Document:

Exhibit
10.20

 

December 5, 2005

 

Ms. Sandra R.A. Karrmann

2620 King Arthur Blvd.

Lewisville, TX  75056

 

Change of
Control Agreement

 

Dear Sandi:

 

The Board of Directors believes that it is in the best
interests of Meritage Homes Corporation (“Meritage”) to take appropriate steps
to allay any concerns you may have about your future employment opportunities
with Meritage and its subsidiaries (Meritage and its subsidiaries are
collectively referred to as the “Company”). As a result, the Board has decided
to offer to you the benefits described below.

 

Please bear in mind that these benefits are being
offered only to a few, selected employees and we accordingly ask that you
refrain from discussing this program with others. Also, please note that the
benefits described below will only be effective if you sign the extra copy of
this Change of Control Agreement (the “Agreement”) which is enclosed and return
it to me. This Agreement was drafted to comply with the requirements of Section
409A of the Internal Revenue Code of 1986, as amended (“Code) and the proposed
regulations issued thereunder. If the final regulations issued under Code
Section 409A provide for more liberalized rules than those under this
Agreement, and if the Company decides to amend the change of control agreements
for other Company executives to reflect any such change, this Agreement will be
amended in a manner consistent with the amendments made to those other change
of control agreements.

 

1.                                      TERM
OF AGREEMENT.

 

This Agreement is effective immediately and will
continue in effect as long as you are actively employed by the Company, unless
you and the Company agree in writing to its termination.

 

2.                                      SEVERANCE
PAYMENT AND STOCK OPTION ACCELERATION.

 

If your employment with the Company is terminated without
“Cause” (as defined in Section 6) at any time within two years following a
“Change of Control” (as defined in Section 4), you will receive the “Severance
Payment” described below. You will also receive the Severance Payment if you
terminate your employment for “Good Reason” (as defined in Section 5) at any
time within two years following a Change of Control.

 

 

The Severance Payment equals $300,000.00. In addition,
you will not be required to repay any portion of the hiring bonus upon such
termination of employment.

 

The Severance Payment will be paid in one lump sum on
the first day following the six-month anniversary of your termination of
employment.

 

You are not entitled to receive the Severance Payment
if your employment is terminated for Cause, if you terminate your employment
without Good Reason, or if your employment is terminated by reason of your
“Disability” (as defined in Section 8(d)) or your death. In addition, you are
not entitled to receive the Severance Payment if your employment is terminated
by you or the Company for any or no reason before a Change of Control occurs or
more than two years after a Change of Control has occurred.

 

In order to receive the Severance Payment, you must
execute any release reasonably requested by the Company.

 

The Severance Payment will be paid to you without
regard to whether you look for or obtain alternative employment following your
termination of employment with the Company.

 

Notwithstanding anything in this Agreement or in any
option agreement to the contrary, upon a Change of Control, any stock option
granted to you shall accelerate and become vested without further action. You
will have a period of one year from the date of termination of your employment
to exercise such options.

 

3.                                      BENEFITS
CONTINUATION.

 

If you are entitled to severance under Section 2, you
will continue to receive life, disability, accident and group health insurance
benefits substantially similar to those which you were receiving immediately
prior to your termination of employment for a period of 18 months following
your termination of employment. Such benefits shall be provided on
substantially the same terms and conditions as they were provided prior to the
Change of Control.

 

The Company does not intend to provide duplicative benefits.
As a result, benefits otherwise receivable pursuant to this Section 3 shall be
reduced or eliminated if and to the extent that you receive such benefits
pursuant to any employment agreement you may have with the Company.

 

Benefits otherwise receivable pursuant to this Section
3 also shall be reduced or eliminated if and to the extent that you receive
comparable benefits from any other source (for example, another employer);
provided, however, you shall have no obligation to seek, solicit or accept employment
from another employer in order to receive the benefits provided by this
Agreement.

 

2

 

4.                                      CHANGE
OF CONTROL DEFINED.

 

For purposes of this Agreement, the term Change of
Control shall mean and include the following transactions or situations:

 

(a)                                  A
sale, transfer, or other disposition by Meritage through a single transaction
or a series of transactions of securities of Meritage representing 50% or more
of the combined voting power of Meritage’s then outstanding securities to any
“Unrelated Person” or “Unrelated Persons” acting in concert with one another. For
purposes of this Section 4, the term “Person” shall mean and include any
individual, partnership, joint venture, association, trust, corporation, or
other entity (including a “group” as referred to in Section 13(d)(3) of the
Securities Exchange Act of 1934 (the “Act”)). For purposes of this Section 4,
the term “Unrelated Person” shall mean and include any Person other than the
Company, or an employee benefit plan of the Company.

 

(b)                                 A
sale, transfer, or other disposition through a single transaction or a series
of related transactions of all or substantially all of the assets of Meritage
to an Unrelated Person or Unrelated Persons acting in concert with one another.

 

(c)                                  Any
consolidation or merger of Meritage with or into an Unrelated Person, unless
immediately after the consolidation or merger the holders of the common stock
of Meritage immediately prior to the consolidation or merger are the beneficial
owners of securities of the surviving corporation representing at least 50% of
the combined voting power of the surviving corporation’s then outstanding
securities.

 

5.                                      GOOD
REASON DEFINED.

 

For purposes of this Agreement, the term “Good Reason”
shall mean if following a Change of Control you are either (i) not offered the
senior most Human Resources position in the surviving corporation or (ii)
required to relocate to any employment location that is more than thirty (30)
miles from the Company’s Dallas, Texas headquarters.

 

6.                                      CAUSE
DEFINED.

 

For purposes of this Agreement, the term “Cause” will
exist in the following circumstances: (i) you are convicted of a felony, (ii)
you engage in any fraudulent or other dishonest act to the detriment of the
Company, (iii) you fail to report for work on a regular basis, except for
periods of authorized absence or bona fide illness, (iv) you misappropriate
trade secrets, customer lists, or other proprietary information belonging to
the Company for your own benefit or for the benefit of a competitor, (v) you
engage in any willful misconduct designed to harm the Company or its
stockholders, or (vi) you fail to perform properly your assigned duties.

 

3

 

7.                                      CEILING
ON BENEFITS.

 

The Code places significant tax burdens on you and the
Company if the total payments made to you due to a Change of Control exceed
prescribed limits. For example, if your limit is $749,999 (because your “Base
Period Income” (as defined below) is $250,000) and the “Total Payments” (as
defined below) exceed the limit by even $1.00, you are subject to an excise tax
under Section 4999 of the Code of 20% of all amounts paid to you in excess of
$250,000. If your limit is $749,999, you will not be subject to an excise tax
if you receive exactly $749,999. If you receive $750,000, you will be subject
to an excise tax of $100,000 (20% of $500,000).

 

In order to avoid this excise tax and the related
adverse tax consequences for the Company, by signing this Agreement, you agree
that the present value of your Total Payments will not exceed an amount equal
to 2.99 times your Base Period Income. This is the maximum amount which you may
receive without becoming subject to the excise tax imposed by Section 4999 of
the Code or which the Company may pay without loss of deduction under Section
280G of the Code. It is acknowledged that the 2.99 limit will not likely be an
issue given the fixed amount of the Severance Payment and your compensation
level, but rather that this provision is simply included out of an abundance of
caution.

 

“Base Period Income” is an amount equal to your
“annualized includible compensation” for the “base period” as defined in
Sections 280G(d)(1) and (2) of the Code and the regulations adopted thereunder.
Generally, your “annualized includible compensation” is the average of your
annual taxable income from the Company for the “base period,” which is the five
calendar years prior to the year in which the Change of Control occurs (or the
number of years worked if less than five). For example, if a Change of Control
occurs in 2009, your base period compensation would be the average of the
compensation includible in your income for years 2006, 2007, 2008 and because
you were first employed in 2005, your annualized compensation for that partial
year. Any compensation includible in your income for 2009 is disregarded for
these purposes. These concepts are complicated and technical and all of the
rules set forth in the applicable regulations apply for purposes of this
Agreement.

 

Your “Total Payments” include the sum of the Severance
Payment and any other “payments in the nature of compensation” (as defined in
Section 280G of the Code and the regulations adopted thereunder).

 

If Meritage believes that these rules will result in a
reduction of the payments to which you are entitled under this Agreement, it
will so notify you within 60 days following delivery of the “Notice of
Termination” described in Section 8. You and Meritage will then, at Meritage’s
expense, retain legal counsel, certified public accountants, and/or a firm of
recognized executive compensation consultants to provide an opinion or opinions
concerning whether your Total Payments exceed the limit discussed above.

 

Meritage will select the legal counsel, certified
public accountants and executive compensation consultants. If you do not accept
one or more of the parties selected by Meritage you may provide Meritage with
the names of legal counsel, certified public accountants and/or

 

4

 

executive compensation consultants acceptable to you. If Meritage does
not accept the party or parties selected by you, the legal counsel, certified
public accountants and/or executive compensation consultants selected by you
and Meritage, respectively, will select the legal counsel, certified public
accountants and/or executive compensation consultants to provide the opinions
required.

 

At a minimum, the opinions required by this Section 7
must set forth (a) the amount of your Base Period Income, (b) the present value
of the Total Payments and (c) the amount and present value of any excess
parachute payments.

 

If the opinions state that there would be an excess
parachute payment, your payments under this Agreement will be reduced to the
extent necessary to eliminate the excess.

 

You will be allowed to choose which payment should be
reduced or eliminated, but the payment you choose to reduce or eliminate must
be a payment determined by such legal counsel, certified public accountants,
and/or executive compensation consultants to be includible in Total Payments. You
will make your decision in writing and deliver it to Meritage within 30 days of
your receipt of such opinions. If you fail to so notify Meritage, it will decide
which payments to reduce or eliminate.

 

If the legal counsel, certified public accountants,
and/or executive compensation consultants selected to provide the opinions
referred to above so requests in connection with the opinion required by this
Section 7, a firm of recognized executive compensation consultants, selected by
you and Meritage pursuant to the procedures set forth above, shall provide an
opinion, upon which such legal counsel, certified public accountants, and/or
executive compensation consultants may rely, as to the reasonableness of any
item of compensation as reasonable compensation for services rendered before or
after the Change of Control.

 

If Meritage believes that your Total Payments will
exceed the limitations of this Section 7, it will nonetheless make payments to
you, at the times stated above, in the maximum amount that it believes may be
paid without exceeding such limitations. The balance, if any, will then be paid
after the opinions called for above have been received.

 

If the amount paid to you by Meritage is ultimately
determined, pursuant to the opinion referred to above or by the Internal
Revenue Service, to have exceeded the limitation of this Section 7, the excess
will be treated as a loan to you by Meritage and shall be repayable on the 90th
day following demand by Meritage, together with interest at the “applicable
federal rate” provided in Section 1274(d) of the Code.

 

In the event that the provisions of Sections 280G and
4999 of the Code are repealed without succession, this Section 7 shall be of no
further force or effect.

 

5

 

8.                                      TERMINATION
NOTICE AND PROCEDURE.

 

Any termination by the Company or you of your
employment within two (2) years following a Change of Control shall be
communicated by written Notice of Termination to you if such Notice of
Termination is delivered by the Company and to the Company if such Notice of
Termination is delivered by you, all in accordance with the following
procedures:

 

(a)                                  The
Notice of Termination shall set forth in reasonable detail the facts and
circumstances alleged to provide a basis for termination.

 

(b)                                 Any
Notice of Termination by the Company shall be in writing signed by a senior
executive officer of the Company or member of the Executive Compensation
Committee of the Board of Directors of Meritage specifying the basis for such
termination.

 

(c)                                  If
during the two (2) year period following a Change of Control the Company
furnishes a Notice of Termination for Cause and you in good faith notify the
Company that a dispute exists concerning such termination within the 15-day
period following your receipt of such notice, you may elect to continue your
employment during such dispute. If it is thereafter determined that (i) Cause
did exist, your “Termination Date” shall be the earlier of (A) the date on
which the dispute is finally determined, either by mutual written agreement of
the parties or pursuant to the alternative dispute resolution provisions of
Section 15 or (B) the date of your death; or (ii) Cause did not exist, your
employment shall continue as if the Company had not delivered its Notice of
Termination and there shall be no Termination Date arising out of such notice.

 

(d)                                 If
during the two (2) year period following a Change of Control the Company
furnishes a Notice of Termination by reason of Disability and you in good faith
notify the Company that a dispute exists concerning such termination within the
15-day period following your receipt of such notice, you may elect to continue
your employment during such dispute. Any dispute relating to the existence of a
Disability shall be resolved by the opinion of the licensed physician selected
by Meritage, provided, however, that if you do not accept the opinion of the
licensed physician selected by Meritage, the dispute shall be resolved by the
opinion of a licensed physician who shall be selected by you; provided further,
however, that if Meritage does not accept the opinion of the licensed physician
selected by you, the dispute shall be finally resolved by the opinion of a
licensed physician selected by the licensed physicians selected by Meritage and
you, respectively. If it is thereafter determined that (i) a Disability did
exist, your Termination Date shall be the earlier of (A) the date on which the
dispute is resolved or (B) the date of your death; or (ii) a Disability did not
exist, your employment shall continue as if the Company had not delivered its
Notice of Termination and there shall be no Termination Date arising out of such
notice. For purposes of this Agreement, “Disability” shall mean a disability
that results in you being medically unable to fulfill your duties of employment
for six (6) consecutive months.

 

(e)                                  If
during the two (2) year period following a Change of Control and as a result of
such Change of Control you in good faith furnish a Notice of Termination for
Good

 

6

 

Reason and the Company notifies you that a dispute
exists concerning the termination within the 15-day period following the
Company’s receipt of such notice, you may elect to continue your employment
during such dispute. If it is thereafter determined that (i) Good Reason did
exist, your Termination Date shall be the earlier of (A) the date on which the
dispute is finally determined, either by mutual written agreement of the
parties or pursuant to the alternative dispute resolution provisions of Section
15, (B) the date of your death or (C) one day prior to the second anniversary
of a Change of Control; or (ii) Good Reason did not exist, your employment
shall continue after such determination as if you had not delivered the Notice
of Termination asserting Good Reason.

 

(f)                                    If
during the two (2) year period following a Change of Control you do not elect to
continue employment pending resolution of a dispute regarding a Notice of
Termination, and it is finally determined that the reason for termination set
forth in such Notice of Termination did not exist, if such notice was delivered
by you, you shall be deemed to have voluntarily terminated your employment
other than for Good Reason and if delivered by the Company, the Company will be
deemed to have terminated you other than by reason of Disability or Cause.

 

(g)                                 For
purposes of this Agreement, a transfer of your employment from Meritage to one
of its subsidiaries or a transfer of your employment from a subsidiary to
Meritage or another subsidiary shall not be treated as a termination of
employment.

 

9.                                      SUCCESSORS.

 

Meritage will require any successor (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of Meritage to assume, whether
expressly or by operation of law, this Agreement in the same manner and to the
same extent that the Company would be required to perform it if no such
succession had taken place. Failure of Meritage to obtain such assumption shall
be a breach of this Agreement and shall entitle you to compensation in the same
amount and on the same terms to which you would be entitled hereunder if you
terminate your employment for Good Reason following a Change of Control, except
that for purposes of implementing the foregoing, the date on which any such
succession becomes effective shall be deemed the Termination Date. As used in
this agreement “Company” shall mean Company, as hereinbefore defined and any
successor to its business and/or assets as aforesaid which assumes and agrees
to perform this Agreement by operation of law or otherwise.

 

10.                               BINDING
AGREEMENT.

 

This Agreement shall inure to the benefit of and be
enforceable by you and your personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees and legatees. If you
should die while any amount would still be payable to you hereunder had you
continued to live, all such amounts, unless otherwise provided herein, shall be
paid in accordance with the terms of this Agreement to your devisee, legatee or
other designee or, if there is no such designee, to your estate.

 

7

 

11.                               NOTICE.

 

For purposes of this Agreement, notices and all other
communications provided for in this Agreement shall be in writing and shall be
deemed to have been duly given when delivered or mailed by United States
certified or registered mail, return receipt requested, postage prepaid,
addressed to the respective addresses set forth on the first page of this
Agreement, provided that all notices to Meritage shall be directed to the
attention of the Chief Executive Officer of Meritage with a copy to the General
Counsel of Meritage, or to such other address as either party may have
furnished to the other in writing in accordance herewith, except that notice of
change of address shall be effective only upon receipt.

 

12.                               MISCELLANEOUS.

 

No provision of this Agreement may be modified, waived
or discharged unless such waiver, modification or discharge is agreed to in
writing and signed by you and a senior executive officer of the Company or a
member of the Executive Compensation Committee of the Board of Directors of
Meritage. No waiver by either party hereto at any time of any breach by the
other party hereto of, or compliance with, any condition or provision of this
Agreement to be performed by such other party shall be deemed a waiver of
similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time. No agreement or representations, oral or otherwise, express or
implied, with respect to the subject matter hereof have been made by either
party which are not expressly set forth in this Agreement. The validity,
interpretation, construction and performance of this Agreement shall be
governed by the laws of the State of Texas without regard to its conflicts of
law principles. All references to sections of the Act or the Code shall be
deemed also to refer to any successor provisions to such sections. Any payments
provided for hereunder shall be paid net of any applicable withholding required
under federal, state or local law.

 

13.                               VALIDITY.

 

The invalidity or unenforceability of any provision of
this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement, which shall remain in full force and effect.

 

14.                               COUNTERPARTS.

 

This Agreement may be executed in several
counterparts, each of which shall he deemed to be an original but all of which
together will constitute one and the same instrument.

 

15.                               ALTERNATIVE
DISPUTE RESOLUTION.

 

All claims, disputes and other matters in question
between the parties arising under this Agreement shall, unless otherwise
provided herein (such as in Sections 7 and 8(d)), be resolved by the
arbitration provisions set forth below.

 

8

 

Any dispute, controversy, or claim, whether contractual
or non-contractual, between Meritage and you arising directly or indirectly out
of or connected with this Agreement, relating to the breach or alleged breach
of any representation, warranty, agreement, or covenant under this Agreement,
unless mutually settled by the parties hereto, shall be resolved by binding
arbitration in accordance with the Employment Arbitration Rules of the American
Arbitration Association (the “AAA”). Any arbitration shall be conducted by
arbitrators approved by the AAA and mutually acceptable to Meritage and you. All
such disputes, controversies, or claims shall be conducted by a single
arbitrator, unless the dispute involves more than $100,000 in the aggregate in
which case the arbitration shall be conducted by a panel of three arbitrators. If
the parties hereto are unable to agree on the arbitrator(s), then the AAA shall
select the arbitrator(s). The resolution of the dispute by the arbitrator(s)
shall be final, binding, nonappealable, and fully enforceable by a court of
competent jurisdiction under the Federal Arbitration Act. The arbitrator(s)
shall award damages to the prevailing party. The arbitration award shall be in
writing and shall include a statement of the reasons for the award. The
arbitration shall be held in the Dallas/Fort Worth metropolitan area. The
arbitrator(s) shall award reasonable attorneys’ fees and costs to the
prevailing party.

 

16.                               EXPENSES
AND INTEREST.

 

If a good faith dispute shall arise with respect to
the enforcement of your rights under this Agreement or if any arbitration or
legal proceeding shall be brought in good faith to enforce or interpret any
provision contained herein, or to recover damages for breach hereof, and you
are the prevailing party, you shall recover from the Company any reasonable
attorneys’ fees and necessary costs and disbursements incurred as a result of
such dispute or legal proceeding, and prejudgment interest on any money
judgment obtained by you calculated at the rate of interest announced by
Guaranty Bank from time to time as its prime rate from the date that payments
to you should have been made under this Agreement.

 

17.                               PAYMENT
OBLIGATIONS ABSOLUTE.

 

Meritage’s obligation to pay you the compensation and
to make the arrangements in accordance with the provisions herein shall be
absolute and unconditional and shall not be affected by any circumstances;
provided, however, that the Company may apply amounts payable under this
Agreement to any debts owed to the Company by you on your Termination Date. All
amounts payable by Meritage in accordance with this Agreement shall be paid
without notice or demand. If Meritage has paid you more than the amount to
which you are entitled under this Agreement, the Company shall have the right
to recover all or any part of such overpayment from you or from whomsoever has
received such amount.

 

18.                               ENTIRE
AGREEMENT.

 

This Agreement sets forth the entire agreement between
you and Meritage concerning the subject matter discussed in this Agreement and
supersedes all prior agreements, promises, covenants, arrangements,
communications, representations, or warranties, whether written or oral, by any
officer, employee or representative of the Company. Any prior agreements or

 

9

 

understandings with respect to the subject matter set forth in this
Agreement are hereby terminated and canceled.

 

19.                               PARTIES.

 

This Agreement is an agreement between you and
Meritage. In certain cases, though, obligations imposed upon Meritage may be
satisfied by a subsidiary of Meritage. Any payment made or action taken by a
subsidiary of Meritage shall be considered to be a payment made or action taken
by Meritage for purposes of determining whether Meritage has satisfied its
obligations under this Agreement.

 

20.                               SECTION
409A.

 

If any payments under this Agreement are subject to
the provisions of Code Section 409A, it is intended that the Agreement will
comply fully with and meet all the requirements of Code Section 409A.

 

If you would like to participate in this special
benefits program, please sign and return the extra copy of this letter which is
enclosed.

 

	
   

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
  MERITAGE
  HOMES CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By.

  	
    /s/ John R.
  Landon

  	
   

  
	
   

  	
  Name: John Landon

  
	
   

  	
  Title: Co-CEO

  

 

ACCEPTANCE

 

I hereby accept the offer to participate in this
special benefits program and I agree to be bound by all of the provisions noted
above.

 

	
   

  	
    /s/ Sandra R.A. Karrmann

  	
   

  
	
   

  	
    Sandra R.A.
  Karrmann

  

 

10Exhibit 10.1

 

EXECUTION COPY

 

 

 

 

FIVE-YEAR
CREDIT AGREEMENT

 

dated as of

 

August 4, 2005

 

between

 

WASHINGTON
MUTUAL, INC.,

as Borrower

 

The LENDERS
Party Hereto

 

BANK OF
AMERICA, N.A.,

BARCLAYS
BANK PLC and

CITIBANK,
N.A.,

as
Syndication Agents,

 

J.P. MORGAN
SECURITIES INC.,

as Sole Lead
Arranger and Sole Bookrunner

 

and

 

JPMORGAN
CHASE BANK, N.A.,

as
Administrative Agent

 

 

$800,000,000

 

 

 

 

TABLE OF
CONTENTS

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE I

  	
   

  
	
   

  	
   

  
	
  DEFINITIONS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 1.01. 

  	
   

  	
  Defined Terms 

  	
  1

  
	
  SECTION 1.02. 

  	
   

  	
  Classification of Loans and Borrowings

  	
  17

  
	
  SECTION 1.03. 

  	
   

  	
  Terms Generally

  	
  17

  
	
  SECTION 1.04. 

  	
   

  	
  Accounting Terms; GAAP

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
   

  
	
   

  	
   

  
	
  THE
  CREDITS

  	
   

  
	
   

  	
   

  
	
  SECTION 2.01. 

  	
   

  	
  The Commitments

  	
  18

  
	
  SECTION 2.02. 

  	
   

  	
  Loans and Borrowings

  	
  18

  
	
  SECTION 2.03. 

  	
   

  	
  Requests for Syndicated Borrowings

  	
  19

  
	
  SECTION 2.04. 

  	
   

  	
  Competitive Bid Procedure

  	
  19

  
	
  SECTION 2.05.

  	
   

  	
  Swingline Loans

  	
  22

  
	
  SECTION 2.06. 

  	
   

  	
  Funding of Borrowings 

  	
  24

  
	
  SECTION 2.07. 

  	
   

  	
  Interest Elections

  	
  24

  
	
  SECTION 2.08. 

  	
   

  	
  Termination and Reduction of the
  Commitments

  	
  26

  
	
  SECTION 2.09. 

  	
   

  	
  Repayment of Loans; Evidence of Debt

  	
  26

  
	
  SECTION 2.10. 

  	
   

  	
  Prepayment of Loans

  	
  28

  
	
  SECTION 2.11. 

  	
   

  	
  Fees

  	
  28

  
	
  SECTION 2.12. 

  	
   

  	
  Interest

  	
  29

  
	
  SECTION 2.13. 

  	
   

  	
  Alternate Rate of Interest

  	
  30

  
	
  SECTION 2.14. 

  	
   

  	
  Increased Costs

  	
  30

  
	
  SECTION 2.15. 

  	
   

  	
  Break Funding Payments

  	
  32

  
	
  SECTION 2.16. 

  	
   

  	
  Taxes

  	
  32

  
	
  SECTION 2.17. 

  	
   

  	
  Payments Generally; Pro Rata Treatment;
  Sharing of Set-offs

  	
  33

  
	
  SECTION 2.18. 

  	
   

  	
  Mitigation Obligations; Replacement of
  Lenders

  	
  35

  
	
   

  	
   

  
	
  ARTICLE
  III

  	
   

  
	
   

  	
   

  
	
  REPRESENTATIONS
  AND WARRANTIES

  	
   

  
	
   

  	
   

  
	
  SECTION 3.01. 

  	
   

  	
  Organization; Powers 

  	
  36

  
	
  SECTION 3.02. 

  	
   

  	
  Authorization; Enforceability

  	
  36

  
	
  SECTION 3.03. 

  	
   

  	
  Governmental Approvals; No Conflicts

  	
  36

  
	
  SECTION 3.04. 

  	
   

  	
  Financial Condition; No Material Adverse
  Change

  	
  37

  
	
  SECTION 3.05. 

  	
   

  	
  Properties

  	
  37

  

 

(i)

 

	
  SECTION 3.06.

  	
   

  	
  Litigation and Environmental Matters

  	
  37

  
	
  SECTION 3.07.

  	
   

  	
  Compliance with Laws and Agreements

  	
  38

  
	
  SECTION 3.08.

  	
   

  	
  Investment and Holding Company Status

  	
  38

  
	
  SECTION 3.09.

  	
   

  	
  Taxes

  	
  38

  
	
  SECTION 3.10.

  	
   

  	
  ERISA

  	
  38

  
	
  SECTION 3.11.

  	
   

  	
  Disclosure

  	
  38

  
	
  SECTION 3.12.

  	
   

  	
  Use of Credit

  	
  39

  
	
  SECTION 3.13.

  	
   

  	
  Liens

  	
  39

  
	
  SECTION 3.14.

  	
   

  	
  Subsidiaries

  	
  39

  
	
   

  	
   

  
	
  ARTICLE IV

  	
   

  
	
   

  	
   

  
	
  CONDITIONS

  	
   

  
	
   

  	
   

  
	
  SECTION 4.01.

  	
   

  	
  Effective Date

  	
  39

  
	
  SECTION 4.02.

  	
   

  	
  Each Credit Event

  	
  41

  
	
   

  	
   

  
	
  ARTICLE V

  	
   

  
	
   

  	
   

  
	
  AFFIRMATIVE
  COVENANTS

  	
   

  
	
   

  	
   

  
	
  SECTION 5.01.

  	
   

  	
  Financial Statements and Other
  Information

  	
  41

  
	
  SECTION 5.02.

  	
   

  	
  Notices of Material Events

  	
  43

  
	
  SECTION 5.03.

  	
   

  	
  Existence; Conduct of Business

  	
  44

  
	
  SECTION 5.04.

  	
   

  	
  Payment of Obligations

  	
  44

  
	
  SECTION 5.05.

  	
   

  	
  Maintenance of Properties; Insurance

  	
  44

  
	
  SECTION 5.06.

  	
   

  	
  Books and Records; Inspection Rights

  	
  44

  
	
  SECTION 5.07.

  	
   

  	
  Compliance with Laws

  	
  44

  
	
  SECTION 5.08.

  	
   

  	
  Use of Proceeds

  	
  45

  
	
  SECTION 5.09.

  	
   

  	
  Insured Subsidiary Capital

  	
  45

  
	
   

  	
   

  
	
  ARTICLE VI

  	
   

  
	
   

  	
   

  
	
  NEGATIVE
  COVENANTS

  	
   

  
	
   

  	
   

  
	
  SECTION 6.01.

  	
   

  	
  Liens

  	
  45

  
	
  SECTION 6.02.

  	
   

  	
  Fundamental Changes

  	
  46

  
	
  SECTION 6.03.

  	
   

  	
  Certain Restrictions on Subsidiaries

  	
  47

  
	
  SECTION 6.04.

  	
   

  	
  Certain Financial Covenants

  	
  47

  
	
   

  	
   

  
	
  ARTICLE
  VII

  	
   

  
	
   

  	
   

  
	
  EVENTS OF
  DEFAULT

  	
  47

  

 

(ii)

 

	
  ARTICLE
  VIII

  	
   

  
	
   

  	
   

  
	
  AGENTS

  	
   

  
	
   

  	
   

  
	
  SECTION 8.01

  	
   

  	
  Administrative Agent

  	
  50

  
	
  SECTION 8.02

  	
   

  	
  Syndication Agents

  	
  52

  
	
   

  	
   

  
	
  ARTICLE IX

  	
   

  
	
   

  	
   

  
	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  
	
  SECTION 9.01.

  	
   

  	
  Notices

  	
  52

  
	
  SECTION 9.02.

  	
   

  	
  Waivers; Amendments

  	
  53

  
	
  SECTION 9.03.

  	
   

  	
  Expenses; Indemnity; Damage Waiver

  	
  54

  
	
  SECTION 9.04.

  	
   

  	
  Successors and Assigns

  	
  57

  
	
  SECTION 9.05.

  	
   

  	
  Survival

  	
  60

  
	
  SECTION 9.06.

  	
   

  	
  Counterparts; Integration; Effectiveness

  	
  60

  
	
  SECTION 9.07.

  	
   

  	
  Severability

  	
  61

  
	
  SECTION 9.08.

  	
   

  	
  Right of Setoff

  	
  61

  
	
  SECTION 9.09.

  	
   

  	
  Governing Law; Jurisdiction; Etc.

  	
  61

  
	
  SECTION 9.10.

  	
   

  	
  WAIVER OF JURY TRIAL

  	
  62

  
	
  SECTION 9.11.

  	
   

  	
  Headings

  	
  62

  
	
  SECTION 9.12.

  	
   

  	
  Treatment of Certain Information;
  Confidentiality

  	
  62

  
	
  SECTION 9.13.

  	
   

  	
  USA PATRIOT Act

  	
  63

  
	
   

  	
   

  	
   

  	
   

  
	
  Schedule I

  	
  -

  	
   

  	
  Commitments

  	
   

  
	
  Schedule II

  	
  -

  	
   

  	
  Material Liens

  	
   

  
	
  Schedule III

  	
  -

  	
   

  	
  Litigation

  	
   

  
	
  Schedule IV

  	
  -

  	
   

  	
  Environmental Matters

  	
   

  
	
  Schedule V

  	
  -

  	
   

  	
  Major Subsidiaries

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit A

  	
  -

  	
   

  	
  Form of Assignment and Assumption

  	
   

  
	
  Exhibit B

  	
  -

  	
   

  	
  Form of Opinion of Counsel to the
  Borrower

  	
   

  
	
  Exhibit C

  	
  -

  	
   

  	
  Form of Opinion of Special New York
  Counsel to JPMCB

  	
   

  

 

(iii)

 

FIVE-YEAR CREDIT AGREEMENT dated as of
August 4, 2005 between WASHINGTON MUTUAL, INC. (the “Borrower”), the
LENDERS party hereto, and JPMORGAN CHASE BANK, N.A., as Administrative Agent.

 

The Borrower has requested that the
Lenders (as defined herein) make loans to it in an aggregate principal amount
not exceeding $800,000,000 at any one time outstanding. The Lenders are
prepared to make such loans upon the terms and conditions hereof, and,
accordingly, the parties hereto agree as follows:

 

ARTICLE I

 

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 constituting
such Borrowing, are bearing interest at a rate determined by reference to the
Alternate Base Rate.

 

“Acquisition” shall mean any
transaction, or any series of related transactions, consummated after the date
of this Agreement, by which the Borrower and/or one or more of its Subsidiaries
(in one transaction or as the most recent transaction in a series of related
transactions) (a) acquires any going business or all or substantially all of
the assets of any Person (or division or operating unit thereof), whether
through purchase of assets, merger or otherwise or, (b) directly or indirectly
acquires control of 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 of
any corporation, limited liability company, partnership, association or other
entity.

 

“Additional Margin” means, with
respect to any Loan, a rate per annum determined as provided in the definition
of the term “Applicable Rate” payable for (i) each day prior to the Commitment
Termination Date on which the aggregate outstanding principal amount of the
Loans equals or exceeds an amount equal to 50% of the Commitments and (ii) each
day on or after the Commitment Termination Date on which any Loans remain
outstanding.

 

“Adjusted LIBO Rate” means, for the
Interest Period for any Eurodollar Borrowing, an interest rate per annum
(rounded upwards, if necessary, to the next 1/16 of 1%) equal to (a) the LIBO
Rate for such Interest Period multiplied by (b) the Statutory Reserve
Rate for such Interest Period.

 

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

 

Credit Agreement

 

 

- 2 -

 

“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.

 

“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 sum of (i) Federal Funds Effective Rate for such day
and (ii) 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, as the case may be.

 

“Applicable Percentage” means, with
respect to any Lender, the percentage of the total Commitments represented by
such Lender’s Commitment. If the Commitments have terminated or expired, the
Applicable Percentages shall be determined based upon the aggregate principal
amount of the Syndicated Loans held by the Lenders or, if no Syndicated Loans
are outstanding and in the case of determining such Lender’s Swingline
Exposure, the Commitments most recently in effect, giving effect to any
assignments.

 

“Applicable Rate” means, for any
day, with respect to any ABR Loan (including any Swingline Loan), zero, or with
respect to any Syndicated Eurodollar Loan, or with respect to the facility fees
or Additional Margin payable hereunder, as the case may be, the applicable rate
per annum set forth below under the caption, “Eurodollar Spread”, “Facility Fee
Rate” or “Additional Margin”, respectively, based upon the ratings by Moody’s
and S&P, respectively, applicable on such date to the Index Debt:

 

	
   

  	
   

  	
  Index Debt

  Ratings

  (S&P/Moody’s)

  	
   

  	
  Eurodollar

  Spread

  	
   

  	
  Facility Fee

  Rate

  	
   

  	
  Additional

  Margin

  	
   

  
	
  Category 1

  	
   

  	
  >A+/A1

  	
   

  	
  .140

  	
  %

  	
  .060

  	
  %

  	
  .050

  	
  %

  
	
  Category 2

  	
   

  	
  A/A2

  	
   

  	
  .180

  	
  %

  	
  .070

  	
  %

  	
  .050

  	
  %

  
	
  Category 3

  	
   

  	
  A-/A3

  	
   

  	
  .220

  	
  %

  	
  .080

  	
  %

  	
  .100

  	
  %

  
	
  Category 4

  	
   

  	
  BBB+/Baa1

  	
   

  	
  .300

  	
  %

  	
  .100

  	
  %

  	
  .100

  	
  %

  
	
  Category 5

  	
   

  	
  BBB/Baa2

  	
   

  	
  .380

  	
  %

  	
  .120

  	
  %

  	
  .100

  	
  %

  
	
  Category 6

  	
   

  	
  <BBB-/Baa3

  	
   

  	
  .600

  	
  %

  	
  .150

  	
  %

  	
  .100

  	
  %

  

 

For purposes of the foregoing, (i) if
either Moody’s or S&P shall not have in effect a rating for the Index Debt
of the Borrower (other than by reason of the circumstances referred to in the
last sentence of this paragraph), then such rating agency

 

Credit Agreement

 

 

- 3 -

 

shall be deemed to have established a
rating for the Index Debt of the Borrower in Category 6; and (ii) if the
ratings established or deemed to have been established by Moody’s and S&P
for the Index Debt shall be changed (other than as a result of a change in the
rating system of Moody’s or S&P), such change shall be effective as of the
date on which it is first announced by the applicable rating agency. Each
change in the Applicable Rate shall apply 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 Moody’s or
S&P shall change, or if either such rating agency shall cease to be in the
business of rating corporate debt obligations, the Borrower 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.

 

Subject to the foregoing, the Applicable
Rate shall be determined by reference to the higher Index Debt rating assigned
by Moody’s and S&P to the Borrower; provided that, if there shall be
a difference of two or more rating categories between the ratings assigned by
Moody’s and S&P to the Index Debt of the Borrower, the Applicable Rate
shall be determined by reference to the Index Debt rating that is one category
lower than the higher of the two Index Debt ratings assigned by Moody’s and
S&P.

 

“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.

 

“Asset Securitization” shall mean
either of the following types of transactions, whether on a full recourse,
limited recourse or non-recourse basis: (a) a public or private transfer of
installment receivables, credit card receivables, lease receivables or any
other type of secured or unsecured financial assets which transfer is recorded
as a sale on the books of the transferor according to GAAP as of the date of such
transfer, or (b) a transfer of installment receivables, credit card
receivables, lease receivables or other financial assets to a bankruptcy-remote
special purpose entity owned by the transferor, or owned by a parent or
Subsidiary of the transferor, which transfer shall be a legal sale and a sale
on the books of the transferor for GAAP purposes, with a subsequent granting of
an undivided interest in the pool of financial assets held by the special
purpose entity to one or more single or multi-seller commercial paper conduits,
and accompanying liquidity bank or banks, which subsequent transfer of interest
shall be treated as a financing for GAAP purposes.

 

“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 9.04), and accepted
by the Administrative Agent, in the form of Exhibit A or any other form
approved by the Administrative Agent.

 

Credit Agreement

 

 

- 4 -

 

“Availability Period” means the
period from and including the Effective Date to and including the Commitment
Termination Date.

 

“Bank Regulatory Authority” means
the Board, the Comptroller of the Currency, the Federal Deposit Insurance
Corporation and all other relevant bank regulatory authorities (including
relevant state bank regulatory authorities).

 

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

 

“Borrowing” means (a) all ABR Loans
made to, or converted or continued by, the Borrower on the same date, (b) all
Syndicated Eurodollar Loans or Competitive Loans made to the Borrower of the
same Class and Type that have the same Interest Period (or any single
Competitive Loan made to the Borrower that does not have the same Interest
Period as any other Competitive Loan of the same Type) or (c) a Swingline Loan.
For purposes hereof, the date of a Syndicated Borrowing comprising one or more Loans
that have been converted or continued shall be the effective date of the most
recent conversion or continuation of such Loan or Loans.

 

“Borrowing Request” means a request
by the Borrower for a Syndicated Borrowing in accordance with Section 2.03.

 

“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,
when used in connection with a Eurodollar Loan, the term “Business Day” shall
also exclude any day on which banks are not open for dealings in Dollar
deposits in the London interbank market.

 

“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” shall mean (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 SEC thereunder as in effect on the date
hereof), of shares representing more than 25% of the aggregate ordinary voting power
represented by the issued and outstanding capital stock of the Borrower; (b)
during any period of 25 consecutive calendar months, a majority of the Board of
Directors of the Borrower ceasing to be composed of individuals (i) who were
members of said Board on the first day of such period, (ii) whose election or
nomination to said Board was approved by individuals referred to in clause (i)
above constituting at the time of such election or nomination at least a
majority of said Board or (iii) whose election or nomination to said Board was
approved by individuals referred to in clauses (i) and (ii) above constituting
at the time of such election or nomination at least a majority of said Board;
or (c) the

 

Credit Agreement

 

 

- 5 -

 

acquisition by any Person or group of
direct or indirect possession of the power to direct or cause to direct the
management or policies of the Borrower, whether through the ability to exercise
voting power, by contract or otherwise.

 

“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(b), 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.

 

“Class”, when used in reference to
any Loan or Borrowing, refers to whether such Loan, or the Loans constituting
such Borrowing, are Syndicated Loans, Competitive Loans or Swingline Loans.

 

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

 

“Commitments” means with respect to
each Lender, the obligation of such Lender to make Syndicated Loans pursuant to
Section 2.01 and to acquire participations in Swingline Loans pursuant to
Section 2.05(c), 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 Lender pursuant to Section 9.04. The initial amount
of each Lender’s Commitment is set forth on Schedule I, or in the Assignment and
Assumption pursuant to which such Lender shall have assumed such Commitment, as
applicable. The initial aggregate amount of the Commitments shall be
$800,000,000.

 

“Commitment Termination Date” means
August 4, 2010.

 

“Competitive”, when used in
reference to any Loan or Borrowing, refers to whether such Loan, or the Loans
constituting such Borrowing, are made pursuant to Section 2.04.

 

“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 by the Borrower for Competitive Bids in accordance with Section 2.04.

 

“Consolidated Assets” shall mean,
at any date, the amount at which the assets of the Borrower and its
Subsidiaries are or should be shown on a consolidated statement of financial
position prepared in accordance with GAAP as at such date.

 

Credit Agreement

 

 

- 6 -

 

“Consolidated Equity” shall mean,
at any date, the amount of stockholders’ equity of the Borrower and its
Subsidiaries determined on a consolidated basis without duplication in
accordance with GAAP (and, for the purposes of Section 6.04 only, shall include
Special Preferred Equity Securities, but only to the extent that such Special
Preferred Equity Securities could be treated as Tier 1 capital of the Borrower
if the Borrower were a bank holding company subject to regulation by the Board).

 

“Consolidated Loans Held in Portfolio”
means, at any date, the aggregate amount of “loans held in portfolio” as are or
should be shown on a consolidated statement of financial position of the
Borrower and its Subsidiaries prepared in accordance with GAAP as at such date.

 

“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.

 

“Disclosed Matters” means the
actions, suits and proceedings disclosed in Schedule III and the environmental
matters disclosed in Schedule IV.

 

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

 

“Double Leverage Ratio” means, at
any date, the ratio of (a) the sum of (i) the aggregate book value of the
Investments of the Borrower in the capital notes and stock of its Subsidiaries
as at such date plus (ii) the aggregate amount of intangibles (including
purchased mortgage servicing rights and purchased credit card relationships) of
the Borrower as at such date to (b) Consolidated Equity as at such date.

 

“Effective Date” means the date on
which the conditions specified in Section 4.01 are satisfied (or waived in
accordance with Section 9.02).

 

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

 

“Environmental Liability” means any
liability, contingent or otherwise (including any liability for damages, costs
of environmental remediation, fines, penalties or indemnities), of the Borrower
or any of its Subsidiaries directly or indirectly resulting from or based upon
(a) violation of any Environmental Law, (b) the generation, use, handling,
transportation, storage, treatment or disposal of any Hazardous Materials, (c)
exposure to any Hazardous Materials, (d) the release or threatened release of
any

 

Credit Agreement

 

 

- 7 -

 

Hazardous Materials into the environment
or (e) any contract, agreement or other consensual arrangement pursuant to
which liability is assumed or imposed with respect to any of the foregoing.

 

“Equity Rights” means, with respect
to any Person, any subscriptions, options, warrants, commitments, preemptive
rights or agreements of any kind (including any shareholders’ or voting trust
agreements) for the issuance, sale, registration or voting of, or securities
convertible into, any additional shares of capital stock of any class, or partnership
or other ownership interests of any type in, such Person.

 

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

 

“ERISA Affiliate” means, with
respect to the Borrower, any trade or business (whether or not incorporated)
that, together with the Borrower, 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.

 

“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 Borrower
or any of its ERISA Affiliates of any liability under Title IV of ERISA with respect
to the termination of any Plan; (e) the distribution of or receipt by the
Borrower or any of its ERISA Affiliates 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 or the institution of proceedings by
from the PBGC or a plan administrator in relation to the foregoing; (f) the
incurrence by the Borrower or any of its ERISA Affiliates of any liability
(including the obligation to satisfy secondary liability as a result of a
purchaser default) with respect to the withdrawal or partial withdrawal from
any Plan or Multiemployer Plan; (g) the receipt by the Borrower or any of its
ERISA Affiliates of any notice, or the receipt by any Multiemployer Plan from
the Borrower or any of its ERISA Affiliates 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; (h) the institution of a proceeding by a fiduciary of any
Multiemployer Plan against the Borrower or any of its ERISA Affiliates to
enforce Section 515 of ERISA, which proceeding is not dismissed within 30 days;
or (i) the adoption of an amendment to any Plan that, pursuant to Section
401(a)(29) of the Code or Section 307 of ERISA, would result in the loss of tax-exempt
status of the trust of which such Plan is a part if the Borrower or any of its ERISA
Affiliates fails to timely provide security to the Plan in accordance with the provisions
of said Sections.

 

Credit Agreement

 

 

- 8 -

 

“Eurodollar”, when used in
reference to any Loan or Borrowing, refers to whether such Loan, or the Loans
constituting such Borrowing, are bearing interest at a rate determined by
reference to (a) in the case of a Syndicated Loan or Borrowing, the Adjusted
LIBO Rate, or (b) in the case of a Competitive Loan or Borrowing, the LIBO Rate.

 

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

 

“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 the Borrower
hereunder, (a) income or franchise taxes imposed on (or measured by) its net
income by the United States of America, or by the jurisdiction under the laws
of which such recipient is organized or in which its principal office is
located or, in the case of any Lender, in which its applicable lending office
is located, (b) any branch profits taxes imposed by the United States of
America or any similar tax imposed by any other jurisdiction in which the
Borrower is located and (c) in the case of a Foreign Lender (other than an
assignee pursuant to a request by the Borrower under Section 2.18(b)), any withholding
tax that is imposed on amounts payable to such Foreign Lender at the time such
Foreign Lender becomes a party to this Agreement or is attributable to such
Foreign Lender’s failure or inability to comply with Section 2.16(e), except to
the extent that such Foreign Lender’s assignor (if any) was entitled, at the
time of assignment, to receive additional amounts from the Borrower with
respect to such withholding tax pursuant to Section 2.16(a).

 

“Existing Credit Agreement” means
the Three-Year Credit Agreement dated as of August 12, 2002 between the
Borrower, Washington Mutual Financial Corporation, the lenders party thereto
and JPMCB (formerly known as JPMorgan Chase Bank), as administrative agent for
such lenders, as heretofore amended.

 

“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” means the chief
financial officer, principal accounting officer, treasurer or controller of the
Borrower.

 

“Fixed Rate” means, with respect to
any Competitive Loan (other than a Competitive Eurodollar 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.

 

Credit Agreement

 

 

- 9 -

 

“Foreign Lender” means any Lender
that is organized under the laws of a jurisdiction other than that in which the
Borrower is located. For purposes of this definition, the United States of
America, each State thereof and the District of Columbia shall be deemed to
constitute a single jurisdiction.

 

“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 or other obligation of any other Person (the “primary obligor”)
in any manner, 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 all
explosive or radioactive substances or wastes and all hazardous or toxic
substances, wastes or other pollutants, including petroleum or petroleum distillates,
asbestos or asbestos containing materials, polychlorinated biphenyls, radon
gas, infectious or medical wastes and all other substances or wastes of any
nature regulated pursuant to any Environmental Law.

 

“Hedging Agreement” means any
interest rate protection agreement, foreign currency exchange agreement,
commodity price protection agreement or other interest or currency exchange
rate or commodity price hedging arrangement.

 

“Indebtedness” of any Person means,
without duplication, (a) all obligations of such Person for borrowed money or
with respect to deposits or advances of any kind, (b) all obligations of such
Person evidenced by bonds, debentures, notes or similar instruments, (c) all
obligations of such Person upon which interest charges are customarily paid,
(d) all obligations of such Person under conditional sale or other title retention
agreements relating to property acquired by such Person, (e) all obligations of
such Person in respect of the deferred purchase price of property or services
(excluding

 

Credit Agreement

 

 

- 10 -

 

current accounts payable incurred in the ordinary course of
business), (f) all Indebtedness of others secured by (or for which the holder
of such Indebtedness has an existing right, contingent or otherwise, to be
secured by) any Lien on property owned or acquired by such Person, whether or
not the Indebtedness secured thereby has been assumed, (g) all Guarantees by
such Person of Indebtedness of others, (h) all Capital Lease Obligations of such
Person, (i) all obligations, contingent or otherwise, of such Person as an
account party in respect of letters of credit and letters of guaranty, (j) all
obligations, contingent or otherwise, of such Person in respect of bankers’
acceptances and (k) all Asset Securitizations (for which purpose the amount
thereof shall be deemed to be equal to the aggregate amount of the proceeds
received in connection therewith). The Indebtedness of any Person (x) 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 and (y) shall exclude obligations of such
Person in respect of deposits received in the ordinary course of business.

 

“Indemnified Taxes” means Taxes
other than Excluded Taxes.

 

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

 

“Insured Subsidiary” means any
insured depositary institution (as defined in 12 U.S.C. § 1813(c) (or any
successor provision), as amended, re-enacted or redesignated from time to time,
that is controlled (within the meaning of 12 U.S.C. § 1841 (or any successor
provision), as amended, re-enacted or redesignated from time to time) by the
Borrower.

 

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

 

“Interest Payment Date” means (a)
with respect to any Syndicated ABR Loan, each Quarterly Date, (b) with respect
to any Eurodollar Loan, the last day of each Interest Period therefor and, in
the case of any Interest Period for a Eurodollar Loan that is more than three
months long, each day prior to the last day of such Interest Period that occurs
at intervals of three months after the first day of such Interest Period, (c)
with respect to any Fixed Rate Loan, the last day of the Interest Period
therefor and, in the case of any Interest Period for a Fixed Rate Loan that is
more than 90 days long (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 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 Loan and (d) with
respect to any Swingline Loan, the day that such Loan is required to be repaid
under Section 2.09(a)(iii).

 

Credit Agreement

 

 

- 11 -

 

“Interest Period” means:

 

(a)           for
any Borrowing (other than an ABR Borrowing), the Interest Period of the Loan or
Loans constituting such Borrowing; 

 

(b)           for
any Syndicated Eurodollar Loan, the period commencing on the date of such Loan
and ending on the numerically corresponding day in the calendar month that is
one, two, three or six months thereafter, as specified in the applicable
Borrowing Request or Interest Election Request; 

 

(c)           for
any Competitive Eurodollar Loan, the period commencing on the date of such Loan
and ending on the numerically corresponding day in the calendar month that is
one, two, three or six months thereafter, as specified in the applicable
Competitive Bid Request; and 

 

(d)           for
any Fixed Rate Loan, the period (which shall not be less than 7 days or more
than 180 days) commencing on the date of such Loan 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
Eurodollar 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 Eurodollar 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 Loan initially shall be the
date on which such Loan is made and, in the case of a Syndicated Loan,
thereafter shall be the effective date of the most recent conversion or
continuation of such Loan.

 

“Investment” means, for any Person:
(a) the acquisition (whether for cash, property, services or securities or
otherwise) of capital stock, bonds, notes, debentures, partnership or other
ownership interests or other securities of any other Person or any agreement to
make any such acquisition (including any “short sale” or any sale of any securities
at a time when such securities are not owned by the Person entering into such sale);
(b) the making of any deposit with, or advance, loan or other extension of
credit to, any other Person (including the purchase of property from another
Person subject to an understanding or agreement, contingent or otherwise, to
resell such property to such Person); (c) the entering into of any Guarantee
of, or other contingent obligation with respect to, Indebtedness or other
liability of any other Person and (without duplication) any amount committed to
be advanced, lent or extended to such Person; or (d) the entering into of any
Hedging Agreement.

 

“JPMCB” means JPMorgan Chase Bank,
N.A.

 

Credit Agreement

 

 

- 12 -

 

“Lenders” means the Persons listed
on Schedule I 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
Lenders.

 

“LIBO Rate” means, for the Interest
Period for any Eurodollar Borrowing, the rate appearing on Page 3750 of the
Telerate 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 from time to time for purposes of providing quotations
of interest rates applicable to Dollar deposits 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 the offering of Dollar deposits 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 for such Interest
Period shall be the rate at which Dollar deposits of $5,000,000 and for a
maturity comparable to such Interest Period are offered by the principal London
office of the Administrative Agent 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, (a) any mortgage, deed of trust, lien, pledge, hypothecation,
encumbrance, charge or security interest in, on or of such asset, (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 and (c) in
the case of securities, any purchase option, call or similar right of a third
party with respect to such securities.

 

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

 

“Major Subsidiary” means any
Subsidiary of the Borrower that would be a “significant subsidiary” as defined
in Article 1, Rule 1-02 of Regulation S-X promulgated under the Securities Act,
as such regulation is in effect on the date hereof.

 

“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.

 

“Margin Stock” means “margin stock”
within the meaning of Regulations T, U and X of the Board.

 

“Material Adverse Effect” means a
material adverse effect on (a) the business, assets, operations, prospects or
condition, financial or otherwise, of the Borrower and its Subsidiaries, taken
as a whole, (b) the ability of the Borrower to

 

Credit Agreement

 

 

- 13 -

 

perform any of its obligations under this Agreement or (c) the
rights of or benefits available to the Lenders under this Agreement.

 

“Material Indebtedness” means
Indebtedness (other than the Loans), or obligations in respect of one or more
Hedging Agreements, of any one or more of the Borrower and its Subsidiaries in
an aggregate principal amount exceeding $100,000,000. For purposes of
determining Material Indebtedness, the “principal amount” of the obligations
of any Person in respect of any Hedging Agreement at any time shall be the maximum
aggregate amount (giving effect to any netting agreements) that such Person would
be required to pay if such Hedging Agreement were terminated at such time.

 

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

 

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

 

“Non-Material Subsidiaries” shall
mean, as at any date, Subsidiaries of the Borrower the total assets of which,
in the aggregate, do not exceed one percent (1%) of the Consolidated Assets of
the Borrower and all of its Subsidiaries, as at such date.

 

“Non-Performing Assets” shall mean,
as at any date, the sum, for the Borrower and its Subsidiaries (determined on a
consolidated basis without duplication in accordance with GAAP) of the
following: (a) non-accrual loans plus (b) accruing loans past due 90
days or more plus (c) other non-performing assets plus (d) other
real estate owned plus (e) without duplication for amounts included as
other real estate owned, property acquired pursuant to in-substance
foreclosures.

 

“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 any payment made hereunder or
from the execution, delivery or enforcement of, or otherwise with respect to,
this Agreement.

 

“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 due or are being contested in
compliance with Section 5.04; 

 

(b)           carriers’,
warehousemen’s, mechanics’, materialmen’s, 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 30 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;

 

Credit Agreement

 

 

- 14 -

 

(d)           cash
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; 

 

(e)           judgment
liens in respect of judgments that do not constitute an Event of Default under
clause (k) of Article VII; 

 

(f)            easements,
zoning restrictions, rights-of-way and similar encumbrances on real property
imposed by law or arising in the ordinary course of business that in the
aggregate are not material in amount and do not materially detract from the
value of the affected property or interfere with the ordinary conduct of
business of any of the Borrower and its Subsidiaries; 

 

(g)           security
interests granted in the ordinary course of business in securities and cash
balances held in clearing accounts of clearing agencies to secure short-term
advances made by such clearing agencies; and 

 

(h)           pledges
in the ordinary course of business of securities to municipalities and other
government agencies to secure the payment of the public fund deposits of such
municipalities and government agencies; 

 

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

 

“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 Borrower or any of its ERISA Affiliates 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 JPMCB 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.

 

“Quarterly Dates” means the last
Business Day of March, June, September and December in each year, the first of
which shall be the first such day after the date hereof.

 

“Register” has the meaning assigned
to such term in Section 9.04(c).

 

“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.

 

Credit Agreement

 

 

- 15 -

 

“Repurchase Arrangements” shall
mean repurchase and reverse repurchase arrangements with respect to securities
and financial instruments.

 

“Required Lenders” means, at any
time, Lenders having Revolving Credit Exposures and unused Commitments
representing more than 50% 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 VII, and for all purposes
after the Loans become due and payable pursuant to Article VII or the Commitments
expire or terminate, the outstanding Competitive Loans of the Lenders shall be
included in their respective Revolving Credit Exposures in determining the Required
Lenders).

 

“Revolving Credit Exposure” means,
with respect to any Lender at any time, the aggregate outstanding principal
amount of such Lender’s Syndicated Loans and its Swingline Exposure at such
time.

 

“SEC” means the Securities and
Exchange Commission or any Governmental Authority succeeding to any or all of
the functions of said Commission.

 

“Special Preferred Equity Securities”
shall mean preferred equity securities, if any, issued by a direct or indirect
wholly-owned Subsidiary of the Borrower.

 

“S&P” means Standard &
Poor’s Ratings Services, a Division of The McGraw-Hill Companies, Inc.

 

“Statutory Reserve Rate” means, for
any day (or for the Interest Period for any Eurodollar Borrowing), 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 the Board to which the Administrative
Agent is subject on such day (or, with respect to an Interest Period, the denominator
of which is the number one minus the arithmetic mean of such aggregates for
the days in such Interest Period) with respect to the Adjusted LIBO Rate, for eurocurrency
funding (currently referred to as “Eurocurrency liabilities” in Regulation D of
the Board). Such reserve percentages shall include those imposed pursuant to
such Regulation D. Eurodollar 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.

 

“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

 

Credit Agreement

 

 

- 16 -

 

company, partnership, association or other entity (a) 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, or (b) that is, as of such date, otherwise
Controlled, by the parent or one or more subsidiaries of the parent or by the
parent and one or more subsidiaries of the parent; provided that the
term Subsidiary shall not include any bankruptcy remote special purpose entity
used to receive transfers of installment receivables, credit card receivables,
lease receivables or any other type of secured or unsecured financial assets in
Asset Securitization transactions, except if (i) the accounts of such entity
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, (ii) such transfer is not a legal sale or a sale on the books of the
transferor for GAAP purposes, or (iii) such transfer is treated as a financing
for GAAP purposes.

 

“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 Exposure at such time.

 

“Swingline Lenders” means,
collectively, JPMCB, Bank of America, N.A., Barclays Bank PLC and Citibank,
N.A., in their capacity as lenders of Swingline Loans hereunder.

 

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

 

“Syndicated Loan” means a Loan made
pursuant to Section 2.01.

 

“Tangible Net Worth” means, as at
any date, the sum of:

 

(a)           Consolidated
Equity as at such date; minus 

 

(b)           the
amount of Special Preferred Equity Securities, to the extent otherwise included
in Consolidated Equity, as at such date; minus 

 

(c)           the
sum for the Borrower and its Subsidiaries (determined on a consolidated basis
without duplication in accordance with GAAP) of the cost of treasury shares and
the book value of all assets that should be classified as intangibles (without duplication
of deductions in respect of items already deducted in arriving at Consolidated
Equity, it being understood that mortgage servicing rights are not considered
to be intangibles for the purposes of this definition) but in any event
including goodwill, minority interests, research and development costs,
trademarks, trade names, copyrights, patents and franchises, unamortized debt
discount and expense, all reserves and any write-up in the book value of assets
resulting from a revaluation thereof subsequent to December 31, 2004, all
determined as at such date.

 

Credit Agreement

 

 

- 17 -

 

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

 

“Transactions” means the execution,
delivery and performance by the Borrower of this Agreement, the borrowing of
Loans and the use of the proceeds thereof.

 

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

 

“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 “Syndicated Loan”), by Type (e.g., a “Eurodollar
Loan”) or by any combination thereof. Borrowings also may be classified and
referred to by Class (e.g., a “Syndicated Borrowing”), by Type (e.g., a
“Eurodollar Borrowing”) or by any combination thereof.

 

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 Borrower notifies the Administrative
Agent that the Borrower requests an 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 Borrower that the Required Lenders request an

 

Credit Agreement

 

 

- 18 -

 

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 is
amended in accordance herewith.

 

ARTICLE II

 

THE CREDITS

 

SECTION 2.01. The Commitments.
Subject to the terms and conditions set forth herein, each Lender agrees to
make Syndicated Loans to the Borrower from time to time during the Availability
Period in an aggregate principal amount that will not result in (a) such
Lender’s Revolving Credit Exposure exceeding such Lender’s Commitment or (b)
the sum of the total Revolving Credit Exposures plus the aggregate
principal amount of outstanding Competitive Loans exceeding the total
Commitments. Within the foregoing limits and subject to the terms and
conditions set forth herein, the Borrower may borrow, prepay and reborrow
Syndicated Loans.

 

SECTION 2.02. Loans and Borrowings.

 

(a)           Obligations
of Lenders. Each Syndicated Loan shall be made as part of a Borrowing
consisting of Loans of the same Type made by the Lenders ratably in accordance
with their respective 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. 

 

(b)           Type
of Loans. Subject to Section 2.13, (i) each Syndicated Borrowing shall be
constituted entirely of ABR Loans or Eurodollar Loans as the Borrower may
request in accordance herewith, and (ii) each Competitive Borrowing shall be
constituted entirely of Eurodollar Loans or Fixed Rate Loans as the Borrower
may request in accordance herewith. Each Swingline Loan shall be an ABR Loan.
Each Lender at its option may make any Eurodollar Loan by causing any domestic
or foreign branch or Affiliate of such Lender to make such Loan; provided
that any exercise of such option shall not affect the obligation of the
Borrower to repay such Loan in accordance with the terms of this Agreement.

 

(c)           Minimum
Amounts; Limitation on Number of Borrowings. At the commencement of the
Interest Period for any Syndicated Eurodollar Borrowing, such Borrowing shall
be in an aggregate amount of $10,000,000 or a larger multiple of $1,000,000. At
the time that each ABR Borrowing is made, such Borrowing shall be in an
aggregate amount equal to $5,000,000 or a larger multiple of $1,000,000; provided
that an ABR Borrowing may be in an aggregate amount that is equal to the entire
unused 

 

Credit Agreement

 

 

- 19 -

 

balance of the total Commitments. Each Swingline Loan shall be in an
amount equal to $10,000,000 or a larger multiple of $1,000,000. 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 10 Syndicated
Eurodollar Borrowings outstanding.

 

(d)           Limitations
on Lengths of Interest Periods. Notwithstanding any other provision of this
Agreement, the Borrower shall not be entitled to request, or to elect to
convert to or continue as a Syndicated Eurodollar Borrowing, any Borrowing if the
Interest Period requested therefor would end after the Commitment Termination
Date. 

 

SECTION 2.03. Requests for Syndicated
Borrowings. To request a Syndicated Borrowing, the Borrower shall notify
the Administrative Agent of such request by telephone (a) in the case of a
Syndicated Eurodollar Borrowing, not later than 11:00 a.m., New York City time,
three Business Days before the date of the proposed Borrowing or (b) in the
case of a Syndicated ABR Borrowing, not later than 11:00 a.m., New York City
time, one Business Day 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 Administrative Agent of a written
Borrowing Request in a form approved by the Administrative Agent and signed by
the 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 Eurodollar
Borrowing;

 

(iv)                              in the case of a Syndicated Eurodollar Borrowing, the Interest Period
therefor, which shall be a period contemplated by the definition of the term “Interest
Period”; and 

 

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

 

If no election as to the Type of Syndicated Borrowing is specified,
then the requested Syndicated Borrowing shall be an ABR Borrowing. If no
Interest Period is specified with respect to any requested Syndicated
Eurodollar Borrowing, then the 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 Administrative 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)           Requests
for Bids by the Borrower. Subject to the terms and conditions set forth
herein, from time to time during the period from the Effective Date to 

 

Credit Agreement

 

 

- 20 -

 

but excluding the Commitment Termination Date the 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 aggregate principal amount
of outstanding Competitive Loans at any time shall not exceed the total
Commitments. To request Competitive Bids, the Borrower shall notify the
Administrative Agent of such request by telephone, in the case of a Eurodollar Borrowing,
not later than 11:00 a.m., New York City time, four Business Days before the date
of the proposed Borrowing and, in the case of a Fixed Rate Borrowing, not later
than 10:00 a.m., New York City time, one Business Day before the date of the
proposed Borrowing; provided that the Borrower may submit up to (but not
more than) two 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 Administrative Agent
of a written Competitive Bid Request in a form approved by the Administrative
Agent and signed by the 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 Eurodollar Borrowing or a Fixed
Rate Borrowing;

 

(iv)          the Interest Period for such Borrowing, which shall be a period contemplated
by the definition of the term “Interest Period; and 

 

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

 

Promptly following receipt of a Competitive Bid Request in
accordance with this Section, the Administrative Agent shall notify the Lenders
of the details thereof by telecopy, inviting the Lenders to submit Competitive
Bids.

 

(b)           Making of Bids by Lenders. Each Lender may (but shall not have any obligation to) make one
or more Competitive Bids to the Borrower in response to a Competitive Bid
Request. Each Competitive Bid by a Lender must be in a form approved by the
Administrative Agent and must be received by the Administrative Agent by
telecopy, in the case of a Competitive Eurodollar Borrowing, not later than
9:30 a.m., New York City time, three Business Days before the proposed date of
such Competitive Borrowing, and in the case of a Fixed Rate Borrowing, not
later than 9:30 a.m., New York City time, on the proposed date of such
Competitive Borrowing. Competitive Bids that do not conform substantially to
the form approved by the Administrative Agent may be rejected by the
Administrative Agent, and the Administrative Agent shall notify the 

 

Credit Agreement

 

 

- 21 -

 

applicable Lender of such rejection as promptly as practicable. Each
Competitive Bid shall specify (i) the principal amount (which shall be
$10,000,000 or a larger multiple of $1,000,000 and which may equal the entire
principal amount of the Competitive Borrowing requested by the Borrower) of the
Competitive Loan or Loans that the Lender is willing to make, (ii) the
Competitive Bid Rate or Competitive Bid 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) and (iii) the Interest Period
for each such Loan and the last day thereof.

 

(c)           Notification
of Bids by Administrative Agent. The Administrative Agent shall promptly
notify the 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)           Acceptance
of Bids by the Borrower. Subject only to the provisions of this paragraph,
the Borrower may accept or reject any Competitive Bid. The Borrower, shall
notify the Administrative Agent by telephone, confirmed by telecopy in a form
approved by the Administrative Agent, whether and to what extent it has decided
to accept or reject each Competitive Bid, in the case of a Competitive
Eurodollar Borrowing, not later than 10:30 a.m., New York City time, three
Business Days before the date of the proposed Competitive Borrowing, and in the
case of a Fixed Rate Borrowing, not later than 10:30 a.m., New York City time,
on the proposed date of the Competitive Borrowing; provided that (x)(i)
the failure of the Borrower to give such notice shall be deemed to be a
rejection of each Competitive Bid, (ii) the Borrower shall not accept a
Competitive Bid made at a particular Competitive Bid Rate if the Borrower rejects
a Competitive Bid made at a lower Competitive Bid Rate, (iii) the aggregate amount
of the Competitive Bids accepted by the 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) of this proviso, the 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) of this proviso, no Competitive Bid shall be accepted for
a Competitive Loan unless such Competitive Loan is in a principal amount of $10,000,000
or a larger multiple of $1,000,000 and (y) if a Competitive Loan must be in an
amount less than $10,000,000 because of the provisions of clause (x)(iv) of
this proviso, such Competitive Loan may be in an amount of $1,000,000 or any
multiple thereof, and in calculating the pro  rata allocation of
acceptances of portions of multiple Competitive Bids at a particular Competitive
Bid Rate pursuant to such clause (x)(iv) the amounts shall be rounded to
multiples of $1,000,000 in a manner determined by the Borrower. A notice given
by the Borrower pursuant to this paragraph shall be irrevocable. 

 

(e)           Notification
of Acceptances by the Administrative Agent. The Administrative 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

 

Credit Agreement

 

- 22 -

 

the terms and conditions hereof, to make the Competitive Loan in
respect of which its Competitive Bid has been accepted.

 

(f)            Bids
by the Administrative Agent. 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 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.

 

SECTION 2.05. Swingline Loans.

 

(a)           Agreement
to Make Swingline Loans. Subject to the terms and conditions set forth
herein, each Swingline Lender agrees to make Swingline Loans to the Borrower
from time to time during the period from the Effective Date to but excluding the
Commitment Termination Date in an aggregate principal amount at any time outstanding
that will not result in (i) the aggregate principal amount of outstanding Swingline
Loans of all Swingline Lenders exceeding $200,000,000, (ii) the sum of the total
Revolving Credit Exposures plus the aggregate principal amount of
outstanding Competitive Loans exceeding the total Commitments or (iii) the
aggregate amount of the Revolving Credit Exposure of any Swingline Lender
exceeding the Commitment of such Swingline Lender; provided that no
Swingline Lender shall 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, the Borrower may borrow, prepay and
reborrow Swingline Loans.

 

(b)           Notice
of Swingline Loans by the Borrower. To request a Swingline Loan, the
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 and the Swingline Lender or Lenders from which the Borrower wishes to borrow
such Swingline Loans. The Administrative Agent will promptly advise the relevant
Swingline Lenders of any such notice received from the Borrower. Each relevant
Swingline Lender shall make each Swingline Loan to be made by it available to the
Borrower by means of a credit to the general deposit account of the Borrower
with such Swingline Lender by 3:00 p.m., New York City time, on the requested
date of such Swingline Loan.

 

(c)           Participations
by Lenders in Swingline Loans. Any 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 made by such Swingline
Lender that are at the time outstanding. Such notice to the Administrative
Agent 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.

 

Credit Agreement

 

 

- 23 -

 

Each Lender hereby absolutely and
unconditionally agrees, upon receipt of notice as provided above, to pay to the
Administrative Agent, for account of the requesting 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 Section 2.05(c) 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 Section 2.05(c) 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 2.06 shall apply, mutatis  mutandis, to the
payment obligations of the Lenders), and the Administrative Agent shall
promptly pay to the requesting Swingline Lender the amounts so received by it
from the Lenders. The Administrative Agent shall notify the Borrower of any
participations in any Swingline Loan acquired pursuant to this Section 2.05(c),
and thereafter payments in respect of such Swingline Loan shall be made to the Administrative
Agent and not to the requesting Swingline Lender.

 

Any amounts received by any Swingline
Lender from the Borrower (or other party on behalf of the Borrower) in respect
of a Swingline Loan after receipt by such 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 Section 2.05(c) and to such Swingline Lender, as
their interests may appear. The purchase of participations in a Swingline Loan
pursuant to this Section 2.05(c) shall not relieve the Borrower of any default
in the payment thereof.

 

Notwithstanding the foregoing, a Lender
shall not have any obligation to acquire a participation in a Swingline Loan
pursuant to this Section 2.05(c) if a Default shall have occurred and be
continuing at the time such Swingline Loan was made and such Lender shall have
notified the Swingline Lenders in writing, at least one Business Day prior to
the time such Swingline Loan was made, that such Default has occurred and that
such Lender will not acquire participations in Swingline Loans made while such Default
is continuing (each such notice, a “Notice of Default”). Following a
Notice of Default by any Lender, no Swingline Lender shall have any obligation
to, but may in its absolute discretion, make a Swingline Loan until it has
received notice in writing from each such Lender that such Lender has rescinded
its Notice of Default (each such notice, a “Notice of Rescission”), upon
which Notice of Rescission (i) each Swingline Lender’s obligation to make
Swingline Loans as described in paragraph (a) of this Section shall be reinstated
and (ii) such Lender shall have all the obligations of a Lender to acquire participations
in Swingline Loans as described in the foregoing paragraphs of this clause (c).
If each such Notice of Rescission described in the foregoing sentence is received
by the relevant Swingline Lender not later than 1:00 p.m., New York City time, on
any Business Day, such Swingline Lender shall make the relevant Swingline Loan
as described in the last sentence of clause (b) of this Section 5.05 on such
Business Day.

 

Credit Agreement

 

 

- 24 -

 

SECTION 2.06. Funding of Borrowings.

 

(a)           Funding
by Lenders. 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
12:00p.m., New York City time, to the account of the Administrative Agent most
recently designated by it for such purpose by notice to the Lenders; provided
that Swingline Loans shall be made as provided in Section 2.05. The
Administrative Agent will make such Loans available to the Borrower by promptly
crediting the amounts so received, in like funds, to an account of the Borrower
maintained with the Administrative Agent in New York City and designated by the
Borrower in the applicable Borrowing Request or Competitive Bid Request.

 

(b)           Presumption
by the Administrative Agent. Unless the Administrative Agent shall have
received notice from a Lender prior to the proposed date of any Borrowing that
such Lender will not make available to the Administrative Agent such Lender’s
share of such Borrowing, the Administrative Agent may assume that such Lender
has made such share available on such date in accordance with paragraph (a) of this
Section and may, in reliance upon such assumption, make available to the
Borrower a corresponding amount. In such event, if a Lender has not in fact
made its share of the applicable Borrowing available to the Administrative
Agent, then the applicable Lender and the Borrower severally agree to pay to
the Administrative Agent forthwith on demand such corresponding amount with
interest thereon, for each day from and including the date such amount is made
available to the Borrower to but excluding the date of payment to the
Administrative Agent, at (i) in the case of such Lender, the Federal Funds
Effective Rate or (ii) in the case of the Borrower, the interest rate
applicable to ABR Loans. If such Lender pays such amount to the Administrative
Agent, then such amount shall constitute such Lender’s Loan included, in such
Borrowing.

 

SECTION 2.07. Interest Elections.

 

(a)           Elections
by the Borrower for Syndicated Borrowings. Each Syndicated Borrowing
initially shall be of the Type specified in the applicable Borrowing Request
and, in the case of a Syndicated Eurodollar Borrowing, shall have the Interest Period
specified in such Borrowing Request. Thereafter, the Borrower may elect to convert
such Borrowing to a Borrowing of a different Type or to continue such Borrowing
as a Borrowing of the same Type and, in the case of a Syndicated Eurodollar Borrowing,
may elect the Interest Period therefor, all as provided in this Section. The 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 constituting such Borrowing, and the Loans constituting 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.

 

(b)           Notice
of Elections. To make an election pursuant to this Section, the Borrower
shall notify the Administrative Agent of such election by telephone by the time
that a Borrowing Request would be required under Section 2.03 if Borrower were

 

Credit Agreement

 

 

- 25 -

 

requesting a Syndicated 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 approved by the Administrative
Agent and signed by the Borrower.

 

(c)           Information
in Interest Election Requests. 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) of this paragraph 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 Eurodollar Borrowing;
and

 

(iv)          if
the resulting Borrowing is a Eurodollar Borrowing, the Interest Period therefor
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 Eurodollar
Borrowing but does not specify an Interest Period, then the Borrower shall be
deemed to have selected an Interest Period of one month’s duration.

 

(d)           Notice
by the Administrative Agent to Lenders. 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)           Failure
to Elect; Events of Default. If the Borrower fails to deliver a timely
Interest Election Request with respect to a Syndicated Eurodollar Borrowing prior
to the end of the Interest Period therefor, then, unless such Borrowing is
repaid as provided herein, at the end of such Interest Period such Borrowing
shall be converted to a Syndicated ABR Borrowing. Notwithstanding any contrary
provision hereof, if an Event of Default has occurred and is continuing and the
Administrative Agent, at the request of the Required Lenders, so notifies the
Borrower, then, so long as an Event of Default is continuing (i) no outstanding
Syndicated Borrowing may be converted to or continued as a Syndicated
Eurodollar Borrowing and (ii) unless repaid, each Syndicated Eurodollar Borrowing
shall be converted to a Syndicated ABR Borrowing at the end of the Interest Period
therefor.

 

Credit Agreement

 

 

-26 -

 

SECTION 2.08. Termination and Reduction
of the Commitments.

 

(a)           Scheduled
Termination. Unless previously terminated, the Commitments shall terminate
at the close of business on the Commitment Termination Date.

 

(b)           Voluntary
Termination or Reduction. The Borrower may at any time terminate, or from
time to time reduce, the Commitments; provided that (i) each reduction
of the Commitments shall be in an amount that is an integral multiple of $10,000,000
and (ii) the Borrower shall not terminate or reduce the Commitments if, after giving
effect to any concurrent prepayment of the Loans in accordance with Section
2.10, the sum of the total Revolving Credit Exposures plus the aggregate
principal amount of outstanding Competitive Loans would exceed the total
Commitments.

 

(c)           Notice
of Voluntary Termination or Reduction. The Borrower shall notify the
Administrative Agent of any election to terminate or reduce the Commitments
under paragraph (b) of this Section at least three Business Days 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 Borrower pursuant to this Section shall be irrevocable;
provided that a notice of termination of the Commitments delivered by
the Borrower may state that such notice is conditioned upon the effectiveness
of other credit facilities, in which case such notice may be revoked by the
Borrower (by notice to the Administrative Agent on or prior to the specified
effective date) if such condition is not satisfied.

 

(d)           Effect
of Termination or Reduction. Any termination or reduction of the
Commitments shall be permanent. Each reduction of the Commitments shall be made
ratably among the Lenders in accordance with their respective Commitments. 

 

SECTION 2.09. Repayment of Loans;
Evidence of Debt.

 

(a)           Repayment.
The Borrower hereby unconditionally promises to pay the Loans as follows:

 

(i)            to
the Administrative Agent for account of the Lenders, on the Commitment
Termination Date, the then unpaid principal amount of the Syndicated Loans that
are outstanding at the close of business on the Commitment Termination Date,

 

(ii)           to
the Administrative Agent for account of the respective Lender, on the last day
of the Interest Period therefor, the then unpaid principal amount of each
Competitive Loan of such Lender, and

 

(iii)          to
each Swingline Lender, on the earlier of the Commitment Termination Date and
the first date after such Swingline Loan is made that is no later than the 15th
or last day of a calendar month and is at least one Business Day after such
Swingline Loan is made, the amount of the then unpaid principal

 

Credit Agreement

 

 

- 27 -

 

amount of each Swingline Lender’s
Swingline Loan; provided that, on each date that a Syndicated Borrowing
or Competitive Borrowing is made, the Borrower shall repay all Swingline Loans
then outstanding.

 

(b)           Manner
of Payment. Prior to any repayment or prepayment of any Borrowings
hereunder, the Borrower shall select the Borrowing or Borrowings to be paid and
shall notify the Administrative Agent by telephone (confirmed by telecopy) of
such selection not later than 11:00 a.m., New York City time, three Business
Days before the scheduled date of such repayment; provided that each
repayment of Borrowings by the Borrower shall be applied to repay any
outstanding ABR Borrowings of the Borrower before any other Borrowings. If the
Borrower fails to make a timely selection of the Borrowing or Borrowings to be
repaid or prepaid, such payment shall be applied, first, to pay any outstanding
ABR Borrowings of the Borrower and, second, to other Syndicated Borrowings of
the Borrower in the order of the remaining duration of their respective Interest
Periods (the Borrowing with the shortest remaining Interest Period to be repaid
first). Each payment of a Syndicated Borrowing shall be applied ratably to the
Loans included in such Borrowing.

 

(c)           Maintenance
of Loan Accounts by Lenders. Each Lender shall maintain in accordance with
its usual practice an account or accounts evidencing the indebtedness of the
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.

 

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

 

(e)           Effect
of Entries. The entries made in the accounts maintained pursuant to
paragraph (c) or (d) 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
the Borrower to repay the Loans in accordance with the terms of this Agreement.

 

(g)           Promissory
Notes. Any Lender may request that Loans made by it be evidenced by a
promissory note. In such event, the 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. Thereafter, the Loans evidenced by such promissory
note and interest thereon shall at all times (including after assignment pursuant
to Section 9.04) be represented by one or more promissory notes in such form

 

Credit Agreement

 

 

- 28 -

 

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)           Optional
Prepayments Right to Prepay Borrowings. The Borrower shall have the right
at any time and from time to time to prepay any Borrowing in whole or in part,
subject to the requirements of this Section; provided that the Borrower
shall not have the right to prepay any Competitive Loan without the prior consent
of the Lender thereof.

 

(b)           Notices,
Etc. The Borrower shall notify the Administrative Agent (and, in the case
of prepayment of a Swingline Loan, the applicable Swingline Lender) by telephone
(confirmed by telecopy) of any optional prepayment hereunder of a Borrowing made
by the Borrower (i) in the case of prepayment of a Syndicated Eurodollar Borrowing
or of a Competitive 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 an ABR Borrowing, not later than 11:00 a.m., New York City time, one
Business Day before the date of prepayment or (iii) in the case of prepayment
of a Swingline Loan, not later than 12:00 p.m., 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 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 Syndicated Borrowing or Competitive Borrowing,
the Administrative Agent shall advise the relevant Lenders of the contents
thereof. Each partial prepayment of any Borrowing shall be in an amount that
would be permitted in the case of a Borrowing of the same Type as provided in
Section 2.02. Each prepayment of a Syndicated 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 and
shall be made in the manner specified in Section 2.09(b).

 

SECTION 2.11. Fees.

 

(a)           Facility
Fee. The Borrower agrees to pay to the Administrative Agent for account of
each Lender a facility fee, which shall accrue at the Applicable Rate on the
daily amount of the Commitment of such Lender (whether used or unused) during the
period from and including the date hereof to but excluding the date such
Commitment terminates; provided that, if such Lender continues to have
any Revolving Credit Exposure after its Commitment terminates, then the Borrower
agrees to pay to the Administrative Agent for the account of each Lender a
facility fee which shall accrue on the daily aggregate outstanding principal
amount of Loans (including Competitive Loans and Swingline Loans) of such
Lender made to the Borrower from and including the date on which its Commitment
terminates to but excluding the date on which such Lender ceases to have any
Loans outstanding. Accrued facility fees shall be payable on each Quarterly
Date and on each date the Commitment of any Lender terminates, commencing

 

Credit Agreement

 

 

- 29 -

 

on the first such date to occur after the date hereof; provided
that any facility fees accruing after the date on which the 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)           Administrative
Agent Fees. The Borrower 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 Borrower and the Administrative Agent.

 

(c)           Payment
of Fees. 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 entitled thereto. Fees paid shall not be
refundable under any circumstances.

 

SECTION 2.12. Interest.

 

(a)           ABR
Loans. The Loans constituting each ABR Borrowing (including each Swingline
Loan) shall bear interest at a rate per annum equal to the Alternate Base Rate plus
the Applicable Rate plus, if applicable, the Additional Margin.

 

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

 

(c)           Fixed
Rate Loans. Each Fixed Rate Loan shall bear interest at a rate per annum
equal to the Fixed Rate applicable to such Loan plus, if applicable, the
Additional Margin.

 

(d)           Default
Interest. Notwithstanding the foregoing, if any principal of or interest on
any Loan or any fee or other amount payable by the 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 in paragraph (a) of this Section.

 

(e)           Payment
of Interest. Accrued interest on each Loan shall be payable in arrears on
each Interest Payment Date for such Loan and, in the case of Syndicated Loans,
upon termination of the Commitments; 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 a Syndicated ABR Loan prior to the Commitment Termination Date), accrued
interest on the principal amount repaid or prepaid shall be payable on the date
of such repayment or

 

Credit Agreement

 

 

- 30 -

 

prepayment and (iii) in the event of any conversion of any
Syndicated Eurodollar Borrowing prior to the end of the Interest Period
therefor, accrued interest on such Borrowing shall be payable on the effective
date of such conversion.

 

(f)            Computation.
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, Adjusted LIBO Rate or LIBO
Rate shall be determined by the Administrative Agent, and such determination shall
be conclusive absent manifest error.

 

SECTION 2.13. Alternate Rate of
Interest. If prior to the commencement of the Interest Period for a
Eurodollar Borrowing:

 

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

 

(b)           the
Administrative Agent is advised by the Required Lenders (or, in the case of a
Competitive Eurodollar Loan, the Lender that is required to make such Loan)
that the Adjusted LIBO Rate or the LIBO Rate, as applicable, 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;

 

then the Administrative Agent shall give notice thereof to the
Borrower and the Lenders by telephone or telecopy as promptly as practicable
thereafter and, until the Administrative Agent notifies the Borrower and the
Lenders that the circumstances giving rise to such notice no longer exist, (i)
any Interest Election Request that requests the conversion of any Syndicated
Borrowing to, or continuation of any Syndicated Borrowing as, a Syndicated
Eurodollar Borrowing shall be ineffective, (ii) if any Borrowing Request
requests a Syndicated Eurodollar Borrowing, such Borrowing shall be made as a
Syndicated ABR Borrowing and (iii) any request by the Borrower for a Competitive
Eurodollar Borrowing shall be ineffective; provided that, if the circumstances
giving rise to such notice do not affect all the Lenders, then requests by the Borrower
for Competitive Eurodollar Borrowings may be made to Lenders that are not affected
thereby.

 

SECTION 2.14. Increased Costs.

 

(a)           Increased
Costs Generally. 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 account of, or credit

 

Credit Agreement

 

 

- 31 -

 

extended by, any Lender (except any such
reserve requirement reflected in the Adjusted LIBO Rate); or

 

(ii)           impose
on any Lender or the London interbank market any other condition affecting this
Agreement or Eurodollar Loans or Fixed Rate Loans made by such Lender;

 

and the result of any of the foregoing shall be to increase the
cost to such Lender of making or maintaining any Eurodollar 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 hereunder (whether of
principal, interest or otherwise), then the Borrower will pay to such Lender
such additional amount or amounts as will compensate such Lender for such
additional costs incurred or reduction suffered.

 

(b)           Capital
Requirements. 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 Borrower 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.

 

(c)           Certificates
from Lenders. 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) or (b) of this Section shall be delivered to the
Borrower and shall be conclusive absent manifest error. The Borrower shall pay
such Lender the amount shown as due on any such certificate within 10 days
after receipt thereof.

 

(d)           Delay
in Requests. 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 (i) the Borrower 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 Borrower of the Change in Law giving rise to such
increased costs or reductions and of such Lender’s intention to claim
compensation therefor and (ii) 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.

 

(e)           Competitive
Loans. 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 prior to submission of the Competitive
Bid pursuant to which such Loan was made.

 

Credit Agreement

 

 

- 32 -

 

SECTION 2.15. Break Funding Payments.
In the event of (a) the payment of any principal of any Eurodollar Loan or
Fixed Rate Loan other than on the last day of an Interest Period therefor
(including as a result of an Event of Default), (b) the conversion of any
Syndicated Eurodollar Loan other than on the last day of an Interest Period
therefor, (c) the failure to borrow, convert, continue or prepay any Syndicated
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(b) and is
revoked in accordance therewith), (d) the failure to borrow any Competitive
Loan after accepting the Competitive Bid to make such Loan, or (e) the
assignment of any Eurodollar Loan or Fixed Rate Loan other than on the last day
of an Interest Period therefor as a result of a request by the Borrower
pursuant to Section 2.18, then, in any such event, the Borrower shall
compensate each Lender for the loss, cost and expense attributable to such
event. In the case of a Eurodollar Loan, the loss to any Lender attributable to
any such event shall be deemed to include an amount determined by such Lender
to be equal 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 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
Adjusted 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 Dollar deposits 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 Borrower and shall be conclusive absent manifest error. The
Borrower shall pay such Lender the amount shown as due on any such certificate
within 10 days after receipt thereof.

 

SECTION 2.16. Taxes.

 

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

 

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

 

Credit Agreement

 

 

- 33 -

 

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

 

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

 

(e)           Foreign
Lenders. Any Foreign Lender that is entitled to an exemption from or
reduction of withholding tax under the law of the jurisdiction in which the
Borrower is located, or any treaty to which such jurisdiction is a party, with
respect to payments under this Agreement shall deliver to Borrower (with a copy
to the Administrative Agent), at the time or times prescribed by applicable law
or reasonably requested by Borrower, such properly completed and executed
documentation prescribed by applicable law as will permit such payments to be
made without withholding or at a reduced rate.

 

SECTION 2.17. Payments Generally; Pro
Rata Treatment; Sharing of Set-offs.

 

(a)           Payments
by the Borrower. The Borrower shall make each payment required to be made
by it hereunder (whether of principal, interest or fees, or under Section 2.14,
2.15 or 2.16, or otherwise) prior to 12:00 p.m., New York City time, on the
date when due, in immediately available funds, without set-off or counterclaim;
provided that, if a new Loan is to be made by any Lender to the Borrower
on a date the Borrower is to repay any principal of an outstanding Loan of such
Lender, such Lender shall apply the proceeds of such new Loan to the payment of
the principal to be repaid by the Borrower and only an amount equal to the
difference between the principal to be borrowed and the principal to be repaid
shall be made available by such Lender to the Administrative Agent as provided
in Section 2.06 or paid by the Borrower to the Administrative Agent pursuant to
this paragraph, as the case may be. Any amounts received after such time on any
date may, in the discretion of the Administrative Agent, be deemed to have been
received on the next succeeding Business Day for purposes of calculating
interest thereon. All such payments shall be made to the Administrative Agent
at its offices at 270 Park Avenue, New York, New York, except that payments to be
made directly to any Swingline Lender as expressly provided herein, and
payments

 

Credit Agreement

 

 

- 34 -

 

pursuant to Sections 2.14, 2.15, 2.16 and 9.03, shall be made
directly to the Persons entitled thereto. The Administrative Agent shall
distribute any such payments received by it for 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 shall be made in Dollars.

 

(b)           Application
of Insufficient Payments. 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)           Pro
Rata Treatment. Except to the extent otherwise provided herein: (i) each
payment of facility fee under Section 2.11 shall be made for account of the
Lenders, and each termination or reduction of the amount of the Commitments
under Section 2.08 shall be applied to the respective Commitments of the
Lenders, pro  rata according to the amounts of their respective
Commitments; (ii) each Syndicated Borrowing shall be allocated pro  rata
among the Lenders according to the amounts of their respective Commitments (in
the case of the making of Syndicated Loans) or their respective Loans (in the
case of conversions and continuations of Loans); (iii) each payment or
prepayment of principal of Syndicated Loans by the Borrower shall be made for
account of the Lenders pro  rata in accordance with the respective
unpaid principal amounts of the Syndicated Loans held by them; and (iv) each
payment of interest on Syndicated Loans by the Borrower shall be made for
account of the Lenders pro  rata in accordance with the respective
amounts of interest on such Loans then due and payable to such Lenders.

 

(d)           Sharing
of Payments by Lenders. 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 Syndicated Loans or participations in
Swingline Loans resulting in such Lender receiving payment of a greater
proportion of the aggregate amount of its Syndicated Loans and participations
in Swingline Loans and accrued interest thereon then due 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 Syndicated 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 Syndicated 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 the Borrower pursuant to and in accordance with
the express terms of this Agreement or any

 

Credit Agreement

 

 

- 35 -

 

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 the Borrower or any of its Subsidiaries or
Affiliates (as to which the provisions of this paragraph shall apply). The
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 the Borrower rights of set-off
and counterclaim with respect to such participation as fully as if such Lender
were a direct creditor of the Borrower in the amount of such participation.

 

(e)           Presumptions
of Payment. Unless the Administrative Agent shall have received notice from
the Borrower prior to the date on which any payment is due to the
Administrative Agent for account of the Lenders hereunder that the Borrower
will not make such payment, the Administrative Agent may assume that the
Borrower has made such payment on such date in accordance herewith and may, in
reliance upon such assumption, distribute to the Lenders the amount due. In
such event, if the 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, at the Federal Funds
Effective Rate.

 

(f)            Certain
Deductions by the Administrative Agent. If any Lender shall fail to make
any payment required to be made by it pursuant to Section 2.05(c), 2.06(b) or
2.17(e), then the Administrative Agent may, in its discretion (notwithstanding any
contrary provision hereof), apply any amounts thereafter received by the Administrative
Agent for 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)           Designation
of a Different Lending Office. If any Lender requests compensation under
Section 2.14, or if the Borrower is required to pay any additional amount to
any Lender or any Governmental Authority for 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 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 Borrower hereby agrees to pay all reasonable costs and expenses
incurred by any Lender in connection with any such designation or assignment.

 

(b)           Replacement
of Lenders. If any Lender requests compensation under Section 2.14, or if
the Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for account of any Lender pursuant to Section 2.16, or
if any Lender defaults in its obligation to fund Loans hereunder, then the

 

Credit Agreement

 

 

- 36 -

 

Borrower may, at its sole expense and effort, upon notice to such
Lender and the Administrative Agent, require such Lender to assign and
delegate, without recourse (in accordance with and subject to the restrictions
contained in Section 9.04), 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
Borrower shall have received the prior written consent of the Administrative
Agent (and, if a Commitment is being assigned, each Swingline Lender), 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 Borrower (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 the
Borrower to require such assignment and delegation cease to apply.

 

ARTICLE III

 

REPRESENTATIONS AND WARRANTIES

 

The Borrower represents and warrants to
the Lenders that:

 

SECTION 3.01. Organization; Powers.
The Borrower and each of its Subsidiaries (except Non-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 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 Borrower’s corporate powers
and have been duly authorized by all necessary corporate and, if required, by
all necessary shareholder action. This Agreement has been duly executed and
delivered by the Borrower and constitutes a legal, valid and binding obligation
of the Borrower, enforceable in accordance with its terms, except as such enforceability
may be limited by (a) bankruptcy, insolvency, reorganization, moratorium or
similar laws of general applicability affecting the enforcement of creditors’
rights and (b) the application of general principles of equity (regardless of
whether such enforceability is 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

 

Credit Agreement

 

 

- 37 -

 

any other action by, any Governmental Authority, except such as
have been obtained or made and are in full force and effect, (b) will not
violate any applicable law or regulation or the charter, by-laws or other
organizational documents of the Borrower or any of its Subsidiaries or any
order of any Governmental Authority, (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 assets, or give rise to a right
thereunder to require any payment to be made by any such Person, and (d) will
not result in the creation or imposition of any Lien on any asset of the
Borrower or any of its Subsidiaries.

 

SECTION 3.04. Financial Condition; No
Material Adverse Change.

 

(a)           Financial
Condition. The Borrower has heretofore furnished to the Lenders its
consolidated balance sheet and statements of income, stockholders’ equity and
cash flows (i) as of and for the fiscal year ended December 31, 2004, reported
on by Deloitte & Touche LLP, independent public accountants for the
Borrower, and (ii) as of and for the fiscal quarter and the portion of the
fiscal year ended March 31, 2005, certified by the president, the chairman, the
chief executive officer, a vice-chair, a senior executive vice president, an
executive vice president or a Financial Officer of the Borrower. Such financial
statements present fairly, in all material respects, the financial position and
results of operations and cash flows of the Borrower and its 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) of the first sentence of this paragraph.

 

(b)           No
Material Adverse Change. From December 31, 2004 to the date of this
Agreement, there has been no material adverse change in the business, assets, operations,
prospects or condition, financial or otherwise, of the Borrower and its Subsidiaries,
taken as a whole.

 

SECTION 3.05. Properties. The
Borrower and each of its Subsidiaries has good title to, or valid leasehold
interests in, all its real and personal property material to its business,
except to the extent that failure to have such title could not reasonably be expected
to have a Material Adverse Effect.

 

SECTION 3.06. Litigation and
Environmental Matters.

 

(a)           Actions,
Suits and Proceedings. There are no (A) actions, suits or proceedings by or
before any arbitrator or Governmental Authority now pending against or, to the
knowledge of the Borrower, threatened against or affecting the Borrower or any of
its Subsidiaries or (B) investigations by or before any arbitrator or
Governmental Authority to the knowledge of the Borrower now pending against or
threatened against or affecting the Borrower or any of its Subsidiaries (i) as
to any of which there is a reasonable likelihood 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 involve this Agreement or the Transactions.

 

Credit Agreement

 

 

- 38 -

 

(b)           Environmental
Matters. 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 Borrower 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.

 

SECTION 3.07. Compliance with Laws and
Agreements. The Borrower and each of its Subsidiaries is in compliance with
all laws, regulations and orders of any Governmental Authority applicable to it
or its property 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. No Default has occurred and is continuing.

 

SECTION 3.08. Investment and Holding
Company Status. Neither the Borrower nor any of its Subsidiaries is (a) an “investment
company” as defined in, or subject to regulation under, the Investment Company
Act of 1940 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. The Borrower
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 such
Person 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,
and there were no underfunded Plans (based on the assumptions used for purposes
of Statement of Financial Accounting Standards No. 87) as of the date of the
most recent financial statements in which such underfunded Plans would be
reflected.

 

SECTION 3.11. Disclosure. The
Borrower has disclosed to the Lenders all agreements, instruments and corporate
or other restrictions to which it or any of its Subsidiaries is subject, and
all other matters known to it, that, individually or in the aggregate, could
reasonably be expected to result in a Material Adverse Effect. None of the
reports, financial statements, certificates, schedules or other information
furnished by or on behalf of the Borrower to the Lender in connection with the
negotiation of this Agreement or delivered hereunder (as modified or
supplemented by other information so

 

Credit Agreement

 

 

- 39 -

 

furnished) contains any material misstatement of fact or omits to
state any material fact necessary to make the statements therein, in the light
of the circumstances under which they were made, not misleading; provided
that, with respect to projected financial information, the Borrower represents
only that such information was prepared in good faith based upon assumptions
believed to be reasonable at the time.

 

SECTION 3.12. Use of Credit.
Neither the Borrower nor any of its Subsidiaries is engaged principally, or as
one of its important activities, in the business of extending credit for the
purpose, whether immediate, incidental or ultimate, of buying or carrying
Margin Stock in violation of Regulations T, U or X of the Board, and no part of
the proceeds of any Loan hereunder will be used to buy or carry any Margin
Stock in violation of Regulations T, U or X of the Board.

 

SECTION 3.13. Liens. Schedule II is
a complete and correct list of each Lien securing Indebtedness of any Person
outstanding on the date hereof (other than Liens otherwise permitted by Section
6.01) the aggregate principal or face amount of which equals or exceeds (or may
equal or exceed) $10,000,000 and covering any property of the Borrower, and the
aggregate Indebtedness secured (or that may be secured) by each such Lien and
the property covered by each such Lien is correctly described in Schedule II.
Notwithstanding the foregoing, the Borrower shall not be required to set forth
Asset Securitizations in said Schedule II.

 

SECTION 3.14. Subsidiaries.

 

(a)           Major
Subsidiaries. Set forth in Schedule V is a complete and correct list of all
of the Major Subsidiaries as of the date hereof, together with, for each such
Major Subsidiary, (i) the jurisdiction of organization of such Major
Subsidiary, (ii) each Person holding ownership interests in such Major
Subsidiary and (iii) the nature of the ownership interests held by each such
Person and the percentage of ownership of such Major Subsidiary represented by
such ownership interests. Except as disclosed in Schedule V, (x) the Borrower
and its Major Subsidiaries own, free and clear of Liens, and have the
unencumbered right to vote, all outstanding ownership interests in each Person shown
to be held by it in Schedule V, (y) all of the issued and outstanding capital
stock of each such Person organized as a corporation is validly issued, fully
paid and nonassessable and (z) there are no outstanding Equity Rights with
respect to such Person.

 

(b)           Restrictions
on Subsidiaries. None of the Subsidiaries of the Borrower is, on the date
hereof, subject to any indenture, agreement, instrument or other arrangement of
the type described in Section 6.03.

 

ARTICLE IV

 

CONDITIONS

 

SECTION 4.01. Effective Date. The
obligations of the Lenders to make Loans hereunder shall not become effective
until the date on which the Administrative

 

Credit Agreement

 

 

- 40 -

 

Agent shall have received each of the following documents, each of
which shall be satisfactory to the Administrative Agent (and to the extent
specified below, to each Lender) in form and substance (or such condition shall
have been waived in accordance with Section 9.02):

 

(a)           Executed
Counterparts. 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 to this Agreement) that such party has signed a
counterpart of this Agreement.

 

(b)           Opinion
of Counsel to the Borrower. A favorable written opinion (addressed to the
Administrative Agent and the Lenders and dated the Effective Date) of Heller
Ehrman LLP, counsel for the Borrower, substantially in the form of Exhibit B,
and covering such other matters relating to the Borrower, this Agreement or the
Transactions as the Required Lenders shall reasonably request, and the Borrower
hereby instructs such counsel to deliver such opinion to the Lenders and the
Administrative Agent (it being understood that all or a portion of the matters
described in paragraph 8 of part IV of Exhibit B may be covered by a separate
opinion from the General Counsel of the Borrower).

 

(c)           Opinion
of Special New York Counsel to JPMCB. An opinion, dated the Effective Date,
of Milbank, Tweed, Hadley & McCloy LLP, special New York counsel to JPMCB,
substantially in the form of Exhibit C (and JPMCB hereby instructs such counsel
to deliver such opinion to the Lenders).

 

(d)           Corporate
Documents. Such documents and certificates as the Administrative Agent or
its counsel may reasonably request relating to the organization, existence and
good standing of the Borrower, the authorization of the Transactions and any
other legal matters relating to the Borrower, this Agreement or the Transactions,
all in form and substance satisfactory to the Administrative Agent and its
counsel.

 

(e)           Officer’s
Certificate. A certificate, dated the Effective Date and signed by the
president, the chairman, the chief executive officer, a vice-chair, a senior executive
vice president, an executive vice president or a Financial Officer of the
Borrower, confirming compliance with the conditions set forth in the lettered
clauses of the first sentence of Section 4.02. 

 

(f)            Cancellation
of Existing Credit Agreement. Evidence that the commitments of the lenders
under the Existing Credit Agreement shall have been (or shall be
simultaneously) terminated and all amounts owing thereunder shall have been
paid in full.

 

(g)           Fees
and Expenses. Evidence that the Borrower has paid such fees as it has
agreed to pay to any Lender or the Administrative Agent or J.P. Morgan Securities
Inc. in its capacity as Arranger in connection herewith, including the 

 

Credit Agreement

 

 

- 41 -

 

reasonable fees and expenses of Milbank,
Tweed, Hadley & McCloy LLP, special New York counsel to JPMCB, in
connection with the negotiation, preparation, execution and delivery of this
Agreement and the Loans hereunder (to the extent that statements for such fees
and expenses have been delivered to the Borrower).

 

(h)           Other
Documents. Such other documents as the Administrative Agent or any Lender
or special New York counsel to JPMCB may reasonably request.

 

The Administrative Agent shall notify the
Borrower 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 9.02) on or
prior to 3:00 p.m., New York City time, on August 5, 2005 (and, in the event
such conditions are not so satisfied or waived, the Commitments shall terminate
at such time).

 

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

 

(a)           the
representations and warranties of the Borrower set forth in this Agreement
(except, in the case of any Borrowing that does not increase the outstanding
aggregate principal amount of the Loans of any Lender, the representations and
warranties in Sections 3.06(a), 3.06(b) and 3.10) shall be true and correct on
and as of the date of such Borrowing (or, if any such representation or
warranty is expressly stated to have been made as of a specific date, as of
such specific date); and 

 

(b)           at
the time of and immediately after giving effect to such Borrowing, no Default
or Event of Default shall have occurred and be continuing.

 

Each Borrowing shall be deemed to constitute a representation and
warranty by the Borrower on the date thereof as to the matters specified in the
preceding sentence.

 

ARTICLE V

 

AFFIRMATIVE COVENANTS

 

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

 

SECTION 5.01. Financial Statements and
Other Information. The Borrower will furnish to the Administrative Agent
and each Lender:

 

Credit Agreement

 

 

- 42 -

 

(a)           within
105 days after the end of each fiscal year of the Borrower, the audited
consolidated balance sheet and related statements of operations, stockholders’
equity and cash flows of the Borrower and its Subsidiaries as of the end of and
for such year, setting forth in each case in comparative form the figures for
the previous fiscal year, all reported on by Deloitte & Touche 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 Borrower and its Subsidiaries on a consolidated basis
in accordance with GAAP consistently applied and a statement of such accountants
to the effect that, in making the examination necessary for their opinion,
nothing came to their attention that caused them to believe that the Borrower
was not in compliance with Section 6.04 hereof, insofar as such Section relates
to accounting matters (it being understood that delivery to the Lender of the
Borrower’s Report on Form 10-K filed with the SEC shall satisfy the financial statement
requirements of this Section 5.01(a) so long as the information required to be
contained in such Report is substantially the same as that required under this Section
5.01 (a));

 

(b)           within
75 days after the end of each of the first three fiscal quarters of each fiscal
year of the Borrower, the consolidated balance sheet and related statements of
operations, stockholders’ equity and cash flows of the Borrower and its
Subsidiaries as of the end of and for such fiscal quarter and the then elapsed portion
of the fiscal year, setting forth in each case in comparative form the figures
for (or, in the case of the balance sheet, as of the end of) the corresponding period
or periods of the previous fiscal year, all certified by a Financial Officer of
the Borrower as presenting fairly in all material respects the financial
condition and results of operations of the Borrower and its Subsidiaries on a
consolidated basis in accordance with GAAP consistently applied, subject to
normal year-end audit adjustments and the absence of footnotes (it being
understood that delivery to the Lender of the Borrower’s Report on Form 10-Q
filed with the SEC shall satisfy the financial statement requirements of this
Section 5.01(b) so long as the information required to be contained in such
Report is substantially the same as that required under this Section 5.01(b));

 

(c)           concurrently
with any delivery of financial statements under clause (a) or (b) of this
Section, a certificate of a Financial Officer of the Borrower (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 Section 6.04, and (iii) stating whether any change in GAAP or
in the application thereof has occurred since the date of the audited financial
statements referred to in Section 3.04 and, if any such change has occurred,
specifying the effect of such change on the financial statements accompanying
such certificate;

 

Credit Agreement

 

 

- 43 -

 

(d)           promptly
following any request by the Administrative Agent or any Lender therefor,
copies of all periodic and other reports, proxy statements and other materials
filed by the Borrower or any of its Subsidiaries with the SEC, or with any
national securities exchange or the Office of Thrift Supervision, or distributed
by the Borrower to its shareholders generally, as the case may be;

 

(e)           within
75 days after the end of each of the first three fiscal quarters of each fiscal
year of the Borrower, the balance sheet and related statement of income of the
Borrower as of the end of and for such fiscal quarter and the then elapsed
portion of the fiscal year, setting forth in each case in comparative form the
figures for (or, in the case of the balance sheet, as of the end of) the corresponding
period or periods of the previous fiscal year, all certified by a Financial
Officer of the Borrower as presenting fairly in all material respects the financial
condition and results of operations of the Borrower in accordance with GAAP
consistently applied, subject to normal year-end audit adjustments and the absence
of footnotes; and 

 

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

 

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

 

(a)           the
occurrence of any Default;

 

(b)           the
filing or commencement of any action, suit or proceeding by or before any
arbitrator or Governmental Authority against or affecting the Borrower or any
of its Affiliates 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 Borrower and its Subsidiaries in an aggregate amount exceeding
$35,000,000;

 

(d)           the
assertion of any environmental matter by any Person against, or with respect to
the activities of, the Borrower or any of its Subsidiaries and any alleged
violation of or non-compliance with any Environmental Laws or any permits,
licenses or authorizations, other than any environmental matter or alleged violation
that, if adversely determined, would not (either individually or in the aggregate)
have a Material Adverse Effect; and

 

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

 

Credit Agreement

 

 

- 44 -

 

Each notice delivered under this Section shall be accompanied by a
statement of a Financial Officer or other executive officer of the Borrower
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 Borrower will, and will cause each of its 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 its business; provided that
the foregoing shall not prohibit (a) any merger, consolidation, liquidation, dissolution
or other transaction permitted under Section 6.02 and (b) any Subsidiary that is
not a Major Subsidiary of the Borrower from entering into any merger or
consolidation or amalgamation or from liquidating, winding up or dissolving
itself (or suffering any liquidation or dissolution) or prohibit a disposition
by or of such Subsidiary.

 

SECTION 5.04. Payment of Obligations.
The Borrower 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 Borrower or such Subsidiary has set aside
on its books adequate reserves with respect thereto in accordance with GAAP and
(c) the failure to make payment pending such contest could not reasonably be
expected to result in a Material Adverse Effect.

 

SECTION 5.05. Maintenance of
Properties; Insurance. The Borrower will, and will cause each of its
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 similar businesses operating in the same or
similar locations.

 

SECTION 5.06. Books and Records;
Inspection Rights. The Borrower will, and will cause each of its
Subsidiaries to, keep proper books of record and account in which full, true
and correct entries are made of all dealings and transactions in relation to
its business and activities. The Borrower will, and will cause each of its Subsidiaries
to, permit any representatives designated by the Administrative Agent or any
Lender, 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.

 

SECTION 5.07. Compliance with Laws.
The Borrower 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, except where the failure to do so, individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse
Effect.

 

Credit Agreement

 

 

- 45 -

 

SECTION 5.08. Use of Proceeds. The
Borrower will use the proceeds of the Loans hereunder solely for general
corporate purposes, including commercial paper back-up, in the ordinary course
of business (in compliance with all applicable legal and regulatory
requirements, including Regulations U and X and the Securities Act of 1933, as
amended, and the Securities Exchange Act of 1934, as amended, and the
regulations thereunder); provided that, (i) without the consent of each
Lender, the Borrower may not use the proceeds of any of the Loans hereunder to
finance or refinance, directly or indirectly, an Acquisition of any Person (or
the acquisition of (x) more than 50% of the publicly traded stock (of any
class) of any Person or (y) any of the publicly traded stock (of any class) of
any Person after the Borrower or any of its Subsidiaries shall have been required
to file a Schedule 13D under the Securities Exchange Act of 1934, as amended, with
respect to such stock) unless such Acquisition (or acquisition) has been
approved by the board of directors of such Person or officers thereof duly
authorized to do so and (ii) neither the Administrative Agent nor any Lender
shall have any responsibility as to the use of any of such proceeds.

 

SECTION 5.09. Insured Subsidiary
Capital. The Borrower will at all times ensure that each of its Insured
Subsidiaries is “well capitalized” for purposes of 12 U.S.C. § 1831o, as
amended, re-enacted or redesignated from time to time; and the Borrower and its
Insured Subsidiaries will at all times maintain such amount of capital as may
be prescribed by all applicable Bank Regulatory Authorities, whether by
guideline, regulation, agreement or order.

 

ARTICLE VI

 

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 Borrower covenants and agrees with the
Lenders that:

 

SECTION 6.01. Liens. The Borrower
will not 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 Borrower existing on the date hereof and
set forth in Schedule II; 

 

(c)           any
Lien existing on any property or asset prior to the acquisition thereof by the
Borrower; provided that (i) such Lien is not created in contemplation of
or in connection with such acquisition, (ii) such Lien shall not apply to any
other property or assets of the Borrower and (iii) such Lien shall secure only
those obligations which it secures on the date of such acquisition and

 

Credit Agreement

 

 

- 46 -

 

extensions, renewals and replacements
thereof that do not increase the outstanding principal amount thereof;

 

(d)           Liens
on fixed or capital assets acquired, constructed or improved by the Borrower; provided
that (i) such security interests and the Indebtedness secured thereby are
incurred prior to or within 90 days after such acquisition or the completion of
such construction or improvement, (ii) the Indebtedness secured thereby does
not exceed 80%of the cost of acquiring, constructing or improving such fixed or
capital assets and (iii) such security interests shall not apply to any other
property or assets of the Borrower;

 

(e)           Liens
arising out of Repurchase Arrangements;

 

(f)            Liens
arising out of or securing Hedging Agreements;

 

(g)           Liens
arising out of Asset Securitizations and not involving all, or substantially
all, of the assets of the Borrower;

 

(h)           Liens
involving the pledge by the Borrower of any interest in capital stock of, or
other ownership interest in, any Subsidiary of the Borrower (other than a Major
Subsidiary); and

 

(i)            Liens
involving the pledge of property of the Borrower securing Indebtedness in an
aggregate principal amount not exceeding 2% of the Tangible Net Worth of the
Borrower.

 

SECTION 6.02. Fundamental Changes.

 

(a)           Mergers,
Consolidations, Disposal of Assets, Etc. The Borrower will not, nor will it
permit any of its Major Subsidiaries to, merge into or consolidate with any
other Person, or permit any other Person to merge into or consolidate with it,
or sell, transfer, lease or otherwise dispose of (in one transaction or in a
series of transactions) all or substantially all of its assets, or all or
substantially all of the stock of any of its Major Subsidiaries (in each case,
whether now owned or hereafter acquired), or liquidate or dissolve, except
that, if at the time thereof and immediately after giving effect thereto no Default
shall have occurred and be continuing (i) any Major Subsidiary may merge into the
Borrower in a transaction in which the Borrower is the surviving corporation,
(ii) any Major Subsidiary may merge into any Subsidiary of the Borrower in a
transaction in which the surviving entity is a wholly owned Subsidiary of the
Borrower, (iii) any Major Subsidiary may sell, transfer, lease or otherwise
dispose of its assets to the Borrower or to another wholly owned Subsidiary of
the Borrower and (iv) the Borrower or any Major Subsidiary of the Borrower may
merge or consolidate with any other Person if (x) in the case of a merger or
consolidation of the Borrower, the Borrower is the surviving corporation and,
in any other case, the surviving corporation is, after giving effect to such merger
or consolidation, a wholly owned Subsidiary of the Borrower and (y) after
giving effect thereto no Default would exist hereunder. 

 

Credit Agreement

 

 

- 47 -

 

(b)           Lines
of Business. The Borrower will not, nor will it permit any of its
Subsidiaries to, engage to any substantial extent in any line or lines of
business activity other than (i) the business of owning and operating a
depository institution (as defined in 12 U.S.C. § 1813(c)), a consumer finance
company, a mortgage company, an insurance company, a trust company, an
investment advisor or a securities broker-dealer, (ii) the business of
providing other financial services or (iii) any business that may be engaged in
by a Washington state chartered savings bank (as defined in RCW 32.04.020), a
Federal savings association (as defined in 12 U.S.C. § 1462(5)) or a bank
holding company (as defined in 12 U.S.C. § 1841(a)) or a Subsidiary of any of
them.

 

SECTION 6.03. Certain Restrictions on
Subsidiaries. The Borrower will not permit any of its Subsidiaries to enter
into, after the date hereof, any indenture, agreement, instrument or other
arrangement that, directly or indirectly, prohibits or restrains, or has the
effect of prohibiting or restraining, or imposes materially adverse conditions
upon, the incurrence or payment of Indebtedness, the granting of Liens, the declaration
or payment of dividends, the making of loans, advances, guarantees or Investments
or the sale, assignment, transfer or other disposition of property if the
effect of any such indenture, agreement, instrument or other arrangement could
reasonably be expected to result in a Material Adverse Effect.

 

SECTION 6.04. Certain Financial Covenants.

 

(a)           Double
Leverage Ratio. The Borrower will not permit the Double Leverage Ratio to
exceed 1.30 to 1 at any time.

 

(b)           Tangible
Net Worth. The Borrower will not permit its Tangible Net Worth at any time
to be less than the sum of (x) $11,500,000,000 plus (y) 40% of the aggregate
net income of the Borrower and its Subsidiaries (determined on a consolidated basis
without duplication in accordance with GAAP and for which purpose any net loss shall
be deemed to be a net income of zero) for the period commencing on March 31, 2005
and ending at the time of determination plus (z) 40% of the aggregate
net proceeds received by the Borrower from the issuance by the Borrower after
the date of this Agreement of shares of its capital stock. 

 

(c)           Maximum
Non-Performing Assets. The Borrower will not permit Non-Performing Assets
at any time to constitute more than 4.5% of Consolidated Loans Held in
Portfolio.

 

ARTICLE VII

 

EVENTS OF DEFAULT

 

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

 

(a)           the
Borrower shall fail to pay any principal of any Loan 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;

 

Credit Agreement

 

 

- 48 -

 

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

 

(c)           any
representation or warranty made or deemed made by or on behalf of the Borrower
or any of its Subsidiaries in or in connection with this Agreement or any
amendment or modification hereof, or in any report, certificate, financial.
statement or other document furnished pursuant to or in connection with this
Agreement or any amendment or modification hereof, shall prove to have been
incorrect in any material respect when made or deemed made;

 

(d)           the
Borrower shall fail to observe or perform any covenant, condition or agreement
contained in Section 5.02(a), 5.03 (with respect to the Borrower’s existence),
5.08, 5.09 or in Article VI (other than Section 6.02(b));

 

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

 

(f)            the
Borrower or any of its Subsidiaries 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;

 

(g)           any
event or condition occurs that results in any Material Indebtedness becoming
due prior to its scheduled maturity or that enables or permits (with or without
the giving of notice, the lapse of time or both) the holder or holders of any
Material Indebtedness or any trustee or agent on its or their behalf to cause
any Material Indebtedness to become due, or to require the prepayment,
repurchase, redemption or defeasance thereof, prior to its scheduled maturity; provided
that this clause (g) shall not apply to secured Indebtedness that becomes due
as a result of the voluntary sale or transfer of the property or assets securing
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
Borrower or any of its Subsidiaries (other than Non-Material Subsidiaries) 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 Borrower or any of its Subsidiaries
(other than Non-Material Subsidiaries) or for a substantial part of its assets,
and, in any such case, such proceeding or petition shall continue 

 

Credit Agreement

 

 

- 49 -

 

undismissed for a period of 60 or more
days or an order or decree approving or ordering any of the foregoing shall be
entered;

 

(i)            the
Borrower or any of its Subsidiaries (other than Non-Material Subsidiaries)
shall (i) voluntarily commence any proceeding or file any petition seeking
liquidation, reorganization or other relief under any Federal, state or foreign
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 Borrower or any of its
Subsidiaries (other than Non-Material Subsidiaries) 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
Borrower or any of its Subsidiaries (other than Non-Material Subsidiaries)
shall become unable, admit in writing its inability 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
$80,000,000 (exclusive of judgment amounts fully covered by insurance where the
insurer has admitted liability in respect of such judgment) or $120,000,000
(regardless of insurance coverage) shall be rendered against the Borrower or
any of its Subsidiaries or any combination thereof and the same shall remain
undischarged for a period of 30 consecutive days during which execution shall
not be effectively stayed, or any action shall be legally taken by a judgment creditor
to attach or levy upon any assets of the Borrower or any of its Subsidiaries 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 a Material Adverse Effect;

 

(m)          a
Change in Control shall occur;

 

(n)           any
Insured Subsidiary shall cease accepting deposits on the instruction of any
Federal, state or other regulatory body with authority to give such instruction
other than pursuant to an instruction generally applicable to banks organized
under the jurisdiction of organization of such Insured Subsidiary;

 

(o)           any
Insured Subsidiary shall be required (whether or not the time allowed by the
appropriate Bank Regulatory Authority for the submission of such plan has been
established or elapsed) to submit a capital restoration plan of the type
referred to in 12 U.S.C. § 1831o(b)(2)(C), as amended, re-enacted or redesignated
from time to time, or any Bank Regulatory Authority shall issue a

 

Credit Agreement

 

 

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cease and desist order to or in respect of
the Borrower or any of its Insured Subsidiaries; or

 

(p)           the
Borrower shall Guarantee in writing (voluntarily or otherwise) the capital of
any Insured Subsidiary upon the instruction or request of any Bank Regulatory
Authority;

 

then, and in every such event (other than an event with respect to
the 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,
and at the request of the Required Lenders shall, by notice to the Borrower,
take either or both of the following actions, at the same or different times:
(i) terminate the Commitments available to the Borrower, and thereupon the
Commitments available to the Borrower shall terminate immediately, and (ii)
declare the Loans to the Borrower 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 Borrower 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
the Borrower; and in case of any event with respect to the Borrower described
in clause (h) or (i) of this Article, the Commitments available to the Borrower
shall automatically terminate and the principal of the Loans to the Borrower then
outstanding, together with accrued interest thereon and all fees and other
obligations of the Borrower 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 the Borrower.

 

ARTICLE VIII

 

AGENTS

 

SECTION 8.01 Administrative Agent.

 

(a)           Appointment.
Subject to Section 8.01(f), 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.

 

(b)           Rights
and Powers as Lender. The Person serving as the Administrative Agent
hereunder shall have the same rights and powers in its capacity as a Lender as
any other Lender and may exercise the same as though it were not the Administrative
Agent, and such Person and its affiliates may accept deposits from, lend money
to and generally engage in any kind of business with the Borrower or any Subsidiaries
or other Affiliates thereof as if it were not the Administrative Agent hereunder.

 

Credit Agreement

 

 

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(c)           No
Implied Duties. 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
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 Borrower 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 the 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, (ii) the contents of any certificate, report or other document
delivered hereunder or in connection herewith, (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 other agreement, instrument or document, or (v) the
satisfaction of any condition set forth in Article IV or elsewhere herein,
other than to confirm receipt of items expressly required to be delivered to
the Administrative Agent.

 

(d)           Reliance
Upon Certificates, Etc. 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
reasonably 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 the Borrower), independent accountants
and other experts selected by it, and shall not be liable for any action taken
or not taken by it in accordance with the advice of any such counsel,
accountants or experts.

 

(e)           Performance
Through Sub-Agents. The Administrative Agent may perform any and all 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 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.

 

Credit Agreement

 

 

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(f)            Resignation.
The Administrative Agent may resign at any time by notifying the Lenders and
the Borrower. Upon any such resignation, the Required Lenders shall have the
right, in consultation with the Borrower, to appoint a successor. 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’s resignation shall nonetheless
become effective and (1) the retiring Administrative Agent shall be discharged
from its duties and obligations hereunder and (2) the Required Lenders shall perform
the duties of the Administrative Agent (and all payments and communications provided
to be made by, to or through the Administrative Agent shall instead be made by or
to each Lender directly) until such time as the Required Lenders appoint a
successor agent as provided for above in this paragraph. 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 (or retired) Administrative Agent and the
retiring Administrative Agent shall be discharged from its duties and
obligations hereunder (if not already discharged therefrom as provided above in
this paragraph). The fees payable by the Borrower to a successor Administrative
Agent shall be the same as those payable to its predecessor unless otherwise
agreed between the Borrower and such successor. After the Administrative
Agent’s resignation hereunder, the provisions of this Article and Section 9.03
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.

 

(g)           Credit
Analysis by Lenders. 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.

 

SECTION 8.02  Syndication Agents. The Syndication
Agents named on the cover page of this Agreement, in their capacity as such,
shall have no obligation, responsibility or required performance hereunder and
shall not become liable in any manner to any party hereto. No party hereto
shall have any obligation or liability, or owe any performance, hereunder, to
the Syndication Agents in their capacity as such.

 

ARTICLE IX

 

MISCELLANEOUS

 

SECTION 9.01.  Notices. Except in the case of notices
and other communications expressly permitted to be given by telephone, all
notices and other communications provided for herein shall be in writing and
shall be delivered by hand or

 

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overnight courier service, mailed by certified or registered mail
or sent by telecopy, as follows:

 

(a)           if
to the Borrower, to it at 1201 Third Avenue, WMT0511, Seattle, Washington
98101, Attention of Peter Freilinger (Telecopy No. (206) 554-8655; Telephone
No. (206) 490-2291), with copies to Charles E. Smith, 1201 Third Avenue, WMT1706,
Seattle, Washington 98101 (Telecopy No. (206) 490- 1836; Telephone No. (206)
377-6244) and Bernard L. Russell, Heller Ehrman LLP, 701 Fifth Avenue, Suite
6100, Seattle, Washington 98104 (Telecopy No.

(206) 389- 6217; Telephone No. (206) 389-6238);

 

(b)           if
to the Administrative Agent, to JPMorgan Chase Bank, N.A., 1 Chase Manhattan
Plaza, 8th Floor, New York, New York 10081, Attention of Loan and Agency
Services Group (Telecopy No. (212) 552-5658; Telephone No. (212) 552-7500),
with a copy to JPMorgan Chase Bank, N.A., 1111 Fannin Street, 10th Floor,
Houston, Texas 77002, Attention of Eleanor Fiore (Telecopy No. (713) 750-3523;
Telephone No. (713) 750-2223); and

 

(c)           if
to a Lender (including, if applicable, in its capacity as a Swingline Lender)
to it at its address (or telecopy number) set forth in its Administrative
Questionnaire.

 

Any party hereto may change its address or telecopy number for
notices and other communications hereunder by notice to the other parties
hereto (or, in the case of any such change by a Lender, by notice to the
Borrower and the Administrative Agent). 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 9.02.  Waivers; Amendments.

 

(a)           No
Deemed Waivers; Remedies Cumulative. 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 the Borrower
therefrom shall in any event be effective unless the same shall be permitted by
paragraph (b) of this Section, and then such waiver or consent shall be
effective only in the specific instance and for the purpose for which given.
Without limiting the generality of the foregoing, the making of a 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)           Amendments.
Neither this Agreement nor any provision hereof may be waived, amended or
modified except pursuant to an agreement or agreements in 

 

Credit Agreement

 

 

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writing entered into by the Borrower and the Required Lenders or
by the Borrower and the Administrative Agent with the consent of the Required
Lenders; provided that (x) no such agreement shall

 

(i)            increase
the Commitment of any Lender without the written consent of each affected
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 affected
Lender,

 

(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 affected Lender,

 

(iv)          alter
the manner in which payments or prepayments of principal, interest or other
amounts hereunder shall be applied as among the Lenders or Types or Classes of
Loans, without the written consent of each affected Lender, or

 

(v)           change
any of the provisions of this Section or the definition of the term “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

 

and (y) no such agreement shall amend, modify or otherwise affect
the rights or duties of the Administrative Agent or any Swingline Lender
hereunder without the prior written consent of the Administrative Agent or such
Swingline Lender, as the case may be.

 

For purposes of this Section, the
“scheduled date of payment” of any amount shall refer to the date of payment of
such amount specified in this Agreement, and shall not refer to a date or other
event specified for the prepayment of such amount. In addition, whenever a
waiver, amendment or modification requires the consent of a Lender “affected”
thereby, such waiver, amendment or modification shall, upon consent of such
Lender, become effective as to such Lender whether or not it becomes effective as
to any other Lender, so long as the Required Lenders consent to such waiver, amendment
or modification as provided above.

 

SECTION 9.03.  Expenses; Indemnity; Damage Waiver.

 

(a)           Costs
and Expenses. The Borrower shall pay (i) all reasonable out-of-pocket
expenses incurred by the Administrative Agent and its Affiliates, including the
reasonable fees, charges and disbursements of counsel for the Administrative
Agent, in connection with the syndication of the credit facilities provided for
herein, the 

 

Credit Agreement

 

 

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preparation and administration of this Agreement or any
amendments, modifications or waivers of the provisions hereof (whether or not
the transactions contemplated hereby or thereby shall be consummated) and (ii)
all out-of-pocket expenses incurred by the Administrative Agent or any Lender,
including the fees, charges and disbursements of any counsel for the
Administrative Agent, or any Lender, in connection with the enforcement or
protection of its rights in connection with this Agreement, including its rights
under this Section, or in connection with the Loans made hereunder, including
in connection with any workout, restructuring or negotiations in respect
thereof.

 

(b)           Indemnification
by the Borrower. The Borrower 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 to 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
agreement or instrument contemplated hereby, the performance by the parties
hereto of their respective obligations hereunder 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
Borrower or any of its Subsidiaries, or any Environmental Liability related in
any way to the Borrower 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 expenses resulting from the
gross negligence or wilful misconduct of such Indemnitee.

 

(c)           Third
Party Claims. If a claim by a third party (a “Third-Party Claim”) is
made against an Indemnitee, and if such Indemnitee intends to seek indemnity with
respect thereto under Section 9.03(b), such Indemnitee shall promptly notify
the Borrower of the institution of such claim, action or proceeding and the
Borrower shall thereupon be entitled to participate in the defense thereof and
shall have the right, at its option, to assume the defense thereof including
the employment of counsel (reasonably satisfactory at all times to such
Indemnitee) and payment of expenses. Once the Borrower has assumed the defense
of any such claim, action or proceeding, the Borrower shall no longer be liable
to any such Indemnitee for any expenses subsequently incurred thereby in
connection therewith except to the extent provided for in the next sentence. Such
Indemnitee shall have the right to employ its own counsel, but the fees and expenses
of such counsel shall be for the account of such Indemnitee unless (x) the employment
of such counsel shall have been authorized in writing by the Borrower in connection
with the defense of such claim, action or proceeding, or (y) such Indemnitee concludes
on the basis of advice of counsel that there are legal defenses available to it
which are different from or in addition to those available to the Borrower and
such different or additional defenses conflict therewith or that there are
claims against the Indemnitee which are different to those against the
Borrower. If the Borrower so chooses

 

Credit Agreement

 

 

- 56 -

 

to assume the defense it shall do so promptly and diligently. So
long as the Borrower is reasonably contesting any such claim in good faith, the
Indemnitee shall not pay or settle any such claim without thereby waiving its
right to indemnity therefor by the Borrower. Notwithstanding the foregoing, if
the Borrower does not notify the Indemnitee in writing within 30 days after the
receipt of the Indemnitee’s written notice of a claim of indemnity hereunder
that it elects to undertake the defense thereof, the Indemnitee shall have the right
to contest, settle or compromise the claim but shall not thereby waive any
right to indemnity therefor pursuant to this Agreement.  The Borrower shall not, except with the written
consent of the Indemnitee, enter into any settlement unless (A) there is no
finding or admission of any violation of applicable law, (B) the sole relief
provided is monetary damages that are paid in full by the Borrower, (C) the
Indemnitee shall have no liability with respect to any compromise or settlement
of such Third-Party Claim, and (D) the compromise or settlement provides to the
Indemnitee and each Related Party to the Indemnitee an unconditional release
from all liability with respect to such Third-Party Claim or the facts
underlying such Third-Party Claim. With respect to any Third-Party Claim
subject to indemnification under Section 9.03(b), (i) both the Indemnitee and
the Borrower, as the case may be, shall keep the other party reasonably
informed of the status of such Third-Party Claim and any related proceedings at
all stages thereof, (ii) the parties agree to render to each other such
assistance as they may reasonably require of each other and to cooperate in
good faith with each other in order to ensure the proper and adequate defense
of any Third-Party Claim and (iii) with respect to any Third-Party Claim
subject to indemnification under Section 9.03(b) the parties agree to cooperate
in such a manner as to preserve in full (to the extent reasonably practicable
and permitted by applicable law) the confidentiality of all confidential
information and the attorney-client and work-product privileges, provided
that the Borrower shall pay all expenses incurred by or asserted against any
Indemnitee arising out of, in connection with, or as a result of such
cooperation.

 

(d)           Reimbursement
by Lenders. To the extent that the Borrower fails to pay any amount
required to be paid by it to the Administrative Agent or any Swingline Lender
under paragraph (a) or (b) of this Section, each Lender severally agrees to pay
to the Administrative Agent or such 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 such Swingline Lender in its capacity as such.

 

(e)           Waiver
of Consequential Damages, Etc. To the extent permitted by applicable law,
the Borrower shall not assert, and the 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 agreement or
instrument contemplated hereby, the Transactions, any Loan or the use of the
proceeds thereof. To the extent permitted by applicable law and other than the
claims set forth in Section 9.03(b), no Lender shall assert, and each Lender
hereby waives, any claim against the Borrower or any Related Party of the
Borrower, on any theory of liability, for special,

 

Credit Agreement

 

 

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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 agreement or instrument contemplated hereby, the Transactions,
any Loan or the use of the proceeds thereof.

 

(f)            Payments.
All amounts due under this Section shall be payable not later than ten days
after written demand therefor.

 

SECTION 9.04. Successors and Assigns.

 

(a)           Assignments
Generally. The provisions of this Agreement shall be binding upon and inure
to the benefit of the parties hereto 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 without the prior
written consent of each Lender (and any attempted assignment or transfer by the
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 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)           Assignments
by Lenders.

 

(i)            Assignments
Generally. Subject to the conditions set forth in clause (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 or delayed) of:

 

(A)          the
Borrower, provided that no consent of the Borrower 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:

 

(B)           the
Administrative Agent, provided that no consent of the Administrative Agent
shall be required for an assignment to a Lender, an Affiliate of a Lender or,
of any Commitment to an assignee that is a Lender with a Commitment immediately
prior to giving effect to such assignment; and

 

(C)           each
Swingline Lender.

 

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

 

(A)          except
in the case of an assignment to a Lender, an Affiliate of a Lender or an
Approved Fund or an assignment of the entire remaining amount of the assigning
Lender’s Commitment or Loans of any Class, the amount of the

 

Credit Agreement

 

 

- 58 -

 

Commitment or Loans of the assigning
Lender subject to each such assignment (determined as of the date the
Assignment and Assumption with respect to such assignment is delivered to the
Administrative Agent) shall not be less than $5,000,000 unless each of the
Borrower and the Administrative Agent otherwise consent, provided that
no consent of the Borrower shall be required if an Event of Default has
occurred and is continuing;

 

(B)           each
partial assignment of any Class of Commitments or Loans shall be made as an
assignment of a proportionate part of all the assigning Lender’s rights and
obligations under this Agreement in respect of such Class of Commitments and
Loans, except that this subclause (B) shall not apply to rights in respect of
outstanding Competitive Loans;

 

(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 already be a Lender, shall deliver to the Administrative
Agent an Administrative Questionnaire; and

 

(E)           in
the case of an assignment to an Approved Fund, the assigning Lender shall
retain the sole right to approve any amendment, modification or waiver of any
provision of this Agreement, provided that the Assignment and Assumption
between such Lender and such Approved Fund may provide that such Lender will
not, without the consent of such Approved Fund, agree to any amendment,
modification or waiver described in the first proviso to Section 9.02(b) that
affects such Approved Fund.

 

(iii)          Effectiveness
of Assignments. Subject to acceptance and recording thereof pursuant to
paragraph (c) of this Section, from and after the effective date specified in
each 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 Sections
2.14, 2.15, 2.16 and 9.03). Any assignment or transfer by a Lender of rights or
obligations under this Agreement that does not comply with this Section 9.04
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 paragraph (e)
of this Section.

 

(c)           Maintenance
of Register by the Administrative Agent. The Administrative Agent, acting
for this purpose as an agent of the Borrower, shall maintain at one of its
offices in New York City a copy of each Assignment and Assumption delivered to
it and a register for the recordation of the names and addresses of the

 

Credit Agreement

 

 

- 59 -

 

Lenders, and the Commitments 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 Borrower, the
Administrative Agent and the Lenders may treat each Person whose name is
recorded in the.Register pursuant to the terms hereof as a Lender hereunder for
all purposes of this Agreement, notwithstanding notice to the contrary. The
Register shall be available for inspection by the Borrower and any Lender, at
any reasonable time and from time to time upon reasonable prior notice.

 

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

 

(e)           Participations.
Any Lender may, without the consent of the Borrower, the Administrative Agent
or any 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 Commitments
and the Loans owing to it); provided that (i) such Lender’s obligations
under this Agreement shall remain unchanged, (ii) such Lender shall remain
solely responsible to the other parties hereto for the performance of such
obligations and (iii) the Borrower, the Administrative Agent 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
9.02(b) that affects such Participant. Subject to paragraph (f) of this
Section, the Borrower agrees that each Participant shall be entitled to the
benefits of Sections 2.14, 2.15 and 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 9.08 as though it were a Lender, provided
such Participant agrees to be subject to Section 2.17(d) as though it were a
Lender hereunder. 

 

(f)            Limitations
on Rights of Participants. A Participant shall not be entitled to receive
any greater payment under Section 2.14, 2.15 or 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 Borrower’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 Borrower is notified of the participation sold to such
Participant and such Participant

 

Credit Agreement

 

 

- 60 -

 

agrees, for the benefit of the Borrower, to comply with Section
2.16(e) as though it were a Lender.

 

(g)           Certain
Pledges. 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.

 

(h)           No
Assignments to the Borrower or Affiliates. Anything in this Section to the
contrary notwithstanding, no Lender may assign or participate any interest in
any Loan held by it hereunder to the Borrower or any of its Affiliates or
Subsidiaries without the prior consent of each Lender.

 

SECTION 9.05. Survival. All
covenants, agreements, representations and warranties made by the Borrower
herein and in the certificates or other instruments delivered in connection
with or pursuant to this Agreement shall be considered to have been relied upon
by the other parties hereto and shall survive the execution and delivery of
this Agreement and the making of any 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 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 Sections 2.14, 2.15,
2.16 and 9.03 and Article VIII 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 9.06. 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
between and 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, and thereafter shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns.
Delivery of an executed counterpart of a signature page to this Agreement by
telecopy shall be effective as delivery of a manually executed counterpart of
this Agreement.

 

Credit Agreement

 

 

- 61 -

 

SECTION 9.07. 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 9.08. 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 the account of the Borrower
against any of and all the obligations of the Borrower now or hereafter existing
under this Agreement held by such Lender, irrespective of whether or not such
Lender shall have made any demand under this Agreement and although such
obligations may be unmatured. 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 9.09. Governing Law;
Jurisdiction; Etc.

 

(a)           Governing
Law. This Agreement shall be construed in accordance with and governed by
the law of the State of New York.

 

(b)           Submission
to Jurisdiction. The 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 the Borrower or its properties in the courts of any jurisdiction.

 

(c)           Waiver
of Venue. The 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.

 

Credit Agreement

 

 

- 62 -

 

(d)           Service
of Process. Each party to this Agreement irrevocably consents to service of
process in the manner provided for notices in Section 9.01. 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 9.10. WAIVER OF JURY TRIAL.
EACH PARTY HERETO HEREBY WANES, 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
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 9.11. 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 9.12. Treatment of Certain
Information; Confidentiality.

 

(a)           Treatment
of Certain Information. The Borrower acknowledges that from time to time
financial advisory, investment banking and other services may be offered or
provided to the Borrower or one or more of its Subsidiaries (in connection with
this Agreement or otherwise) by any Lender or by one or more subsidiaries or
affiliates of such Lender and the Borrower hereby authorizes each Lender to
share any information delivered to such Lender by the Borrower and its
Subsidiaries pursuant to this Agreement, or in connection with the decision of
such Lender to enter into this Agreement, to any such subsidiary or affiliate,
it being understood that any such subsidiary or affiliate receiving such
information shall be bound by the provisions of paragraph (b) of this Section
as if it were a Lender hereunder. Such authorization shall survive the
repayment of the Loans, the expiration or termination of the Commitments or the
termination of this Agreement or any provision hereof.

 

(b)           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 (i) 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), (ii) to the extent requested by any regulatory
authority, (iii) to the extent required by applicable laws or regulations or by
any subpoena or similar legal process, (iv) to any other party to

 

Credit Agreement

 

 

- 63 -

 

this Agreement, (v) 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, (vi) subject to an agreement containing
provisions substantially the same as those of this paragraph, to any assignee
of or Participant in, or any prospective assignee of or Participant in, any of
its rights or obligations under this Agreement, (vii) with the consent of the
Borrower or (viii) to the extent such Information (A) becomes publicly available
other than as a result of a breach of this paragraph or (B) becomes available
to the Administrative Agent or any Lender on a nonconfidential basis from a
source other than the Borrower. In the event that the Administrative Agent or a
Lender receives a request to disclose any information pursuant to clause (iii)
of the previous sentence, the party receiving such request agrees, to the
extent reasonably practicable and permitted by applicable law (a) to promptly
notify the Borrower of such request in writing, (b) to consult with the
Borrower on the advisability of taking steps to resist or narrow such request,
and (c) if, based on the advice of counsel to the Administrative Agent or the Lender,
as the case may be, disclosure is required, to notify the Borrower and
cooperate reasonably with the Borrower in any attempt that the Borrower may
make to obtain an order or other reliable assurance that confidential treatment
will be accorded to designated portions of such information, provided
that the Borrower shall pay all expenses incurred by or asserted against the
Administrative Agent or such Lender, as the case may be, arising out of, in
connection with, or as a result of such cooperation. Notwithstanding the
foregoing, if, based on the advice of counsel to the Administrative Agent or
the Lender, as the case may be, disclosure is required in the circumstances described
above, disclosure may be made, subject to compliance with the previous sentence.
For the purposes of this paragraph, “Information” means all information received
from the Borrower relating to the Borrower 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 Borrower; provided that, in the case of
information received from the Borrower after the date hereof, such information
is clearly identified at the time of delivery as confidential. Any Person
required to maintain the confidentiality of Information as provided in this
Section shall be considered to have complied with its obligation to do so if
such Person has exercised the same degree of care to maintain the
confidentiality of such Information as such Person would accord to its own
confidential information.

 

SECTION 9.13. USA PATRIOT Act. Each
Lender hereby notifies the Borrower that pursuant to the requirements of the
USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October
26,2001)), it is required to obtain, verify and record information that
identifies the Borrower, which information includes the name and address of the
Borrower and other information that will allow such Lender to identify the Borrower
in accordance with said Act.

 

Credit Agreement

 

 

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.

 

	
   

  	
  WASHINGTON MUTUAL, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Patricia Schulte

  	
   

  
	
   

  	
  Name:

  	
  Patricia Schulte

  
	
   

  	
  Title:

  	
  Senior Vice President

  
	
   

  	
   

  
	
   

  	
  U.S. Federal Tax Identification Number for

  
	
   

  	
  the Borrower:

  
	
   

  	
   

  
	
   

  	
  91-1653725

  
	
   

  	
   

  
	
   

  	
  Address for the Borrower:

  
	
   

  	
   

  
	
   

  	
  Washington Mutual, Inc.

  
	
   

  	
  1201 Third Avenue

  
	
   

  	
  WMT0511

  
	
   

  	
  Seattle, WA 98101

  
						

 

 

	
   

  	
  LENDERS

  
	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE BANK, N.A.,

  
	
   

  	
  individually and as a
  Swingline Lender

  
	
   

  	
  and as Administrative
  Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Dwight Seacren

  	
   

  
	
   

  	
  Name:

  	
  Dwight Seacren

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Carolyn Warren

  	
   

  
	
   

  	
  Name:

  	
  Carolyn Warren

  
	
   

  	
  Title:

  	
  Senior Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BARCLAYS BANK PLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Alison A. McGuigan

  	
   

  
	
   

  	
  Name:

  	
  Alison A. McGuigan

  
	
   

  	
  Title:

  	
  Associate Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CITIBANK, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Yoko Otani

  	
   

  
	
   

  	
  Name:

  	
  Yoko Otani

  
	
   

  	
  Title:

  	
  Managing Director

  
						

 

 

	
   

  	
  HSBC BANK USA, NATIONAL

  
	
   

  	
  ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert V. Masi

  	
   

  
	
   

  	
  Name:

  	
  Robert V. Masi

  
	
   

  	
  Title:

  	
  Senior Vice President #12751

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ABN AMRO BANK N.V.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sandra R. Bolek

  	
   

  
	
   

  	
  Name:

  	
  Sandra R. Bolek

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Bryan Manning

  	
   

  
	
   

  	
  Name:

  	
  Bryan Manning

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BEAR STEARNS CORPORATE

  
	
   

  	
  LENDING INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Keith Barnish

  	
   

  
	
   

  	
  Name:

  	
  Keith Barnish

  
	
   

  	
  Title:

  	
  Executive Vice President

  
							

 

 

	
   

  	
  CREDIT SUISSE, CAYMAN ISLANDS

  
	
   

  	
  BRANCH

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jay Chall

  	
   

  
	
   

  	
  Name:

  	
  Jay Chall

  
	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Karim Blasetti

  	
   

  
	
   

  	
  Name:

  	
  Karim Blasetti

  
	
   

  	
  Title:

  	
  Associate

  
	
   

  	
   

  
	
   

  	
  DEUTSCHE BANK AG NEW YORK

  
	
   

  	
  BRANCH

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gayma Z. Shivnarain

  	
   

  
	
   

  	
  Name:

  	
  Gayma Z. Shivnarain

  
	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kathleen Bowers

  	
   

  
	
   

  	
  Name:

  	
  Kathleen Bowers

  
	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  LEHMAN BROTHERS BANK, FSB

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Janine M. Shugan

  	
   

  
	
   

  	
  Name:

  	
  Janine M. Shugan

  
	
   

  	
  Title:

  	
  Authorized Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MERRILL LYNCH BANK USA

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Louis Adler

  	
   

  
	
   

  	
  Name:

  	
  Louis Adler

  
	
   

  	
  Title:

  	
  Director

  
							

 

 

	
   

  	
  MORGAN STANLEY BANK

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Daniel Twenge

  	
   

  
	
   

  	
  Name:

  	
  Daniel Twenge

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Christopher Thompson

  	
   

  
	
   

  	
  Name:

  	
  Christopher Thompson

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE ROYAL BANK OF SCOTLAND PLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: Greenwich Capital Markets, Inc., as
  agent

  
	
   

  	
  for the The Royal Bank of Scotland plc

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Diane Ferguson

  	
   

  
	
   

  	
  Name:

  	
  Diane Ferguson

  
	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  UBS LOAN FINANCE LLC

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Wilfred V. Saint

  	
   

  
	
   

  	
  Name:

  	
  Wilfred V. Saint

  
	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard L. Tavrow

  	
   

  
	
   

  	
  Name:

  	
  Richard L. Tavrow

  
	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
  WACHOVIA BANK, NATIONAL

  	
   

  
	
   

  	
  ASSOCIATION

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Genevieve Piche

  	
   

  
	
   

  	
  Name:

  	
  Genevieve Piche

  
	
   

  	
  Title:

  	
  Associate-International Credit Products

  
									

 

 

	
   

  	
  WELLS FARGO BANK, NATIONAL

  	
   

  
	
   

  	
  ASSOCIATION

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Azim Rajan

  	
   

  
	
   

  	
  Name:

  	
  Azim Rajan

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  WILLIAMS STREET COMMITMENT

  
	
   

  	
  CORPORATION (Recourse only to William

  
	
   

  	
  Street Commitment Corporation)

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Liz Beshel

  	
   

  
	
   

  	
  Name:

  	
  Liz Beshel

  
	
   

  	
  Title:

  	
  Authorized Signatory

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}]]