepayment of the Loans in accordance
with Section 2.10, the sum of the Revolving Credit Exposures plus the total
Competitive Loan Exposures would exceed the total Facility Commitments, (B) the
Designated Currency Commitments if, after giving effect to any concurrent
prepayment of the Loans in accordance with Section 2.10, the aggregate
principal amount of the outstanding Revolving Designated Currency Loans would
exceed the total Designated Currency Commitments, or (C) the Yen Commitments
if, after giving effect to any concurrent prepayment of the Loans in accordance
with Section 2.10, the aggregate principal amount of the outstanding Revolving
Yen Loans would exceed the total Yen Commitments.

     (c) The Company shall notify the Administrative Agent of any election to
terminate or reduce the Facility Commitments, the Designated Currency
Commitments or the Yen Commitments under paragraph (b) of this Section at least
one Business Day (or, to the extent a concurrent prepayment of Loans is
required in accordance with Section 2.10, upon the minimum advance notice
required in connection with such prepayment under such Section) prior to the
effective date of such termination or reduction, specifying such election and
the effective date thereof. Promptly following receipt of any notice, the
Administrative Agent shall advise the Lenders of the contents thereof. Each
notice delivered by the Company pursuant to this Section shall be irrevocable;
provided that a notice of termination of the Facility Commitments, the
Designated Currency Commitments or the Yen Commitments delivered by the Company
may state that such notice is conditioned upon the effectiveness of other
credit facilities, in which case such notice may be revoked by the Company (by
notice to

34

 

the Administrative Agent on or prior to the specified effective date)
if such condition is not satisfied. Any termination or reduction of the
Facility Commitments, the Designated Currency Commitments or the Yen
Commitments shall be permanent. Each reduction of the Facility Commitments, the
Designated Currency Commitments or the Yen Commitments shall be made ratably
among the Lenders, the Designated Currency Lenders or the Yen Lenders, as the
case may be, in accordance with their respective Facility Commitments,
Designated Currency Commitments or Yen Commitments, as applicable.

     (d) Upon at least 15 days’ prior notice to the Administrative Agent (which
notice the Administrative Agent shall promptly transmit to each of the
Lenders), the Company shall have the right, subject to the terms and conditions
set forth below, to increase the aggregate amount of the Facility Commitments
in multiples of $500,000 up to an aggregate amount not to exceed $150,000,000.
Any such increase shall apply, at the option of the Company, (x) to the
Facility Commitment of one or more Lenders, if such Lender or Lenders consent
to such
increase, or (y) to the creation of new Facility Commitments of one or
more institutions not then a Lender hereunder; provided that (i) if any such
institution is not then a Lender hereunder, such institution shall be
reasonably acceptable to the Administrative Agent, (ii) such existing or new
Lender shall execute and deliver to the Company and the Administrative Agent an
Assumption Agreement substantially in the form of Exhibit G hereto (an
“Assumption Agreement”) and (iii) if any Revolving Loans are outstanding at the
time of any such increase, the Company will, notwithstanding anything to the
contrary contained in this Agreement, on the date of such increase incur and
repay or prepay one or more Revolving Loans from the Lenders in such amounts so
that after giving effect thereto, the Revolving Loans shall be outstanding on a
pro rata basis (based on the Facility Commitments of the Lenders after giving
effect to the changes made pursuant hereto on such date) from all the Lenders.
Upon the effectiveness of any increase in Facility Commitments pursuant to this
Section 2.08(d), Schedule 2.01(a) hereto shall be automatically amended to
reflect such increase. It is understood that any increase in the amount of the
Facility Commitments pursuant to this Section 2.08(d) shall not constitute an
amendment or modification of this Agreement pursuant to Section 10.02.

     Section 2.09. Repayment of Loans; Evidence of Debt. (a) Each Borrower
hereby unconditionally promises to pay (i) to the Administrative Agent for the
account of each Lender the then unpaid principal amount of each Revolving Loan
of such Borrower on the Maturity Date, (ii) to the Administrative Agent for the
account of each Lender the then unpaid principal amount of each Competitive
Loan of such Borrower on the last day of the Interest Period applicable to such
Loan and (iii) to the Swingline Lender the then unpaid principal amount of each
Swingline Loan of such Borrower on the earlier of the Maturity Date and the day
that is (x) no more than 15 days after such Swingline Loan is made (it being
understood that day one will be the day after such Swingline Loan is made and
if

35

 

such 15th day is not a Business Day, such Swingline Loan will be due on the
next succeeding Business Day) and (y) at least two Business Days after such
Swingline Loan is made.

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

     (c) The Administrative Agent shall maintain accounts in which it shall
record (i) the amount of each Loan made hereunder, the Class and Type (and, in
the case of a Multicurrency Loan, the currency) thereof and the Interest Period
(if any) applicable thereto, (ii) the amount of any principal or interest due
and payable or to become due and payable from each Borrower to each Lender
hereunder and (iii) the amount of any sum received by the Administrative Agent
hereunder for the account of the Lenders and each Lender’s share thereof.

     (d) The entries made in the accounts maintained pursuant to paragraph
(b) or (c) of this Section shall be prima facie evidence of the existence and
amounts of the obligations recorded therein; provided that the failure of any
Lender or the Administrative Agent to maintain such accounts or any error
therein shall not in any manner affect the obligation of any Borrower to repay
the Loans in accordance with the terms of this Agreement.

     (e) Any Lender may request that Loans made by it be evidenced by a
promissory note. In such event, each Borrower shall prepare, execute and
deliver to such Lender a promissory note payable to the order of such Lender
(or, if requested by such Lender, to such Lender and its registered assigns)
and in a form approved by the Administrative Agent and the Company.
Thereafter, the Loans evidenced by each such promissory note and interest
thereon shall at all times (including after assignment pursuant to Section
10.04) be represented by one or more promissory notes in such form payable to
the order of the payee named therein (or, if such promissory note is a
registered note, to such payee and its registered assigns).

     Section 2.10. Prepayment of Loans. (a) Any Borrower shall have the
right at any time and from time to time to prepay any Borrowing of such
Borrower in whole or in part, subject to prior notice in accordance with
paragraph (d) of this Section; provided that no Borrower shall have the right
to prepay any Competitive Loan without the prior consent of the Lender thereof.

     (b) If, on the last day of any Interest Period for any Borrowing, the sum
of the total Revolving Credit Exposures plus the total Competitive Loan
Exposures exceeds the total Facility Commitments, the relevant Borrower shall,

36

 

on such day, prepay Revolving Loans in an amount equal to the lesser of (i)
such excess and (ii) the amount of such Borrowing. If, on any Reset Date, the
sum of the total Revolving Credit Exposures plus the total Competitive Loan
Exposures exceeds 105% of the total Facility Commitments, then the Borrowers
shall, on the next Reset Date, prepay one or more Revolving Borrowings in an
aggregate principal amount equal to the excess, if any, of the sum of the total
Revolving Credit Exposures plus the total Competitive Loan Exposures (in each
case as of such next Reset Date) over the total Facility Commitments.

     (c) If, on the last day of any Interest Period for any Multicurrency
Borrowing, the Dollar Equivalent of the aggregate principal amount of
outstanding Multicurrency Loans exceeds $100,000,000, the relevant Borrower
shall, on such day, prepay such Multicurrency Borrowing in an amount equal to
the lesser of (i) such excess and (ii) the amount of such Borrowing. If, on
any Reset Date, the Dollar Equivalent of the aggregate principal amount of
outstanding Multicurrency Loans exceeds 105% of $100,000,000, then the
Borrowers shall, on the next Reset Date, prepay one or more Multicurrency
Borrowings in an aggregate principal amount equal to the excess, if any, of the
Dollar Equivalent of the aggregate principal amount of outstanding
Multicurrency Loans (as of such next Reset Date) over $100,000,000.

     (d) The relevant Borrower shall notify the Applicable Agent (and, in the
case of prepayment of a Swingline Loan, the Swingline Lender) by telephone
(confirmed by telecopy) of any prepayment hereunder (i) in the case of
prepayment of a Eurocurrency Revolving Dollar Borrowing, not later than 11:00
a.m., New York City time, three Business Days before the date of prepayment,
(ii) in the case of prepayment of a Eurocurrency Designated Currency Borrowing
or a Eurocurrency Yen Borrowing, not later than 10:00 a.m., London time, three
Business Days before the date of prepayment, (iii) in the case of prepayment of
an ABR Revolving Borrowing, not later than 11:00 a.m., New York City time, on
the date of prepayment, or (iv) in the case of prepayment of a Swingline Loan,
not later than 12:00 noon, New York City time, on the date of prepayment. Each
such notice shall be irrevocable and shall specify the prepayment date and the
principal amount of each Borrowing or portion thereof to be prepaid; provided
that, if a notice of prepayment is given in connection with a conditional
notice of termination of the Facility Commitments, the Designated Currency
Commitments or the Yen Commitments as contemplated by Section 2.08, then such
notice of prepayment may be revoked if such notice of termination is revoked in
accordance with Section 2.08. Promptly following receipt of any such notice
relating to a Revolving Borrowing, the Administrative Agent shall advise the
Lenders of the contents thereof. Each partial prepayment of any Revolving
Borrowing shall be in an amount that would be permitted in the case of an
advance of a Revolving Borrowing of the same Type as provided in Section 2.02
(other than any partial prepayment made concurrently with a reduction of the
commitments permitted by Section 2.08(b), which may be in the amount

37

 

necessary
to comply with the condition to such reduction set forth in such Section).
Each prepayment of a Revolving Borrowing shall be applied ratably to the Loans
included in the prepaid Borrowing. Prepayments shall be accompanied by accrued
interest to the extent required by Section 2.12.

     Section 2.11. Fees. (a) The Company agrees to pay to the Administrative
Agent for the account of each Lender a facility fee, which shall accrue at the
Applicable Rate on the daily amount of the Facility Commitment of such Lender
(whether used or unused) during the period from and including the date hereof
to but excluding the date on which such Facility Commitment terminates;
provided that, if such Lender continues to have any Revolving Credit Exposure
or Competitive Loan Exposure after its Facility Commitment terminates, then
such facility fee shall continue to accrue on the daily amount of such Lender’s
Revolving Credit Exposure or Competitive Loan Exposure from and including the
date on which its Facility Commitment terminates to but excluding the date on
which such Lender ceases to have any Revolving Credit Exposure or Competitive
Loan Exposure. Accrued facility fees shall be payable in arrears on the last
day of March, June, September and December of each year and on the date on
which the Facility Commitments terminate, commencing on the first such date to
occur after the date hereof; provided that any facility fees accruing after the
date on which the Facility Commitments terminate shall be payable on demand.
All facility fees
shall be computed on the basis of a year of 360 days and shall be payable
for the actual number of days elapsed (including the first day but excluding
the last day).

     (b) The Company agrees to pay to the Administrative Agent for the account
of each Lender a utilization fee, which shall accrue at a rate of .10% per
annum on the average daily outstanding amount of the Revolving Credit Exposure
of such Lender, for each day the Aggregate Utilization Percentage exceeds 50%.
Accrued utilization fees, if any, shall be payable in arrears on the last day
of March, June, September and December of each year and on the Maturity Date.
All utilization fees shall be computed on a basis of a year of 360 days and
shall be payable for the actual number of days elapsed (including the first day
but excluding the last day).

     (c) The Company agrees to pay to the Administrative Agent, for its own
account, fees payable in the amounts and at the times separately agreed upon
between the Company and the Administrative Agent.

     (d) All fees payable hereunder shall be paid on the dates due, in
immediately available funds, to the Administrative Agent for distribution, in
the case of facility fees, to the Lenders. Fees paid shall not be refundable
under any circumstances.

38

 

     Section 2.12. Interest. (a) The Loans comprising each ABR Borrowing
(including each Swingline Loan) shall bear interest at a rate per annum equal
to the Alternate Base Rate.

     (b) The Loans comprising each Eurocurrency Borrowing shall bear interest
at a rate per annum equal to (i) in the case of a Eurocurrency Revolving Loan,
the LIBO Rate for the Interest Period in effect for such Borrowing plus the
Applicable Rate, or (ii) in the case of a Eurocurrency Competitive Loan, the
LIBO Rate for the Interest Period in effect for such Borrowing plus (or minus,
as applicable) the Margin applicable to such Loan.

     (c) Each Fixed Rate Loan shall bear interest at a rate per annum equal to
the Fixed Rate applicable to such Loan.

     (d) Notwithstanding the foregoing, if any principal of or interest on any
Loan or any fee or other amount payable by any Borrower hereunder is not paid
when due, whether at stated maturity, upon acceleration or otherwise, such
overdue amount shall bear interest, after as well as before judgment, at a rate
per annum equal to (i) in the case of overdue principal of any Loan, 2% plus
the rate otherwise applicable to such Loan as provided above or (ii) in the
case of any other amount, 2% plus the rate applicable to ABR Loans as provided
above.

     (e) Accrued interest on each Loan shall be payable in arrears on each
Interest Payment Date for such Loan; provided that (i) interest accrued
pursuant to paragraph (d) of this Section shall be payable on demand, (ii) in
the event of any
repayment or prepayment of any Loan (other than a prepayment of an ABR
Revolving Loan prior to the end of the Availability Period for the Facility
Commitments), accrued interest on the principal amount repaid or prepaid shall
be payable on the date of such repayment or prepayment, (iii) in the event of
any conversion of any Eurocurrency Revolving Loan prior to the end of the
current Interest Period therefor, accrued interest on such Loan shall be
payable on the effective date of such conversion and (iv) all accrued interest
shall be payable upon termination of the Facility Commitments.

     (f) All interest hereunder shall be computed on the basis of a year of 360
days, except that interest computed by reference to the Alternate Base Rate at
times when the Alternate Base Rate is based on the Prime Rate shall be computed
on the basis of a year of 365 days (or 366 days in a leap year), and in each
case shall be payable for the actual number of days elapsed (including the
first day but excluding the last day). The applicable Alternate Base Rate or
LIBO Rate shall be determined by the Administrative Agent, and such
determination shall be presumed correct absent manifest error.

     Section 2.13. Alternate Rate of Interest. If prior to the commencement
of any Interest Period for a Eurocurrency Borrowing:

39

 

     (a) the Administrative Agent determines (which determination shall be
presumed correct absent manifest error) that adequate and reasonable means do
not exist for ascertaining the LIBO Rate for such Interest Period; or

     (b) the Administrative Agent is advised by the Required Lenders (or, (i)
in the case of a Eurocurrency Competitive Loan, the Lender that is required to
make such Loan or (ii) in the case of a Revolving Designated Currency Loan or
Revolving Yen Loan, as the case may be, Designated Currency Lenders or Yen
Lenders, as applicable, having Designated Currency Commitments or Yen
Commitments, as applicable, representing at least 51% of the Designated
Currency Commitments or Yen Commitments, as applicable, at such time) that the
LIBO Rate for such Interest Period will not adequately and fairly reflect the
cost to such Lenders (or Lender) of making or maintaining their Loans (or its
Loan) included in such Borrowing for such Interest Period; or

     (c) in the case of a Multicurrency Borrowing, the Administrative Agent
determines (which determination shall be presumed correct absent manifest
error) that deposits in the applicable currency are not generally available, or
cannot be obtained by the Multicurrency Lenders in the applicable market;

then the Administrative Agent shall give notice thereof to the Company and the
Lenders or the applicable Multicurrency Lenders by telephone or telecopy as
promptly as practicable thereafter and, until the Administrative Agent notifies
the Company and the Lenders or the applicable Multicurrency Lenders that the
circumstances giving rise to such notice no longer exist, (i) any Interest
Election Request that requests the conversion of any Revolving Borrowing to, or
continuation of any Revolving Borrowing as, a Eurocurrency Borrowing shall be
ineffective, and any Eurocurrency Borrowing so requested to be continued shall,
at the option of the Company, be repaid in full on the last day of the Interest
Period applicable thereto, or be converted to an ABR Borrowing denominated in
dollars (and in the case of a Multicurrency Borrowing, such conversion shall be
made at the Exchange Rate determined by the Administrative Agent on the last
day of the then current Interest Period with respect thereto), (ii) if any
Borrowing Request requests a Eurocurrency Revolving Borrowing (other than a
Multicurrency Borrowing), such Borrowing shall be made as an ABR Borrowing and
(iii) any request by any Borrower for a Eurocurrency Competitive Borrowing or a
Multicurrency Borrowing shall be ineffective; provided that if the
circumstances giving rise to such notice do not affect all the Lenders, then
requests for Eurocurrency Competitive Borrowings may be made to Lenders that
are not affected thereby and, if the circumstances giving rise to such notice
do not affect all applicable currencies, then requests for Eurocurrency
Borrowings may be made in the currencies that are not affected thereby and, if
the circumstances giving rise to such notice only affect one Type of Borrowing,
then the other Type of Borrowing shall not be affected.

40

 

     Section 2.14. Increased Costs. (a) If any Governmental Authority shall
have in effect any reserve, liquid asset or similar requirement with respect to
any category of deposits or liabilities customarily used to fund Loans, or by
reference to which interest rates applicable to Loans are determined, and the
result of such requirement shall be to increase the cost (other than Taxes) to
such Lender of making or maintaining any Loan, and such Lender shall deliver to
the Company a notice requesting compensation under this paragraph and setting
forth the applicable Statutory Reserve Rate, then the Company shall pay to such
Lender on each Interest Payment Date with respect to each affected Loan
additional interest at a rate per annum up to but not exceeding the excess of
(i) the rate otherwise applicable to such Loan (the “Applicable Interest Rate”)
divided by one minus the applicable Statutory Reserve Rate over (ii) the
Applicable Interest Rate.

     (b) If any Change in Law shall:

          (i) impose, modify or deem applicable any reserve, special deposit
or similar requirement against assets of, deposits with or for the
account of, or credit extended by, any Lender (except any such reserve
requirement covered by subsection (a) above); or

          (ii) impose on any Lender or the London interbank market (or any
other market in which the funding operations of such Lender shall be
conducted with respect to any Eligible Currency) any other condition
affecting this Agreement or Eurocurrency Loans or Fixed Rate Loans made
by such Lender;

and the result of any of the foregoing shall be to increase the cost (other
than Taxes) to such Lender of making or maintaining any Eurocurrency Loan or
Fixed
Rate Loan (or of maintaining its obligation to make any such Loan) or to reduce
the amount of any sum received or receivable by such Lender in respect thereof
hereunder (whether of principal, interest or otherwise), then the Company will
pay to such Lender such additional amount or amounts as will compensate such
Lender for such additional costs incurred or reduction suffered.

     (c) If any Lender determines that any Change in Law regarding capital
requirements has or would have the effect of reducing the rate of return on
such Lender’s capital or on the capital of such Lender’s holding company, if
any, as a consequence of this Agreement or the Loans made by such Lender to a
level below that which such Lender or such Lender’s holding company could have
achieved but for such Change in Law (taking into consideration such Lender’s
policies and the policies of such Lender’s holding company with respect to
capital adequacy), then from time to time the Company will pay to such Lender
such additional amount or amounts as will compensate such Lender or such
Lender’s holding company for any such reduction suffered.

41

 

     (d) A certificate of a Lender setting forth the amount or amounts
necessary to compensate such Lender or its holding company, as the case may be,
as specified in paragraph (a), (b) or (c) of this Section shall be delivered
to the Company and shall be presumed correct absent manifest error. The
Company shall pay such Lender the amount due under this Section within 10 days
after receipt of the relevant certificate.

     (e) Failure or delay on the part of any Lender to demand compensation
pursuant to this Section shall not constitute a waiver of such Lender’s right
to demand such compensation; provided that the Company shall not be required to
compensate a Lender pursuant to this Section for any increased costs or
reductions incurred more than six months prior to the date that such Lender
notifies the Company of the Change in Law giving rise to such increased costs
or reductions and of such Lender’s intention to claim compensation therefor;
provided further that, if the Change in Law giving rise to such increased costs
or reductions is retroactive, then the six-month period referred to above shall
be extended to include the period of retroactive effect thereof.

     (f) Notwithstanding the foregoing provisions of this Section, a Lender
shall not be entitled to compensation pursuant to this Section in respect of
any Competitive Loan if the Change in Law that would otherwise entitle it to
such compensation shall have been publicly announced or be otherwise known to
it prior to submission of the Competitive Bid pursuant to which such Loan was
made.

     Section 2.15. Break Funding Payments. In the event of (a) the payment
of any principal of any Eurocurrency Loan or Fixed Rate Loan other than on the
last day of an Interest Period applicable thereto (including as a result of an
Event of Default), (b) the conversion of any Eurocurrency Loan other than on
the last day of the Interest Period applicable thereto, (c) the conversion of
any
Multicurrency Loan to a dollar denominated Loan pursuant to any Section of
this Agreement, (d) the failure to borrow, convert, continue or prepay any
Eurocurrency Loan on the date specified in any notice delivered pursuant hereto
(regardless of whether such notice is permitted to be revocable under Section
2.10(d) and is revoked in accordance herewith), (e) the failure to borrow any
Eurocurrency Competitive Loan after accepting the Competitive Bid to make such
Loan, or (f) the assignment of any Eurocurrency Loan or Fixed Rate Loan other
than on the last day of the Interest Period applicable thereto as a result of a
request by the Company pursuant to Section 2.18, then, in any such event, the
Company shall compensate each Lender for the loss, cost and expense
attributable to such event (and in the case of any conversion of Multicurrency
Loans to dollar Loans, such loss, cost or expense shall also include any loss,
cost or expense sustained by a Multicurrency Lender as a result of such
conversion). In the case of a Eurocurrency Loan, the loss to any Lender
attributable to any such event shall be deemed to consist of (in addition to
any conversion losses) an amount determined

42

 

by such Lender to be equal, except
as otherwise provided in the final parenthetical in the preceding sentence, to
the excess, if any, of (i) the amount of interest that such Lender would pay
for a deposit equal to the principal amount of such Loan (and in the same
currency as such Loan) for the period from the date of such payment,
conversion, failure or assignment to the last day of the then current Interest
Period for such Loan (or, in the case of a failure to borrow, convert or
continue, the duration of the Interest Period that would have resulted from
such borrowing, conversion or continuation) if the interest rate payable on
such deposit were equal to the LIBO Rate for such Interest Period, over (ii)
the amount of interest that such Lender would earn on such principal amount for
such period if such Lender were to invest such principal amount for such period
at the interest rate that would be bid by such Lender (or an affiliate of such
Lender) for deposits in the same currency from other banks in the eurodollar
market at the commencement of such period. A certificate of any Lender setting
forth any amount or amounts that such Lender is entitled to receive pursuant to
this Section shall be delivered to the Company and shall be presumed correct
absent manifest error. The Company shall pay such Lender the amount due under
this Section within 10 days after receipt of the relevant certificate.

     Section 2.16. Taxes. (a) Subject to compliance with Section 2.16(e),
any and all payments by or on account of any obligation of any Borrower
hereunder shall be made without deduction or withholding other than any
deduction or withholding on account of any Taxes that are required by law to be
withheld; provided that if any Borrower shall be required to deduct any
Indemnified 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 or Lender (as the case may be) receives an amount equal to
the sum it would have received had no such deductions of Indemnified Taxes been
made, (ii) such Borrower shall make such deductions and (iii) such Borrower
shall pay the full amount deducted to the relevant Governmental Authority in
accordance with applicable law.

     (b) In addition, the Borrowers shall pay any Other Taxes to the relevant
Governmental Authority in accordance with applicable law.

     (c) The relevant Borrower shall indemnify the Administrative Agent and
each Lender, within 10 days after written demand therefor, for the full amount
of any Indemnified Taxes or Other Taxes paid by the Administrative Agent or
such Lender, as the case may be, on or with respect to any payment by or on
account of any obligation of any Borrower hereunder (including Indemnified
Taxes or Other Taxes imposed or asserted on or attributable to amounts payable
under this Section), 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. For purposes of this Section 2.16(c),

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amounts
paid by any Borrower pursuant to Sections 2.16(a) or (b) shall not themselves
be treated as paid by the Administrative Agent or a Lender. A certificate as
to the amount of such payment or liability delivered to the Company by a
Lender, or by the Administrative Agent on its own behalf or on behalf of a
Lender, shall be conclusive absent manifest error.

     (d) As soon as practicable after any payment of Indemnified Taxes or Other
Taxes by any Borrower to a Governmental Authority, such 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) Each Lender that is not a United States person as defined in section
7701(a)(30) of the Code shall, if legally able to do so, prior to the
immediately following due date of any payment by the Borrower under this
Agreement, deliver to the Borrower Internal Revenue Service Form W-8BEN or Form
W-8ECI, or, in the case of a Lender claiming exemption from U.S. federal
withholding tax with respect to payments under this Agreement under section
871(h) or 881(c) of the code relating to payments of “portfolio interest”, Form
W-8BEN and a statement substantially in the form of Exhibit F, and any other
certificate or statement of exemption or any subsequent version thereof or
successors thereto (or, in the case of a participation or to the extent
otherwise necessary, a Form W-8IMY with any required attachments, including,
but not limited to, Form W-8BEN, Form W-8ECI or Form W-9), properly completed
and duly executed by such Lender claiming complete exemption, if available, or
a reduced rate of United States federal withholding tax. Any Foreign Lender
that is entitled to an exemption from or reduction of withholding tax with
respect to payments under this Agreement pursuant to the law of a Relevant
Jurisdiction, other than the United States of America, or under any treaty to
which a Relevant Jurisdiction is a party shall deliver to the Borrower (with a
copy to the Administrative Agent), at the time or times prescribed by
applicable law, such properly completed and executed documentation prescribed
by applicable law or reasonably requested by the
Borrower as will permit such payments to be made without withholding or at
a reduced rate.

If any Lender or the Administrative Agent, as applicable, shall become aware
that it is entitled to receive a refund in respect of Indemnified Taxes or
Other Taxes pursuant to Section 2.16, it shall promptly notify the Borrower of
the availability of such refund. If the Company requests that any Lender or
the Administrative Agent (x) apply for a refund in respect of Indemnified Taxes
or Other Taxes pursuant to Section 2.16 or (y) contest an Indemnified Tax or
Other Tax, and the Company delivers, upon request, an opinion of counsel
reasonably acceptable to such Lender or the Administrative Agent, as
applicable, with respect to such refund or contest, such Lender or the
Administrative Agent, as applicable, shall, at

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the Company’s expense, apply for
such refund or contest such tax within 30 days following (i) receipt of such
request from the Company or, if later, (ii) delivery of the requested opinion.
If any Lender or the Administrative Agent, as applicable, determines, in its
sole discretion, that it has received a refund (whether by way of a direct
payment or by offset) of any Indemnified Tax or Other Tax for which a payment
has been made pursuant to Section 2.16 or realizes any credit or other tax
benefit as a result of the payment of such Tax by any Borrower, which refund,
credit or tax benefit in the good faith judgment of such Lender or the
Administrative Agent, as the case may be, is allocable to such payment made
under Section 2.16, the amount of such refund, credit or tax benefit (together
with any interest received from the applicable Governmental Authority thereon)
shall be paid to such Borrower, net of all out-of-pocket expenses of the
Administrative Agent or such Lender and without interest (other than any
interest paid by the relevant Governmental Authority with respect to such
refund); provided, that such Borrower, upon the request of the Administrative
Agent or such Lender, agrees to repay the amount paid over to such Borrower
(plus any penalties, interest or other charges imposed by the relevant
Governmental Authority) to the Administrative Agent or such Lender in the event
the Administrative Agent or such Lender is required to repay such refund to
such Governmental Authority. This Section shall not be construed to require the
Administrative Agent or any Lender to make available its tax returns (or any
other information relating to its taxes which it deems confidential) to such
Borrower or any other Person.

     Section 2.17. Payments Generally; Pro Rata Treatment; Sharing of
Set-offs. (a) Except as set forth with respect to payments of principal of or
interest on Multicurrency Loans in Schedule 2.17, each Borrower shall make each
payment required to be made by it hereunder (whether of principal, interest or
fees under Section 2.09, 2.11, 2.12, 2.14, 2.15 or 2.16) from a payment
location in the United States prior to 1:00 p.m., New York City time (in the
case of payments with respect to Revolving Designated Currency Loans, prior to
11:00 a.m., London time, or in the case of payments with respect to Revolving
Yen Loans, prior to 11:00 a.m., Tokyo time), on the date when due, in
immediately available funds, without set-off or counterclaim. Any amounts
received after such time (or any other applicable time set forth with respect
to Multicurrency Loans in
Schedule 2.17) on any date may, in the discretion of the Applicable Agent
(or in the case of a Competitive Loan, the applicable Lender), be deemed to
have been received on the next succeeding Business Day for purposes of
calculating interest thereon. All such payments shall be made (i) in the case
of amounts due in dollars, to the Applicable Agent at its offices at 270 Park
Avenue, New York, New York and (ii) in the case of amounts due in any Eligible
Currency, to the Applicable Agent at its offices at Trinity Tower, 9 Thomas
Moore Street, London, England E19YT, or at such other office as shall be
specified for such currency by the Applicable Agent, except that payments to be
made directly to the Swingline Lender as expressly provided herein and payments
pursuant to Sections 2.14,

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2.15, 2.16 and 10.03 shall be made directly to the
Persons entitled thereto. The Applicable Agent shall distribute any such
payments received by it for the account of any other Person to the appropriate
recipient promptly following receipt thereof. If any payment hereunder shall
be due on a day that is not a Business Day, the date for payment shall be
extended to the next succeeding Business Day, and, in the case of any payment
accruing interest, interest thereon shall be payable for the period of such
extension. All payments hereunder (whether of principal, interest or otherwise)
shall be made in the applicable currency specified elsewhere herein or, if no
currency is specified, in dollars.

     (b) If at any time insufficient funds are received by and available to the
Administrative Agent to pay fully all amounts of principal, interest and fees
then due hereunder, such funds shall be applied (i) first, to pay interest and
fees then due hereunder, ratably among the parties entitled thereto in
accordance with the amounts of interest and fees then due to such parties, and
(ii) second, to pay principal then due hereunder, ratably among the parties
entitled thereto in accordance with the amounts of principal then due to such
parties.

     (c) If any Lender shall, by exercising any right of set-off or
counterclaim or otherwise, obtain payment in respect of any principal of or
interest on any of its Revolving Loans or participations in Swingline Loans
resulting in such Lender receiving payment of a greater proportion of the
aggregate amount of its Revolving Loans and participations in Swingline Loans
and accrued interest thereon than the proportion received by any other Lender,
then the Lender receiving such greater proportion shall purchase (for cash at
face value) participations in the Revolving Loans and participations in
Swingline Loans of other Lenders to the extent necessary 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
Revolving Loans and participations in Swingline Loans; provided that (i) if any
such participations are purchased and all or any portion of the payment giving
rise thereto is recovered, such participations shall be rescinded and the
purchase price restored to the extent of such recovery, without interest, and
(ii) the provisions of this paragraph shall not be construed to apply to any
payment made by any Borrower pursuant to and in accordance with the express
terms of this Agreement or any payment obtained by a Lender as consideration
for the assignment of or sale of a
participation in any of its Loans to any assignee or participant, other
than to any Borrower or any Subsidiary or Affiliate thereof (as to which the
provisions of this paragraph shall apply). Each Borrower 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 Borrower rights of set-off and
counterclaim with respect to such participation as fully as if such Lender were
a direct creditor of such Borrower in the amount of such participation.

46

 

     (d) Unless the Administrative Agent shall have received notice from the
Company or the relevant Borrower prior to the date on which any payment is due
to the Administrative Agent for the account of the Lenders hereunder that such
Borrower will not make such payment, the Administrative Agent may assume that
such Borrower has made such payment on such date in accordance herewith and
may, in reliance upon such assumption, distribute (or cause the Applicable
Agent to distribute) to the Lenders the amount due. In such event, if such
Borrower has not in fact made such payment, then each of the Lenders severally
agrees to repay to the Administrative Agent forthwith on demand the amount so
distributed to such Lender 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, (i) in the case of a Borrowing in
dollars, at the Federal Funds Effective Rate and (ii) in the case of a
Borrowing in an Eligible Currency, at the rate reasonably determined by the
Administrative Agent to be the cost to it of funding such amount.

     (e) If any Lender shall fail to make any payment required to be made by it
pursuant to Section 2.05(c), Section 2.06(b) or Section 2.17(d), then the
Administrative Agent may, in its discretion (notwithstanding any contrary
provision hereof), apply any amounts thereafter received by the Administrative
Agent for the account of such Lender to satisfy such Lender’s obligations under
such Sections until all such unsatisfied obligations are fully paid.

     Section 2.18. Mitigation Obligations; Replacement of Lenders. (a) If
any Lender requests compensation under Section 2.14, or if any Borrower is
required to pay any additional amount to any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 2.16, 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 2.14 or Section 2.16, as the case
may be, in the future and (ii) would not subject such Lender to any
unreimbursed cost or expense and would not otherwise be disadvantageous to such
Lender. The Company hereby agrees to pay all reasonable costs and expenses
incurred by any Lender in connection with any such designation or assignment.

     (b) If any Lender requests compensation under Section 2.14, or if any
Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 2.16,
or if any Lender defaults in its obligation to fund Loans hereunder, or if any
Lender fails to approve any waiver or amendment to this Agreement which has
been approved by the Required Lenders, then the Company 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

47

 

and subject to the restrictions contained in Section 10.04), all its
interests, rights and obligations under this Agreement (other than any
outstanding Competitive Loans held by it) to an assignee that shall assume such
obligations (which assignee may be another Lender, if a Lender accepts such
assignment); provided that (i) the Company shall have received the prior
written consent of the Administrative Agent, which consent shall not
unreasonably be withheld, (ii) such Lender shall have received payment of an
amount equal to the outstanding principal of its Loans (other than Competitive
Loans) and participations in Swingline Loans, accrued interest thereon, accrued
fees and all other amounts payable to it hereunder, from the assignee (to the
extent of such outstanding principal and accrued interest and fees) or the
Company (in the case of all other amounts) and (iii) in the case of any such
assignment resulting from a claim for compensation under Section 2.14 or
payments required to be made pursuant to Section 2.16, such assignment will
result in a reduction in such compensation or payments. A Lender shall not be
required to make any such assignment and delegation if, prior thereto, as a
result of a waiver by such Lender or otherwise, the circumstances entitling
such Borrower to require such assignment and delegation cease to apply.

     Section 2.19. Borrowing Subsidiaries. On or after the Effective Date,
the Company may designate any Subsidiary of the Company as a Borrowing
Subsidiary by delivery to the Administrative Agent of a Borrowing Subsidiary
Agreement executed by such Subsidiary and the Company, and upon such delivery
such Subsidiary shall for all purposes of this Agreement be a Borrowing
Subsidiary and a party to this Agreement until the Company shall have executed
and delivered to the Administrative Agent a Borrowing Subsidiary Termination
with respect to such Subsidiary, whereupon such Subsidiary shall cease to be a
Borrowing Subsidiary and a party to this Agreement. Notwithstanding the
preceding sentence, no Borrowing Subsidiary Termination will become effective
as to any Borrowing Subsidiary at a time when any principal of or interest on
any Loan to such Borrowing Subsidiary shall be outstanding hereunder, provided
that such Borrowing Subsidiary Termination shall be effective to terminate such
Borrowing Subsidiary’s right to make further Borrowings under this Agreement.

ARTICLE 3

Representations And Warranties

     The Company represents and warrants to the Lenders that:

     Section 3.01. Organization; Powers. Each of the Company and its
Material Subsidiaries is duly organized, validly existing and in good standing
under the laws of the jurisdiction of its organization, has all requisite power
and authority to carry on its business as now conducted and, except where the
failure to do so, individually or in the aggregate, could not reasonably be
expected to

48

 

result in a Material Adverse Effect, is qualified to do business
in, and is in good standing in, every jurisdiction where such qualification is
required.

     Section 3.02. Authorization; Enforceability. The Transactions are
within the Company’s (and, as applicable, each Borrowing Subsidiary’s)
corporate powers and have been duly authorized by all necessary corporate and,
if required, stockholder action. This Agreement has been duly executed and
delivered by the Company and constitutes a legal, valid and binding obligation
of the Company, and each Borrowing Subsidiary Agreement with respect to any
Borrowing Subsidiary (as to which a Borrowing Subsidiary Termination has not
become effective) has been duly executed and delivered by the Company and such
Borrowing Subsidiary and constitutes a legal, valid and binding obligation of
the Borrowing Subsidiary thereunder, in each case enforceable in accordance
with its terms, subject to applicable bankruptcy, insolvency, reorganization,
moratorium or other laws affecting creditors’ rights generally and subject to
general principles of equity, regardless of whether considered in a proceeding
in equity or at law.

     Section 3.03. Governmental Approvals; No Conflicts. The Transactions
(a) do not require any consent or approval of, registration or filing with, or
any other action by, any Governmental Authority, except such as have been
obtained or made and are in full force and effect and except for such consents,
approvals, registrations, filings and other actions the failure to obtain or
make could not, individually or in the aggregate, reasonably be expected to
result in a Material Adverse Effect, (b) will not violate any applicable law or
regulation or the charter, by-laws or other organizational documents of the
Company or any of its Subsidiaries or any order of any Governmental Authority,
except for such violations which, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect, (c) will not
violate or result in a default under any indenture, agreement or other
instrument binding the Company or any of its Subsidiaries or its assets, or
give rise to a right thereunder to require any payment to be made by the
Company or any of its Subsidiaries, except for such violations and defaults
which, individually or in the aggregate, could not reasonably be expected to
result in a Material Adverse Effect, and (d) will not result in the creation or
imposition of any Lien on any asset of the Company or any of its Material
Subsidiaries.

     Section 3.04. Financial Condition; No Material Adverse Change. (a) The
Company has heretofore furnished to the Lenders (i) its consolidated balance
sheet at December 31, 2003 and the related consolidated statements of
operations, shareholders’ equity and cash flows for the fiscal year ended
December 31, 2003, in each case reported on by PricewaterhouseCoopers LLP,
independent public accountants, and (ii) its consolidated balance sheet at June
30, 2004 and the related consolidated statements of operations, shareholders’
equity and cash flows for the fiscal quarter and the portion of the fiscal year
ended June 30, 2004, certified by a Financial Officer of the Company. Such
financial statements

49

 

(including notes thereto) present fairly, in all material
respects, the financial position and results of operations and cash flows of
the Company and its consolidated Subsidiaries as of such dates and for such
periods in accordance with GAAP, subject to year-end audit adjustments and the
absence of footnotes in the case of the statements referred to in clause (ii)
above.

     (b) Since December 31, 2003, there has been no material adverse change in
the business, assets, operations, prospects (based, as to prospects, on the
information available to the Company as of the Effective Date) or financial
condition, of the Company and its Subsidiaries, taken as a whole.

     Section 3.05. Properties. (a) Each of the Company and its Material
Subsidiaries has good title to, or valid leasehold interests in, all its real
and personal property material to the business of the Company and its
Subsidiaries, taken as a whole, except for minor defects in title that do not
interfere with its ability to conduct its business as currently conducted or to
utilize such properties for their intended purposes. There are no Liens on any
such property other than Liens permitted under Section 6.01.

     (b) Each of the Company and its Subsidiaries owns, or is licensed to use,
all trademarks, tradenames, copyrights, patents and other intellectual property
material to the business of the Company and its Subsidiaries taken as a whole,
and the use thereof by the Company and its Subsidiaries does not infringe upon
the rights of any other Person, except for any such infringements that,
individually or in the aggregate, could not reasonably be expected to result in
a Material Adverse Effect.

     Section 3.06. Litigation and Environmental Matters. (a) There are no
actions, suits or proceedings by or before any arbitrator or Governmental
Authority pending against or, to the knowledge of the Company, threatened
against or affecting the Company or any of its Subsidiaries (i) as to which
there is a reasonable possibility of an adverse determination and that, if
adversely determined, could reasonably be expected, individually or in the
aggregate, to result in a Material Adverse Effect (other than the Disclosed
Matters) or (ii) that purport to affect the legality, validity or
enforceability of this Agreement, any Borrowing Subsidiary Agreement or the
Transactions.

     (b) Except for the Disclosed Matters and except with respect to any other
matters that, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect, neither the Company nor any of
its Subsidiaries (i) has failed to comply with any Environmental Law or to
obtain, maintain or comply with any permit, license or other approval required
under any Environmental Law, (ii) has become subject to any Environmental
Liability, (iii) has received notice of any claim with respect to any
Environmental Liability or (iv) knows of any basis for any Environmental
Liability.

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     (c) Since the date of this Agreement, there has been no change in the
status of the Disclosed Matters that, individually or in the aggregate, has
resulted in a Material Adverse Effect.

     Section 3.07. Compliance with Laws and Agreements. Each of the Company
and its Subsidiaries is in compliance with all laws, regulations and orders of
any Governmental Authority applicable to it or its property (including without
limitation any “margin” rules or regulations promulgated by the Board) and all
indentures, agreements and other instruments binding upon it or its property,
except where the failure to do so, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect.

     Section 3.08. Investment and Holding Company Status. Neither the
Company nor any of its Material Subsidiaries is (a) an “investment company” as
defined in, or subject to regulation under, the Investment Company Act of 1940
or (b) a “holding company” as defined in, or subject to regulation under, the
Public Utility Holding Company Act of 1935.

     Section 3.09. Taxes. Each of the Company and each of its Subsidiaries
has timely filed or caused to be filed all Tax returns and reports required to
have been filed and has paid or caused to be paid all Taxes required to have
been paid by it, except (a) Taxes that are being contested in good faith by
appropriate proceedings and for which the Company or such Subsidiary, as
applicable, has set aside on its books adequate reserves or (b) to the extent
that the failure to do so could not reasonably be expected to result in a
Material Adverse Effect.

     Section 3.10. ERISA. No ERISA Event has occurred or is reasonably
expected to occur that, when taken together with all other such ERISA Events
for which liability is reasonably expected to occur, could reasonably be
expected to result in a Material Adverse Effect. The present value of all
accumulated benefit obligations under each Plan (based on the assumptions used
for purposes of Statement of Financial Accounting Standards No. 87) did not, as
of the date of the most recent financial statements reflecting such amounts,
exceed the fair market value of the assets of such Plan by an amount that could
reasonably be expected to result in a Material Adverse Effect, and the present
value of all accumulated benefit obligations of all underfunded Plans (based on
the assumptions used for purposes of Statement of Financial Accounting
Standards No. 87) did not, as of the date of the most recent financial
statements reflecting such amounts, exceed
the fair market value of the assets of all such underfunded Plans by an
amount that could reasonably be expected to result in a Material Adverse
Effect.

     Section 3.11. Disclosure. None of the reports, financial statements,
certificates or other written information furnished by or on behalf of any
Borrower to the Administrative Agent or any Lender in connection with the
negotiation of this Agreement or any Borrowing Subsidiary Agreement or

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delivered hereunder or thereunder (as modified or supplemented by other
information so furnished or incorporated by reference therein), taken as a
whole, as of the respective dates of such reports, financial statements,
certificates and other written information, 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 forward-looking statements and
projected financial information, the Company represents only that such
information was prepared in good faith based upon assumptions believed to be
reasonable at the time.

     Section 3.12. Subsidiaries. Schedule 3.12 sets forth as of the date
hereof a list of all Subsidiaries and the percentage ownership interest of the
Company therein. As of the Effective Date, the shares of capital stock of such
Subsidiaries will be fully paid and non-assessable and such shares and other
ownership interests so indicated by Schedule 3.12 will be owned by the Company,
directly or indirectly, free and clear of all Liens.

     Section 3.13. Use of Proceeds. The proceeds of the Loans shall be
applied by the Borrowers in accordance with the provisions of Section 5.08.

ARTICLE 4

Conditions

     Section 4.01. Effective Date. The obligations of the Lenders to make
Loans hereunder shall not become effective until the date on which each of the
following conditions is satisfied (or waived in accordance with Section 10.02):

     (a) The Administrative Agent (or its counsel) shall have received from
each party hereto either (i) a counterpart of this Agreement signed on behalf
of such party or (ii) written evidence satisfactory to the Administrative Agent
(which may include telecopy transmission of a signed signature page of this
Agreement) that such party has signed a counterpart of this Agreement.

     (b) The Administrative Agent shall have received favorable written
opinions (addressed to the Administrative Agent and the Lenders and dated the
Effective Date) of David J. Lewinter, Senior Vice President, General Counsel
and Secretary of the Company, and Hunton & Williams LLP, special New York
counsel for the Company, substantially in the form of Exhibit B-1 and B-2,
respectively, and covering such other matters relating to the Company, this
Agreement or the Transactions as the Required Lenders shall reasonably
request. The Company hereby requests such counsel to deliver such opinion.

     (c) The Administrative Agent shall have received such documents and
certificates as the Administrative Agent or its counsel may reasonably request

52

 

relating to the organization, existence and good standing of the Company, the
authorization of the Transactions and any other legal matters relating to the
Company, this Agreement or the Transactions, all in form and substance
reasonably satisfactory to the Administrative Agent and its counsel.

     (d) The Administrative Agent shall have received a certificate, dated the
Effective Date and signed by the Chairman, the President, a Vice President or a
Financial Officer of the Company, confirming compliance with the conditions set
forth in paragraphs (a) (including the representations and warranties set forth
in Section 3.04) and (b) of Section 4.02.

     (e) The Administrative Agent shall have received all fees and other
amounts due and payable on or prior to the Effective Date, including, to the
extent invoiced, reimbursement or payment of all reasonable out-of-pocket
expenses required to be reimbursed or paid by the Company hereunder.

     (f) The Administrative Agent shall have received evidence satisfactory to
it that all commitments to extend credit under the Existing Credit Agreements
shall have been terminated and all amounts outstanding or payable thereunder
shall have been repaid in full.

     (g) The Lenders shall have received copies of all the financial statements
referred to in Section 3.04, and all such financial statements shall be
consistent in all material respects with other information previously provided
to the Lenders.

     (h) The Lenders shall have received a certificate of a responsible officer
to the Company certifying that there are no actions, suits or proceedings
(other than the Disclosed Matters) by or before any arbitrator or Governmental
Authority pending against or, to the knowledge of the Company, threatened
against or affecting the Company or any of its Subsidiaries (i) as to which
there is a reasonable possibility of an adverse determination and that, if
adversely determined, could reasonably be expected, individually or in the
aggregate, to result in a Material Adverse Effect or (ii) that purport to
affect the legality, validity or enforceability of this Agreement, any
Borrowing Subsidiary Agreement or the Transactions.

     The Administrative Agent shall notify the Company and the Lenders of the
Effective Date, and such notice shall be conclusive and binding.
Notwithstanding the foregoing, the obligations of the Lenders to make Loans
hereunder shall not become effective unless each of the foregoing conditions is
satisfied (or waived pursuant to Section 10.02) at or prior to 3:00 p.m., New
York
City time, on or prior to September 3, 2004 (and, in the event such
conditions are not so satisfied or waived, the Commitments shall terminate at
such time).

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     Section 4.02. Each Credit Event. The obligation of each Lender to make
a Loan on the occasion of any Borrowing is subject to the satisfaction of the
following conditions:

     (a) The representations and warranties of the Company set forth in this
Agreement (other than the representation and warranty set forth in Section
3.04(b)) and, in the case of a Borrowing by a Borrowing Subsidiary, the
representations and warranties of such Borrowing Subsidiary in its Borrowing
Subsidiary Agreement, shall be true and correct on and as of the date of such
Borrowing.

     (b) At the time of and immediately after giving effect to such Borrowing,
no Default shall have occurred and be continuing.
Each Borrowing shall be deemed to constitute a representation and warranty by
the Company and, if applicable, the relevant Borrowing Subsidiary on the date
thereof as to the matters specified in paragraphs (a) and (b) of this Section.

     Section 4.03. Each Borrowing Subsidiary Credit Event. The obligation of
each Lender to make Loans hereunder to any Borrowing Subsidiary is subject to
the satisfaction of the following conditions:

          (a) The Administrative Agent (or its counsel) shall have received
from each party thereto either (i) a counterpart of such Borrowing
Subsidiary’s Borrowing Subsidiary Agreement or (ii) written evidence
satisfactory to the Administrative Agent (which may include telecopy
transmission of a signed signature page thereof) that such party has
signed a counterpart of such Borrowing Subsidiary Agreement.

          (b) The Administrative Agent shall have received a favorable
written opinion of counsel for such Borrowing Subsidiary (which counsel
shall be reasonably acceptable to the Administrative Agent),
substantially in the form of Exhibit C, and covering such other matters
relating to such Borrowing Subsidiary or its Borrowing Subsidiary
Agreement as the Administrative Agent shall reasonably request.

          (c) The Administrative Agent shall have received such documents and
certificates as the Administrative Agent or its counsel may reasonably
request relating to the organization, existence and good standing of
such Borrowing Subsidiary, the authorization of the Transactions
relating to such Borrowing Subsidiary and any other legal matters
relating to such Borrowing Subsidiary, its Borrowing Subsidiary
Agreement or such Transactions, all in form and substance reasonably
satisfactory to the Administrative Agent and its counsel.

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ARTICLE 5

Affirmative Covenants

     Until the Commitments have expired or have been terminated and the
principal of and interest on each Loan and all fees payable hereunder shall
have been paid in full, the Company covenants and agrees with the Lenders that:

     Section 5.01. Financial Statements and Other Information. The Company
will furnish to the Administrative Agent (with a copy for each Lender):

     (a) after the end of each fiscal year of the Company and within the period
required by the Securities and Exchange Commission (“SEC”) for publicly
reporting companies (including any extension of such period permitted by the
SEC), its audited consolidated balance sheet and related statements of
operations, shareholders’ equity and cash flows as of the end of and for such
year, setting forth in each case comparative figures for the previous fiscal
year, all reported on by PricewaterhouseCoopers LLP or other independent public
accountants of recognized national standing (without a “going concern” or like
qualification or exception and without any qualification or exception as to the
scope of such audit) to the effect that such consolidated financial statements
present fairly in all material respects the financial condition and results of
operations of the Company and its consolidated Subsidiaries on a consolidated
basis in accordance with GAAP consistently applied;

     (b) after the end of each of the first three fiscal quarters of each
fiscal year of the Company and within the period required by the SEC for
publicly reporting companies (including any extension of such period permitted
by the SEC), its consolidated balance sheet and related statements of
operations, shareholders’ equity and cash flows as of the end of and for such
fiscal quarter and the then elapsed portion of the fiscal year and statements
of cash flow for the then elapsed portion of the fiscal year, setting forth in
each case comparative figures for the corresponding periods of the previous
fiscal year, all certified by one of its Financial Officers as presenting
fairly in all material respects the financial condition and results of
operations of the Company and its consolidated Subsidiaries on a consolidated
basis in accordance with GAAP consistently applied, subject to normal year-end
audit adjustments and the absence of footnotes;

     (c) within five Business Days following delivery of financial statements
under clause (a) or (b) above, a certificate of a Financial Officer of the
Company (i) certifying as to whether a Default has occurred and, if a Default
has occurred, specifying the details thereof and any action taken or proposed
to be taken with respect thereto, (ii) setting forth reasonably detailed
calculations demonstrating compliance with Sections 6.06 and 6.07 below and
(iii) stating whether any material change in GAAP or in the application thereof
has occurred since the date

55

 

of the audited financial statements referred to in
Section 3.04 affecting the Company and, if any such change has occurred,
specifying the effect of such
change on the financial statements accompanying such certificate; provided
that the information required by clause (iii) of this paragraph shall be deemed
to have been provided if it is included in financial statements delivered to
the SEC under clause (a) or (b) above;

     (d) promptly after the same become publicly available, copies of all
periodic and other material reports (other than reports relating to employee
benefit matters or employment plans) and proxy statements filed by the Company
or any Subsidiary with the SEC, or any Governmental Authority succeeding to any
or all of the functions of said Commission, or with any national securities
exchange, or distributed by the Company to its shareholders generally, as the
case may be, and all material amendments to any of the foregoing;

     (e) after S&P or Fitch shall have announced a change in the Index Debt
Rating established or deemed to have been established, written notice of such
rating change; and

     (f) promptly following any request therefor, such other information
regarding the operations, business affairs and financial condition of the
Company or any Subsidiary, or compliance with the terms of this Agreement, as
the Administrative Agent may reasonably request.

     Information required to be delivered pursuant to Section 5.01(a), Section
5.01(b) or Section 5.01(d) above shall be deemed to have been delivered on the
date on which the Company provides notice to the Lenders that such information
has been posted on the Company’s website (it being understood that if such
website includes an option to subscribe to a free service alerting subscribers
by email of new SEC filings, such notice shall be deemed to have been provided)
on the Internet at www.dnb.com (or any successor or replacement website
thereof), at sec.gov/edaux/searches.htm or at another website identified in
such notice and accessible by the Lenders without charge. Such notice may be
included in a certificate delivered pursuant to Section 5.01(c).

     Section 5.02. Notices of Material Events. The Company will furnish to
the Administrative Agent and each Lender prompt written notice of the
following:

     (a) the occurrence of any Default, specifying the details thereof and any
action taken or proposed to be taken with respect thereto;

     (b) the filing or commencement of any action, suit or proceeding by or
before any arbitrator or Governmental Authority against or affecting the
Company or any Subsidiary thereof as to which there is a reasonable possibility
of an

56

 

adverse determination and that, if adversely determined, could reasonably
be expected to result in a Material Adverse Effect;

     (c) the occurrence of any ERISA Event that, alone or together with any
other ERISA Events that have occurred, could reasonably be expected to result
in
liability of the Company and its Subsidiaries in an aggregate amount that
could reasonably be expected to result in a Material Adverse Effect; and

     (d) any other development that results in, or that the Company believes
could reasonably be expected to result in, a Material Adverse Effect.

Each notice delivered under this Section shall be accompanied by a statement of
a Financial Officer or other executive officer of the Company setting forth the
details of the event or development requiring such notice and any action taken
or proposed to be taken with respect thereto.

     Section 5.03. Existence; Conduct of Business. The Company will, and
will cause each of its Material Subsidiaries to, do or cause to be done all
things necessary to preserve, renew and keep in full force and effect its legal
existence and the rights, licenses, permits, privileges and franchises material
to the conduct of the business of the Company and its Subsidiaries, taken as a
whole; provided that the foregoing shall not prohibit any merger,
consolidation, liquidation or dissolution permitted under Section 6.02; and
provided, further, that neither the Company nor any of its Material
Subsidiaries shall be required to preserve any right or franchise if the board
of directors of the Company or such Material Subsidiary shall determine that
the preservation thereof is no longer desirable in the conduct of the business
of the Company and its Subsidiaries, taken as a whole, and that the loss
thereof is not disadvantageous in any material respect to the Company and its
Subsidiaries taken as a whole.

     Section 5.04. Payment of Obligations. The Company will, and will cause
each of its Subsidiaries to, pay its obligations, including Tax liabilities,
that, if not paid, could result in a Material Adverse Effect before the same
shall become delinquent or in default, except where (a) the validity or amount
thereof is being contested in good faith by appropriate proceedings, (b) the
Company or such Subsidiary has set aside on its books adequate reserves with
respect thereto in accordance with GAAP and (c) the failure to make payment
pending such contest could not reasonably be expected to result in a Material
Adverse Effect.

     Section 5.05. Maintenance of Properties; Insurance. The Company will,
and will cause each of its Material Subsidiaries to, (a) keep and maintain all
property material to the conduct of its business in good working order and
condition, ordinary wear and tear excepted, and (b) maintain, with financially
sound and reputable insurance companies, insurance in such amounts and against
such risks as are customarily maintained by companies engaged in the same or

57

 

similar businesses operating
in the same or similar locations; provided that
any such insurance may be maintained through a program of self-insurance to the
extent deemed prudent by the Company in its reasonable business judgment (which
determination shall take into account the self-insurance practices customary
among such companies, to the extent the Company has knowledge thereof without
any investigation).

     Section 5.06. Books and Records; Inspection Rights. The Company will,
and will cause each of its Material Subsidiaries to, keep proper books of
record and account in accordance with GAAP (or, the case of a foreign
Subsidiary, generally accepted accounting principles in the jurisdiction of
organization of such foreign Subsidiary). The Company will, and will cause
each of its Material Subsidiaries to, permit any representatives designated by
the Administrative Agent on its own initiative or at the request of the
Required Lenders, upon reasonable prior notice, to visit and inspect its
properties, to examine and make extracts from its books and records, and to
discuss its affairs, finances and condition with its officers and independent
accountants, all at such reasonable times and as often as reasonably requested;
provided, however, that neither the Company nor any of its Material
Subsidiaries shall be required to disclose to the Administrative Agent, any
Lender or any agents or representatives thereof any information that is the
subject of attorney-client privilege or attorney work-product privilege
properly asserted by the applicable Person to prevent the loss of such
privilege in connection with such information or that is prevented from
disclosure pursuant to a confidentiality agreement with third parties.

     Section 5.07. Compliance with Laws. The Company will, and will cause
each of its Subsidiaries to, comply with all laws, rules, regulations and
orders of any Governmental Authority applicable to it or its property
(including ERISA), except where the failure to do so, individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse
Effect.

     Section 5.08. Use of Proceeds. The proceeds of the Loans will be used
only for general corporate purposes, including without limitation back-up for
the Company’s commercial paper program. No part of the proceeds of any Loan
will be used, whether directly or indirectly, for any purpose that entails a
violation of any of the Regulations of the Board, including Regulations U and
X.

ARTICLE 6

Negative Covenants

     Until the Commitments have expired or terminated and the principal of and
interest on each Loan and all fees payable hereunder have been paid in full,
the Company covenants and agrees with the Lenders that:

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     Section 6.01. Liens. The Company will not, and will not permit any
Subsidiary to, create, incur, assume or permit to exist any Lien on any
property or asset now owned or hereafter acquired by it, except:

     (a) Permitted Encumbrances;

     (b) any Lien on any property or asset of the Company or any Subsidiary
existing on the date hereof and set forth in Schedule 6.01; provided that (i)
such Lien shall not apply to any other property or asset of the Company or any
Subsidiary and (ii) such Lien shall secure only those obligations which it
secures on the date hereof and extensions, renewals, refinancings and
replacements thereof that do not increase the outstanding principal amount
thereof (other than by an amount equal to any costs and expenses incurred in
connection with such extension, renewal, refinancing or replacement);

     (c) any Lien existing on any property or asset prior to the acquisition
thereof by the Company or any Subsidiary or existing on any property or asset
of any Person that becomes a Subsidiary after the date hereof prior to the time
such Person becomes a Subsidiary or any Lien on any asset of any Person
existing at the time such Person is merged into or consolidated with the
Company or a Subsidiary; provided that (i) such Lien is not created in
contemplation of or in connection with such acquisition or such Person becoming
a Subsidiary or such merger, as the case may be, (ii) such Lien shall not apply
to any other property or assets of the Company or any Subsidiary and (iii) such
Lien shall secure only those obligations which it secures on the date of such
acquisition or the date such Person becomes a Subsidiary or the date of such
merger, as the case may be, and extensions, renewals, refinancings and
replacements thereof that do not increase the outstanding principal amount
thereof (other than by an amount equal to any costs and expenses incurred in
connection with such extension, renewal, refinancing or replacement);

     (d) any Lien on any asset (i) initially securing Indebtedness (including,
without limitation, Capital Lease Obligations) incurred or assumed for the
purpose of financing all or any part of the cost of acquiring or constructing
such asset or (ii) securing Indebtedness incurred to extend, renew, refinance
or replace the Indebtedness then secured by such Lien, provided that (x) such
Lien attaches to such asset concurrently with or within 180 days after the
acquisition thereof and (y) the principal amount of Indebtedness secured by
such Lien shall not be increased in connection with any extension, renewal,
refinancing or replacement of such Indebtedness (other than by an amount equal
to any costs and expenses incurred in connection with such extension, renewal,
refinancing or replacement);

     (e) any Lien arising in connection with the financing of accounts
receivable by the Company or any of its Subsidiaries, provided that the

59

 

uncollected amount of account receivables subject at any time to any such
financing shall not exceed $125,000,000;

     (f) any Lien on any property sold or transferred pursuant to a transaction
permitted under Section 6.04;

     (g) any Lien in favor of the Company or any Subsidiary granted by the
Company or any Subsidiary in order to secure any intercompany obligations;

     (h) any Lien granted or arising in connection with any legal proceeding to
the extent such proceeding has not resulted in an Event of Default under
paragraph (k) of Article 7; and

     (i) any Lien to secure Indebtedness and other obligations if, at any date,
immediately after the incurrence thereof, the sum (without duplication) of all
amounts secured by Liens which would not be permitted but for this clause (i)
does not exceed $100,000,000.

     Section 6.02. Fundamental Changes. (a) The Company will not (i) merge
or consolidate with any other Person or (ii) permit any Designated Subsidiary
to merge or consolidate with any other Person, except that (1) the Company and
any Designated Subsidiaries may merge into or consolidate with each other, (2)
the Company may merge or consolidate with any other Person in accordance with
subsection (c) and (3) any Designated Subsidiary may merge or consolidate with
any other Person so long as the surviving entity of such merger or
consolidation is a Designated Subsidiary. The Company will not, and will not
permit any Designated Subsidiary to, liquidate or dissolve.

     (b) (i) The Company will not sell, transfer, lease or otherwise dispose of
(in one transaction or in a series of transactions) all or substantially all of
the assets of the Company and its consolidated Subsidiaries, taken as a whole,
or all or substantially all of the stock or other equity interests of any
Designated Subsidiary and (ii) the Company will not permit any Designated
Subsidiary to sell, transfer, lease or otherwise dispose of (in one transaction
or in a series of transactions) all or substantially all of the assets of such
Designated Subsidiary and its subsidiaries, taken as a whole, except (1) the
Company and any Designated Subsidiaries may consummate any transaction
described in clause (i) or (ii) with the Company or any other Designated
Subsidiary and (2) the Company may consummate any transaction described in
clause (i) in accordance with subsection (c).

     (c) The Company may consummate any of the transactions described in
clauses (a)(i) and (b)(i) of this Section if (i) the surviving corporation in
any such merger or consolidation or the Person which acquires all or
substantially all of the assets of the Company and its consolidated
Subsidiaries or all or substantially all

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of the capital stock or other equity
interests of a Designated Subsidiary shall be a corporation organized and
existing under the laws of the United States of America, any state thereof or
the District of Columbia (the “Successor Corporation”) and shall expressly
assume, pursuant to documentation in form reasonably satisfactory to the
Required Lenders, the due and punctual payment of the principal of and interest
on the Loans and all other amounts payable under this Agreement and the payment
and performance of every covenant hereof on the part of the Company to be
performed or observed; (ii) immediately after giving effect to such
transaction, no Default shall have occurred and be continuing; and (iii)
immediately after giving effect to such transaction, (x) the Company and its
Subsidiaries are in compliance, on a pro-forma basis, with the covenants
contained in Sections 6.06 and 6.07 below recomputed as of the last day of the
most recently ended fiscal quarter of the Company, as if such transaction had
occurred on the first day of each relevant period for testing such compliance
and (y) the Company shall have delivered to the Lenders, at least 10 Business
Days
prior to the consummation of any such transaction, a certificate of a
Financial Officer of the Company certifying that the condition precedent set
forth in clause (iii)(x) with respect to such transaction will be complied with
and setting forth in reasonable detail the calculations required to demonstrate
such compliance and the assumptions used by the Company to make such
calculations.

     (d) The Company will not permit any Borrowing Subsidiary to merge,
consolidate, liquidate or dissolve unless, in addition to the conditions set
forth in clause (a) of this Section (if applicable), the surviving entity, or
the entity into which such Borrowing Subsidiary liquidates or dissolves, is a
Borrower and assumes all Obligations of such Borrowing Subsidiary.

     (e) The Company will not, and will not permit any of its Subsidiaries to,
engage to any material extent in any business other than businesses of the type
conducted by the Company and its Subsidiaries on the date of execution of this
Agreement and businesses reasonably related or complementary thereto.

     Section 6.03. Transactions with Affiliates. The Company will not, and
will not permit any of its Subsidiaries to, sell, lease or otherwise transfer
any property or assets to, or purchase, lease or otherwise acquire any property
or assets from, or otherwise engage in any other transactions with, any of its
Affiliates, except (a) on terms and conditions not less favorable to the
Company or such Subsidiary than could be obtained on an arm’s-length basis from
unrelated third parties (considering such transactions and all other related
transactions as a whole) and (b) transactions between or among the Company and
its Subsidiaries.

     Section 6.04. Sale and Lease-Back Transactions. The Company will not,
and will not permit any of its Subsidiaries to, directly or indirectly, enter
into any arrangement with any Person (other than a Subsidiary) whereby it shall
sell or transfer any property used or useful in its business, whether now owned
or

61

 

hereafter acquired, and thereafter rent or lease such property or other
property which it intends to use for substantially the same purpose or purposes
as the property being sold or transferred, except for any such arrangement or
arrangements with an aggregate sale price not exceeding at any time
$250,000,000.

     Section 6.05. Subsidiary Indebtedness. The Borrower will not permit the
aggregate principal amount of Indebtedness of its Subsidiaries (excluding any
Indebtedness of a Subsidiary (i) owed to the Borrower or another Subsidiary and
(ii) outstanding hereunder) at any time outstanding to exceed $50,000,000.

     Section 6.06. Total Debt to EBITDA Ratio. The Total Debt to EBITDA Ratio
will not exceed 4.0 to 1.0 at the end of any fiscal quarter of the Company.

     Section 6.07. Interest Coverage Ratio. The Interest Coverage Ratio for
any period of four consecutive fiscal quarters of the Company will not be less
than 3.0 to 1.0.

ARTICLE 7

EVENTS OF DEFAULT

     If any of the following events (“Events of Default”) shall occur and be
continuing:

     (a) any Borrower shall fail to pay any principal of any Loan of
such Borrower when and as the same shall become due and payable, whether
at the due date thereof or at a date fixed for prepayment thereof or
otherwise;

     (b) any Borrower shall fail to pay any interest on any Loan of such
Borrower or any fee or any other amount (other than an amount referred
to in clause (a) of this Article) payable by such Borrower under this
Agreement, when and as the same shall become due and payable, and such
failure shall continue unremedied for a period of three Business Days;

     (c) any representation or warranty made or deemed made by or on
behalf of the Company or any Subsidiary in or in connection with this
Agreement, any Borrowing Subsidiary Agreement or any amendment or
modification hereof or thereof, or in any certificate or other document
furnished pursuant to or in connection with this Agreement, any
Borrowing Subsidiary Agreement or any amendment or modification hereof
or thereof, shall prove to have been incorrect in any material respect
when made or deemed made;

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     (d) the Company shall fail to observe or perform any covenant,
condition or agreement contained in Section 5.02(a), Section 5.03
(with respect to the Company’s existence), Section 5.08 or in Article
6 ;

     (e) the Company shall fail to observe or perform any covenant,
condition or agreement contained in this Agreement or any Borrowing
Subsidiary Agreement (other than those specified in clause (a), (b),
(c) or (d) of this Article), and such failure shall continue
unremedied for a period of 30 days after notice thereof from the
Administrative Agent (given at the request of any Lender) to the
Company;

     (f) the Company or any Subsidiary shall fail to make any payment
(whether of principal or interest and regardless of amount) in respect
of any Material Indebtedness, when and as the same shall become due and
payable (after giving effect to any grace period applicable thereto);

     (g) any event or condition occurs that results in any Material
Indebtedness becoming due prior to its scheduled maturity; provided that
this clause (g) shall not apply to (i) secured Indebtedness that
becomes due as a result of the voluntary sale or transfer of the
property or assets securing such Indebtedness (so long as such
Indebtedness is paid when due (or within any applicable grace period))
or (ii) any Indebtedness that is mandatorily prepayable prior to the
scheduled maturity thereof with the proceeds of the issuance of capital
stock, the incurrence of other Indebtedness or the sale or other
disposition of any assets, so long as such Indebtedness is so prepaid in
full with such proceeds when due (or within any applicable grace period)
and such event shall not have otherwise resulted in an event of default
with respect to such Indebtedness;

     (h) an involuntary proceeding shall be commenced or an involuntary
petition shall be filed seeking (i) liquidation, reorganization or other
relief in respect of the Company or any Material Subsidiary or its
debts, or of a substantial part of its assets, under any Federal, state
or foreign bankruptcy, insolvency, receivership or similar law now or
hereafter in effect or (ii) the appointment of a receiver, trustee,
custodian, sequestrator, conservator or similar official for the Company
or any Material Subsidiary or for a substantial part of its assets, and,
in any such case, such proceeding or petition shall continue undismissed
for 60 days or an order or decree approving or ordering any of the
foregoing shall be entered;

     (i) the Company or any Material Subsidiary shall (i) voluntarily
commence any proceeding or file any petition seeking liquidation,
reorganization or other relief under any Federal, state or foreign

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bankruptcy, insolvency, receivership or similar law now or
hereafter in effect, (ii) consent to the institution of, or fail to
contest in a timely and appropriate manner, any proceeding or petition
described in clause (h) of this Article, (iii) apply for or consent to
the appointment of a receiver, trustee, custodian, sequestrator,
conservator or similar official for the Company or any Material
Subsidiary or for a substantial part of its assets, (iv) file an answer
admitting the material allegations of a petition filed against it in any
such proceeding, (v) make a general assignment for the benefit of
creditors or (vi) take any action for the purpose of effecting any of
the foregoing;

     (j) the Company or any Material Subsidiary shall become unable,
admit in writing or fail generally to pay its debts as they become due;

     (k) one or more judgments for the payment of money in an aggregate
amount in excess of $50,000,000 (excluding any amount of such judgment
as to which an Acceptable Insurer has acknowledged liability) shall be
rendered against the Company, any Subsidiary or any combination thereof
and the same shall remain undischarged for a period of 60 consecutive
days during which execution shall not be effectively stayed, or any
action, which shall not be effectively stayed, shall be legally taken by
a judgment creditor to attach or levy upon any assets of the Company or
any Subsidiary to enforce any such judgment;

     (l) an ERISA Event shall have occurred that, in the opinion of the
Required Lenders, when taken together with all other ERISA Events that
have occurred, could reasonably be expected to result in liability of
the Company and its Subsidiaries in an aggregate amount that could
reasonably be expected to result in a Material Adverse Effect;

     (m) the Company shall fail to observe or perform any covenant,
condition or agreement contained in Article 9 or the guarantee of the
Company hereunder shall not be (or shall be claimed by the Company or
any Subsidiary not to be) valid or in full force and effect;

     (n) a Change in Control shall occur; or

     (o) (i) the Company shall have merged or consolidated with any
Person or any Person shall have acquired all or substantially all of the
assets of the Company and its consolidated Subsidiaries, taken as a
whole, or all or substantially all of the capital stock or other equity
interests of any Designated Subsidiary, (ii) either the Company or the
Person with which it is merging or consolidating or the Person which is
acquiring such assets or capital stock or other equity interests shall
at the time of such

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merger or consolidation or acquisition have been rated by a rating
agency and (iii) the Successor Corporation shall not have in effect a
rating of at least Baa1 from Moody’s, BBB+ from Fitch or BBB+ from S&P
on the 90th day following the consummation of such merger or
consolidation or acquisition, as the case may be;

then, and in every such event (other than an event with respect to any Borrower
described in clause (h) or (i) of this Article), and at any time thereafter
during the continuance of such event, the Administrative Agent may (with the
consent of the Required Lenders), and at the request of the Required Lenders
shall, by notice to the Company, take either or both of the following actions,
at the same or different times: (i) terminate the Commitments, and thereupon
the Commitments shall terminate immediately, and (ii) declare the Loans then
outstanding to be due and payable in whole (or in part, in which case any
principal not so declared to be due and payable may thereafter be declared to
be due and payable), and thereupon the principal of the Loans so declared to be
due and payable, together with accrued interest thereon and all fees and other
obligations of the Borrowers accrued hereunder, shall become due and payable
immediately, without presentment, demand, protest or other notice of any kind,
all of which are hereby waived by each Borrower; and in case of any event with
respect to the Company described in clause (h) or (i) of this Article, the
Commitments shall automatically terminate and the principal of the Loans then
outstanding, together with accrued interest thereon and all fees and other
obligations of the Borrowers accrued hereunder, shall automatically become due
and payable, without presentment, demand, protest or other notice of any kind,
all of which are hereby waived by each Borrower; and in the case of any event
with respect to any Borrowing Subsidiary described in clause (h) or (i) of
this Article, (i) the eligibility of such Borrowing Subsidiary to borrow shall
thereupon terminate and (ii) the Loans of such Borrowing Subsidiary shall
become immediately due and payable, together with accrued interest thereon and
all fees and other obligations thereunder of such Borrowing Subsidiary accrued
thereunder, without presentment, demand, protest or other notice of any kind,
all of which are hereby waived by each Borrowing Subsidiary.

ARTICLE 8

THE ADMINISTRATIVE AGENT

     Each of the Lenders hereby irrevocably appoints the Administrative Agent
as its agent 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, together with such actions and powers as are
reasonably incidental thereto.

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     The bank 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 such bank
and its Affiliates may accept deposits from, lend money to and generally engage
in any kind of business with the Company or any Subsidiary or other Affiliate
thereof as if it were not the Administrative Agent hereunder.

     The Administrative Agent shall not have any duties or obligations except
those expressly set forth herein. Without limiting the generality of the
foregoing, (a) the Administrative Agent shall not be subject to any fiduciary
or other implied duties, regardless of whether a Default has occurred and is
continuing, (b) the Administrative Agent shall not have any duty to take any
discretionary action or exercise any discretionary powers, except discretionary
rights and powers expressly contemplated hereby that the Administrative Agent
is required to exercise in writing as directed by the Required Lenders, and (c)
except as expressly set forth herein, the Administrative Agent shall not have
any duty to disclose, and shall not be liable for the failure to disclose, any
information relating to the Company or any of its Subsidiaries that is
communicated to or obtained by the bank serving as 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 with the consent or at the
request of the Required Lenders or in the absence of its own gross negligence
or willful misconduct. The Administrative Agent shall be deemed not to have
knowledge of any Default unless and until written notice thereof is given to
the Administrative Agent by a Borrower or a Lender, and 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 Agreement or any Borrowing Subsidiary Agreement, (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,
(iv) the validity, enforceability, effectiveness or genuineness of this
Agreement or any Borrowing Subsidiary Agreement or any other agreement,
instrument or document, or (v) the satisfaction of any condition set forth in
Article 4 or elsewhere herein, other than to confirm receipt of items
expressly required to be delivered to the 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 believed by it to be
genuine and to have been signed or sent 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 be made by the proper Person, and shall not
incur any liability for relying thereon. The Administrative Agent may consult
with legal counsel (who may be counsel for any Borrower), independent
accountants and other experts selected by

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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.

     The Administrative Agent may perform any and all of its duties and
exercise its rights and powers 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 through their respective Related Parties. The exculpatory provisions of
the preceding paragraphs 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.

     Subject to the appointment and acceptance of a successor Administrative
Agent as provided in this paragraph, the Administrative Agent may resign at any
time by notifying the Lenders and the Company. Upon any such resignation, the
Required Lenders shall have the right, in consultation with the Company, to
appoint a successor (and, at any time when no Default shall have occurred and
is continuing, with the prior written consent of the Company). If no 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 Administrative Agent may, on
behalf of the Lenders, appoint a successor Administrative Agent which shall be
a bank with an office in New York, New York, or an Affiliate of any such bank.
Upon the acceptance of its appointment as Administrative Agent hereunder by a
successor, such successor shall succeed to and become vested with all the
rights, powers, privileges and duties of the retiring Administrative Agent, and
the retiring Administrative Agent shall be discharged from its duties and
obligations hereunder. The fees payable by the Company to a successor
Administrative Agent shall be the same as those payable to its predecessor
unless otherwise agreed between the Company and such successor. After the
Administrative Agent’s resignation hereunder, the provisions of this Article
and Section 10.03 shall continue in effect for its benefit in respect of any
actions taken or omitted to be taken by it while it was acting as
Administrative Agent.

     Each Lender acknowledges that it has, independently and without reliance
upon the Administrative Agent or any other Lender and based on such documents
and information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Agreement. Each Lender also acknowledges that it
will, independently and without reliance upon the Administrative Agent or any
other Lender 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 Agreement, any related agreement or any
document furnished hereunder or thereunder.

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     None of the Syndication Agents and the Documentation Agents, in their
capacities as such, shall have any duties or obligations of any kind under this
Agreement.

ARTICLE 9

GUARANTEE

     In order to induce the Lenders to extend credit hereunder, the Company
hereby irrevocably and unconditionally guarantees, as a primary obligor and not
merely as a surety, the Obligations. The Company further agrees that the due
and punctual payment of the Obligations may be extended or renewed, in whole or
in part, without notice to or further assent from it, and that it will remain
bound upon its Guarantee hereunder notwithstanding any such extension or
renewal of any Obligation.

     The Company waives presentment to, demand of payment from and protest to
any Borrowing Subsidiary of any of the Obligations, and also waives notice of
acceptance of its obligations and notice of protest for nonpayment. The
obligations of the Company hereunder shall not be affected by (a) the failure
of any Lender or the Administrative Agent to assert any claim or demand or to
enforce any right or remedy against any Borrowing Subsidiary under the
provisions of this Agreement or otherwise; (b) any rescission, waiver,
amendment or modification of any of the terms or provisions of this Agreement,
any Borrowing Subsidiary Agreement or any other agreement; or (c) the failure
of any Lender to exercise any right or remedy against any Borrowing Subsidiary.

     The Company further agrees that its agreement hereunder constitutes a
promise of payment when due (whether or not any bankruptcy or similar
proceeding shall have stayed the accrual or collection of any of the
Obligations or operated as a discharge thereof) and not merely of collection,
and waives any right to require that any resort be had by any Lender to any
balance of any deposit account or credit on the books of any Lender in favor of
any Borrower or any other person.

     The obligations of the Company hereunder shall not be subject to any
reduction, limitation, impairment or termination for any reason, and shall not
be subject to any defense or setoff, counterclaim, recoupment or termination
whatsoever, by reason of the invalidity, illegality or unenforceability of the
Obligations, any impossibility in the performance of the Obligations or
otherwise. Without limiting the generality of the foregoing, the obligations
of the Company hereunder shall not be discharged or impaired or otherwise
affected by the failure of the Administrative Agent or any Lender to assert any
claim or demand or to enforce any remedy under this Agreement or any other
agreement, by any waiver or modification in respect of any thereof, by any
default, failure or delay, willful

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or otherwise, in the performance of the Obligations, or by any other act
or omission which may or might in any manner or to any extent vary the risk of
the Company or otherwise operate as a discharge of the Company or any other
Borrower as a matter of law or equity.

     The Company further agrees that its obligations hereunder shall continue
to be effective or be reinstated, as the case may be, if at any time payment,
or any part thereof, of any Obligation is rescinded or must otherwise be
restored by the Administrative Agent or any Lender upon the bankruptcy or
reorganization of any Borrower or otherwise.

     In furtherance of the foregoing and not in limitation of any other right
which the Administrative Agent or any Lender may have at law or in equity
against the Company by virtue hereof, upon the failure of any Borrowing
Subsidiary to pay any Obligation when and as the same shall become due, whether
at maturity, by acceleration, after notice of prepayment or otherwise, the
Company hereby promises to and will, upon receipt of written demand by the
Administrative Agent, forthwith pay, or cause to be paid, in cash the amount of
such unpaid Obligation. The Company further agrees that if payment in respect
of any Obligation shall be due in a currency other than dollars and/or at a
place of payment other than New York and if, by reason of any Change in Law,
disruption of currency or foreign exchange markets, war or civil disturbance or
similar event, payment of such Obligation in such currency or at such place of
payment shall be impossible or, in the judgment of any applicable Lender, not
consistent with the protection of its rights or interests, then, at the
election of any applicable Lender, the Company shall make payment of such
Obligation in dollars (based upon the applicable exchange rate in effect on the
date of payment) and/or in New York, and shall indemnify such Lender against
any losses or expenses that it shall sustain as a result of such alternative
payment.

     Upon payment by the Company of any Obligation, each Lender shall, in a
reasonable manner, assign the amount of such Obligation owed to it and so paid
to the Company, such assignment to be pro tanto to the extent to which the
Obligation in question was discharged by the Company, or make such disposition
thereof as the Company shall direct (all without recourse to any Lender and
without any representation or warranty by any Lender).

     Upon payment by the Company of any sums as provided above, all rights of
Company against any Borrowing Subsidiary arising as a result thereof by way of
right of subrogation or otherwise shall in all respects be subordinated and
junior in right of payment to the prior indefeasible payment in full of all the
Obligations owed by such Borrowing Subsidiary to the Lenders.

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ARTICLE 10

MISCELLANEOUS

     Section 10.01. Notices. (a) Except in the case of notices and other
communications expressly permitted to be given by telephone (and subject to
paragraph (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 telecopy, as
follows:

     (i) if to any Borrower, to it in care of the Company at 103 JFK
Parkway, Short Hills, New Jersey 07078, Attention of Treasurer (Telecopy
No. 866-449-0622), with a copy to Attention of General Counsel at the
same address (Telecopy No. 866-561-5154);

     (ii) if to the Administrative Agent, to Loan and Agency Services,
JPMorgan Chase Bank, 1111 Fannin, 10th floor, Houston, Texas 77002,
Attention of Denise Ramon (Telecopy No. (713) 750-2938), with a copy to
JPMorgan Chase Bank, 131 South Dearborn, Chicago, Illinois, Attention of
Sarah White (Telecopy No. (973) 439-5019);

     (iii) if to the London Agent, to it at J.P. Morgan Europe Limited,
125 London Wall, London, England EC2Y 5AJ, Attention of Nichola Hall
(Telecopy No. 011-44-207-777-2360), with a copy to JPMorgan Chase Bank,
131 South Dearborn, Chicago, Illinois, Attention of Sarah White
(Telecopy No. (973) 439-5019);

     (iv) if to the Swingline Lender, to Loan and Agency Services,
JPMorgan Chase Bank, 1111 Fannin, 10th floor, Houston, Texas 77002,
Attention of Denise Ramon (Telecopy No. (713) 750-2938), with a copy to
JPMorgan Chase Bank, 131 South Dearborn, Chicago, Illinois, Attention of
Sarah White (Telecopy No. (973) 439-5019); and

     (v) if to any other Lender, to it at its address (or telecopy
number) set forth in its Administrative Questionnaire.

     (b) Notices and other communications to the Lenders hereunder may be
delivered or furnished by electronic communications pursuant to procedures
approved by the Administrative Agent; provided that the foregoing shall not
apply to notices pursuant to Article 2 unless otherwise agreed by the
Administrative Agent and the applicable Lender. The Administrative Agent or
the Company 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.

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     (c) Any party hereto may change its address or telecopy number for notices
and other communications hereunder by notice to the other parties hereto. All
notices and other communications given to any party hereto in accordance with
the provisions of this Agreement shall be deemed to have been given on the date
of receipt.

     Section 10.02. Waivers; Amendments. (a) No failure or delay by the
Administrative Agent or any Lender in exercising any right or power hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of
any such right or power, or any abandonment or discontinuance of steps to
enforce such a right or power, preclude any other or further exercise thereof
or the exercise of any other right or power. The rights and remedies of the
Administrative Agent and the Lenders hereunder are cumulative and are not
exclusive of any rights or remedies that they would otherwise have. No waiver
of any provision of this Agreement or consent to any departure by any Borrower
therefrom shall in any event be effective unless the same shall be permitted by
paragraph (b) of this Section, and then such waiver or consent shall be
effective only in the specific instance and for the purpose for which given.
Without limiting the generality of the foregoing, the making of a Loan shall
not be construed as a waiver of any Default, regardless of whether the
Administrative Agent or any Lender may have had notice or knowledge of such
Default at the time.

     (b) Neither this Agreement nor any Borrowing Subsidiary Agreement nor any
provision hereof or thereof may be waived, amended or modified except pursuant
to an agreement or agreements in writing entered into by the Company and the
Required Lenders or by the Company and the Administrative Agent with the
consent of the Required Lenders (and, in the case of a Borrowing Subsidiary
Agreement, the applicable Borrowing Subsidiary); provided that no such
agreement shall (i) increase or decrease the Commitment of any Lender (except
for a ratable decrease in the Commitments of all Lenders) without the written
consent of such Lender, (ii) reduce the principal amount of any Loan or reduce
the rate of interest thereon, or reduce any fees payable hereunder, without the
written consent of each Lender directly affected thereby, (iii) postpone the
scheduled date of payment of the principal amount of any Loan, or any interest
thereon, or any fees payable hereunder, or reduce the amount of, waive or
excuse any such payment, or postpone the scheduled date of expiration of any
Commitment, without the written consent of each Lender directly affected
thereby, (iv) change Section 2.17(b) or Section 2.17(c) in a manner that
would alter the pro rata sharing of payments required thereby, without the
written consent of each Lender, (v) change any of the provisions of this
Section or the definition of “Required Lenders” or any other provision hereof
specifying the number or percentage of Lenders required to waive, amend or
modify any rights hereunder or make any determination or grant any consent
hereunder, without the written consent of each Lender or (vi) release the
Company from, or limit or

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condition, its obligations under Article 9, without the written consent
of each Lender; provided further that no such agreement shall amend, modify or
otherwise affect the rights or duties of the Administrative Agent or the
Swingline Lender hereunder without the prior written consent of the
Administrative Agent or the Swingline Lender, as the case may be.

     Section 10.03. Expenses; Indemnity; Damage Waiver. (a) The Company 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 and
administration of this Agreement or any Borrowing Subsidiary Agreement or any
amendments, modifications or waivers of the provisions hereof or thereof
(whether or not the transactions contemplated hereby or thereby shall be
consummated) and (ii) all reasonable out-of-pocket expenses incurred by the
Administrative Agent or any Lender, including the fees, charges and
disbursements of no more than one counsel for the Administrative Agent and one
counsel for the Lenders (unless representation of the Lenders by the same
counsel would be inappropriate due to actual or potential conflicts of
interests among them, in which case the Lenders shall have right to separate
counsel, at the expense of the Company) in connection with the enforcement or
protection of its rights in connection with this Agreement or any Borrowing
Subsidiary Agreement, including its rights under this Section, or the Loans
made hereunder, including in connection with any workout, restructuring or
negotiations in respect thereof.

     (b) The Company shall indemnify the Administrative Agent and each Lender,
and each Related Party of any of the foregoing Persons (each such Person being
called an “Indemnitee”) against, and hold each Indemnitee harmless from, any
and all losses, claims, damages, liabilities and related expenses, including
the fees, charges and disbursements of any counsel for any Indemnitee, incurred
by or asserted against any Indemnitee arising out of, in connection with, or as
a result of (i) the execution or delivery of this Agreement or any Borrowing
Subsidiary Agreement or any agreement or instrument contemplated hereby or
thereby, the performance by the parties hereto or thereto of their respective
obligations hereunder or thereunder or the consummation of the Transactions or
any other transactions contemplated hereby, (ii) any Loan or the use of the
proceeds therefrom, (iii) any actual or alleged presence or release of
Hazardous Materials on or from any property owned or operated by the Company or
any of its Subsidiaries, or any Environmental Liability related in any way to
the Company or any of its Subsidiaries, or (iv) any actual or prospective
claim, litigation, investigation or proceeding relating to any of the
foregoing, whether based on contract, tort or any other theory and regardless
of whether any Indemnitee is a party thereto; provided that such indemnity
shall not, as to any Indemnitee, be available to the extent that such losses,
claims, damages, liabilities or related

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expenses result from the gross negligence or willful misconduct of such
Indemnitee.

     (c) To the extent that the Company fails to pay any amount required to be
paid by it to the Administrative Agent or the Swingline Lender under paragraph
(a) or (b) of this Section, each Lender severally agrees to pay to the
Administrative Agent or the Swingline Lender, as the case may be, such Lender’s
Applicable Percentage (determined as of the time that the applicable
unreimbursed expense or indemnity payment is sought) of such unpaid amount;
provided that the unreimbursed expense or indemnified loss, claim, damage,
liability or related expense, as the case may be, was incurred by or asserted
against the Administrative Agent or the Swingline Lender in its capacity as
such.

     (d) To the extent permitted by applicable law, no Borrower shall assert,
and each Borrower 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 Agreement or any Borrowing Subsidiary Agreement or any
agreement or instrument contemplated hereby or thereby, the Transactions, any
Loan or the use of the proceeds thereof.

     (e) All amounts due under this Section shall be payable promptly after
written demand therefor.

     Section 10.04. Successors and Assigns. (a) The provisions of this
Agreement shall be binding upon and inure to the benefit of the parties hereto
(including any Borrowing Subsidiaries) and their respective successors and
assigns permitted hereby, except that (i) the Borrower may not assign or
otherwise transfer any of its rights or obligations hereunder or under any
Borrowing Subsidiary Agreement without the prior written consent of each Lender
(and any attempted assignment or transfer by any Borrower without such consent
shall be null and void) and (ii) no Lender may assign or otherwise transfer its
rights or obligations hereunder except in accordance with this Section.
Nothing in this 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 paragraph
(c) of this Section) and, to the extent expressly contemplated hereby, the
Related Parties of each of the Administrative Agent and the Lenders) any legal
or equitable right, remedy or claim under or by reason of this Agreement.

     (b) (i) Subject to the conditions set forth in paragraph (b)(ii) below,
any Lender may assign to one or more assignees all or a portion of its rights
and obligations under this Agreement (including all or a portion of its
Commitment and the Loans at the time owing to it) with the prior written
consent (such consent not to be unreasonably withheld) of:

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     (A) the Company, provided that no consent of the Company
shall be required for an assignment to a Lender, an Affiliate of
a Lender, an Approved Fund or, if an Event of Default has
occurred and is continuing, any other assignee; and

     (B) the Administrative Agent.

     (ii) Assignments shall be subject to the following additional
conditions:

     (A) except in the case of any assignment to a Lender or an
Affiliate of a Lender or an assignment of the entire remaining
amount of the assigning Lender’s Commitment, the amount of the
Commitment 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) shall not be less than $5,000,000 unless
each of the Company and the Administrative Agent otherwise
consent; provided that no consent of the Company shall be
required if an Event of Default has occurred and is continuing;

     (B) each partial assignment shall be made as an assignment
of a proportionate part of all the assigning Lender’s rights and
obligations under this Agreement;

     (C) the parties to each assignment shall execute and
deliver to the Administrative Agent an Assignment and
Assumption, together with a processing and recordation fee of
$3,500;

     (D) the assignee, if it shall not be a Lender, shall
deliver to the Administrative Agent an Administrative
Questionnaire.

     For the purposes of this Section 10.04(b), the term “Approved Fund” has
the following meaning:

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

     (iii) Subject to acceptance and recording pursuant to paragraph
(b)(i) of this Section, from and after the effective date specified in
each

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Assignment and Assumption, the assignee thereunder shall be a party
hereto and, to the extent of the interest assigned by such Assignment
and Assumption, have the rights and obligations of a Lender under this
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 Agreement (and, in the case of an
Assignment and Assumption covering all of the assigning Lender’s rights
and obligations under this Agreement, such Lender shall cease to be a
party hereto but shall continue to be entitled to the benefits of
Section 2.14, Section 2.15, Section 2.16 and Section 10.03).
Notwithstanding any other provision of this Agreement, if any Lender
shall assign any of its rights or obligations hereunder to any assignee
(including an Affiliate of such Lender) that, but for this sentence,
would be entitled, immediately following such assignment, to claim a
greater amount than such assigning Lender under Section 2.14, Section
2.15 and Section 2.16, such assignee shall not have the right to claim
such greater amount; provided that nothing in this sentence shall limit
the right of any such assignee to make claims (x) for amounts not in
excess of those that could have been claimed by the assigning Lender,
(y) to the extent such claims arise from one or more Changes in Law, or
from the designation of one or more Borrowing Subsidiaries, or (z) from
a change in the office, branch or other place of business from which any
payment hereunder is made by any Borrower, in each case after the date
of such assignment. Any assignment or transfer by a Lender of rights or
obligations under this Agreement that does not comply with this
paragraph shall be treated for purposes of this Agreement as a sale by
such Lender of a participation in such rights and obligations in
accordance with and subject to the limitations set forth in, paragraph
(c) of this Section.

     (iv) The Administrative Agent, acting for this purpose as an agent
of the Borrowers shall maintain at one of its offices in The City of New
York 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 Commitment of, and principal amount of the Loans owing to, each
Lender pursuant to the terms hereof from time to time (the “Register”).
The entries in the Register shall be conclusive, and the Borrowers, the
Administrative Agent and the Lenders may treat each Person whose name is
recorded in the Register pursuant to the terms hereof as a Lender
hereunder for all purposes of this Agreement, notwithstanding notice to
the contrary. The Register shall be available for inspection by the
Company and any Lender, at any reasonable time and from time to time
upon reasonable prior notice.

     (v) Upon its receipt of a duly completed Assignment and Assumption
executed by an assigning Lender and an assignee, the

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assignee’s completed Administrative Questionnaire (unless the
assignee shall already be a Lender hereunder), the processing and
recordation fee referred to in paragraph (b) of this Section and any
written consent to such assignment required by paragraph (b) of this
Section, the Administrative Agent shall accept such Assignment and
Assumption and record the information contained therein in the Register.
No assignment shall be effective for purposes of this Agreement unless
it has been recorded in the Register as provided in this paragraph.

     (c) (i) Any Lender may, without the consent of any Borrower, the
Administrative Agent or the Swingline Lender, sell participations to one or
more banks or other entities (a “Participant”) in all or a portion of such
Lender’s rights and obligations under this Agreement (including all or a
portion of its Commitment and the Loans owing to it); provided that (A) such
Lender’s obligations under this Agreement shall remain unchanged, (B) such
Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations and (C) the Borrowers, the Administrative Agent
and the other Lenders shall continue to deal solely and directly with such
Lender in connection with such Lender’s rights and obligations under this
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 Agreement and to approve any amendment, modification or waiver of
any provision of this Agreement; provided that such agreement or instrument may
provide that such Lender will not, without the consent of the Participant,
agree to any amendment, modification or waiver described in the first proviso
to Section 10.02(b) that affects such Participant. Subject to paragraph
(c)(ii) of this Section, each Borrower agrees that each Participant shall be
entitled to the benefits of Section 2.14, Section 2.15, and Section 2.16, to
the same extent as if it were a Lender and had acquired its interest by
assignment pursuant to paragraph (b) of this Section. To the extent permitted
by law, each Participant also shall be entitled to the benefits of Section
10.08 as though it were a Lender, provided such Participant agrees to be
subject to Section 2.17(c) as though it were a Lender.

     (ii) A Participant shall not be entitled to receive any greater
payment under Section 2.14, Section 2.15, and Section 2.16 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 Company’s prior
written consent. A Participant that would be a Foreign Lender if it
were a Lender shall not be entitled to the benefits of Section 2.16
unless the Company is notified of the participation sold to such
Participant and such Participant agrees, for the benefit of the
Borrowers, to comply with Section 2.16(e) as though it were a Lender.

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     (d) Any Lender may at any time pledge or assign a security interest in all
or any portion of its rights under this Agreement to secure obligations of such
Lender, including any such pledge or assignment to a Federal Reserve Bank, and
this Section shall not apply to any such pledge or assignment of a security
interest; provided that no such pledge or assignment of a security interest
shall release a Lender from any of its obligations hereunder or substitute any
such assignee for such Lender as a party hereto.

     (e) Notwithstanding anything to the contrary contained herein, any Lender
(a “Granting Lender”) may grant to a special purpose funding vehicle (an “SPC”)
of such Granting Lender, identified as such in writing from time to time by the
Granting Lender to the Administrative Agent and the Company, the option to
provide to the Company all or any part of any Loan that such Granting Lender
would otherwise be obligated to make to the Borrower pursuant to Section 2.01
or Section 2.04, provided that (i) nothing herein shall constitute a
commitment to make any Loan by any SPC, (ii) if an SPC elects not to exercise
such option or otherwise fails to provide all or any part of such Loan, the
Granting Lender shall be obligated to make such Loan pursuant to the terms
hereof and (iii) all credit decisions (including without limitation any
decisions with respect to amendments and waivers) will continue to be made by
the Granting Lender. The making of a Loan by an SPC hereunder shall utilize
the Commitment of the Granting Lender (and, if such Loan is a Competitive Loan,
shall be deemed to utilize the Commitments of all the Lenders) to the same
extent, and as if, such Loan were made by the Granting Lender. Each party
hereto hereby agrees that no SPC shall be liable for any payment under this
Agreement for which a Lender would otherwise be liable, for so long as, and to
the extent, the related Granting Lender makes such payment. In furtherance of
the foregoing, each party hereto hereby agrees that, prior to the date that is
one year and one day after the payment in full of all outstanding senior
indebtedness 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 proceedings or similar proceedings under
the laws of the United States or any State thereof. In addition,
notwithstanding anything to the contrary contained in this Section, any SPC may
(i) with notice to, but without the prior written consent of, the Company or
the Administrative Agent and without paying any processing fee therefor, assign
all or a portion of its interests in any Loans to its Granting Lender in
connection with liquidity and/or credit facilities to or for the account of
such SPC to fund such Loans and (ii) subject to the provisions of Section
10.12, disclose on a confidential basis any non-public information relating to
its Loans to any rating agency, commercial paper dealer or provider of a
surety, guarantee or credit or liquidity enhancement to such SPC.

     Section 10.05. Survival. All covenants, agreements, representations and
warranties made by the Borrowers herein and in the Borrowing Subsidiary
Agreements and the certificates or other instruments delivered in connection
with

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or pursuant to this Agreement shall be considered to have been relied upon
by the other parties hereto and shall survive the execution and delivery of
this Agreement and the making of any Loans, regardless of any investigation
made by any such other party or on its behalf and notwithstanding that the
Administrative Agent or any Lender may have had notice or knowledge of any
Default (other than a Default which has been waived in accordance with Section
10.02) or incorrect representation or warranty at the time any credit is
extended hereunder, and shall continue in full force and effect as long as the
principal of or any accrued interest on any Loan or any fee or any other amount
payable under this Agreement is outstanding and unpaid and so long as the
Commitments have not expired or terminated. The provisions of Section 2.14,
Section 2.15, Section 2.16 and Section 10.03 and Article 8 shall survive
and remain in full force and effect regardless of the consummation of the
transactions contemplated hereby, the repayment of the Loans, the expiration or
termination of the Commitments or the termination of this Agreement or any
provision hereof.

     Section 10.06. Counterparts; Integration; Effectiveness. This Agreement
may be executed in counterparts (and by different parties hereto on different
counterparts), each of which shall constitute an original, but all of which
when taken together shall constitute a single contract. This Agreement and any
separate letter agreements with respect to fees payable to the Administrative
Agent constitute the entire contract among the parties relating to the subject
matter hereof and supersede any and all previous agreements and understandings,
oral or written, relating to the subject matter hereof. Except as provided in
Section 4.01, this Agreement shall become effective when it shall have been
executed by the Administrative Agent and when the Administrative Agent shall
have received counterparts hereof which, when taken together, bear the
signatures of each of the other parties hereto (excluding any Borrowing
Subsidiaries), and thereafter shall be binding upon and inure to the benefit of
the parties hereto (including any Borrowing Subsidiaries) and their respective
successors and assigns. Delivery of an executed counterpart of a signature
page of this Agreement by telecopy shall be effective as delivery of a manually
executed counterpart of this Agreement.

     Section 10.07. Severability. Any provision of this Agreement held to be
invalid, illegal or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such invalidity, illegality or
unenforceability without affecting the validity, legality and enforceability of
the remaining provisions hereof; and the invalidity of a particular provision
in a particular jurisdiction shall not invalidate such provision in any other
jurisdiction.

     Section 10.08. Right of Setoff. If an Event of Default shall have
occurred and be continuing, each Lender is hereby authorized at any time and
from time to time, to the fullest extent permitted by law, to set off and apply
any and all deposits (general or special, time or demand, provisional or final)
at any time held and other indebtedness at any time owing by such Lender to or
for the credit or

78

 

the account of any Borrower against any of and all the amounts then due
and owing by the Borrower under this Agreement to such Lender, irrespective of
whether or not such Lender shall have made any demand under this Agreement.
The rights of each Lender under this Section are in addition to other rights
and remedies (including other rights of setoff) which such Lender may have.

     Section 10.09. Governing Law; Jurisdiction; Consent to Service of
Process. (a) This Agreement shall be construed in accordance with and governed
by the law of the State of New York.

     (b) Each Borrower hereby irrevocably and unconditionally submits, for
itself and its property, to the nonexclusive jurisdiction of the Supreme Court
of the State of New York sitting in New York County and of the United States
District Court of the Southern District of New York, and any appellate court
from any thereof, in any action or proceeding arising out of or relating to
this Agreement, or for recognition or enforcement of any judgment, and each of
the parties hereto hereby irrevocably and unconditionally agrees that all
claims in respect of any such action or proceeding may be heard and determined
in such New York State or, to the extent permitted by 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 Agreement shall affect any right that the Administrative Agent
or any Lender may otherwise have to bring any action or proceeding relating to
this Agreement against any Borrower or its properties in the courts of any
jurisdiction.

     (c) Each Borrower hereby irrevocably and unconditionally waives, to the
fullest extent it may legally and effectively do so, any objection which it may
now or hereafter have to the laying of venue of any suit, action or proceeding
arising out of or relating to this Agreement in any court referred to in
paragraph (b) of this Section. Each of the parties hereto hereby irrevocably
waives, to the fullest extent permitted by law, the defense of an inconvenient
forum to the maintenance of such action or proceeding in any such court.

     (d) Each party to this Agreement (including any Borrowing Subsidiaries)
irrevocably consents to service of process in the manner provided for notices
in Section 10.01. Nothing in this Agreement will affect the right of any
party to this Agreement to serve process in any other manner permitted by law.

     Section 10.10. Waiver of Jury Trial. EACH PARTY HERETO HEREBY 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 AGREEMENT OR THE TRANSACTIONS

79

 

CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).
EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF
ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY
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 AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION.

     Section 10.11. Headings. Article and Section headings and the Table of
Contents used herein are for convenience of reference only, are not part of
this Agreement and shall not affect the construction of, or be taken into
consideration in interpreting, this Agreement.

     Section 10.12. Confidentiality. Each of the Administrative Agent and the
Lenders agrees to maintain the confidentiality of the Information (as defined
below), except that Information may be disclosed (a) to its and its Affiliates’
directors, officers, employees and agents, including accountants, legal counsel
and other advisors (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, (c) to the extent required by
applicable laws or regulations or by any subpoena or similar legal process, (d)
to any other party to this Agreement, (e) in connection with the exercise of
any remedies hereunder or any suit, action or proceeding relating to this
Agreement or the enforcement of rights hereunder, (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 Agreement or (ii)
any actual or prospective counterparty (or its advisors) to any swap or
derivative transaction relating to the Company and its obligations, (g) with
the consent of the Company or (h) to the extent such Information (i) becomes
publicly available other than as a result of a breach of this Section or (ii)
becomes available to the Administrative Agent or any Lender on a
nonconfidential basis from a source other than the Company. For the purposes
of this Section, “Information” means all information received from the Company
relating to the Company or its business, other than any such information that
is available to the Administrative Agent or any Lender on a nonconfidential
basis prior to disclosure by the Company. 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.

80

 

     Section 10.13. Interest Rate Limitation. Notwithstanding anything herein
to the contrary, if at any time the interest rate applicable to any Loan,
together with all fees, charges and other amounts which are treated as interest
on such Loan under applicable law (collectively the “Charges”), shall exceed
the maximum lawful rate (the “Maximum Rate”) which may be contracted for,
charged, taken, received or reserved by the Lender holding such Loan in
accordance with applicable law, the rate of interest payable in respect of such
Loan hereunder, together with all Charges payable in respect thereof, shall be
limited to the Maximum Rate and, to the extent lawful, the interest and Charges
that would have been payable in respect of such Loan but were not payable as a
result of the operation of this Section shall be cumulated and the interest and
Charges payable to such Lender in respect of other Loans or periods shall be
increased (but not above the Maximum Rate therefor) until such cumulated
amount, together with interest thereon at the Federal Funds Effective Rate to
the date of repayment, shall have been received by such Lender.

     Section 10.14. Conversion of Currencies. (a) If, for the purpose of
obtaining judgment in any court, it is necessary to convert a sum owing
hereunder in one currency into another currency, each party hereto (including
any Borrowing Subsidiary) agrees, to the fullest extent that it may effectively
do so, that the rate of exchange used shall be that at which in accordance with
normal banking procedures in the relevant jurisdiction the first currency could
be purchased with such other currency on the Business Day immediately preceding
the day on which final judgment is given.

     (b) The obligations of each Borrower in respect of any sum due to any
party hereto or any holder of the obligations owing hereunder (the “Applicable
Creditor”) shall, notwithstanding any judgment in a currency (the “Judgment
Currency”) other than the currency in which such sum is stated to be due
hereunder (the “Agreement Currency”), be discharged only to the extent that, on
the Business Day following receipt by the Applicable Creditor of any sum
adjudged to be so due in the Judgment Currency, the Applicable Creditor may in
accordance with normal banking procedures in the relevant jurisdiction purchase
the Agreement Currency with the Judgment Currency; if the amount of the
Agreement Currency so purchased is less than the sum originally due to the
Applicable Creditor in the Agreement Currency, such Borrower agrees, as a
separate obligation and notwithstanding any such judgment, to indemnify the
Applicable Creditor against such loss. The obligations of the Borrowers
contained in this Section 10.14 shall survive the termination of this
Agreement and the payment of all other amounts owing hereunder.

     Section 10.15. European Economic and Monetary Union. (a) Definitions.
In this Section 10.15 and in each other provision of this Agreement to which
reference is made in this Section 10.15 expressly or impliedly, the following
terms have the meanings given to them in this Section 10.15:

81

 

     “Euro” means the single currency of Participating Member States;
and

     “Participating Member States” means those members of the European
Union from time to time which adopt a single, shared currency.

     (b) Effectiveness of Provisions. If and to the extent that any provision
of paragraphs (c) to (g) relates to any state (or the currency of such state)
that is not a Participating Member State on the Effective Date, such provision
shall become effective in relation to such state (and the currency of such
state) at and from the date on which such state becomes a Participating Member
State.

     (c) Loans. Any Loan in the currency of a Participating Member State shall
be made in Euros.

     (d) Payments to the Administrative Agent. Sections 2.06 and 2.17 shall
be construed so that, in relation to the payment of any amount of Euros, such
amount shall be made available to the Administrative Agent in immediately
available, freely transferable, cleared funds to such account with such bank in
Frankfurt am Main, Germany (or such other principal financial center in such
Participating Member State) as the Administrative Agent may from time to time
nominate for this purpose.

     (e) Payments by the Administrative Agent Generally. With respect to the
payment of any amount denominated in Euros, the Administrative Agent shall not
be liable to any Borrower or any of the Lenders in any way whatsoever for any
delay, or the consequences of any delay, in the crediting to any account of any
amount required by this Agreement to be paid by the Administrative Agent if the
Administrative Agent shall have taken all relevant steps to achieve, on the
date required by this Agreement, the payment of such amount in immediately
available, freely transferable, cleared funds (in Euros) to the account with
the bank in the principal financial center in the Participating Member State
which such Borrower or, as the case may be, any Lender shall have specified for
such purpose. In this paragraph (e), “all relevant steps” means all such steps
as may be prescribed from time to time by the regulations or operating
procedures of such clearing or settlement system as the Administrative Agent
may from time to time determine for the purpose of clearing or settling
payments of the Euro.

     (f) Basis of Accrual. If the basis of accrual of interest or fees
expressed in this Agreement with respect to the currency of any state that
becomes a Participating Member State shall be inconsistent with any convention
or practice in the London Interbank Market or, as the case may be, the Paris
Interbank Market for the basis of accrual of interest or fees in respect of the
Euro, such convention or practice shall replace such expressed basis effective
as of and from the date on which such state becomes a Participating Member
State; provided,

82

 

that if any Loan in the currency of such state is outstanding immediately
prior to such date, such replacement shall take effect, with respect to such
Loan, at the end of the then current Interest Period.

     (g) Consequential Changes. Each provision of this Agreement shall be
subject to such reasonable changes of construction as the Administrative Agent
may from time to time reasonably specify to be necessary or appropriate to
reflect the introduction of a Participating Member State in accordance with
customary practices in the market.

     Section 10.16. USA Patriot Act. Each Lender hereby notifies the Company
that pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L.
107-56 (signed into law October 26, 2001)), it is required to obtain, verify
and record information that identifies the Company, which information includes
the name and address of the Company and other information that will allow such
Lender to identify the Company in accordance with said Act.

83

 

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

	 	 	 	 	 
	 	THE DUN & BRADSTREET

     CORPORATION

 	 
	 	By:  	/S/  KATHLEEN M. GUINNESSEY
 	 
	 	 	Title: Vice President, 	 
	 	 	          Corporate Treasurer 	 
	 

 

 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, as a 

Lender and as Administrative Agent

 	 
	 	By:  	/S/ SARAH H. WHITE
 	 
	 	 	Title: Vice President 	 
	 	 	 	 
	 

 

 

	 	 	 	 	 
	 	CITICORP USA, INC., as a 

Lender and as a Syndication Agent

 	 
	 	By:  	/S/ PAUL V. GLORIOSO
 	 
	 	 	Title: First Vice President 	 
	 	 	 	 
	 

 

 

	 	 	 	 	 
	 	THE BANK OF TOKYO-MITSUBISHI

TRUST COMPANY, as a Lender and as a 

Syndication Agent

 	 
	 	By:  	/S/  A. BERNSTEIN
 	 
	 	 	Title: Asst. Vice President 	 
	 	 	 	 
	 

 

 

	 	 	 	 	 
	 	THE BANK OF NEW YORK, as a Lender

and as a Documentation Agent

 	 
	 	By:  	/S/  ERNEST FUNG
 	 
	 	 	Title: Vice President 	 
	 	 	 	 
	 

 

 

	 	 	 	 	 
	 	SUNTRUST BANK, as a Lender and

as a Documentation Agent

 	 
	 	By:  	/S/  LAURA KAHN
 	 
	 	 	Title: Director, Senior Relationship  	 
	 	 	          Manager 	 
	 

 

 

	 	 	 	 	 
	 	THE NORTHERN TRUST COMPANY, as a Lender

 	 
	 	By:  	/S/  MELISSA WHITSON
 	 
	 	 	Title: Vice President 	 
	 	 	 	 
	 

 

 

	 	 	 	 	 
	 	BARCLAYS BANK PLC, as a Lender

 	 
	 	By:  	/S/  NICHOLAS A. BELL
 	 
	 	 	Title: Director 	 
	 	 	 	 
	 

 

 

	 	 	 	 	 
	 	WACHOVIA BANK, NATIONAL ASSOCIATION, as a Lender

 	 
	 	By:  	/S/  JAMES J. PETRONCHAK
 	 
	 	 	Title: Senior Vice President 	 
	 	 	 	 
	 

 

 

	 	 	 	 	 
	 	HARRIS NESBITT FINANCING, INC., as a Lender

 	 
	 	By:  	/S/  BRIAN L. BANKE
 	 
	 	 	Title: Managing Director 	 
	 	 	 	 
	 

 

 

	 	 	 	 	 
	 	WELLS FARGO BANK NATIONAL 

ASSOCIATION, as a Lender

 	 
	 	By:  	/S/  PETER M. ANGELICA
 	 
	 	 	Title: Vice President 	 
	 	 	 	 
	 

 

 

SCHEDULE 2.01(a)

Facility Commitments

	 	 	 	 	 
	Lender
	 	Commitment

	JPMorgan Chase Bank
	 	$	40,000,000.00	 
	The Bank of Tokyo-Mitsubishi Trust Company
	 	$	35,000,000.00	 
	Citicorp USA, Inc.
	 	$	35,000,000.00	 
	SunTrust Bank
	 	$	35,000,000.00	 
	The Bank of New York
	 	$	35,000,000.00	 
	The Northern Trust Company
	 	$	30,000,000.00	 
	Barclays Bank PLC
	 	$	30,000,000.00	 
	Wachovia Bank, National Association
	 	$	30,000,000.00	 
	Harris Nesbit Financing, Inc.
	 	$	15,000,000.00	 
	Wells Fargo Bank National Association
	 	$	15,000,000.00	 
	 
	 	 	
 	 
	 
	 	$	300,000,000.00	 
	 
	 	 	
 	 

 

 

SCHEDULE 2.01(b)

Designated Currency Commitments

	 	 	 	 	 
	Designated Currency Lender
	 	Commitment

	JPMorgan Chase Bank
	 	$	13,333,332	 
	The Bank of Tokyo-Mitsubishi Trust Company
	 	$	11,666,667	 
	Citicorp USA, Inc.
	 	$	11,666,667	 
	SunTrust Bank
	 	$	11,666,667	 
	The Bank of New York
	 	$	11,666,667	 
	The Northern Trust Company
	 	$	10,000,000	 
	Barclays Bank PLC
	 	$	10,000,000	 
	Wachovia Bank, National Association
	 	$	10,000,000	 
	Harris Nesbit Financing, Inc.
	 	$	5,000,000	 
	Wells Fargo Bank National Association
	 	$	5,000,000	 
	 
	 	 	
 	 
	 
	 	$	100,000,000.00	 
	 
	 	 	
 	 

 

 

SCHEDULE 2.01(c)

Yen Commitments

	 	 	 	 	 
	Yen Lender
	 	Commitment

	JPMorgan Chase Bank
	 	$	3,333,332	 
	The Bank of Tokyo-Mitsubishi Trust Company
	 	$	2,916,667	 
	Citicorp USA, Inc.
	 	$	2,916,667	 
	SunTrust Bank
	 	$	2,916,667	 
	The Bank of New York
	 	$	2,916,667	 
	The Northern Trust Company
	 	$	2,500,000	 
	Barclays Bank PLC
	 	$	2,500,000	 
	Wachovia Bank, National Association
	 	$	2,500,000	 
	Harris Nesbit Financing, Inc.
	 	$	1,250,000	 
	Wells Fargo Bank National Association
	 	$	1,250,000	 
	 
	 	 	
 	 
	 
	 	$	25,000,000.00	 
	 
	 	 	
 	 

 

 

SCHEDULE 2.17

Payments on Multicurrency Loans

Pounds Sterling:

     New York City, New York or London, England

Euros:

     New York City, New Ypork or London, England

Japanese Yen:

     New York City, New York or London, England

 

 

SCHEDULE 3.12

	 	 	 	 	 	 	 
	 	 	 	 	Percentage
	Subsidiaries
	 	Jurisdictions
	 	Ownership

	Corinthian Holdings, Inc.
	 	Delaware	 	 	100	%
	Corinthian Leasing Corporation
	 	Delaware	 	 	100	%
	Credit Bureau (Singapore)
	 	Singapore	 	 	100	%
	D & B Group Ltd.
	 	Delaware	 	 	100	%
	D&B Acquisition Corporation
	 	Delaware	 	 	100	%
	D&B Espana S.A.
	 	Spain	 	 	100	%
	D&B Europe Ltd.
	 	England	 	 	100	%
	D&B Holdings (UK) Limited
	 	England	 	 	100	%
	D&B Information Services (M) Sdn. Bhd.
	 	Malaysia	 	 	100	%
	D&B International Consultant (Shanghai) Co. Ltd.
	 	Peoples Republic of China	 	 	100	%
	D&B Investors L.P.
	 	Delaware	 	 	71.615	%
	D&B Property Holdings, Inc.
	 	Delaware	 	 	100	%
	D&B Unterstüzungskasse GmbH
	 	Germany	 	 	100	%
	Datahouse S.p.A.
	 	Italy	 	 	100	%
	Datanet S.r.l.
	 	Italy	 	 	100	%
	DB Soliditet AB
	 	Sweden	 	 	100	%
	Dun & Bradstreet, Inc.
	 	Delaware	 	 	100	%
	Dun & Bradstreet, S.A.
	 	Peru	 	 	100	%
	Dun & Bradstreet (HK) Limited
	 	Hong Kong	 	 	100	%
	Dun & Bradstreet (S.C.S) B.V.
	 	Netherlands	 	 	100	%
	Dun & Bradstreet (Switzerland) AG
	 	Switzerland/Delaware	 	 	100	%
	Dun & Bradstreet B.V.
	 	Netherlands	 	 	100	%
	Dun & Bradstreet C.A.
	 	Venezuela	 	 	100	%
	Dun & Bradstreet Canada B.V.
	 	Netherlands	 	 	100	%
	Dun & Bradstreet Canada Holding, Ltd
	 	Canada	 	 	100	%
	Dun & Bradstreet Computer Leasing, Inc.
	 	Delaware	 	 	100	%
	Dun & Bradstreet Credit Control, Ltd.
	 	Delaware	 	 	100	%
	Dun & Bradstreet Danmark Holding A/S
	 	Denmark	 	 	100	%
	Dun & Bradstreet de Mexico
	 	Mexico	 	 	100	%
	Dun & Bradstreet de Mexico
	 	Mexico	 	 	100	%
	Dun & Bradstreet Denmark A/S
	 	Denmark	 	 	100	%
	Dun & Bradstreet Deutschland GmbH
	 	Germany/Delaware	 	 	100	%
	Dun & Bradstreet Do Brasil, Ltda.
	 	Brazil/Delaware	 	 	100	%
	Dun & Bradstreet Europe, Ltd.
	 	Delaware	 	 	100	%
	Dun & Bradstreet Finance, Ltd.
	 	England	 	 	100	%
	Dun & Bradstreet France S.C.S.
	 	France	 	 	100	%
	Dun & Bradstreet Holding Norway A/S
	 	Norway	 	 	100	%
	Dun & Bradstreet Holdings B.V.
	 	Netherlands	 	 	100	%
	Dun & Bradstreet Holdings-France, Inc.
	 	Delaware	 	 	100	%
	Dun & Bradstreet International, Ltd.
	 	Delaware	 	 	100	%
	Dun & Bradstreet Japan Ltd.
	 	Japan	 	 	100	%
	Dun & Bradstreet Limited
	 	Ireland	 	 	100	%
	Dun & Bradstreet Limited
	 	England	 	 	100	%
	Dun & Bradstreet Marketing Services N.V.-S.A.
	 	Belgium	 	 	100	%
	Dun & Bradstreet Portugal, Ltda.
	 	Portugal	 	 	100	%
	Dun & Bradstreet S.A.
	 	Argentina	 	 	100	%
	Dun & Bradstreet S.p.A.
	 	Italy	 	 	100	%
	Dun & Bradstreet Singapore Pte. Ltd.
	 	Singapore	 	 	100	%
	Dun & Bradstreet Singapore Pte. Ltd.
	 	Singapore	 	 	100	%
	Dun & Bradstreet Software Services International
	 	Delaware	 	 	100	%
	Dun & Bradstreet Ventures, Inc.
	 	Delaware	 	 	100	%
	Dunbrad, Inc.
	 	Delaware	 	 	100	%
	Duns Investing IX Corporation
	 	Delaware	 	 	100	%
	Duns Investing VII Corporation
	 	Delaware	 	 	100	%
	Duns Investing VIII Corporation
	 	Delaware	 	 	100	%
	Dunsgate Limited
	 	England	 	 	100	%
	DunsNet, Inc.
	 	Delaware	 	 	100	%
	Fillupar Leasing Partnership
	 	Delaware	 	 	98	%
	Hoovers, Inc.
	 	Delaware	 	 	100	%
	Italservice Bologna S.r.l.
	 	Italy	 	 	100	%
	Italservice S.p.A.
	 	Italy	 	 	100	%
	Italservice S.r.l.
	 	Italy	 	 	100	%

 

 

	 	 	 	 	 	 	 
	 	 	 	 	Percentage
	Subsidiaries
	 	Jurisdictions
	 	Ownership

	Kosmos Business Information Limited
	 	England	 	 	100	%
	MSA Do Brasil Sistemas E Metados Ltda.
	 	Brazil	 	 	100	%
	N.V. Dun & Bradstreet-Belgium S.A.
	 	Belgium/Delaware	 	 	100	%
	Palmetto Assurance Ltd.
	 	Bermuda	 	 	100	%
	RDS S.r.l.
	 	Italy	 	 	85	%
	The D&B Companies of Canada Ltd.
	 	Canada	 	 	100	%
	The Dun & Bradstreet Corporation Foundation (non-profit)
	 	Delaware	 	 	100	%
	Trans Union Espana Credit Bureau, S.L.
	 	Spain	 	 	50	%

 

 

SCHEDULE 6.01

Existing Liens

     None.

 

 

EXHIBIT A

[FORM OF]

ASSIGNMENT AND ASSUMPTION

     Reference is made to the $[          ] Credit Agreement dated as of September 1,
2004 (as amended, modified, supplemented or waived, the “Credit Agreement”),
among The Dun & Bradstreet Corporation, the Borrowing Subsidiaries party
thereto, the Lenders party thereto, JPMorgan Chase Bank, as Administrative
Agent, Bank of Tokyo-Mitsubishi Trust Company and Citicorp USA, Inc., as
Syndication Agents, and The Bank of New York and SunTrust Bank, as
Documentation Agents. Capitalized terms used but not defined herein shall have
the meanings specified in the Credit Agreement.

     1. The Assignor named below hereby sells and assigns, without recourse to
the Assignor, to the Assignee named below, and the Assignee hereby purchases
and assumes, without recourse to the Assignor, from the Assignor, effective as
of the Assignment Date set forth below, the interests set forth below (the
“Assigned Interest”) in the Assignor’s rights and obligations under the Credit
Agreement, including, without limitation, (i) the interests set forth below in
the Commitment of the Assignor on the Assignment Date, and all Loans, owing to
the Assignor which are outstanding on the Assignment Date and (ii) to the
extent permitted to be assigned under applicable law, all claims, suits, causes
of action and any other right of the Assignor (in its capacity as a Lender)
against any Person arising under or in connection with the Credit Agreement,
documents delivered pursuant thereto or the transactions governed thereby. The
Assignee hereby acknowledges receipt of a copy of the Credit Agreement. From
and after the Assignment Date (i) the Assignee shall be a party to and be bound
by the provisions of the Credit Agreement and, to the extent of the interests
assigned by this Assignment and Assumption, have the rights and obligations of
a Lender thereunder and (ii) the Assignor shall, to the extent of the interests
assigned by this Assignment and Assumption, relinquish its rights and be
released from its obligations under the Credit Agreement.

     2. This Assignment and Assumption is being delivered to the
Administrative Agent together with (i) if the Assignee is a Foreign Lender, any
documentation required to be delivered by the Assignee pursuant to Section
2.16(e) of the Credit Agreement, and (ii) if the Assignee is not already a
Lender under the Agreement, an Administrative Questionnaire in the form
provided by the Administrative Agent.

     3. This Assignment and Assumption shall be governed by and construed in
accordance with the laws of the State of New York.

A-1

 

Date of Assignment:                                                                                                                                                                        

Legal Name of Assignor:                                                                                                                                                                

Legal Name of Assignee:                                                                                                                                                                

Assignee’s Address for Notices:                                                                                                                                                   

Effective Date of Assignment (“Assignment Date”):                                                                                                                    

A-2

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Percentage Assigned of
	 	 	 	 	 	 	Commitment (set forth,
	 	 	Principal Amount	 	to at least 8 decimals, as
	 	 	Assigned (and identifying	 	a percentage of the
	 	 	information as to	 	Facility and the aggregate
	 	 	individual Competitive	 	Commitments of all
	Facility
	 	Loans, if any)
	 	Lenders thereunder)

	Commitment Assigned:
	 	$	 	 	 	 	%	 
	Revolving Loans
	 	$	 	 	 	 	%	 
	Competitive Loans:
	 	$	 	 	 	 	%	 

The terms set forth herein

are hereby agreed to:

	 	 	 
	

	 	Consented to and Accepted (if
	

	 	required):
	 
	 	 
	                                      , as Assignor

	 	THE DUN & BRADSTREET
	

	 	CORPORATION
	 
	 	 
	By:                                           
	 	 
	Name:

	 	By:                                                  
	Title:

	 	Name:
	

	 	Title:
	 
	 	 
	                                      , as Assignee

	 	Consented to and Accepted:
	 
	 	 
	

	 	JPMORGAN CHASE BANK,
	

	 	as Administrative Agent,
	 
	 	 
	By:                                          
	 	 
	Name:
	 	 
	Title:

	 	By:           
                      
               
	

	 	Name:
	

	 	Title:

A-3

 

EXHIBIT B-1

OPINION OF COUNSEL FOR THE BORROWER

September 1, 2004

To (a) each of the lending institutions

(the “Lenders”) listed on Schedule 1 hereto

which are parties on the date hereof to the Credit

Agreement, dated as of September 1, 2004

(the “Credit Agreement”), among

The Dun & Bradstreet Corporation (the “Company”), the

Borrowing Subsidiaries party thereto, the Lenders

party thereto, JPMorgan Chase Bank, as

Administrative Agent (in such capacity, the

“Administrative Agent”), Bank of Tokyo-Mitsubishi Trust

Company and Citicorp USA, Inc., as Syndication Agents and

The Bank of New York and SunTrust Bank, as Documentation Agents

and (b) the Administrative Agent

Ladies and Gentlemen:

     I am Senior Vice President, General Counsel and Corporate Secretary of the
Company and have acted as counsel to the Company in connection with the
preparation, execution and delivery of the Credit Agreement. This opinion is
delivered to you pursuant to Section 4.01(b) of the Credit Agreement. Terms
used herein which are defined in the Credit Agreement shall have the respective
meanings set forth in the Credit Agreement, unless otherwise defined herein.

     In connection with this opinion, I have examined a copy of the Credit
Agreement signed by the Company and the Administrative Agent. I have also
examined the originals, or duplicates or certified or conformed copies, of such
records, agreements, instruments and other documents and have made such
investigations as I have deemed relevant and necessary in connection with the
opinions expressed herein. As to questions of fact material to this opinion, I
have relied upon certificates of public officials and of officers and
representatives of the Company. In addition, I have examined, and have relied
as to matters of fact, upon the representations made in the Credit Agreement.

     In rendering the opinions set forth below, I have assumed the genuineness
of all signatures (other than those on behalf of the Company), the legal
capacity of natural persons (other than employees of the Company), the
authenticity of all documents submitted to me as originals, the conformity to
original documents of all documents submitted to me as duplicates or certified
or conformed copies, and the authenticity of the originals of such latter
documents. I have assumed without

B-1-1

 

independent investigation that the Credit Agreement constitutes a valid
and legally binding obligation of the Administrative Agent and the Lenders.

     Based upon and subject to the foregoing, and subject to the assumptions,
qualifications and comments set forth herein, I am of the opinion that:

     1. The Company (a) is a corporation duly organized, validly existing and
in good standing under the laws of Delaware, (b) has all requisite corporate
power and authority to carry on its business as now conducted and (c) except
where the failure to do so, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect, is qualified to
do business in, and is in good standing in, every jurisdiction where such
qualification is required.

     2. The Transactions are within the Company’s corporate powers and have
been duly authorized by all necessary corporate action and, if required, action
of the stockholders of the Company. The Credit Agreement has been duly
executed and delivered by the Company.

     3. The Transactions (a) do not require any consent or approval of,
registration or filing with, or any other action by, any Governmental
Authority, except such as have been obtained or made and are in full force and
effect and except for such consents, approvals, registrations, filings and
other actions the failure to obtain or make could not, individually or in the
aggregate, reasonably be expected to result in a Material Adverse Effect, (b)
will not violate any applicable New York law or regulation or the Delaware
General Corporation Law or the charter or by-laws of the Company or any order
of any Governmental Authority applicable to the Company, except for such
violations which, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect, (c) will not violate or result
in a default under any indenture, agreement or other instrument binding upon
the Company or any of its Subsidiaries, except for such violations and defaults
which, individually or in the aggregate, could not reasonably be expected to
result in a Material Adverse Effect, and (d) will not result in the creation or
imposition of any Lien on any asset of the Company or any of its Material
Subsidiaries.

     4. To my knowledge, after due inquiry, there are no actions, suits or
proceedings by or before any arbitrator or Governmental Authority pending
against or threatened against or affecting the Company or any of its
Subsidiaries (a) as to which there is a reasonable possibility of an adverse
determination and that, if adversely determined, could reasonably be expected,
individually or in the aggregate, to have a Material Adverse Effect (other than
the Disclosed Matters) or (b) that purport to affect the legality, validity or
enforceability of the Credit Agreement or the Transactions.

B-1-2

 

     5. Neither the Company nor any of its Subsidiaries is a “holding company”
as defined in, or subject to regulations under, the Public Utility Holding
Company Act of 1935.

     I am a member of the Bar of the State of New York and I do not express any
opinion on any laws other than the law of the State of New York and the General
Corporation Law of the State of Delaware.

     This opinion is rendered to you in connection with the above-described
transaction. This opinion may not be relied upon by you for any other purpose
or relied upon by any other person, firm or corporation without my prior
written consent.

	 	 	 
	

	 	Very truly yours,
	 
	 	 
	

	 	David J. Lewinter

B-1-3

 

Schedule 1

LENDERS

JPMorgan Chase Bank

The Bank of Tokyo-Mitsubishi Trust Company

Citicorp USA, Inc.

SunTrust Bank

The Bank of New York

The Northern Trust Company

Barclays Bank PLC

Wachovia Bank, National Association

Harris Nesbit Financing, Inc.

Wells Fargo Bank National Association

B-1-4

 

EXHIBIT B-2

OPINION OF SPECIAL COUNSEL FOR THE BORROWER

September 1, 2004

To (a) each of the lending institution
(the “Lenders”) listed on Schedule 1 hereto

which are parties on the date hereof to the Credit

Agreement, dated as of September 1, 2004

(the “Credit Agreement”), among

The Dun & Bradstreet Corporation (the “Company”), the

Borrowing Subsidiaries party thereto, the Lendersv
party thereto, JPMorgan Chase Bank, as

Administrative Agent (in such capacity, the

“Administrative Agent”), Bank of Tokyo-Mitsubishi Trust

Company and Citicorp USA, Inc., as Syndication Agents and

The Bank of New York and SunTrust Bank, as Documentation Agents

and (b) the Administrative Agent

Ladies and Gentlemen:

     We have acted as special counsel to the Company in connection with the
preparation of the Credit Agreement. This opinion is delivered to you pursuant
to Section 4.01(b) of the Credit Agreement. Terms used herein which are
defined in the Credit Agreement shall have the respective meanings set forth in
the Credit Agreement, unless otherwise defined herein.

     In connection with this opinion we have examined a copy of the Credit
Agreement signed by the Company and the Administrative Agent. We have also
examined the originals, or duplicates or certified or conformed copies, of such
records, agreements, instruments and other documents and have made such other
investigations as we have deemed relevant and necessary in connection with the
opinions expressed herein. As to questions of fact material to this opinion,
we have relied upon certificates of public officials and of officers and
representatives of the Company. In addition, we have examined, and have relied
as to matters of fact upon, the representations made in the Credit Agreement.

     In rendering the opinions set forth below, we have assumed the genuineness
of all signatures, the legal capacity of natural persons, the authenticity of
all documents submitted to us as originals, the conformity to original
documents of all documents submitted to us as duplicates or certified or
conformed copies, and the authenticity of the originals of such latter
documents. We have assumed without independent investigation that (a) the
Credit Agreement has been duly authorized, executed and delivered by the
Company, (b)

B-2-1

 

the Company has been duly incorporated and is validly existing and in good
standing under the laws of its jurisdiction of incorporation and has the
corporate power and authority to execute, deliver and perform its obligations
under the Credit Agreement, (c) the execution, delivery and performance of the
Credit Agreement by the Company (i) has been duly authorized by all necessary
corporate action on its part, (ii) does not contravene its certificate of
incorporation or by-laws or, except as set forth in paragraph 2 below, violate,
or require any consent not obtained under, any applicable law or regulation or
any order, writ, injunction or decree of any court or other Governmental
Authority binding upon it and (iii) does not violate, or require any consent
not obtained under, any contractual obligation applicable to or binding upon
it, and (d) the Credit Agreement constitutes a valid and legally binding
obligation of the Administrative Agent and the Lenders.

     Based upon and subject to the foregoing, and subject to the assumptions,
qualifications and comments set forth herein, we are of the opinion that:

     1. The Credit Agreement is the legal, valid and binding obligation of the
Company enforceable against it in accordance with its terms.

     2. The execution, delivery and performance of the Credit Agreement by the
Company will not violate any Federal or New York statute or any rule or
regulation issued pursuant to any Federal or New York statute.

     3. The Company is not an “investment company” within the meaning of the
Investment Company Act of 1940, as amended.

     Our opinion in paragraph 1 above is subject to (i) the effect of any
applicable bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium or laws affecting creditors’ rights generally, (ii) general
equitable principles (regardless of whether enforcement is sought in a
proceeding in equity or at law), (iii) an implied covenant of good faith and
fair dealing and (iv) the effects of the possible judicial application of
foreign laws or foreign governmental or judicial action affecting creditors’
rights.

     We express no opinion with respect to: (a) the effect of any provision of
the Credit Agreement that is intended (i) to establish any standard as the
measure of the performance by any party thereto of such party’s obligations of
good faith, diligence, fair dealing, reasonableness or care or (ii) to permit
modification thereof only by means of an agreement in writing signed by the
parties thereto; (b) the effect of any provision of the Credit Agreement
insofar as it provides that any Person purchasing a participation from a Lender
or other Person may exercise set-off or similar rights with respect to such
participation or that any Lender or other Person may exercise set-off or
similar rights other than in accordance with applicable law; (c) the effect of
any provision of the Credit Agreement imposing

B-2-2

 

penalties or forfeitures; (d) the effect of any provision of the Credit
Agreement relating to indemnification or exculpation in connection with
violations of any securities laws or relating to indemnification, contribution
or exculpation in connection with willful, reckless or criminal acts or gross
negligence of the indemnified or exculpated Person or the Person receiving
contribution; (e) any provision of the Credit Agreement which purports to
provide for a waiver by the Company of any immunity, defense or right which may
be available to the Company; and (f) any provision of the Credit Agreement
which purports to establish an evidentiary standard for determinations by any
Person.

     We note that (A) a New York statute provides that, with respect to a
foreign currency obligation, a court of the State of New York shall render a
judgment or decree in such foreign currency and such judgment or decree shall
be converted into currency of the United States at the rate of exchange
prevailing on the date of entry of such judgment or decree and (B) with respect
to a foreign currency obligation, a United States Federal court in New York may
award judgment in United States dollars, provided that we express no opinion as
to the rate of exchange such court would apply.

     In connection with the provisions of the Credit Agreement whereby the
Company submits to the jurisdiction of the courts of the United States of
America located in the State of New York, we note the limitations of 28 U.S.C.
§§ 1331 and 1332 on subject matter jurisdiction of the Federal courts. In
connection with the provisions of the Credit Agreement that relate to forum
selection (including, without limitation, any waiver of any objection to venue
or any objection that a court is an inconvenient forum), we note that under
NYCPLR § 510, a New York State court may have discretion to transfer the place
of trial, and under 28 U.S.C. § 1404(a), a United States District Court has
discretion to transfer an action from one Federal court to another.

     We are members of the Bar of the State of New York, and we do not express
any opinion concerning any law other than the law of the State of New York and
the Federal laws of the United States of America.

B-2-3

 

     This opinion letter is rendered to you in connection with the
above-described transaction. This opinion letter may not be relied upon by you
for any other purpose, or relied upon by any other person or entity without our
prior written consent. We undertake no duty to inform you of events occurring
subsequent to the date hereof.

	 	 	 
	

	 	Very truly yours,
	 
	 	 
	

	 	HUNTON & WILLIAMS LLP

B-2-4

 

Schedule 1

LENDERS

JPMorgan Chase Bank

The Bank of Tokyo-Mitsubishi Trust Company

Citicorp USA, Inc.

SunTrust Bank

The Bank of New York

The Northern Trust Company

Barclays Bank PLC

Wachovia Bank, National Association

Harris Nesbit Financing, Inc.

Wells Fargo Bank National Association

B-2-5

 

EXHIBIT C

OPINION OF COUNSEL FOR BORROWING SUBSIDIARY

[Effective Date]          

To the Lenders and the Administrative

     Agent Referred to Below

c/o JPMorgan Chase Bank, as

     Administrative Agent

270 Park Avenue

New York, New York 10017

Dear Sirs:

     We have acted as counsel for [                ], a [      ]
corporation (the “Borrower”), in connection with (i) the Borrowing Subsidiary
Agreement dated as of                     (the “Agreement”), among The Dun & Bradstreet
Corporation, (the “Company”), the Borrower and JPMorgan Chase Bank, as
Administrative Agent and (ii) the $300,000,000 Credit Agreement dated as of
September 1, 2004 (the “Credit Agreement”), among the Company, the Borrowing
Subsidiaries party thereto, the banks and other financial institutions
identified therein as Lenders, JPMorgan Chase Bank, as Administrative Agent,
Bank of Tokyo-Mitsubishi Trust Company and Citicorp USA, Inc., as Syndication
Agents, and The Bank of New York and SunTrust Bank, as Documentation Agents.
Terms defined in the Credit Agreement are used herein with the same meanings.

     We have examined originals or copies, certified or otherwise identified to
our satisfaction, of such documents, corporate records, certificates of public
officials and other instruments and have conducted such other investigations of
fact and law as we have deemed necessary or advisable for purposes of this
opinion.

     Upon the basis of the foregoing, we are of the opinion that:

     1. The Borrower (a) is a corporation duly organized, validly existing and
in good standing under the laws of [      ], (b) has all requisite corporate
power and authority to carry on its business as now conducted and (c) except
where the failure to do so, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect, is qualified to
do business in, and is in good standing in, every jurisdiction where such
qualification is required.

C-1

 

     2. The Transactions are within the Borrower’s corporate powers and have
been duly authorized by all necessary corporate and, if required, action of the
stockholders of the Borrower. The Agreement has been duly executed and
delivered by the Borrower and the Agreement and the Credit Agreement each
constitutes a valid and legally binding obligation of the Borrower, enforceable
in accordance with its respective terms, subject to the effects of bankruptcy,
insolvency, fraudulent conveyance, reorganization, moratorium and other similar
laws relating to or affecting creditors’ rights generally, general equitable
principles (whether considered in a proceeding in equity or at law), an implied
covenant of good faith and fair dealing and the effects of the possible
judicial application of foreign laws or foreign governmental or judicial action
affecting creditors’ rights.

     3. The Transactions (a) do not require any consent or approval of,
registration or filing with, or any other action by, any Governmental
Authority, except such as have been obtained or made and are in full force and
effect and except for such consents, approvals, registrations, filings and
other actions the failure to obtain or make could not, individually or in the
aggregate, reasonably be expected to result in a Material Adverse Effect, (b)
will not violate any applicable New York law or regulation or the Delaware
General Corporation Law or the charter or by-laws of the Borrower or any order
of any Governmental Authority applicable to the Borrower, except for such
violations which, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect, (c) will not violate or result
in a default under any indenture, agreement or other instrument binding upon
the Borrower or any of its Subsidiaries or its assets, except for such
violations and defaults which, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect, and (d) will not
result in the creation or imposition of any Lien on any asset of the Borrower
or any of its Material Subsidiaries.

     [4. There is no income, stamp or other tax of the government of
[jurisdiction of Borrower], or any taxing authority thereof or therein, imposed
by or in the nature of withholding or otherwise, which is imposed on any
payment to be made by the Borrower pursuant to the Credit Agreement or its
Notes, or imposed on or by virtue of the execution, delivery or enforcement of
the Agreement, the Credit Agreement or its Notes.]1

     5. (a) The Borrower is not an “investment company” within the meaning of
the Investment Company Act of 1940, as amended and (b) neither the Borrower nor
any of its Subsidiaries is a “holding company” as defined in, or subject to
regulation under, the Public Utility Holding Company Act of 1935.

	 	 	1 Given when Borrowing Subsidiary is a foreign Subsidiary.

C-2

 

     [Qualifications and exceptions reasonably satisfactory to the
Administrative Agent]

     We are members of the bar of the [          ] and the foregoing opinion
is limited to the laws of the [          ]. This opinion is rendered solely to
you in connection with the above matter. This opinion may not be relied upon
by you for any other purpose or relied upon by any other Person (other than
your successors and assigns as Lenders and Persons that acquire participations
in your Loans) without our prior written consent.

	 	 	 
	

	 	Very truly yours,
	 
	 	 
	

	 	[                ]

C-3

 

EXHIBIT D

FORM OF

     BORROWING SUBSIDIARY AGREEMENT dated as of [               ],
20[     ], among THE DUN & BRADSTREET, a Delaware
corporation (the “Company”), [Name of Borrowing
Subsidiary], a [               ] corporation (the “New
Borrowing Subsidiary”), JPMorgan Chase Bank, as
Administrative Agent (the “Administrative Agent”), [               ],
as Syndication Agent, and [               ], as
Documentation Agent.

     Reference is hereby made to the $[                ] Credit Agreement dated as of
September 1, 2004 (as amended, supplemented or otherwise modified from time to
time, the “Credit Agreement”), among the Company, the Borrowing Subsidiaries
party thereto, the Lenders party thereto, the Administrative Agent, Bank of
Tokyo-Mitsubishi Trust Company and Citicorp USA, Inc., as Syndication Agents,
and The Bank of New York and SunTrust Bank, as Documentation Agents.
Capitalized terms used herein but not otherwise defined herein shall have the
meanings assigned to such terms in the Credit Agreement. Under the Credit
Agreement, the Lenders have agreed, upon the terms and subject to the
conditions therein set forth, to make Loans to the Borrowing Subsidiaries, and
the Company and the New Borrowing Subsidiary desire that the New Borrowing
Subsidiary become a Borrowing Subsidiary. The Company represents that it owns
or Controls at least [  ]% of the voting power of the New Borrowing Subsidiary.
Each of the Company and the New Borrowing Subsidiary represent and warrant that
the representations and warranties of the Company in the Credit Agreement
relating to the Borrowing Subsidiary and this Agreement are true and correct on
and as of the date hereof. The Company agrees that the Guarantee of the
Company contained in the Credit Agreement will apply to the Obligations of the
New Borrowing Subsidiary. Upon execution of this Agreement by each of the
Company, the New Borrowing Subsidiary and the Administrative Agent, the New
Borrowing Subsidiary shall be a party to the Credit Agreement and shall
constitute a “Borrowing Subsidiary” and a “Borrower” for all purposes thereof,
and the New Borrowing Subsidiary hereby agrees to be bound by all provisions of
the Credit Agreement.

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

D-1

 

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

	 	 	 	 	 
	 	THE DUN & BRADSTREET 

          CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	[NAME OF NEW BORROWING 

          SUBSIDIARY]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, as

           Administrative Agent

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

D-2

 

	 	 	 	 	 

EXHIBIT E

FORM OF

BORROWING SUBSIDIARY TERMINATION

JPMorgan Chase Bank,

as Administrative Agent

for the Lenders referred to below

c/o JPMorgan Chase Bank

270 Park Avenue

New York, NY 10017

[Date]

Ladies and Gentlemen:

     The undersigned, The Dun & Bradstreet Corporation (the “Company”), refers
to the $300,000,000 Credit Agreement dated as of September 1, 2004 (as amended,
supplemented or otherwise modified from time to time, the “Credit Agreement”),
among the Company, the Borrowing Subsidiaries party thereto, the Lenders party
thereto, JPMorgan Chase Bank, as Administrative Agent, Bank of Tokyo-Mitsubishi
Trust Company and Citicorp USA, Inc., as Syndication Agents, and The Bank of
New York and SunTrust Bank, as Documentation Agents. Capitalized terms used
and not otherwise defined herein shall have the meanings assigned to such terms
in the Credit Agreement.

     The Company hereby terminates the status of [          
     ] (the
“Terminated Borrowing Subsidiary”) as a Borrowing Subsidiary under the Credit
Agreement. [The Company represents and warrants that no Loans made to the
Terminated Borrowing Subsidiary are outstanding as of the date hereof and that
all amounts payable by the Terminated Borrowing Subsidiary in respect of
interest and/or fees (and, to the extent notified by the Administrative Agent
or any Lender, any other amounts payable under the Credit Agreement) pursuant
to the Credit Agreement have been paid in full on or prior to the date hereof.]
[The Company acknowledges that the Terminated Borrowing Subsidiary shall
continue to be a Borrowing Subsidiary until such time as all Loans made to the
Terminated Borrowing Subsidiary shall have been prepaid and all amounts payable
by the Terminated Borrowing Subsidiary in respect of interest and/or fees (and,
to the extent notified by the Administrative Agent or any Lender, any other
amounts payable under the Credit Agreement) pursuant to the Credit Agreement
shall have been paid in full, provided that the Terminated Borrowing Subsidiary
shall not have the right to make further Borrowings, under the Credit
Agreement.]

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

E-1

 

	 	 	 	 	 
	 	Very truly yours,

THE DUN & BRADSTREET 

          CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

E-2

 

EXHIBIT F

FORM OF

NON-BANK CERTIFICATE

     Reference is made to the Credit Agreement, dated as of September 1, 2004
(as amended, supplemented or otherwise modified from time to time, the “Credit
Agreement”) among The Dun & Bradstreet Corporation, a Delaware corporation (the
“Company”), the several banks and other financial institutions from time to
time parties thereto, JPMorgan Chase Bank, as Administrative Agent, Bank of
Tokyo-Mitsubishi Trust Company and Citicorp USA, Inc., as Syndication Agents,
and The Bank of New York and SunTrust Bank, as Documentation Agents.
Capitalized terms used but not defined herein shall have the meanings set forth
in the Credit Agreement.

                        (the “Lender”) is provided this certificate pursuant to
subsection 2.16(e) of the Credit Agreement. The Lender hereby claims the
benefits of the portfolio interest exemption pursuant to Section 871(h) or
881(c) of the Internal Revenue Code of 1986, as amended (the “Code”) , as
applicable and represents and warrants that:

     1. The Lender is the sole record and beneficial owner of the Loans or the
obligations evidenced by Note(s) in respect of which it is providing this
certificate.

     2. The Lender is not a “bank” for purposes of Section 881(c)(3)(A) of the
Code. In this regard, the Lender further represents and warrants that:

     (a) the Lender is not subject to regulatory or other legal
requirements as a bank in any jurisdiction; and

     (b) the Lender has not been treated as a bank for purposes of any
tax, securities law or other filing or submission made to any
governmental Authority, any application made to a rating agency or
qualification for any exemption from tax, securities law or other legal
requirements;

     3. The Lender is not a 10-percent shareholder of the Company within the
meaning of Section 881(c)(3)(B) of the Code; and

     4. The Lender is not a controlled foreign corporation receiving interest
from a related person within the meaning of Section 881(c)(3)(C) of the Code.

F-1

 

     IN WITNESS WHEREOF, the undersigned has duly executed this certificate.

	 	 	 
	Dated:                                      

	 	[NAME OF LENDER]
	 
	 	 
	

	 	By:                                                         
	

	 	Name:
	

	 	Title:

F-2

 

EXHIBIT G

ASSUMPTION AGREEMENT

     AGREEMENT dated as of                                        , 20       among The Dun & Bradstreet
Corporation (the “Company”), [NAME OF BANK] (the “Bank”) and JPMorgan Chase
Bank, as Administrative Agent (the “Administrative Agent”).

     WHEREAS, this Assumption Agreement (the “Agreement”) relates to the Credit
Agreement dated as of September 1, 2004 among the Company, the Borrowing
Subsidiaries party thereto, the Lenders party thereto, the Administrative
Agent, Bank of Tokyo-Mitsubishi Trust Company and Citicorp USA, Inc., as
Syndication Agents, and The Bank of New York and SunTrust Bank, as
Documentation Agents (as amended from time to time, the “Credit Agreement”);

     WHEREAS, as permitted by Section 2.08(d) of the Credit Agreement, the
Company proposes to increase the aggregate amount of the Facility Commitments;

     NOW, THEREFORE, the parties hereto agree as follows:

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

     SECTION 2. Assumed Commitment. Effective as of the date hereof, the Bank
hereby [increases its existing Facility Commitment from $[           ] to $[          ]]2
[assumes a Facility Commitment equal to $[           ]]3 (the “Assumed
Commitment”). [From and after the date hereof, the Bank shall be a party to and
bound by the provisions of the Credit Agreement and, to the extent of the
Assumed Commitment, all the rights and obligations of a Lender under the Credit
Agreement.]4

     [SECTION 3. Revolving Loans. The Bank shall make a Revolving Loan to the
Company on the date hereof in accordance with Section 2.06 in an amount equal
to such Bank’s pro rata share of the principal amount of all outstanding

	 	 	2 If the Bank is an existing Lender.
	 
	 	 	3 If the Bank is not an existing Lender.
	 
	 	 	4 If the Bank is not an existing Lender.

G-1

 

     Revolving Loans on the date hereof after giving effect to the Assumed
Commitment.]5

     [SECTION 4. Additional Documentation. The Bank, upon execution of this
Agreement, shall deliver to the Administrative Agent, [any documentation
required to be delivered by the Bank pursuant to Section 2.16(e) of the Credit
Agreement,]6[and an Administrative Questionnaire in the form provided by the
Administrative Agent]7.]

     SECTION 5. Representations of the Company. The Company hereby confirms
that (a) the increase in the aggregate amount of the Facility Commitments and
the transactions set forth herein have been duly authorized by all necessary
corporate action and (b) at the time of and immediately after giving effect to
the increase in the aggregate amount of the Facility Commitments and the
transactions set forth herein, (i) the representations and warranties of the
Company set forth in the Credit Agreement are true and correct on and as of the
date hereof and (ii) no Default has occurred and is continuing.

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

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

	 	 	5 If Loans are outstanding on the effective date of this Agreement.
	 
	 	 	6 If the Bank is a Foreign Lender.
	 
	 	 	7 If the Bank is not an existing Lender.

G-2

 

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

	 	 	 	 	 
	 	[NAME OF BANK]

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

	 	 	 	 	 
	 	THE DUN & BRADSTREET CORPORATION

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 

G-3EXHIBIT 10.1

 

EXHIBIT 10.1

STOCKHOLDERS AGREEMENT

AMONG

BANKNORTH GROUP INC.,

BERLIN DELAWARE INC.

AND

THE TORONTO-DOMINION BANK

DATED AS OF AUGUST 25, 2004

 

 

Table of Contents

	 	 	 	 	 
	 	 	Page
	ARTICLE I DEFINITIONS
	 	 	1	 
	Section 1.1. Certain Defined Terms
	 	 	1	 
	Section 1.2. Other Defined Terms
	 	 	7	 
	Section 1.3. Other Definitional Provisions
	 	 	7	 
	Section 1.4. Methodology for Calculations
	 	 	7	 
	ARTICLE II SHARE OWNERSHIP
	 	 	8	 
	Section 2.1. Acquisition of Additional Voting Securities
	 	 	8	 
	Section 2.2. Going Private Transactions
	 	 	9	 
	Section 2.3. Right of First Refusal to Contribute Capital
	 	 	10	 
	Section 2.4. Stock Purchase Rights
	 	 	11	 
	Section 2.5. Company Share Repurchases
	 	 	12	 
	ARTICLE III TRANSFER RESTRICTIONS
	 	 	13	 
	Section 3.1. General Transfer Restrictions
	 	 	13	 
	Section 3.2. Restrictions on Transfer
	 	 	13	 
	Section 3.3. Right of First Offer
	 	 	14	 
	Section 3.4. Legend on Securities
	 	 	16	 
	ARTICLE IV CORPORATE GOVERNANCE
	 	 	16	 
	Section 4.1. Composition of the Board
	 	 	16	 
	Section 4.2. Vote Required for Board Action; Board Quorum
	 	 	17	 
	Section 4.3. Committees
	 	 	18	 
	Section 4.4. Certificate of Incorporation and Bylaws to be Consistent
	 	 	18	 
	Section 4.5. Information Rights
	 	 	19	 
	Section 4.6. Trade Name
	 	 	19	 
	Section 4.7. Corporate Opportunities
	 	 	19	 
	Section 4.8. NYSE Listing
	 	 	19	 
	Section 4.9. Suspension, Termination of Certain Provisions
	 	 	19	 
	Section 4.10. Acquisition of Competing Entities
	 	 	19	 
	ARTICLE V MISCELLANEOUS
	 	 	19	 
	Section 5.1. Conflicting Agreements
	 	 	19	 
	Section 5.2. Termination
	 	 	19	 
	Section 5.3. Ownership Information
	 	 	19	 
	Section 5.4. Amendment and Waiver
	 	 	19	 
	Section 5.5. Severability
	 	 	19	 
	Section 5.6. Entire Agreement
	 	 	19	 
	Section 5.7. Successors and Assigns
	 	 	19	 
	Section 5.8. Counterparts
	 	 	19	 
	Section 5.9. Remedies
	 	 	19	 
	Section 5.10. Notices
	 	 	19	 

-i-

 

	 	 	 	 	 
	 	 	Page
	Section 5.11. Governing Law; Consent to Jurisdiction
	 	 	19	 
	Section 5.12. Interpretation
	 	 	19	 
	Section 5.13. Effectiveness
	 	 	19	 

-ii-

 

STOCKHOLDERS AGREEMENT

          STOCKHOLDERS AGREEMENT dated as of August 25, 2004 among Banknorth Group,
Inc., a Maine corporation (the “Company”), Berlin Delaware Inc., a
Delaware corporation and a wholly-owned subsidiary of the Company
(“Banknorth Delaware”) and The Toronto-Dominion Bank, a Canadian
chartered bank (“TD”).

          WHEREAS, the Company, Banknorth Delaware, TD and Berlin Merger Co., a
Delaware corporation and a wholly-owned subsidiary of TD (“Berlin
Mergerco”) are entering into an Agreement and Plan of Merger, dated as of
August 25, 2004 (the “Merger Agreement”), pursuant to and subject to the
terms and conditions of which, among other things, (i) the Company will merge
with and into Banknorth Delaware, with Banknorth Delaware surviving the Merger
(the “Migratory Merger”) and (ii) immediately following the
effectiveness of the Migratory Merger, Berlin Mergerco will merge with and into
Banknorth Delaware with Banknorth Delaware surviving the merger (the
“Acquisition Merger”); references in this Agreement to the “Company”
shall include Banknorth Delaware from and after the Migratory Merger Effective
Time (as defined in the Merger Agreement);

          WHEREAS, upon the closing of the Acquisition Merger (the
“Closing”), TD will Beneficially Own (as defined herein), directly
and/or through its Subsidiaries (as defined herein), 51% of the issued and
outstanding Common Stock and the sole share of Class B Common Stock (as defined
herein);

          WHEREAS, it is a condition to the obligations of each of the Company and
TD to consummate the Acquisition Merger and the other transactions contemplated
by the Merger Agreement that this Agreement shall have been duly executed and
delivered by the Company and TD; and

          WHEREAS, the parties hereto desire to enter into this Agreement to
establish certain arrangements with respect to the shares of Company Common
Stock (as defined herein) to be Beneficially Owned by TD and its Affiliates
following the Closing, as well as restrictions on certain activities in respect
of the Company Common Stock, corporate governance and other related corporate
matters.

          NOW, THEREFORE, in consideration of the premises and of the mutual
covenants and obligations hereinafter set forth, the parties hereto hereby
agree as follows:

ARTICLE I

DEFINITIONS

          Section 1.1. Certain Defined Terms. As used herein, the following
terms shall have the following meanings:

     “Affiliate” means, with respect to any Person, any other Person
that directly, or indirectly through one or more intermediaries, controls, is
controlled by or is under common control with, such specified Person;
provided, however, that solely for
purposes of this Agreement, notwithstanding anything to the contrary set
forth herein, neither the Company nor any of its

 

 

Subsidiaries shall be deemed
to be a Subsidiary or Affiliate of TD solely by virtue of TD’s ownership of the
Company Common Stock, the election of Class B Directors nominated by it to the
Board, the election of any other Directors nominated by the Nominating
Committee of the Board or any other action taken by TD or its Affiliates which
is permitted under this Agreement which may be deemed to constitute control of
the Company, in each case in accordance with the terms and conditions of, and
subject to the limitations and restrictions set forth in, this Agreement (and
irrespective of the characteristics of the aforesaid relationships and actions
under applicable law or accounting principles).

     “Agreement” means this Stockholders Agreement as it may be amended,
supplemented, restated or modified from time to time.

     “Beneficial Ownership” by a Person of any securities includes
ownership by any Person who, directly or indirectly, through any contract,
arrangement, understanding, relationship or otherwise, has or shares (i) voting
power which includes the power to vote, or to direct the voting of, such
security; and/or (ii) investment power which includes the power to dispose, or
to direct the disposition, of such security; and shall otherwise be interpreted
in accordance with the term “beneficial ownership” as defined in Rule 13d-3
adopted by the Commission under the Exchange Act; provided that for
purposes of determining Beneficial Ownership, a Person shall be deemed to be
the Beneficial Owner of any securities which may be acquired by such Person
pursuant to any agreement, arrangement or understanding or upon the exercise of
conversion rights, exchange rights, warrants or options, or otherwise
(irrespective of whether the right to acquire such securities is exercisable
immediately or only after the passage of time, including the passage of time in
excess of 60 days, the satisfaction of any conditions, the occurrence of any
event or any combination of the foregoing), except that in no event will TD or
any of its Affiliates be deemed to Beneficially Own any securities which it has
the right to acquire pursuant to Sections 2.3 or 2.4 unless, and then only to
the extent that, TD or such Affiliate shall have actually exercised such right.
For purposes of this Agreement, a Person shall be deemed to Beneficially Own
any securities Beneficially Owned by its Affiliates or any Group of which such
Person or any such Affiliate is or becomes a member; provided,
however, that shares of Common Stock subject to options granted under
Company benefit plans or shares of Common Stock (including derivative interests
therein) otherwise issued under Company benefit plans to any Person who, at the
time of the grant or issuance, was an officer or director of the Company or any
of its Subsidiaries shall not solely for that reason be deemed to be
Beneficially Owned by TD or any of its Affiliates; and provided,
further, that securities Beneficially Owned by TD and its Affiliates
shall not include, for any purpose under this Agreement, any Voting Securities
or other securities held: by TD and its Subsidiaries in trust, managed,
brokerage, custodial, nominee or other customer accounts; in mutual funds, open
or closed end investment funds or other pooled investment vehicles sponsored,
managed and/or advised or subadvised by TD or its Affiliates; or by Affiliates
of TD (or any division thereof) which are broker-dealers or otherwise engaged
in the securities business, provided that in each case, such securities were
acquired in the ordinary course of business of their respective banking,
investment management and securities business and not with the intent or
purpose on the part of TD or its Affiliates of influencing control of the
Company or avoiding the provisions of this Agreement. The term
“Beneficially Own” shall have a correlative meaning.

     “Board” means the Board of Directors of the Company.

2

 

     “Business Day” shall mean any day that is not a Saturday, a Sunday
or other day on which banks are required or authorized by law to be closed in
Portland, Maine, USA or Toronto, Ontario, Canada.

     “By-Laws” means the By-Laws of the Company, as amended or
supplemented from time to time.

     “Capital Stock” means, with respect to any Person at any time, any
and all shares, interests, participations or other equivalents (however
designated, whether voting or non-voting) of capital stock, partnership
interests (whether general or limited) or equivalent ownership interests in or
issued by such Person.

     “Class A Director” means any Director then serving as such, other
than a Class B Director.

     “Class B Common Stock” means the one share of Class B Common Stock,
par value $0.01 per share, of the Company and any securities issued in respect
thereof, or in substitution therefor, in connection with any stock split,
dividend or combination, or any reclassification, recapitalization, merger,
consolidation, exchange or other similar reorganization. In accordance with
the terms of the Surviving Corporation Charter, such one share of Class B
Common Stock (and any such securities issued in respect thereof, or in
substitution therefor) may be Beneficially Owned only by TD and its Affiliates
and shall not otherwise be Transferred. Any attempted Transfer in violation of
the terms of the Class B Common Stock shall be of no effect and null and void,
regardless of whether the purported transferee has any actual or constructive
knowledge of the Transfer restrictions set forth herein, and shall not be
recorded on the stock transfer books of the Company; provided,
however, that upon any termination of this Agreement, such one share of
Class B Common Stock (and any such securities issued in respect thereof, or in
substitution therefor) shall be redeemed for $1.00 paid to the holder thereof,
subject to the availability of lawful funds therefor, and upon such redemption
shall be cancelled and retired and may not be reissued. The Class B Common
Stock shall have no economic interest in the Company and shall have no voting
rights, except for the right to elect Class B Directors pursuant to the terms
hereof, or rights to receive dividends or any other distributions.

     “Class B Director” means any Person who is nominated and elected to
serve as a Class B Director by the holder of the Class B Common Stock or is
designated as a replacement for a Class B Director pursuant to the Surviving
Corporation Charter and is then serving in such capacity. For the avoidance of
doubt, nothing in this Agreement shall be deemed to relieve any Director of any
duty that Director may have to any stockholder of the Company under applicable
law.

     “Commission” means the United States Securities and Exchange
Commission.

     “Common Stock” means the common stock, par value $0.01 per share,
of the Company and any securities issued in respect thereof, or in substitution
therefor, in connection
with any stock split, dividend or combination, or any reclassification,
recapitalization, merger, consolidation, exchange or other similar
reorganization.

     “Company Common Stock” means the Common Stock and the Class B
Common Stock.

3

 

     “control” (including the terms “controlled by” and “under common
control with”), with respect to the relationship between or among two or more
Persons, means the possession, directly or indirectly, of the power to direct
or cause the direction of the affairs or management of a Person, whether
through the ownership of voting securities, as trustee or executor, by contract
or any other means, or otherwise to control such Person within the meaning of
such term as used in Section 2(e) of Regulation Y.

     “Designated Independent Director” means each of the four
Independent Directors designated by the Board as such prior to the Effective
Time and their respective successors who are nominated and designated as such
by the Designated Independent Directors and the Nominating Committee in
accordance with Section 4.1(b) and who are then serving in such capacity.

     “Director” means any member of the Board (other than any advisory,
honorary or other non-voting member of the Board).

     “Exchange Act” means the U.S. Securities Exchange Act of 1934, as
amended, and the rules and regulations promulgated by the Commission from time
to time thereunder (or under any successor statute).

     “Fair Market Value” means, as to any securities or other property,
the cash price at which a willing seller would sell and a willing buyer would
buy such securities or property in an arm’s length negotiated transaction
without time constraints. With respect to any securities that are traded on a
national securities exchange or quoted on the Nasdaq National Market or the
Nasdaq Small Cap Market, Fair Market Value shall mean the arithmetic average of
the closing prices of such securities on their principal market for the ten
consecutive trading days immediately preceding the applicable date of
determination. The Fair Market Value of any property or assets, other than
securities described in the preceding sentence, with an estimated value of less
than $5 million shall be determined by the Board (acting through a majority of
the Designated Independent Directors) in its good faith judgment. The Fair
Market Value of all other property or assets shall be determined by an
Independent Investment Banking Firm, selected by a majority of the Designated
Independent Directors, whose determination shall be final and binding on the
parties hereto. The fees and expenses of such investment bank shall be paid by
the Company.

     “Going Private Transaction” means any transaction that would
constitute a “Rule 13e-3 transaction” under paragraph (a)(3) of Rule 13e-3
promulgated under the Exchange Act as in effect on the date of this Agreement.

     “Group” shall have the meaning assigned to it in Section 13(d)(3)
of the Exchange Act.

     “Incidental Acquisition” means an acquisition of control (as such
term is defined in 12 U.S.C. § 1841(a)(2) or any successor provision) of a
Retail Bank in connection with any business combination involving a Person
whose primary business is not the business of providing branch-based retail
consumer and commercial banking services in the continental United States and
not more than 50% of whose consolidated assets consist of Retail Banks;
provided that the primary purpose of such acquisition is not to avoid the
provisions of this Agreement.

4

 

     “Independent Director” means any Director who (i) is or would be an
“independent director” with respect to the Company and with respect to TD
pursuant to Section 303A.02 of the New York Stock Exchange Listed Company
Manual and Section 10A of the Exchange Act (or any successor provisions) and
(ii) is not a Class B Director or an Affiliate or a past or present officer,
director or employee of, and was not nominated by, TD or any of its Affiliates.

     “Independent Investment Banking Firm” means an investment banking
firm of nationally recognized standing that in the reasonable judgment of the
Person or Persons engaging such firm, taking into account any prior
relationship with TD or the Company, is independent of such Person or Persons.

     “Ownership Percentage” means, at any time, the quotient, expressed
as a percentage, of (i) the Total Voting Power of all Voting Securities
Beneficially Owned by TD and its Affiliates divided by (ii) the Total Voting
Power of all Voting Securities then outstanding.

     “Person” means any individual, corporation, limited liability
company, limited or general partnership, joint venture, association,
joint-stock company, trust, unincorporated organization, other entity,
government or any agency or political subdivision thereof or any Group
comprised of two or more of the foregoing.

     “Prime Rate” means the prime rate, base lending rate or similar
bench mark rate in effect from time to time as announced by Citicorp, N.A. (or
any successor institution).

     “Regulation Y” means Regulation Y (12 C.F.R. Part 225) or any
successor regulation, as promulgated by the Board of Governors of the Federal
Reserve System under the Bank Holding Company Act.

     “Retail Bank” means any insured depository institution (as such
term is defined in 12 U.S.C. § 1813(c)(2) or any successor provision) that is
principally engaged in the business of providing branch-based retail consumer
and commercial banking services in the continental United States, other than TD
Waterhouse Bank, N.A. (or any successor thereto) or other bank whose primary
business is to provide banking services to customers of a brokerage, mutual
fund, or other similar consumer financial business in the United States. For
the avoidance of doubt, in no circumstances will any banking or other business
conducted by TD through its U.S. branches, agencies, representative offices or
subsidiary commercial lending companies (as such terms are defined in 12 C.F.R.
Section 211.21 or any successor provision), existing as of the date hereof or
established, acquired or operated thereafter, be deemed to constitute such
branch, agency, representative office or subsidiary commercial lending company
a Retail Bank.

     “Securities Act” means the U.S. Securities Act of 1933, as amended,
and the rules and regulations promulgated by the Commission from time to time
thereunder (or under any successor statute).

     “Subsidiary” means, with respect to any Person, any corporation or
other organization, whether incorporated or unincorporated, (i) of which such
Person or any other Subsidiary of such Person is a general partner (excluding
partnerships, the general partnership interests of which held by such Person or
any Subsidiary of such Person do not have a majority of the voting interests in
such partnership), or (ii) at least a majority of the securities or other
interests of

5

 

which having by their terms ordinary voting power to elect a
majority of the board of directors or others performing similar functions with
respect to such corporation or other organization is directly or indirectly
owned or controlled by such Person or by any one or more of its Subsidiaries,
or by such Person and one or more of its Subsidiaries.

     “Surviving Corporation Charter” means the Certificate of
Incorporation of the Surviving Corporation (as defined in the Merger
Agreement), the form of which is set forth in Exhibit C to the Merger
Agreement, as amended or supplemented from time to time.

     “Total Voting Power” means the total number of votes entitled to be
cast by the holders of the outstanding Common Stock and any other securities
entitled, in the ordinary course, to vote on matters put before the holders of
the Common Stock generally.

     “Transfer” means, directly or indirectly, to sell, transfer,
assign, pledge, encumber, hypothecate or similarly dispose of (by operation of
law or otherwise), either voluntarily or involuntarily, or to enter into any
contract, option or other arrangement or understanding with respect to the
sale, transfer, assignment, pledge, encumbrance, hypothecation or similar
disposition of (by operation of law or otherwise), any Voting Securities or any
interest in any Voting Securities; provided, however, that a
merger, amalgamation, plan of arrangement or consolidation or similar business
combination transaction in which TD is a constituent corporation (or otherwise
a party including, for the avoidance of doubt, a transaction pursuant to which
a Person acquires all or a portion of TD’s outstanding Capital Stock, whether
by tender or exchange offer, by share exchange, or otherwise) shall not be
deemed to be the Transfer of any Voting Securities Beneficially Owned by TD or
any of its Subsidiaries, provided that the primary purpose of any such
transaction is not to avoid the provisions of this Agreement and that the
successor or surviving person to such a merger, amalgamation, plan of
arrangement or consolidation or similar business combination transaction, if
not TD, expressly assumes all obligations of TD under the Agreement. For
purposes of this Agreement, the term Transfer shall include the sale of an
Affiliate of TD or TD’s interest in an Affiliate which Beneficially Owns Voting
Securities unless such Transfer is in connection with a merger, amalgamation,
plan of arrangement or consolidation or similar business combination
transaction referred to in the first proviso of the previous sentence.

     “Unaffiliated Stockholder Approval” means (i) in the case of a
tender or exchange offer, that a majority of the outstanding shares of Common
Stock not Beneficially Owned by TD and its Affiliates shall have been tendered
and not duly withdrawn at the expiration time of such tender or exchange offer,
as it may have been theretofore extended, and (ii) in the case of a merger or
consolidation, that the holders of a majority of the outstanding
shares of Common Stock not Beneficially Owned by TD and its Affiliates
shall have executed written consents in favor of the applicable transaction or
that the holders of a majority of the outstanding shares of Common Stock not
Beneficially Owned by TD and its Affiliates shall have been duly voted in favor
of the applicable transaction at a meeting of stockholders duly called and
held.

     “Voting Securities” means at any time shares of any class of
Capital Stock or other securities of the Company, other than the Class B Common
Stock, which are then entitled to vote generally in the election of Directors
and not solely upon the occurrence and during the

6

 

continuation of certain
specified events, and any securities convertible into or exercisable or
exchangeable for such shares of Capital Stock.

     Section 1.2. Other Defined Terms. The following terms shall have
the meanings defined for such terms in the Sections set forth below:

	 	 	 
	TERM
	 	SECTION

	Acquisition Merger
	 	Preamble
	Banknorth Delaware
	 	Preamble
	Berlin Mergerco
	 	Preamble
	Closing
	 	Preamble
	Company
	 	Preamble
	Company Process Agent
	 	Section 5.11(b)
	DGCL
	 	Section 1.4
	First Offer Price
	 	Section 3.3(a)
	Litigation
	 	Section 5.11(a)
	Measurement Date
	 	Section 4.9(a)
	Merger Agreement
	 	Preamble
	Migratory Merger
	 	Preamble
	Ownership Cap
	 	Section 2.1
	Permanent Suspension
	 	Section 4.9(d)
	Process Agent
	 	Section 5.11(b)
	Shortfall Amount
	 	Section 4.9(a)
	Suspension
	 	Section 4.9(b)
	TD
	 	Preamble
	TD Process Agent
	 	Section 5.11(b)
	Transfer Events
	 	Section 4.9(a)
	Transfer Notice
	 	Section 3.3
	Transferring Party
	 	Section 3.3(a)

          Section 1.3. Other Definitional Provisions. (a) The words
“hereof”, “herein” and “hereunder” and words of similar import when used in
this Agreement shall refer to this Agreement as a whole and not to any
particular provision of this Agreement, and Article and Section references
are to this Agreement unless otherwise specified.

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

          (c) Capitalized terms used but not otherwise defined herein shall have the
meanings ascribed thereto in the Merger Agreement.

          Section 1.4. Methodology for Calculations. For purposes of
calculating the number of outstanding shares of Common Stock or Voting
Securities and the number of shares of Common Stock or Voting Securities
Beneficially Owned by TD and its Affiliates as of any date, any shares of
Common Stock or Voting Securities held in the Company’s treasury or belonging
to any Subsidiaries of the Company which are not entitled to be voted or
counted for

7

 

purposes of determining the presence of a quorum pursuant to
Section 160(c) of the Delaware General Corporation Law (or any successor
statute (the “DGCL”)) shall be disregarded.

ARTICLE II

SHARE OWNERSHIP

          Section 2.1. Acquisition of Additional Voting Securities. (a)
During the term of this Agreement, except as provided in paragraph (b) below or
Section 2.2 hereof, TD covenants and agrees with the Company that it shall not,
and shall not permit any of its Affiliates to, directly or indirectly, acquire,
offer or propose to acquire or agree to acquire, whether by purchase, tender or
exchange offer, through the acquisition of control of another Person (whether
by way of merger, consolidation or otherwise), by joining a partnership,
syndicate or other Group or otherwise, the Beneficial Ownership of any
additional Voting Securities, or take any other action as a shareholder or
through the Class B Directors or otherwise, if such acquisition or action would
result in TD Beneficially Owning Voting Securities representing more
than 66 2/3%
of the Total Voting Power (the “Ownership Cap”, except that with the
approval of a majority of the Designated Independent Directors, the Board may
authorize a repurchase of Common Stock by the Company as a result of which TD
may Beneficially Own Voting Securities representing up to 70% of the Total
Voting Power, in which case the “Ownership Cap”, for all purposes of this
Agreement, shall mean the percentage of the Total Voting Power of Voting
Securities Beneficially Owned by TD and its Affiliates following the completion
of such share repurchase, provided that if following such increase in
the Ownership Cap TD’s Ownership Percentage declines to 66 2/3% as a result of
Transfers of Voting Securities by TD and its Affiliates, the “Ownership Cap”
shall again be 66 2/3%).

          (b) Notwithstanding the foregoing, the acquisition (whether by merger,
consolidation or otherwise) by TD or an Affiliate thereof of any Person that
Beneficially Owns Voting Securities, or the acquisition of Voting Securities in
connection with securing or collecting a debt previously contracted in good
faith in the ordinary course of TD’s or such
Affiliate’s banking or brokerage business, shall not constitute a
violation of the Ownership Cap; provided that (i) the primary purpose of
any such transaction is not to avoid the provisions of this Agreement,
including the Ownership Cap, and (ii) that in the case of an acquisition of
another Person, TD uses reasonable best efforts to negotiate terms in
connection with the relevant acquisition agreement requiring such other Person
to divest itself of sufficient Voting Securities it Beneficially Owns so that
the Ownership Cap would not be exceeded pro forma for the acquisition, with
such divestiture to be effected concurrently with, or as promptly as
practicable following, the consummation of such acquisition (but in no event
more than 90 days following such consummation, or such longer period as may be
necessary so that neither TD nor any of its Affiliates incurs any liability
under Section 16(b) of the Exchange Act) and, to the extent such divestiture
does not occur despite the use of such reasonable best efforts, the successor
or surviving Person to such transaction, if not TD or such Affiliate, expressly
assumes all obligations of TD or such Affiliate, as the case may be, under this
Agreement; and provided, further, that the provisions of
paragraph (c) below are complied with.

          (c) (i) If at any time TD or any of its Affiliates Beneficially Own in
the aggregate Voting Securities representing more than the Ownership Cap, then
TD shall, as soon as is

8

 

reasonably practicable, but in no event longer than 90
days after its Ownership Percentage first exceeds the Ownership Cap (but in no
manner that would require TD or any such Affiliate to incur liability under
Section 16(b) of the Exchange Act) Transfer (in any manner permitted by Section
3.2(b), regardless of whether such Transfer occurs prior to or after the second
anniversary of the Closing) a number of Voting Securities sufficient to reduce
the amount of Voting Securities Beneficially Owned by it and its Affiliates to
an amount representing not greater than the Ownership Cap.

     (ii) Notwithstanding any other provision of this Agreement, in no
event may TD or any of its Affiliates, directly or indirectly including
through any agreement or arrangement, exercise any voting rights, during
the term of this Agreement, in respect of any Voting Securities
Beneficially Owned by TD and its Affiliates representing in excess of the
Ownership Cap.

          (d) Any additional Voting Securities acquired and Beneficially Owned by TD
or any of its Affiliates following the Closing shall be subject to the
restrictions contained in this Agreement as fully as if such Voting Securities
were acquired by TD at the Closing pursuant to the Merger Agreement.

          Section 2.2. Going Private Transactions. (a) TD shall not, and
shall cause its Affiliates not to, propose or initiate any Going Private
Transaction unless such Going Private Transaction (i) involves the acquisition
of or offer to acquire 100% of the Common Stock not owned by TD and its
Affiliates (and, in the case of a Going Private Transaction to be effected by
means of a tender or exchange offer, includes a commitment by TD or such
Affiliate to promptly consummate a short-form merger to acquire any remaining
shares of Common Stock at the same price in the event it obtains pursuant to
such tender or exchange offer such level of ownership of such classes of
Capital Stock that
would be required to effect a merger pursuant to Section 253 of the DGCL
or any successor provision) and (ii) is conducted in compliance with this
Section 2.2.

          (b) Prior to the second anniversary of the Closing, TD shall not, and
shall cause its Affiliates not to, propose or initiate any Going Private
Transaction unless invited to do so by a majority of the Designated Independent
Directors. Any Going Private Transaction effected during this period shall
also be subject to the requirements of Section 2.2(c).

          (c) From the second anniversary of the Closing until the fifth anniversary
of the Closing:

     (i) TD or any its Affiliates may initiate and hold discussions
regarding a Going Private Transaction with the Board on a confidential
basis that would not reasonably be expected to require either the Company
or TD to make any public disclosure thereof in order to comply with their
disclosure obligations under the U.S. federal securities laws or Canadian
securities laws. In connection with any such Going Private Transaction,
the Designated Independent Directors may retain an Independent Investment
Banking Firm and outside legal counsel, the fees and expenses of which
shall be borne by the Company. If a majority of the Designated
Independent Directors

9

 

approves such transaction, TD or such Affiliates
may publicly announce, commence and effect such Going Private
Transaction.

     (ii) Any Going Private Transaction commenced pursuant to this
Section 2.2(c) may only be completed if it receives Unaffiliated
Stockholder Approval.

          (d) From and after the fifth anniversary of the Closing, TD or any of its
Affiliates may propose, initiate or effect a Going Private Transaction,
provided that such Going Private Transaction is either approved by a majority
of the Designated Independent Directors or by Unaffiliated Stockholder Approval
and further provided that TD and its Affiliates shall not propose, publicly
announce or initiate a Going Private Transaction pursuant to this Section
2.2(d) without providing prior notice to the Designated Independent Directors
and offering to first discuss and negotiate confidentially the terms such
proposed Going Private Transaction with the Designated Independent Directors.
If requested by a majority of the Designated Independent Directors, TD will use
its reasonable best efforts to so negotiate the terms of such proposed Going
Private Transaction in good faith, provided that if, notwithstanding the use of
such reasonable best efforts, TD and the Designated Independent Directors are
unable to agree on the terms of a Going Private Transaction within 60 days, TD
may, subject to applicable law, publicly propose to the Company’s shareholders
and, subject to receiving Unaffiliated Stockholder Approval thereof, publicly
announce, commence and effect a Going Private Transaction. In connection with
any such Going Private Transaction, the Designated Independent Directors may
retain an Independent Investment Banking Firm and outside legal counsel, the
fees and expenses of which shall be borne by the Company.

          Section 2.3. Right of First Refusal to Contribute Capital. Until
TD and its Affiliates no longer Beneficially Own Voting Securities representing
at least 25% of the Total Voting Power, whenever the Company seeks to raise
additional capital in the form of equity securities or securities
convertible into, or exercisable or exchangeable for, equity securities,
whether for purposes of the funding of an acquisition or the expansion of its
business or for any other reason (which shall not include for purposes of this
Section 2.3 (i) the issuance of Capital Stock of the Company upon the exercise
of, or the grant or award of, employee stock options, stock appreciation rights
or similar instruments of the type covered by Section 2.5, (ii) the issuance of
preferred stock that would constitute “nonvoting shares” as defined in Section
225.2(q)(2) of Regulation Y and securities issued by subsidiary trusts of the
type customarily referred to as “trust preferred securities” (provided that
such securities do not constitute Voting Securities) or (iii) the issuance of
Capital Stock to the equityholders of another Person as acquisition
consideration paid to such equityholders pursuant to the acquisition by the
Company of such Person), the Company shall offer to TD the right to provide all
or any portion of such additional capital (at TD’s option) in the form of an
additional investment in shares of Common Stock or, if the Company proposes to
raise such additional capital in the form of other Voting Securities, in such
other Voting Securities; provided, however, that if such
additional investment would result in a violation of the Ownership Cap, TD may
only acquire pursuant to this Section 2.3 such number of shares of Common Stock
(or such number of other Voting Securities, as applicable) as would not result
in such violation. The purchase price paid by TD or any of its Affiliates for
any securities acquired pursuant to this Section 2.3 will be the Fair Market
Value of such securities as of the date on which such issuance is approved by
the Board. The Company shall provide TD with 10 Business Days prior written
notice (or if such notice period is not

10

 

possible under the circumstances, such
prior notice as is practicable) of any proposed issuance subject to this
Section 2.3, and TD may exercise its rights under this Section 2.3 and/or
Section 2.4 (without duplication) by providing written notice to the Company
within 10 Business Days after receiving such written notice from the Company.
In the event that, in connection with any capital raising by the Company
covered by this Section 2.3, TD gives notice of its intent to exercise its
option under this Section 2.3 and it has not purchased the securities subject
thereto within 60 days thereafter for reasons not primarily related to actions
or omissions of the Company, TD shall be deemed to have waived its rights to
purchase such securities under this Section 2.3 with respect to such capital
raising (but such waiver shall not affect its rights with respect to such
capital raising under Section 2.4, to the extent it has provided notice as
contemplated above of its exercise of such rights, or its rights under this
Section 2.3 or Section 2.4 with respect to any future capital raising by the
Company). Notwithstanding any provision of Section 2.2, no purchase of
additional securities pursuant to this Section 2.3 shall be deemed to be a
Going Private Transaction for purposes of this Agreement.

          Section 2.4. Stock Purchase Rights. (a) Until TD and its
Affiliates no longer Beneficially Own Voting Securities representing at least
25% of the Total Voting Power, if the Company at any time shall propose to
issue any shares of Common Stock (whether for financings, acquisitions or
otherwise but excluding such issuances pursuant to the exercise of employee
stock options, stock appreciation rights or similar instruments of the type
covered by Section 2.5), TD shall have the option (to the extent it did not
previously exercise its rights pursuant to Section 2.3) to purchase for cash
directly from the Company up to a sufficient number of shares of Common Stock
at the same purchase price (including any assumed indebtedness which is part of
the purchase price and valuing any non-cash consideration at its Fair Market
Value) as the price for the additional
shares of Common Stock to be issued so that, after the issuance, TD would
Beneficially Own the same Ownership Percentage as was Beneficially Owned by TD
and its Affiliates immediately prior to the issuance of such additional shares
of Common Stock; provided, however, that if such purchase would
result in a violation of the Ownership Cap, TD may only purchase such number of
shares of Common Stock as would not result in such violation. The Company
shall provide such information, to the extent reasonably available, relating to
any non-cash consideration as TD may reasonably request in order to evaluate
any non-cash consideration paid in respect of any such issuance.

          (b) Until TD and its Affiliates no longer Beneficially Own Voting
Securities representing at least 25% of the Total Voting Power, in the event
that the Company shall propose to issue options (other than employee stock
options, stock appreciation rights or similar instruments of the type covered
by Section 2.5) or warrants that are exercisable for, or debt or equity
securities that are convertible into or exchangeable for, shares of Common
Stock, the Company shall offer TD the opportunity to purchase for cash up to
its Ownership Percentage, as of the time of such issuance, of such options,
warrants or convertible debt or equity securities at the same purchase price as
is offered to the other purchasers thereof; provided, however,
that if any exercise, conversion or exchange of such options, warrants or
convertible debt or equity securities would result (on a pro forma
basis after
giving effect to the exercise, conversion or exchange of all other such
options, warrants or convertible debt or equity securities issued at such time)
in a violation of the Ownership Cap, TD may only purchase such number of
options, warrants or convertible debt or equity securities as would not, after
giving effect to the exercise, conversion or exchange of all such options,
warrants or convertible debt or equity securities,

11

 

result in such violation.
To the extent that TD elects to purchase such options, warrants or convertible
debt or equity securities, (x) TD shall not have the right to purchase pursuant
to paragraph (a) above the corresponding number of shares of Common Stock
underlying such options, warrants or convertible debt or equity securities in
connection with the issuance of such underlying shares of Common Stock, and (y)
the shares of Common Stock for which such options, warrants or convertible debt
or equity securities may be exercised, converted or exchanged shall not be
deemed to be Beneficially Owned for purposes of the Ownership Cap unless and
until TD and its Affiliates shall have exercised, converted or exchanged such
options, warrants or debt or equity securities for shares of Common Stock (and
TD shall not exercise or convert any such options, warrants or convertible debt
or equity securities to the extent doing so would result in a violation of the
Ownership Cap).

          (c) The Company shall provide TD with prior written notice of any issuance
subject to this Section 2.4, and TD shall provide written notice to the Company
regarding its exercise of its rights pursuant to this Section 2.4, each in
connection with the notice required by Section 2.3 and in accordance with the
terms of that Section. In the event that, in connection with any proposed
issuance by the Company, TD gives notice of its intent to exercise its option
under this Section 2.4, and it has not purchased the applicable shares of
Common Stock, options, warrants or convertible debt or equity securities
concurrently with the related issuance of such securities by the Company for
reasons not relating primarily to actions or omissions of the Company, TD shall
be deemed to have waived its rights to purchase such securities under this
Section 2.4 with respect to such proposed issuance (but such waiver shall not
affect its rights under this Section 2.4 or Section 2.3 with respect to any
future issuance of securities by the Company).

          Section 2.5. Company Share Repurchases. If, at any time after the
Closing and prior to the first date that TD and its Affiliates no longer
Beneficially Own Voting Securities representing at least 25% of the Total
Voting Power, the Company shall issue shares of Common Stock (i) upon exercise
of any option, warrant, stock appreciation right or other similar instrument
granted to its directors, officers, employees, consultants or others, or (ii)
in the form of restricted shares or similar instruments, in either case
pursuant to any compensation, retention, incentive or similar program or
arrangement in effect from time to time, then the Company shall, unless
prohibited by law, and subject to the receipt of any required regulatory
approval, use its reasonable best efforts to repurchase a corresponding number
of shares of Common Stock in the open market within 120 days after any such
issuance so that the net total number of outstanding shares of Common Stock are
not increased by such issuance, provided that the Company shall have no
repurchase obligation under this Section 2.5 in the event that the issuances of
shares subject hereto, together with any prior issuances contemplated by this
Section 2.5 with respect to which the Company has not yet effected repurchases
hereunder, do not exceed 1% of the outstanding Common Stock in the aggregate.
The Company’s obligation under this Section 2.5 shall be subject to the receipt
of any required regulatory approval, and in the event of any such requirement
the 120-day period referred to above shall not commence until the receipt of
such regulatory approval. In the event that the Company is unable to complete
the repurchases contemplated hereby within the 120-day period, the Company
shall use its reasonable best efforts to complete such repurchases as promptly
as practicable thereafter. The Company shall also be permitted to meet its
obligations hereunder by means of an ongoing regular stock repurchase

12

 

plan, in
which case offsetting repurchases may occur prior to the related issuance of
Common Stock hereunder.

ARTICLE III

TRANSFER RESTRICTIONS

          Section 3.1. General Transfer Restrictions. The right of TD and
its Affiliates to Transfer any Voting Securities is subject to the restrictions
set forth in this Article III, and no Transfer of Voting Securities by TD or
any of its Affiliates may be effected except in compliance with this Article
III. Any attempted Transfer in violation of this Agreement shall be of no
effect and null and void, regardless of whether the purported transferee has
any actual or constructive knowledge of the Transfer restrictions set forth in
this Agreement, and shall not be recorded on the stock transfer books of the
Company.

          Section 3.2. Restrictions on Transfer. (a) Without the prior
written consent of the Company (acting through a majority of the Designated
Independent Directors), during an initial period of two years following the
Closing, TD shall not, and shall not permit its Affiliates to, Transfer any
Voting Securities or agree to Transfer, directly or indirectly, any Voting
Securities; provided that the foregoing restriction shall not prohibit
TD or any of its Affiliates from Transferring any Voting Securities (i) to the
Company pursuant to Section 2.1(c) or (ii) to an Affiliate of TD that
agrees in writing with the Company to be bound by this Agreement as fully
as if it were an initial signatory hereto.

          (b) Following the second anniversary of the Closing and until the fifth
anniversary of the Closing, TD shall not, and shall not permit its Affiliates
to, Transfer any Voting Securities or agree to Transfer, directly or
indirectly, any Voting Securities; provided that the foregoing
restriction shall not be applicable to Transfers:

     (i) to an Affiliate of TD which agrees in writing with the Company
to be bound by this Agreement as fully as if it were an initial signatory
hereto;

     (ii) pursuant to the restrictions of Rule 144 under the Securities
Act applicable to sales of securities by Affiliates of an issuer
(regardless of whether TD or its Affiliates is deemed at such time to be
an Affiliate of the Company);

     (iii) subject to Section 3.3, to any Person who, after giving effect
to such Transfer, would Beneficially Own Voting Securities representing
in the aggregate less than 5% of the Total Voting Power; provided
that such Person is an institutional investor which (x) purchases such
shares in the normal course of its investment business, for investment
purposes only, and with no intention of influencing control of the
Company and (y) provides appropriate certification to the Company as to
the foregoing matters;

     (iv) pursuant to a firm commitment, underwritten distribution to the
public, registered under the Securities Act, in which TD uses its
commercially reasonable efforts to (A) effect as wide a distribution of
such Voting Securities as is reasonably practicable, and (B) not
knowingly, sell Voting Securities to any Person who after consummation of

13

 

such offering would have Beneficial Ownership of Voting Securities
representing in the aggregate 5% or more of the Total Voting Power;

     (v) as a bona fide pledge to a financial institution, entered into
in good faith and not for the purpose of avoiding the restrictions set
forth in this Agreement and with the prior written consent, not to be
unreasonably withheld or delayed, of and on terms reasonably satisfactory
to the Company (acting through a majority of the Designated Independent
Directors); provided that the amount of Voting Securities subject
to the pledge does not exceed 19.9% of the Total Voting Power; or

     (vi) with the Company’s prior written consent (provided by a
majority of the Designated Independent Directors).

          (c) Subject to the provisions of Section 3.3, following the second
anniversary of the Closing, TD and its Affiliates may Transfer Voting
Securities or agree to Transfer Voting Securities to a Person that would
Beneficially Own Voting Securities representing in the aggregate more than 10%
of the Total Voting Power; provided, that if TD and its Affiliates would
Beneficially Own Voting Securities representing in the aggregate less than 50%
of the Total Voting Power as a result of such Transfer, TD and its Affiliates
shall condition such Transfer by them to such Person upon such Person
contemporaneously therewith offering to acquire, or acquiring, on the same
price and other financial terms and conditions as are
applicable to TD and/or its Affiliates in such Transfer, either (x) 100%
of the Voting Securities Beneficially Owned by stockholders of the Company
other than TD and its Affiliates or (y) a number of Voting Securities
Beneficially Owned by stockholders of the Company other than TD and its
Affiliates equal to the product of (A) the aggregate number of Voting
Securities Beneficially Owned by stockholders of the Company other than TD and
its Affiliates multiplied by (B) a fraction, the numerator of which is the
number of Voting Securities proposed to be Transferred by TD and its Affiliates
to such Person and the denominator of which is the aggregate number of Voting
Securities Beneficially Owned by TD and its Affiliates on the date of such
Transfer; and provided, further, that a Transfer pursuant to this Section
3.2(c) may only be made prior to the third anniversary of the Closing if the
Chief Executive Officer of TD advises the Board that he has determined to make
such Transfer based on his good faith assessment of the requirements of TD’s
financial or capital situation at such time, exercising his business judgment
based on changes in circumstances since the date of this Agreement. In order
for the conditions in the preceding proviso to be satisfied, (A) such Person
shall make such offer in compliance with applicable law, including, if
applicable, Section 14(d)(1) of the Exchange Act and Regulation 14D promulgated
thereunder and (B) if a result of such Transfer, such Person would, following
such Transfer, Beneficially Own Voting Securities representing in the aggregate
more than 15% of the Total Voting Power but less than 90% of each class of
Capital Stock of which ownership would be required in order to effect a merger
pursuant to Section 253 of the DGCL or any successor provision, such Person
must, in connection with the closing of such transaction, agree to be bound by
this Agreement as fully as if it were an initial signatory hereto. The
provisions of this Section 3.2(c) shall only apply for as long as TD and its
Affiliates Beneficially Own Voting Securities representing at least 25% of the
Total Voting Power.

          Section 3.3. Right of First Offer. Prior to making any offer to
Transfer any Voting Securities pursuant to clause (iii) of Section 3.2(b) or
any offer to Transfer (in one

14

 

transaction or series of related transactions)
less than 100% of the Voting Securities Beneficially Owned at such time by TD
and its Affiliates pursuant to Section 3.2(c), TD and/or its Affiliates
proposing to effect such Transfer (collectively, the “Transferring
Party”) shall give the Company the opportunity to purchase such Voting
Securities in the following manner:

          (a) The Transferring Party shall give written notice (a “Transfer
Notice”), to the Company stating such Transferring Party’s intention to
effect such a Transfer, the number of and description of the Voting Securities
subject to such Transfer, the price and terms on which such Transferring Party
proposes to offer such Voting Securities for Transfer (the “First Offer
Price”) and the other material terms upon which such Transfer is proposed
to be made.

          (b) Upon receipt of the Transfer Notice, the Company will have an
irrevocable option to purchase all of the Voting Securities subject to such
Transfer Notice at the First Offer Price and otherwise on the terms and
conditions described in the Transfer Notice. The Company shall, within 5
Business Days from receipt of the Transfer Notice, indicate if it accepts such
offer by sending irrevocable written notice of any such acceptance to the
Transferring Party, and the Company shall then be obligated to purchase all
such Voting Securities on the terms and conditions set forth in the Transfer
Notice.

          (c) If the Company elects to purchase all of such Voting Securities, the
Company and the Transferring Party shall be legally obligated to consummate
such transaction and shall use their commercially reasonable efforts to
consummate such transaction as promptly as practicable but in any event within
5 Business Days following the delivery of such election notice or, if later, 5
Business Days after receipt of all required regulatory approvals (but in no
event more than 90 days after the delivery of such election notice). In the
event that the number of Voting Securities to be purchased by the Company in
connection with its exercise of its rights pursuant to this Section 3.3 in any
twelve-month period would exceed 4.9% of the total number of outstanding Voting
Securities at the date of the Transfer Notice (or, if more than one Transfer
Notice has been given, the date of the last of such Transfer Notices), the
Company may, at its option, designate any Person to purchase the Voting
Securities subject to such Transfer Notice; provided that if the closing of the
purchase of the Voting Securities by any such designee is delayed by reason of
the need by such designee to obtain required regulatory approvals beyond the
date on which the Company could have consummated such purchase pursuant to the
first sentence of this Section 3.3(c), the purchase price for such Voting
Securities shall also include interest on the First Offer Price for the Voting
Securities subject to the Transfer Notice at the Prime Rate from the date on
which the Company would have been legally permitted to consummate such purchase
to but excluding the date that the designee actually purchases the shares.

          (d) If the Company does not elect to purchase all of such Voting
Securities pursuant to this Section 3.3 (or if, having made such election, does
not complete such purchase within the applicable time period specified in
Section 3.3(c)), then the Transferring Party shall be free for a period of 90
days from the date the election notice was due to be received from the Company
to enter into definitive agreements to Transfer such Voting Securities to a
transferee for consideration having a value not less than 95% of the First
Offer Price; provided that any such definitive agreement provides for
the consummation of such Transfer to take place within nine months from the
date of such definitive agreement and is otherwise on terms not more

15

 

favorable
to the transferee in any material respect than were contained in the Transfer
Notice. In the event that the Transferring Party has not entered into such a
definitive agreement with such 90-day period, or has so entered into such an
agreement but has not consummated the sale of such Voting Securities within
nine months from the date of such definitive agreement, then the provisions of
this Section 3.3 shall again apply, and such Transferring Party shall not
Transfer or offer to Transfer such Voting Securities not so Transferred without
again complying with this Section 3.3, to the extent applicable.

          Section 3.4. Legend on Securities. (a) Each certificate
representing shares of Company Common Stock Beneficially Owned by TD or its
Affiliates and subject to the terms of this Agreement shall bear the following
legend on the face thereof:

     “THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO
RESTRICTIONS ON TRANSFER AND CERTAIN OTHER LIMITATIONS SET FORTH IN A
CERTAIN STOCKHOLDERS AGREEMENT DATED AS OF AUGUST 25, 2004, BETWEEN TD
BANKNORTH INC. (THE “COMPANY”) AND THE TORONTO-DOMINION BANK, AS THE SAME
MAY BE AMENDED FROM TIME
TO TIME (THE “AGREEMENT”), COPIES OF WHICH AGREEMENT ARE ON FILE AT
THE PRINCIPAL OFFICE OF THE COMPANY.”

          (b) Upon any acquisition by TD or any of its Affiliates of additional
shares of Company Common Stock, TD shall, or shall cause such Affiliate to,
submit the certificates representing such shares of Company Common Stock to the
Company so that the legend required by this Section 3.4 may be placed thereon
(if not so endorsed upon issuance).

          (c) The Company may make a notation on its records or give instructions to
any transfer agents or registrars for the Company Common Stock in order to
implement the restrictions on Transfer set forth in this Agreement.

          (d) In connection with any Transfer of shares of Company Common Stock, the
transferor shall provide the Company with such customary certificates, opinions
and other documents as the Company may reasonably request to assure that such
Transfer complies fully with this Agreement and with applicable securities and
other laws.

ARTICLE IV

CORPORATE GOVERNANCE

          Section 4.1. Composition of the Board. (a) Prior to the Effective
Time, the Company, as the sole stockholder of Banknorth Delaware, shall take
all requisite action so that, effective as of the Effective Time, the Board
shall initially be composed of up to 19 Directors consisting of (i) the
individuals constituting the Board on the date of the Closing (provided that
such number does not exceed 14, in which case the Company shall take all
requisite action to designate no more than 14 of such individuals to become
directors of Banknorth Delaware pursuant to this Section 4.1), including the
Chief Executive Officer of the Company and the Designated Independent
Directors, who shall be Class A Directors, and (ii) up to five individuals
designated by TD in writing to the Company not less than 15 days prior to the
expected date of

16

 

the Closing (or, if such period of notice is not practicable
under the circumstances because an individual who has been so designated is no
longer available for such service, such prior notice as is practicable), who
shall be Class B Directors. Except as provided in Section 4.1(b), the size and
composition of the Board may thereafter be changed as permitted by and in
accordance with applicable law and the Surviving Corporation Charter and the
By-Laws of the Surviving Corporation; provided, however, that
none of TD or its Affiliates may vote its shares, execute a written consent as
a stockholder or otherwise act to remove, or fail to re-elect, any person
serving as a director of Banknorth immediately prior to the Effective Time who
becomes a Class A Director immediately following the Effective Time, prior to
the date that such director would have been required to stand for re-election
of Banknorth measured as of the date hereof.

          (b) Following the Closing, (i) the Board shall include the Designated
Independent Directors, (ii) the present Chief Executive Officer of the Company
shall continue to serve as Chairman and a Director of the Company as long as he
is the Chief Executive Officer of the Company and (iii) the number of Class B
Directors serving at any time shall be as designated
from time to time by the holder of the Class B Common Stock, subject to
Section 4.9(b) and provided that the number of Class B Directors shall not
exceed the sum of (x) one plus (y) the total number of Class A Directors then
in office. Each Designated Independent Director shall remain in office until
his or her successor as Designated Independent Director has been duly nominated
and elected or appointed as a Director. Upon the resignation, retirement or
other removal from office of any Designated Independent Director, the remaining
Designated Independent Directors (or, if no Designated Independent Directors
are then in office, a majority of the Independent Directors) shall as promptly
as practicable fill such vacancy either by designating and nominating a new
candidate (who must meet the requirements of an Independent Director) to fill
such office or by designating another Independent Director then in office as a
Designated Independent Director, subject in each case to the consent of a
majority of the Directors on the Nominating Committee, which (subject to the
exercise of their fiduciary duties) shall not be unreasonably withheld.
Nominations for election or reelection of a Class A Director in connection with
any meeting held for the purpose of electing Class A Directors shall be made by
a majority of the Designated Independent Directors, subject to the consent of a
majority of the Directors then serving on the Nominating Committee, which
(subject to the exercise of their fiduciary duties) shall not be unreasonably
withheld).

          Section 4.2. Vote Required for Board Action; Board Quorum. (a)
Any determination or other action of or by the Board (other than action by
unanimous written consent in lieu of a meeting) shall require the affirmative
vote or consent, at a meeting at which a quorum is present, of a majority of
directors present at such meeting, including a majority of the Class B
Directors present at such meeting.

          (b) A quorum for any meeting of the Board shall require the presence of
(i) a majority of the total number of authorized directors then constituting
the entire Board and (ii) a majority of the Class B Directors then in office.

          (c) TD shall, and shall cause each of its Affiliates who hold Voting
Securities to, be present in person or represented by proxy at all meetings of
securityholders of the Company to the extent necessary so that all Voting
Securities Beneficially Owned by TD and its Affiliates

17

 

shall
be counted as present for the purpose of determining the presence of a quorum at such
meeting.

          Section 4.3. Committees. To the extent permitted by applicable
laws, rules and regulations (including any requirements under the Exchange Act
or the rules of the New York Stock Exchange or any other applicable securities
exchange on which the Common Stock is then listed) and except as otherwise
determined by the Board (in accordance with Section 4.2) or as provided in
Section 4.3(d) and subject to Section 4.9(b), each committee of the Board shall
consist of a majority of Class B Directors and not fewer than two Class A
Directors. All decisions of such committees shall require the affirmative vote
of a majority of the Directors then serving on such committee.

          (b) To the extent that no Class B Director is permitted to serve on a
particular committee under applicable laws, rules and regulations (including
any requirements under the Exchange Act or the rules of the New York Stock Exchange or any other
applicable securities exchange on which the Common Stock is then listed), the
Company shall take all necessary action to permit at least one Class B Director
to attend each meeting of such committee as a non-voting observer, in each case
to the extent permitted by such applicable laws, rules and regulations.

          (c) The Nominating Committee of the Board shall consist of four Class B
Directors and three of the Designated Independent Directors (selected by
majority vote of all the Designated Independent Directors from among their
number), each of whom shall meet the requirements of any applicable laws, rules
and regulations (including any requirements under the Exchange Act or the rules
of the New York Stock Exchange or any other applicable securities exchange on
which the Common Stock is then listed). All decisions of the Nominating
Committee shall require the affirmative vote of a majority of the Directors
then serving on such committee.

          (d) The Designated Independent Directors Committee of the Board shall be
comprised solely of all of the Designated Independent Directors.
Notwithstanding anything to the contrary contained herein, any action or
determination of or by the Designated Independent Directors may be exercised by
the Designated Independent Directors Committee.

          Section 4.4. Certificate of Incorporation and Bylaws to be
Consistent. The Board shall take or cause to be taken all lawful action
necessary or appropriate to ensure that at all times the Certificate of
Incorporation and the Bylaws of the Company contain provisions consistent with
the terms of this Agreement (including without limitation this Article IV) and
none of the Certificate of Incorporation or the Bylaws of the Company or any of
the corresponding constituent documents of the Company’s Subsidiaries contain
any provisions inconsistent therewith or which would in any way nullify or
impair the terms of this Agreement or the rights of the Company or of TD and
its Affiliates hereunder. None of the Company, the Board, any committee
thereof or TD or any of its Affiliates shall take or cause to be taken any
action inconsistent with the terms of this Agreement (including without
limitation this Article IV) or TD’s or the Company’s rights hereunder. Without
limiting the generality of the foregoing, any stockholders’ rights plan or
other anti-takeover measure adopted by the Company shall exclude TD and its
Affiliates from its operation in all respects, and shall not impair in any

18

 

respect the rights of TD or any of its Affiliates hereunder, including their
rights under Section 3.2.

          Section 4.5. Information Rights. The Company acknowledges that
TD’s investment in the Company pursuant to the Merger Agreement is material and
strategic to TD. Accordingly, the Company shall provide TD, on an ongoing and
current basis, such access to and information with respect to the Company’s
business, operations, plans and prospects as TD may from time to time
reasonably determine it requires in order to appropriately manage and evaluate
its investment in the Company.

          (b) Without limiting the generality of the foregoing, as soon as
reasonably practicable following the end of each fiscal quarter and fiscal year
of the Company, the Company shall furnish to TD the consolidated and
consolidating financial statements of the Company (including providing draft
statements as such statements become available and, with respect to fiscal
years, audit reports as such reports become available), together with such
supporting detailed information as TD may reasonably request to enable it to
prepare its own consolidated financial statements. In addition, the Company
shall furnish to TD, promptly after the end of each calendar month, copies of
internal management financial reports regarding the Company’s financial results
and operations, containing such information as TD may reasonably request from
time to time.

          (c) During any Suspension and following a Permanent Suspension:

     (i) Subject to the requirements of law, TD shall keep confidential,
and shall cause its representatives to keep confidential, all information
and documents obtained pursuant to this Section 4.5 unless such
information (w) is or becomes publicly available other than as a result
of a breach of this Section 4.5(c) by TD or its representatives; (x) was
within the possession of TD or any of its representatives prior to its
being furnished to TD by or on behalf of Banknorth, provided that the
source of such information was not known by TD to be bound by a
confidentiality agreement with, or other contractual or legal obligation
of confidentiality to, Banknorth with respect to such information; (y) is
or becomes available to TD or any of its representatives on a
non-confidential basis from a source other than Banknorth or any of its
Representatives; provided that such source was not known to TD to
be bound by a confidentiality agreement with, or other contractual or
legal obligation of confidentiality to, Banknorth with respect to such
information; or (z) is independently developed by or on behalf of TD
without violating any of its obligations under this Section 4.5(c).

     (ii) In the event TD believes that it is legally required to
disclose any information or documents contemplated by this Section
4.5(c), it shall to the extent possible under the circumstances provide
reasonable prior notice to the Company so that the Company may, at its
own expense, seek a protective order or otherwise take reasonable steps
to protect the confidentiality of such information.

     (iii) Notwithstanding the foregoing, TD may disclose any information
or documents contemplated by this Section 4.5(c) in a filing with a
Governmental Entity to

19

 

the extent required by applicable law, provided
that it shall to the extent practicable under the circumstances provide
prior notice to the Company.

     (iv) The rights of TD and the obligations of the Company hereunder
shall be subject to applicable laws relating to the exchange of
information and other applicable laws. The provisions of this Section
4.5(c) shall survive any termination of this Agreement.

          (d) Subject to applicable law, the Company will, and will cause each of
its Subsidiaries to, make available to representatives of the Office of the
Superintendent of Financial Institutions (Canada) and any other regulatory
agencies with authority over TD, such of its books, records and personnel, and provide access to such of its offices
and other facilities, as such representatives may from time to time request,
and will comply promptly and fully with any request for information that such
representatives may make from time to time.

          Section 4.6. Trade Name. The Company and its Subsidiaries shall
use the trade name “TD Banknorth” as their brand and marketing name for general
application, subject to such limitations and variations, if any, as TD and the
Company may from time to time agree upon; provided, however, that
this provision shall terminate (subject to a reasonable transition period as
appropriate to avoid undue disruption of the Company’s business without
impairing TD’s intellectual property rights in its brand) upon written request
by either the Company or TD to the other following a Permanent Suspension.
Such use shall be subject to such customary restrictions, limitations and
regulations as TD shall establish from time to time.

          Section 4.7. Corporate Opportunities.

          (a) In recognition of the fact that the Company and TD currently engage
in, and may in the future engage in, the same or similar activities or lines of
business and have an interest in the same areas and types of corporate
opportunities (subject, in each such case, to the provisions of Section 4.10),
and in recognition of the benefits to be derived by the Company through its
continued contractual, corporate and business relations with TD (including
possible service of officers and directors of TD as officers and directors of
the Company), the provisions of this Section 4.7 are set forth to regulate and
define the conduct of certain affairs of the Company as they may involve TD and
its officers and directors, and the powers, rights, duties and liabilities of
the Company and its officers, directors and stockholders in connection
therewith. In furtherance of the foregoing (but without limiting the
provisions of Section 4.10), the Company renounces any interest or expectancy
in, or in being offered the opportunity to participate in, any corporate
opportunity not allocated to it pursuant to Section 4.7 to the fullest extent
permitted by Section 122(17) of the DGCL (or any successor provision), and TD
renounces any interest or expectancy in, or in being offered the opportunity to
participate in, any corporate opportunity presented to a director or officer of
TD and allocated to the Company pursuant to Section 4.7 to the fullest extent
permitted by applicable law.

          (b) Subject to Section 4.10, TD shall have no duty to refrain from
engaging in the same or similar activities or lines of business as the Company,
and neither TD nor any officer or director thereof (except as provided in
Section 4.7(c)) shall be liable to the Company or its stockholders for breach
of any fiduciary duty by reason of any such activities of TD. In the

20

 

event
that TD acquires knowledge of a potential transaction or matter which may be a
corporate opportunity for both TD and the Company, TD shall have no duty to
communicate or offer such corporate opportunity to the Company and shall not be
liable to the Company or its stockholders for breach of any fiduciary duty as a
stockholder of the Company by reason of the fact that TD pursues or acquires
such corporate opportunity for itself, directs such corporate opportunity to
another Person, or does not communicate information regarding such corporate
opportunity to the Company.

          (c) In the event that a director or officer of the Company who is also a
director or officer of TD acquires knowledge of a potential transaction or
matter which may be a corporate opportunity for both the Company and TD, such
director or officer of the Company shall have fully satisfied and fulfilled the
fiduciary duty of such director or officer to the Company and its stockholders
with respect to such corporate opportunity if such director or officer acts in
a manner consistent with the following policy:

     (i) A corporate opportunity offered to any Person who is an officer
of the Company, and who is also a director but not an officer of TD,
shall belong to the Company;

     (ii) A corporate opportunity offered to any Person who is a director
but not an officer of the Company, and who is also a director or officer
of TD, shall belong to the Company if such opportunity is expressly
offered to such Person in writing solely in his or her capacity as a
director of the Company, and otherwise shall belong to TD; and

     (iii) A corporate opportunity offered to any Person who is an
officer of both the Company and TD (other than the Chief Executive
Officer of the Company if at the relevant time he is also an officer of
TD, with respect to whom opportunities shall be subject to paragraph (i)
above except if such opportunity is expressly offered to such individual
in writing solely in his or her capacity as an officer of TD) shall
belong to the Company if such opportunity is expressly offered to such
Person in writing solely in his or her capacity as an officer of the
Company, and otherwise shall belong to TD.

     (d) For purposes of this Section 4.7 only:

     (i) A director of the Company who is Chairman of the Board of
Directors of the Company or of a committee thereof shall not be deemed to
be an officer of the Company by reason of holding such position (without
regard to whether such position is deemed an office of the Company under
the By-Laws of the Company), unless such Person is a full-time employee
of the Company; and

     (ii) (A) The term “Company” shall mean the Company and its
Subsidiaries, and (B) the term “TD” shall mean TD and its Subsidiaries
(other than the Company and its Subsidiaries).

          Section 4.8. NYSE Listing. Except following the completion of a
Going Private Transaction conducted in accordance with Section 2.2 or with the
prior consent of a majority of the Designated Independent Directors, TD will
not take or cause the Company to take any action to delist, or that would
reasonably be expected to result in the delisting of, the

21

 

Common Stock from the
New York Stock Exchange; provided that nothing in this Section 4.8 shall (i)
prohibit any such action if such delisting is undertaken, in consultation with
the Designated Independent Directors, in connection with the establishment of
the quotation of the Common Stock on the NASDAQ National Market or (ii) require
TD or any of its Affiliates to take any affirmative action to prevent the
Common Stock from being delisted by the New York Stock Exchange in the event
that the Common Stock ceases to meet the applicable New York Stock
Exchange listing standards.

          Section 4.9. Suspension, Termination of Certain Provisions. The
provisions of Sections 4.2 and 4.3 shall be temporarily suspended in the event
that TD and its Affiliates Beneficially Own Voting Securities representing in
the aggregate less than 50% of the Total Voting Power as a result of (i)
Transfers of Voting Securities by TD and its Affiliates (“Transfer
Events”) and such minority ownership position continues for at least 30
consecutive days or (ii) dilution or other actions or events other than
Transfer Events, provided that no such suspension shall occur as a result of
this clause (ii) if TD and its Affiliates (x) do not at any time Beneficially
Own Voting Securities representing in the aggregate less than 35% of the Total
Voting Power and do not after ceasing to Beneficially Own Voting Securities
representing at least 50% of the Total Voting Power Transfer any Voting
Securities other than to an Affiliate unless within 30 days thereafter TD and
its Affiliates repurchase an amount of Voting Securities at least equal to the
amount so Transferred, (y) reacquire, at any time prior to the first
anniversary of a Measurement Date, Beneficial Ownership of Voting Securities
representing at least 50% of the Shortfall Amount as of such Measurement Date,
and (z) prior to the second anniversary of the most recent Measurement Date,
regain Beneficial Ownership of Voting Securities representing at least a
majority of the Total Voting Power.

          A “Measurement Date” shall mean (i) the date on which the Voting
Securities Beneficially Owned by TD and its Affiliates first represent less
than 50% of the Total Voting Power as a result of dilution or other actions or
events other than Transfer Events, and (ii) any subsequent date on which
another event occurs (other than any Transfer of Voting Securities by TD or an
Affiliate of TD) that further decreases such Beneficial Ownership by at least
2% of Total Voting Power since the immediately preceding Measurement Date.

          “Shortfall Amount” shall mean, as of any Measurement Date, the
difference between (i) 50% and (ii) the Total Voting Power (expressed as a
percentage) represented by the Voting Securities Beneficially Owned by TD and
its Affiliates as of such Measurement Date.

          (b) During any suspension of Sections 4.2 and 4.3 pursuant to Section
4.9(a) (a “Suspension”) or following a Permanent Suspension pursuant to
Section 4.9(d):

     (i) the holder of the Class B Common Stock shall have the right to
nominate and elect that number of Class B Directors, rounded to the
nearest whole number, as would represent the same percentage of the total
number of authorized directors then constituting the entire Board of
Directors (after giving effect to the election of such Class B Directors)
as the percentage of the Total Voting Power represented by the Voting
Securities Beneficially Owned by TD and its Affiliates as of the record
date for such election; provided that in no event shall the number
of Class B Directors nominated and

22

 

elected by TD pursuant to this
provision constitute (x) 50% or more of the total number of Directors
then in office, or (y) less than one Director, and

     (ii) to the extent permitted by applicable laws, rules and
regulations (including any requirements under the Exchange Act or the
rules of the New York Stock Exchange or any other applicable securities
exchange on which the Common Stock is then listed), Class B Directors
designated by TD for such committee appointment shall be nominated to
serve on each committee of the Board so that after such appointment(s),
the ratio of such designated Class B Directors who are members of such
committee to the total number of members of such committee is not less
(subject to rounding to the nearest whole number) than the ratio of the
number of Class B Directors entitled to be designated by TD pursuant to
clause (i) above to the total number of authorized Directors then
constituting the entire Board, provided that in no event shall the number
of Directors that TD is so entitled to designate for such committee
appointment be (x) 50% or more of the Directors serving on such committee
or (y) less than one.

          In connection with any Suspension or Permanent Suspension, TD shall
procure the immediate resignations of such Directors from the Board of
Directors and the relevant committees thereof as is necessary to achieve the
representation contemplated by this Section 4.9(b). TD agrees that it will
not, in its capacity as a stockholder of the Company, take any actions which
are inconsistent with the provisions of this Section 4.9(b). During any
Suspension or Permanent Suspension, TD shall not nominate any Directors for
election other than the number of Class B Directors it is entitled to designate
pursuant to clause (i) of this Section 4.9(b).

          (c) Subject to paragraph (d) below, if at any time during a Suspension, TD
and its Affiliates Beneficially Own Voting Securities representing in the
aggregate 50% or more of the Total Voting Power, such Suspension shall
automatically terminate and the provisions of Sections 4.2 and 4.3 shall
automatically be reinstated. A subsequent decrease in TD’s and its Affiliates’
Beneficial Ownership of Voting Securities below 50% of the Total Voting Power
shall again trigger the provisions of this Section 4.9 in accordance with its
terms, in which event new measurement periods pursuant to clauses (i) and
(ii)(y) and (z) of paragraph (a) and pursuant to paragraph (d) shall commence;
provided that if within six months following any such termination of a
Suspension that had resulted from Transfer Events, another Suspension resulting
from Transfer Events occurs, such new measurement periods with respect to such
subsequent Suspension shall not commence and such subsequent Suspension shall
be deemed, for purposes of Section 4.9(d), to be a continuation of the prior
Suspension.

          (d) If a Suspension shall have occurred and be continuing for 12
consecutive months (a “Permanent Suspension”), the provisions of
Sections 4.2 and 4.3 (and the corresponding sections of the Surviving
Corporation Charter) shall thereafter terminate.

          Section 4.10. Acquisition of Competing Entities. Neither TD nor
its Affiliates shall acquire control of (as such term is defined in 12 U.S.C. §
1841(a)(2) or any successor provision) a Retail Bank except pursuant to an
Incidental Acquisition. If TD or any of its Affiliates does so acquire control
of a Retail Bank in connection with an Incidental Acquisition, TD or its
applicable Affiliate shall, within six months of the date of such acquisition
and at its

23

 

sole election, (i) initiate good faith discussions regarding the
contribution of the acquired Retail Bank to the Company on terms mutually
agreed to by TD or such Affiliate and a majority of the Designated Independent Directors,
who shall have the authority to retain an Independent Investment Banking Firm
and outside legal counsel in connection therewith, (ii) initiate good faith
discussions regarding a Going Private Transaction in accordance with the
then-applicable provisions of Section 2.2 and, if TD or such Affiliate and a
majority of the Designated Independent Directors approve the terms of such a
Going Private Transaction or, to the extent such approval is not required under
the then-applicable provisions of Section 2.2, TD or such Affiliate otherwise
complies with its obligations under Section 2.2 and thereafter elects to
commence a Going Private Transaction, use reasonable best efforts to consummate
such Going Private Transaction as promptly as practicable thereafter or (iii)
commence a process to dispose of the acquired Retail Bank as promptly as
commercially practicable, but in any event TD or its Affiliate shall enter into
a definitive agreement with respect to such disposition within two years after
the date of consummation of the acquisition of such Retail Bank. In the event
that TD or its applicable Affiliate elects to comply with clause (i) or clause
(ii) of this Section 4.10 but (x) is unable to agree on terms with respect to a
contribution or a Going Private Transaction, as the case may be, with a
majority of the Designated Independent Directors (if, in the case of compliance
with clause (ii) of this Section 4.10, the approval of such a majority is
required pursuant to the then applicable provisions of Section 2.2), or (y)
such contribution or Going Private Transaction is not consummated within 9
months of the commencement thereof (whether because the Unaffiliated
Stockholder Approval was not received, necessary regulatory approvals were not
received or for any other reason not within the control of TD and its
Affiliates), TD or such Affiliate shall thereafter comply with clause (iii) of
this Section 4.10, provided that if a contemplated contribution or Going
Private Transaction is not consummated within 9 months of the commencement
thereof as contemplated by clause (y), the applicable time period within which
TD must enter into a definitive agreement with respect to such disposition
shall be the later of (1) two years after the consummation of the acquisition
of such Retail Bank and (2) six months after the termination of such attempted
contribution or Going Private Transaction.

ARTICLE V

MISCELLANEOUS

          Section 5.1. Conflicting Agreements. Each party represents and
warrants that it has not granted and is not a party to any proxy, voting trust
or other agreement that is inconsistent with or conflicts with any provision of
this Agreement.

          Section 5.2. Termination. Except as otherwise provided in this
Agreement, this Agreement and the rights and obligations of the parties
hereunder shall terminate upon the first date on which TD and its Affiliates
Beneficially Own either (i) Voting Securities representing less than 15% of the
Total Voting Power, or (ii) 90% or more of each class of Capital Stock of which
ownership would be required in order to effect a merger pursuant to Section 253
of the DGCL or any successor provision (acquired in compliance with the terms
of this Agreement). Nothing in this Section 5.2 shall be deemed to release any
party from any liability for any willful and material breach of this
Agreement occurring prior to the termination hereof or to impair the right
of any party to compel specific performance by any other party of its
obligations under this Agreement.

24

 

          Section 5.3. Ownership Information. For purposes of this
Agreement, all determinations of the amount of outstanding Voting Securities
shall be based on information set forth in the most recent quarterly or annual
report, and any current report subsequent thereto, filed by the Company with
the Commission, unless the Company shall have updated such information by
delivery of written notice to TD.

          (b) If at any time or from time to time the Company becomes aware of any
event that has caused, or which could reasonably be expected to cause, TD’s
Beneficial Ownership of Voting Securities to decrease below a majority of the
Total Voting Power, such as receipt of an option holder’s notice to exercise
such option(s), the Company shall promptly (but in no event more than five
Business Days thereafter) notify TD thereof.

          Section 5.4. Amendment and Waiver. This Agreement may not be
amended except by an instrument in writing signed on behalf of each of the
parties hereto. Except as otherwise provided herein, no modification,
amendment or waiver of any provision of this Agreement, and no giving of any
consent provided for hereunder, shall be effective unless such modification,
amendment, waiver or consent is approved by a majority of the Designated
Independent Directors (and in any event at least one Designated Independent
Director). The failure of any party to enforce any of the provisions of this
Agreement shall in no way be construed as a waiver of such provisions and shall
not affect the right of such party thereafter to enforce each and every
provision of this Agreement in accordance with its terms.

          Section 5.5. Severability. If any provision of this Agreement
shall be declared by any court of competent jurisdiction to be illegal, void or
unenforceable, all other provisions of this Agreement shall not be affected and
shall remain in full force and effect.

          Section 5.6. Entire Agreement. Except as otherwise expressly set
forth herein, this Agreement and the Merger Agreement, together with the
several agreements and other documents and instruments referred to herein or
therein or annexed hereto or thereto, embody the complete agreement and
understanding among the parties hereto with respect to the subject matter
hereof and supersede and preempt any prior understandings, agreements or
representations by or among the parties, written or oral, that may have related
to the subject matter hereof in any way. Without limiting the generality of
the foregoing, to the extent that any of the terms hereof are inconsistent with
the rights or obligations of TD under any other agreement with the Company, the
terms of this Agreement shall govern.

          Section 5.7. Successors and Assigns. Neither this Agreement nor any of the rights or obligations of any
party under this Agreement shall be assigned, in whole or in part (except by
operation of law pursuant to a merger), by any party without the prior written
consent of the other party (approved, in the case of the Company, by a majority
of the Designated Independent Directors), provided that TD may assign its
rights and obligations hereunder (in whole or in part) to an Affiliate of TD
that agrees in writing with the Company to be bound by this Agreement as fully
as if it were an initial signatory hereto, and any such transferee may
thereafter make corresponding assignments in accordance with this proviso.
Subject to the foregoing, this Agreement shall bind and inure to the benefit of
and be enforceable by the parties hereto and their respective successors and
permitted assigns.

25

 

          Section 5.8. Counterparts. This Agreement may be executed in
separate counterparts each of which shall be an original and all of which taken
together shall constitute one and the same agreement.

          Section 5.9. Remedies. Each party hereto acknowledges that
monetary damages would not be an adequate remedy in the event that each and
every one of the covenants or agreements in this Agreement are not performed in
accordance with their terms, and it is therefore agreed that, in addition to
and without limiting any other remedy or right it may have, the non-breaching
party will have the right to an injunction, temporary restraining order or
other equitable relief in any court of competent jurisdiction enjoining any
such breach and enforcing specifically each and every one of the terms and
provisions hereof. Each party hereto agrees not to oppose the granting of such
relief in the event a court determines that such a breach has occurred, and to
waive any requirement for the securing or posting of any bond in connection
with such remedy.

          (b) All rights, powers and remedies provided under this Agreement or
otherwise available in respect hereof at law or in equity shall be cumulative
and not alternative, and the exercise or beginning of the exercise of any
thereof by any party shall not preclude the simultaneous or later exercise of
any other such right, power or remedy by such party.

          Section 5.10. Notices. All notices and other communications
hereunder shall be in writing and shall be deemed given if delivered
personally, telecopied (upon telephonic confirmation of receipt), on the first
Business Day following the date of dispatch if delivered by a recognized next
day courier service, or on the third Business Day following the date of mailing
if delivered by registered or certified mail, return receipt requested, postage
prepaid. All notices hereunder shall be delivered as set forth below, or
pursuant to such other instructions as may be designated in writing by the
party to receive such notice.

	 	 	 	 	 
	 	 	If to the Company:
	 
	 	 	 	 
	 	 	Banknorth Group, Inc.
	 	 	P.O. Box 9540
	 	 	Two Portland Square
	 	 	Portland, Maine 04112-9540
	 	 	Attention: William J. Ryan
	

	 	 	 	Chairman, President and
	

	 	 	 	Chief Executive Officer
	 	 	Fax: (207) 761-8587
	 
	 	 	 	 
	 	 	with a copy (which shall not constitute notice) to:
	 
	 	 	 	 
	 	 	Elias, Matz, Tiernan & Herrick L.L.P.
	 	 	12th Floor, The Walker Building
	 	 	734 15th Street, N.W.
	 	 	Washington, D.C. 20005
	 	 	Attention: Gerard L. Hawkins, Esq.
	 	 	Fax: (202) 347-2172

26

 

	 	 	 	 	 
	 	 	and
	 
	 	 	 	 
	 	 	Wachtell, Lipton, Rosen & Katz
	 	 	51 West 52nd Street
	 	 	New York, New York 10019
	 	 	Attn: Edward D. Herlihy, Esq.
	

	 	 	 	Lawrence S. Makow, Esq.
	 	 	Fax: (212) 403-2000
	 
	 	 	 	 
	 	 	If to TD:
	 
	 	 	 	 
	 	 	The Toronto-Dominion Bank
	 	 	Toronto-Dominion Tower
	 	 	66 Wellington Street West
	 	 	Toronto, Ontario M5K IA2
	 	 	Attention: General Counsel
	 	 	Fax: (416) 308-1943
	 
	 	 	 	 
	 	 	with a copy (which shall not constitute notice) to:
	 
	 	 	 	 
	 	 	Simpson Thacher & Bartlett LLP
	 	 	425 Lexington Avenue
	 	 	New York, New York 10017
	 	 	Attention: Lee Meyerson
	 	 	Fax: (212) 455-2502

          Section 5.11.Governing Law; Consent to Jurisdiction . This
Agreement shall be governed by and construed in accordance with
the laws of the State of Delaware without giving effect to the principles of
conflicts of law. Each of the parties hereto hereby irrevocably and
unconditionally consents to submit to the exclusive jurisdiction in the Court
of Chancery of the State of Delaware or any court of the United States located
in the State of Delaware, for any action, proceeding or investigation in any
court or before any governmental authority (“Litigation”) arising out of
or relating to this Agreement and the transactions contemplated hereby. Each
of the parties hereto hereby irrevocably and unconditionally waives, and agrees
not to assert, by way of motion, as a defense, counterclaim or otherwise, in
any such Litigation, the defense of sovereign immunity, any claim that it is
not personally subject to the jurisdiction of the aforesaid courts for any
reason other than the failure to serve process in accordance with this Section
5.11, that it or its property is exempt or immune from jurisdiction of any such
court or from any legal process commenced in such courts (whether through
service of notice, attachment prior to judgment, attachment in aid of execution
of judgment, execution of judgment or otherwise), and to the fullest extent
permitted by applicable law, that the Litigation in any such court is brought
in an inconvenient forum, that the venue of such Litigation is improper, or
that this Agreement, or the subject matter hereof, may not be enforced in or by
such courts and further irrevocably waives, to the fullest extent permitted by
applicable law, the benefit of any defense that would hinder, fetter or delay
the levy, execution or collection of any amount to which the party is entitled
pursuant to the final judgment of any court having jurisdiction. Each of the
parties irrevocably and unconditionally waives, to the fullest extent permitted
by

27

 

applicable law, any and all rights to trial by jury in connection with any
Litigation arising out of or relating to this Agreement or the transactions
contemplated hereby.

          (b) TD hereby irrevocably designates its New York Branch located at 31
West 52nd Street, New York, NY 10019 (in such capacity, the “TD Process
Agent”) its designee, appointee and agent to receive, for and on its
behalf, service of process in such jurisdiction in any Litigation arising out
of or relating to this Agreement and such service shall be deemed complete upon
delivery thereof to the Process Agent; provided that in the case of any
such service upon the TD Process Agent, the party effecting such service shall
also deliver a copy thereof to TD in the manner provided in Section 5.10. Each
of the parties further irrevocably consents to the service of process out of
any of the aforementioned courts in any such Litigation by the mailing of
copies thereof by registered mail, postage prepaid, to such party at its
address set forth in this Agreement, such service of process to be effective
upon acknowledgment of receipt of such registered mail.

          (c) Each of the parties expressly acknowledges that the foregoing waiver
is intended to be irrevocable under the laws of the State of Delaware and of
the United States of America; provided that consent by TD and Banknorth
to jurisdiction and service contained in this Section 5.11 is solely for the
purpose referred to in this Section 5.11 and shall not be deemed to be a
general submission to said courts or in the State of Delaware other than for
such purpose. If the TD Process Agent shall cease to act as such or to exist,
TD covenants that it shall appoint without delay another such agent reasonably
satisfactory to Banknorth.

          Section 5.12. Interpretation . The table of contents
and headings contained in this Agreement are for
reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement. Whenever the words “include”, “includes” or
“including” are used in this Agreement, they shall be deemed to be followed by
the words “without limitation”.

          Section 5.13. Effectiveness. This Agreement shall become effective
upon the Closing and prior thereto shall be of no force or effect. If the
Merger Agreement shall be terminated in accordance with its terms prior to the
Closing, this Agreement shall automatically be of no force or effect.

28

 

          IN WITNESS WHEREOF, the parties hereto have executed this Stockholders
Agreement as of the date first written above.

	 	 	 	 	 
	 	BANKNORTH GROUP, INC.

 	 
	 	By:  	/s/ William J. Ryan
 	 
	 	 	Name:  	William J. Ryan 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	BERLIN DELAWARE INC.

 	 
	 	By:  	/s/ William J. Ryan
 	 
	 	 	Name:  	William J. Ryan 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	THE TORONTO-DOMINION BANK

 	 
	 	By:  	/s/ W. Edmund Clark
 	 
	 	 	Name:  	W. Edmund Clark 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 

29

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