Document:

d1055018_ex4-4.htm

    
      Exhibit 4.4

    

    ____________________________________________________________________________________________________________

     

    
 

    

    

    

    

    
      

    

    

    

    

    OCEANFREIGHT
INC.

    

    FORM
OF

    

    SUBORDINATED
INDENTURE

    

    Dated as
of
[                                ],
200[ ]

    

    

    

    

    [                      ]

    

    Trustee

     

     

     

    ____________________________________________________________________________________________________________

    

    

    

    
      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    TABLE OF
CONTENTS

    PAGE

    

    
       

      
        	 
      	 
      
	
                ARTICLE
      I DEFINITIONS AND INCORPORATION BY REFERENCE

              	
                1

              
	
                SECTION
      1.01.

              	
                Definitions.

              	
                1

              
	
                SECTION
      1.02.

              	
                Other
      Definitions.

              	
                5

              
	
                SECTION
      1.03.

              	
                Incorporation
      by Reference of Trust Indenture Act.

              	
                5

              
	
                SECTION
      1.04.

              	
                Rules
      of Construction.

              	
                6

              
	
                ARTICLE
      II THE SECURITIES

              	
                6

              
	
                SECTION
      2.01.

              	
                Issuable
      in Series.

              	
                6

              
	
                SECTION
      2.02.

              	
                Establishment
      of Terms of Series of Securities.

              	
                7

              
	
                SECTION
      2.03.

              	
                Execution
      and Authentication.

              	
                9

              
	
                SECTION
      2.04.

              	
                Registrar
      and Paying Agent.

              	
                10

              
	
                SECTION
      2.05.

              	
                Paying
      Agent to Hold Money in Trust.

              	
                10

              
	
                SECTION
      2.06.

              	
                Securityholder
      Lists.

              	
                11

              
	
                SECTION
      2.07.

              	
                Transfer
      and Exchange.

              	
                11

              
	
                SECTION
      2.08.

              	
                Mutilated,
      Destroyed, Lost and Stolen Securities.

              	
                12

              
	
                SECTION
      2.09.

              	
                Outstanding
      Securities.

              	
                12

              
	
                SECTION
      2.10.

              	
                Treasury
      Securities.

              	
                13

              
	
                SECTION
      2.11.

              	
                Temporary
      Securities.

              	
                13

              
	
                SECTION
      2.12.

              	
                Cancellation.

              	
                13

              
	
                SECTION
      2.13.

              	
                Defaulted
      Interest.

              	
                13

              
	
                SECTION
      2.14.

              	
                Global
      Securities.

              	
                14

              
	
                SECTION
      2.15.

              	
                CUSIP
      Numbers.

              	
                15

              
	
                ARTICLE
      III REDEMPTION

              	
                15

              
	
                SECTION
      3.01.

              	
                Notice
      to Trustee.

              	
                15

              
	
                SECTION
      3.02.

              	
                Selection
      of Securities to be Redeemed.

              	
                16

              
	
                SECTION
      3.03.

              	
                Notice
      of Redemption.

              	
                16

              
	
                SECTION
      3.04.

              	
                Effect
      of Notice of Redemption.

              	
                16

              
	
                SECTION
      3.05.

              	
                Deposit
      of Redemption Price.

              	
                17

              
	
                SECTION
      3.06.

              	
                Securities
      Redeemed in Part.

              	
                17

              
	
                ARTICLE
      IV COVENANTS

              	
                17

              
	
                SECTION
      4.01.

              	
                Payment
      of Principal and Interest.

              	
                17

              
	
                SECTION
      4.02.

              	
                SEC
      Reports.

              	
                18

              
	
                SECTION
      4.03.

              	
                Compliance
      Certificate.

              	
                18

              
	
                SECTION
      4.04.

              	
                Stay,
      Extension and Usury Laws.

              	
                19

              
	
                SECTION
      4.05.

              	
                Corporate
      Existence.

              	
                19

              
	
                SECTION
      4.06.

              	
                Taxes.

              	
                19

              
	
                SECTION
      4.07.

              	
                Additional
      Interest Notice.

              	
                19

              
	
                SECTION
      4.08.

              	
                Further
      Instruments and Acts.

              	
                19

              

      

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                ARTICLE
      V SUCCESSORS

              	
                20

              
	
                SECTION
      5.01.

              	
                When
      Company May Merge, Etc.

              	
                20

              
	
                SECTION
      5.02.

              	
                Successor
      Corporation Substituted.

              	
                20

              
	
                ARTICLE
      VI DEFAULTS AND REMEDIES

              	
                21

              
	
                SECTION
      6.01.

              	
                Events
      of Default.

              	
                21

              
	
                SECTION
      6.02.

              	
                Acceleration
      of Maturity; Rescission and Annulment.

              	
                24

              
	
                SECTION
      6.03.

              	
                Collection
      of Indebtedness and Suits for Enforcement by Trustee.

              	
                24

              
	
                SECTION
      6.04.

              	
                Trustee
      May File Proofs of Claim.

              	
                24

              
	
                SECTION
      6.05.

              	
                Trustee
      May Enforce Claims Without Possession of Securities.

              	
                24

              
	
                SECTION
      6.06.

              	
                Application
      of Money Collected.

              	
                25

              
	
                SECTION
      6.07.

              	
                Limitation
      on Suits.

              	
                25

              
	
                SECTION
      6.08.

              	
                Unconditional
      Right of Holders to Receive Principal and Interest.

              	
                26

              
	
                SECTION
      6.09.

              	
                Restoration
      of Rights and Remedies.

              	
                26

              
	
                SECTION
      6.10.

              	
                Rights
      and Remedies Cumulative.

              	
                26

              
	
                SECTION
      6.11.

              	
                Delay
      or Omission Not Waiver.

              	
                26

              
	
                SECTION
      6.12.

              	
                Control
      by Holders.

              	
                26

              
	
                SECTION
      6.13.

              	
                Waiver
      of Past Defaults.

              	
                27

              
	
                SECTION
      6.14.

              	
                Undertaking
      for Costs.

              	
                27

              
	
                ARTICLE
      VII TRUSTEE

              	
                27

              
	
                SECTION
      7.01.

              	
                Duties
      of Trustee.

              	
                27

              
	
                SECTION
      7.02.

              	
                Rights
      of Trustee.

              	
                29

              
	
                SECTION
      7.03.

              	
                Individual
      Rights of Trustee.

              	
                29

              
	
                SECTION
      7.04.

              	
                Trustee’s
      Disclaimer.

              	
                29

              
	
                SECTION
      7.05.

              	
                Notice
      of Defaults.

              	
                29

              
	
                SECTION
      7.06.

              	
                Reports
      by Trustee to Holders.

              	
                30

              
	
                SECTION
      7.07.

              	
                Compensation
      and Indemnity.

              	
                30

              
	
                SECTION
      7.08.

              	
                Replacement
      of Trustee.

              	
                31

              
	
                SECTION
      7.09.

              	
                Successor
      Trustee by Merger, etc.

              	
                32

              
	
                SECTION
      7.10.

              	
                Eligibility;
      Disqualification.

              	
                32

              
	
                SECTION
      7.11.

              	
                Preferential
      Collection of Claims Against Company.

              	
                32

              

      

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                ARTICLE
      VIII SATISFACTION AND DISCHARGE; DEFEASANCE

              	
                32

              
	
                SECTION
      8.01.

              	
                Satisfaction
      and Discharge of Indenture.

              	
                32

              
	
                SECTION
      8.02.

              	
                Application
      of Trust Funds; Indemnification.

              	
                33

              
	
                SECTION
      8.03.

              	
                Legal
      Defeasance of Securities of any Series.

              	
                34

              
	
                SECTION
      8.04.

              	
                Covenant
      Defeasance.

              	
                35

              
	
                SECTION
      8.05.

              	
                Repayment
      to Company.

              	
                36

              
	
                ARTICLE
      IX AMENDMENTS AND WAIVERS

              	
                37

              
	
                SECTION
      9.01.

              	
                Without
      Consent of Holders.

              	
                37

              
	
                SECTION
      9.02.

              	
                With
      Consent of Holders.

              	
                37

              
	
                SECTION
      9.03.

              	
                Limitations.

              	
                38

              
	
                SECTION
      9.04.

              	
                Compliance
      with Trust Indenture Act.

              	
                38

              
	
                SECTION
      9.05.

              	
                Revocation
      and Effect of Consents.

              	
                38

              
	
                SECTION
      9.06.

              	
                Notation
      on or Exchange of Securities.

              	
                38

              
	
                SECTION
      9.07.

              	
                Trustee
      Protected.

              	
                38

              
	
                SECTION
      9.08.

              	
                Effect
      of Supplemental Indenture.

              	
                40

              
	
                ARTICLE
      X MISCELLANEOUS

              	
                40

              
	
                SECTION
      10.01.

              	
                Trust
      Indenture Act Controls.

              	
                40

              
	
                SECTION
      10.02.

              	
                Notices.

              	
                40

              
	
                SECTION
      10.03.

              	
                Communication
      by Holders with Other Holders.

              	
                41

              
	
                SECTION
      10.04.

              	
                Certificate
      and Opinion as to Conditions Precedent.

              	
                41

              
	
                SECTION
      10.05.

              	
                Statements
      Required in Certificate or Opinion.

              	
                42

              
	
                SECTION
      10.06.

              	
                Record
      Date for Vote or Consent of Holders.

              	
                42

              
	
                SECTION
      10.07.

              	
                Rules
      by Trustee and Agents.

              	
                41

              
	
                SECTION
      10.08.

              	
                Legal
      Holidays.

              	
                42

              
	
                SECTION
      10.09.

              	
                No
      Recourse Against Others.

              	
                43

              
	
                SECTION
      10.10.

              	
                Counterparts.

              	
                43

              
	
                SECTION
      10.11.

              	
                Governing
      Laws and Submission to Jurisdiction.

              	
                43

              
	
                SECTION
      10.12.

              	
                No
      Adverse Interpretation of Other Agreements.

              	
                43

              
	
                SECTION
      10.13.

              	
                Successors.

              	
                44

              
	
                SECTION
      10.14.

              	
                Severability.

              	
                44

              
	
                SECTION
      10.15.

              	
                Table
      of Contents, Headings, Etc.

              	
                44

              
	
                SECTION
      10.16.

              	
                Securities
      in a Foreign Currency or in ECU.

              	
                44

              
	
                SECTION
      10.17.

              	
                Judgment
      Currency.

              	
                45

              
	
                SECTION
      10.18.

              	
                Compliance
      with Applicable Anti-Terrorism and Money Laundering
      Regulations.

              	
                45

              

      

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                ARTICLE
      XI SINKING FUNDS

              	
                46

              
	
                SECTION
      11.01.

              	
                Applicability
      of Article.

              	
                46

              
	
                SECTION
      11.02.

              	
                Satisfaction
      of Sinking Fund Payments with Securities.

              	
                46

              
	
                SECTION
      11.03.

              	
                Redemption
      of Securities for Sinking Fund.

              	
                47

              

      

       

       

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Reconciliation
and tie between Trust Indenture Act of 1939 and Indenture,

    Dated as
of
[                                ],
200[ ]

    

    
      	
              Section
      310(a)(1)

            	
              7.10

            
	
              (a)(2)

            	
              7.10

            
	
              (a)(3)

            	
              Not
      Applicable

            
	
              (a)(4)

            	
              Not
      Applicable

            
	
              (a)(5)

            	
              7.10

            
	
              (b)

            	
              7.10

            
	
              (c)

            	
              Not
      Applicable

            
	
              Section
      311(a)

            	
              7.11

            
	
              (b)

            	
              7.11

            
	
              (c)

            	
              Not
      Applicable

            
	
              Section
      312(a)

            	
              2.06

            
	
              (b)

            	
              10.03

            
	
              (c)

            	
              10.03

            
	
              Section
      313(a)

            	
              7.06

            
	
              (b)(1)

            	
              7.06

            
	
              (b)(2)

            	
              7.06

            
	
              (c)(1)

            	
              7.06

            
	
              (d)

            	
              7.06

            
	
              Section
      314(a)

            	
              4.02,
      10.05

            
	
              (b)

            	
              Not
      Applicable

            
	
              (c)(1)

            	
              10.04

            
	
              (c)(2)

            	
              10.04

            
	
              (c)(3)

            	
              Not
      Applicable

            
	
              (d)

            	
              Not
      Applicable

            
	
              (e)

            	
              10.05

            
	
              (f)

            	
              Not
      Applicable

            
	
              Section
      315(a)

            	
              7.01

            
	
              (b)

            	
              7.05

            
	
              (c)

            	
              7.01

            
	
              (d)

            	
              7.01

            
	
              (e)

            	
              6.14

            
	
              Section
      316(a)(1)(A)

            	
              6.12

            
	
              (a)(1)(B)

            	
              6.13

            
	
              (a)(2)

            	
              Not
      Applicable

            
	
              (b)

            	
              6.13

            
	
              (c)

            	
              10.06

            
	
              Section
      317(a)(1)

            	
              6.03

            
	
              (a)(2)

            	
              6.04

            
	
              (b)

            	
              2.05

            
	
              Section
      318(a)

            	
              10.01

            

    

    

    Note:  This
reconciliation and tie shall not, for any purpose, be deemed to be part of the
Indenture.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Indenture
dated as of
[                                                      ],
200[ ] between OceanFreight Inc., a company organized under the laws of the
Republic of the Marshall
Islands (the "Company") and [ ] (the
"Trustee").

    

    Each
party agrees as follows for the benefit of the other party and for the equal and
ratable benefit of the Holders of the Securities issued under this
Indenture.

    

    ARTICLE
I

    

    DEFINITIONS
AND INCORPORATION BY REFERENCE

    

    SECTION
1.01.    Definitions.

    

    "Additional Amounts" means any
additional amounts which are required hereby or by any Security, under
circumstances specified herein or therein, to be paid by the Company in respect
of certain taxes imposed on Holders specified therein and which are owing to
such Holders.

    

    "Affiliate" of any specified
person means any other person directly or indirectly controlling or controlled
by or under direct or indirect common control with such specified
person.  For the purposes of this definition, "control" (including,
with correlative meanings, the terms "controlled by" and "under common control
with"), as used with respect to any person, shall mean the possession, directly
or indirectly, of the power to direct or cause the direction of the management
or policies of such person, whether through the ownership of voting securities
or by agreement or otherwise.

    

    "Agent" means any Registrar or
Paying Agent.

    

    "Bankruptcy Law" means Title 11
of the United States Code (or any successor thereto) or any similar federal or
state law for the relief of debtors.

    

    "Board of Directors" means the
board of directors of the Company or any duly authorized committee
thereof.

    

    "Board Resolution" means a copy
of a resolution certified by the Secretary or an Assistant Secretary of the
Company to have been adopted by the Board of Directors or pursuant to
authorization by the Board of Directors and to be in full force and effect on
the date of the certificate and delivered to the Trustee.

    

    "Business Day" means any day
other than a (x) Saturday, (y) Sunday or (z) day on which state or federally
chartered banking institutions in New York,
New York are not required to be open.

    

    "Capital Stock" of any Person
means any and all shares, interests, rights to purchase, warrants, options,
participations or other equivalents of or interests in (however designated)
equity of such Person, but excluding any debt securities convertible into such
equity.

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    "Certificated Securities" means
Securities in the form of physical, certificated Securities in registered
form.

    

    "Company" means the party named
as such above until a successor replaces it in accordance with the terms of this
Indenture and thereafter means the successor.

    

    "Company Order" means a written
order signed in the name of the Company by two Officers, one of whom must be the
Company's principal executive officer, principal financial officer or principal
accounting officer.

    

    "Company Request" means a
written request signed in the name of the Company by its Chairman of the Board,
a President or a Vice President, and by its Chief Financial Officer, its
Secretary or an Assistant Secretary, and delivered to the Trustee.

    

    "Corporate Trust Office" means
the office of the Trustee at which at any particular time its corporate trust
business shall be principally administered which office at the date of the
execution of this Indenture is [ ], Attention: [ ], or at such
other address as the Trustee may designate from time to time.

    

    "Custodian" means any receiver,
trustee, assignee, liquidator, sequestrator or similar official under any
Bankruptcy Law.

    

    "Default" or "default" means
any event which is, or after notice or passage of time or both would be, an
Event of Default.

    

    "Default Rate" means the
default rate of interest specified in the Securities.

    

    "Depository" means, with
respect to the Securities of any Series issuable or issued in whole or in part
in the form of one or more Global Securities, the person designated as
Depository for such Series by the Company, which Depository shall be a clearing
agency registered under the Exchange Act; and if at any time there is more than
one such person, "Depository" as used with respect to the Securities of any
Series shall mean the Depository with respect to the Securities of such
Series.

    

    "Discount Security" means any
Security that provides for an amount less than the stated principal amount
thereof to be due and payable upon declaration of acceleration of the maturity
thereof pursuant to Section 6.02.

    

    "Dollars" means the currency of
The United States of America.

    

    "ECU" means the European
Currency Unit as determined by the Commission of the European
Union.

    

    "Exchange Act" means the
Securities Exchange Act of 1934, as amended.

    

    "Foreign Currency" means any
currency or currency unit issued by a government other than the government of
The United States of America.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    "Foreign Government
Obligations" means with respect to Securities of any Series that are
denominated in a Foreign Currency, (i) direct obligations of the government that
issued or caused to be issued such currency for the payment of which obligations
its full faith and credit is pledged or (ii) obligations of a person controlled
or supervised by or acting as an agency or instrumentality of such government
the timely payment of which is unconditionally guaranteed as a full faith and
credit obligation by such government, which, in either case under clauses (i) or
(ii), are not callable or redeemable at the option of the issuer
thereof.

    

    "Global Security" or "Global Securities" means a
Security or Securities, as the case may be, in the form established pursuant to
Section 2.02 evidencing all or part of a Series of Securities, issued to the
Depository for such Series or its nominee, and registered in the name of such
Depository or nominee.

    

    "Holder" or "Securityholder" means a person
in whose name a Security is registered.

    

    "Indenture" means this
Indenture as amended and supplemented from time to time and shall include the
form and terms of particular Series of Securities established as contemplated
hereunder.

    

    "Interest," in respect of the
Securities, unless the context otherwise requires, refers to interest payable on
the Securities, including any additional interest that may become payable
pursuant to Section 6.02(b).

    

    "Maturity," when used with
respect to any Security or installment of principal thereof, means the date on
which the principal of such Security or such installment of principal becomes
due and payable as therein or herein provided, whether at the Stated Maturity or
by declaration of acceleration, call for redemption, notice of option to elect
repayment or otherwise.

    

    "Officer" means the Chairman of
the Board, the President, any Vice-President, the Treasurer, the Secretary, any
Assistant Treasurer or any Assistant Secretary of the Company.

    

    "Officers' Certificate" means a
certificate signed by two Officers, one of whom must be the Company's principal
executive officer, principal financial officer or principal accounting
officer.

    

    "Opinion of Counsel" means a
written opinion of legal counsel who is, and which opinion is, acceptable to the
Trustee and its counsel.  Such legal counsel may be an employee of or
counsel to the Company or the Trustee.

    

    "Person" means any individual,
corporation, partnership, joint venture, association, limited liability company,
joint-stock company, trust, unincorporated organization or government or any
agency or political subdivision thereof.

    

    "Principal" or "principal" of a Security means
the principal of the Security plus, when appropriate, the premium, if any, on,
and any Additional Amounts in respect of, the Security.

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    "Responsible Officer" means any
officer of the Trustee in its Corporate Trust Office and also means, any vice
president, managing director, director, associate, assistant vice president, or
any other officer of the Trustee customarily performing functions similar to
those performed by any of the above designated officers and also, with respect
to a particular corporate trust matter, any other officer to whom any corporate
trust matter is referred because of his or her knowledge of and familiarity with
a particular subject.

    

    "SEC" means the Securities and
Exchange Commission.

    

    "Security" or "Securities" means the
debentures, notes or other debt instruments of the Company of any Series
authenticated and delivered under this Indenture.

    

    "Series" or "Series of Securities" means
each series of debentures, notes or other debt instruments of the Company
created pursuant to Sections 2.01 and 2.02 hereof.

    

    "Stated Maturity" when used
with respect to any Security or any installment of principal thereof or interest
thereon, means the date specified in such Security as the fixed date on which
the principal of such Security or such installment of principal or interest is
due and payable.

    

    "Subordinated Indebtedness"
means any indebtedness which is expressly subordinated to the indebtedness
evidenced by Securities.

    

    "Subsidiary" means, in respect
of any Person, any corporation, association, partnership or other business
entity of which more than 50% of the total voting power of shares of Capital
Stock or other interests (including partnership interests) entitled (without
regard to the occurrence of any contingency) to vote in the election of
directors, managers, general partners or trustees thereof is at the time owned
or controlled, directly or indirectly, by (i) such Person; (ii) such Person and
one or more Subsidiaries of such Person; or (iii) one or more Subsidiaries of
such Person.

    

    "TIA" means the Trust Indenture
Act of 1939 (15 U.S. Code Sections 77aaa-77bbbb) as in effect on the date of
this Indenture; provided, however, that in the event the Trust Indenture Act of
1939 is amended after such date, "TIA" means, to the extent required by any such
amendment, the Trust Indenture Act as so amended.

    

    "Trustee" means the person
named as the "Trustee" in the first paragraph of this instrument until a
successor Trustee shall have become such pursuant to the applicable provisions
of this Indenture, and thereafter "Trustee" shall mean or include each person
who is then a Trustee hereunder, and if at any time there is more than one such
person, "Trustee" as used with respect to the Securities of any Series shall
mean the Trustee with respect to Securities of that Series.

    

    "U.S. Government Obligations"
means securities which are (i) direct obligations of The United States of
America for the payment of which its full faith and credit is pledged or

    (ii)
obligations of a person controlled or supervised by and acting as an agency or
instrumentality of The United States of America the payment of which is
unconditionally guaranteed as a full faith and credit obligation by The United
States of America, and which in the case of (i) and (ii) are not callable or
redeemable at the option of the issuer thereof, and shall also include a
depository receipt issued by a bank or trust company as custodian with respect
to any such U.S. Government Obligation or a specific payment of interest on or
principal of any such U.S. Government Obligation held by such custodian for the
account of the holder of a depository receipt, provided that (except as required
by law) such custodian is not authorized to make any deduction from the amount
payable to the holder of such depository receipt from any amount received by the
custodian in respect of the U.S. Government Obligation evidenced by such
depository receipt.

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    SECTION
1.02.    Other
Definitions.

    

    
      	
               

              TERM

            	
               

              DEFINED
      IN SECTION

            
	
              "Applicable
      Law"

            	
              10.18

            
	
              "Event
      of Default"

            	
              6.01

            
	
              "Instrument"

            	
              6.01

            
	
              "Journal"

            	
              10.16

            
	
              "Judgment
      Currency"

            	
              10.17

            
	
              "Legal
      Holiday"

            	
              10.08

            
	
              "mandatory
      sinking fund payment"

            	
              11.01

            
	
              "Market
      Exchange Rate"

            	
              10.16

            
	
              "New
      York Banking Day"

            	
              10.17

            
	
              "optional
      sinking fund payment"

            	
              11.01

            
	
              "Paying
      Agent"

            	
              2.04

            
	
              "Registrar"

            	
              2.04

            
	
              "Required
      Currency"

            	
              10.17

            
	
              "successor
      person"

            	
              5.01

            
	
              "Temporary
      Securities"

            	
              2.11

               

            

    

     

    SECTION
1.03.    Incorporation by Reference
of Trust Indenture Act.

    

    Whenever
this Indenture refers to a provision of the TIA, the provision is incorporated
by reference in and made a part of this Indenture.  This Indenture
shall also include those provisions of the TIA required to be included herein by
the provisions of the Trust Indenture Reform Act of 1990.  The
following TIA terms used in this Indenture have the following
meanings:

    

    "indenture securities" means
the Securities.

    

    "indenture security holder"
means a Securityholder.

    

    "indenture to be qualified"
means this Indenture.

    "indenture trustee" or
"institutional trustee" means the Trustee.

    

    "obligor" on the indenture
securities means the Company and any successor obligor upon the
Securities.

    

    All other
terms used in this Indenture that are defined by the TIA, defined by TIA
reference to another statute or defined by SEC rule under the TIA and not
otherwise defined herein are used herein as so defined.

     

    
 

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    SECTION
1.04.    Rules of
Construction.

    

    Unless
the context otherwise requires:

    

    (a)           a
term has the meaning assigned to it;

    

    (b)           an
accounting term not otherwise defined has the meaning assigned to it in
accordance with generally accepted accounting principles;

    

    (c)           references
to "generally accepted accounting principles" shall mean generally accepted
accounting principles in effect as of the time when and for the period as to
which such accounting principles are to be applied;

    

    (d)           "or"
is not exclusive;

    

    (e)           words
in the singular include the plural, and in the plural include the
singular;

    

    (f)           provisions
apply to successive events and transactions;

    

    (g)           references
to agreements and other instruments include subsequent amendments
thereto;

    

    (h)           the
term "merger" includes a statutory share exchange, and the term "merged" has a
correlative meaning; and

    

    (i)           "herein,"
"hereof" and other words of similar import refer to this Indenture as a whole
and not to any particular Article, Section or other subdivision.

    

    ARTICLE
II

    

    THE
SECURITIES

    

    SECTION
2.01.    Issuable in
Series.

    

    The
aggregate principal amount of Securities that may be authenticated and delivered
under this Indenture is unlimited.  The Securities may be issued in
one or more Series.  All Securities of a Series shall be identical
except as may be set forth in a Board Resolution, a supplemental
indenture or an Officers' Certificate detailing the adoption of the terms
thereof pursuant to the authority granted under a Board
Resolution.  In the case of Securities of a Series to be issued from
time to time, the Board Resolution, Officers' Certificate or supplemental
indenture may provide for the method by which specified terms (such as interest
rate, maturity date, record date or date from which interest shall accrue) are
to be determined.  Securities may differ between Series in respect of
any matters, provided that all Series of Securities shall be equally and ratably
entitled to the benefits of the Indenture.

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

    SECTION
2.02.    Establishment of Terms of
Series of Securities.

    

    At or
prior to the issuance of any Securities within a Series, the following shall be
established (as to the Series generally, in the case of Subsection (a), and
either as to such Securities within the Series or as to the Series generally in
the case of Subsections (b) through (t) by a Board Resolution, a supplemental
indenture or an Officers' Certificate pursuant to authority granted under a
Board Resolution:

    

    (a)           the
title, designation, aggregate principal amount and authorized denominations of
the Securities of the Series;

    

    (b)           the
price or prices, (expressed as a percentage of the aggregate principal amount
thereof) at which the Securities of the Series will be issued;

    

    (c)           the
date or dates on which the principal of the Securities of the Series is
payable;

    

    (d)           the
rate or rates (which may be fixed or variable) per annum or, if applicable, the
method used to determine such rate or rates (including, but not limited to, any
commodity, commodity index, stock exchange index or financial index) at which
the Securities of the Series shall bear interest, if any, the date or dates from
which such interest, if any, shall commence and be payable and any regular
record date for the interest payable on any interest payment date;

    

    (e)           any
optional or mandatory sinking fund provisions or conversion or exchangeability
provisions upon which Securities of the Series shall be redeemed, purchased,
converted or exchanged;

    

    (f)           the
date, if any, after which and the price or prices at which the Securities of the
Series may be optionally redeemed or must be mandatorily redeemed and any other
terms and provisions of optional or mandatory provisions;

    

    (g)           if
other than denominations of $1,000 and any integral multiple thereof, the
denominations in which the Securities of the Series shall be
issuable;

    

    (h)           if
other than the full principal amount, the portion of the principal amount of the
Securities of the Series that shall be payable upon declaration of acceleration
pursuant to Section 6.02 or provable in bankruptcy;

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    (i)           any
addition to or change in the Events of Default which applies to any Securities
of the Series and any change in the right of the Trustee or the requisite
Holders of such Securities to declare the principal amount thereof due and
payable pursuant to Section 6.02;

    

    (j)           the
currency or currencies, including composite currencies, in which payments of
principal of, premium or interest, if any, on the Securities of the Series will
be payable, if other than the currency of the United States of
America;

    

    (k)           if
payments of principal of, premium or interest, if any, on the Securities of the
Series will be payable, at the Company's election or at the election of any
Holder, in a currency other than that in which the Securities of the Series are
stated to be payable, the period or periods within which, and the terms and
conditions upon which, the election may be made;

    

    (l)           if
payments of interest, if any, on the Securities of the Series will be payable,
at the Company's election or at the election of any Holder, in cash or
additional securities, and the terms and conditions upon which the election may
be made;

    

    (m)           if
denominated in a currency or currencies other than the currency of the United
States of America, the equivalent price of the Securities of the Series in the
currency of the United States of America for purposes of determining the voting
rights of Holders of the Securities of the Series;

    

    (n)           if
the amount of payments of principal, premium or interest may be determined with
reference to an index, formula or other method based on a coin or currency other
than that in which the Securities of the Series are stated to be payable, the
manner in which the amounts will be determined;

    

    (o)           any
restrictive covenants or other material terms relating to the Securities of the
Series;

    

    (p)           whether
the Securities of the Series will be issued in the form of global securities or
certificates in registered form;

    

    (q)           any
terms with respect to subordination;

    

    (r)           any
listing on any securities exchange or quotation system;

    

    (s)           additional
provisions, if any, related to defeasance and discharge of the offered debt
securities; and

    

    (t)           the
applicability of any guarantees.

    

    All
Securities of any one Series need not be issued at the same time and may be
issued from time to time, consistent with the terms of this Indenture, if so
provided by or pursuant to the Board Resolution, supplemental indenture or
Officers' Certificate referred to above, and the authorized principal amount of
any Series may not be increased to provide for issuance of additional Securities
of such Series, unless otherwise provided in such Board Resolution,
supplemental Indenture or Officers' Certificate.

     

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    

    SECTION
2.03.    Execution and
Authentication.

    

    Two
Officers shall sign the Securities for the Company by manual or facsimile
signature.

    

    If an
Officer whose signature is on a Security no longer holds that office at the time
the Security is authenticated, the Security shall nevertheless be
valid.

    

    A
Security shall not be valid until authenticated by the manual signature of the
Trustee or an authenticating agent.  The signature shall be conclusive
evidence that the Security has been authenticated under this
Indenture.

    

    The
Trustee shall at any time, and from time to time, authenticate Securities for
original issue in the principal amount provided in the Board Resolution,
supplemental indenture hereto or Officers' Certificate, upon receipt by the
Trustee of a Company Order.  Such Company Order may authorize
authentication and delivery pursuant to oral or electronic instructions from the
Company or its duly authorized agent or agents, which oral instructions shall be
promptly confirmed in writing.  Each Security shall be dated the date
of its authentication unless otherwise provided by a Board Resolution, a
supplemental indenture hereto or an Officers' Certificate.

    

    The
aggregate principal amount of Securities of any Series outstanding at any time
may not exceed any limit upon the maximum principal amount for such Series set
forth in the Board Resolution, supplemental indenture hereto or Officers'
Certificate delivered pursuant to Section 2.02, except as provided in Section
2.08.

    

    Prior to
the issuance of Securities of any Series, the Trustee shall have received and
(subject to Section 7.02) shall be fully protected in relying on: (a) the Board
Resolution, supplemental indenture hereto or Officers Certificate establishing
the form of the Securities of that Series or of Securities within that Series
and the terms of the Securities of that Series or of Securities within that
Series, (b) an Officers' Certificate complying with Section 10.04, and (c) an
Opinion of Counsel complying with Section 10.04.

    

    The
Trustee shall have the right to decline to authenticate and deliver any
Securities of such Series: (a) if the Trustee, being advised by counsel,
determines that such action may not lawfully be taken; or (b) if a Responsible
Officer of the Trustee in good faith shall determine that such action would
expose the Trustee to personal liability to Holders of any then outstanding
Series of Securities.

    

    The
Trustee may appoint an authenticating agent acceptable to the Company to
authenticate Securities.  An authenticating agent may authenticate
Securities whenever the Trustee may do so.  Each reference in this
Indenture to authentication by the Trustee includes authentication by such
agent.  An authenticating agent has the same rights as an Agent to
deal with the Company or an Affiliate.

    

    If any
successor that has replaced the Company in accordance with Article 5 has
executed
an indenture supplemental hereto with the Trustee pursuant to Section 5.01, any
of the Securities authenticated or delivered prior to such transaction may, from
time to time, at the request of such successor, be exchanged for other
Securities executed in the name of the such successor with such changes in
phraseology and form as may be appropriate, but otherwise identical to the
Securities surrendered for such exchange and of like principal amount; and the
Trustee, upon receipt of a Company Order of such successor, shall authenticate
and deliver Securities as specified in such order for the purpose of such
exchange.  If Securities shall at any time be authenticated and
delivered in any new name of such successor pursuant to this provision of
Section 2.03 in exchange or substitution for or upon registration of transfer of
any Securities, such successor, at the option of the Holders but without expense
to them, shall provide for the exchange of all Securities then outstanding for
Securities authenticated and delivered in such new name.

     

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    

    SECTION
2.04.    Registrar and Paying
Agent.

    

    The
Company shall maintain, with respect to each Series of Securities, at the place
or places specified with respect to such Series pursuant to Section 2.02, an
office or agency where Securities of such Series may be presented or surrendered
for payment ("Paying Agent") and where Securities of such Series may be
surrendered for registration of transfer or exchange
("Registrar").  The Registrar shall keep a register with respect to
each Series of Securities and to their transfer and exchange.  The
Company will give prompt written notice to the Trustee of the name and address,
and any change in the name or address, of each Registrar and Paying
Agent.  If at any time the Company shall fail to maintain any such
required Registrar or Paying Agent or shall fail to furnish the Trustee with the
name and address thereof, such presentations and surrenders may be made or
served at the Corporate Trust Office of the Trustee, and the Company hereby
appoints the Trustee as its agent to receive all such presentations and
surrenders.

    

    The
Company may also from time to time designate one or more co-registrars or
additional paying agents and may from time to time rescind such designations;
provided, however, that no such designation or rescission shall in any manner
relieve the Company of its obligations to maintain a Registrar or Paying Agent
in each place so specified pursuant to Section 2.02 for Securities of any Series
for such purposes.  The Company will give prompt written notice to the
Trustee of any such designation or rescission and of any change in the name or
address of any such co-registrar or additional paying agent.  The term
"Registrar" includes any co-registrar; and the term "Paying Agent" includes any
additional paying agent.

    

    The
Company hereby appoints
[                                                                ]
as the initial Registrar and Paying Agent for each Series unless another
Registrar or Paying Agent as the case may be, is appointed prior to the time
Securities of that Series are first issued.  Each Registrar and Paying
Agent shall be entitled to all of the rights, protections, exculpations and
indemnities afforded to the Trustee in connection with its roles as Registrar
and Paying Agent.

    

    SECTION
2.05.    Paying Agent to Hold Money
in Trust.

    

    The
Company shall require each Paying Agent other than the Trustee to agree in
writing that the Paying Agent will hold in trust, for the benefit of
Securityholders of any Series of Securities, or the Trustee, all money held by
the Paying Agent for the payment of principal of or
interest on the Series of Securities, and will notify the Trustee of any default
by the Company in making any such payment.  While any such default
continues, the Trustee may require a Paying Agent to pay all money held by it to
the Trustee.  The Company at any time may require a Paying Agent to
pay all money held by it to the Trustee.  Upon payment over to the
Trustee, the Paying Agent (if other than the Company or a Subsidiary) shall have
no further liability for the money.  If the Company or a Subsidiary
acts as Paying Agent, it shall segregate and hold in a separate trust fund for
the benefit of Securityholders of any Series of Securities all money held by it
as Paying Agent.

     

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    

    SECTION
2.06.    Securityholder
Lists.

    

    The
Trustee shall preserve in as current a form as is reasonably practicable the
most recent list available to it of the names and addresses of Securityholders
of each Series of Securities and shall otherwise comply with TIA Section
312(a).  If the Trustee is not the Registrar, the Company shall
furnish to the Trustee at least [  ] days before each interest payment
date and at such other times as the Trustee may request in writing a list, in
such form and as of such date as the Trustee may reasonably require, of the
names and addresses of Securityholders of each Series of
Securities.

    

    SECTION
2.07.    Transfer and
Exchange.

    

    Where
Securities of a Series are presented to the Registrar or a co-registrar with a
request to register a transfer or to exchange them for an equal principal amount
of Securities of the same Series, the Registrar shall register the transfer or
make the exchange if its requirements for such transactions are
met.  To permit registrations of transfers and exchanges, the Trustee
shall authenticate Securities at the Registrar's request.  Any
exchange or transfer shall be without charge, except that the Company or the
Registrar may require payment of a sum sufficient to cover any tax or other
governmental charge required by law; provided that this sentence shall not apply
to any exchange pursuant to Section 2.11, 2.08, 3.06 or 9.06.

    

    Neither
the Company nor the Registrar shall be required (a) to issue, register the
transfer of, or exchange Securities of any Series for the period beginning at
the opening of business [  ] days immediately preceding the mailing of
a notice of redemption of Securities of that Series selected for redemption and
ending at the close of business on the day of such mailing, or (b) to register
the transfer of or exchange Securities of any Series selected, called or being
called for redemption as a whole or the portion being redeemed of any such
Securities selected, called or being called for redemption in part.

    

    All
Securities issued upon any transfer or exchange of Securities shall be valid
obligations of the Company, evidencing the same debt and entitled to the same
benefits under this Indenture, as the Securities surrendered upon such transfer
or exchange.  Any Registrar appointed pursuant to Section 2.04 shall
provide to the Trustee such information as the Trustee may reasonably require in
connection with the delivery by such Registrar of Securities upon transfer or
exchange of Securities.  Each Holder of a Security agrees to indemnify
the Company and the Trustee against any liability that may result from the
transfer, exchange or assignment of such Holder's Security in violation of any
provision of this Indenture and/or applicable U.S. federal or state securities
law.

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    

    SECTION
2.08.    Mutilated, Destroyed, Lost
and Stolen Securities.

    

    If any
mutilated Security is surrendered to the Registrar, the Company shall execute
and the Trustee shall authenticate and deliver in exchange therefor a new
Security of the same Series and of like tenor and principal amount and bearing a
number not contemporaneously outstanding.

    

    If there
shall be delivered to the Company and the Registrar (i) evidence to their
satisfaction of the destruction, loss or theft of any Security and (ii) such
security or indemnity as may be required by them to save each of them and any
agent of either of them harmless, then, in the absence of notice to the Company
or the Registrar that such Security has been acquired by a bona fide purchaser,
the Company shall execute and upon its request the Trustee shall authenticate
and make available for delivery, in lieu of any such destroyed, lost or stolen
Security, a new Security of the same Series and of like tenor and principal
amount and bearing a number not contemporaneously outstanding.

    

    In case
any such mutilated, destroyed, lost or stolen Security has become or is about to
become due and payable, the Company in its discretion may, instead of issuing a
new Security, pay such Security.

    

    Upon the
issuance of any new Security under this Section, the Company may require the
payment of a sum sufficient to cover any tax or other governmental charge that
may be imposed in relation thereto and any other expenses (including the fees
and expenses of the Trustee) connected therewith.

    

    Every new
Security of any series issued pursuant to this Section in lieu of any destroyed,
lost or stolen Security shall constitute an original additional contractual
obligation of the Company, whether or not the destroyed, lost or stolen Security
shall be at any time enforceable by anyone, and shall be entitled to all the
benefits of this Indenture equally and proportionately with any and all other
Securities of that Series duly issued hereunder.

    

    The
provisions of this Section are exclusive and shall preclude (to the extent
lawful) all other rights and remedies with respect to the replacement or payment
of mutilated, destroyed, lost or stolen Securities.

    

    SECTION
2.09.    Outstanding
Securities.

    

    The
Securities outstanding at any time are all the Securities authenticated by the
Trustee except for those canceled by it, those delivered to it for cancellation,
those reductions in the interest on a Global Security effected by the Trustee in
accordance with the provisions hereof and those described in this Section as not
outstanding.

    

    If a
Security is replaced pursuant to Section 2.08, it ceases to be outstanding until
the Trustee receives proof satisfactory to it that the replaced Security is held
by a bona fide purchaser.  If the
Paying Agent (other than the Company, a Subsidiary or an Affiliate of any
thereof) holds on the Maturity of Securities of a Series money sufficient to pay
such Securities payable on that date, then on and after that date such
Securities of the Series cease to be outstanding and interest on them ceases to
accrue.

     

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    

    A
Security does not cease to be outstanding because the Company or an Affiliate
holds the Security.

    

    In
determining whether the Holders of the requisite principal amount of outstanding
Securities have given any request, demand, authorization, direction, notice,
consent or waiver hereunder, the principal amount of a Discount Security that
shall be deemed to be outstanding for such purposes shall be the amount of the
principal thereof that would be due and payable as of the date of such
determination upon a declaration of acceleration of the Maturity thereof
pursuant to Section 6.02.

    

    SECTION
2.10.    Treasury
Securities.

    

    In
determining whether the Holders of the required principal amount of Securities
of a Series have concurred in any request, demand, authorization, direction,
notice, consent or waiver Securities of a Series owned by the Company or an
Affiliate shall be disregarded, except that for the purposes of determining
whether the Trustee shall be protected in relying on any such request, demand,
authorization, direction, notice, consent or waiver only Securities of a Series
that a Responsible Officer of the Trustee actually knows are so owned shall be
so disregarded.

    

    SECTION
2.11.    Temporary
Securities.

    

    Until
definitive Securities are ready for delivery, the Company may prepare and the
Trustee shall authenticate temporary securities upon a Company Order ("Temporary
Securities").  Temporary Securities shall be substantially in the form
of definitive Securities but may have variations that the Company considers
appropriate for temporary Securities.  Without unreasonable delay, the
Company shall prepare and the Trustee upon written request shall authenticate
definitive Securities of the same Series and date of maturity in exchange for
temporary Securities.  Until so exchanged, temporary securities shall
have the same rights under this Indenture as the definitive
Securities.

    

    SECTION
2.12.    Cancellation.

    

    The
Company at any time may deliver Securities to the Trustee for
cancellation.  The Registrar and the Paying Agent shall forward to the
Trustee or its agent any Securities surrendered to them for transfer, exchange,
payment or conversion.  The Trustee and no one else shall cancel, in
accordance with its standard procedures, all Securities surrendered for
transfer, exchange, payment, conversion or cancellation and shall deliver the
cancelled Securities to the Company.  No Security shall be
authenticated in exchange for any Security cancelled pursuant to this Section
2.12.

    

    The
Company may, to the extent permitted by law, purchase Securities in the open
market or by tender offer at any price or by private agreement.  Any
Securities purchased or otherwise
acquired by the Company or any of its Subsidiaries prior to the final maturity
of such Securities may, to the extent permitted by law, be reissued or resold or
may, at the option of the Company, be surrendered to the Trustee for
cancellation.  Any Securities surrendered for cancellation may not be
reissued or resold and shall be promptly cancelled by the Trustee, and the
Company may not hold or resell such Securities or issue any new Securities to
replace any such Securities.

    

    SECTION
2.13.    Defaulted
Interest.

    

    If the
Company defaults in a payment of interest on a Series of Securities, it shall
pay defaulted interest, plus, to the extent permitted by law, any interest
payable on the defaulted interest at the Default Rate, to the persons who are
Security holders of the Series on a subsequent special record
date.  The Company shall fix the record date and payment
date.  At least [  ] days before the record date, the
Company shall mail to the Trustee and the Paying Agent and to each
Securityholder of the Series a notice that states the record date, the payment
date and the amount of interest to be paid.  The Company may pay
defaulted interest in any other lawful manner.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    

    SECTION
2.14.    Global
Securities.

    

    (a)           A
Board Resolution, a supplemental indenture hereto or an Officers' Certificate
shall establish whether the Securities of a Series shall be issued in whole or
in part in the form of one or more Global Securities and the Depository for such
Global Security or Securities.

    

    (b)            (i)           Notwithstanding
any provisions to the contrary contained in Section 2.07 of the Indenture and in
addition thereto, any Global Security shall be exchangeable pursuant to Section
2.07 of the Indenture for Securities registered in the names of Holders other
than the Depository for such Security or its nominee only if (A) such Depository
notifies the Company that it is unwilling or unable to continue as Depository
for such Global Security or if at any time such Depository ceases to be a
clearing agency registered under the Exchange Act, and, in either case, the
Company fails to appoint a successor Depository within 90 days of such event,
(B) the Company executes and delivers to the Trustee an Officers' Certificate to
the effect that such Global Security shall be so exchangeable or (C) an Event of
Default with respect to the Securities represented by such Global Security shall
have happened and be continuing.

     

     

         (ii)           Except
as provided in this Section 2.14(b), a Global Security may not be transferred
except as a whole by the Depository with respect to such Global Security to a
nominee of such Depository, by a nominee of such Depository to such Depository
or another nominee of such Depository or by the Depository or any such nominee
to a successor Depository or a nominee of such a successor
Depository.

    

    (iii)           Securities
issued in exchange for a Global Security or any portion thereof shall be issued
in definitive, fully registered form, without interest coupons, shall have an
aggregate principal amount equal to that of such Global Security or portion
thereof to be so exchanged, shall be registered in such names and be in such
authorized denominations as the Depository shall designate and shall bear the
applicable legends provided
for herein.  Any Global Security to be exchanged in whole shall be
surrendered by the Depository to the Trustee, as Registrar.  With
regard to any Global Security to be exchanged in part, either such Global
Security shall be so surrendered for exchange or, if the Registrar is acting as
custodian for the Depository or its nominee with respect to such Global
Security, the principal amount thereof shall be reduced by an amount equal to
the portion thereof to be so exchanged, by means of an appropriate adjustment
made on the records of the Trustee.  Upon any such surrender or
adjustment, the Trustee shall authenticate and deliver the Security issuable on
such exchange to or upon the order of the Depository or an authorized
representative thereof.

    

    (iv)           The
registered Holder may grant proxies and otherwise authorize any Person,
including participants in the Depository and persons that may hold interests
through participants in the Depository, to take any action which a Holder is
entitled to take under this Indenture or the Securities.

    

    (v)           In
the event of the occurrence of any of the events specified in 2.14(b)(i), the
Company will promptly make available to the Trustee a reasonable supply of
Certificated Securities in definitive, fully registered form, without interest
coupons.  If (A) an event described in Section 2.14(b)(i)(A) or (B)
occurs and definitive Certificated Securities are not issued promptly to all
beneficial owners or (B) the Registrar receives from a beneficial owner
instructions to obtain definitive Certificated Securities due to an event
described in Section 2.14(b)(i)(C) and definitive Certificated Securities are
not issued promptly to any such beneficial owner, the Company expressly
acknowledges, with respect to the right of any Holder to pursue a remedy
pursuant to Section 6.07 hereof, the right of any beneficial owner of Securities
to pursue such remedy with respect to the portion of the Global Security that
represents such beneficial owner's Securities as if such definitive certificated
Securities had been issued.

     

    
 

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

       

    

    (vi)           Notwithstanding
any provision to the contrary in this Indenture, so long as a Global Security
remains outstanding and is held by or on behalf of the Depository, transfers of
a Global Security, in whole or in part, or of any beneficial interest therein,
shall only be made in accordance with Section 2.07, this Section 2.14(b) and the
rules and procedures of the Depository for such Global Security to the extent
applicable to such transaction and as in effect from time to time.

    

    (c)           Any
Global Security issued hereunder shall bear a legend in substantially the
following form:

    

    "This
Security is a Global Security within the meaning of the Indenture hereinafter
referred to and is registered in the name of the Depository or a nominee of the
Depository.  This Security is exchangeable for Securities registered
in the name of a person other than the Depository or its nominee only in the
limited circumstances described in the Indenture, and may not be transferred
except as a whole by the Depository to a nominee of the Depository, by a nominee
of the Depository to the Depository or another nominee of the Depository or by
the Depository or any such nominee to a successor Depository or a nominee of
such a successor Depository."

     

    (d)           The
Depository, as a Holder, may appoint agents and otherwise authorize participants
to give or take any request, demand, authorization, direction, notice, consent,
waiver or other action which a Holder is entitled to give or take under the
Indenture.

    

    (e)           Notwithstanding
the other provisions of this Indenture, unless otherwise specified as
contemplated by Section 2.02, payment of the principal of and interest, if any,
on any Global Security shall be made to the Holder thereof at their registered
office.

    

    (f)           At
all times the Securities are held in book-entry form with a Depository, (i) the
Trustee may deal with such Depository as the authorized representative of the
Holders, (ii) the rights of the Holders shall be exercised only through the
Depository and shall be limited to those established by law and agreement
between the Holders and the Depository and/or direct participants of the
Depository, (iii) the Depository will make book-entry transfers among the direct
participants of the Depository and will receive and transmit distributions of
principal and interest on the Securities to such direct participants; and (iv)
the direct participants of the Depository shall have no rights under this
Indenture, or any supplement hereto, under or with respect to any of the
Securities held on their behalf by the Depository, and the Depository may be
treated by the Trustee and its agents, employees, officers and directors as the
absolute owner of the Securities for all purposes whatsoever.

    

    SECTION
2.15.    CUSIP
Numbers.

    

    The
Company in issuing the Securities may use "CUSIP", "CCN", "ISIN" or other
identification numbers (if then generally in use), and, if so, the Trustee shall
use "CUSIP", "CCN", "ISIN" or such other identification numbers in notices of
redemption as a convenience to Holders; provided that any such notice may state
that no representation is made as to the correctness of such numbers either as
printed on the Securities or as contained in any notice of a redemption and that
reliance may be placed only on the other elements of identification printed on
the Securities, and any such redemption shall not be affected by any defect in
or omission of such numbers.

    

    ARTICLE
III

    

    REDEMPTION

    

    SECTION
3.01.    Notice to
Trustee.

    

    The
Company may, with respect to any series of Securities, reserve the right to
redeem and pay the Series of Securities or may covenant to redeem and pay the
Series of Securities or any part thereof prior to the Stated Maturity thereof at
such time and on such terms as provided for in such Securities.  If a
Series of Securities is redeemable and the Company wants or is obligated to
redeem prior to the Stated Maturity thereof all or part of the Series of
Securities pursuant to the terms of such Securities, it shall notify the Trustee
and Registrar in writing of the redemption date and the principal amount of
Series of Securities to be redeemed.  The Company shall give the
notice at least [  ] days before the redemption date (or such shorter
notice as may be acceptable to the Trustee and Registrar).

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    SECTION
3.02.    Selection of Securities to
be Redeemed.

    

    Unless
otherwise indicated for a particular Series by a Board Resolution, a
supplemental indenture or an Officers' Certificate, if less than all the
Securities of a Series are to be redeemed, the Registrar shall select the
Securities of the Series to be redeemed in accordance with its customary
procedures.  The Registrar shall make the selection from Securities of
the Series outstanding not previously called for redemption.  The
Registrar may select for redemption portions of the principal of Securities of
the Series that have denominations larger than $1,000.  Securities of
the Series and portions of them it selects shall be in amounts of $1,000 or
whole multiples of $1,000 or, with respect to Securities of any Series issuable
in other denominations pursuant to Section 2.02(g), the minimum principal
denomination for each Series and integral multiples
thereof.  Provisions of this Indenture that apply to Securities of a
Series called for redemption also apply to portions of Securities of that Series
called for redemption.

    

    SECTION
3.03.    Notice of
Redemption.

    

    Unless
otherwise indicated for a particular Series by Board Resolution, a supplemental
indenture hereto or an Officers' Certificate, at least [  ] days but
not more than [  ] days before a redemption date, the Company shall
mail a notice of redemption by first-class mail to each Holder whose Securities
are to be redeemed.

    

    The
notice shall identify the Securities of the Series to be redeemed and shall
state:

    

    (a)           the
redemption date;

    

    (b)           the
redemption price;

    

    (c)           the
name and address of the Paying Agent;

    

    (d)           that
Securities of the Series called for redemption must be surrendered to the Paying
Agent to collect the redemption price;

    

    (e)           that
interest on Securities of the Series called for redemption ceases to accrue on
and after the redemption date; and

    

    (f)           any
other information as may be required by the terms of the particular Series or
the Securities of a Series being redeemed.

    

    At the
Company's written request, the Trustee shall distribute the notice of redemption
prepared by the Company in the Company's name and at its expense.

    

    SECTION
3.04.    Effect of Notice of
Redemption.

    

    Once
notice of redemption is mailed or published as provided in Section 3.03,
Securities of a Series called for redemption become due and payable on the
redemption date and at the redemption price.  A notice of redemption
may not be conditional.  Upon surrender to the Paying
Agent, such Securities shall be paid at the redemption price plus accrued
interest to the redemption date.

     

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    

    SECTION
3.05.    Deposit of Redemption
Price.

    

    On or
before the redemption date, the Company shall deposit with the Paying Agent
money sufficient to pay the redemption price of and accrued interest, if any, on
all Securities to be redeemed on that date.

    

    SECTION
3.06.    Securities Redeemed in
Part.

    

    Upon
surrender of a Security that is redeemed in part, the Trustee shall authenticate
for the Holder a new Security of the same Series and the same maturity equal in
principal amount to the unredeemed portion of the Security
surrendered.

    

    

    ARTICLE
IV

    

    COVENANTS

    

    SECTION
4.01.    Payment of Principal and
Interest.

    

    The
Company covenants and agrees for the benefit of the Holders of each Series of
Securities that it will duly and punctually pay the principal of and interest,
if any, on the Securities of that Series in accordance with the terms of such
Securities and this Indenture.

    

    Unless
otherwise provided under the terms of a particular Series of
Securities:

    

    (a)           an
installment of principal or interest shall be considered paid on the date it is
due if the Paying Agent (other than the Company) holds by [] [a].m., New York City time, on that date
money, deposited by the Company or an Affiliate thereof, sufficient to pay such
installment.  The Company shall (in immediately available funds), to
the fullest extent permitted by law, pay interest on overdue principal and
overdue installments of interest at the rate borne by the Securities per annum;
and

    

    (b)           payment
of the principal of and interest on the Securities shall be made at the office
or agency of the Company maintained for that purpose in [] (which shall initially be [], the Paying Agent) in such coin or currency
of the United States of America as at the time of payment is legal tender for
payment of public and private debts; provided, however, that at
the option of the Company payment of interest may be made by check mailed to the
address of the Person entitled thereto as such address appears in the register;
provided, further, that
a Holder with an aggregate principal amount in excess of $[] will be paid by
wire transfer in immediately available funds at the election of such Holder if
such Holder has provided wire transfer instructions to the Company at least
[  ] Business Days prior to the payment date.

    

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    SECTION
4.02.    SEC
Reports.

    

    So long
as any Securities are outstanding, the Company shall (i) file with the SEC
within the time periods prescribed by its rules and regulations and (ii) furnish
to the Trustee and the Holders of the Securities within [  ] days
after the date on which the Company would be required to file the same with the
SEC pursuant to its rules and regulations (giving effect to any grace period
provided by Rule 12b-25 under the Exchange Act), all quarterly and annual
financial information required to be furnished or filed with the SEC pursuant to
Section 13 and Section 15(d) of the Exchange Act and, with respect to the annual
consolidated financial statements only, a report thereon by the Company's
independent auditors.  The Company also shall comply with the other
provisions of TIA Section 314(a).

    

    Delivery
of such reports, information and documents to the Trustee is for informational
purposes only, and the Trustee's receipt of such shall not constitute
constructive notice of any information contained therein or determinable from
information contained therein, including the Company's compliance with any of
its covenants hereunder (as to which the Trustee is entitled to rely exclusively
on Officers' Certificates).  The Company shall not be required to file
any report or other information with the SEC if the SEC does not permit such
filing, although such reports shall be furnished to the
Trustee.  Documents filed by the Company with the SEC via the SEC's
EDGAR system (or any successor thereto) will be deemed furnished to the Trustee
and the Holders of the Securities as of the time such documents are filed via
EDGAR (or such successor).

    

    SECTION
4.03.    Compliance
Certificate.

    

    The
Company shall deliver to the Trustee, within [   ] days after the
end of each fiscal year of the Company, an officers certificate signed by two of
the Company's officers stating that a review of the activities of the Company
and its Subsidiaries during the preceding fiscal year has been made under the
supervision of the signing Officers with a view to determining whether the
Company has kept, observed, performed and fulfilled its obligations under this
Indenture, and further stating, as to each such Officer signing such
certificate, that to the best of his knowledge the Company has kept, observed,
performed and fulfilled each and every covenant contained in this Indenture and
is not in default in the performance or observance of any of the terms,
provisions and conditions hereof (or, if a Default or Event of Default shall
have occurred, describing all such Defaults or Events of Default of which he may
have knowledge in reasonable detail and the efforts to remedy the
same).  For purposes of this Section 4.03, compliance shall be
determined without regard to any grace period or requirement of notice provided
pursuant to the terms of this Indenture.

    

    The
Company shall deliver to the Trustee, within [  ] days after the
occurrence thereof, written notice in the form of an Officers' Certificate of
any Event of Default described in Section 6.01(e), (f), (g) or (h) and any event
of which it becomes aware that with the giving of notice or the lapse of time
would become such an Event of Default, its status and what action the Company is
taking or proposes to take with respect thereto.  For the avoidance of
doubt, a breach of a covenant under an Instrument that is not a payment default
and that has not given rise to a right of acceleration under such Instrument
shall not trigger the requirement to provide notice under this
paragraph.

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

    

    SECTION
4.04.    Stay, Extension and Usury
Laws.

    

    The
Company covenants (to the extent that it may lawfully do so) that it will not at
any time insist upon, plead, or in any manner whatsoever claim or take the
benefit or advantage of, any stay, extension or usury law wherever enacted, now
or at any time hereafter in force, which may affect the covenants or the
performance of this Indenture or the Securities; and the Company (to the extent
it may lawfully do so) hereby expressly waives all benefit or advantage of any
such law and covenants that it will not, by resort to any such law, hinder,
delay or impede the execution of any power herein granted to the Trustee, but
will suffer and permit the execution of every such power as though no such law
has been enacted.

    

    SECTION
4.05.    Corporate
Existence.

    

    Subject
to Article V, the Company will do or cause to be done all things necessary to
preserve and keep in full force and effect its corporate existence and the
corporate, partnership or other existence of each Subsidiary in accordance with
the respective organizational documents of each Subsidiary and the rights
(charter and statutory), licenses and franchises of the Company and its
Subsidiaries; provided, however, that the Company shall not be required to
preserve any such right, license or franchise, or the corporate, partnership or
other existence of any Subsidiary, if the Board of Directors shall determine
that the preservation thereof is no longer desirable in the conduct of the
business of the Company and its Subsidiaries taken as a whole and that the loss
thereof is not adverse in any material respect to the Holders.

    

    SECTION
4.06.    Taxes.

    

    The
Company shall, and shall cause each of its Subsidiaries to, pay prior to
delinquency all taxes, assessments and governmental levies, except as contested
in good faith and by appropriate proceedings.

    

    SECTION
4.07.    Additional Interest
Notice.

    

    In the
event that the Company is required to pay additional interest to Holders of
Securities pursuant to Section 6.02(b) hereof, the Company shall provide a
direction or order in the form of a written notice to the Trustee (and if the
Trustee is not the Paying Agent, the Paying Agent) of the Company's obligation
to pay such additional interest no later than [   ] Business Days
prior to date on which any such additional interest is scheduled to be
paid.  Such notice shall set forth the amount of additional interest
to be paid by the Company on such payment date and direct the Trustee (or, if
the Trustee is not the Paying Agent, the Paying Agent) to make payment to the
extent it receives funds from the Company to do so.  The Trustee shall
not at any time be under any duty or responsibility to any Holder to determine
whether additional interest is payable, or with respect to the nature, extent,
or calculation of the amount of additional interest owed, or with respect to the
method employed in such calculation of additional interest.

    

    SECTION
4.08.    Further Instruments and
Acts.

    

    The
Company will execute and deliver such further instruments and do such
further
acts as may be reasonably necessary or proper to carry out more effectively the
purposes of this Indenture.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    

    ARTICLE
V

    

    SUCCESSORS

    

    SECTION
5.01.    When Company May Merge,
Etc.

    

    The
Company shall not consolidate with, enter into a binding share exchange, or
merge into any other Person in a transaction in which it is not the surviving
entity, or sell, assign, convey, transfer or lease or otherwise dispose of all
or substantially all of its properties and assets to any Person (a "successor
person"), unless:

    

    (a)           the
successor person (if any) is a corporation, partnership, trust or other entity
organized and validly existing under the laws of the Marshall Islands, [], the United States, any state of the
United States or the District of Columbia and expressly assumes by a
supplemental indenture executed and delivered to the Trustee, in form
satisfactory to the Trustee, the due and punctual payment of the principal of,
and any interest on, all Securities and the performance or observance of every
covenant of this Indenture on the part of the Company to be performed or
observed;

    

    (b)           immediately
after giving effect to the transaction, no Default or Event of Default, shall
have occurred and be continuing; and

    

    (c)           the
Company shall have delivered to the Trustee, prior to the consummation of the
proposed transaction, an Officers' Certificate to the foregoing effect and an
Opinion of Counsel stating that the proposed transaction and such supplemental
indenture comply with this Indenture.

    

    SECTION
5.02.    Successor Corporation
Substituted.

    

    Upon any
consolidation or merger, or any sale, lease, conveyance or other disposition of
all or substantially all of the assets of the Company in accordance with Section
5.01, the successor person formed by such consolidation or into or with which
the Company is merged or to which such sale, lease, conveyance or other
disposition is made shall succeed to, and be substituted for, and may exercise
every right and power of, the Company under this Indenture with the same effect
as if such successor person has been named as the Company herein; provided,
however, that the predecessor company in the case of a sale, lease, conveyance
or other disposition of all or substantially all of the assets of the Company
shall not be released from the obligation to pay the principal of and interest,
if any, on the Securities.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    

    ARTICLE
VI

    

    DEFAULTS
AND REMEDIES

    

    SECTION
6.01.    Events of
Default.

     

    "Event of
Default," wherever used herein with respect to securities of any Series, means
any one of the following events, unless in the establishing Board Resolution,
supplemental indenture or Officers' Certificate, it is provided that such Series
shall not have the benefit of said Event of Default:

    

    (a)           default
in the payment of any interest on any Security of that Series when it becomes
due and payable, and continuance of such default for a period of 30 days (unless
the entire amount of such payment is deposited by the Company with the Trustee
or with a Paying Agent prior to the expiration of such period of 30 days);
or

    

    (b)           default
in the payment of any principal of any Security of that Series at its Maturity;
or

    

    (c)           default
in the deposit of any sinking fund payment, when and as due in respect of any
Security of that Series; or

    

    (d)           the
Company fails to perform or comply with any of its other covenants or agreements
contained in the Securities or in this Indenture (other than a covenant or
agreement a default in whose performance or whose breach is specifically dealt
with in clauses (a), (b) or (c) of this Section 6.01) and the default continues
for 60 days after notice is given as specified below;

    

    (e)           any
indebtedness under any bond, debenture, note or other evidence of indebtedness
for money borrowed by the Company or any Subsidiary or under any mortgage,
indenture or instrument under which there may be issued or by which there may be
secured or evidenced any indebtedness for money borrowed by, or any other
payment obligation of, the Company or any Subsidiary (an "Instrument") with a
principal amount then, individually or in the aggregate, outstanding in excess
of $[], whether such indebtedness now exists or shall hereafter be created, is
not paid at Maturity or when otherwise due or is accelerated, and such
indebtedness is not discharged, or such default in payment or acceleration is
not cured or rescinded, within a period of 30 days after there shall have been
given, by registered or certified mail, to the Company by the Trustee or to the
Company and the Trustee by the Holders of at least [  ]% in aggregate
principal amount of the outstanding Securities of that Series a written notice
specifying such default and requiring the Company to cause such indebtedness to
be discharged or cause such default to be cured or waived or such acceleration
to be rescinded or annulled and stating that such notice is a "Notice of
Default" hereunder.  A payment obligation (other than indebtedness
under any bond, debenture, note or other evidence of indebtedness for money
borrowed by the Company or any Subsidiary or under any mortgage, indenture or
instrument under which there may be issued or by which there may be secured or
evidenced any indebtedness for money borrowed by the Company or any Subsidiary)
shall not be deemed to have matured, come due, or been accelerated to the extent
that it is being disputed by the relevant obligor or obligors in good
faith.  For the avoidance of doubt, the Maturity of an Instrument is
the Maturity as set forth in that Instrument, as it may be amended from time to
time in accordance with the terms of that Instrument;

    

    (f)           the
Company or any Subsidiary fails to pay one or more final and non appealable
judgments entered by a court or courts of competent jurisdiction, the aggregate
uninsured or unbonded portion of which is in excess of $[], if the judgments are not paid, discharged,
waived or stayed within [  ] days;

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    

    (g)           the
Company or any Subsidiary of the Company, pursuant to or within the meaning of
any Bankruptcy Law:

     

          
(i)           commences a
voluntary case or proceeding;

    

    (ii)           consents
to the entry of an order for relief against it in an involuntary case or
proceeding;

    

    (iii)           consents
to the appointment of a Custodian of it or for all or substantially all of its
property; or

    

    (iv)           makes
a general assignment for the benefit of its creditors; or

    

    (v)           or
generally is unable to pay its debts as the same become due; or

    

    (h)           a
court of competent jurisdiction enters an order or decree under any Bankruptcy
Law that:

    

    (i)      
      is for relief against the Company or any of
its Subsidiaries in an involuntary case or proceeding;

    

    (ii)      
     appoints a Custodian of the Company or any of its
Subsidiaries for all or substantially all of the property of the Company or any
such Subsidiary; or

    

    (iii)           orders
the liquidation of the Company or any of its Subsidiaries;

    

    and the
case of each of clause (i), (ii) and (iii), the order or decree remains unstayed
and in effect for [  ] consecutive days; or

    

    (i)           any
other Event of Default provided with respect to Securities of that Series, which
is specified in a Board Resolution, a supplemental indenture hereto or an
Officers' Certificate, in accordance with Section 2.02(i).

    

    A default
under clause (d) above is not an Event of Default until the Trustee notifies the
Company, or the Holders of at least [  ]% in aggregate principal
amount of the Securities then outstanding notify the Company and the Trustee, in
writing of the default, and the Company does not cure the default within 60 days
after receipt of such notice.  The notice given pursuant to this
Section 6.01 must specify the default, demand that it be remedied and state that
the notice is a "Notice of Default."  When any default under this
Section 6.01 is cured, it ceases.

    

    The
Trustee shall not be charged with knowledge of any Event of Default unless
written notice thereof shall have been given to a Trust Officer at the Corporate
Trust Office of the Trustee by the Company, a Paying Agent, any Holder or any
agent of any Holder.

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

    

    SECTION
6.02.    Acceleration of Maturity;
Rescission and Annulment.

    

    (a)           If
an Event of Default (other than an Event of Default specified in clause (g) or
(h) of Section 6.01) occurs and is continuing with respect to any Securities of
any Series, then in every such case, the Trustee may, by notice to the Company,
or the Holders of at least 25% in aggregate principal amount of the Securities
of that Series (or, if any Securities of that Series are Discount Securities,
such portion of the principal amount as may be specified in the terms of such
Securities) then outstanding may, by notice to the Company and the Trustee,
declare all unpaid principal of, and accrued and unpaid interest on to the date
of acceleration, the Securities of that Series then outstanding (if not then due
and payable) to be due and payable upon any such declaration, and the same shall
become and be immediately due and payable.  If an Event of Default
specified in clause (g) or (h) of Section 6.01 occurs, all unpaid principal of
the Securities then outstanding, and all accrued and unpaid interest thereon to
the date of acceleration, shall ipso facto become and be immediately due and
payable without any declaration or other act on the part of the Trustee or any
Holder.  The Holders of a majority in aggregate principal amount of
the Securities of that Series then outstanding by notice to the Trustee may
rescind an acceleration of such Securities of that Series and its consequences
if (a) all existing Events of Default, other than the nonpayment of the
principal of the Securities which has become due solely by such declaration of
acceleration, have been cured or waived; (b) to the extent the payment of such
interest is lawful, interest (calculated at the Default Rate) on overdue
installments of interest and overdue principal, which has become due otherwise
than by such declaration of acceleration, has been paid; (c) the rescission
would not conflict with any judgment or decree of a court of competent
jurisdiction; and (d) all payments due to the Trustee and any predecessor
Trustee under Section 7.07 have been made.  No such rescission shall
affect any subsequent default or impair any right consequent
thereto.

    

    (b)           Notwithstanding
any of provision of this Article 6, at the election of the Company in its sole
discretion, the sole remedy under this Indenture for an Event of Default
relating to the failure to comply with Section 4.02, and for any failure to
comply with the requirements of Section 314(a)(1) of the TIA, will consist, for
the 180 days after the occurrence of such an Event of Default, exclusively of
the right to receive additional interest on the Securities at a rate equal to
0.50% per annum of the aggregate principal amount of the Securities then
outstanding up to, but not including, the 181st day thereafter (or, if
applicable, the earlier date on which the Event of Default relating to Section
4.02 is cured or waived).  Any such additional interest will be
payable in the same manner and on the same dates as the stated interest payable
on the Securities.  In no event shall additional interest accrue under
the terms of this Indenture at a rate in excess of 0.50% per annum, in the
aggregate, for any violation or default caused by the failure of the Company to
be current in respect of its Exchange Act reporting obligations.  If
the Event of Default is continuing on the 181st day after an Event of Default
relating to a failure to comply with Section 4.02, the Securities will be
subject to acceleration as provided in this Section 6.02.  The
provisions of this Section 6.02(b) will not affect the rights of Holders in the
event of the occurrence of any other Events of Default.

    

    In order
to elect to pay additional interest as the sole remedy during the first 180 days
after the occurrence of an Event of Default relating to the failure to comply
with Section 4.02 in accordance with the immediately preceding paragraph, the
Company shall notify all Holders
and the Trustee and Paying Agent of such election on or before the close of
business on the fifth Business Day after the date on which such Event of Default
otherwise would occur.  Upon a failure by the Company to timely give
such notice or pay additional interest, the Securities will be immediately
subject to acceleration as otherwise provided in this Section 6.02.

     

    
 

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    SECTION
6.03.    Collection of Indebtedness
and Suits for Enforcement by Trustee.

    

    If an
Event of Default with respect to any Securities of any Series occurs and is
continuing, the Trustee may in its discretion proceed to protect and enforce its
rights and the rights of the Holders of Securities of such Series by such
appropriate judicial proceedings as the Trustee shall deem most effectual to
protect and enforce any such rights, whether for the specific enforcement of any
covenant or agreement in this Indenture or in aid of the exercise of any power
granted herein, or to enforce any other proper remedy.

    

    If an
Event of Default in the payment of principal, interest, if any, specified in
clause (a) or (b) of Section 6.01 occurs and is continuing, the Trustee may
recover judgment in its own name and as trustee of an express trust against the
Company or another obligor on the Securities for the whole amount of principal,
and accrued interest remaining unpaid, if any, together with, to the extent that
payment of such interest is lawful, interest on overdue principal, on overdue
installments of interest, if any, in each case at the Default Rate, and such
further amount as shall be sufficient to cover the costs and expenses of
collection, including the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel.

    

    SECTION
6.04.    Trustee May File Proofs of
Claim.

    
 

    In case
of the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial
proceeding relative to the Company or any other obligor upon the Securities or
the property of the Company or of such other obligor or their creditors, the
Trustee (irrespective of whether the principal of the Securities shall then be
due and payable as therein expressed or by declaration or otherwise and
irrespective of whether the Trustee shall have made any demand on the Company
for the payment of overdue principal or interest) shall be entitled and
empowered, by intervention in such proceeding or otherwise,

    

    (a)           to
file and prove a claim for the whole amount of principal and interest owing and
unpaid in respect of the Securities and to file such other papers or documents
as may be necessary or advisable in order to have the claims of the Trustee
(including any claim for the reasonable compensation, expenses, disbursements
and advances of the Trustee, its agents and counsel) and of the Holders allowed
in such judicial proceeding, and

    

    (b)           to
collect and receive any moneys or other property payable or deliverable on any
such claims and to distribute the same, and any custodian, receiver, assignee,
trustee, liquidator, sequestrator or other similar official in any such judicial
proceeding is hereby authorized by each Holder to make such payments to the
Trustee and, in the event that the Trustee
shall consent to the making of such payments directly to the Holders, to pay to
the Trustee any amount due it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other
amounts due the Trustee under Section 7.07.

    

    Nothing
herein contained shall be deemed to authorize the Trustee to authorize or
consent to or accept or adopt on behalf of any Holder any plan of
reorganization, arrangement, adjustment or composition affecting the Securities
or the rights of any Holder thereof or to authorize the Trustee to vote in
respect of the claim of any Holder in any such proceeding.

    

    SECTION
6.05.    Trustee May Enforce Claims
Without Possession of Securities.

    

    All
rights of action and claims under this Indenture or the Securities may be
prosecuted and enforced by the Trustee without the possession of any of the
Securities or the production thereof in any proceeding relating thereto, and any
such proceeding instituted by the Trustee shall be brought in its own name as
trustee of an express trust, and any recovery of judgment shall, after provision
for the payment of the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel, be for the ratable benefit of
the Holders of the Securities in respect of which such judgment has been
recovered.

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    

    SECTION
6.06.    Application of Money
Collected.

    

    Any money
collected by the Trustee pursuant to this Article shall be applied in the
following order, at the date or dates fixed by the Trustee and, in case of the
distribution of such money on account of principal or interest, upon
presentation of the Securities and the notation thereon of the payment if only
partially paid and upon surrender thereof if fully paid: and

    

    First: To the payment of all
amounts due the Trustee under Section 7.07;

    

    Second: To the payment of the
amounts then due and unpaid for principal of and interest on the Securities in
respect of which or for the benefit of which such money has been collected,
ratably, without preference or priority of any kind, according to the amounts
due and payable on such Securities for principal and interest, respectively;
and

    

    Third: To the
Company.

    

    SECTION
6.07.    Limitation on
Suits.

    

    No Holder
of any Security of any Series shall have any right to institute any proceeding,
judicial or otherwise, with respect to this Indenture, or for the appointment of
a receiver or trustee, or for any other remedy hereunder (except actions for
payment of overdue principal and interest), unless:

    

    (a)           such
Holder has previously given written notice to the Trustee of a continuing Event
of Default with respect to the Securities of that Series;

     

    (b)           the
Holders of not less than [  ]% in principal amount of the outstanding
Securities of that Series shall have made written request to the Trustee to
institute proceedings in respect of such Event of Default in its own name as
Trustee hereunder;

    

    (c)           such
Holder or Holders have offered to the Trustee indemnity satisfactory to it
against the costs, expenses and liabilities to be incurred in compliance with
such request;

    

    (d)           the
Trustee for [  ] days after its receipt of such notice, request and
offer of indemnity has failed to institute any such proceeding; and

    

    (e)           no
direction inconsistent with such written request has been given to the Trustee
during such [  ]-day period by the Holders of a majority in principal
amount of the outstanding Securities of that Series; it being understood and
intended that no one or more of such Holders shall have any right in any manner
whatever by virtue of, or by availing of, any provision of this Indenture to
affect, disturb or prejudice the rights of any other of such Holders, or to
obtain or to seek to obtain priority or preference over any other of such
Holders or to enforce any right under this Indenture, except in the manner
herein provided and for the equal and ratable benefit of all such
Holders.

     

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    

    SECTION
6.08.    Unconditional Right of
Holders to Receive Principal and Interest.

    

    Notwithstanding
any other provision in this Indenture, the Holder of any Security shall have the
right, which is absolute and unconditional, to receive payment of the principal
of and interest, if any, on such Security on the Stated Maturity or Stated
Maturities expressed in such Security (or, in the case of redemption, on the
redemption date) and to institute suit for the enforcement of any such payment,
and such rights shall not be impaired without the consent of such
Holder.

    

    SECTION
6.09.    Restoration of Rights and
Remedies.

    

    If the
Trustee or any Holder has instituted any proceeding to enforce any right or
remedy under this Indenture and such proceeding has been discontinued or
abandoned for any reason, or has been determined adversely to the Trustee or to
such Holder, then and in every such case, subject to any determination in such
proceeding, the Company, the Trustee and the Holders shall be restored severally
and respectively to their former positions hereunder and thereafter all rights
and remedies of the Trustee and the Holders shall continue as though no such
proceeding had been instituted.

    

    SECTION
6.10.    Rights and Remedies
Cumulative.

    

    Except as
otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Securities in Section 2.08, no right or remedy herein
conferred upon or reserved to the Trustee or to the Holders is intended to be
exclusive of any other right or remedy, and every right and remedy shall, to the
extent permitted by law, be cumulative and in addition to every other right and
remedy given hereunder or now or hereafter existing at law or in equity or
otherwise.  The assertion or employment of any right or remedy
hereunder,
or otherwise, shall not prevent the concurrent assertion or employment of any
other appropriate right or remedy.

    

    SECTION
6.11.    Delay or Omission Not
Waiver.

    

    No delay
or omission of the Trustee or of any Holder of any Securities to exercise any
right or remedy accruing upon any Event of Default shall impair any such right
or remedy or constitute a waiver of any such Event of Default or an acquiescence
therein.  Every right and remedy given by this Article or by law to
the Trustee or to the Holders may be exercised from time to time, and as often
as may be deemed expedient, by the Trustee or by the Holders, as the case may
be.

    

    SECTION
6.12.    Control by
Holders.

    

    The
Holders of a majority in principal amount of the outstanding Securities of any
Series shall have the right to direct the time, method and place of conducting
any proceeding for any remedy available to the Trustee, or exercising any trust
or power conferred on the Trustee, with respect to the Securities of such
Series, provided that

    

    (a)           such
direction shall not be in conflict with any rule of law or with this
Indenture,

    

    (b)           the
Trustee may take any other action deemed proper by the Trustee which is not
inconsistent with such direction; and

     

    (c)           subject
to the provisions of Section 6.01, the Trustee shall have the right to decline
to follow any such direction if the Trustee in good faith shall, by a
Responsible Officer of the Trustee, determine that the proceeding so directed
would involve the Trustee in personal liability or would be unduly prejudicial
to the rights of another Holder or the Trustee.

     

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

    

    SECTION
6.13.    Waiver of Past
Defaults.

    

    Subject
to Section 9.02, the Holders of not less than a majority in principal amount of
the outstanding Securities of any Series may on behalf of the Holders of all the
Securities of such Series waive any past Default hereunder with respect to such
Series and its consequences, except a Default in the payment of the principal of
or interest on any Security of such Series (provided, however, that the Holders
of a majority in principal amount of the outstanding Securities of any Series
may rescind an acceleration and its consequences, including any related payment
default that resulted from such acceleration).  Upon any such waiver,
such Default shall cease to exist, and any Event of Default arising therefrom
shall be deemed to have been cured, for every purpose of this Indenture; but no
such waiver shall extend to any subsequent or other Default or impair any right
consequent thereon.

    

    SECTION
6.14.    Undertaking for
Costs.

    

    All
parties to this Indenture agree, and each Holder of any Security by his
acceptance thereof shall be deemed to have agreed, that any court may in its
discretion require, in any suit
for the enforcement of any right or remedy under this Indenture, or in any suit
against the Trustee for any action taken, suffered or omitted by it as Trustee,
the filing by any party litigant in such suit of an undertaking to pay the costs
of such suit, and that such court may in its discretion assess reasonable costs,
including reasonable attorneys' fees, against any party litigant in such suit,
having due regard to the merits and good faith of the claims or defenses made by
such party litigant; but the provisions of this Section shall not apply to any
suit instituted by the Company, to any suit instituted by the Trustee, to any
suit instituted by any Holder, or group of Holders, holding in the aggregate
more than [  ]% in principal amount of the outstanding Securities of
any Series, or to any suit instituted by any Holder for the enforcement of the
payment of the principal of or interest on any Security on or after the Stated
Maturity or Stated Maturities expressed in such Security (or, in the case of
redemption, on the redemption date).

    

    ARTICLE
VII

    

    TRUSTEE

    

    SECTION
7.01.    Duties of
Trustee.

    

    (a)           If
an Event of Default has occurred and is continuing, the Trustee shall exercise
the rights and powers vested in it by this Indenture and use the same degree of
care and skill in their exercise as a prudent person would exercise or use under
the circumstances in the conduct of his own affairs.

    

    (b)           Except
during the continuance of an Event of Default:

    

    (i)           The
Trustee  need perform only those duties that are specifically set
forth in this Indenture and no implied duties, covenants or obligations shall be
deemed to be imposed upon the Trustee.

     

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

    

    (ii)           in
the absence of bad faith on its part, the Trustee may conclusively rely, as to
the truth of the statements and the correctness of the opinions expressed
therein, upon Officers' Certificates or Opinions of Counsel furnished to the
Trustee and conforming to the requirements of this Indenture; however, in the
case of any such Officers' Certificates or Opinions of Counsel which by any
provisions hereof are specifically required to be furnished to the Trustee, the
Trustee shall examine such Officers' Certificates and Opinions of Counsel to
determine whether or not they conform on their face to the requirements of this
Indenture.

    

    (c)           The
Trustee may not be relieved from liability for its own its own negligent action,
its own negligent failure to act or willful misconduct, except
that:

    

    (i)           This
paragraph does not limit the effect of paragraph (b) of Section 7.01
herein.

    

    (ii)           The
Trustee shall not be liable for any error of judgment made in good faith by a
Responsible Officer.

     

    (iii)           The
Trustee shall not be liable with respect to any action taken, suffered or
omitted to be taken by it with respect to Securities of any Series in good faith
in accordance with the direction of the Holders of a majority in principal
amount of the outstanding Securities of such Series relating to the time, method
and place of conducting any proceeding for any remedy available to the Trustee,
or exercising any trust or power conferred upon the Trustee, under this
Indenture with respect to the Securities of such Series.

    

    (d)           Every
provision of this Indenture that in any way relates to the Trustee is subject to
paragraph (a), (b) and (c) of this Section.

    

    (e)           The
Trustee may refuse to perform any duty or exercise any right or power unless it
receives an indemnity satisfactory to it against any loss, liability or
expense.

    

    (f)           The
Trustee shall not be liable for interest on any money received by it except as
the Trustee may agree in writing with the Company.  Money held in
trust by the Trustee need not be segregated from other funds except to the
extent required by law.

    

    (g)           No
provision of this Indenture shall require the Trustee to risk or expend its own
funds or otherwise incur liability, financial or otherwise, in the performance
of any of its duties, or in the exercise of any of its rights or powers, if it
shall have reasonable grounds for believing that repayment of such funds or
indemnity satisfactory to it against such risk is not reasonably assured to
it.

    

    (h)           The
Paying Agent, the Registrar and any authenticating agent shall be entitled to
the same rights, indemnities, protections and immunities afforded to the
Trustee.

    

    (i)           The
Trustee shall have no duty to monitor the performance or compliance of the
Company with its obligations hereunder or any under supplement hereto, nor shall
it have any liability in connection with the malfeasance or nonfeasance by the
Company.  The Trustee shall have no liability in connection with
compliance by the Company with statutory or regulatory requirements related to
this Indenture, any supplement or any Securities issued pursuant hereto or
thereto.

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

    

    SECTION
7.02.    Rights of
Trustee.

    

    (a)           The
Trustee may conclusively rely on and shall be fully protected in acting or
refraining from acting as a result of its reasonable belief that any resolution,
certificate, statement, instrument, opinion, report, notice, request, consent,
order, direction, approval or other paper or document was genuine and had been
signed or presented by the proper person.  The Trustee need not
investigate any fact or matter stated in the document, but the Trustee, in its
discretion, may make such further inquiry or investigation into such facts or
matters as it sees fit.

    

    (b)           Before
the Trustee acts or refrains from acting, it may require an Officers'
Certificate or an Opinion of Counsel or both.  The Trustee shall not
be liable for any action it takes or omits to take in good faith in reliance on
such Officers' Certificate or Opinion of Counsel.

     

    (c)           The
Trustee may act through agents and shall not be responsible for the misconduct
or negligence of, or for the supervision of, any agent appointed with due
care.  No Depository shall be deemed an agent of the Trustee and the
Trustee shall not be responsible for any act or omission by any
Depository.

    

    (d)           The
Trustee shall not be liable for any action it takes or omits to take in good
faith which it believes to be authorized or within its rights or
powers.

    

    (e)           The
Trustee may consult with counsel of its selection and the advice of such counsel
or any Opinion of Counsel shall be full and complete authorization and
protection in respect of any action taken, suffered or omitted by it hereunder
in good faith and in reliance thereon.

    

    (f)           The
Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by or pursuant to this Indenture at the request, order or direction
of any of the Holders of Securities, unless such Holders shall have offered to
the Trustee reasonable security or indemnity satisfactory to it against the
costs, expenses and liabilities which might be incurred by it in compliance with
such request or direction.

    

    SECTION
7.03.    Individual Rights of
Trustee.

    

    The
Trustee, in its individual or any other capacity, may become the owner or
pledgee of Securities and may otherwise deal with the Company or an Affiliate
with the same rights it would have if it were not Trustee.  Any Agent
may do the same with like rights.  The Trustee is also subject to
Sections 7.10 and 7.11.

    

    SECTION
7.04.    Trustee's
Disclaimer.

    

    The
Trustee makes no representation as to the validity or adequacy of this Indenture
or the Securities and the recitals contained herein and in the Securities shall
be taken as statements of the Company and not of the Trustee, and the Trustee
has no responsibility for such recitals. The Trustee shall not be accountable
for the Company's use or application of the proceeds from the Securities or for
monies paid over to the Company pursuant to this Indenture, and it shall not be
responsible for any statement in the Securities other than its
authentication.

    

    SECTION
7.05.    Notice of
Defaults.

    

    If a
Default or Event of Default occurs and is continuing with respect to the
Securities of any Series and if a Responsible Officer of the Trustee has
knowledge or receives written notice of such event, the Trustee shall mail to
each Securityholder of the Securities of that Series, notice of a Default or
Event of Default within [  ] days after it occurs or, if later, after
a Responsible Officer of the Trustee has actual knowledge of such Default or
Event of Default.  Except in the case of a Default or Event of Default
in payment of principal of or interest on any Security of any Series, including
any additional interest that may become payable pursuant to Section 6.02(b), the
Trustee may withhold the notice so long as the Trustee in good faith determines
that withholding the notice is in the interests of Securityholders of that
Series.

    
      
         

      

      
        29

        
          

        

      

      
         

      

    

    SECTION
7.06.    Reports by Trustee to
Holders.

    

    Within
[  ] days after
[                                                      ]
in each year, the Trustee shall transmit by mail to all Securityholders, as
their names and addresses appear on the register kept by the Registrar, a brief
report dated as of such [], in
accordance with, and to the extent required under, TIA Section 313.

    

    A copy of
each report at the time of its mailing to Securityholders of any Series shall be
filed with the SEC and each stock exchange on which the Securities of that
Series are listed.  The Company shall promptly notify the Trustee when
Securities of any Series are listed on any stock exchange.

    

    SECTION
7.07.    Compensation and
Indemnity.

    

    The
Company shall pay to the Trustee from time to time such compensation for its
services as shall be agreed upon in writing.  The Trustee's
compensation shall not be limited by any law on compensation of a trustee of an
express trust.  The Company shall reimburse the Trustee upon request
for all reasonable out-of-pocket expenses, disbursements and advances incurred
by it.  Such expenses shall include the reasonable compensation and
expenses of the Trustee's agents, counsel and other persons not regularly in its
employ.

    

    The
Company shall indemnify, defend and hold harmless the Trustee and its officers,
directors, employees, representatives and agents, from and against and reimburse
the Trustee for any and all claims, expenses, obligations, liabilities, losses,
damages, injuries (to person, property, or natural resources), penalties, stamp
or other similar taxes, actions, suits, judgments, reasonable costs and expenses
(including reasonable attorney's and agent's fees and expenses) of whatever kind
or nature regardless of their merit, demanded, asserted or claimed against the
Trustee directly or indirectly relating to, or arising from, claims against the
Trustee by reason of its participation in the transactions contemplated hereby,
including without limitation all reasonable costs required to be associated with
claims for damages to persons or property, and reasonable attorneys' and
consultants' fees and expenses and court costs except to the extent caused by
the Trustee's negligence or willful misconduct.  The provisions of
this Section 7.07 shall survive the termination of this Agreement or the earlier
resignation or removal of the Trustee.  The Company shall defend any
claim and the Trustee shall cooperate in the defense.  The Trustee may
have separate counsel and the Company shall pay the reasonable fees and expenses
of such counsel.  The Company need not pay for any settlement made
without its consent, which consent shall not be unreasonably withheld or
delayed.  This indemnification shall apply to officers, directors,
employees, shareholders and agents of the Trustee.

    

    The
Company need not reimburse any expense or indemnify against any loss liability
incurred by the Trustee or by any officer, director, employee, shareholder or
agent of the Trustee through negligence or bad faith.

    

    To secure
the Company's payment obligations in this Section, the Trustee shall have a lien
prior to the Securities of any Series on all money or property held or collected
by the Trustee, except that held in trust to pay principal and interest on
particular Securities of that Series.

    
      
         

      

      
        30

        
          

        

      

      
         

      

    

    

    When the
Trustee incurs expenses or renders services after an Event of Default specified
in Section 6.01(f) or (g) occurs, the expenses and the compensation for the
services are intended to constitute expenses of administration under any
Bankruptcy Law.

    

    SECTION
7.08.    Replacement of
Trustee.

    

    A
resignation or removal of the Trustee and appointment of a successor Trustee
shall become effective only upon the successor Trustee's acceptance of
appointment as provided in this Section.

    

    The
Trustee may resign with respect to the Securities of one or more Series by so
notifying the Company.  The Holders of a majority in principal amount
of the Securities of any Series may remove the Trustee with respect to that
Series by so notifying the Trustee and the Company.  The Company may
remove the Trustee with respect to Securities of one or more Series
if:

    

    (a)           the
Trustee fails to comply with Section 7.10;

    

    (b)           the
Trustee is adjudged a bankrupt or an insolvent or an order for relief is entered
with respect to the Trustee under any Bankruptcy Law;

    

    (c)           a
Custodian or public officer takes charge of the Trustee or its property;
or

    

    (d)           the
Trustee becomes incapable of acting.

    

    If the
Trustee resigns or is removed or if a vacancy exists in the office of Trustee
for any reason, the Company shall promptly appoint a successor
Trustee.  Within one year after the successor Trustee takes office,
the Holders of a majority in principal amount of the then outstanding Securities
may appoint a successor Trustee to replace the successor Trustee appointed by
the Company.

    

    If a
successor Trustee with respect to the Securities of any one or more Series does
not take office within [  ] days after the retiring Trustee resigns or
is removed, the retiring Trustee, the Company or the Holders of at least
[  ]% in principal amount of the Securities of the applicable Series
may petition any court of competent jurisdiction for the appointment of a
successor Trustee.

    

    A
successor Trustee shall deliver a written acceptance of its appointment to the
retiring Trustee and to the Company.  Immediately after that, the
retiring Trustee shall transfer all property held by it as Trustee to the
successor Trustee subject to the lien provided for in Section 7.07, and subject
to the payment of any and all amounts then due and owing to the retiring
Trustee, the resignation or removal of the retiring Trustee shall become
effective, and the successor Trustee shall have all the rights, powers and
duties of the Trustee with respect to each Series of Securities for which it is
acting as Trustee under this Indenture.  A successor Trustee shall
mail a notice of its succession to each Securityholder of each such
Series.  Notwithstanding replacement of the Trustee pursuant to this
Section 7.08, the Company's obligations under

    
      
         

      

      
        31

        
          

        

      

      
         

      

    

    Section
7.07 hereof shall continue for the benefit of the retiring trustee with respect
to expenses and liabilities incurred by it prior to such
replacement.

    

    SECTION
7.09.    Successor Trustee by Merger,
etc.

    

    If the
Trustee consolidates with, merges or converts into, or transfers all or
substantially all of its corporate trust business to, another corporation, the
successor corporation without any further act shall be the successor Trustee
with the same effect as if the successor Trustee had been named as the Trustee
herein.

    

    SECTION
7.10.    Eligibility;
Disqualification.

    

    This
Indenture shall always have a Trustee who satisfies the requirements of TIA
Section 310(a)(1), (2) and (5).  The Trustee shall always have a
combined capital and surplus of at least $25,000,000 as set forth in its most
recent published annual report of condition.  The Trustee shall comply
with TIA Section 310(b).

    

    SECTION
7.11.    Preferential Collection of
Claims Against Company.

    

    The
Trustee is subject to TIA Section 311(a), excluding any creditor relationship
listed in TIA Section 311(b).  A Trustee who has resigned or been
removed shall be subject to TTA Section 311(a) to the extent
indicated.

    

    

    ARTICLE
VIII

    

    SATISFACTION
AND DISCHARGE; DEFEASANCE

    

    SECTION
8.01.    Satisfaction and Discharge
of Indenture.

    

    This
Indenture shall upon Company Order cease to be of further effect (except as
hereinafter provided in this Section 8.01), and the Trustee, on the demand of
and at the expense of the Company, shall execute proper instruments
acknowledging satisfaction and discharge of this Indenture, when

    

    (a)           either

    

    (i)           all
Securities theretofore authenticated and delivered (other than Securities that
have been destroyed, lost or stolen and that have been replaced or paid) have
been delivered to the Trustee for cancellation; or

    

    (ii)           all
such Securities not theretofore delivered to the Trustee for cancellation have
become due and payable, or

    

              (1)           have
become due and payable, or

    

              (2)           will
become due and payable at their Stated Maturity within
[                                                                                                           ],
or

    
      
         

      

      
        32

        
          

        

      

      
         

      

    

    

              (3)           are
to be called for redemption within
[                                                                ]
under arrangements satisfactory to the Trustee for the giving of notice of
redemption by the Trustee in the name, and at the expense, of the Company,
or

    

              (4)           are
deemed paid and discharged pursuant to section 8.03, as applicable; and the
Company, in the case of (1), (2) or (3) above, has deposited or caused to be
deposited with the Trustee as trust funds in trust an amount sufficient for the
purpose of paying and discharging the entire indebtedness on such Securities not
theretofore delivered to the Trustee for cancellation, for principal and
interest to the date of such deposit (in the case of Securities which have
become due and payable on or prior to the date of such deposit) or to the Stated
Maturity or redemption date, as the case may be;

    

    (b)           the
Company has paid or caused to be paid all other sums payable hereunder by the
Company; and

    

    (c)           the
Company has delivered to the Trustee an Officers' Certificate and an Opinion of
Counsel, each meeting the applicable requirements of Sections 10.04 and 10.05
and each stating that all conditions precedent herein relating to the
satisfaction and discharge of this Indenture have been complied with and the
Trustee receives written demand from the Company to discharge.

    

    Notwithstanding
the satisfaction and discharge of this Indenture, the obligations of the Company
to the Trustee under Section 7.07, and, if money shall have been deposited with
the Trustee pursuant to clause (a) of this Section, the provisions of Sections
2.04, 2.07, 2.08, 8.01 8.02 and 8.05 shall survive.

    

    SECTION
8.02.    Application of Trust Funds;
Indemnification.

    

    (a)           Subject
to the provisions of Section 8.05, all money deposited with the Trustee pursuant
to Section 8.01, all money and U.S. Government Obligations or Foreign Government
Obligations deposited with the Trustee pursuant to Section 8.03 or 8.04 and all
money received by the Trustee in respect of U.S. Government Obligations or
Foreign Government Obligations deposited with the Trustee pursuant to Section
8.03 or 8.04, shall be held in trust and applied by it, in accordance with the
provisions of the Securities and this Indenture, to the payment, either directly
or through any Paying Agent (including the Company acting as its own Paying
Agent) as the Trustee may determine, to the persons entitled thereto, of the
principal and interest for whose payment such money has been deposited with or
received by the Trustee or to make mandatory sinking fund payments or analogous
payments as contemplated by Sections 8.03 or 8.04.

    

    (b)           The
Company shall pay and shall indemnify the Trustee and the Agents against any
tax, fee or other charge imposed on or assessed against U.S. Government
Obligations or Foreign Government Obligations deposited pursuant to Sections
8.03 or 8.04 or the interest and principal received in respect of such
obligations other than any payable by or on behalf of Holders.

    
      
         

      

      
        33

        
          

        

      

      
         

      

    

    

    (c)           The
Trustee shall, in accordance with the terms of this Indenture, deliver or pay to
the Company from time to time, upon Company Request and at the expense of the
Company any U.S. Government Obligations or Foreign Government Obligations or
money held by it pursuant to this Indenture as provided in Sections 8.03 or 8.04
which, in the opinion of a nationally recognized firm of independent certified
public accountants, expressed in a written certification thereof and delivered
to the Trustee together with such Company Request, are then in excess of the
amount thereof which then would have been required to be deposited for the
purpose for which such U.S. Government Obligations or Foreign Government
Obligations or money were deposited or received.  This provision shall
not authorize the sale by the Trustee of any U.S. Government Obligations or
Foreign Government Obligations held under this Indenture.

    

    SECTION
8.03.    Legal Defeasance of
Securities of any Series.

    

    Unless
this Section 8.03 is otherwise specified, pursuant to Section 2.02(s), to be
inapplicable to Securities of any Series, the Company shall be deemed to have
paid and discharged the entire indebtedness on all the outstanding Securities of
such Series on the [   ] day after the date of the deposit
referred to in subparagraph (d) hereof, and the provisions of this Indenture, as
it relates to such outstanding Securities of such Series, shall no longer be in
effect (and the Trustee, at the expense of the company, shall, at Company
Request, execute proper instruments acknowledging the same), except as
to:

    

    (a)           the
rights of Holders of Securities of such Series to receive, from the trust funds
described in subparagraph (d) hereof, (i) payment of the principal of and each
installment of principal of and interest on the outstanding Securities of such
Series on the Stated Maturity of such principal or installment of principal or
interest and (ii) the benefit of any mandatory sinking fund payments applicable
to the Securities of such Series on the day on which such payments are due and
payable in accordance with the terms of this Indenture and the Securities of
such Series;

    

    (b)           the
provisions of Sections 2.04, 2.07, 2.08, 2.14, 8.02, 8.03 and 8.05;
and

    

    (c)           the
rights, powers, trust and immunities of the Trustee hereunder; provided that,
the following conditions shall have been satisfied:

    

    (d)           the
Company shall have deposited or caused to be deposited irrevocably with the
Paying Agent as trust funds in trust for the purpose of making the following
payments, specifically pledged as security for and dedicated solely to the
benefit of the Holders of such Securities in the case of Securities of such
Series denominated in Dollars, cash in Dollars (or such other money or
currencies as shall then be legal tender in the United States) and/or U.S.
Government Obligations, or (ii) in the case of Securities of such Series
denominated in a Foreign Currency (other than a composite currency), money
and/or Foreign Government Obligations, which through the payment of interest and
principal in respect thereof, in accordance with their terms, will provide (and
without reinvestment and assuming no tax liability will be imposed on such
Paying Agent), not later than [   ] day before the due date of
any payment of money, an amount in cash, sufficient, in the opinion of a
nationally recognized firm of independent public accountants expressed in a
written certification thereof delivered to the Trustee and the Paying Agent, to
pay and discharge each installment of principal (including mandatory sinking
fund or analogous
payments) of and interest, if any, on all the Securities of such Series on the
dates such installments of interest or principal are due;

     

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

    

    (e)           such
deposit will not result in a breach or violation of, or constitute a default
under, this Indenture or any other agreement or instrument to which the Company
is a party or by which it is bound;

    

    (f)           no
Default or Event of Default with respect to the Securities of such Series shall
have occurred and be continuing on the date of such deposit or during the period
ending on the [    ] day after such date;

    

    (g)           the
Company shall have delivered to the Trustee an Officers' Certificate and an
Opinion of Counsel to the effect that (i) the Company has received from, or
there has been published by, the Internal Revenue Service a ruling, or (ii)
since the date of execution of this Indenture, there has been a change in the
applicable Federal income tax law, in either case to the effect that, and based
thereon such Opinion of Counsel shall confirm that, the Holders of the
Securities of such Series will not recognize income, gain or loss for Federal
income tax purposes as a result of such deposit, defeasance and discharge and
will be subject to Federal income tax on the same amount and in the same manner
and at the same times as would have been the case if such deposit, defeasance
and discharge had not occurred;

    

    (h)           the
Company shall have delivered to the Trustee an Officers' Certificate stating
that the deposit was not made by the Company with the intent of preferring the
Holders of the Securities of such Series over any other creditors of the company
or with the intent of defeating, hindering, delaying or defrauding any other
creditors of the Company;

    

    (i)           such
deposit shall not result in the trust arising from such deposit constituting an
investment company (as defined in the Investment Company Act of 1940, as
amended), or such trust shall be qualified under such Act or exempt from
regulation thereunder; and

    

    (j)           the
Company shall have delivered to the Trustee an Officers' Certificate and an
Opinion of Counsel, each stating that all conditions precedent provided for
relating to the defeasance contemplated by this Section have been complied
with.

    

    SECTION
8.04.    Covenant
Defeasance.

    

    Unless
this Section 8.04 is otherwise specified pursuant to Section 2.02(s) to be
inapplicable to Securities of any Series, on and after the
[    ] day after the date of the deposit referred to in
subparagraph (a) hereof, the Company may omit to comply with any term, provision
or condition set forth under Sections 4.02, 4.03, 4.04, 4.05, 4.06, and 5.01 as
well as any additional covenants contained in a supplemental indenture hereto
for a particular Series of Securities or a Board Resolution or an Officers'
Certificate delivered pursuant to Section 2.02(s) (and the failure to comply
with any such covenants shall not constitute a Default or Event of Default under
Section 6.01) and the occurrence of any event described in clause (e) of Section
6.01 shall not constitute a Default or Event of Default hereunder, with respect
to the Securities of such Series, provided that the following conditions shall
have been satisfied:

    
      
         

      

      
        35

        
          

        

      

      
         

      

    

    

    (a)           With
reference to this Section 8.04, the Company has deposited or caused to be
irrevocably deposited (except as provided in Section 8.02(c)) with the Paying
Agent as trust funds in trust, specifically pledged as security for, and
dedicated solely to, the benefit of the Holders of such Securities (i) in the
case of Securities of such Series denominated in Dollars, cash in Dollars (or
such other money or currencies as shall then be legal tender in the United
States) and/or U.S. Government Obligations, or (ii) in the case of Securities of
such Series denominated in a Foreign Currency (other than a composite currency),
money and/or Foreign Government Obligations, which through the payment of
interest and principal in respect thereof, in accordance with their terms, will
provide (and without reinvestment and assuming no tax liability will be imposed
on such Paying Agent), not later than [   ] day before the due
date of any payment of money, an amount in cash, sufficient, in the opinion of a
nationally recognized firm of independent certified public accountants expressed
in a written certification thereof delivered to the Paying Agent, to pay
principal and interest, if any, on and any mandatory sinking fund in respect of
the Securities of such Series on the dates such installments of interest or
principal are due;

    

    (b)           Such
deposit will not result in a breach or violation of, or constitute a default
under, this Indenture or any other agreement or instrument to which the Company
is a party or by which it is bound;

    

    (c)           No
Default or Event of Default with respect to the Securities of such Series shall
have occurred and be continuing on the date of such deposit or during the period
ending on the [    ] day after such date;

    

    (d)           the
company shall have delivered to the Trustee an Opinion of Counsel confirming
that Holders of the Securities of such Series will not recognize income, gain or
loss for federal income tax purposes as a result of such deposit and defeasance
and will be subject to federal income tax on the same amounts, in the same
manner and at the same times as would have been the case if such deposit and
defeasance had not occurred;

    

    (e)           the
Company shall have delivered to the Trustee an Officers' Certificate stating the
deposit was not made by the Company with the intent of preferring the Holders of
the Securities of such Series over any other creditors of the Company or with
the intent of defeating, hindering, delaying or defrauding any other creditors
of the Company; and

    

    (f)           The
Company shall have delivered to the Trustee an Officers' Certificate and an
Opinion of Counsel, each stating that all conditions precedent herein provided
for relating to the defeasance contemplated by this Section have been complied
with.

    

    SECTION
8.05.    Repayment to
Company.

    

    The
Paying Agent shall pay to the Company upon request any money held by them for
the payment of principal and interest that remains unclaimed for two
years.  After that, Securityholders entitled to the money must look to
the Company for payment as general creditors unless an applicable abandoned
property law designates another person and all liability of the Paying Agent
with respect to that money shall cease.

    
      
         

      

      
        36

        
          

        

      

      
         

      

    

    

    

    ARTICLE
IX

    

    AMENDMENTS
AND WAIVERS

    

    SECTION
9.01.    Without Consent of
Holders.

    

    The
Company and the Trustee may amend or supplement this Indenture or the Securities
of one or more Series without the consent of any Securityholder:

    

    (a)           to
cure any ambiguity, defect or inconsistency;

    

    (b)           to
comply with Article V;

    

    (c)           to
provide for uncertificated Securities in addition to or in place of certificated
Securities;

    

    (d)           to
make any change that does not adversely affect the rights of any
Securityholder;

    

    (e)           to
provide for the issuance of and establish the form and terms and conditions of
Securities of any Series as permitted by this Indenture;

    

    (f)           to
evidence and provide for the acceptance of appointment hereunder by a successor
Trustee with respect to the Securities of one or more Series and to add to or
change any of the provisions of this Indenture as shall be necessary to provide
for or facilitate the administration of the trusts hereunder by more than one
Trustee;

    

    (g)           to
comply with requirements of the TIA and any rules promulgated under the TIA;
and

    

    (h)           to
add to the covenants of the Company for the equal and ratable benefit of the
Holders or to surrender any right, power or option conferred upon the
Company.

    

    Any
amendment or supplement made solely to conform the provisions of this Indenture
or the Securities of any Series to the description thereof contained in the
final prospectus relating to such Series will be deemed not to adversely affect
the rights of any Holder.

    

    SECTION
9.02.    With Consent of
Holders.

    

    The
Company and the Trustee may enter into a supplemental indenture with the written
consent of the Holders of at least a majority in principal amount of the
outstanding Securities of all Series affected by such supplemental indenture,
taken together as one class (including consents obtained in connection with a
tender offer or exchange offer for the Securities of such Series), for the
purpose of adding any provisions to or changing in any manner or eliminating any
of the provisions of this Indenture or of any supplemental indenture or of modifying
in any manner the rights of the Securityholders of each such
Series.  Except as provided in Section 6.13, the Holders of at least a
majority in principal amount of the outstanding Securities of all Series
affected by such waiver by notice to the Trustee, taken together as one class
(including consents obtained in connection with a tender offer or exchange offer
for the Securities of such Series) may waive compliance by the Company with any
provision of this Indenture or the Securities with respect to such
Series.

    
      
         

      

      
        37

        
          

        

      

      
         

      

    

    

    It shall
not be necessary for the consent of the Holders of Securities under this Section
9.02 to approve the particular form of any proposed supplemental indenture or
waiver, but it shall be sufficient if such consent approves the substance
thereof.  After a supplemental indenture or waiver under this section
becomes effective, the Company shall mail to the Holders of Securities affected
thereby a notice briefly describing the supplemental indenture or
waiver.  Any failure by the Company to mail or publish such notice, or
any defect therein, shall not, however, in any way impair or affect the validity
of any such supplemental indenture or waiver.

    

    SECTION
9.03.    Limitations.

    

    Without
the consent of each Securityholder affected, an amendment or waiver may
not:

    

    (a)           change
the amount of Securities whose Holders must consent to an amendment, supplement
or waiver, except to increase any such amount or to provide that certain
provisions of this Indenture cannot be modified, amended or waived without the
consent of the Holder of each outstanding Security affected
thereby;

    

    (b)           reduce
the amount of interest, or change the interest payment time, on any
Security;

    

    (c)           waive
a redemption payment or alter the redemption provisions (other than any
alteration that would not materially adversely affect the legal rights of any
Holder under this Indenture) or the price at which the Company is required to
offer to purchase the Securities;

    

    (d)           reduce
the principal or change the Stated Maturity of any Security or reduce the amount
of, or postpone the date fixed for, the payment of any sinking fund or analogous
obligation;

    

    (e)           reduce
the principal amount payable of any Security upon Maturity;

    

    (f)           waive
a Default or Event of Default in the payment of the principal of or interest, if
any, on any Security (except a rescission of acceleration of the Securities of
any Series by the Holders of at least a majority in principal amount of the
outstanding Securities of such Series and a waiver of the payment default that
resulted from such acceleration);

    

    (g)           change
the place or currency of payment of principal of or interest, if any, on any
Security other than that stated in the Security;

    

    (h)           impair
the right of any Holder to receive payment of principal or, or

    
      
         

      

      
        38

        
          

        

      

      
         

      

    

    interest
on, the Securities of such Holder on or after the due dates
therefor;

    

    (i)           impair
the right to institute suit for the enforcement of any payment on, or with
respect to, any Security;

    

    (j)           make
any change in Sections 10.15 or 10.16;

    

    (k)           change
the ranking of the Securities; or

    

    (l)           make
any other change which is specified in a Board Resolution, a supplemental
indenture hereto or an Officers' Certificate as a limitation under this
Section.

    

    SECTION
9.04.    Compliance with Trust
Indenture Act.

    

    Every
amendment to this Indenture or the Securities of one or more Series shall be set
forth in a supplemental indenture hereto that complies with the TIA as then in
effect.

    

    SECTION
9.05.    Revocation and Effect of
Consents.

    

    Until an
amendment or waiver becomes effective, a consent to it by a Holder of a Security
is a continuing consent by the Holder and every subsequent Holder of a Security
or portion of a Security that evidences the same debt as the consenting Holder's
Security, even if notation of the consent is not made on any
Security.  However, any such Holder or subsequent Holder may revoke
the consent as to his Security or portion of a Security if the Trustee receives
the notice of revocation before the date the amendment or waiver becomes
effective.

    

    Any
amendment or waiver once effective shall bind every Securityholder of each
Series affected by such amendment or waiver unless it is of the type described
in any of clauses (a) through (g) of Section 9.03 in that case, the amendment or
waiver shall bind each Holder of a Security who has consented to it and every
subsequent Holder of a Security or portion of a Security that evidences the same
debt as the consenting Holder's Security.

    

    SECTION
9.06.    Notation on or Exchange of
Securities.

    

    If an
amendment, supplement or waiver changes the terms of a Security, the Trustee may
require the Holder of the Security to deliver it to the Trustee and the Trustee
may place an appropriate notation on the Security about the changed terms and
return it to the Holder.  Alternatively, if the Company or the Trustee
so determines, the Company shall issue and the Trustee shall authenticate upon
request new Securities of that Series that reflect the changed
terms.

    

    SECTION
9.07.    Trustee
Protected.

    

    In
executing, or accepting the additional trusts created by, any supplemental
indenture permitted by this Article or the modifications thereby of the trusts
created by this Indenture, the Trustee shall be entitled to receive, and
(subject to Section 7.01) shall be fully protected in relying upon, an Opinion
of Counsel or an Officer's Certificate, or both stating that

    
      
         

      

      
        39

        
          

        

      

      
         

      

    

    the
execution of such supplemental indenture is authorized or permitted by this
Indenture.  The Trustee shall sign all supplemental indentures, except
that the Trustee need not sign any supplemental indenture that adversely affects
its rights, duties or indemnities.

    

    SECTION
9.08.    Effect of Supplemental
Indenture.

    

    Upon the
execution of any supplemental indenture under this Article, this Indenture shall
be modified in accordance therewith, and each such supplemental indenture shall
form part of this Indenture for all purposes with respect to the relevant
Series; and every Holder of Securities of the relevant Series theretofore or
thereafter authenticated and delivered hereunder shall be bound
thereby.

    

    

    ARTICLE
X

    

    MISCELLANEOUS

    

    SECTION
10.01.  Trust Indenture Act
Controls.

    

    

    If any
provision of this Indenture limits, qualifies, or conflicts with another
provision which is required or deemed to be included in this Indenture by the
TIA, such required or deemed provision shall control.

    

    SECTION
10.02.  Notices.

    

    Any
notice or communication by the Company, the Trustee, the Paying Agent or the
Registrar to another is duly given if in writing and delivered in person or
mailed by first-class mail:

    

    if to the
Company:

    

    OceanFreight
Inc.

    80
Kifissias Avenue

    Amaroussion
GR 151 25

    + (30)
210 614 0283

    Attn:
Antonis Kandylidis

    Fax:  +
(30) 210 614 0284

    

    

    if to the
Trustee:

    

    [                      ]

    Attn:
[                      ]

    Fax:
[                      ]

    

    if to the
Registrar or Paying Agent:

    
      
         

      

      
        40

        
          

        

      

      
         

      

    

    

    [                          
]

    Attn:
[                  
]

    Fax:
[                    ]

    

    with copy
to:

    

    [                           ]

    Attn:
[                   ]

    Fax:
[                    ]

    

    The
Company, the Trustee and each Agent by notice to each other may designate
additional or different addresses for subsequent notices or
communications.

    

    Any
notice or communication to a Securityholder shall be mailed by first-class mail
to his address shown on the register kept by the Registrar.  Failure
to mail a notice or communication to a Securityholder of any Series or any
defect in it shall not affect its sufficiency with respect to other
Securityholders of that or any other Series.

    

    If a
notice or communication is mailed or published in the manner provided above,
within the time prescribed, it is duly given, whether or not the Securityholder
receives it.

    

    If the
company mails a notice or communication to Securityholders, it will mail a copy
to the Trustee and each Agent at the same time.

    

    Whenever
a notice is required to be given by the Company, such notice may be given by the
Trustee or Registrar on the Company's behalf (and the Company will make any
notice it is required to give to Holders available on its website).

    

    SECTION
10.03.  Communication by Holders
with Other Holders.

    

    Securityholders
of any Series may communicate pursuant to TIA Section 312(b) with other
Securityholders of that Series or any other Series with respect to their rights
under this Indenture or the Securities of that Series or all
Series.  The Company, the Trustee, the Registrar and anyone else shall
have the protection of TIA Section 312(c).

    

    SECTION
10.04.  Certificate and Opinion as
to Conditions Precedent.

    

    Upon any
request or application by the Company to the Trustee to take any action under
this Indenture, the Company shall furnish to the Trustee:

    

    (a)           an
Officers' Certificate stating that, in the opinion of the signers, all
conditions precedent, if any, provided for in this Indenture relating to the
proposed action have been complied with; and

    

    (b)           an
Opinion of Counsel stating that, in the opinion of counsel, all such conditions
precedent (including any covenants, compliance with which constitutes a
condition

    
      
         

      

      
        41

        
          

        

      

      
         

      

    

    precedent)
have been complied with.

    

    SECTION
10.05.  Statements Required in
Certificate or Opinion.

    

    Each
certificate or opinion with respect to compliance with a condition or covenant
provided for in this Indenture (other than a certificate provided pursuant to
TIA Section 314(a)(4)) shall comply with the provisions of TIA Section 314(e)
and shall include:

    

    (a)           a
statement that the person making such certificate or opinion has read such
covenant or condition;

    

    (b)           a
brief statement as to the nature and scope of the examination or
investigation  upon which the statements or
opinions  contained in such certificate or opinion are
based;

    

    (c)           a
statement that, in the opinion of such person, he has made such examination or
investigation as is necessary to enable him to express an informed opinion as to
whether or not such covenant or condition has been complied with;
and

    

    (d)           a
statement as to whether or not, in the opinion of such person, such condition or
covenant has been complied with.

    

    provided, however, that with
respect to matters of fact an Opinion of Counsel may rely on an Officers'
Certificate or certificates of public officials.

    

    SECTION
10.06.  Record Date for Vote or
Consent of Holders.

    

    The
Company (or, in the event deposits have been made pursuant to Section 11.02, the
Trustee) may set a record date for purposes of determining the identity of
Holders entitled to vote or consent to any action by vote or consent authorized
or permitted under this Indenture, which record date shall not be more than
[  ] days prior to the date of the commencement of solicitation of
such action.  Notwithstanding the provisions of Section 9.05, if a
record date is fixed, those persons who were Holders of Securities at the close
of business on such record date (or their duly designated proxies), and only
those persons, shall be entitled to take such action by vote or consent or to
revoke any vote or consent previously given, whether or not such persons
continue to be Holders after such record date.

    

    SECTION
10.07.  Rules by Trustee and
Agents.

    

    The
Trustee may make reasonable rules for action by or a meeting of Securityholders
of one or more Series.  Any Agent may make reasonable rules and set
reasonable requirements for its functions.

    

    SECTION
10.08.  Legal
Holidays.

    

    Unless
otherwise provided by Board Resolution, Officers' Certificate or supplemental
indenture for a particular Series, a "Legal Holiday" is any day that is not a
Business
Day.  If a payment date is a Legal Holiday at a place of payment,
payment may be made at that place on the next succeeding day that is not a Legal
Holiday, and no interest shall accrue for the intervening
period.

    
      
         

      

      
        42

        
          

        

      

      
         

      

    

    

    SECTION
10.09.  No
Recourse Against Others.

    

    A
director, officer, employee or stockholder, as such, of the Company shall not
have any liability for any obligations of the Company under the Securities or
the Indenture or for any claim based on, in respect of or by reason of such
obligations or their creation.  Each Securityholder by accepting a
Security waives and releases all such liability.  The waiver and
release are part of the consideration for the issue of the
Securities.

    

    SECTION
10.10.  Counterparts.

    

    This
Indenture may be executed in any number of counterparts and by the parties
hereto in separate counterparts, each of which when so executed shall be deemed
to be an original and all of which taken together shall constitute one and the
same agreement.

    

    SECTION
10.11.  Governing Laws and
Submission to Jurisdiction.

    

    THIS
INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW
YORK EXCLUDING ANY RULE OF LAW THAT WOULD CAUSE THE APPLICATION OF THE
LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF NEW
YORK.

    

    The
Company agrees that any legal suit, action or proceeding arising out of or based
upon this Indenture may be instituted in any federal or state court sitting in
New York City, and, to the fullest extent permitted by law, waives any objection
which it may now or hereafter have to the laying of venue of any such
proceeding, and irrevocably submits to the non-exclusive jurisdiction of such
court in any suit, action or proceeding.  The Company, as long as any
Securities remain outstanding or the parties hereto have any obligation under
this Indenture, shall have an authorized agent in the United States upon whom
process may be served in any such legal action or proceeding. Service of process
upon such agent and written notice of such service mailed or delivered to it
shall to the extent permitted by law be deemed in every respect effective
service of process upon it in any such legal action or proceeding and, if it
fails to maintain such agent, any such process or summons may be served by
mailing a copy thereof by registered mail, or a form of mail substantially
equivalent thereto, addressed to it at its address as provided for notices
hereunder. The Company hereby appoints Seward & Kissel LLP, One Battery Park
Plaza, New York, NY,  10004, as its agent for such purposes, and
covenants and agrees that service of process in any legal action or proceeding
may be made upon it at such office of such agent.

    

    SECTION
10.12.  No
Adverse Interpretation of Other Agreements.

    

    This
Indenture may not be used to interpret another indenture, loan or debt agreement
of the Company or a Subsidiary.  Any such indenture, loan or debt
agreement may not be used to interpret this Indenture.

    
      
         

      

      
        43

        
          

        

      

      
         

      

    

    

    SECTION
10.13.  Successors.

    

    All
agreements of the Company in this Indenture and the Securities shall bind its
successor.  All agreements of the Trustee in this Indenture shall bind
its successor.

    

    SECTION
10.14.  Severability.

    

    In case
any provision in this Indenture or in the Securities shall be invalid, illegal
or unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.

    

    SECTION
10.15.  Table of Contents, Headings,
Etc.

    

    The Table
of Contents, Cross Reference Table, and headings of the Articles and Sections of
this Indenture have been inserted for convenience of reference only, are not to
be considered a part hereof, and shall in no way modify or restrict any of the
terms or provisions hereof.

    

    SECTION
10.16.  Securities in a Foreign
Currency or in ECU.

    

    Unless
otherwise specified in a Board Resolution, a supplemental indenture hereto or an
Officers' Certificate delivered pursuant to Section 2.02 of this Indenture with
respect to a particular Series of Securities, whenever for purposes of this
Indenture any action may be taken by the Holders of a specified percentage in
aggregate principal amount of Securities of all Series or all Series affected by
a particular action at the time outstanding and, at such time, there are
outstanding Securities of any Series which are denominated in a coin or currency
other than Dollars (including ECUs), then the principal amount of Securities of
such Series which shall be deemed to be outstanding for the purpose of taking
such action shall be that amount of Dollars that could be obtained for such
amount at the Market Exchange Rate at such time.  For purposes of this
Section 10.16, "Market Exchange Rate" shall mean the noon Dollar buying rate in
New York City for cable transfers of that currency as published by the Federal
Reserve Bank of New York; provided, however, in the case of ECUs, Market
Exchange Rate shall mean the rate of exchange determined by the Commission of
the European Union (or any successor thereto) as published in the Official
Journal of the European Union (such publication or any successor publication,
the "Journal").  If such Market Exchange Rate is not available for any
reason with respect to such currency, the Trustee shall use, without liability
on its part, such quotation of the Federal Reserve Bank of New York or, in the
case of ECUs, the rate of exchange as published in the Journal, as of the most
recent available date, or quotations or, in the case of ECUs, rates of exchange
from one or more major banks in The City of New York or in the country of issue
of the currency in question or, in the case of ECUs, in Luxembourg or such other
quotations or, in the case of ECUs, rates of exchange as the Trustee, upon
consultation with the Company, shall deem appropriate.  The provisions
of this paragraph shall apply in determining the equivalent principal amount in
respect of Securities of a Series denominated in currency other than Dollars in
connection with any action taken by Holders of Securities pursuant to the terms
of this Indenture.

    
      
         

      

      
        44

        
          

        

      

      
         

      

    

    All
decisions and determinations of the Trustee regarding the Market Exchange Rate
or any alternative determination provided for in the preceding paragraph shall
be in its sole discretion and shall, in the absence of manifest error, be
conclusive to the extent permitted by law for all purposes and irrevocably
binding upon the Company and all Holders.

    

    SECTION
10.17.  Judgment
Currency.

    

    The
Company agrees, to the fullest extent that it may effectively do so under
applicable law, that (a) if for the purpose of obtaining judgment in any court
it is necessary to convert the sum due in respect of the principal of or
interest or other amount on the Securities of any Series (the "Required
Currency") into a currency in which a judgment will be rendered (the "Judgment
Currency"), the rate of exchange used shall be the rate at which in accordance
with normal banking procedures the Trustee could purchase in The City of New
York the Required Currency with the Judgment Currency on the day on which final
unappealable judgment is entered, unless such day is not a New York Banking Day,
then, the rate of exchange used shall be the rate at which in accordance with
normal banking procedures the Trustee could purchase in The City of New York the
Required Currency with the Judgment Currency on the New York Banking Day
preceding the day on which final unappealable judgment is entered and (b) its
obligations under this Indenture to make payments in the Required Currency (i)
shall not be discharged or satisfied by any tender, any recovery pursuant to any
judgment (whether or not entered in accordance with subsection (a)), in any
currency other than the Required Currency, except to the extent that such tender
or recovery shall result in the actual receipt, by the payee, of the full amount
of the Required Currency expressed to be payable in respect of such payments,
(ii) shall be enforceable as an alternative or additional cause of action for
the purpose of recovering in the Required Currency the amount, if any, by which
such actual receipt shall fall short of the full amount of the Required Currency
so expressed to be payable, and (iii) shall not be affected by judgment being
obtained for any other sum due under this Indenture.  For purposes of
the foregoing, "New York Banking Day" means any day except a Saturday, Sunday or
a legal holiday in The City of New York on which banking institutions are
authorized or required by law, regulation or executive order to
close.

    

    
      	
               
      

            	
              SECTION
      10.18.

            	
              Compliance with
      Applicable Anti-Terrorism and Money Laundering
      Regulations.

            

    

    

    In order
to comply with the laws, rules, regulations and executive orders in effect from
time to time applicable to banking institutions, including those relating to the
funding of terrorist activities and money laundering ("Applicable Law"), the
Trustee is required to obtain, verify and record certain information relating to
individuals and entities which maintain a business relationship with the
Trustee.  Accordingly, each of the parties agree to provide to the
Trustee, upon its request from time to time such identifying information and
documentation as may be available for such party in order to enable the Trustee
to comply with the Applicable Law.

    

    
      
         

      

      
        45

        
          

        

      

      
         

      

    

    
      ARTICLE
XI

      

      SINKING
FUNDS

            SECTION
11.01.  Applicability of
Article.

    

    The
provisions of this Article shall be applicable to any sinking fund for the
retirement of the Securities of a Series, except as otherwise permitted or
required by any form of Security of such Series issued pursuant to this
Indenture.

    

    The
minimum amount of any sinking fund payment provided for by the terms of the
Securities of any Series is herein referred to as a "mandatory sinking fund
payment" and any other amount provided for by the terms of Securities of such
Series is herein referred to as an "optional sinking fund payment." If provided
for by the terms of Securities of any Series, the cash amount of any sinking
fund payment may be subject to reduction as provided in Section
11.02.  Each sinking fund payment shall be applied to the redemption
of Securities of any Series as provided for by the terms of the securities of
such Series.

    

    SECTION
11.02.  Satisfaction of Sinking Fund
Payments with Securities.

    

    The
Company may, in satisfaction of all or any part of any sinking fund payment with
respect to the Securities of any Series to be made pursuant to the terms of such
Securities (1) deliver outstanding Securities of such Series to which such
sinking fund payment is applicable (other than any of such Securities previously
called for mandatory sinking fund redemption) and (2) apply as credit Securities
of such Series to which such sinking fund payment is applicable and which have
been redeemed either at the election of the Company pursuant to the terms of
such Series of Securities (except pursuant to any mandatory sinking fund) or
through the application of permitted optional sinking fund payments or other
optional redemptions pursuant to the terms of such Securities, provided that
such Securities have not been previously so credited.  Such Securities
shall be received by the Registrar, together with an Officers' Certificate with
respect thereto, not later than [  ] days prior to the date on which
the Registrar begins the process of selecting Securities for redemption, and
shall be credited for such purpose by the Registrar at the price specified in
such Securities for redemption through operation of the sinking fund and the
amount of such sinking fund payment shall be reduced accordingly.  If
as a result of the delivery or credit of Securities in lieu of cash payments
pursuant to this Section 11.02, the principal amount of Securities of such
Series to be redeemed in order to exhaust the aforesaid cash payment shall be
less than $[], the Registrar need not call Securities of such Series for
redemption, except upon receipt of a Company Order that such action be taken,
and such cash payment shall be held by the Paying Agent and applied to the next
succeeding sinking fund payment, provided, however, that the Paying Agent shall
from time to time upon receipt of a Company Order pay over and deliver to the
Company any cash payment so being held by the Paying Agent upon delivery by the
Company to the Registrar of Securities of that Series purchased by the Company
having an unpaid principal amount equal to the cash payment required to be
released to the Company.

    

    
      
         

      

      
        46

        
          

        

      

      
         

      

    

     

    
      SECTION
11.03.  Redemption of Securities for
Sinking Fund.

      

      Not less
than [  ] days (unless otherwise indicated in the Board Resolution,
supplemental indenture hereto or Officers' Certificate in respect of a
particular Series of Securities) prior to each sinking fund payment date for any
Series of Securities, the Company will deliver to the Trustee and the Paying
Agent an Officers' Certificate specifying the amount of the next
ensuing mandatory sinking fund payment for that Series pursuant to the terms of
that Series, the portion thereof, if any, which is to be satisfied by payment of
cash and the portion thereof, if any, which is to be satisfied by delivering and
crediting of Securities of that Series pursuant to Section 11.02., and the
optional amount, if any, to be added in cash to the next ensuing mandatory
sinking fund payment, and the Company shall thereupon be obligated to pay the
amount therein specified.  Not less than [  ] days (unless
otherwise indicated in the Board Resolution, Officers' Certificate or
supplemental indenture in respect of a particular Series of Securities) before
each such sinking fund payment date the Trustee shall select the Securities to
be redeemed upon such sinking fund payment date in the manner specified in
Section 3.02 and cause notice of the redemption thereof to be given in the name
of and at the expense of the Company in the manner provided in Section
3.03.  Such notice having been duly given, the redemption of such
Securities shall stated in Sections 3.04, 3.05 and 3.06.

    

    

    [The remainder of this page is
intentionally left blank]

    
      
         

      

      
        47

        
          

        

      

      
         

      

    

    

    IN
WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly
executed as of the day and year first above written.

    

    

    

    

    

    OCEANFREIGHT
INC.

    

    

    By:__________________________

    

    Name:

    Its:

    

    

    [                      ]

    as
Trustee

    

    By:__________________________

    

    Name:

    Its:

    

    

    By:__________________________

    

    Name:

    Its:

    

    

    [                      ]

    as
Registrar and Paying Agent

    

    

    By:__________________________

    

    Name:

    Its:

    

    

    By:__________________________

    

    Name:

    Its:

     

    SK 25754 0002
1055018

    
      
         

      

      
        48creditagmt.htm

 

Exhibit 10.64

 

 

Second Amended and Restated Credit Agreement

 

dated as of

 

January 11, 2010,

 

among

 

ITT Educational Services, Inc.,

 

The Lenders Party Hereto

 

and

 

JPMorgan Chase Bank, National Association,

as Administrative Agent

 

Credit Agreement (format)

1924042

  

  

  

	  	
Table of Contents

	  	
Section
	
Heading
	
Page

	  	  	  	  
	
ARTICLE I
	
DEFINITIONS
	
1

	  	  	  
	  	
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
	
18

	  	  	  	  
	
ARTICLE II
	
THE CREDITS
	
18

	  	  	  
	  	
Section 2.01.
	
Commitments
	
18

	  	
Section 2.02.
	
Loans and Borrowings
	
18

	  	
Section 2.03.
	
Requests for Borrowings
	
19

	  	
Section 2.04.
	
Reserved
	
19

	  	
Section 2.05.
	
Borrowing of Secured Loans and Unsecured Loans; Security for Secured Loans
	
19

	  	
Section 2.06.
	
Reserved
	
20

	  	
Section 2.07.
	
Funding of Borrowings
	
20

	  	
Section 2.08.
	
Interest Elections
	
21

	  	
Section 2.09.
	
Termination and Reduction of Commitments
	
22

	  	
Section 2.10.
	
Repayment of Loans; Evidence of Debt
	
22

	  	
Section 2.11.
	
Prepayment of Loans
	
23

	  	
Section 2.12.
	
Fees
	
24

	  	
Section 2.13.
	
Interest
	
24

	  	
Section 2.14.
	
Alternate Rate of Interest
	
25

	  	
Section 2.15.
	
Increased Costs
	
25

	  	
Section 2.16.
	
Break Funding Payments
	
26

	  	
Section 2.17.
	
Taxes
	
27

	  	
Section 2.18.
	
Payments Generally; Pro Rata Treatment; Sharing of Set-offs
	
28

	  	
Section 2.19.
	
Mitigation Obligations; Replacement of Lenders
	
29

	  	
Section 2.20.
	
Defaulting Lenders
	
30

	  	  	  	  
	
ARTICLE III
	
REPRESENTATIONS AND WARRANTIES
	
30

	  	  	  
	  	
Section 3.01.
	
Organization; Powers
	
30

	  	
Section 3.02.
	
Authorization; Enforceability
	
31

	  	
Section 3.03.
	
Governmental Approvals; No Conflicts
	
31

	  	
Section 3.04.
	
Financial Condition; No Material Adverse Change
	
31

	  	
Section 3.05.
	
Properties
	
31

	  	
Section 3.06.
	
Litigation and Environmental Matters
	
31

	  	
Section 3.07.
	
Compliance with Laws and Agreements
	
32

	  	
Section 3.08.
	
Investment Company Status
	
32

	  	
Section 3.09.
	
Taxes
	
32

	  	
Section 3.10.
	
ERISA
	
32

	  	
Section 3.11.
	
Disclosure
	
32

	  	
Section 3.12.
	
Margin Stock
	
33

	  	
Section 3.13.
	
Insolvency
	
33

	  	
Section 3.14.
	
Material Subsidiaries
	
33

	  	  	  	  
	
ARTICLE IV
	
CONDITIONS
	
33

	  	  	  
	  	
Section 4.01.
	
Effective Date
	
33

	  	
Section 4.02.
	
Each Borrower
	
34

	  	
Section 4.03.
	
Secured Loans
	
34

	  	
Section 4.04.
	
Conditions Subsequent to Effective Date
	
34

	  	  	  	  
	
ARTICLE V
	
AFFIRMATIVE COVENANTS
	
35

	  	  	  
	  	
Section 5.01.
	
Financial Statements and Other Information
	
35

	  	
Section 5.02.
	
Notices of Material Events
	
36

	  	
Section 5.03.
	
Existence; Conduct of Business
	
36

	  	
Section 5.04.
	
Payment of Obligations
	
36

	  	
Section 5.05.
	
Maintenance of Properties; Insurance
	
36

	  	
Section 5.06.
	
Books and Records; Inspection Rights
	
37

	  	
Section 5.07.
	
Compliance with Laws
	
37

	  	
Section 5.08.
	
Use of Proceeds
	
37

	  	
Section 5.09.
	
Trade Accounts
	
37

	  	
Section 5.10.
	
Banking Relationship
	
37

	  	
Section 5.11.
	
Financial Covenants
	
37

	  	
Section 5.12.
	
Guaranties
	
37

	  	
Section 5.13.
	
Additional Guarantors
	
38

	  	  	  	  
	
ARTICLE VI
	
NEGATIVE COVENANTS
	
38

	  	  	  
	  	
Section 6.01.
	
Reserved
	
38

	  	
Section 6.02.
	
Liens
	
38

	  	
Section 6.03.
	
Fundamental Changes
	
39

	  	
Section 6.04.
	
Investments, Loans, Advances and Acquisitions
	
40

	  	
Section 6.05.
	
Swap Agreements
	
40

	  	
Section 6.06.
	
Restricted Payments
	
40

	  	
Section 6.07.
	
Transactions with Affiliates
	
41

	  	
Section 6.08.
	
Restrictive Agreements
	
41

	  	
Section 6.09.
	
Change Name or Place of Business
	
41

	  	
Section 6.10.
	
Permissible Investments
	
41

	  	  	  	  
	
ARTICLE VII
	
EVENTS OF DEFAULT
	
42

	  	  	  
	
ARTICLE VIII
	
THE ADMINISTRATIVE AGENT
	
44

	  	  	  
	
ARTICLE IX
	
MISCELLANEOUS
	
46

	  	  	  
	  	
Section 9.01.
	
Notices
	
46

	  	
Section 9.02.
	
Waivers; Amendments
	
47

	  	
Section 9.03.
	
Expenses; Indemnity; Damage Waiver
	
47

	  	
Section 9.04.
	
Successors and Assigns
	
48

	  	
Section 9.05.
	
Survival
	
52

	  	
Section 9.06.
	
Counterparts; Integration; Effectiveness
	
52

	  	
Section 9.07.
	
Severability
	
52

	  	
Section 9.08.
	
Right of Setoff
	
52

	  	
Section 9.09.
	
Governing Law; Jurisdiction; Consent to Service of Process
	
53

	  	
Section 9.10.
	
Waiver of Jury Trial
	
53

	  	
Section 9.11.
	
Headings
	
53

	  	
Section 9.12.
	
Confidentiality
	
53

	  	
Section 9.13.
	
Interest Rate Limitation
	
54

	  	
Section 9.14.
	
USA PATRIOT Act.
	
54

	  	
Section 9.15.
	
Amendment and Restatement
	
55

	  	  	  	  
	
Schedules:
	  	  
	  	  	  
	
Schedule 2.01
	
Commitments
	  
	
Schedule 3.06
	
Disclosed Matters
	  
	
Schedule 3.14
	
Material Subsidiaries
	  
	
Schedule 6.02
	
Existing Liens
	  
	
Schedule 6.08
	
Existing Restrictions
	  
	  	  	  
	
Exhibits:
	  	  
	  	  	  
	
Exhibit A
	
Form of Assignment and Assumption
	  
	
Exhibit B
	
Form of Opinion of Borrower’s Counsel
	  
	
Exhibit C
	
Form of Promissory Note
	  
	
Exhibit D
	
Form of Security Agreement
	  
	
Exhibit E
	
Form of Guaranty
	  
	
Exhibit F-1
	
Form of Quarterly Compliance Certificate
	  
	
Exhibit F-2
	
Form of Monthly Compliance Certificate
	  

  

  

  

 

Second Amended and Restated Credit Agreement dated as of January 11, 2010 (as supplemented, amended, and amended and restated, the “Agreement”), among ITT
Educational Services, Inc., the Lenders party hereto, and JPMorgan Chase Bank, National Association, as Administrative Agent.

 

Recitals

 

Whereas, the Borrower and JPMorgan Chase Bank, National Association (in its capacity as the Bank under the hereinafter defined Existing Agreement, the “Existing Lender”), are currently parties to that certain
Amended and Restated Credit Agreement dated as of December 17, 2007 (as amended, the “Existing Agreement”).  The Borrower and the Existing Lender desire to amend the Existing Agreement to (i) provide for a syndicate of lenders thereunder, with the Existing Lender acting as administrative agent, (ii) extend the maturity date of the Existing Agreement, and (iii) make certain other amendments and modifications thereto,
and, for the sake of clarity and convenience, to restate the Existing Agreement as so amended.

 

Now, Therefore, in consideration of the foregoing, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and subject to the terms and conditions hereof, the parties hereto hereby agree that the Existing Agreement shall
be amended and restated in its entirety (but shall not constitute a novation) to read 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 comprising such Borrowing, are bearing interest at a rate determined by reference to the Alternate Base Rate.

 

“Accreditation” means the status of public recognition granted by any Accrediting Body to an educational institution that meets the Accrediting Body’s standards and requirements, which approval is required for the educational institution to participate in Title
IV Programs.

 

“Accrediting Body” means any entity or organization recognized by the DOE pursuant to 34 CFR Section 602 et seq.

 

“Acquired Business” means the entity or assets acquired by the Borrower or a Material Subsidiary in an Acquisition after the Effective Date.

 

“Acquisition” means any transaction or series of related transactions for the purpose of or resulting, directly or indirectly, in (a) the acquisition of all or substantially all of the assets of a Person, or of any business or division of a Person, (b) the acquisition
of in excess of 50% of the capital stock, partnership interests, membership interests or equity of any Person (other than a Person that is a Subsidiary), or otherwise causing any Person to become a Subsidiary, or (c) a merger or consolidation or any other combination with another Person (other than a Person that is a Subsidiary) provided that the Borrower or the Subsidiary is the surviving entity.

 

“Adjusted LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest Period, 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.

 

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

 

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

 

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

 

“Agreement” is defined in the introductory paragraph hereof. 

 

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

 

“Applicable Percentage” means, with respect to any Lender, the percentage of the total Commitments represented by such Lender’s Commitment; provided that in the case of Section 2.20 when a Defaulting
Lender shall exist, “Applicable Percentage” shall mean the percentage of the total Commitments (disregarding any Defaulting Lender’s Commitment) represented by such Lender’s Commitment.  If the Commitments have terminated or expired, the Applicable Percentages shall be determined based upon the Commitments most recently in effect, giving effect to any assignments and to any Lender’s status as a Defaulting Lender at
the time of determination.

 

“Applicable Rate” means, for any day, with respect to any ABR Loan or Eurodollar Loan, or with respect to the facility fees payable hereunder, as the case may be, the applicable rate per annum set forth below under the caption “ABR Spread”, “Eurodollar
Spread” or “Facility Fee Rate”, as the case may be, based upon the Security Status of such Loan:

 

	
Security Status
	
ABR Spread
	
Eurodollar

Spread
	
Facility Fee

Rate

	
Secured
	
0.0%
	
0.475%
	
0.30%

	
Unsecured
	
0.0%
	
2.00%
	
0.30%

 

Each change in the Applicable Rate shall apply during the period commencing on the effective date of a change in Security Status, and ending on the date immediately preceding the effective date of the next such change. 

 

“Approved Fund” has the meaning assigned to such term in Section 9.04.

 

“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.

 

“Availability Period” means the period from and including the Effective Date to but excluding the earlier of the Maturity Date and the date of termination of the Commitments.

 

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

 

“Borrower” means ITT Educational Services, Inc., a Delaware corporation.

 

“Borrowing” means Loans of the same Type, made, converted or continued on the same date and, in the case of Eurodollar Loans, as to which a single Interest Period is in effect.

 

“Borrowing Request” means a request by the Borrower for a 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 be deemed to have occurred if (a) any Person or group of Persons (other than (i) the Borrower, (ii) any Subsidiary or (iii) any employee or director benefit plan or stock plan of the Borrower or a Subsidiary or any trustee or fiduciary with respect
to any such plan when acting in that capacity or any trust related to any such plan) shall have acquired beneficial ownership of shares representing more than 25% of the combined voting power represented by the outstanding Equity Interests of the Borrower (within the meaning of Section 13(d) or 14(d) of the Securities Exchange Act of 1934, as amended and the applicable rules and regulations thereunder) or (b) during any period of 12 consecutive months, commencing before and ending after, or commencing after the
Effective Date, individuals who on the first day of such period were directors of the Borrower (together with any replacement or additional directors who were nominated or elected by a majority of directors then in office) cease to constitute a majority of the Board of Directors of the Borrower.

 

“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 2.15(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.

 

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

 

“Collateral” means all properties, rights, interests, and privileges from time to time subject to the Liens granted to the Administrative Agent, or any security trustee therefor, by the Collateral Documents. 

 

“Collateral Documents” means the Security Agreement and the Control Agreement, and, if any, all other mortgages, deeds of trust, security agreements, pledge agreements, assignments, financing statements and other documents as shall from time to time secure or relate to
the obligations of the Borrower hereunder or any part thereof.  

 

“Collateral Requirement” is defined in Section 2.05(b) hereof. 

 

“Commitment” means, with respect to each Lender, the commitment of such Lender to make Loans hereunder, expressed as an amount representing the maximum aggregate amount of such Lender’s Revolving Credit Exposure hereunder, as such commitment may be (a) reduced
from time to time pursuant to Section 2.09, 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 2.01, or in the Assignment and Assumption pursuant to which such Lender shall have assumed its Commitment, as applicable.  The initial aggregate amount of the Lenders’ Commitments is $150,000,000.  The initial aggregate amount of the Lenders’
Commitment with respect to Line of Credit A is $100,000,000.  The initial aggregate amount of the Lenders’ Commitment with respect to Line of Credit B is $50,000,000.

 

“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; provided,
however, that a Person shall not be deemed to have Control solely by virtue of such Person’s status as an officer or employee of such Person.  “Controlling” and “Controlled” have meanings correlative thereto.

 

“Control Agreement” means that certain Control Agreement dated as of August 30, 2007, among the Existing Lender, the Borrower, and the Intermediary, as the same may be amended, modified, supplemented or restated from time to time.

 

“Credit Contact” has the meaning set forth in the related Administrative Questionnaire.

 

“Cure Period” is defined in Section 2.05(b) hereof. 

 

“Custodial Account” means the Custodial Account established by the Borrower with the Intermediary in which the Administrative Agent, on behalf of the Lenders, has been granted a security interest to secure the obligations of the Borrower hereunder, which will contain
investment property subject to the Security Agreement and the Control Agreement.

 

“DOE” means the United States Department of Education.

 

“DOE Ratio” means the composite score of the Borrower’s equity, primary reserve and net income ratios described in 34 C.F.R. Sections 668.171(b)(1) and Section 668.172 and appendices A and B to Subpart L of 34 C.F.R. of Section 668, provided
that if at any time the Borrower is required by the DOE to report such composite score on a school-by-school or other basis, their “DOE Ratio” shall also refer to the composite score for each school or other Person required to be reported to the DOE.

 

“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.

 

“Defaulting Lender” means any Lender, as determined by the Administrative Agent, that has (a) failed to fund any portion of its Loans within three Business Days of the date required to be funded by it hereunder, (b) notified the Borrower, the Administrative Agent, or
any Lender in writing that it does not intend to comply with any of its funding obligations under this Agreement or has made a public statement to the effect that it does not intend to comply with its funding obligations under this Agreement or under other agreements in which it commits to extend credit, (c) otherwise failed to pay over to the Administrative Agent or any other Lender any other amount required to be paid by it hereunder within three Business Days of the date when due, unless the subject of a good
faith dispute, or (d) (i) become or is insolvent or has a parent company that has become or is insolvent or (ii) become the subject of a bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business or custodian, appointed for it, or has taken any action in furtherance of, or indicating its consent to, approval of or acquiescence in any such proceeding or appointment
or has a parent company that has become the subject of a bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business or custodian appointed for it, or has taken any action in furtherance of, or indicating its consent to, approval of or acquiescence in any such proceeding or appointment.

 

“Disclosed Matters” means the actions, suits and proceedings and the environmental matters disclosed in Schedule 3.06.

 

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

 

“EBITDA” means, for any period, net income for such period plus (a) without duplication and to the extent deducted in determining net income for such period, the sum of (i) interest expense for such period, (ii) income tax expense for such period, (iii) all
amounts attributable to depreciation and amortization expense for such period, (iv) any extraordinary charges for such period and (v) any other non-cash charges for such period (but excluding any non-cash charge in respect of an item that was included in net income in a prior period), minus (b) without duplication and to the extent included in net income, any extraordinary gains and any non-cash items of income for such period, all calculated for the Borrower on a consolidated basis in accordance
with GAAP. 

 

“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.

 

“Eligible Line of Business” means any business engaged in as of the date of this Agreement by the Borrower or any of its Material Subsidiaries, and any other business not prohibited by Section 6.03(b) hereof.

 

“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 Material Subsidiary directly or indirectly resulting from or based
upon (a) violation of any Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the release or threatened release of any Hazardous Materials into the environment or (e) any contract, agreement or other consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing.

 

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

 

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

 

“ERISA Affiliate” means any trade or business (whether or not incorporated) that, together with the 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
receipt by the Borrower or any ERISA Affiliate from the PBGC or a plan administrator of any notice relating to an intention to terminate any Plan or Plans or to appoint a trustee to administer any Plan; (f) the incurrence by the Borrower or any of its ERISA Affiliates of any liability with respect to the withdrawal or partial withdrawal from any Plan or Multiemployer Plan; or (g) the receipt by the Borrower or any ERISA Affiliate of any notice, or the receipt by any Multiemployer Plan from the Borrower or
any ERISA Affiliate of any notice, concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected to be, insolvent or in reorganization, within the meaning of Title IV of ERISA.

 

“Eurodollar”, when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to the Adjusted 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 2.19(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 designates a new lending office) or is attributable to such Foreign Lender’s failure to comply with Section 2.17(e), except to the extent that such Foreign Lender (or its assignor, if any) was entitled, at the time of designation of a new lending office (or assignment), to receive additional amounts from the Borrower with respect to such withholding tax
pursuant to Section 2.17(a).

 

“Existing Agreement” is defined in the recitals hereto. 

 

“Existing Lender” is defined in the recitals hereto. 

 

“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.

 

“Financial Statements” means the balance sheets, income statements and statements of cash flows of Borrower, and any accompanying notes or other disclosures to such statements. 

 

“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.

 

“Guarantor” and “Guarantors” has the meaning set forth in Section 5.12 hereof.

 

“Guaranty” and “Guaranties” has the meaning set forth in Section 5.12 hereof.

 

“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.

 

“Hostile Acquisition” means the acquisition of the capital stock or other equity interests of a Person through a tender offer or similar solicitation of the owners of such capital stock or other equity interests which has not been approved (prior to such acquisition)
by resolutions of the Board of Directors of such Person or by similar action if such Person is not a corporation, or as to which such approval has been withdrawn.

 

“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 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 obligations of such person in respect of Swap Agreements.  The Indebtedness of any Person shall include the Indebtedness of any other entity (including any partnership in which such Person is a general partner) to the extent such Person is liable therefor as a result of such Person’s ownership interest in or other relationship with such entity, except to the extent the terms of such Indebtedness provide that such Person is not liable therefor; provided,
however, that Indebtedness shall not include (i) amounts in respect of tuition that is shown as deferred revenue on the Borrower’s Financial Statements, (ii) the amount of any Guarantee or payment obligation in connection with any Private Education Loan Program that is not required to be recorded as a liability on the Financial Statements, and (iii) obligations in respect of letters of credit that secure or provide a source of payment for a Guarantee or payment obligation undertaken
in connection with any Private Education Loan Program.

 

“Indemnified Taxes” means Taxes other than Excluded Taxes.

 

“Interest Election Request” means a request by the Borrower to convert or continue a Borrowing in accordance with Section 2.08.

 

“Interest Payment Date” means (a) with respect to any ABR Loan, the last day of each March, June, September, and December, and (b) with respect to any Eurodollar Loan, the last day of the Interest Period applicable to the Borrowing of which such Loan is a part.

 

“Interest Period” means with respect to any Eurodollar Borrowing, the period commencing on the date of such Borrowing and ending on the numerically corresponding day in the calendar month that is one month thereafter; 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 Borrowing initially shall be the date on which such Borrowing is made and thereafter shall be the effective date of the most recent conversion or continuation of such Borrowing.

 

“Intermediary” means JPMorgan Chase Bank, National Association, in its capacity as the Intermediary under the Control Agreement, and its successors and assigns in such capacity. 

 

“Lenders” means the Persons listed on Schedule 2.01 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.  

 

“Leverage Ratio” means, on any date, the ratio of (a) total Indebtedness on such date to (b) EBITDA for the period of four consecutive fiscal quarters ended on such date. 

 

“LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest Period, the rate appearing on Page 3750 of the Dow Jones Market Service (or on any successor or substitute page of such Service, or any successor to or substitute for such Service, providing
rate quotations comparable to those currently provided on such page of such Service, as determined by the Administrative Agent 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 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” with respect to such Eurodollar Borrowing for such Interest Period shall be the rate (rounded upwards, if necessary, to the next 1/16 of 1%) 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.

 

“Line of Credit A” means the Commitment of the Lenders to make Loans to the Borrower under such Line of Credit up to the aggregate principal amount of $100,000,000.  

 

“Line of Credit B” means the Commitment of the Lenders to make Loans to the Borrower under such Line of Credit up to the aggregate principal amount of $50,000,000. 

 

“Line of Credit” and “Lines of Credit” means, individually or collectively, as applicable, Line of Credit A and Line of Credit B.  

 

“Loan Documents” means this Agreement, the promissory notes evidencing the Loans (if any), the Guaranties, the Collateral Documents, and each other instrument or document to be delivered hereunder or thereunder or otherwise in connection therewith. 

 

“Loans” means the loans made by the Lenders to the Borrower pursuant to Section 2.3 hereof.  

 

“Material Adverse Effect” means a material adverse effect on (a) the business, assets, operations, prospects or condition, financial or otherwise, of the Borrower and the Subsidiaries taken as a whole, (b) the ability of the Borrower and the Material Subsidiaries,
taken as a whole, to perform the material obligations under this Agreement and the other Loan Documents, or (c) the rights of or benefits available to the Administrative Agent or the Lenders under this Agreement or any of the other Loan Documents.

 

“Material Indebtedness” means Indebtedness (other than the Loans), or obligations in respect of one or more Swap Agreements, of any one or more of the Borrower and its Material Subsidiaries in an aggregate principal amount exceeding $20,000,000.  For purposes
of determining Material Indebtedness, the “principal amount” of the obligations of the Borrower or any Material Subsidiary in respect of any Swap Agreement at any time shall be the maximum aggregate amount (giving effect to any netting agreements) that the Borrower or such Material Subsidiary would be required to pay if such Swap Agreement were terminated at such time.

 

“Material Subsidiary” means any Subsidiary that, directly or indirectly through a Subsidiary (a) owns assets with a book value in excess of 5% of the book value of the total consolidated assets of the Borrower and its Subsidiaries measured as of the last day of the most
recently completed fiscal quarter for which financial statements have been delivered pursuant to Section 5.01, (b) generated revenues in excess of 5% of the revenues of the Borrower and its Subsidiaries, taken as a whole, for the most recently completed four fiscal quarter period for which financial statements have been delivered pursuant to Section 5.01, or (c) is required to be a Guarantor pursuant to Section 5.13 hereof.  

 

“Maturity Date” means May 1, 2012, or such earlier date on which the Commitment is terminated in whole pursuant to the terms hereof. 

 

“Mode Change” means each and every conversion from Secured Loans to Unsecured Loans pursuant to Section 2.05(a) hereof.

 

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

 

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

 

“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.

 

“Participant” has the meaning set forth in Section 9.04.

 

“Permissible Investments” means the investments specified as Permissible Investments in the Investment Guidelines attached to the Investment Management Agreement dated as of December 22, 2006, between the Borrower and J.P. Morgan Investment Management Inc., as amended
pertaining to the Custodial Account which also meet the Maturity Guidelines and Quality Guidelines specified therein, without amendment unless consented to by the Required Lenders. 

 

“Permitted Acquisition” means any Acquisition with respect to which all of the following conditions shall have been satisfied:

 

(a)the Acquired Business is an Eligible Line of Business;

 

(b)the Acquisition shall not be a Hostile Acquisition;

 

(c)if a new Subsidiary is formed or acquired as a result of or in connection with the Acquisition and such Subsidiary is a Material Subsidiary, the Borrower shall have complied with the requirements of Section 5.12 hereof in connection
therewith; 

 

(d)after giving effect to the Acquisition and any Borrowing in connection therewith, no Default or Event of Default shall exist, including with respect to the financial covenants contained in Section 5.11 hereof on a pro forma basis; 

 

(e)if the Acquired Business is an “eligible institution” as defined in 34 C.F.R. Sections 600.2 and 600.5 and the Total Consideration for the Acquisition exceeds $25,000,000, such Acquired Business is in good standing with
all applicable Accrediting Bodies (it being understood that, for purposes hereof, an Acquired Business shall be deemed not to be in good standing if it shall have received an order, notice, or other decision from an Accrediting Body in a jurisdiction in which such Acquired Business provides post secondary education, to the effect that the authority of such Acquired Business to provide postsecondary education in such jurisdiction is or will be withdrawn, revoked, or terminated); and

 

(f)the Borrower shall have delivered to the Administrative Agent a certificate of a Financial Officer satisfactory to the Administrative Agent to the effect of the matters set forth in clause (a) through (e) above (it being understood
that such certificate shall include reasonable calculations supporting the matters set forth therein).

 

“Permitted Encumbrances” means:

 

(a)Liens imposed by law for Taxes that are not yet due or are not yet required to be paid under 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 not yet required to be paid under in compliance with Section 5.04;

 

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

 

(d)deposits to secure the performance of bids, trade contracts, leases, statutory obligations, surety and appeal bonds, performance bonds and other obligations of a like nature, in each case in the ordinary course of business;

 

(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 do not materially detract from the value of the affected property or interfere with
the ordinary conduct of business of the Borrower or any Subsidiary; and

 

(g)Liens on assets the fair market value of which does not exceed $15,000,000 to secure Guarantee or payment obligations undertaken in connection with any Private Education Loan Program.

 

“Permitted Investments” means:

 

(a)direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the United States of America (or by any agency thereof to the extent such obligations are backed by the full faith and credit
of the United States of America), in each case maturing within one year from the date of acquisition thereof;

 

(b)investments in commercial paper maturing within 270 days from the date of acquisition thereof and having, at such date of acquisition, the highest credit rating obtainable from S&P or from Moody’s;

 

(c)investments in certificates of deposit, banker’s acceptances and time deposits maturing within 180 days from the date of acquisition thereof issued or guaranteed by or placed with, and money market deposit accounts issued or offered
by, any domestic office of any commercial bank organized under the laws of the United States of America or any State thereof which has a combined capital and surplus and undivided profits of not less than $100,000,000;

 

(d)fully collateralized repurchase agreements with a term of not more than 30 days for securities described in clause (a) above and entered into with a financial institution satisfying the criteria described in clause (c) above; 

 

(e)money market funds that (i) comply with the criteria set forth in Securities and Exchange Commission Rule 2a-7 under the Investment Company Act of 1940, (ii) are rated AAA by S&P and Aaa by Moody’s and (iii) have portfolio
assets of at least $5,000,000,000;

 

(f)Permissible Investments; 

 

(g)certificates of deposit in an aggregate initial principal amount not exceeding $10,000,000 issued by Eli Lilly Federal Credit Union for the account of ESI Service Corp.; and

 

(h)demand deposit accounts maintained in the ordinary course of business.

 

“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 ERISA Affiliate is (or, if such
plan were terminated, would under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA.

 

“Prime Rate” means the rate of interest per annum publicly announced from time to time by JPMorgan Chase Bank as its prime rate in effect at its office located at 270 Park Avenue, New York, New York; each change in the Prime Rate shall be effective from and including
the date such change is publicly announced as being effective.  

 

“Private Education Loan Program” means a program under which private education loans are provided to current or former students to fund a portion of a student’s costs of attendance at any school owned or operated by the Borrower or any of its Subsidiaries.

 

“Register” has the meaning set forth in Section 9.04.

 

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

 

“Required Lenders” means, at any time, Lenders having Revolving Credit Exposures and unused Commitments representing at least 66-2/3% of the sum of the total Revolving Credit Exposures and unused Commitments
at such time; provided that at any time there are two or fewer Lenders, “Required Lenders” shall mean all Lenders.

 

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

 

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

 

“S&P” means Standard & Poor’s.

 

“Secured Loan” and “Secured Loans” means, individually or collectively, as applicable, those Loans for which the Borrower has elected to borrow on a secured basis pursuant to Section 2.05(a) hereof,
and which are secured under the terms of the Security Agreement. 

 

“Security Agreement” means that certain Amended and Restated Security Agreement with Respect to Custodial Account and Investment Property in the form of Exhibit D hereto dated as of the date hereof among the Borrower, the Administrative Agent and the Intermediary,
as the same may be amended, modified, supplemented or restated from time to time.

 

“Security Status” means, as to any Loan, whether such Loan is a Secured Loan or an Unsecured Loan. 

 

“Significant Regulatory Event” means, as the context may require, either (a) failure of the Borrower or any Material Subsidiary to maintain its status as an “eligible institution,” as defined in 34 C.F.R. Sections 600.2 and 600.5, (b) a failure of the Borrower
or any Material Subsidiary to maintain its eligibility to participate in Title IV Programs (including, without limitation, any suspension or termination in Title IV funding), or (c) a failure of the Borrower or any Material Subsidiary to maintain in effect any of its Accreditations, which failure of any of the types described in clauses (a), (b) and (c) (each a “Relevant Failure”), when taken together with all other such failures of any of the
types described in clauses (a), (b) or (c) occurring during the fiscal quarter in which such Relevant Failure occurred (the “Relevant Quarter”) and the three fiscal quarters of the Borrower immediately preceding the Relevant Quarter, affects educational institutions of the Borrower or any Material Subsidiary which, in aggregate, (x) contributed more than 20% of the consolidated EBITDA of the Borrower and its Subsidiaries for the most recent
four complete fiscal quarters of the Borrower or (y) comprise more than 20% of the consolidated total assets of the Borrower and is Subsidiaries as of the end of the most recent complete fiscal quarter of the Borrower. 

 

“Solvent” means, with respect to any Person, on any date of determination, that on such date the fair value of the assets of such a Person is greater than the total amount of liabilities of such Person.

 

“Statutory Reserve Rate” means 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 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 of which securities or other ownership
interests representing more than 50% of the equity or more than 50% of the ordinary voting power or, in the case of a partnership, more than 50% of the general partnership interests are, as of such date, owned, controlled or held by the parent or one or more subsidiaries of the parent or by the parent and one or more subsidiaries of the parent.

 

“Subsidiary” means any subsidiary of the Borrower.

 

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

 

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

 

“Title IV” means Title IV of the Higher Education Act of 1965, as amended.

 

“Title IV Programs” means the Title IV Programs listed in 34 C.F.R. Section 668.1(c).

 

“Total Consideration” means, with respect to an Acquisition, the sum (but without duplication) of (a) cash paid in connection with any Acquisition, (b) indebtedness payable to the seller in connection with such Acquisition, (c) the fair market value of
any equity securities, including any warrants or options therefor, delivered in connection with any Acquisition, (d) the present value of covenants not to compete entered into in connection with such Acquisition or other future payments which are required to be made over a period of time and are not contingent upon the Borrower or its Subsidiary meeting financial performance objectives (exclusive of salaries paid in the ordinary course of business) (discounted at the ABR), but only to the extent not included
in clause (a), (b) or (c) above, and (e) the amount of indebtedness assumed in connection with such Acquisition.

 

“Transactions” means the execution, delivery and performance by the Borrower of this Agreement and the other Loan Documents, 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 comprising such Borrowing, is determined by reference to the Adjusted LIBO Rate, or the Alternate Base Rate.

 

“Unsecured Loan” and “Unsecured Loans” means, individually or collectively, as applicable, those Loans for which the Borrower has elected to borrow on an unsecured basis pursuant to Section 2.05(a) hereof,
and which are not secured under the terms of the Security Agreement.  

 

“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 Type (e.g., a “Eurodollar Loan”).  Borrowings also may be classified and referred to by Type (e.g., a “Eurodollar Borrowing”).

 

Section 1.03. Terms Generally.  The definitions of terms herein shall apply equally to the
singular and plural forms of the terms defined.  Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms.  The words “include”, “includes” and “including” shall be deemed to be followed by the phrase “without limitation”.  The word “will” shall be construed to have the same meaning and effect as the word “shall”.  Unless the context requires
otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein), (b) any reference herein to any Person shall be construed to include such Person’s successors and assigns, (c) the words “herein”, “hereof”
and “hereunder”, and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (d) all references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement and (e) the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible
assets and properties, including cash, securities, accounts and contract rights.  

 

Section 1.04. Accounting Terms; GAAP.  Except as otherwise expressly provided herein, all
terms of an accounting or financial nature shall be construed in accordance with GAAP, as in effect from time to time; provided that, if the 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 amendment to any provision hereof for such purpose), regardless of whether any such notice is given before or after such change in GAAP or in the application thereof, then such provision shall be interpreted on the basis of GAAP as in effect and applied immediately before such change shall have become effective until  such notice shall have been withdrawn or such provision  amended in accordance herewith.

 

Article II

 

 

The Credits

 

Section 2.01. Commitments.  Subject to the terms and conditions set forth herein, each Lender
agrees to make 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, (b) the sum of the total Revolving Credit Exposures of all Lenders exceeding the total Commitments, or (c) the sum of the total Revolving Credit Exposures with respect to any Line of Credit exceeding the total Commitment available with respect to such Line of Credit.  Within
the foregoing limits and subject to the terms and conditions set forth herein, the Borrower may borrow, prepay and reborrow Loans.  

 

Section 2.02. Loans and Borrowings.  (a) Each Loan shall be made as part of a Borrowing
consisting of Loans made by the Lenders ratably in accordance with their respective Commitments under Line of Credit A or Line of Credit B, as applicable.  The obligations of each Lender hereunder shall be several and not joint.  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.

 

(b)Subject to the terms and provisions hereof, each Borrowing shall be comprised entirely of ABR Loans or Eurodollar Loans as the Borrower may request in accordance herewith.  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)At the commencement of each Interest Period for any Eurodollar Borrowing, such Borrowing shall be in an aggregate amount that is an integral multiple of $1,000,000 and not less than $5,000,000.  At the time that each ABR Borrowing
is made, such Borrowing shall be in an aggregate amount that is an integral multiple of $1,000,000 and not less than $1,000,000.  Borrowings of more than one Type may be outstanding at the same time; provided that there shall not at any time be more than a total of six (6) Eurodollar Borrowings outstanding.  

 

(d)Notwithstanding any other provision of this Agreement, the Borrower shall not be entitled to request, or to elect to convert to or continue, any Eurodollar Borrowing if the Interest Period requested with respect thereto would end after the
Maturity Date.

 

Section 2.03. Requests for Borrowings.  To request a Borrowing, the Borrower shall notify
the Administrative Agent of such request by telephone (a) in the case of a 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 an 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)whether such Borrowing is being made under Line of Credit A or Line of Credit B; 

 

(v)whether such Borrowing is for Secured Loans or Unsecured Loans; and

 

(vi)the location and number of the Borrower’s account to which funds are to be disbursed, which shall comply with the requirements of Section 2.07.

 

If no election as to the Type of Borrowing is specified, then the requested Borrowing shall be a Eurodollar Borrowing.  If no election as to Line of Credit A or Line of Credit B is specified, then the required Borrowing shall be made first under Line of Credit B, up to the aggregate Commitment under Line of Credit B,
and then under Line of Credit A.  If no election as to Secured Loans or Unsecured Loans is specified, then the requested Borrowing shall be for Unsecured Loans.  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. Reserved.  

 

Section 2.05. Borrowing of Secured Loans and Unsecured Loans; Security for Secured Loans.  (a)  The
Loans made under Line of Credit A shall at all times be either Secured Loans or Unsecured Loans.  The Loans made under Line of Credit B shall at all times be either Secured Loans or Unsecured Loans.  The Borrower may elect to borrow Secured Loans or Unsecured Loans under either or both of the Lines of Credit.  Advances outstanding under the Existing Agreement (as defined therein) on the Effective Date shall constitute Secured Loans
hereunder.  At any time the Borrower has Secured Loans outstanding under either of the Lines of Credit, the Borrower, upon not fewer than ten (10) days prior written notice to the Administrative Agent, may elect to borrow Unsecured Loans under the relevant Line of Credit, and on the effective date of such election (so long as no Default has occurred and is continuing) the entire outstanding amount of Secured Loans under such Line of Credit shall be deemed to have been paid by an Unsecured Loan
in such amount made under such Line of Credit.  At any time the Borrower has Unsecured Loans outstanding under either of the Lines of Credit, the Borrower, upon not fewer than ten (10) days prior written notice to the Administrative Agent, may elect to borrow Secured Loans under the relevant Line of Credit, and on the effective date of such election (subject to satisfaction of all conditions in this Agreement to the making of Secured Loans), the entire outstanding amount of Unsecured Loans under
such Line of Credit shall be deemed to have been paid by a Secured Loan in such amount made under such Line of Credit.  The effective date of each such election will be the tenth (10th) day following delivery of such written election by the Borrower to the Administrative Agent.  

 

(b)Secured Loans shall at all times be secured under the terms of the Security Agreement.  So long as any Loans are Secured Loans, the outstanding principal amount of Secured Loans shall not exceed 95% of the fair market value of
investment property in the Custodial Account subject to the Security Agreement which constitute Permissible Investments (the “Collateral Requirement”).  So long as no Event of Default has occurred and is continuing, if the Collateral Requirement is not satisfied for any period of ten (10) consecutive days (the “Cure Period”) after notice from the Administrative Agent
to the Borrower that the Collateral Requirement is not satisfied, the Borrower shall be deemed to have elected to convert such Secured Loans to Unsecured Loans, and such deemed election shall be immediately effective as of the close of the Administrative Agent’s business on the last day of the Cure Period.  If the Borrower maintains Borrowings of Secured Loans under both Lines of Credit, and the Collateral Requirement is satisfied as to one, but not both Lines of Credit, the Administrative Agent
shall implement this Section 2.05(b) so as to maximize the Secured Loans. 

 

Section 2.06. Reserved.  

 

Section 2.07. Funding of Borrowings.  (a) Each Lender shall make each Loan to be made
by it hereunder on the proposed date thereof by wire transfer of immediately available funds by 12:00 noon, New York City time, to the account of the Administrative Agent most recently designated by it for such purpose by notice to the Lenders.  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 Indianapolis, Indiana, and designated by the
Borrower in the applicable Borrowing Request.

 

(b)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 greater of the Federal Funds Effective Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation or (ii) in the case of the Borrower, the greater of the Federal Funds Effective Rate and a rate determined by the Administrative Agent in accordance with
banking industry rules on interbank compensation.  If such Lender pays such amount to the Administrative Agent, then such amount shall constitute such Lender’s Loan included in such Borrowing.

 

Section 2.08. Interest Elections.  (a)  Each Borrowing initially shall be of the
Type specified in the applicable Borrowing Request.  Thereafter, the Borrower may elect to convert such Borrowing to a different Type or to continue such Borrowing, 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 comprising such Borrowing, and the Loans comprising each such portion shall be considered a separate
Borrowing.  

 

(b)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 the Borrower were requesting
a 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)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 (ii) and (iii) below shall be specified for each resulting Borrowing);

 

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

 

(iii)whether the resulting Borrowing is to be an ABR Borrowing or a Eurodollar Borrowing.

 

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

 

(e)If the Borrower fails to deliver a timely Interest Election Request with respect to a Eurodollar Borrowing prior to the end of the Interest Period applicable thereto, then, unless such Borrowing is repaid as provided herein, at the end of
such Interest Period such Borrowing shall be continued as a Eurodollar Borrowing for an immediately succeeding Interest Period.  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 Borrowing may be converted to or continued as a Eurodollar Borrowing and (ii) unless repaid, each Eurodollar
Borrowing shall be converted to an ABR Borrowing at the end of the Interest Period applicable thereto.

 

Section 2.09. Termination and Reduction of Commitments.  (a)  Unless previously
terminated, the Commitments shall terminate on the Maturity Date.  

 

(b)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 $1,000,000 and not less than $1,000,000; 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 2.11, the sum of the Revolving Credit Exposures would exceed the total Commitments, or the aggregate principal amount of Loans outstanding under either Line of Credit would exceed the amount of the Commitment available under such Line of Credit.

 

(c)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.  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 2.10. Repayment of Loans; Evidence of Debt.  (a) The Borrower hereby unconditionally
promises to pay to the Administrative Agent for the account of each Lender the then unpaid principal amount of each Loan and all other amounts and obligations owing to the Administrative Agent and the Lenders under this Agreement and the other Loan Documents on the Maturity Date.

 

(b)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.

 

(c)The Administrative Agent shall maintain accounts in which it shall record (i) the amount of each Loan made hereunder, the Type thereof and the Interest Period applicable thereto, (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 hereunder for the account of the Lenders and each Lender’s share thereof.

 

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

 

(e)Any Lender may request that Loans made by it be evidenced by a promissory note.  In such event, 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 the form of Exhibit C hereto.  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 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 2.11. Prepayment of Loans.  (a)  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 prior notice in accordance with paragraph (b) of this Section.

 

(b)The Borrower shall notify the Administrative  Agent by telephone (confirmed by telecopy) of any prepayment hereunder (i) in the case of prepayment of a Eurodollar Borrowing, not later than 11:00 a.m., New York City time, three
Business Days before the date of prepayment, or (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.  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 2.09, then such notice of prepayment may be revoked if such notice of termination is revoked in accordance with Section 2.09.  Promptly following receipt of any such notice relating to a Borrowing, the Administrative Agent shall advise the Lenders of the contents thereof.   Each partial prepayment of any Borrowing shall be in an amount that would be permitted in the case of an advance of a Borrowing of the same Type as
provided in Section 2.02.  Each prepayment of a 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 2.13, and any loss, cost or expense to the extent required by Section 2.16.

 

Section 2.12. Fees.  (a)  The Borrower agrees to pay to the Administrative Agent
for the account of each Lender a facility fee, which shall accrue at the Applicable Rate on the daily amount of the Commitment of such Lender (whether used or unused) during the period from and including the Effective Date to but excluding the date on which such Commitment terminates.  Accrued facility fees shall be payable in arrears on the last day of March, June, September and December of each year and on the date on which the Commitments terminate, commencing on the first such date to occur after
the date hereof.  All facility fees shall be computed on the basis of a year of 360 days and shall be payable for the actual number of days elapsed (including the first day but excluding the last day).

 

(b)The 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)The Borrower agrees to pay to the Administrative Agent for its own account, on the date of each Mode Change such amount separately agreed upon between the Borrower and the Administrative Agent.

 

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

 

Section 2.13. Interest.  (a) The Loans comprising each ABR Borrowing shall bear
interest at the Alternate Base Rate plus the Applicable Rate.

 

(b)The Loans comprising each Eurodollar Borrowing shall bear interest at the Adjusted LIBO Rate for the Interest Period in effect for such Borrowing plus the Applicable Rate.

 

(c)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 in the preceding paragraphs of this Section 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.

 

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

 

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

 

Section 2.14. Alternate Rate of Interest.  If prior to the commencement of any 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 for such Interest Period; or

 

(b)the Administrative Agent is advised by the Required Lenders that the Adjusted LIBO Rate for such Interest Period will not adequately and fairly reflect the cost to such Lenders (or Lender) of making or maintaining their Loans (or its Loan)
included in such Eurodollar 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 Borrowing to, or continuation of any Borrowing as, a Eurodollar Borrowing shall be ineffective, and (ii) if any Borrowing Request requests a Eurodollar Borrowing, such Borrowing shall be made as an ABR Borrowing.

 

Section 2.15. Increased Costs.  (a)  If any Change in Law shall:

 

(i)impose, modify or deem applicable any reserve, special deposit or similar requirement against assets of, deposits with or for the account of, or credit extended by, any Lender (except any such reserve requirement 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 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 of maintaining its obligation to make any such Loan) or to increase the cost to such Lender 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)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)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)Failure or delay on the part of any Lender to demand compensation pursuant to this Section shall not constitute a waiver of such Lender’s right to demand such compensation; provided that
the Borrower shall not be required to compensate a Lender pursuant to this Section for any increased costs or reductions incurred more than 270 days 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; provided further that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then
the 270-day period referred to above shall be extended to include the period of retroactive effect thereof.

 

Section 2.16. Break Funding Payments.  In the event of (a) the payment of any principal of
any Eurodollar Loan other than on the last day of an Interest Period applicable thereto (including as a result of an Event of Default but excluding any payment made by the Borrower pursuant to Section 2.07(b) hereof), (b) the conversion of any Eurodollar Loan other than on the last day of the Interest Period applicable thereto, (c) the failure to borrow, convert, continue or prepay any Eurodollar Loan on the date specified in any notice delivered pursuant hereto (regardless of whether such notice may be
revoked under Section 2.11(b) and is revoked in accordance therewith), or (d) the assignment of any Eurodollar Loan other than on the last day of the Interest Period applicable thereto as a result of a request by the Borrower pursuant to Section 2.19, then, in any such event, the Borrower shall compensate each Lender for the loss, cost and expense attributable to such event.  Such loss, cost or expense to any Lender shall be deemed to include an amount determined by such Lender to be the excess,
if any, of (i) the amount of interest which would have accrued on the principal amount of such Loan had such event not occurred, at the Adjusted LIBO Rate that would have been applicable to such Loan, for the period from the date of such event to the last day of the then current Interest Period therefor (or, in the case of a failure to borrow, convert or continue, for the period that would have been the Interest Period for such Loan), over (ii) the amount of interest which would accrue on such principal amount
for such period at the interest rate which such Lender would bid were it to bid, at the commencement of such period, for dollar deposits of a comparable amount and period from other banks in the eurodollar market.  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 2.17. Taxes.  (a) 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 the Lenders
(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)In addition, the Borrower shall pay any Other Taxes to the relevant Governmental Authority in accordance with applicable law.

 

(c)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 paid by the Administrative Agent or such Lender, as the case
may be, on or with respect to any payment by or on account of any obligation of the Borrower hereunder (including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts payable under this Section) and any penalties, interest and reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority.  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)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)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 the Borrower (with a copy to the Administrative Agent), at the time or times prescribed by applicable law, such properly completed and executed documentation prescribed by applicable law or reasonably requested by the Borrower as will permit such payments to be made without withholding or at a reduced rate.

 

(f)If the Administrative Agent or a Lender determines, in its sole discretion, that it has received a refund of any Taxes or Other Taxes as to which it has been indemnified by the Borrower or with respect to which the Borrower has paid additional
amounts pursuant to this Section 2.17, it shall pay over such refund to the Borrower (but only to the extent of indemnity payments made, or additional amounts paid, by the Borrower under this Section 2.17 with respect to the Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket expenses of the Administrative Agent or such Lender and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund); provided,
that the Borrower, upon the request of the Administrative Agent or such Lender, agrees to repay the amount paid over to the Borrower (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to the Administrative Agent or such Lender in the event the Administrative Agent or such Lender is required to repay such refund to such Governmental Authority. This Section shall not be construed to require the Administrative Agent or any Lender to make available its tax returns (or any
other information relating to its taxes which it deems confidential) to the Borrower or any other Person. 

 

Section 2.18. Payments Generally; Pro Rata Treatment; Sharing of Set-offs.  (a)  The
Borrower shall make each payment required to be made by it hereunder (whether of principal, interest or fees, or of amounts payable under Section 2.15, 2.16 or 2.17, or otherwise) prior to 12:00 noon, New York City time, on the date when due, in immediately available funds, without set-off or counterclaim.  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 pursuant to Sections 2.15, 2.16, 2.17 and 9.03 shall be made directly to the Persons entitled thereto.  The Administrative Agent shall distribute any such payments received by it for the account of any other Person to the appropriate recipient promptly following receipt thereof.  If any payment hereunder shall be due on a
day that is not a Business Day, the date for payment shall be extended to the next succeeding Business Day, and, in the case of any payment accruing interest, interest thereon shall be payable for the period of such extension.  All payments hereunder shall be made in dollars.  

 

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

 

(c)If any Lender shall, by exercising any right of set-off or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of its Loans resulting in such Lender receiving payment of a greater proportion of the
aggregate amount of its Loans and accrued interest thereon than the proportion received by any other Lender, then the Lender receiving such greater proportion shall purchase (for cash at face value) participations in the 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 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 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 Subsidiary or Affiliate thereof (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.

 

(d)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 the 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 greater of the Federal Funds Effective Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation.

 

(e)If any Lender shall fail to make any payment required to be made by it pursuant to Section 2.07(b), 2.18(d) or 9.03(c), then the Administrative Agent may, in its discretion (notwithstanding any contrary provision hereof), apply any
amounts thereafter received by the Administrative Agent for the account of such Lender to satisfy such Lender’s obligations under such Sections until all such unsatisfied obligations are fully paid, in any order as determined by the Administrative Agent in its discretion.

 

Section 2.19. Mitigation Obligations; Replacement of Lenders.  (a) If any Lender requests
compensation under Section 2.15, or if the Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.17, 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 2.15 or 2.17, 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)If any Lender requests compensation under Section 2.15, or if the Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.17, or if any Lender
defaults in its obligation to fund Loans hereunder, or if any Lender becomes a Defaulting Lender, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in Section 9.04), all its interests, rights and obligations under this Agreement 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, 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, 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 2.15 or payments required to be made pursuant to Section 2.17, 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. 

 

Section 2.20. Defaulting Lenders.  Notwithstanding any provision of this Agreement to the
contrary, if any Lender becomes a Defaulting Lender, then the following provisions apply for so long as such Lender is a Defaulting Lender:

 

(a)fees shall cease to accrue on the Commitment of such Defaulting Lender pursuant to Section 2.12(a); and

 

(b)the Commitment and Revolving Credit Exposure of such Defaulting Lender shall not be included in determining whether all Lenders or the Required Lenders have taken or may take any action hereunder (including any consent to any amendment
or waiver pursuant to Section 9.02), provided that any waiver, amendment or modification requiring the consent of all Lenders or each affected Lender which affects such Defaulting Lender differently than other affected Lenders shall require the consent of such Defaulting Lender, including, without limitation, Section 9.02(b)(i).

 

Article III

 

 

Representations and Warranties

 

The Borrower represents and warrants to the Lenders that: 

 

Section 3.01. Organization; Powers.  Each of the Borrower and its Material Subsidiaries is
duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, has all requisite power and authority to carry on its business as now conducted and, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to 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, stockholder action.  This Agreement and the other Loan Documents have been duly executed and delivered by the Borrower and constitute a legal, valid and binding obligation of the Borrower, enforceable in accordance with their respective terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless
of whether considered in a proceeding in equity or at law.

 

Section 3.03. Governmental Approvals; No Conflicts.  The Transactions (a) do not require
any consent or approval of, registration or filing with, or any other action by, any Governmental Authority, except such as have been obtained or made and are in full force and effect, (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 Material 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 Material Subsidiaries or its assets, or give rise to a right thereunder to require any payment to be made by the Borrower or any of its Material Subsidiaries, and (d) will not result in the creation or imposition of any Lien on any asset of the Borrower or any of its Material Subsidiaries (except as otherwise permitted hereby).

 

Section 3.04. Financial Condition; No Material Adverse Change.  (a) 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, 2008, reported on by PricewaterhouseCoopers, independent public accountants, and (ii) as of and for the fiscal quarter and the portion of the fiscal year ended September 30, 2009, certified by its chief financial officer.  Such financial statements present fairly, in all material respects, the
financial position and results of operations and cash flows of the Borrower and its consolidated Subsidiaries as of such dates and for such periods in accordance with GAAP, subject to year-end audit adjustments and the absence of footnotes in the case of the statements referred to in clause (ii) above.

 

(b)Since December 31, 2008, there has been no material adverse change in the business, assets, operations, prospects or condition, financial or otherwise, of the Borrower and its Material Subsidiaries, taken as a whole.

 

Section 3.05. Properties.  Each of the Borrower and its Material Subsidiaries has good title
to, or valid leasehold interests in or valid license to use, all its real and personal property material to its business, except for minor defects in title that do not interfere with its ability to conduct its business as currently conducted or to utilize such properties for their intended purposes.  

 

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

 

(b)Except for the Disclosed Matters and except with respect to any other matters that, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect, neither the Borrower nor any of its Material 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.

 

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

 

Section 3.07. Compliance with Laws and Agreements.  Each of the Borrower and its Material
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 Company Status.  Neither the Borrower nor any of its Material Subsidiaries
is an “investment company” as defined in, or subject to regulation under, the Investment Company Act of 1940.

 

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

 

Section 3.10. ERISA.  No ERISA Event has occurred or is reasonably expected to occur that,
when taken together with all other such ERISA Events for which liability is reasonably expected to occur, could reasonably be expected to result in a Material Adverse Effect.  

 

Section 3.11. Disclosure.  Except for matters set forth in periodic reports and other materials
filed by the Borrower from time to time with the Securities and Exchange Commission, or any successor thereto, and that are publicly available, no agreement, instrument or corporate or other restriction to which the Borrower or any of its Material Subsidiaries is subject, or any other matter known to the Borrower, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect.  None of the reports, financial statements, certificates or other information furnished
by or on behalf of the Borrower to the Administrative Agent or any Lender in connection with the negotiation of this Agreement or delivered hereunder (as modified or supplemented by other information so furnished) contains any material misstatement of fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided that, with respect to projected financial
information, the Borrower represents only that such information was prepared in good faith based upon assumptions believed to be reasonable at the time.

 

Section 3.12.  Margin Stock.  Neither the Borrower nor any Material Subsidiary is engaged in the
business of extending credit for the purpose of purchasing or carrying margin stock (within the meaning of Regulation U of the Board of Governors of the Federal Reserve System), and, except as permitted by Section 5.08, no part of the proceeds of the Loans will be used, either directly or indirectly, for the purpose, whether immediate, incidental or remote, of purchasing or carrying any margin stock or of extending credit to others for the purpose of purchasing or carrying any margin stock, and the Borrower
shall furnish to the Administrative Agent, upon its request, a statement in conformity with the requirements of Federal Reserve Board Form U-1 referred to in Regulation U.  Further, no part of the proceeds of the Loans will be used for any purpose that violates, or which is inconsistent with, the provisions of Regulations G, T, U or X of the Board of Governors. 

 

Section 3.13.  Insolvency.  The Borrower and the Material Subsidiaries, taken as a whole, are Solvent
and each is able to pay its debts as they mature. 

 

Section 3.14. Material Subsidiaries. The Material Subsidiaries are set forth on Schedule 3.14 hereto,
as amended by the Borrower by written notice to the Administrative Agent.

 

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 each of the following conditions is satisfied (or waived in accordance with Section 9.02):

 

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

 

(b)The Administrative Agent shall have received a favorable written opinion (addressed to the Administrative Agent and the Lenders and dated the Effective Date) of  Baker & Daniels, counsel for the Borrower and the Material
Subsidiaries, substantially in the form of Exhibit B, and covering such other matters relating to the Borrower and the Material Subsidiaries, this Agreement or the Transactions as the Required Lenders shall reasonably request.  The Borrower hereby requests such counsel to deliver such opinion.

 

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

 

(d)The Administrative Agent shall have received a certificate, dated the Effective Date and signed by the Chief Executive Officer, a Vice President or a Financial Officer of the Borrower, in form and substance satisfactory to the Administrative
Agent.

 

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

 

The Administrative Agent shall notify the Borrower and the Lenders of the Effective Date, and such notice shall be conclusive and binding.    

 

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

 

(a)The representations and warranties of the Borrower set forth in this Agreement, and the representations and warranties of the Borrower and the Material Subsidiaries set forth in the other Loan Documents, shall be true and correct on and
as of the date of such Borrowing.

 

(b)At the time of and immediately after giving effect to such Borrowing, no Default 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 paragraphs (a) and (b) of this Section.

 

Section 4.03. Secured Loans.  The obligation of each Lender to make a Secured Loan on the
occasion of any Borrowing is subject to the conditions that the  Security Agreement and the Control Agreement shall be in full force and effect, and the Collateral Requirement shall be satisfied after giving effect to such Secured Loans.

 

Section 4.04. Conditions Subsequent to Effective Date.  In consideration of this Agreement,
the Borrower hereby agrees that not later than (a) February 26, 2010, with respect to Daniel Webster College, Inc., and (b) January 29, 2010, with respect to all other Material Subsidiaries, the Borrower shall have delivered to the Administrative Agent, in each case in form and substance satisfactory to the Administrative Agent, (i) a Guaranty executed by each Material Subsidiary, (ii) a certificate of the secretary or other appropriate officer of each Material Subsidiary certifying the
articles of incorporation (or equivalent instrument) of such Material Subsidiary, the by-laws (or equivalent instrument) of such Material Subsidiary, the resolutions (or equivalent instrument) of such Material Subsidiary relative to such Guaranty, and the incumbency and specimen signatures of the officer(s) executing the Guaranty on behalf of such Material Subsidiary, (iii) an opinion of counsel to each Material Subsidiary relative to such Guaranty, and (iv) such other items regarding the authorization, execution,
delivery and enforceability of such Guaranties as the Administrative Agent or its counsel may reasonably request.  The Borrower acknowledges and agrees that its failure to do so shall constitute an Event of Default under this Agreement.

 

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:

 

(a)within 90 days after the end of each fiscal year of the Borrower, its audited consolidated balance sheet and related statements of operations, stockholders’ equity and cash flows as of the end of and for such year, setting forth
in each case in comparative form the figures for the previous fiscal year (or, in the case of the balance sheet, as of the end of the previous fiscal year), all reported on by 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 consolidated Subsidiaries on a consolidated basis in accordance with GAAP;

 

(b)within 45 days after the end of each of the first three fiscal quarters of each fiscal year of the Borrower, its internally prepared consolidated balance sheet and related statements of operations, stockholders’ equity and cash
flows 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 the corresponding period or periods of (or, in the case of the balance sheet, as of the end of) the previous fiscal year, all certified by one of its Financial Officers as presenting fairly in all material respects the financial condition and results of operations of the Borrower and its consolidated Subsidiaries on a consolidated basis in accordance
with GAAP, subject to normal year-end audit adjustments and the absence of footnotes;

 

(c)within 45 days after the end of each fiscal quarter of the Borrower, a certificate of a Financial Officer of the Borrower in the form of Exhibit F-1 attached hereto based on information internally prepared by the Borrower; provided,
however, that the Borrower may, concurrently with the delivery of financial statements under clause (a) above, submit a revised certificate of a Financial Officer of the Borrower in the form of Exhibit F-1 attached hereto based on the audited financial information contemplated thereby, which revised certificate shall supersede the previously submitted certificate for the period to which it relates; 

 

(d)within 30 days after the end of each calendar month other than the last calendar month of each fiscal quarter of the Borrower, a certificate of a Financial Officer of the Borrower in the form of Exhibit F-2 attached hereto; and

 

(e)promptly following any request therefor, such other information regarding the operations, business affairs and financial condition of the Borrower or any Subsidiary, 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 written notice of the occurrence of any Default or Event of Default no later than ten (10) Business Days after the date on which the occurrence of such Default or Event of Default first becomes known to the Chief Executive Officer, the General Counsel or any Financial Officer of the Borrower.  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
Material Subsidiaries to, do or cause to be done all things necessary to preserve, renew and keep in full force and effect its legal existence and the rights, licenses, permits, privileges and franchises material to the conduct of its business; provided that the foregoing shall not prohibit any merger, consolidation, liquidation or dissolution permitted under Section 6.03.

 

Section 5.04. Payment of Obligations.  The Borrower will, and will cause each of its Material
Subsidiaries to, pay its obligations, including Tax liabilities, 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 and the Borrower or such Material Subsidiary has set aside on its books adequate reserves with respect thereto in accordance with GAAP, or (b) the failure to make payment 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 Material Subsidiaries to, (a) keep and maintain all property material to the conduct of its business in good working order and condition, ordinary wear and tear excepted, and (b) maintain, with financially sound and reputable insurance companies, insurance in such amounts and against such risks as are customarily maintained by companies with similar financial positions 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 Material 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; provided, that, unless and until an Event of Default shall have occurred and be continuing, the Borrower shall not be obligated to reimburse the Administrative Agent or the Lenders for out-of-pocket expenses incurred in connection with such visits and inspections pursuant to Section 9.03(a) hereof in an amount in excess of
$10,000 during any twelve-month period.

 

Section 5.07. Compliance with Laws.  The Borrower will, and will cause each of its Material
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.

 

Section 5.08. Use of Proceeds.  The proceeds of the Loans will be used only for general corporate
purposes, including reacquisition of the Borrower’s common stock.  No part of the proceeds of any Loan will be used, whether directly or indirectly, for any purpose that entails a violation of any of the Regulations of the Board, including Regulations T, U and X.  

 

Section 5.09. Trade Accounts.  The Borrower and each Material Subsidiary shall pay all trade
accounts in accordance with their usual and customary practice. 

 

Section 5.10. Banking Relationship.  The Borrower shall maintain a banking deposit account
with the Administrative Agent through which transactions related to the Loans may be accomplished.   

 

Section 5.11. Financial Covenants.  The Borrower and its Subsidiaries shall have, on a consolidated
basis (except as otherwise provided in the definition of “DOE Ratio” herein): 

 

(a)Leverage Ratio.  A Leverage Ratio, as determined as of the end of each fiscal quarter, of not greater than 1.0 to 1.0.

 

(b)Unrestricted Cash and Investments to Indebtedness.  A ratio of (i) the combination of unrestricted cash and unrestricted investments (including any investments in the Custodial
Account), to (ii) Indebtedness, of not less than 1.10 to 1.0, as of the end of any calendar month.

 

(c)DOE Financial Responsibility Composite Ratio.  A DOE Ratio determined as of the last day of any fiscal year to be greater than or equal to 1.50:1.00. 

 

Section 5.12. Guaranties.  The payment and performance of all obligations of the Borrower
owing hereunder shall at all times (except as contemplated in Section 4.04 hereof) be guaranteed by each Material Subsidiary of the Borrower (individually a “Guarantor” and collectively the “Guarantors”) pursuant to one or more guaranty agreements in the form of Exhibit E attached hereto (individually a “Guaranty” and
collectively the “Guaranties”).   In the event the Borrower or any Subsidiary forms or acquires or owns any other Material Subsidiary after the date hereof, the Borrower shall promptly upon such formation or acquisition or creation provide the Administrative Agent with an amendment to Schedule 3.14, cause such Material Subsidiary to execute a Guaranty, and the Borrower shall also deliver to the Administrative Agent, or cause
such Material Subsidiary to deliver to the Administrative Agent, at the Borrower’s cost and expense, such organizational documents, certificates, opinions and other instruments described in Section 4.04 hereof.

 

Section 5.13.   Additional Guarantors.  If at the end of any fiscal quarter of the
Borrower (i) the book value of the owned assets of the non-Guarantor Subsidiaries equals or exceeds 20% of the book value of the total consolidated owned assets of the Borrower and its Subsidiaries for the most recently completed fiscal quarter for which financial statements have been delivered pursuant to Section 5.01, or (ii) the revenues of the non-Guarantor Subsidiaries for the most recently completed four fiscal quarter period for which financial statements have been delivered pursuant to
Section 5.01 equal or exceed 20% of the total consolidated revenue of the Borrower and its Subsidiaries for such period, then the Borrower shall, promptly thereafter, cause an additional Subsidiary or additional Subsidiaries to become a Guarantor or Guarantors hereunder such that (i) the book value of the owned assets of the non-Guarantor Subsidiaries is less than 20% of the book value of the total consolidated owned assets of the Borrower and its Subsidiaries for the most recently completed fiscal quarter for
which financial statements have been delivered pursuant to Section 5.01, and (ii) the revenues of the non-Guarantor Subsidiaries for the most recently completed four fiscal quarter period for which financial statements have been delivered pursuant to Section 5.01 is less than 20% of the total consolidated revenue of the Borrower and its Subsidiaries for such period.

 

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. Reserved.  

 

Section 6.02. Liens.  The Borrower will not, and will not permit any Material Subsidiary to,
create, incur, assume or permit to exist any Lien on any property or asset now owned or hereafter acquired by it, or assign or sell any income or revenues (including accounts receivable, but excluding accounts receivable that are “charged off” in the ordinary course of business and do not appear as an asset on the balance sheet of the related Person) or rights in respect of any thereof, except:

 

(a)Permitted Encumbrances; 

 

(b)any Lien on any property or asset of the Borrower or any Subsidiary existing on the date hereof and set forth in Schedule 6.02; provided that (i) such Lien shall not apply
to any other property or asset of the Borrower or any Subsidiary, and (ii) such Lien shall secure only those obligations which it secures on the date hereof;

 

(c)any Lien existing on any property or asset prior to the acquisition thereof by the Borrower or any Subsidiary or existing on any property or asset of any Person that becomes a Subsidiary after the date hereof prior to the time such Person
becomes a Subsidiary; provided that (i) such Lien is not created in contemplation of or in connection with such acquisition or such Person becoming a Subsidiary, as the case may be, (ii) such Lien shall not apply to any other property or assets of the Borrower or any Subsidiary and (iii) such Lien shall secure only those obligations which it secures on the date of such acquisition or the date such Person becomes a Subsidiary, as the case
may be;

 

(d)any Lien or deposit with any governmental agency required or permitted to qualify it to conduct business or exercise any privilege, franchise or license, or to maintain self insurance or to obtain the benefits of or secure obligations under
any law pertaining to worker’s compensation, unemployment insurance, old age pensions, social security or similar matters, or to obtain any stay or discharge in any legal or administrative proceedings, or any similar lien or deposit arising in the ordinary course of business; 

 

(e)Liens on property that secure only Indebtedness incurred for the purchase price or cost of construction or improvement of such property or liens related to capitalized lease transactions; 

 

(f)any Lien granted in favor of the Administrative Agent on behalf of the Lenders; and

 

(g)Liens not described in clauses (a) through (e) above to secure indebtedness, obligations or liabilities in the aggregate principal amount not to exceed $5,000,000 at any one time outstanding.

 

Section 6.03. Fundamental Changes.  (a) The Borrower will not, and will not permit any
Material Subsidiary 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 any substantial part of its assets, or all or substantially all of the stock of any of its Material 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 Subsidiary may merge into the Borrower in a transaction in which the Borrower is the surviving corporation, (ii) any Subsidiary may merge into  any Subsidiary in a transaction in which the surviving entity is a Subsidiary, (iii) any Subsidiary may sell, transfer, lease or otherwise dispose of its assets to the Borrower or to a Subsidiary, and (iv) any Subsidiary may liquidate or dissolve if the Borrower determines in
good faith that such liquidation or dissolution is in the best interests of the Borrower and is not materially disadvantageous to the Lenders; provided that any such merger involving a Person that is not a wholly owned Material Subsidiary immediately prior to such merger shall not be permitted unless also permitted by Section 6.04.

 

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

 

Section 6.04. Investments, Loans, Advances and Acquisitions.  The Borrower will not, and will
not permit any of its Material Subsidiaries to, purchase, hold or acquire (including pursuant to any merger with any Person that was not a wholly owned Material Subsidiary prior to such merger) any capital stock, evidences of indebtedness or other securities (including any option, warrant or other right to acquire any of the foregoing) of, make or permit to exist any loans or advances to, or make or permit to exist any investment or any other interest in, any other Person, or purchase or otherwise acquire (in
one transaction or a series of transactions) any assets of any other Person constituting a business unit, except:

 

(a)Permitted Investments;

 

(b)investments by the Borrower in the capital stock of its Subsidiaries;

 

(c)loans, advances and purchases of evidence of indebtedness made by the Borrower in connection with any Private Education Loan Program;

 

(d)loans and advances made by the Borrower to any Subsidiary and made by any Subsidiary to the Borrower or any other Subsidiary; 

 

(e)Permitted Acquisitions; and

 

(f)loans and advances in the ordinary course of business in an aggregate amount not to exceed $2,000,000 at any one time outstanding.

 

Section 6.05. Swap Agreements.  The Borrower will not, and will not permit any of its Material
Subsidiaries to, enter into any Swap Agreement, except (a) Swap Agreements entered into to hedge or mitigate risks to which the Borrower or any Material Subsidiary has actual exposure (other than those in respect of Equity Interests of the Borrower or any of its Material Subsidiaries), and (b) Swap Agreements entered into in order to effectively cap, collar or exchange interest rates (from fixed to floating rates, from one floating rate to another floating rate or otherwise) with respect to any interest-bearing
liability or investment of the Borrower or any Material Subsidiary.

 

Section 6.06. Restricted Payments.  The Borrower will not, and will not permit any of its
Material Subsidiaries to, declare or make, or agree to pay or make, directly or indirectly, any Restricted Payment, except (a) the Borrower may declare and pay dividends with respect to its Equity Interests payable solely in additional shares of its common stock, (b) Subsidiaries may declare and pay dividends ratably with respect to their Equity Interests, (c) the Borrower may make Restricted Payments pursuant to and in accordance with stock option plans or other benefit plans for directors, management
or employees of the Borrower and its Subsidiaries, and (d) the Borrower may reacquire its common stock.

 

Section 6.07. Transactions with Affiliates.  The Borrower will not, and will not permit any
of its Material Subsidiaries to, sell, lease or otherwise transfer any property or assets to, or purchase, lease or otherwise acquire any property or assets from, or otherwise engage in any other transactions with, any of its Affiliates, except (a) in the ordinary course of business at prices and on terms and conditions not less favorable to the Borrower or such Subsidiary than could be obtained on an arm’s-length basis from unrelated third parties, (b) transactions between or among the Borrower
and its wholly owned Subsidiaries not involving any other Affiliate and (c) any Restricted Payment permitted by Section 6.06.

 

Section 6.08. Restrictive Agreements.  The Borrower will not, and will not permit any of its
Material Subsidiaries to, directly or indirectly, enter into, incur or permit to exist any agreement or other arrangement that prohibits, restricts or imposes any condition upon (a) the ability of the Borrower or any Material Subsidiary to create, incur or permit to exist any Lien upon any of its property or assets, or (b) the ability of any Material Subsidiary to pay dividends or other distributions with respect to any shares of its capital stock or to make or repay loans or advances to the Borrower
or any other  Material Subsidiary or to Guarantee Indebtedness of the Borrower or any other Material Subsidiary; provided that (i) the foregoing shall not apply to restrictions and conditions imposed by law or by this Agreement, (ii) the foregoing shall not apply to restrictions and conditions existing on the date hereof identified on Schedule 6.08 (but shall apply to any extension or renewal of, or any amendment or modification expanding
the scope of, any such restriction or condition), (iii) the foregoing shall not apply to customary restrictions and conditions contained in agreements relating to the sale of a Subsidiary pending such sale, provided such restrictions and conditions apply only to the Subsidiary that is to be sold and such sale is permitted hereunder, (iv) clause (a) of the foregoing shall not apply to restrictions or conditions imposed by any agreement relating to secured indebtedness or obligations if such restrictions
or conditions apply only to the property or assets securing such indebtedness or obligations and (v) clause (a) of the foregoing shall not apply to customary provisions in leases and other contracts restricting the assignment thereof.

 

Section 6.09. Change Name or Place of Business.  The Borrower shall not change its name or
jurisdiction of organization, except after thirty (30) days’ prior written notice to the Administrative Agent.

 

Section 6.10. Permissible Investments.  The Borrower shall not amend the definition of Permissible
Investments contained in the Investment Guidelines attached to the Investment Management Agreement dated as of December 22, 2006, as amended, between the Borrower and J.P. Morgan Investment Management Inc., or the Maturity Guidelines and Quality Guidelines specified therein, in each case without the prior written consent of the Required Lenders.

 

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; 

 

(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 Business Days;

 

(c)any representation or warranty made or deemed made by or on behalf of the Borrower or any Material Subsidiary in or in connection with this Agreement or any Loan Document or any amendment or modification hereof or thereof or waiver hereunder
or thereunder, 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 or waiver hereunder, 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 5.01, 5.02, 5.03 (with respect to the Borrower’s existence), 5.08, 5.11, 5.12 or in Article VI or of any provision in
any Loan Document dealing with the use, disposition or remittance of the proceeds of Collateral;

 

(e)the Borrower shall fail to observe or perform any covenant, condition or agreement contained in this Agreement or the Borrower or any Material Subsidiary shall fail to observe or perform any covenant, condition or agreement contained in
any other Loan Document (other than those specified in clause (a), (b) or (d) of this Article), and such failure shall continue unremedied for a period of 30 days after the earlier of (i) notice thereof from the Administrative Agent to the Borrower (which notice will be given at the request of any Lender), or (ii) the date on which such failure shall first become known to the Chief Executive Officer, the General Counsel or any Financial Officer of the Borrower;

 

(f)the Borrower or any Material Subsidiary shall fail to make any payment (whether of principal or interest and regardless of amount) in respect of any of its 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 Material Subsidiary or its debts, or of a substantial
part of its assets, under any  Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for the Borrower or any Material Subsidiary or for a substantial part of its assets, and, in any such case, such proceeding or petition shall continue undismissed for 60 days or an order or decree approving or ordering any of the foregoing shall be entered;

 

(i)the Borrower or any Material Subsidiary shall (i) voluntarily commence any proceeding or file any petition seeking liquidation, reorganization or other relief under any Federal, state or foreign 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 Material Subsidiary or for a substantial part of its assets, (iv) file an answer admitting the material allegations of a petition filed against
it in any such proceeding, (v) make a general assignment for the benefit of creditors or (vi) take any action for the purpose of effecting any of the foregoing;

 

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

 

(k)one or more uninsured judgments for the payment of money in an aggregate amount in excess of $20,000,000 shall be rendered against the Borrower, any Material Subsidiary 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 Material Subsidiary to enforce any such judgment;

 

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

 

(m)a Change in Control shall occur; 

 

(n)a Material Adverse Effect shall occur; or

 

(o)a Significant Regulatory Event shall occur;

 

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 any or all of the following
actions, at the same or different times: (i) terminate the Commitments, and thereupon the Commitments shall terminate immediately, (ii) declare the Loans then outstanding to be due and payable in whole (or in part, in which case any principal not so declared to be due and payable may thereafter be declared to be due and payable), and thereupon the principal of the Loans so declared to be due and payable, together with accrued interest thereon and all fees and other obligations of the 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 shall automatically terminate and the principal of the Loans 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, (iii) exercise any other remedies available to the Administrative Agent or the Lenders under this Agreement and the other Loan Documents, including, without limitation, the Collateral Documents, and (iv) exercise any other remedy available at law or in equity.

 

Article VIII

 

 

The Administrative Agent

 

Each of the Lenders hereby irrevocably appoints the Administrative Agent as its agent and authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to the Administrative Agent by the terms hereof, together with such actions and powers as are reasonably incidental thereto.

 

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

 

The Administrative Agent shall not have any duties or obligations except those expressly set forth herein.  Without limiting the generality of the foregoing, (a) the Administrative Agent shall not be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing, (b) the
Administrative Agent shall not have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby that the Administrative Agent is required to exercise in writing as directed by the Required Lenders (or such other number or percentage of the Lenders as shall be necessary under the circumstances as provided in Section 9.02), 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 such other number or percentage of the Lenders as shall be necessary under the circumstances as provided
in Section 9.02) 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.  

 

The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing believed by it to be genuine and to have been signed or sent by the proper Person.  The Administrative Agent also may rely upon
any statement made to it orally or by telephone and believed by it to be made by the proper Person, and shall not incur any liability for relying thereon.  The Administrative Agent may consult with legal counsel (who may be counsel for 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.

 

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.

 

Subject to the appointment and acceptance of a successor Administrative Agent as provided in this paragraph, the Administrative Agent may resign at any time by notifying the Lenders and the 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 may, on behalf of the Lenders, appoint a successor Administrative Agent which shall be a bank with an office in New York, New York, or an Affiliate of any such bank.  Upon the acceptance of its appointment as Administrative Agent hereunder by a successor, such successor
shall succeed to and become vested with all the rights, powers, privileges and duties of the retiring Administrative Agent, and the retiring Administrative Agent shall be discharged from its duties and obligations hereunder.  The fees payable by the 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 the benefit of such retiring Administrative Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while it was acting as Administrative Agent.

 

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

 

Article IX

 

 

Miscellaneous

 

Section 9.01. Notices.  (a) Except in the case of notices and other communications expressly
permitted to be given by telephone (and subject to paragraph (b) below), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by telecopy, as follows:

 

(i)if to the Borrower, to it at 13000 N. Meridian Street, Carmel, Indiana  46032, Attention of Chief Financial Officer, Telephone No. (317) 706-9200, Telecopy No. (317) 706-9254;

 

(ii)if to the Administrative Agent, to JPMorgan Chase Bank, 1 East Ohio Street, Mail Code INI-0045, Indianapolis, Indiana  46277, Attention of John V. Schlechte, Telephone No. (317) 767-8340, Telecopy No. (317)
767-8008; 

 

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

 

(b)Notices and other communications to the Lenders hereunder may be delivered or furnished by electronic communications pursuant to procedures approved by the Administrative Agent; provided that
the foregoing shall not apply to notices pursuant to Article II unless otherwise agreed by the Administrative Agent and the applicable Lender.  The Administrative Agent or the Borrower may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it; provided that approval of such procedures may be limited to particular notices or communications.  

 

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

 

Section 9.02. Waivers; Amendments.  (a) No failure or delay by the Administrative Agent
or any Lender in exercising any right or power hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power.  The rights and remedies of the Administrative Agent and the Lenders hereunder are cumulative and are not exclusive of any rights or remedies that they would otherwise have.  No
waiver of any provision of this Agreement or consent to any departure by 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)Neither this Agreement, nor any other Loan Document, nor any provision hereof or thereof may be waived, amended or modified except pursuant to an agreement or agreements in writing entered into by the Borrower and the Required Lenders or
by the Borrower and the Administrative Agent with the consent of the Required Lenders; provided that no such agreement shall (i) increase  the Commitment of any Lender without the written consent of such Lender, (ii) reduce the principal amount of any Loan or reduce the rate of interest thereon, or reduce any fees or other amounts payable hereunder, without the written consent of each Lender affected thereby, (iii) postpone the
scheduled date of payment of the principal amount of any Loan, or any interest thereon, or any fees or other amounts payable hereunder, or reduce the amount of, waive or excuse any such payment, or postpone the scheduled date of expiration of any Commitment, without the written consent of each Lender affected thereby, (iv) change Section 2.18(b) or (c) in a manner that would alter the pro rata sharing of payments required thereby, without the written consent of each Lender, (v) change any of the
provisions of this Section or the definition of “Required Lenders” or any other provision hereof specifying the number or percentage of Lenders required to waive, amend or modify any rights hereunder or make any determination or grant any consent hereunder, without the  written consent of each Lender, (vi) release all or substantially all of the Collateral (except as otherwise provided for in the Loan Documents), or (vi) change the provisions of Section 2.20 without the written consent of
the Administrative Agent; provided further that no such agreement shall amend, modify or otherwise affect the rights or duties of the Administrative Agent hereunder without the prior written consent of the Administrative Agent.

 

Section 9.03. Expenses; Indemnity; Damage Waiver.  (a) The Borrower shall pay (i) all
reasonable out-of-pocket expenses incurred by the Administrative Agent and its Affiliates, including the reasonable fees, charges and disbursements of counsel for the Administrative Agent, in connection with the syndication of the credit facilities provided for herein, the preparation 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 all such out-of-pocket expenses incurred during  any workout, restructuring or negotiations in respect of such Loans. 

 

(b)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 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 are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee.

 

(c)To the extent that the Borrower fails to pay any amount required to be paid by it to the Administrative Agent under paragraph (a) or (b) of this Section, each Lender severally agrees to pay (without limiting the obligations of the Borrower
and its Subsidiaries hereunder or under any other Loan Documents) to the Administrative Agent 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 in its capacity
as such.

 

(d)To the extent permitted by applicable law, the Borrower shall not assert, and hereby waives, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or
actual damages) arising out of, in connection with, or as a result of, this Agreement or any agreement or instrument contemplated hereby, the Transactions or any Loan or the use of the proceeds thereof.

 

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

 

Section 9.04. Successors and Assigns.  (a) 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, Participants (to the extent provided in paragraph (c) of this Section) and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.

 

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

 

(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; and

 

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

 

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

 

(A)except in the case of an assignment to a Lender or 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, the amount of the 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 such consent of the Borrower shall be required if an Event of Default has occurred and is continuing;

 

(B)each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender’s rights and obligations under this Agreement, provided that this
clause shall not be construed to prohibit the assignment of a proportionate part of all the assigning Lender’s rights and obligations in respect of its Commitments or 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 be a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire in which the assignee designates one or more Credit Contacts (who shall be directors, officers, employees and/or agents
of the assignee) to whom all syndicate-level information (which may contain material non-public information about the Borrower and its related parties or its securities) will be made available and who may receive such information in accordance with the assignee’s compliance procedures and applicable laws, including Federal and state securities laws; and 

 

(E)each partial assignment shall be made pro-rata between Line of Credit A and Line of Credit B.

 

For the purposes of this Section 9.04(b), the term “Approved Fund” has the following meaning:

 

“Approved Fund” means any Person (other than a natural person) that is engaged in making, purchasing, holding or investing in bank loans and similar extensions of credit in the ordinary course of its business and that is administered or managed by (a) a Lender,
(b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender.

 

(iii)Subject to acceptance and recording thereof pursuant to paragraph (b)(iv) 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 2.15, 2.16, 2.17 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 (c) of this Section.

 

(iv)The Administrative Agent, acting for this purpose as an agent of the Borrower, shall maintain at one of its offices a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of
the Lenders, and the Commitment of, and principal amount of the Loans owing to, each Lender pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be conclusive, and the 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.

 

(v)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; provided that if either the assigning Lender or the assignee shall have failed to make any payment required to be made by it pursuant to Section 2.07(b), 2.18(d)
or 9.03(c), the Administrative Agent shall have no obligation to accept such Assignment and Assumption and record the information therein in the Register unless and until such payment shall have been made in full, together with all accrued interest thereon.  No assignment shall be effective for purposes of this Agreement unless it has been recorded in the Register as provided in this paragraph.

 

(c)(i) Any Lender may, without the consent of the Borrower and the Administrative Agent, sell participations to one or more banks or other entities (a “Participant”)
in all or a portion of such Lender’s rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans owing to it); provided that (A) such Lender’s obligations under this Agreement shall remain unchanged, (B) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations and (C) the 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 (c)(ii) of this Section, the Borrower agrees that each Participant shall be entitled to the benefits of Sections 2.15, 2.16 and 2.17 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 2.18(c) as though it were a Lender.

 

(ii)A Participant shall not be entitled to receive any greater payment under Section 2.15 or 2.17 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 (which consent may be withheld for any reason).  A Participant that would be a Foreign Lender if it were a Lender shall not be entitled to the benefits of Section 2.17 unless the Borrower is notified of the participation sold to such Participant and such Participant agrees, for the benefit of the Borrower, to comply with Section 2.17(e) as though it were a Lender.  

 

(d)Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including without limitation any pledge or assignment to secure obligations 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 pledgee or assignee for such Lender as a party hereto.

 

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 2.15, 2.16, 2.17 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 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 of this Agreement by telecopy
or other electronic means shall be effective as delivery of a manually executed counterpart of this Agreement.

 

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 and each of its Affiliates 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 obligations at any time owing by such Lender or Affiliate to or for the credit or the account of the Borrower (except to the extent that applicable law prohibits such deposits or other obligations from being subject to such set-off rights) 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; Consent to Service of Process.  (a) This Agreement
shall be construed in accordance with and governed by the law of the State of New York.

 

(b)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)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.

 

(d)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 waives, to the fullest extent permitted by applicable law, any right it may have to a trial by jury in any legal proceeding directly or indirectly arising out of or relating to this agreement, the Loan Documents, or the transactions contemplated hereby or thereby (whether based on contract, tort or any other theory).  Each party hereto (a) certifies that no representative, agent or attorney of any other 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. Confidentiality.  Each of the Administrative Agent and the Lenders agrees to
maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its and its Affiliates’ directors, officers, employees and agents, including accountants, legal counsel and other advisors (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential), (b) to the extent requested by any regulatory authority or self-regulatory
authority purporting to have jurisdiction over it or its Affiliates, (c) to the extent required by applicable laws or regulations or by any subpoena or similar legal process, (d) to any other party to this Agreement, (e) in connection with the exercise of any remedies hereunder or any suit, action or proceeding relating to this Agreement or the enforcement of rights hereunder, (f) subject to an agreement by such recipient containing provisions substantially the same as those of this Section,
to (i) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights or obligations under this Agreement or (ii) any actual or prospective counterparty (or its advisors) to any swap or derivative transaction relating to the Borrower and its obligations, (g) with the consent of the Borrower or (h) to the extent such Information (i) becomes publicly available other than as a result of a breach of this Section or (ii) becomes available to the
Administrative Agent or any Lender on a nonconfidential basis from a source other than the Borrower.  For the purposes of this Section, “Information” means all information received from the Borrower or obtained by the Administrative Agent or any Lender by inspection pursuant to Section 5.06 hereof, 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. Interest Rate Limitation.  Notwithstanding anything herein to the contrary,
if at any time the interest rate applicable to any Loan, together with all fees, charges and other amounts which are treated as interest on such Loan under applicable law (collectively the “Charges”), shall exceed the maximum lawful rate (the “Maximum Rate”) which may be contracted for, charged, taken, received or reserved by the Lender holding such Loan in accordance with
applicable law, the rate of interest payable in respect of such Loan hereunder, together with all Charges payable in respect thereof, shall be limited to the Maximum Rate and, to the extent lawful, the interest and Charges that would have been payable in respect of such Loan but were not payable as a result of the operation of this Section shall be cumulated and the interest and Charges payable to such Lender in respect of other Loans or periods shall be increased (but not above the Maximum Rate herefore) until
such cumulated amount, together with interest thereon at the Federal Funds Effective Rate to the date of repayment, shall have been received by such Lender.

 

Section 9.14. USA PATRIOT Act.  Each Lender that is subject to the requirements of the USA
Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”) hereby notifies the Borrower that pursuant to the requirements of the Act, it is required to obtain, verify and record information that identifies the Borrower, which information includes the name and address of the Borrower and other information that will allow such Lender to identify the Borrower in accordance with the Act.

 

Section 9.15. Amendment and Restatement.  This Agreement shall become effective on the Effective
Date and shall supersede all provisions of the Existing Agreement as of such date.  From and after the Effective Date, all references made to the Existing Agreement in any Loan Document or in any other instrument or document shall, without more, be deemed to refer to this Agreement.  The Borrower heretofore executed and delivered to the Administrative Agent certain Collateral Documents.  The Borrower hereby acknowledges and agrees that the Liens created and provided for by the heretofore
delivered Collateral Documents continue to secure, among other things, the obligations of the Borrower under the Existing Agreement which shall remain outstanding on the Effective Date as well as those hereafter arising under this Agreement and the other Loan Documents; and the heretofore delivered Collateral Documents and the rights and remedies of the Administrative Agent thereunder, the obligations of the Borrower thereunder, and the Liens created and provided for thereunder remain in full force and effect
in favor of the Administrative Agent for the benefit of the Lenders, and shall not be affected, impaired or discharged hereby.  Nothing herein contained shall in any manner affect or impair the priority of the liens and security interests created and provided for by the heretofore delivered Collateral Documents as to the indebtedness which would be secured thereby prior to giving effect to this Agreement.  The execution and delivery of this Agreement shall constitute an amendment and restatement
and not a novation or repayment of the obligations owing by the Borrower under the Existing 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.

 

	
  
	
ITT Educational Services, Inc.

 

	
  
	
By /s/ Daniel M. Fitzpatrick

	
  
	
Name: Daniel M. Fitzpatrick

	
  
	
Title: Executive Vice President, Chief

	
  
	
Financial Officer

 

	
  
	
JPMorgan Chase Bank, individually as a Lender and as Administrative Agent,

 

	
  
	
By /s/ John V. Schlechta

	
  
	
Name: John V. Schlecta

	
  
	
Title: Senior Vice President

 

	
  
	
Bank of America, N.A., as a Lender

 

	
  
	
By /s/ Adam M. Goettsche

	
  
	
Name: Adam M. Goettsche

	
  
	
Title: Senior Vice President

[Signature Page to Second Amended and Restated Credit Agreement]

  

  

  

Exhibit A

Assignment and Assumption

 

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

 

For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, subject to and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the Effective Date inserted by the Administrative Agent as contemplated
below (i) all of the Assignor’s rights and obligations in its capacity as a Lender under the Credit Agreement and any other documents or instruments delivered pursuant thereto to the extent related to the amount and percentage interest identified below of all of such outstanding rights and obligations of the Assignor under the respective facilities identified below (including any letters of credit, guarantees, and swingline loans included in such facilities) and (ii) to the extent permitted to
be assigned under applicable law, all claims, suits, causes of action and any other right of the Assignor (in its capacity as a Lender) against any Person, whether known or unknown, arising under or in connection with the Credit Agreement, any other documents or instruments delivered pursuant thereto or the loan transactions governed thereby or in any way based on or related to any of the foregoing, including contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in
equity related to the rights and obligations sold and assigned pursuant to clause (i) above (the rights and obligations sold and assigned pursuant to clauses (i) and (ii) above being referred to herein collectively as the “Assigned Interest”).  Such sale and assignment is without recourse to the Assignor and, except as expressly provided in this Assignment and Assumption, without representation or warranty by the Assignor.

 

1. Assignor:

 

______________________________

 

2.Assignee:

 

______________________________ [and is an Affiliate/Approved Fund of [identify Lender]2]

 

3.Borrower(s):

 

______________________________

 

4.Administrative Agent:

 

______________________, as the administrative agent under the Credit Agreement

 

5.Credit Agreement:

 

[The [amount] Credit Agreement dated as of _______ among [name of Borrower(s)], the Lenders parties thereto, [name of Administrative Agent], as Administrative Agent,
and the other agents parties thereto]

 

6. Assigned Interest:

 

	
Facility Assigned
	 	
Aggregate Amount of Commitment/Loans for all Lenders
	 	
Amount of Commitment/Loans Assigned
	 	
Percentage Assigned of Commitment/Loans3
	 
	  	 	$	 	 	 	 	$	 	%
	  	 	$	 	 	 	 	$	 	%
	  	 	$	 	 	 	 	$	 	%

 

Effective Date:   _____________ ___, 20___ [to be inserted by Administrative Agent and which shall be the effective date of recordation of transfer in the register therefore.]

 

The Assignee agrees to deliver to the Administrative Agent a completed Administrative Questionnaire in which the Assignee designates one or more Credit Contacts (who shall be directors, officers, employees and/or agents of the Assignee) to whom all syndicate-level information  (which may contain material non-public information
about the Borrower[, the Loan Parties] and [its] [their] Related Parties or their respective securities) will be made available and who may receive such information in accordance with the Assignee’s compliance procedures and applicable laws, including Federal and state securities laws.

 

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

 

	
  
	
Assignor

 

	
  
	
[Name of Assignor]

 

	
  
	
By

	
  
	
Title:

 

	
  
	
Assignee

 

	
  
	
[Name of Assignee]

 

	
  
	
By

	
  
	
Title:

 

	
  2
	
Select as applicable.

 

	
  3
	
Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans of all Lenders thereunder.

 

  

  

  

 

[Consented to and]4 Accepted:

 

[Name of Administrative Agent],

 

   as Administrative Agent

 

By______________________________

  Title:___________________________

 

[Consented to:]5

 

[Name of Relevant Party]

 

By______________________________

  Title:___________________________

 

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

 

	
5
	
To be added only if the consent of the Borrower and/or other parties is required by the terms of the Credit Agreement.

 

  

  

  

Annex 1

[__________________]6

 

Standard Terms and Conditions 

 

for Assignment and Assumption

 

1.Representations and Warranties.  1.1. Assignor.  The Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of the Assigned
Interest, (ii) the Assigned Interest is free and clear of any lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any statements, warranties or representations made in or in connection with the Credit Agreement or any other Loan Document7,
(ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial condition of the Borrower, any of its Subsidiaries or Affiliates or any other Person obligated in respect of any Loan Document or (iv) the performance or observance by the Borrower, any of its Subsidiaries or Affiliates or any other Person of any of their respective obligations under any Loan Document.

 

1.2. Assignee.  The Assignee (a) represents and warrants that (i) it has full power and
authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby and to become a Lender under the Credit Agreement, (ii) it satisfies the requirements, if any, specified in the Credit Agreement that are required to be satisfied by it in order to acquire the Assigned Interest and become a Lender, (iii) from and after the Effective Date, it shall be bound by the provisions of the Credit Agreement as a Lender thereunder
and, to the extent of the Assigned Interest, shall have the obligations of a Lender thereunder, (iv) it has received a copy of the Credit Agreement, together with copies of the most recent financial statements delivered pursuant to Section ___ thereof, as applicable, and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Assignment and Assumption and to purchase the Assigned Interest on the basis of which it has made such
analysis and decision independently and without reliance on the Administrative Agent or any other Lender, and (v) if it is a Foreign Lender8, attached to the Assignment and Assumption is any documentation required to be delivered by it pursuant to the terms of the Credit Agreement, duly completed and executed by the Assignee; and (b) agrees that (i) it will, independently and without reliance on the Administrative
Agent, the Assignor or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents, and (ii) it will perform in accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender.

 

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

 

3.General Provisions.  This Assignment and Assumption shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and assigns.  This
Assignment and Assumption may be executed in any number of counterparts, which together shall constitute one instrument.  Delivery of an executed counterpart of a signature page of this Assignment and Assumption by telecopy shall be effective as delivery of a manually executed counterpart of this Assignment and Assumption.  This Assignment and Assumption shall be governed by, and construed in accordance with, the law of the State of New York.

 

	
6
	
Describe Credit Agreement at option of Administrative Agent.

 

	
7
	
The term “Loan Document” should be conformed to that used in the Credit Agreement.

 

	
8
	
The concept of  “Foreign Lender” should be conformed to the section in the Credit Agreement governing withholding taxes and gross-up.

 

  

  

  

Exhibit B

 

Opinion of Counsel for the Borrower 

 

	
 

REBECCA A. RICHARDSON

Partner

Direct 317.237.1189

rebecca.richardson@bakerd.com

 
	
 

BAKER & DANIELS LLP

300 North Meridian Street, Suite 2700

Indianapolis, Indiana  46204-1782

Tel 317.237.0300    Fax 317.237.1000

www.bakerdaniels.com

 

 

January 11, 2010

 

 

 

To the Lenders and the

 

Administrative Agent Referred to Below

 

c/o JPMorgan Chase Bank, N.A., 

 

as Administrative Agent

 

270 Park Avenue

 

New York, New York  10017

Re:           ITT Educational Services, Inc.

Ladies and Gentlemen:

We have acted as counsel to ITT Educational Services, Inc., a Delaware corporation (the “Company”) in connection with the transaction contemplated by the Second Amended and Restated Credit Agreement (the “Credit Agreement”) of even date, among the Company, as borrower, the financial institutions identified therein
as Lenders, and JPMorgan Chase Bank, N.A., as Administrative Agent.  Capitalized terms used in this letter but not defined herein are used with the meanings ascribed to such terms in the Credit Agreement.

 

For purposes of expressing our opinions herein, we have been provided with and have examined the following documents, each dated as of January 11, 2010, except as otherwise indicated:

 

(i)           the Credit Agreement, executed by the Company, the Lenders, and the Administrative Agent;

 

(ii)           the Promissory Notes executed by the Company to each of the Lenders;

 

(iii)           the Security Agreement, executed by the Company and the Administrative Agent; and

 

(iv)           the Fee Letter Agreement executed by the Company and the Administrative Agent.

 

The documents identified above are referred to herein collectively as the “Transaction Documents.”

For purposes of expressing our opinions herein, we have examined only the documents identified above, and the documents and certificates identified on Schedule I.  As to various questions of fact material to our opinion, we have relied upon representations and warranties made in the Transaction Documents and upon certificates
and other communications from public officials and officers of the Company, without any independent verification of the completeness or fairness of the statements contained therein.  The opinions set forth herein are based upon and limited to the General Corporation Law of the State of Delaware, the laws of the States of Indiana and New York, and the federal laws of the United States of America.  This letter should not be construed as expressing an opinion on any matter, legal or otherwise,
not specifically mentioned herein.

 

For purposes of expressing our opinions herein, we have assumed that:

 

	
  
	
(a)
	
The copies of the Transaction Documents provided to us for review conform to the originals thereof, and all signatures on the originals are genuine.

 

	
  
	
(b)
	
The Transaction Documents have been duly authorized and executed by the Lenders and the Administrative Agent and constitute legal, valid, and binding obligations of each of them, enforceable against each of them in accordance with their respective terms.  The Administrative Agent has been validly appointed as the agent of the Lenders for the purpose of holding the security interest intended to be created
by the Security Agreement.

 

	
  
	
(c)
	
The Company has received adequate consideration and “value” as such term is used in Section 9-203 of the Uniform Commercial Code as adopted and in effect in the State of New York (the “UCC”), has been given in connection with its execution of the Transaction Documents, and the Company has “rights” (as such term is used in Section 9-203 of the UCC) in the Collateral (as defined
in the Security Agreement).

 

Upon the basis of the foregoing, and subject to the qualifications stated herein, we advise you that, in our opinion:

 

(1)           The Company is a corporation organized and existing under the laws of the State of Delaware and is in good standing under the laws of the State of Delaware.

 

(2)           The Company has the power and authority to execute and deliver each Transaction Document and to perform its obligations thereunder.  The execution, delivery, and performance by the Company of the Transaction Documents have been authorized by all necessary action
on the part of the Company.  The Company has duly executed and delivered the Transaction Documents.  The Transaction Documents are valid and binding obligations of the Company, enforceable against it in accordance with their respective terms.

 

(3)           The Security Agreement creates in favor of the Administrative Agent a security interest in the Collateral (as defined in the Security Agreement), to the extent the Collateral is property in which a security interest can be created under the UCC.

 

(4)           The execution, delivery, and performance by the Company of its obligations under the Transaction Documents (a) do not require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority of the State of Indiana, and (b) will
not violate any applicable law or regulation or the charter, by-laws or other organizational documents of the Company or, to our knowledge, any order of any such Governmental Authority

 

We hereby confirm to you that to our knowledge there are no actions, suits, investigations, or proceedings by or before any arbitrator or Governmental Authority pending or threatened against or affecting the Company or any of its Subsidiaries that, if adversely determined, could reasonably be expected, individually or in the aggregate,
to result in a Material Adverse Effect, or that involve the Credit Agreement or the Transactions.

 

Our opinions expressed herein are subject to the following qualifications:

 

	
  
	
(A)
	
The phrase "to our knowledge" means the actual knowledge of the attorneys who participated in the preparation of this letter, based solely upon and in reliance on an investigation regarding litigation and other proceedings currently being handled by this firm, and on information provided to us by officers of the Company.

 

	
  
	
(B)
	
The validity, enforceability, and the binding effect of the Transaction Documents may be limited or otherwise affected by (i) bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, or similar laws affecting creditor’s rights generally, and (ii) general principles of equity (regardless of whether enforceability is considered at a proceeding in equity or at law).  The remedy
of specific performance and injunctive and other forms of equitable relief are subject to certain equitable defenses, and to the extent such remedies are provided for in the Transaction Documents, enforceability thereof may be subject to the discretion of the court before which any proceeding therefor may be brought.  The enforcement of indemnity provisions of the Transaction Documents is subject to principles of equity and public policy.  Marshalling of assets and collateral also may be required
under certain circumstances.  Certain waivers, releases of rights, and remedies under the Transaction Documents, including without limitation, “self-help remedies” (other than those available to a secured party under the UCC), may be unenforceable, unavailable, or of limited efficacy, however, such unenforceability, unavailability, or limited efficacy would not preclude the practical realization of the benefits and the security intended to be provided thereby.  We express no opinion
as to the validity, availability, or enforceability of any provisions contained in the Transaction Documents that: (i) purport to waive the right to a trial by jury, or (ii) provide for methods of service of process other than in accordance with applicable law.  We express no opinion as to the enforceability of those provisions of the Transaction Documents calling for the payment of late charges, prepayment premiums, or increased rates of interest after default.

 

	
  
	
(C)
	
Section 552 of the Bankruptcy Code limits the extent to which property acquired by a debtor after the commencement of a case under the Bankruptcy Code may be subject to a security interest arising from an agreement entered into by the debtor before the commencement of such case.

 

	
  
	
(D)
	
We express no opinion as to the existence of the Collateral (as defined in the Security Agreement), the sufficiency of the rights of the Company therein, or the perfection of any security interest therein.

 

  

  

  

This opinion is furnished to you solely for your benefit in connection with the transaction contemplated by the Transaction Documents, and may not, without our consent, be furnished to any other person, be relied upon by any other person for any purpose, or be used, circulated, quoted, or otherwise referenced for any purpose.

 

Very truly yours,

 

 

 

  

  

  

Schedule I

1.A copy of the Certificate of Incorporation for the Company, certified by the Delaware Secretary of State on December 18, 2009.

2.Certificate of Good Standing for the Company, issued by the Delaware Secretary of State on December 21, 2009.

3.Certificate of the Secretary of the Company, dated January 11, 2010, as to the Company’s Certificate of Incorporation, By-Laws, and authorizing resolutions, and the incumbency of certain officers.

  

  

  

Exhibit C

 

Promissory Note

 

U.S. $_______________ January 11, 2010

 

For Value Received, the undersigned, ITT Educational Services, Inc., a Delaware corporation (the “Borrower”),
hereby promises to pay to ____________________ (the “Lender”) or its registered assigns on the Maturity Date of the hereinafter defined Credit Agreement, at the principal office of the Administrative Agent in Indianapolis, Indiana (or such other location as the Administrative Agent may designate to the Borrower), in immediately available funds, the principal sum of ___________________ Dollars ($__________) or, if less, the aggregate unpaid principal
amount of all Loans made by the Lender to the Borrower pursuant to the Credit Agreement, together with interest on the principal amount of each Loan from time to time outstanding hereunder at the rates, and payable in the manner and on the dates, specified in the Credit Agreement.

 

This Promissory Note is one of the promissory notes referred to in that certain Second Amended and Restated Credit Agreement dated as of January 11, 2010, among the Borrower, the Lenders, and JPMorgan Chase Bank, National Association, as Administrative Agent (as extended, renewed, amended or restated from time to time, the “Credit
Agreement”), and this Promissory Note and the holder hereof are entitled to all the benefits and security provided for thereby or referred to therein, to which Credit Agreement reference is hereby made for a statement thereof.  All defined terms used in this Promissory Note, except terms otherwise defined herein, shall have the same meaning as in the Credit Agreement.  This Promissory Note shall be governed by and construed
in accordance with the internal laws of the State of New York.

 

Voluntary prepayments may be made hereon, and certain prepayments and accelerated payments are required to be made hereon, all in the events, on the terms and in the manner as provided for in the Credit Agreement.  This Note may evidence Secured Loans and/or Unsecured Loans in accordance with the terms and provisions of the Credit
Agreement.

 

The Borrower hereby waives demand, presentment, protest or notice of any kind hereunder.

	
  
	
ITT Educational Services, Inc.

 

	
  
	
By

	
  
	
Name

	
  
	
Title

  

  

  

Exhibit D

Form of Security Agreement

 

Amended and Restated Security Agreement with 

Respect to Custodial Account and Investment Property 

 

This Amended and Restated Security Agreement with Respect to Custodial Account and Investment Property (the “Agreement”) is entered into as of January 11, 2010, by ITT Educational Services, Inc., a Delaware
corporation with its mailing address at 13000 N. Meridian Street, Carmel, Indiana (“the Debtor”), in favor of JPMorgan Chase Bank, National Association, a national banking association (“JPMorgan”), with its mailing address at 1 East Ohio Street, Indianapolis, Indiana  46277, acting as administrative
agent hereunder for the Secured Creditors hereinafter identified and defined (JPMorgan, acting as such administrative agent and any successor or successors to JPMorgan acting in such capacity being hereinafter referred to as the “Agent”).

 

Recitals: 

 

A.The hereinafter defined Lenders are making available to the Debtor revolving credit facilities in the maximum aggregate principal amount of $150,000,000 pursuant to the terms of a Second Amended and Restated Credit Agreement dated January
11, 2010, among the Debtor, the Agent, as administrative agent thereunder and the lenders from time to time party thereto (the “Lenders;” the Agent and the Lenders are hereinafter collectively referred to herein as the “Secured Creditors,” and each individually as a “Secured Creditor”), as the same may be
amended from time to time (the “Credit Agreement”). 

 

B.Under the Credit Agreement the Debtor has the option to borrow Secured Loans or Unsecured Loans on either or both of Line of Credit A or Line of Credit B under the terms described in the Credit Agreement. 

 

C.In order to induce the Lenders to extend Secured Loans, and in order to secure all of the Debtor’s obligations to the Lenders under the Secured Loans, the Debtor has agreed to grant to the Agent on behalf of the Lenders a security interest
in all of the Debtor’s securities and other property carried in or credited to Agency/Custodial Account No. __________ (the “Account”) of the Debtor maintained with JPMorgan Chase Bank, National Association in its capacity as a securities intermediary (“the Intermediary”) and in the Account itself. 

 

D.This Agreement is intended to amend and restate in its entirety the provisions of that certain Amended Security Agreement with Respect to Custodial Account and Investment Property between the Debtor and JPMorgan dated December 17, 2007
(the “Prior Security Agreement”). 

 

Now, Therefore, it is agreed by and between the parties hereto as follows: 

 

1.As security for the Secured Loans (if any) owing by the Debtor under the Credit Agreement, as the same may be modified or amended from time to time, including, without limitation, the repayment of all Secured Loans which the Lenders may hereafter
loan to the Debtor (the “Secured Obligations”), and in order to secure the obligations of the Debtor as to the Secured Loans, the Debtor hereby grants a security interest to the Agent on behalf of the Secured Creditors in all of the Debtor’s right, title and interest in the investment property and financial assets credited to and carried in the Account, and the securities entitlement represented by the Account, together with the proceeds
thereof, including all replacement investments and all monies owing to the Debtor and funds which may hereafter accumulate in or become withdrawable from such Account, including any balance which may remain to the credit of said Account upon the closing thereof (collectively, the “Collateral”).  In connection herewith, and in order to perfect the security interest granted hereunder, JPMorgan, the Debtor and the Intermediary have entered
into the Control Agreement.  

 

2.All capitalized terms used in this Agreement and not defined herein are used with the meanings ascribed to such terms in the Credit Agreement.  For the purposes of this Agreement: 

 

“Effective Date” of a Notice of Sole Control shall be the beginning of the Business Day after an officer of the Intermediary at the level of Vice President or above has verified receipt of the Notice of Sole Control to the Agent; provided that
the Intermediary may, at its option, act on the Notice of Sole Control at any time after actual receipt by the Intermediary of the Notice of Sole Control (even if before the beginning of the Business Day after the Intermediary has acknowledged receipt, as provided above). 

 

“Notice of Sole Control” shall mean a written notification from the Agent to the Intermediary in the form attached hereto as Exhibit A. 

 

“Permitted Instructions” shall mean the following instructions from the Debtor or the Debtor’s agents: (i) Trading Instructions, including instructions for the purpose of effecting the clearance or settlement of a trade in the Account; (ii) instructions
to disburse income and dividends with respect to property in the Account; and (iii) instructions to debit the Account for any fees payable with respect to the Account or to any investment manager or advisor engaged by the Debtor to manage the Account (an “Investment Manager”). 

 

“Trading Instructions” shall mean instructions to buy, sell or otherwise trade the assets in the Account. 

 

3.The Agent and the Debtor acknowledge and agree that, prior to the Effective Date of a Notice of Sole Control, the Debtor and the Debtor’s agents are entitled to give Permitted Instructions without any concurrence or consent of the Agent,
and the Intermediary is authorized to comply with all Permitted Instructions of the Debtor without further consent from the Agent.  Any instructions to the Intermediary other than Permitted Instructions shall be made by a written instrument to such effect which shall be executed by: 

 

(a) Before the Effective Date of a Notice of Sole Control, an authorized officer of the Debtor and the Agent, or 

 

(b) After the Effective Date of a Notice of Sole Control, an authorized officer of the Agent. 

 

Notwithstanding the foregoing, at any time there are no outstanding Secured Loans, the Debtor shall have the exclusive right to determine what instructions are given to the Intermediary, and the Agent will execute the written instrument setting forth the Debtor’s instructions, and deliver the same to the Intermediary, promptly after
receipt of such a request from the Debtor. 

 

The Agent agrees that, at any time there are outstanding Secured Loans and no Notice of Sole Control has been delivered to the Intermediary, in connection with any instructions to withdraw and/or disburse principal or cash (other than Permitted Instructions as to which, prior to a Notice of Sole Control, the Debtor shall have sole authority)
out of the Account, the Agent will execute the written instrument setting forth the Debtor’s instructions, and deliver the same to the Intermediary, promptly after receipt of such a request from the Debtor, so long as after giving effect to such request, the Collateral Requirement would not be violated. 

 

Prior to the Effective Date of a Notice of Sole Control, the Intermediary shall be entitled to rely on all Trading Instructions and other Permitted Instructions from the Debtor or the Debtor’s agents as described in this Section 3, and the Intermediary shall have no obligation to notify the Agent prior to acting on any such instructions,
including, but not limited to, delivery or receipt of cash or securities to effect clearance or settlement of any trade.  The undersigned agree that the Intermediary shall not be responsible for any diminution or loss of value of the Collateral attributable to decline in market value of the Collateral. 

 

4.The Agent and the Debtor acknowledge and agree that, after the Effective Date of a Notice of Sole Control, unless and until such Notice of Sole Control is rescinded in writing by the Agent, 

 

(a)the Debtor and the Debtor’s agents will cease giving the Intermediary any instructions regarding the Account; 

 

(b)only the Agent shall give instructions regarding the Account; 

 

(c)the Agent shall give all Permitted Instructions to the Intermediary with a copy to the Debtor; 

 

(d)the Agent shall give all other instructions regarding the Account to the Intermediary with a copy to the Debtor; and 

 

(e)the Intermediary will cease complying with all instructions concerning the Account from the Debtor or the Debtor’s agents, and will comply with Trading Instructions and all other instructions from the Agent, without further consent
of the Debtor. 

 

Notwithstanding the foregoing, the Agent agrees that after the Effective Date of a Notice of Sole Control and until such Notice of Sole Control is rescinded in writing by the Agent, the Agent will give instructions to the Intermediary as the Debtor reasonably requests, including instruction to withdraw and/or disburse principal or cash,
if after giving effect to such instruction the Collateral Requirement would not be violated.

 

If the Agent shall give the Intermediary a Notice of Sole Control as provided in Section 5 below, and the Intermediary shall have sent a copy of such Notice of Sole Control to the Debtor as provided in the Notice of Sole Control, the Intermediary shall have no duty or obligation whatsoever of any kind or character to determine the
validity of any Notice of Sole Control or to take further instructions from the Debtor or the Debtor’s agents after the Effective Date of a Notice of Sole Control until it is rescinded in writing by the Agent. 

 

5.The Agent may send a Notice of Sole Control to the Intermediary only after an Event of Default occurs while Secured Loans are outstanding, and while such Event of Default is continuing.  Upon delivery of a Notice of Sole Control,
the Agent, without further authority from the Debtor, shall be entitled to direct the Intermediary to liquidate any or all the Collateral in the Account and to request the Intermediary to remit to the Agent the proceeds of such liquidation up to the amount sufficient to satisfy the Secured Obligations, and the Intermediary is hereby authorized and directed to pay to the Agent such sums as the Agent shall so request or demand without the consent of or notice to the Debtor.  If an Event of Default is
cured or waived after a Notice of Sole Control is delivered to the Intermediary, the Agent shall promptly send the Intermediary a written notice that the Notice of Sole Control is rescinded, and instructing the Intermediary to comply with all Permitted Instructions from the Debtor without further consent of the Agent. 

 

6.The Debtor hereby constitutes and appoints the Agent to act, after an Event of Default that occurs while there are outstanding Secured Loans, and during the continuance thereof, and after the Agent has given a Notice of Sole Control to the
Intermediary, as the Debtor’s true, lawful and irrevocable attorney-in-fact to demand, receive and enforce payments and to give receipts, releases, satisfactions for, and to sue for all monies payable to the Debtor by the Intermediary with respect to the Collateral, and the Debtor agrees that this may be done in the name of the Agent with the same force and effect as the Debtor could do had this Agreement not been made.  Any and all monies or payments which may be received by the Debtor at such
time with respect to the Collateral, to which the Agent is entitled under and by reason of this Agreement, will be received by the Debtor as trustee for the Agent, and will be immediately delivered, in kind, to the Agent without commingling. 

 

7.Any sums paid under this Agreement by the Intermediary to the Agent from the Account of the Debtor shall be applied by the Agent to the payment of the Secured Obligations in accordance with the Credit Agreement.  The balance, if
any, remaining after payment of such Secured Obligations shall be promptly repaid to the Debtor by the Agent.  The receipt or receipts of the Agent for such funds so paid to it by the Intermediary shall, as to the Intermediary, operate as the receipt of the Debtor as fully and as completely as if funds had been paid to the Debtor.  The liens created by this Agreement shall be junior to the liens claimed by the Intermediary for indebtedness
owed to the Intermediary by the Debtor in connection with fees and expenses associated with the administration of the Account. 

 

8.The Agent is hereby authorized and empowered to receive from the Intermediary, and the Intermediary is authorized and directed to deliver to the Agent and at the Debtor’s expense, copies of all confirmations and other notices with respect
to all transactions executed by the Intermediary for the account of the Debtor, copies of the periodic Account statements of the Debtor, and copies of any and all matters pertaining to the Account of the Debtor with the Intermediary, including, without limitation, copies of all correspondence directed to the Debtor.  The Agent will provide the Lenders with copies of such confirmations and notices upon request.

 

9.This Agreement shall remain in full force and effect until all Secured Loans have been paid in full and the Secured Creditors have no further commitment to extend Secured Loans under the Credit Agreement, whereupon the Agent shall deliver
to the Intermediary a notice terminating the Control Agreement.

 

10.The Debtor makes the following representations, warranties, covenants and agreements:

 

(a)The Debtor is the sole and lawful owner of the Collateral, and has full right, power, and authority to enter into this Agreement and to perform each and all of the matters and things herein provided for.  The execution and delivery
of this Agreement, and the observance and performance of each of the matters and things herein set forth, will not (i) contravene or constitute a default under any provision of law or any judgment, injunction, order or decree binding upon the Debtor or any provision of the Debtor’s organizational documents (e.g., charter, articles or certificate of incorporation and bylaws, articles or certificate of formation or organization and limited liability
company operating agreement, partnership agreement or similar organizational documents) or any covenant, indenture or agreement of or affecting the Debtor or any of its property or (ii) result in the creation or imposition of any lien or encumbrance on any property of the Debtor except for the lien and security interest granted to the Agent hereunder.

 

(b)The Debtor’s legal name, jurisdiction of organization and organizational number (if any) are:  ITT Educational Services, Inc., Delaware, and 0404703.  Except for the trade name “ITT Technical Institute(s),”
the Debtor has not transacted business at any time during the immediately preceding five-year period, and does not currently transact business, under any other legal names or trade names.  The Debtor shall not change its jurisdiction of organization without the Agent’s prior written consent.  The Debtor shall not change its legal name or transact business under any other trade name without first giving 30 days’ prior written notice of its intent to do so to the Agent.

 

(c)The Collateral and every part thereof is and shall be free and clear of all security interests, liens (including, without limitation, mechanics’, laborers’ and statutory liens), attachments, levies, and encumbrances of every
kind, nature, and description and whether voluntary or involuntary, except for the lien and security interest of the Agent therein and other Liens permitted by Section 6.02 of the Credit Agreement (herein, the “Permitted Liens”).  The Debtor shall warrant and defend the Collateral against any claims and demands of all persons at any time claiming the same or any interest
in the Collateral adverse to any of the Secured Creditors.

 

(d)The Debtor will promptly pay when due all taxes, assessments, and governmental charges and levies upon or against it or its Collateral, in each case before the same become delinquent and before penalties accrue thereon, unless and to the
extent that the same are being contested in good faith by appropriate proceedings which prevent attachment of any lien resulting therefrom to, foreclosure on or other realization upon any Collateral and preclude interference with the operation of its business in the ordinary course and the Debtor shall have established adequate reserves therefor.

 

(e)The Debtor agrees to execute and deliver, and shall request the Intermediary to execute and deliver, to the Agent such further agreements, assignments, instruments, and documents, and to do all such other things, as the Agent may reasonably
deem necessary or appropriate to assure the Agent its lien and security interest hereunder, including, without limitation, such control agreements executed by the Intermediary as the Agent may from time to time reasonably require.  The Debtor hereby authorizes the Agent to file any and all financing statements covering the Collateral or any part thereof as the Agent may require.  The Agent may order lien searches from time to time against the Debtor and the Collateral, and the Debtor shall
promptly reimburse the Agent for all reasonable costs and expenses incurred in connection with such lien searches; provided, however, that unless and until an Event of Default shall have occurred and be continuing, the Debtor shall not be required to pay for more than one set of such searches in any calendar year.  In the event for any reason the law of any jurisdiction other than New York becomes or is applicable to the Collateral or any part
thereof, or to any of the Secured Obligations, the Debtor agrees to execute and deliver all such agreements, assignments, instruments, and documents and to do all such other things as the Agent deems necessary or appropriate to preserve, protect, and enforce the security interest of the Agent under the law of such other jurisdiction.  The Debtor agrees to mark its books and records to reflect the lien and security interest of the Agent in the Collateral.

 

(f)On failure of the Debtor to perform any of the covenants and agreements herein contained, the Agent may, at its option, perform the same and in so doing may expend such sums as the Agent deems advisable in the performance thereof, including,
without limitation, the payment of any taxes, liens, and encumbrances, expenditures made in defending against any adverse claims, and all other expenditures which the Agent may be compelled to make by operation of law or which the Agent may make by agreement or otherwise for the protection of the security hereof.  All such sums and amounts so expended shall be repayable by the Debtor upon demand, shall constitute additional Secured Obligations secured hereunder, and shall bear interest from the date
said amounts are expended at the rate per annum (computed on the basis of a year of 360 days for the actual number of days elapsed) determined by adding 2.0% per annum to the ABR from time to time in effect, with any change in such rate per annum as so determined by reason of a change in such Base Rate to be effective on the date of such change in said Base Rate (such rate per annum as so determined being hereinafter referred to as the “Default
Rate”).  No such performance of any covenant or agreement by the Agent on behalf of the Debtor, and no such advancement or expenditure therefor, shall relieve the Debtor of any default under the terms of this Agreement or in any way obligate any Secured Creditor to take any further or future action with respect thereto.  The Agent, in making any payment hereby authorized, may do so according to any bill, statement or estimate procured from the appropriate public office or holder
of the claim to be discharged without inquiry into the accuracy of such bill, statement or estimate or into the validity of any tax assessment, sale, forfeiture, tax lien or title or claim.  The Agent, in performing any act hereunder, shall be the sole judge of whether the Debtor is required to perform the same under the terms of this Agreement.  The Agent is hereby authorized to charge any account of the Debtor maintained with any Secured Creditor for the amount of such sums and amounts so
expended. 

 

(g)The Debtor represents that on the date of this Agreement, none of the Collateral consists of margin stock (as such term is defined in Regulation U of the Board of Governors of the Federal Reserve System) except to the extent the Debtor
has delivered to the Agent a duly executed and completed Form U-1 with respect to such stock.  If at any time the Collateral or any part thereof consists of margin stock, the Debtor shall promptly so notify the Agent and deliver to the Agent a duly executed and completed Form U-1 and such other instruments and documents reasonably requested by the Agent in form and substance satisfactory to the Agent.

 

11.In acting under or by virtue of this Agreement, the Agent shall be entitled to all the rights, authority, privileges, and immunities provided in the Credit Agreement, all of which provisions of said Credit Agreement (including, without limitation,
Article VIII thereof) are incorporated by reference herein with the same force and effect as if set forth herein in their entirety.  The Agent hereby disclaims any representation or warranty to the Secured Creditors or any other holders of the Secured Obligations concerning the perfection of the liens and security interests granted hereunder or in the value of any of the Collateral.

 

12.Any Notice of Sole Control shall be effective on its Effective Date.  All other notices under this Agreement shall be effective when actually received.  Any notices or other communications which may be required under
this Agreement are to be sent to the parties at the following addresses or such other addresses as may be subsequently given to the other parties in writing: 

 

Agent:

 

JPMorgan Chase Bank, National Association

1 East Ohio Street, Mail Code IN1-0045 

Indianapolis, IN  46277 

Fax:(317) 767-8008 

Attn:John V. Schlechte, Senior Vice President 

 

the Debtor:

 

ITT Educational Services, Inc.

13000 N. Meridian Street 

Carmel, IN   46032 

Fax:(317) 706-9254 

Attn:Chief Financial Officer 

 

the Intermediary:

 

JPMorgan Chase Bank, National Association

1111 Polaris Parkway, Suite 2N

Columbus, OH  43240 

Attn:[IAA Administrator], OH1-0634 

 

the Intermediary shall send to both the Debtor and the Agent at the above addresses copies of all periodic and transaction statements concerning the Account. 

 

13.The Debtor acknowledges that this Agreement supplements any existing agreement(s) with the Intermediary and in no way is this Agreement intended to abridge any rights that the Intermediary might otherwise have with respect to the Debtor
under the terms of any such existing agreements with the Debtor, except as expressly provided herein or in the Control Agreement.  This Agreement shall not amend any contractual agreements between the Intermediary and the Debtor with respect to the Account or abridge any rights that the Intermediary may have under any such contractual agreements.  This Agreement may not be changed orally, but only by an agreement in writing and signed by the parties. 

 

14.This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the respective parties hereto and shall be governed by, and construed in accordance with, the laws of the State of New York. 

 

15.This Agreement shall not be considered to create a joint venture or partnership between the parties hereto.  Neither party to this Agreement may utilize the name of the other in any way without the other party’s written consent. 

 

16.If any provision of this Agreement shall be held to be invalid or unenforceable by any court or regulatory or self-regulatory agency or body, such invalidity or unenforceability shall attach only to such provision or condition.  The
validity of the remaining provisions and conditions shall not be affected thereby and this Agreement shall be carried out as if any such invalid or unenforceable provision or condition were not contained herein. 

 

17.This Agreement is between the parties and is not intended to confer any benefits on third parties, provided however that the Intermediary will be deemed to be a beneficiary of the
provisions related to the Intermediary contained in the Control Agreement. 

 

18.The Debtor has heretofore executed and delivered to JPMorgan the Prior Security Agreement to secure certain indebtedness described therein (the “previously secured indebtedness”)
owed to JPMorgan.  The Secured Obligations include, without limitation, the previously secured indebtedness.  The Debtor hereby agrees that, notwithstanding the execution and delivery hereof, the liens and security interests created and provided for by the Prior Security Agreement for the benefit and security of such previously secured indebtedness shall remain in full force and effect, it being specifically understood and agreed that the liens and security interests created and provided for
by this Agreement, to the extent the same secure the previously secured indebtedness, shall constitute and be a continuation of the liens and security interests, which exist under the Prior Security Agreement as security for the previously secured indebtedness.  Nothing contained in this Agreement or any financing statements executed in connection herewith shall affect or impair the validity or priority of the liens and security interests created and provided for by the Prior Security Agreement as to
the previously secured indebtedness.  However, to the extent that the Prior Security Agreement is inconsistent with any terms hereof, the Prior Security Agreement shall to such extent be deemed amended hereby and this Agreement shall govern and control over any such provisions of the Prior Security Agreement which are inconsistent with the provisions hereof.

 

19.This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which taken together shall constitute one and the same instrument. 

  

  

  

 

In Witness Whereof, the Debtor and the Agent have caused this Agreement to be executed by their respective authorized officers and delivered effective as of the date written above 

 

	
  
	
ITT Educational Services, inc. 

 

	
  
	
By:

	
  
	
Name:

	
  
	
Title:

 

State of ____________________ )

 

County of __________________ )

 

Before me, a Notary Public in and for said County and State, personally appeared __________________________ the __________________ of ITT Educational Services, Inc., and acknowledged the execution of the foregoing document as the authorized and voluntary act of said corporation. 

 

Witness my hand and Notarial Seal. 

 

	
  
	
Notary Public

 

	
  
	
Printed NameNotary Public

 

My County of Residence:  _________________

 

My Commission Expires: __________________

 

	
  
	
JPMorgan Chase Bank, National Association, as Agent

 

	
  
	
By:

	
  
	
Name:

	
  
	
Title:

[Signature Page to Security Agreement]

  

  

  

Exhibit A

[Date]

 

JPMorgan Chase Bank, National Association 

1111 Polaris Parkway, Suite 2N, Mail Code OH1-0634 Columbus, OH 43240 

Attn: Brian Gayer 

 

Re:Notice of Sole Control 

 

Ladies and Gentlemen: 

 

Pursuant to the Control Agreement, dated August 30, 2007 (a copy of the Control Agreement being attached hereto), we give you notice of our exclusive control over account number __________ and any property therein (the “Account”) held with JPMorgan Chase Bank,
National Association.  You are instructed not to accept any instructions, entitlement orders or directions with respect to the Account from any party other than the undersigned affiliate. 

 

You are instructed to deliver a copy of this notice to ITT Educational Services, Inc, 

 

	
  
	
JPMorgan Chase Bank, National Association 

 

	
  
	
By:

	
  
	
Name:

	
  
	
Title:

  

  

  

Exhibit E

 

Form of Guaranty

 

For value received and in consideration of advances made or to be made, or credit given or to be given, or other financial accommodation afforded or to be afforded to ITT Educational Services, Inc., a Delaware corporation, and its successors and assigns (the “Borrower”),
by the lenders from time to time party to that certain Second Amended and Restated Credit Agreement dated as of January 11, 2010 (as amended, supplemented, modified and/or restated, the “Credit Agreement”), among the Borrower, the Lenders from time to time party thereto (the “Lenders”), and JPMorgan Chase Bank, National Association, as Administrative Agent (in such capacity
the “Administrative Agent”), from time to time, the undersigned hereby guarantees the full and prompt payment to the Lenders at maturity and at all times thereafter of any and all indebtedness, obligations and liabilities of every kind and nature of the Borrower to the Lenders owing under and pursuant to the Credit Agreement and any of the other Loan Documents, howsoever evidenced, whether now existing or hereafter created or arising, whether
direct or indirect, absolute or contingent, or joint or several, and howsoever owned, held or acquired, whether direct loan or as collateral or otherwise (hereinafter all such indebtedness, obligations and liabilities being collectively referred to as the “Indebtedness”); and the undersigned further agrees to pay all reasonable expenses, legal and/or otherwise (including court costs and reasonable attorneys’ fees), paid or incurred by
the Administrative Agent and the Lenders in endeavoring to collect the Indebtedness, or any part thereof, and in protecting, defending or enforcing this guaranty in any litigation, bankruptcy or insolvency proceedings or otherwise.  Capitalized terms used but not defined herein shall have the same meaning herein as in the Credit Agreement.

 

The undersigned further acknowledges and agrees with the Administrative Agent and the Lenders that:

 

1.This guaranty is a continuing, absolute and unconditional guaranty, and shall remain in full force and effect until written notice of its discontinuance shall be actually received by the Administrative Agent, and also until any and all of
the Indebtedness created, existing or committed to before receipt of such notice shall be fully paid.  The dissolution of the undersigned shall not terminate this guaranty until notice of such dissolution shall have been actually received by the Administrative Agent, nor until all of the Indebtedness created or existing before receipt of such notice shall be fully paid.  The granting of credit from time to time by the Lenders to the Borrower in excess of the amount to which the right of recovery
under this guaranty is limited, if any, and without notice to the undersigned, is hereby also authorized and shall in no way affect or impair this guaranty.

 

2.In case of the dissolution, liquidation or insolvency (howsoever evidenced) of, or the institution of bankruptcy or receivership proceedings against the Borrower or the undersigned, all of the Indebtedness then existing shall, at the option
of the Administrative Agent, immediately become due or accrued and payable from the undersigned.  All dividends or other payments received from the Borrower or on account of the Indebtedness from whatsoever source, shall be taken and applied as payment in gross, and this guaranty shall apply to and secure any ultimate balance that shall remain owing to the Lenders.

 

3.The liability hereunder shall in no wise be affected or impaired by (and the Administrative Agent is hereby authorized to make from time to time, without notice to anyone), any sale, pledge, surrender, compromise, settlement, release, renewal,
extension, indulgence, alteration, substitution, exchange, change in, modification or other disposition of any of the Indebtedness, either express or implied, or of any contract or contracts evidencing any of the Indebtedness, or of any security or collateral therefor.  The liability hereunder shall in no wise be affected or impaired by any acceptance by the Administrative Agent or the Lenders of any security for or other guarantors upon any of the Indebtedness, or by any failure, neglect or omission
on the part of the Administrative Agent or the Lenders to realize upon or protect any of the Indebtedness, or any collateral or security therefor, or to exercise any lien upon or right of appropriation of any moneys, credits or property of the Borrower, possessed by the Administrative Agent or the Lenders, toward the liquidation of the Indebtedness, or by any application of payments or credits thereon.  The Administrative Agent shall have the exclusive right to determine how, when and what application
of payments and credits, if any, shall be made on the Indebtedness, or any part thereof.  In order to hold the undersigned liable hereunder, there shall be no obligation on the part of the Administrative Agent or the Lenders, at any time, to resort for payment to the Borrower or to any other guaranty, or to any other persons or corporations, their properties or estates, or resort to any collateral, security, property, liens or other rights or remedies whatsoever, and the Administrative Agent and the
Lenders shall have the right to enforce this guaranty irrespective of whether or not other proceedings or steps seeking resort to or realization upon or from any of the foregoing are pending.

 

4.All diligence in collection or protection, and all presentment, demand, protest and/or notice, as to any and everyone, whether or not the Borrower or the undersigned or others, of dishonor and of default and of non-payment and of the creation
and existence of any and all of the Indebtedness, and of any security and collateral therefor, and of the acceptance of this guaranty, and of any and all extensions of credit and indulgence hereunder, are waived.  No act of commission or omission of any kind, or at any time, upon the part of the Administrative Agent or the Lenders in respect to any matter whatsoever, shall in any way affect or impair this guaranty, except to the extent such act is determined by a court of competent jurisdiction by final
and non-appealable judgment to have resulted from the gross negligence or willful misconduct of such party.

 

5.The undersigned will not exercise or enforce any right of exoneration, contribution, reimbursement, recourse or subrogation available to the undersigned against any person liable for payment of the Indebtedness, or as to any security therefor,
unless and until the full amount owing to the Lenders on the Indebtedness has been paid and the payment by the undersigned of any amount pursuant to this guaranty shall not in any wise entitle the undersigned to any right, title or interest (whether by way of subrogation or otherwise) in and to any of the Indebtedness or any proceeds thereof or any security therefor unless and until the full amount owing to the Lenders on the Indebtedness has been paid.

 

6.Subject to the terms and provisions of the Credit Agreement, each Lender may sell, assign or transfer all of the Indebtedness, or any part thereof, or grant participations therein, and in that event each assignee, transferee, or holder of
or participant in all or any part of the Indebtedness, shall have the right to enforce this guaranty, by suit or otherwise, for the benefit of such assignee, transferee, holder or participant, as fully as if such assignee, transferee, holder or participant were herein by name specifically given such rights, powers and benefits; but such Lender shall have an unimpaired right to enforce this guaranty for the benefit of such Lender or any such participant, as to so much of the Indebtedness that it has not sold,
assigned or transferred.

 

7.The undersigned waives any and all defenses, claims and discharges of the Borrower, or any other obligor, pertaining to the Indebtedness, except the defense of discharge by payment in full.  Without limiting the generality of the
foregoing, the undersigned will not assert, plead or enforce against the Administrative Agent or the Lenders any defense of waiver, release, discharge in bankruptcy, statute of limitations, res judicata, statute of frauds, anti-deficiency statute, fraud, incapacity, minority, usury, illegality or unenforceability which may be available to the Borrower or any other person liable in respect of any of the Indebtedness, or any set-off available against the Administrative Agent or the Lenders to the Borrower or any
such other person, whether or not on account of a related transaction.  The undersigned agrees that the undersigned shall be and remain liable for any deficiency remaining after foreclosure of any mortgage or security interest securing the Indebtedness, whether or not the liability of the Borrower or any other obligor for such deficiency is discharged pursuant to statute or judicial decision.

 

8.If any payment applied by the Lenders to the Indebtedness is thereafter set aside, recovered, rescinded or required to be returned for any reason (including, without limitation, the bankruptcy, insolvency or reorganization of the Borrower
or any other obligor), the Indebtedness to which such payment was applied shall for the purposes of this guaranty be deemed to have continued in existence, notwithstanding such application, and this guaranty shall be enforceable as to such of the Indebtedness as fully as if such application had never been made.

 

9.Any invalidity or unenforceability of any provision or application of this guaranty shall not affect other lawful provisions and applications hereof, and to this end the provisions of this guaranty are declared to be severable.  This
guaranty shall be construed according to the law of the State of New York, and may not be waived, amended, released or otherwise changed except by a writing signed by the Administrative Agent.  The liability of the undersigned under this guaranty is in addition to and shall be cumulative with all other liabilities of the undersigned to the Administrative Agent and the Lenders, if any, without any limitation as to amount, unless the instrument or agreement evidencing or creating such other liability
specifically provides to the contrary.

 

10.This guaranty and every part thereof shall be effective upon delivery to the Administrative Agent, without further act, condition or acceptance by the Administrative Agent or the Lenders, shall be binding upon the undersigned, and upon the
heirs, legal representatives, successors and assigns of the undersigned, and shall inure to the benefit of the Administrative Agent and the Lenders, their respective successors, legal representatives and assigns.  The undersigned waives notice of the Administrative Agent’s and the Lenders’ acceptance hereof.

 

11.The undersigned hereby represents and warrants to, and covenants and agrees with, the Administrative Agent and the Lenders that:  (a) it is a duly organized and validly existing corporation in good standing under the laws
of the jurisdiction of its formation and has the corporate power and authority to own its property and assets and to transact the business in which it is engaged and presently proposes to engage; (b) it has the corporate power and authority to execute, deliver and carry out the terms and provisions of this guaranty and has taken all necessary corporate action to authorize the execution, delivery and performance of this guaranty; (c) it has duly executed and delivered this guaranty and this guaranty
constitutes the legal, valid and binding agreement of the undersigned enforceable in accordance with its terms, except to the extent that the enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws generally affecting creditors’ rights and by equitable principles (regardless of whether enforcement is sought in equity or at law); (d) neither the execution, delivery and performance by the undersigned of this guaranty nor compliance
with the terms and provisions thereof (i) will contravene any provision of any law, statute, rule, regulation, order, writ, injunction or decree of any court or governmental instrumentality applicable to the undersigned or its properties and assets, (ii) will conflict with or result in any breach of, any of the terms, covenants, conditions or provisions of, or constitute a default under, or result in the creation or imposition of (or the obligation to create or impose) any lien upon any of the property
or assets of the undersigned pursuant to the terms of any promissory note, bond, debenture, indenture, mortgage, deed of trust, credit or loan agreement, or any other material agreement or other instrument, to which the undersigned is a party or by which it or any of its property or assets are bound or to which it may be subject other than liens granted in favor of the Administrative Agent, or (iii) will violate any provision of the certificate or articles of incorporation or by-laws of the undersigned;
(e) no order, consent, approval, license, authorization, or validation of, or filing, recording or registration with, or exemption by, any governmental or public body or authority, or any subdivision thereof, is required to authorize or is required as a condition to (i) the execution, delivery and performance by the undersigned of this guaranty, or (ii) the legality, validity, binding effect or enforceability of this guaranty; and (f) there are no actions, suits or proceedings pending or,
to, the knowledge of the undersigned, threatened with respect to the undersigned which question the validity or enforceability of this guaranty, or of any action to be taken by the undersigned pursuant to this guaranty.

 

12.The undersigned hereby submits to the nonexclusive jurisdiction of the United States District Court for the Southern District of New York and of any New York State court sitting in the City of New York for purposes of all legal proceedings
arising out of or relating to this guaranty or the transactions contemplated hereby.  The undersigned irrevocably waives, to the fullest extent permitted by law, any objection which it may now or hereafter have to the laying of the venue of any such proceeding brought in such a court and any claim that any such proceeding brought in such a court has been brought in an inconvenient forum.  The undersigned hereby irrevocably waives any
and all right to trial by jury in any legal proceeding arising out of or relating to this guaranty or the transactions contemplated hereby.

 

[Signature Page to Follow]

Credit Agreement (format)

1924042

  

  

  

 

Signed and delivered by the undersigned this ___ day of __________, 2010.  

 

	
  
	
______________________________________

 

	
  
	
By

	
  
	
Name

	
  
	
Title

  

  

  

Exhibit F-1

 

ITT Educational Services, Inc.

 

Quarterly Compliance Certificate

 

	
  To:
	
JPMorgan Chase Bank, National Association, as Administrative Agent under the Credit Agreement described below

 

This Compliance Certificate is furnished to the Administrative Agent and the Lenders pursuant to that certain Second Amended and Restated Credit Agreement dated as of January 11, 2010, among us (as extended, renewed, amended or restated from time to time, the “Credit Agreement”).  Unless
otherwise defined herein, the terms used in this Compliance Certificate have the meanings ascribed thereto in the Credit Agreement.

 

The Undersigned hereby certifies that:

 

1.I am the duly elected ____________ of ITT Education Services, Inc.;

 

2.I have reviewed the terms of the Credit Agreement and I have made, or have caused to be made under my supervision, a detailed review of the transactions and conditions of the Borrower and its Subsidiaries during the accounting period covered
by the accounting period to which this Compliance Certificate relates;

 

3.The examinations described in paragraph 2 did not disclose, and I have no knowledge of, the existence of any condition or the occurrence of any event which constitutes a Default or Event of Default during or at the end of the accounting
period to which this Compliance Certificate relates or as of the date of this Compliance Certificate, except as set forth below;

 

4.If applicable, the financial statements required by Section 5.01(b) of the Credit Agreement and being furnished to you concurrently with this Compliance Certificate present fairly in all material respects the financial condition and
results of operations of the Borrower and its consolidated Subsidiaries on a consolidated basis in accordance with GAAP, subject to normal year-end audit adjustments and the absence of footnotes; and

 

5.The Schedule I hereto sets forth financial data and computations evidencing the Borrower’s compliance with Section 5.11 of the Credit Agreement, all of which data and computations are, to the best of my knowledge, true, complete
and correct and have been made in accordance with the relevant provisions of the Credit Agreement.

 

Described below are the exceptions, if any, to paragraph 3 by listing, in detail, the nature of the condition or event, the period during which it has existed and the action which the Borrower has taken, is taking, or proposes to take with respect to each such condition or event:

 

 

The foregoing certifications, together with the computations set forth in Schedule I hereto and, if applicable, the financial statements delivered with this Certificate in support hereof, are made and delivered this ______ day of __________________ 20___.

 

ITT Educational Services, Inc.

 

	
  
	
By

	
  
	
Name

	
  
	
Title

  

  

  

Schedule I

 

Compliance Certificate

 

	  	
Period Ended 

	
Leverage Ratio (calculated quarterly) 
	  
	
Total Indebtedness
	  
	
EBITDA (four consecutive quarters)
	  
	
Leverage Ratio
	  
	
Maximum = 1.0 to 1.0
	  
	  	
Period Ended 

	
Unrestricted Cash and Investments to Indebtedness Ratio (calculated monthly)
	  
	
Total Indebtedness
	  
	
Cash & Investments to Indebtedness Ratio
	  
	
Minimum = 1.10 to 1.0
	  
	  	
Period Ended 

	
DOE Ratio (calculated annually)
	  
	
DOE Ratio (as defined)
	  
	
Minimum = 1.50 to 1.0
	  

 

  

  

  

Exhibit F-2

 

ITT Educational Services, Inc.

 

Monthly Compliance Certificate

 

	
  
	
To:JPMorgan Chase Bank, National Association, as Administrative Agent under the Credit Agreement described below

 

This Compliance Certificate is furnished to the Administrative Agent and the Lenders pursuant to that certain Second Amended and Restated Credit Agreement dated as of January 11, 2010, among us (as extended, renewed, amended or restated from time to time, the “Credit Agreement”).  Unless
otherwise defined herein, the terms used in this Compliance Certificate have the meanings ascribed thereto in the Credit Agreement.

 

The Undersigned hereby certifies that:

 

1.I am the duly elected ____________ of ITT Education Services, Inc.;

 

2.I have reviewed the terms of the Credit Agreement and I have made, or have caused to be made under my supervision, a detailed review of the transactions and conditions of the Borrower and its Subsidiaries during the accounting period covered
by the accounting period to which this Compliance Certificate relates;

 

3.The examinations described in paragraph 2 did not disclose, and I have no knowledge of, the existence of any condition or the occurrence of any event which constitutes a Default or Event of Default during or at the end of the accounting
period to which this Compliance Certificate relates or as of the date of this Compliance Certificate, except as set forth below;

 

4.The Schedule I hereto sets forth financial data and computations evidencing the Borrower’s compliance with Section 5.11(b) of the Credit Agreement, all of which data and computations are, to the best of my knowledge, true,
complete and correct and have been made in accordance with the relevant provisions of the Credit Agreement.

 

Described below are the exceptions, if any, to paragraph 3 by listing, in detail, the nature of the condition or event, the period during which it has existed and the action which the Borrower has taken, is taking, or proposes to take with respect to each such condition or event:

 

 

The foregoing certifications together with the computations set forth in Schedule I hereto are made and delivered this ______ day of __________________ 20___.

 

ITT Educational Services, Inc.

 

	
  
	
By

	
  
	
Name

	
  
	
Title

 

  

  

  

Schedule I

 

Compliance Certificate

 

	  	
Period Ended 

	
Unrestricted Cash and Investments to Indebtedness Ratio (calculated monthly)
	  
	
Total Indebtedness
	  
	
Cash & Investments to Indebtedness Ratio
	  
	
Minimum = 1.10 to 1.0
	  

  

  

  

Schedule 2.01

 

Aggregate Commitments

 

	
Lender
	 	
Amount
	 
	
JPMorgan Chase Bank, National Association
	 	$	90,000,000	 
	
Bank of America, N.A.
	 	$	60,000,000	 
	
Total Commitments
	 	$	150,000,000	 

 

Line of Credit A Commitments

 

	
Lender
	 	
Amount
	 
	
JPMorgan Chase Bank, National Association
	 	$	60,000,000	 
	
Bank of America, N.A.
	 	$	40,000,000	 
	
Total Line of Credit A Commitments
	 	$	100,000,000	 

 

Line of Credit B Commitments

 

	
Lender
	 	
Amount
	 
	
JPMorgan Chase Bank, National Association
	 	$	30,000,000	 
	
Bank of America, N.A.
	 	$	20,000,000	 
	
Total Line of Credit B Commitments
	 	$	50,000,000	 

  

  

  

Schedule 3.06

 

Disclosed Matters

 

None

  

  

  

Schedule 3.14

 

Material Subsidiaries

 

ESI Service Corp.

 

Daniel Webster College, Inc.

  

  

  

Schedule 6.02

 

Existing Liens

 

None

  

  

  

Schedule 6.08

 

Existing Restrictions

 

None

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}]]